Revenues Grew 16% Year Over Year in the First
Quarter and Adjusted EBITDA was Positive
- Total revenues grew 16% to S$33 million in the first quarter
2023, with over 25% year over year growth in every segment except
Vietnam
- The Company reaffirms its full year 2023 outlook for revenue of
S$160 million to S$170 million and Adjusted EBITDA of S$11 million
to S$15 million
PropertyGuru Group Limited (NYSE: PGRU) (“PropertyGuru” or the
“Company”), Southeast Asia’s leading1, property technology
(“PropTech”) company, today announced financial results for the
quarter ended March 31, 2023. Revenue of S$33 million in the first
quarter 2023 increased 16% year over year. Net loss was S$10
million in the first quarter and Adjusted EBITDA2 was a positive
S$0.2 million. This compares to a net loss of S$120 million3 and a
positive Adjusted EBITDA of S$0.5 million in the first quarter of
2022.
Management Commentary
Hari V. Krishnan, Chief Executive Officer and Managing
Director, said “Our first quarter results are a successful
start to 2023. As expected, performance in Singapore and Malaysia
helped offset the challenging market conditions in Vietnam. In
Singapore, our solutions performed well, effectively monetizing the
strong sales market as well as taking advantage of rising rental
rates. Malaysia continues to benefit from newly launched products
and further execution of our dual brand strategy. Vietnam remains
the primary challenge in the near-term, as governmental monetary
policy has significantly impacted real estate transaction activity.
We believe that these pressures will begin to abate in the latter
part of 2023 and into 2024. We continue to proactively manage our
operations to maximize performance while laying the groundwork to
take advantage when the Vietnam real estate market recovers. In all
of our markets, we are often reminded that the value of
PropertyGuru solutions for our customers can be more visible when
the property cycle transitions and macro-economic pressures
intensify.
As we move into the middle of 2023, we remain positive in both
our ability to deliver essential, differentiated property solutions
to our agent and enterprise customers as well as the long-term
health and opportunity that is characteristic of our Southeast
Asian property markets. In the following quarters, we will be
focused on helping consumers find, finance, and own their homes. We
continue to be excited about the fundamental opportunities
available in the markets we operate in.”
Joe Dische, Chief Financial Officer, added “We are
pleased with the 16% year over year revenue growth in the first
quarter of 2023. The year has started off strongly despite the
anticipated challenges in Vietnam due to monetary policy actions by
the government in a targeted effort to cool real estate market
activity. Given macro uncertainty, we continue to keep a close eye
on costs, especially with respect to discretionary spending. Our
Adjusted EBITDA this quarter was in-line with the first quarter of
2022 despite the inclusion of a full quarter of costs associated
with being a listed entity. We remain confident in the underlying
strength of our offerings and the opportunities in the Southeast
Asian property markets. As a result, we are reaffirming our 2023
full year financial outlook for both revenue and Adjusted EBITDA.
Lastly, we are encouraged by the types of strategic M&A
opportunities we are seeing in the marketplace as we continue to
explore and evaluate adjacent opportunities to deploy available
capital.”
Financial Highlights – First Quarter 2023
- Total revenues increased 16% year over year to S$33 million in
the first quarter.
- Marketplaces revenues increased 15% year over year to S$31
million in the first quarter, as continued strength in Singapore
and Malaysia offset challenges in the Vietnam market due to
governmental restrictions on credit.
- Revenue by segments:
- Singapore Marketplaces revenue increased 26% year over year to
S$19 million, as the number of overall agents and the Average
Revenue Per Agent (“ARPA”) grew in the quarter. Quarterly ARPA was
up 19% in the first quarter to S$1,124 as compared to the prior
year quarter and the number of overall agents in Singapore was up
over 200 from year-end 2022 to 15,765 agents. The renewal rate was
79% in the quarter.
- Malaysia Marketplaces revenue increased 26% year over year to
S$7 million, as the Company continues to leverage our two market
leading brands (iProperty and PropertyGuru).
