Revenue Grew 12% Year Over Year in the First Quarter and Adjusted EBITDA of S$4 Million
- Total revenue grew 12% to S$37 million in the first quarter of 2024; Singapore revenue grew 25%
- Adjusted EBITDA of S$4 million in the first quarter 2024, up from S$0.2 million in the first quarter 2023
- 12% Adjusted EBITDA margin in the first quarter 2024, up from 0.7% in the first quarter 2023
PropertyGuru Group Limited (NYSE: PGRU) ("PropertyGuru" or the "Company"), Southeast Asia's leading[1], property technology ("PropTech") company, today announced financial results for the quarter ended March 31, 2024. Revenue of S$37 million in the first quarter 2024 increased 12% year over year. Net loss was S$6 million in the first quarter and Adjusted EBITDA2 was S$4 million. This compares to a net loss of S$10 million and Adjusted EBITDA[2] of S$0.2 million in the first quarter of 2023.
Management Commentary
Hari V. Krishnan, Chief Executive Officer and Managing Director, said "Across Southeast Asia, we have seen governments introduce robust policies and budgets to accelerate growth, resulting in uplifted property sentiment. In the first quarter of 2024, we delivered double-digit revenue growth, with the Singapore business showing particular strength.
In Vietnam, we are seeing a gradual improvement in the property market towards the end of the quarter, with listings on our platform hitting a 12-month high in March. Despite near-term challenges, we see a positive outlook for the Malaysian market, with our latest consumer sentiment survey indicating that 1 in 3 Malaysians intend to buy a property in the next two years.
We are encouraged to see agents in Singapore continue to adopt our AI supported product features to enhance the quality of their listings and engagements. Our new AI video feature, introduced in January, has close to 60% of agents using it after their first trial. As part of our efforts to assist an industry adopting increased professionalism, we rolled out our Professional Agent Verification process in Vietnam, which saw more than 500 agents verified in the first week.
I am also proud to share that we have released our first sustainability report. This is supported by the recently launched 'Gurus For Good' program, our sustainability mandate.
This year our solutions will play a bigger role in empowering our customers as we power communities to live, work, and thrive in tomorrow's cities."
Joe Dische, Chief Financial Officer, added "PropertyGuru delivered a solid start to 2024 with double-digit revenue growth and flat costs year over year leading to double-digit Adjusted EBITDA margin, while navigating a phased recovery in Vietnam and Malaysia as well as typical seasonality in Southeast Asia during the first quarter, which includes the Lunar New Year holiday.
We remain cautiously optimistic for the year ahead. The Singapore business continues to perform, and we are seeing positive signals coming from Vietnam and Malaysia. While awaiting further improvement in secular trends, we are laser-focused on managing costs and improving profitability.
Illustrating this commitment, our Adjusted EBITDA margin grew from 0.7% in the first quarter of 2023 to 12.2% this quarter. All of our Marketplaces businesses showed margin improvement year over year. Corporate expenses as a percentage of overall revenue decreased from 43% in first quarter 2023 to 40% this quarter, as we continue to show improved operating leverage.
For the remainder of 2024, selective hiring and focused investment remain our mantra. We plan to continue to invest in automation, leverage our existing technologies and generative AI to both provide superior customer experiences and manage our cost base as we drive continued revenue growth. Our full year revenue outlook of S$165 million to S$180 million and full year Adjusted EBITDA outlook of S$22 million to S$26 million are unchanged."
Financial Highlights - First Quarter 2024
- Total revenue increased 12% year over year to S$37 million in the first quarter.
- Marketplaces revenue increased 13% year over year to S$35 million in the first quarter as strong results in Singapore helped to offset a slower recovery in Vietnam and Malaysia.
- Revenue by segment:
- Singapore Marketplaces revenue increased to 25% year over year to S$24 million in the first quarter, as both the number of agents and the Average Revenue Per Agent ("ARPA") grew in the quarter. Quarterly ARPA was up 22% to S$1,368 as compared to the prior year quarter, and the number of agents in Singapore grew marginally to finish the first quarter 2024 at 16,487. The renewal rate was 77% in the first quarter 2024.
- Malaysia Marketplaces revenue was flat year over year at S$7 million in the first quarter as property pricing remains elevated relative to consumer expectations, shifting the focus to rental listings in the near term.
- Vietnam Marketplaces revenue was flat year over year at S$3 million in the first quarter as a 13% increase in the Average Revenue Per Listing ("ARPL") was offset by a 13% decrease in listings with continuing market weakness. ARPL in the first quarter was S$3.32 and the number of listings in the quarter was 1.0 million.
- Fintech & Data services revenue was marginally down 3% year over year to S$1.0 million in the first quarter.
- At quarter-end, cash and cash equivalents were S$300 million.
Strong Category Leadership Drives Long-Term Growth Opportunities
As of March 31, 2024, PropertyGuru continued its Engagement Market Share[3] leadership in Singapore, Vietnam, Malaysia, and Thailand.
Singapore: 81% - 5.4x the closest peer
Malaysia: 93% - 13.0x the closest peer
Vietnam: 82% - 4.8x the closest peer
Thailand: 62% - 2.7x the closest peer
Full Year 2024 Outlook
The Company reaffirms its full year 2024 revenue outlook of between S$165 million and S$180 million and Adjusted EBITDA outlook of between S$22 million and S$26 million.
The following near-term factors may impact the Company's operations in 2024: further delays in the recovery of Vietnam's property market due to consumer sentiment and access to credit; weaker than expected economic conditions in Malaysia; and additional fiscal policy measures that the Singapore government may implement. Longer-term, the Company remains bullish on its growth trajectory, prospects for improving profitability, and the fundamental opportunity that exists in our core markets.
Conference Call and Webcast Details
The Company will host a conference call and webcast on Tuesday, May 21, 2024, at 7:30 a.m. Eastern Standard Time / 7:30 p.m. Singapore Standard Time to discuss the Company's financial results for the first quarter. The PropertyGuru (NYSE: PGRU) Q1 2024 earnings call can be accessed by registering at:
https://propertyguru.zoom.us/webinar/register/WN_g5zZyE3kSbuC3DDhq3oSSw#/registration
An archived version will be available on the Company's Investor Relations website after the call at https://investors.propertygurugroup.com/financials/quarterly-results/default.aspx
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[1] Based on SimilarWeb data between October 2023 and March 2024.
[2] Please refer to non-GAAP reconciliation of net income/(loss) to Adjusted EBITDA section for more details.
[3] Based on SimilarWeb data between October 2023 and March 2024.
[4] Based on Google Analytics data between October 2023 and March 2024.
[5] Based on data between January 2024 and March 2024.
[6] Based on data between October 2023 and March 2024.