PropertyGuru reports strong third quarter 2022 results

• Revenue in third quarter 2022 increased by 47% year-on-year
• Continues to lead in Singapore, Vietnam, Malaysia, and Thailand

PropertyGuru Group Ltd (PropertyGuru) announced its financial results for the quarter ended Sept 30, 2022. 

In a statement, the proptech firm said revenue of US$25 million (RM115 million) in the third quarter 2022 increased by 47% year over year. 

It said net loss was US$5.3 million (RM24 million) in the quarter and adjusted EBITDA was a positive US$4 (RM18.3 million). 

This compares to a net loss of US$6.9 million (RM32 million) and adjusted EBITDA loss of US$1 million (RM4.5 million) in the prior year period, it added.

[RM1 = US$0.221]

Hari V. Krishnan (pic), chief executive officer and managing director, said the firm’s third quarter results illustrate that PropertyGuru has been able to produce strong business performance even as some of its core markets have begun to face headwinds from the challenging economic conditions being experienced around the globe.

“In the third quarter, we deployed more products into our core markets. Importantly, in October we welcomed our first post-listing acquisition, Singapore-based home services technology company Sendhelper, into the PropertyGuru family.

“This continued commitment to our mission and expansion of our value proposition will allow us to create even more value for our customers as they adapt to the changing environment,” said Krishnan.

He added that PropertyGuru recognises its ongoing investment in innovation will help our customers successfully navigate the near-term uncertainty, knowing that good companies and good products show their true value when times are challenging.

Joe Dische, chief financial officer, said in the third quarter, PropertyGuru delivered another strong quarter of results, with revenues continuing its growth trajectory, up 47% year-over-year, while expense-related diligence helped deliver improved adjusted EBITDA.  

“We remain encouraged by our market penetration as we enter the final quarter of 2022, although we understand that near-term market headwinds resulting from global inflationary pressures and subsequent governmental counteractions will need to be closely monitored.

“While we are confident in the long-term fundamentals of our business and the growth potential that it offers, we understand that the current environment requires us to be especially diligent in the way we currently operate our business on a day-to-day basis,” said Dische.

Financial highlights for third Quarter 2022 include: 

• Total revenue of US$25 million increased 47% year over year, with consistent growth in all markets and segments;
• Marketplaces revenues increased by 48% year over year to US$24 million, as prior year investments continue to deliver value in the face of rising macro headwinds;
  • Singapore Marketplaces revenue increased 28% to US$13 million. Quarterly Average Revenue Per Agent of US$753 rose 24% year over year through greater yield and continued product penetration. We had a total of 15,351 agents with a renewal rate of 87% in the quarter, reflecting a strong local property market.
  • Malaysia Marketplaces revenue increased 49% to US$4.7 million from US$3 million in the prior year period, benefiting from the mid-quarter acquisition of the iProperty business in August 2021.
  • Vietnam Marketplaces revenue increased by 161% to US$4.4 million from US$1.7 million in the prior year period, as the local economy expanded following Covid-related lockdowns. The number of listings was 2.04 million in the quarter, up 165% from the prior year quarter, and the average revenue per listing was US$2, up 2.5% from the prior year quarter.
• In October 2022, the company acquired Sendhelper, a Singapore home services technology company. The transaction not only represents PropertyGuru’s entry into the home services industry, but also another step in becoming the single source of property and financial information for Southeast Asian property seekers, sellers, owners, developers, and agents; and
• At quarter-end, cash and cash equivalents was US$245.5 million.

As of Sept 30, 2022, PropertyGuru said it continued its engagement market share leadership in Singapore, Vietnam, Malaysia, and Thailand.

It added that the company anticipates full year 2022 revenues of between US$97 million and US$100 million as a result of greater fiscal policy uncertainty stemming from rising global inflationary pressures, near-term actions by the Vietnamese government to limit access to credit, and the recent Malaysian election. 

The Singapore property market remains strong, it said. 

However, the company also expects adjusted EBITDA to be between US$5.7 million and US$8.6 million, as management operates to balance the current environment with longer-term business model goals.