ASX-listed jobs market Airtasker is the most recent tech firm to swing the scythe via its workforce, reducing 45 jobs – round 20% of its general headcount – as a part of a drive to develop into cashflow constructive within the 2024 monetary yr.
The redundancies are primarily in non-revenue producing features the corporate (ASX: ART) stated, releasing its Q3 March quarter outcomes on the identical time.
And 12 months after the enterprise paid $9.8 million for companies platform OneFlare Airtasker is shedding the “non-core” elements of the OneFlare enterprise.
Airtasker count on to incur restructuring prices of as much as $1 million in FY23 from the cuts. Shedding the facet ventures will see FY24 income fall by as much as $1m however the firm additionally expects it to have a constructive influence on working bills and working cashflow
Founder and CEO Tim Fung stated they’ll give attention to environment friendly world scaling of its core marketplaces beneath each manufacturers.
“While Airtasker has delivered robust YTD March 2023 income progress of 49% we imagine that within the present macroeconomic surroundings it’s the proper time to give attention to larger effectivity and return to constructive working cashflow,” he stated.
“We imagine this program of price discount will allow Airtasker to return to constructive working cashflow for FY24 and drive environment friendly progress to sustainably obtain our mission – to empower individuals to understand the complete worth of their abilities – on a world scale.”
The corporate noticed income rise by 34.1% on 12 months in the past in Q3 to $11.5 million, however most of that achieve, 28.8% got here from the inclusion of Oneflare. Excluding the Oneflare market contribution, 3Q23 income elevated 5.3% to $9 million. Airtasker’s Australian market achieved a web EBITDA of $1.5 million, after masking mounted world head workplace working prices, via enhancements within the effectivity of selling expenditure.
Oneflare market income continues to be forward of expectations from when the acquisition was introduced final Might. Web money utilized in working actions for the quarter was $1.2m, a lower of 52.4% quarter-on-quarter, pushed primarily by elevated advertising expenditure in new marketplaces within the quarter.
It stated that whereas the Australian marketplaces are on the “scaling” stage, within the UK, their marketplaces are within the “one to 100” stage and the US, at “zero to 1”.
Airtasker has $20.6m in money on its steadiness sheet and no debt on the finish of 3Q23.