PropertyGuru Reports First Quarter 2023 Results
Revenues Grew
-
Total revenues grew
16% toS in the first quarter 2023, with over$33 million 25% year over year growth in every segment exceptVietnam -
The Company reaffirms its full year 2023 outlook for revenue of
S to$160 million S and Adjusted EBITDA of$170 million S to$11 million S $15 million
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
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
Financial Highlights – First Quarter 2023
-
Total revenues increased
16% year over year toS in the first quarter.$33 million -
Marketplaces revenues increased
15% year over year toS in the first quarter, as continued strength in$31 million Singapore andMalaysia offset challenges in theVietnam market due to governmental restrictions on credit. -
Revenue by segments:
-
Singapore Marketplaces revenue increased
26% year over year toS , as the number of overall agents and the Average Revenue Per Agent (“ARPA”) grew in the quarter. Quarterly ARPA was up$19 million 19% in the first quarter toS as compared to the prior year quarter and the number of overall agents in$1,124 Singapore was up over 200 from year-end 2022 to 15,765 agents. The renewal rate was79% in the quarter. -
Malaysia Marketplaces revenue increased
26% year over year toS , as the Company continues to leverage our two market leading brands (iProperty and PropertyGuru).$7 million -
Vietnam Marketplaces revenue decreased
34% year over year toS , as governmental actions to tighten credit continue to impact the overall number of listings in the market. The number of listings was down$3 million 32% to 1.1 million in the first quarter as compared to the prior year quarter. The average revenue per listing (“ARPL”) wasS , in-line with the first quarter of 2022.$2.95
-
Singapore Marketplaces revenue increased
-
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 |
% |
|
18,847 |
|
15,004 |
|
25.6 |
% |
|
3,328 |
|
5,056 |
|
-34.2 |
% |
|
6,818 |
|
5,434 |
|
25.5 |
% |
Other |
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 |
|
|
|
|
14,007 |
|
11,398 |
|
|
|
|
(921 |
) |
1,137 |
|
|
|
|
3,502 |
|
2,369 |
|
|
|
Other |
(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 |
% |
|
|
|
74.3 |
% |
76.0 |
% |
|
|
|
-27.7 |
% |
22.5 |
% |
|
|
|
51.4 |
% |
43.6 |
% |
|
|
Other |
-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
Strong Category Leadership Drives Long-Term Growth Opportunities
As of March 31, 2023, PropertyGuru continued its Engagement Market Share4 leadership in
|
|
|
|
|
|
|
|
|
Full Year 2023 Outlook
The Company reaffirms its full year 2023 outlook of revenues between
In the short term, the Company may be impacted by several factors outside of its control. These factors include actions by the government of
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
PropertyGuru.com.sg was launched in
For more information, please visit: PropertyGuruGroup.com; PropertyGuru Group on LinkedIn.
Key Performance Metrics and Non-IFRS Financial Measures
Our priority markets comprise
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
Number of agents in all core markets except
Number of real estate listings is calculated as the average number of listings created monthly during the period for
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
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
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
3 Included in the
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
Source: PropertyGuru Group Limited
