PropertyGuru Group Limited, a Singapore-based property technology company, has on Tuesday announced its revenue rose 16 percent year on year to SGD 33 million ($24.5 million) in the first quarter of 2023.
The group said in a statement that it registered a net loss of SGD 10 million ($7.42 million) in the first quarter and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of SGD 200,0000 ($148,490).
This compares to a net loss of SGD 120 million ($89.09 million) and a adjusted EBITDA of SGD 500,000 ($371,226) in the first quarter of 2022.
“Our first quarter results are a successful start to 2023. As expected, performance in Singapore and Malaysia helped offset the challenging market conditions in Vietnam,” said Hari V. Krishnan, Chief Executive Officer and Managing Director of PropertyGuru.
In Singapore, he said the firm’s solutions performed well, effectively monetizing the strong sales market as well as taking advantage of rising rental rates.
He also said Malaysia continues to benefit from newly launched products and further execution of its dual brand strategy.
However, he said that Vietnam remains the primary challenge in the near-term, as governmental monetary policy has significantly impacted real estate transaction activity.
Having said that, he believes that these pressures will begin to abate in the latter part of 2023 and into 2024.
He said the firm continues to proactively manage its operations to maximize performance while laying the groundwork to take advantage when the Vietnam real estate market recovers.
“In all of our markets, we are often reminded that the value of PropertyGuru solutions for our customers can be more visible when the property cycle transitions and macro-economic pressures intensify,
“As we move into the middle of 2023, we remain positive in both our ability to deliver essential, differentiated property solutions to our agent and enterprise customers as well as the long-term health and opportunity that is characteristic of our Southeast Asian property markets,” he said.
In the following quarters, he said the firm will be focused on helping consumers find, finance, and own their homes.
“We continue to be excited about the fundamental opportunities available in the markets we operate in,” he added.
PropertyGuru Chief Financial Offier Joe Dische also said the firm is pleased with the 16 percent year over year revenue growth in the first quarter of 2023.
“The year has started off strongly despite the anticipated challenges in Vietnam due to monetary policy actions by the government in a targeted effort to cool real estate market activity,
“Given macro uncertainty, we continue to keep a close eye on costs, especially with respect to discretionary spending,” he said.
According to him, the firm’s adjusted EBITDA this quarter was in-line with the first quarter of 2022 despite the inclusion of a full quarter of costs associated with being a listed entity.
“We remain confident in the underlying strength of our offerings and the opportunities in the Southeast Asian property markets,
“As a result, we are reaffirming our 2023 full year financial outlook for both revenue and Adjusted EBITDA,” he said.
Lastly, he said the firm is encouraged by the types of strategic merger and acquisition (M&A) opportunities they are seeing in the marketplace as they continue to explore and evaluate adjacent opportunities to deploy available capital.
According to the statement, PropertyGuru marketplaces revenues increased by 15 percent year over year to SGD 31 million ($23.02 million) in the first quarter, as continued strength in Singapore and Malaysia offset challenges in the Vietnam market due to governmental restrictions on credit.
The company reaffirms its full year 2023 outlook of revenues between SGD 160 million ($118.79 million) and SGD 170 million ($126.22 million) and adjusted EBITDA between SGD 11 million ($8.17 million) and SGD 15 million ($11.14 million).
In the short term, the company said it may be impacted by several factors outside of its control.
These factors include actions by the government of Vietnam to rein in the availability of consumer credit, residual political uncertainty in Malaysia, property taxation and stamp duty increases in Singapore as a mechanism for prioritizing affordable home ownership for Singaporeans, a lack of clarity in global fiscal policy stemming from rising interest rates, greater inflationary pressures, and global supply chain issues.
Longer-term, the company remains bullish on its growth trajectory, prospects for improving profitability, and the fundamental opportunity that exists in our core markets.
PropertyGuru is Southeast Asia’s leading PropTech company and was launched in Singapore in 2007.
The firm connects over 37 million property seekers with almost 60,000 agents monthly to find their dream home.
The firm empowers property seekers with more than 2.9 million real estate listings, in-depth insights, and solutions that enable them to make confident property decisions across Singapore, Malaysia, Thailand, Indonesia, and Vietnam.