PropertyGuru slashes Q4 losses to S$5.2 million
Benjamin Cher
PROPERTYGURU reported an 80.7 per cent drop in losses for Q4 FY2022 to S$5.2 million from S$27.2 million in Q4 FY2021. Q4 FY2022 revenue grew 16.8 per cent to S$40.1 million from S$34.3 million a year prior.
For FY2022, the property listings portal reported a 31.1 per cent year-on-year drop in losses from S$187.4 million to S$129.2 million, as FY2022 revenue grew 35 per cent to S$135.9 million from S$100.7 million in FY2021.
Marketplaces continue to be the main revenue driver for PropertyGuru, with Singapore being the top revenue contributor. The Singapore marketplace grew 24 per cent from S$55.9 million in FY2021 to S$69.2 million in FY2022. The growth was driven by the increase in average revenue per agent (ARPA) and an increase in overall agents.
Malaysia has pipped Vietnam to be the second highest revenue contributor in FY2022, with revenue increasing 77.4 per cent from S$14.3 million in FY2021 to S$25.4 million in FY2022. This increase was driven by the iProperty brand acquired in August 2021.
Vietnam is now in third place, with revenue rising 28.1 per cent from S$18.8 million in FY2021 to S$24 million in FY2022. The market saw the government tightening credit, which resulted in fewer listings in Vietnam.
The adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) for FY2022 stood at S$14.5 million.
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“While rising interest rates and government credit intervention weighed on market activity, we remained resilient and delivered good growth by helping our customers navigate the challenges they faced and confirming the value-add of our solutions in all phases of the real estate cycle,” said Hari V Krishnan, chief executive officer and managing director, PropertyGuru.
The company is guiding FY2023 revenues to be between S$160 million and S$170 million, with adjusted Ebitda between S$11 million and S$15 million. PropertyGuru will no longer remove the ongoing costs of listing when calculating adjusted Ebitda from Q1 FY2023. The costs for FY2023 is estimated to be between S$11 million and S$12 million.
There are a number of short-term global and local factors that could continue to impact operations and that resulted in a conservative outlook for FY2023. Local factors include the actions by the Vietnam government to rein in consumer credit, political uncertainty in Malaysia, and tightening property policies in Singapore. Among the global factors are the rising interest rate environment, inflationary pressures and supply chain issues.
PropertyGuru is projecting that Singapore’s property prices will hold up well, even after the various measures the government has rolled out. Supply is coming online, but prices should remain stable, which gives a sense of the demand in Singapore, said Krishnan. “Singapore still looks like a good space, we have a lot of agents in the marketplace, ARPA still looks very healthy,” he said.
The priority markets for PropertyGuru continue to be Singapore, Malaysia and Vietnam.
“We remain bullish on our ability to deliver value to our customers as we digitise the property ecosystem and bring transparency and efficiency. We believe that our markets in South-east Asia will be at the forefront of future global growth,” said Krishnan.
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