- Vietnam Marketplaces revenue decreased 34% year over year to
S$3 million, as governmental actions to tighten credit continue to
impact the overall number of listings in the market. The number of
listings was down 32% to 1.1 million in the first quarter as
compared to the prior year quarter. The average revenue per listing
(“ARPL”) was S$2.95, in-line with the first quarter of 2022.
- At quarter-end, cash and cash equivalents were S$294
million.
Information regarding our operating segments is presented below.
It is noted that in 2023 the Company is no longer removing the
ongoing cost of being a listed entity when calculating Adjusted
EBITDA. As such, the 2022 comparative has been restated.
For the Three Months Ended
March 31,
2023
2022
YoY Growth
(S$ in thousands except
percentages)
Revenue
32,628
28,232
15.6
%
Marketplaces
31,200
27,213
14.7
%
Singapore
18,847
15,004
25.6
%
Vietnam
3,328
5,056
-34.2
%
Malaysia
6,818
5,434
25.5
%
Other Asia
2,207
1,719
28.4
%
Fintech and data services
1,428
1,019
40.1
%
Adjusted EBITDA
220
554
Marketplaces
16,295
13,652
Singapore
14,007
11,398
Vietnam
(921
)
1,137
Malaysia
3,502
2,369
Other Asia
(293
)
(1,252
)
Fintech and data services
(2,205
)
(1,646
)
Corporate*
(13,870
)
(11,452
)
Adjusted EBITDA Margin (%)
0.7
%
2.0
%
Marketplaces
52.2
%
50.2
%
Singapore
74.3
%
76.0
%
Vietnam
-27.7
%
22.5
%
Malaysia
51.4
%
43.6
%
Other Asia
-13.3
%
-72.8
%
Fintech and data services
-154.4
%
-161.5
%
*Corporate consists of headquarters costs, which are not
allocated to the segments. Headquarters costs are costs of
PropertyGuru’s personnel that are based predominantly in its
Singapore headquarters and certain key personnel in Malaysia and
Thailand, and that service PropertyGuru’s group as a whole,
consisting of its executive officers and its group marketing,
technology, product, human resources, finance and operations teams,
as well as platform IT costs (hosting, licensing, domain fees),
workplace facilities costs, corporate public relations retainer
costs and professional fees such as audit, legal and consultant
fees. The cost of being a listed entity is also included.
Strong Category Leadership Drives Long-Term Growth
Opportunities
As of March 31, 2023, PropertyGuru continued its Engagement
Market Share4 leadership in Singapore, Vietnam, Malaysia, and
Thailand.
Singapore: 82% – 5.6x the closest
peer
Thailand: 54% – 2.2x the closest
peer
Vietnam: 83% – 5.1x the closest
peer
Indonesia: 26% – 0.4x the closest
peer
Malaysia: 93% – 13.9x the closest
peer
Full Year 2023 Outlook
The Company reaffirms its full year 2023 outlook of revenues
between S$160 million and S$170 million and Adjusted EBITDA between
S$11 million and S$15 million.
In the short term, the Company may be impacted by several
factors outside of its control. These factors include actions by
the government of Vietnam to rein in the availability of consumer
credit, residual political uncertainty in Malaysia, property
taxation and stamp duty increases in Singapore as a mechanism for
prioritizing affordable home ownership for Singaporeans, a lack of
clarity in global fiscal policy stemming from rising interest
rates, greater inflationary pressures, and global supply chain
issues. 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
Wednesday, May 24, 2023, at 8:00 a.m. Eastern Standard Time / 8:00
p.m. Singapore Standard Time to discuss the Company's financial
results for the first quarter of 2023 and full year 2023 outlook.
The PropertyGuru (NYSE: PGRU) Q1 2023 Earnings call can be accessed
by registering at:
https://propertyguru.zoom.us/webinar/register/WN_TlifVd2DS4SqGghTyijfvw
An archived version will be available on the Company’s Investor
Relations website after the call at
https://investors.propertygurugroup.com/news-and-events/events-and-presentations/default.aspx
About PropertyGuru Group
PropertyGuru is Southeast Asia’s leading1 PropTech company, and
the preferred destination for over 37 million property seekers5 to
connect with almost 60,000 agents6 monthly to find their dream
home. PropertyGuru empowers property seekers with more than 2.9
million real estate listings7, in-depth insights, and solutions
that enable them to make confident property decisions across
Singapore, Malaysia, Thailand, Indonesia, and Vietnam.
