Singapore’s PropertyGuru stays within the pink regardless of This fall income soar

SINGAPORE — Singapore’s on-line actual property portal PropertyGuru posted a internet lack of 5 million Singapore {dollars} ($3.7 million) within the fourth quarter of 2022.

The loss comes as world rates of interest proceed to rise, and as Vietnam, certainly one of its key markets, tightened borrowing in actual property.

Web loss for the three months to December 2022 got here in at SG$5.2 million. That is almost a 30% enchancment from the earlier quarter’s internet lack of SG$7.4 million.

Full yr internet losses in 2022 amounted to SG$129.2 million, higher than a internet lack of SG$187.4 million the earlier yr.

The agency has but to submit a full-year revenue since launching in 2007. It at the moment dominates the Southeast Asian market.

“Though it’s troublesome to say when PropertyGuru is ready to be again in black when it comes to internet revenue after tax, its 30% enchancment in internet loss is commendable,” mentioned Maximilian Koeswoyo, a analysis analyst at Phillip Securities.

In the meantime, income within the fourth quarter got here in at SG$40 million, about 17% enhance from a yr in the past. Full yr income jumped 35% to SG$136 million.

Shares of PropertyGuru closed 1.68% increased on Wednesday.

“An elevated product adoption, improved pricing and the continued integration of the iProperty acquisition all helped to offset difficult market selections. That mentioned, macro and financial coverage uncertainty continues to check our clients,” mentioned Hari Krishnan, CEO and managing director of PropertyGuru, throughout the earnings name on Wednesday.

“We imagine that the headwinds our core markets now face are largely non permanent, and the long term runway and underlying prospects for financial efficiency in Southeast Asia haven’t modified,” mentioned Krishnan.

Adjusted EBITDA, or earnings earlier than curiosity, taxes, depreciation and amortization, for the quarter was a constructive SG$5 million, up from an adjusted EBITDA lack of SG$4 million in the identical interval in 2021. 

Krishnan mentioned increased borrowing prices and uncertainty round Malaysia’s nationwide elections in November impacted gross sales, whereas the Singapore market remained resilient. In Vietnam, the federal government continued to tighten credit score to handle debt ranges leading to a drop of property itemizing.

After buying its Southeast Asian rivals — comparable to iProperty and brickz in Malaysia, thinkofliving and Prakard.com in Thailand in 2021, in addition to Batdongsan in Vietnam in 2018 — the agency stays a dominant participant within the area.

“PropertyGuru is unquestionably nonetheless in a growth-stage mindset as it’s nonetheless actively searching for additional merger and acquisition alternatives and specializing in the way it can present a extra full service choices on its platform,” Koeswoyo instructed CNBC in an e-mail.

“PropertyGuru’s inventory has misplaced about 50% of its worth since its itemizing in March 2022 and its every day quantity is on the low aspect as properly, so I believe the inventory has not garnered vital consideration from the traders,” mentioned Koeswoyo.

“I imagine the inventory goes to face some challenges within the near-term, particularly with the cooling measures by governments throughout the Southeast Asian area, however I believe it will have a serious turnaround as soon as PropertyGuru reveals an early indicators of trajectory in the direction of constructive internet revenue after tax,” mentioned Koeswoyo.

PropertyGuru expects the combination and scaling of the Sendhelper acquisition “to negatively influence profitability by SG$3 million to SG$4 million in 2023,” the earnings launch mentioned.

Sendhelper operates an app that gives dwelling companies comparable to cleansing and pest management and was acquired by PropertyGuru final yr, marking the latter’s foray into the market.

The web property portal is sustaining a “conservative outlook in 2023” amid challenges, and expects full yr 2023 income of between SG$160 million and SG$170 million and adjusted EBITDA of between SG$11 million and SG$15 million, it mentioned within the launch.

PropertyGuru started buying and selling on the New York Inventory Trade on Mar. 18 final yr.