PropertyGuru reports $820k net profit in Q4 amid higher SG revenue

Photo credit: PropertyGuru

Online property portal PropertyGuru posted a net income of S$1.1 million (roughly US$820,000) for the fourth quarter of 2023, reversing from a net loss of about US$3.9 million a year prior and marking the second consecutive quarter of positive earnings.

This came as revenue for the quarter rose 3.5% to US$30.9 million from US$29.8 million in Q4 2022, on the back of growth in its Singapore marketplaces.

Adjusted EBITDA surged to US$6.6 million from US$374,000 in the corresponding period last year.

Marketplaces revenue increased 4.1% year on year to US$29.7 million, as a strong performance in its Singapore market helped to offset challenging market conditions in Vietnam, said PropertyGuru.

Earnings per share for the period stood at roughly US$0.0074, reversing from a loss per share of US$0.022 a year ago.

For the full year, net loss narrowed 88.2% to US$11.4 million, while revenue increased 10.5% to US$111.6 million.

“Despite less-than-favorable market conditions in Vietnam and Malaysia, we were able to achieve these results by being laser-focused on optimizing costs, adopting internal process automation, improving code quality and productivity,” said Hari Krishnan, CEO and managing director of PropertyGuru.

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On February 27, the group announced that it would lay off 79 employees, or 5% of its workforce, as part of a strategic review to “future-proof” the business in volatile markets. It is also closing two out of nine branches in Vietnam relating to its marketplace business.

Joe Dische, PropertyGuru’s CFO, highlighted that all of the company’s markets – Singapore, Malaysia, and Vietnam – recorded positive adjusted EBITDA. He also noted that corporate expenses as a percentage of overall revenue decreased to 37% in 2023 from 39% in 2022.

“Looking to 2024, we will continue to focus on expanding internal operating leverage as we look to improve profitability,” he said. “We are introducing a full-year 2024 revenue outlook of US$122.7 million to US$133.9 million and a full-year adjusted EBITDA outlook of US$16.4 million to US$19.3 million.”

Vietnam continues to pose a challenge for PropertyGuru, as the government continues to restabilize the property market following anti-corruption and credit-accessibility issues that evolved into consumer-credit concerns in 2023. Dische highlighted that cost-management actions have helped improve adjusted EBITDA margins to 13%, despite a drop in revenue.

While Grab has announced a US$500 million share buyback program, PropertyGuru has not considered such an initiative so far, said Dische. The money raised from the company’s listing was to pursue potential M&A opportunities, such as its purchase of home services provider Sendhelper.