Singapore-based PropTech company PropertyGuru has reported net profit of SGD 1 million ($740,000) in the fourth quarter ended December 31, 2023 amid higher revenue, as compared to a net loss of SGD 5 million ($3.72m) a year ago.

The firm said in a statement on last Friday that the firm’s revenue for the quarter increased by 4 percent year on year to SGD 42 million ($31.25 million).

The firm’s marketplaces revenue increased to SGD 40 million ($29.76 million) (+4 percent) in the fourth quarter as compared to the previous year and increased to SGD 144 million ($107.14 million) (+10 percent) year over year as continued strength in Singapore helped to offset ongoing challenges in Vietnam.

The firm’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter also improved to SGD 9 million ($6.7 million), from SGD 500,000 ($372,029) a year ago.

As for full year, the firm’s total revenue grew 11 percent year on year to SGD 150 million ($111.61 million).

Its full year adjusted EBITDA of SGD 19 million ($14.14 million) in 2023, up from SGD 3 million ($2.23 million) in 2022.

The company anticipates full year 2024 revenues of between SGD 165 million ($123 million) and SGD 180 million ($134 million) and adjusted EBITDA of between SGD 22 million ($16.37 million) and SGD 26 million ($19.35 million).

According to the firm, the following near-term factors may impact the company’s operations in 2024: 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 Singaporean government may implement.

Longer-term, the company remains bullish on its growth trajectory, prospects for improving profitability, and the fundamental opportunity that exists in our core markets.

“Our 2023 results demonstrate our ability to navigate challenging macro-economic conditions and our commitment to profitability,

“We delivered double-digit revenue growth and a double-digit adjusted EBITDA margin for the full year. This is a clear testament to our ability to create value for our customers and help property-seekers achieve their home-ownership goals,” said Hari V. Krishnan, Chief Executive Officer and Managing Director.

Despite less than favorable market conditions in Vietnam and Malaysia, he said the firm was able to achieve these results by being laser-focused on optimizing costs, adopting internal process automation, improving code quality and productivity,

On the technology front, he said the firm continues to invest in the transformational use of Generative AI and automation to place them at the forefront of property technology and set us up for consistent improvement in productivity for years to come.

He said the firm continues to make proactive changes to build a sustainable, future-proofed business.

Following the firm’s principle to make focused investments in its identified priorities, he said the firm has undertaken a strategic step towards re-architecting its organization.

“This will ensure we have set our investment levels commensurate to the opportunity presented, with the right efficiencies to deliver scalable profitable growth for years to come,” he said.

“We acknowledge that this change is not easy on everyone and extend our heartfelt gratitude to the impacted Gurus for their contributions to the group and wish them the very best for the next chapter in their careers,

“Going forward, while we anticipate ongoing macro challenges, our blueprint for success remains clear – innovate and advance through talent and technology,” he added.

In 2023, he said the firm added key executives to its leadership teams, and at the start of 2024, welcomed Ray Ferguson as PropertyGuru’s new Board Chair.

“Ray brings a wealth of experience from a long and distinguished career of business building, corporate leadership, and market navigation,

“We remain confident about the long-term prospects for economic growth and stability in Southeast Asia and our vision where we power communities to live, work, and thrive in tomorrow’s cities,” he said.

Joe Dische, Chief Financial Officer of Property Guru, said the firm delivered 11 percent revenue growth and a 13 percent adjusted EBITDA margin despite significant macro challenges in two core markets, Vietnam and Malaysia.

“As we enter 2024 and get closer to positive inflection points in Vietnam and Malaysia, we are encouraged by how successful our internal cost-control, efficiency, and automation efforts were in 2023,” he said.

He said they spent the year balancing product innovation and investment with careful cost management and reaped the benefit of these activities throughout the year, particularly in the fourth quarter when the firm’s adjusted EBITDA margin jumped to 22 percent from 1 percent in the prior year quarter.

“Net income in the fourth quarter of 2023 was SGD 1 million ($740,000), a distinct improvement over a loss of SGD 5 million ($3.72m) in the fourth quarter of 2022, and the second sequential quarter in a row of positive net income,

“For the full year 2023, all our marketplaces were adjusted EBITDA positive. There was significant adjusted EBITDA margin growth in Singapore, Malaysia, and other Asia. Notably, corporate expenses as a percentage of overall revenue decreased from 39 percent in 2022 to 37 percent in 2023,” he said.

Looking to 2024, he said the firm will continue to focus on expanding internal operating leverage as they look to improve profitability.

“We are introducing a full year 2024 revenue outlook of SGD 165 million ($123 million) to SGD 180 million ($134 million) and a full year adjusted EBITDA outlook of SGD 22 million ($16.37 million) to SGD 26 million ($19.35 million).”

PropertyGuru posts net profit of $224,022 in third quarter