PropertyGuru.com.sg was launched in Singapore in 2007 and since
then, PropertyGuru Group has made the property journey a
transparent one for property seekers in Southeast Asia. In the last
15 years, PropertyGuru has grown into a high-growth PropTech
company with a robust portfolio including leading property
marketplaces and award-winning mobile apps across its core markets;
mortgage marketplace, PropertyGuru Finance; home services platform,
Sendhelper; a host of proprietary enterprise solutions under
PropertyGuru For Business including DataSense, ValueNet, Awards,
events and publications across Asia.
For more information, please visit: PropertyGuruGroup.com;
PropertyGuru Group on LinkedIn.
Key Performance Metrics and Non-IFRS Financial
Measures
Our priority markets comprise Singapore, Vietnam, Malaysia and
Thailand. Our core markets comprise Singapore, Vietnam, Malaysia,
Thailand and Indonesia.
Engagement Market Share is the average monthly engagement for
websites owned by PropertyGuru as compared to average monthly
engagement for a basket of peers calculated over the relevant
period. Engagement is calculated as the number of visits to a
website during a period multiplied by the total amount of time
spent on that website for the same period, in each case based on
data from SimilarWeb. Engagement Market Share is based on the
prevailing SimilarWeb algorithm on the date the Company first filed
or furnished such information to the U.S. Securities and Exchange
Commission (“SEC”).
Number of agents in all core markets except Vietnam is
calculated for a period as the sum of the number of agents with a
valid 12-month subscription package at the end of each month in a
period divided by the number of months in such period. In Vietnam,
number of agents is calculated as the average monthly number of
agents who credit money into their account within the relevant
period. When counting in aggregate across the PropertyGuru group,
in markets where PropertyGuru operates more than one property
portal, an agent with subscriptions to more than one portal is only
counted once.
Number of real estate listings is calculated as the average
number of listings created monthly during the period for Vietnam
and the average number of monthly listings available in the period
for other markets.
Average revenue per agent (“ARPA”) is calculated as agent
revenue for a period divided by the average number of agents in
that period, which is calculated as the sum of the number of total
agents at the end of each month in a period divided by the number
of months in such period.
Number of listings in Vietnam is calculated as the sum of all
listings created in each month over the relevant period (other than
listings from promotional accounts). Number of listings is used to
calculate average revenue per listing, which is described
below.
Average revenue per listing (“ARPL”) is calculated as revenue
for a period divided by the number of listings in such period.
Renewal rate is calculated as the number of agents that
successfully renew their annual package during a period divided by
the number of agents whose packages are up for renewal (at the end
of their twelve-month subscription) during that period.
This press release also includes references to non-IFRS
financial measures, namely Adjusted EBITDA and Adjusted EBITDA
Margin. PropertyGuru uses these measures, collectively, to evaluate
ongoing operations and for internal planning and forecasting
purposes. PropertyGuru believes that non-IFRS information, when
taken collectively, may be helpful to investors because it provides
consistency and comparability with past financial performance and
may assist in comparisons with other companies to the extent that
such other companies use similar non-IFRS measures to supplement
their IFRS or GAAP results. These non-IFRS measures are presented
for supplemental informational purposes only and should not be
considered a substitute for financial information presented in
accordance with IFRS, and may be different from similarly titled
non-IFRS measures used by other companies. Accordingly, non-IFRS
measures have limitations as analytical tools, and should not be
considered in isolation or as substitutes for analysis of other
IFRS financial measures, such as net loss and loss before income
tax.
Adjusted EBITDA is a non-IFRS financial measure defined as net
profit/loss for year/period adjusted for changes in fair value of
preferred shares, warrant liability and embedded derivatives,
finance costs, depreciation and amortization, tax expenses or
credits, impairments when the impairment is the result of an
isolated, non-recurring event, share grant and option expenses,
loss on disposal of plant and equipment and intangible assets,
currency translation profit or loss, fair value profit or loss on
lease modifications and contingent consideration, business
acquisition transaction and integration cost (including contingent
consideration), the cost of listing or IPO activities.
