With the business potentially at an important milestone, we thought we’d take a closer look at Airtasker Limited’s (ASX:ART) future prospects. Airtasker Limited engages in the provision of technology-enabled online marketplaces for local services in Australia. The AU$113m market-cap company announced a latest loss of AU$13m on 30 June 2023 for its most recent financial year result. The most pressing concern for investors is Airtasker’s path to profitability – when will it breakeven? We’ve put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
View our latest analysis for Airtasker
Consensus from 2 of the Australian Interactive Media and Services analysts is that Airtasker is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of AU$2.3m in 2026. So, the company is predicted to breakeven approximately 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 105% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We’re not going to go through company-specific developments for Airtasker given that this is a high-level summary, but, keep in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that Airtasker has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Airtasker which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Airtasker, take a look at Airtasker’s company page on Simply Wall St. We’ve also put together a list of key factors you should look at:
- Valuation: What is Airtasker worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Airtasker is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Airtasker’s board and the CEO’s background.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
Valuation is complex, but we’re helping make it simple.
Find out whether Airtasker is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.