PropertyGuru’s Q2 net income in the black for the first time since US listing

PROPERTY portal PropertyGuru is the first among Singapore-based startups to turn profitable following its listing in the United States.

For the first time since its listing in March, the property portal reported on Thursday (Aug 25) that its net income for the second quarter of FY2022 ended Jun 30 had turned positive, coming in at S$3.8 million.

This is a reversal from a net loss of S$139.8 million in the same quarter a year ago.

PropertyGuru’s revenue increased 43.6 per cent year on year to S$33 million from S$23 million over the same time period. For the first half of FY2022, revenue came in at S$61.3 million. (see *Amendment note)

The proptech company said in a statement that this was balanced with growth across all markets and business segments.

“Investments made over the last 2 years are gaining traction now, as real estate markets emerge from the pandemic-induced slowdown,” it said.

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Its Malaysia marketplace segment recorded the highest revenue growth, increasing from S$2.2 million to S$5.9 million, a jump of 169.7 per cent.

Revenue for its Singapore marketplace increased by 30.6 per cent to S$17.3 million, from S$13.2 million over the same period.

Its adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) was S$3 million in the second quarter of FY2022, a reversal from a loss of S$2 million a year ago.

Its earnings per share, attributable to shareholders of the New York-listed company, is also in the black at 2 cents per share, compared to a loss of US$2.48 per cent share over a year ago.

PropertyGuru maintains its full-year outlook of approximately 44 per cent revenue growth, driven by the strong start to 2022 and growth across all core markets.

It expects to return to full-year positive adjusted Ebitda, as it realises the full benefits of its pandemic-period investments. However, it also cautioned that this outlook could be hit by uncertainty around rising inflation and interest rates, government policy and fiscal intervention, political instability and other macro factors.

Hari Krishnan, the company’s chief executive officer and managing director, said that its strategy of increasing its customer value proposition is proving effective, as returns on investments made over the past few years have begun to come in.

“Going forward, we expect to capitalise on both organic and inorganic opportunities to further expand our world-class solutions to customers. Even with our growing business strength, we remain vigilant around potential market challenges from rising inflation and interest rates and other global macro headwinds,” he added.

PropertyGuru’s share price closed 0.9 per cent or 4 US cents lower at US$4.68 on Wednesday, New York time.

*Amendment note: The article earlier had incorrectly reported that the revenue increased by 44.3 per cent. It actually went up by 43.6 per cent.