Southeast Asian proptech firm PropertyGuru, which had reported a net profit in Q3 and Q4 2023, returned back to the red in the first quarter of 2024. However, it reduced its net losses year-on-year and posted higher revenues in the March quarter.
According to US-listed PropertyGuru’s latest filings, the firm cut its net losses by 40% YoY to S$6 million ($4.46 million) in Q1 2024 compared with S$10 million the previous year. Its adjusted EBITDA also improved to S$4 million in Q1 from S$0.2 million a year ago, while increasing its adjusted EBITDA margins by 12% compared to 0.7% in Q1 2023.
The firm had reported a net profit of S$1.1 million ($820,000) for the quarter ended December 31, 2023, and a net profit of S$300,000 in the September quarter.
PropertyGuru’s overall group revenues improved by 12% to S$36.5 million in Q1, with substantial increases (25%) coming from the Singapore market.
“PropertyGuru delivered a solid start to 2024 with double-digit revenue growth and flat costs year over year leading to double-digit adjusted EBITDA margin, while navigating a phased recovery in Vietnam and Malaysia as well as typical seasonality in Southeast Asia during the first quarter, which includes the Lunar New Year holiday,” said Joe Dische, Chief Financial Officer, PropertyGuru.
“We remain cautiously optimistic for the year ahead. The Singapore business continues to perform, and we are seeing
positive signals coming from Vietnam and Malaysia. While awaiting further improvement in secular trends, we are laser-focused on managing costs and improving profitability,” added Dische in the press release.
ProeprtyGuru added that the firm will continue to be focused on selective hiring and focused investment for the rest of 2024. It intends to continue investing in automation, while leveraging existing technologies and generative AI to manage its cost base and deliver customer experiences.
Singapore remains PropertyGuru’s strongest market, with revenue increasing 25% year-on-year to S$24 million in Q1 2024, led by a larger number of agents and average revenue per agent (ARPA). Quarterly ARPA grew 22% to S$1,368 while the number of agents rose marginally to 16,487.
Malaysia and Vietnam revenues were flat at S$7 million and S$3 million respectively. The firm’s fintech and data services revenue was down 3% to S$1 million year-on-year. PropertyGuru held S$300 million in cash and cash equivalents at the end of Q1 2024.
PropertyGuru continues to keep a FY2024 revenue outlook of S$165-180 million and adjusted EBITDA of S$22-26 million.
“Across Southeast Asia, we have seen governments introduce robust policies and budgets to accelerate growth, resulting in uplifted property sentiment. In the first quarter of 2024, we delivered double-digit revenue growth, with the Singapore business showing particular strength,” said Hari V. Krishnan, Chief Executive Officer and Managing Director of PropertyGuru.
“In Vietnam, we are seeing a gradual improvement in the property market towards the end of the quarter, with listings
on our platform hitting a 12-month high in March. Despite near-term challenges, we see a positive outlook for the
Malaysian market, with our latest consumer sentiment survey indicating that 1 in 3 Malaysians intend to buy a
property in the next two years,” added Krishnan.
PropertyGuru added several risks which may impact its operations in the near term, such as further delays in the recovery of Vietnam’s property market due to consumer sentiment and access to credit; weaker-than-expected economic conditions in Malaysia; and additional fiscal policy measures that the Singapore government may implement.
The NYSE-listed firm however remains bullish on its growth trajectory in the long term, with strong prospects for improving profitability and a fundamental opportunity that exists across its core markets in Southeast Asia.
