PropertyGuru returns to the black in Q3 but lowers full-year revenue outlook

PROPERTYGURU reported earnings of S$312,000 in the third quarter of its fiscal year ended Sep 30, reversing from a net loss of S$7.4 million a year prior.

The New York Stock Exchange-listed online real estate portal on Tuesday (Nov 21) said its latest set of results brings the group out of its loss-making position with no income per share, as opposed to a per-share loss of S$0.05 in Q3 FY2022.

Revenue for Q3 FY2023 grew 13.2 per cent to S$39 million, driven mainly by higher contributions from Singapore, which more than offset lower revenue in Vietnam.

Singapore’s revenue contributions grew 24.1 per cent on the year to S$22.5 million as its number of agents and average revenue per agent grew over the quarter.

While revenue from Malaysia increased 11 per cent on a local currency basis due to ongoing benefits from PropertyGuru’s dual-brand strategy, revenue growth in Singapore dollar terms stood at a lower 4.5 per cent at S$6.8 million amid the depreciation of the Malaysian ringgit against the Singapore dollar.

In Vietnam, revenue fell 32.9 per cent year-on-year to S$4.1 million amid lower listing volumes, which were offset in part by higher average revenue per listing.

Noting “challenging market conditions” within Vietnam’s marketplace, PropertyGuru’s chief financial officer Joe Dische said group revenue was up a “solid 23 per cent” excluding the country. 

Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) – which no longer removes the ongoing cost of PropertyGuru being a listed entity – stood at S$5 million for Q3 FY2023, against a restated adjusted Ebitda of S$2 million in the same period a year ago.

Adjusted Ebitda margin for the latest quarter stood at 13.2 per cent, up from 5.8 per cent in Q3 FY2022.

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“This is the second quarter in a row that we achieved a double-digit adjusted Ebitda margin, with all of our marketplaces delivering a profit. In addition, both net income in the third quarter and year-to-date cash flow were positive,” said Dische.

Citing macroeconomic and exchange rate challenges in Malaysia – along with no expected recovery in Vietnam’s property market for 2023 – the company has lowered its full-year revenue projections to S$148 million to S$152 million, from its previous S$160 million to S$170 million range.

Dische however said the group’s 2023 adjusted Ebitda outlook remains unchanged at S$11 million to S$15 million due to “effective expense management”.