Adjusted EBITDA Margin is defined as Adjusted EBITDA as a
percentage of revenue.
A reconciliation of net loss to Adjusted EBITDA is provided as
follows. It is noted that in 2023 the Company is no longer removing
the ongoing cost of being a listed entity when calculating Adjusted
EBITDA. As such, the 2022 comparative has been restated.
For the Three Months Ended
March 31,
2023
2022
(S$ in thousands)
Net loss
(10,221
)
(120,348
)
Adjustments:
Changes in fair value of preferred shares,
warrant liability and embedded derivatives
2,136
(11,072
)
Finance (income)/costs - net
(1,420
)
626
Depreciation and amortization expense
5,862
4,914
Share grant and option expenses
2,258
1,528
Other losses - net
73
201
Business acquisition transaction and
integration cost1
1,442
1,233
Legal and professional fees incurred for
IPO
—
18,444
Share listing expense
—
104,950
Tax expenses
90
78
Adjusted EBITDA
220
554
Forward-Looking Statements
Forward-looking statements in this press release, which are not
historical facts, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1955. These
statements include statements regarding our future results of
operations and financial position, planned products and services,
business strategy and plans, objectives of management for future
operations of PropertyGuru, market size and growth opportunities,
competitive position and technological and market trends and
involve known and unknown risks that are difficult to predict. As a
result, our actual results, performance or achievements may differ
materially from those expressed or implied by these forward-looking
statements. In some cases, you can identify forward-looking
statements because they contain words such as “may,” “will,”
“shall,” “should,” “expects,” “plans,” “anticipates,” “could,”
“intends,” “target,” “projects,” “contemplates,” “believes,”
“estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,”
or “continue” or the negative of these words or other similar terms
or expressions that concern our expectations, strategy, plans, or
intentions. Such forward-looking statements are necessarily based
upon estimates and assumptions that, while considered reasonable by
us and our management, are inherently uncertain. Factors that may
cause actual results to differ materially from current expectations
include, but are not limited to: changes in domestic and foreign
business, market, financial, political and legal conditions;
competitive pressures in and any disruption to the industry in
which PropertyGuru and its subsidiaries (the “Group”) operates; the
Group’s ability to achieve profitability despite a history of
losses; the Group’s ability to implement its growth strategies and
manage its growth; customers of the Group continuing to make
valuable contributions to its platform; the Group’s ability to meet
consumer expectations; the success of the Group’s new product or
service offerings; the Group’s ability to produce accurate
forecasts of its operating and financial results; the Group’s
ability to attract traffic to its websites; the Group’s ability to
assess property values accurately; the Group’s internal controls;
the impact of rising inflation and interest rates on the Group’s
business, real estate markets and the economy in general; the
impact of government and regulatory policies on real estate or
credit markets in the countries in which the Group operates;
fluctuations in foreign currency exchange rates; the Group’s
ability to raise capital; media coverage of the Group; the Group’s
ability to obtain insurance coverage; changes in the regulatory
environments (such as anti-trust laws, foreign ownership
restrictions and tax regimes) of the countries in which the Group
operates; general economic conditions in the countries in which the
Group operates; political instability in the jurisdictions in which
the Group operates; political unrest, terrorist activities and
other geopolitical risks, including the ongoing military action
between Russia and Ukraine; the Group’s ability to attract and
retain management and skilled employees; the impact of the COVID-19
pandemic on the business of the Group; the Group’s ability to
integrate newly acquired businesses or companies and the success of
the Group’s strategic investments and acquisitions; changes in the
Group’s relationship with its current customers, suppliers and
service providers; disruptions to information technology systems
and networks; the Group’s ability to grow and protect its brand and
the Group’s reputation; the Group’s ability to protect its
intellectual property; changes in regulation and other
contingencies; the Group’s ability to achieve tax efficiencies of
its corporate structure and intercompany arrangements; potential
and future litigation that the Group may be involved in;
unanticipated losses, write-downs or write-offs; restructuring and
impairment or other charges, taxes or other liabilities that may be
incurred or required subsequent to, or in connection with, the
consummation of the Group’s completed business combination;
technological advancements in the Group’s industry; and other risks
discussed in our filings with the SEC.
All forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
the cautionary statements set forth above. We caution you not to
place undue reliance on any forward-looking statements, which are
made only as of the date of this press release. We do not undertake
or assume any obligation to update publicly any of these
forward-looking statements to reflect actual results, new
information or future events, changes in assumptions or changes in
other factors affecting forward-looking statements, except to the
extent required by applicable law. If we update one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements. The inclusion of any statement in this
press release does not constitute an admission by PropertyGuru or
any other person that the events or circumstances described in such
statement are material. Undue reliance should not be placed upon
the forward-looking statements.
Industry and Market Data
This press release contains information, estimates and other
statistical data derived from third party sources and/or industry
or general publications, including estimated insights from
SimilarWeb and Google Analytics. Such information involves a number
of assumptions and limitations, and you are cautioned not to place
undue weight on such estimates. PropertyGuru has not independently
verified such third-party information, and makes no representation
as to the accuracy of such third-party information.
PROPERTYGURU GROUP LIMITED AND
ITS SUBSIDIARIES
UNAUDITED CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
For the Three Months Ended
March 31,
2023
2022
(S$ in thousands, except share
and per share data)
Revenue
32,628
28,232
Other income
1,666
478
Other (losses) /gains - net
(2,208
)
10,871
Expenses
Venue costs
(1,270
)
(949
)
Sales and marketing cost
(4,253
)
(4,100
)
Sales commission
(2,241
)
(3,052
)
Reversal of impairment loss on financial
assets
39
604
Depreciation and amortization
(5,862
)
(4,914
)
IT and Internet expenses
(3,134
)
(2,415
)
Legal and professional
(1,078
)
(854
)
Employee compensation
(20,786
)
(18,265
)
Non-executive directors' remuneration
(334
)
(773
)
Staff cost
(588
)
(399
)
Office rental
(27
)
(22
)
Finance cost
(132
)
(727
)
Legal and professional fees incurred for
IPO
—
(18,444
)
Share listing expense
—
(104,950
)
Other expenses
(2,551
)
(591
)
Total expenses
(42,217
)
(159,851
)
Loss before income tax
(10,131
)
(120,270
)
Tax expenses
(90
)
(78
)
Net loss for the period
(10,221
)
(120,348
)
Other comprehensive loss:
Items that may be reclassified
subsequently to profit or loss:
Currency translation differences arising
from consolidation
(5,643
)
(663
)
Actuarial loss from post-employment
benefits obligation
(4
)
(9
)
Other comprehensive loss for the period,
net of tax
(5,647
)
(672
)
Total comprehensive loss for the
period
(15,868
)
(121,020
)
Loss per share for loss attributable to
equity holders of the Company
Basic and diluted loss per share for the
period
(0.06
)
(0.90
)
PROPERTYGURU GROUP LIMITED AND
ITS SUBSIDIARIES
UNAUDITED CONDSOLIDATED
BALANCE SHEETS
As of March 31, 2023
As of December 31,
2022
(S$ in thousands)
ASSETS
Current assets
Cash and cash equivalents
294,388
309,233
Trade and other receivables
17,965
18,145
312,353
327,378
Non-current assets
Trade and other receivables
4,778
4,559
Intangible assets
392,335
393,450
Plant and equipment
2,237
2,535
Right-of-use assets
10,283
11,475
409,633
412,019
Total assets
721,986
739,397
LIABILITIES
Current liabilities
Trade and other payables
23,794
29,737
Lease liabilities
4,112
4,104
Deferred revenue
51,717
50,753
Provisions
280
280
Current income tax liabilities
4,226
4,302
84,129
89,176
Non-current liabilities
Trade and other payables
328
296
Lease liabilities
7,341
8,339
Deferred income tax liabilities
