Singapore-based property technology company, PropertyGuru Group Limited (NYSE: PGRU), has announced its financial results for the first quarter ended March 31, 2023.
The company reported a revenue of S$33 million, representing a notable 16 per cent increase compared to the same period last year. Despite a net loss of S$10 million, PropertyGuru achieved a positive Adjusted EBITDA of S$0.2 million. These figures demonstrate the company’s successful start to 2023.
Hari V. Krishnan, the CEO, and Managing Director of PropertyGuru, expressed satisfaction with the first quarter results. He highlighted the positive performance in Singapore and Malaysia, which helped counterbalance the challenging market conditions in Vietnam.
In Singapore, the company’s solutions capitalized on the robust sales market and rising rental rates, resulting in effective monetization. Malaysia benefited from newly launched products and the execution of PropertyGuru’s dual brand strategy.
However, Vietnam faced difficulties due to governmental monetary policy measures that significantly impacted real estate transaction activity. Krishnan expressed confidence that these pressures would subside by the latter part of 2023 and into 2024, and the company is proactively managing its operations to maximize performance.
Krishnan emphasized PropertyGuru’s ability to deliver essential and differentiated property solutions to agent and enterprise customers in Southeast Asia’s property markets.
Looking ahead, the company aims to focus on helping consumers find, finance, and own their homes in the upcoming quarters.
PropertyGuru remains optimistic about the fundamental opportunities available in the markets it operates in.
Joe Dische, the CFO of PropertyGuru, expressed satisfaction with the 16 per cent year-over-year revenue growth in the first quarter of 2023.
Despite anticipated challenges in Vietnam due to governmental actions to cool real estate market activity, the company started the year strong.
Dische emphasized the company’s close monitoring of costs, particularly in discretionary spending, amid macroeconomic uncertainty.
PropertyGuru’s Adjusted EBITDA for the quarter remained in line with the first quarter of 2022, despite the inclusion of costs associated with being a listed entity.
Dische reaffirmed the company’s confidence in the strength of its offerings and the opportunities in Southeast Asian property markets.
As a result, PropertyGuru is maintaining its 2023 full-year financial outlook for both revenue and Adjusted EBITDA.
Additionally, the company is encouraged by the strategic merger and acquisition opportunities available, as it explores adjacent opportunities to deploy its available capital.
Key financial highlights for the first quarter of 2023 include a 16 percent year-over-year increase in total revenues to S$33 million.
Marketplaces revenues grew by 15 per cent to S$31 million, driven by continued strength in Singapore and Malaysia, which offset the challenges faced in the Vietnam market due to governmental credit restrictions.
Revenue by segments revealed that Singapore Marketplaces revenue increased by 26 per cent to S$19 million, driven by growth in the number of agents and Average Revenue Per Agent (ARPA).
Malaysia Marketplaces revenue also grew by 26 per cent to S$7 million, leveraging the strength of PropertyGuru’s two leading brands, iProperty and PropertyGuru. However, Vietnam Marketplaces revenue decreased by 34 per cent to S$3 million due to government actions tightening credit and impacting the overall number of listings in the market.
The number of listings declined by 32 per cent to 1.1 million in the first quarter compared to the previous year, while the average revenue per listing (ARPL) remained in line with the first quarter of 2022 at S$2.95.
At the end of the first quarter, PropertyGuru had cash and cash equivalents of S$294 million, reflecting a sound financial position for the company.
Overall, PropertyGuru’s strong performance in the first quarter of 2023 and its positive outlook for the Southeast Asian property markets demonstrate its commitment to delivering innovative property solutions and capitalizing on opportunities in the region.