1,754
1,879
Provisions
679
672
Warrant liabilities
6,869
4,775
16,971
15,961
Total liabilities
101,100
105,137
Net assets
620,886
634,260
SHAREHOLDERS' EQUITY
Capital and reserves attributable to
equity holders of the Group
Share capital
1,082,120
1,081,320
Share reserve
19,386
17,692
Capital reserve
785
785
Translation reserve
(22,604
)
(16,961
)
Accumulated losses
(458,801
)
(448,576
)
Total shareholders' equity
620,886
634,260
PROPERTYGURU GROUP LIMITED AND
ITS SUBSIDIARIES
UNAUDITED CONSOLIDATED
STATEMENTS OF CASH FLOWS
For the Three Months Ended
March 31
2023
2022
(S$ in thousands)
Cash flows from operating
activities
Loss for the period
(10,221
)
(120,348
)
Adjustments for:
- Tax expenses
90
78
- Employee share grant and option
expense
2,086
912
- Non-executive director share grant and
option expense
215
660
- Depreciation and amortization
5,862
4,914
- Loss on disposal of plant and equipment
and intangible assets
—
27
- Reversal of impairment loss on financial
assets
(39
)
(604
)
- Interest income
(1,552
)
(101
)
- Finance cost
132
727
- Unrealised currency translation gain
(8
)
(7
)
- Fair value loss/(gain) on warrant
liabilities
2,136
(11,072
)
- Share listing expense
—
104,950
(1,299
)
(19,864
)
Change in working capital, net of effects
from acquisition
and disposal of subsidiaries:
- Trade and other receivables
98
2,077
- Trade and other payables
(5,914
)
12,932
- Deferred revenue
965
(2,506
)
Cash used in operations
(6,150
)
(7,361
)
Interest received
1,455
98
Income tax paid
(223
)
(110
)
Net cash used in operating
activities
(4,918
)
(7,373
)
Cash flows from investing
activities
Additions to plant and equipment
(117
)
(160
)
Additions of intangible assets
(6,551
)
(4,116
)
Proceeds from disposal of plant and
equipment
—
23
Net cash used in investing
activities
(6,668
)
(4,253
)
Cash flows from financing
activities
Interest paid
(124
)
(360
)
Principal payment of lease liabilities
(990
)
(984
)
Proceeds from reorganisation
—
142,145
Proceeds from the shares issued to PIPE
investors
—
178,653
Transaction cost in relation to issuance
of PIPE shares
—
(7,664
)
Proceeds from issuance of ordinary
shares
193
11
Payment for legal and professional fees
incurred for IPO
—
(955
)
Net cash (used in)/provided by
financing activities
(921
)
310,846
Net (decrease)/increase in cash and
cash equivalents
(12,507
)
299,220
Cash and cash equivalents
Beginning of the three months ended 31
March
309,233
70,236
Effects of currency translation on cash
and cash equivalents
(2,338
)
—
End of the three months ended 31 March
294,388
369,456
1 Based on SimilarWeb data between October 2022 and March 2023.
2 Included in the S$10 million of adjustments between net loss and
Adjusted EBITDA in the first quarter of 2023 was a S$6 million
depreciation and amortization expense. 3 Included in the S$121
million of adjustments between net loss and Adjusted EBITDA in the
first quarter of 2022 were a S$105 million share listing expense,
S$18 million of legal and professional expenses for the IPO, a S$5
million depreciation and amortization expense, and S$11 million in
positive changes in the fair value of securities. 4 Based on
SimilarWeb data between October 2022 and March 2023. 5 Based on
Google Analytics data between October 2022 and March 2023. 6 Based
on data between January 2023 and March 2023. 7 Based on data
between October 2022 and March 2023. 8 Certain amounts in the prior
year have been adjusted to conform to the current year
presentation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230523006157/en/
Media PropertyGuru
Group Sheena Chopra +65 9247 5651
sheena@propertyguru.com.sg
Investor PropertyGuru
Group Nat Otis +1 860 906 7860 natotis@propertyguru.com
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