PropertyGuru Reports Fourth Quarter and Full Year 2022 Results

Revenues Grow 17% Year Over Year in the Fourth Quarter and 35% for the Full Year 2022

• Total revenue grew 35% to S$136 million in 2022, with over 20% year on year growth in every segment
• Adjusted EBITDA of S$14 million in 2022, up S$25 million from a loss of S$10 million in 2021
• Marketplaces 2022 Adjusted EBITDA increased 2.6x over 2021

SINGAPORE–(BUSINESS WIRE)–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 December 31, 2022. Revenue of S$40 million in the fourth quarter 2022 increased 17% year over year. Net loss was S$5 million in the fourth quarter and Adjusted EBITDA² was a positive S$5 million. This compares to a net loss of S$27 million³ and Adjusted EBITDA loss of S$4 million in the fourth quarter of 2021.

Management Commentary

Hari V. Krishnan, Chief Executive Officer and Managing Director, said: “We are pleased with our results, as PropertyGuru performed well in the face of several transitory challenges that continue to impact our core markets. 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.”

“Last year was a historic year for PropertyGuru, as we took the next step in our company’s evolution by listing on the NYSE. Going forward, we see great opportunity in 2023 and beyond as we continue to offer our customers differentiated solutions while looking to opportunistically deploy capital to accelerate the Company’s ongoing expansion. Sendhelper is a good example of a strategic acquisition we are excited about given the value it creates for our large audience base, and the underlying synergies between the companies,” Mr. Krishnan continued. “Rising rates, global inflation, and governmental fiscal activity are challenges that will need to be navigated in the near-term. We remain bullish on our ability to deliver value to our customers as we digitize the property ecosystem and bring transparency and efficiency. We believe that our markets in Southeast Asia will be at the forefront of future global growth.”

Joe Dische, Chief Financial Officer, added: “PropertyGuru delivered strong 35% revenue growth in 2022⁴, with all our segments performing well despite challenging operating conditions. We are pleased with how well our business responded, with proactive cost control actions contributing to a S$25 million year over year improvement in Adjusted EBITDA. Our actions in 2022 have laid the foundation for further revenue growth and improvements in operating performance. We continue to scale the business, accelerate the realization of our investments, and leverage the deployment of further growth capital.”

Financial Highlights – Fourth Quarter and Full Year 2022

• Total revenue increased 17% to S$40 million in the fourth quarter as compared to the previous year and increased 35% to S$136 million year over year.
• Marketplaces revenues increased 15% to S$38 million in the fourth quarter as compared to the previous year and increased 34% to S$131 million year over year, as continued strength in Singapore and Malaysia offset challenges in the Vietnam market due to credit restrictions in the latter part of the year.
  • Singapore Marketplaces revenue increased 15% to S$19 million in the fourth quarter as compared to the previous year and increased 24% to $69 million year over year as a result of both increased Average Revenue Per Agent (“ARPA”) and an increase in overall agents. Quarterly ARPA was up 20% in the fourth quarter to S$1,076 as compared to the previous year and up 24% year over year to S$4,078 in 2022. In the fourth quarter, there were 15,529 agents with a renewal rate of 79% in the quarter.
  • Malaysia Marketplaces revenue increased 28% to S$8 million in the fourth quarter as compared to the previous year and increased 77% to $25 million year over year, as the Company continues to leverage our two market leading brands and benefit from the acquisition of the iProperty business in August 2021.
  • Vietnam Marketplaces revenue decreased 7% to S$6 million in the fourth quarter as compared to the previous year and increased 28% to S$24 million year over year, as governmental actions to tighten credit impacted the overall number of listings in the market. The number of listings was down 22% to 1.6 million in the fourth quarter as compared to the prior year quarter. The average revenue per listing (“ARPL”) was up 22% to S$3.25 in the fourth quarter as compared to the prior year quarter and up 8% to S$2.97 year over year.
• At year-end, cash and cash equivalents was S$309 million.

Information regarding our operating segments is presented below.

			For the Three Months Ended December 31
			2022				2021						YoY Growth
			(S$ in thousands except percentages)
Revenue			40,097				34,329						16.8%
Marketplaces			38,350				33,299						15.2%
	Singapore		18,805				16,382						14.8%
	Vietnam		5,870				6,304						-6.9%
	Malaysia		7,531				5,888						27.9%
	Other Asia		6,144				4,725						30.0%
Fintech and data services			1,747				1,030						69.6%
Adjusted EBITDA			4,829				(4,149)
Marketplaces			18,240				6,321
	Singapore		11,441				6,709
	Vietnam		722				655
	Malaysia		3,429				(2,026)
	Other Asia		2,648				983
Fintech and data services			(1,981)				(1,546)
Corporate*			(11,430)				(8,924)
Adjusted EBITDA Margin (%)			12.0%				-12.1%
Marketplaces			47.6%				19.0%
	Singapore		60.8%				41.0%
	Vietnam		12.3%				10.4%
	Malaysia		45.5%				-34.4%
	Other Asia		43.1%				20.8%
Fintech and data services			-113.4%				-150.1%
				For the Twelve Months Ended December 31
				2022				2021						YoY Growth
				(S$ in thousands except percentages)
Revenue				135,925				100,711						35.0%
Marketplaces				130,861				97,334						34.4%
Singapore				69,241				55,891						23.9%
Vietnam				24,040				18,767						28.1%
Malaysia				25,388				14,315						77.4%
Other Asia				12,192				8,361						45.8%
Fintech and data services				5,064				3,377						50.0%
Adjusted EBITDA				14,466				(10,372)
Marketplaces				63,045				23,746
Singapore				47,626				33,355
Vietnam				5,470				2,063
Malaysia				10,208				(10,440)
Other Asia				(259)				(1,232)
Fintech and data services				(7,385)				(4,634)
Corporate*				(41,194)				(29,484)
Adjusted EBITDA Margin (%)				10.6%				-10.3%
Marketplaces				48.2%				24.4%
Singapore				68.8%				59.7%
Vietnam				22.8%				11.0%
Malaysia				40.2%				-72.9%
Other Asia				-2.1%				-14.7%
Fintech and data services				-145.8%				-137.2%
*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. Certain elements of marketing expenses previously allocated to Corporate in the first quarter 2022 have since been moved to business segments in line with changes to internal reporting lines.

Strong Category Leadership Drives Long-Term Growth Opportunities

As of December 31,2022, PropertyGuru continued its Engagement Market Share¹ leadership in Singapore, Vietnam, Malaysia, and Thailand.

Singapore: 81 % – 5.2x the closest peer		Thailand: 58% – 2.5x the closest peer
Vietnam: 75% – 3.1x the closest peer		Indonesia: 22% – 0.3x the closest peer
Malaysia: 93% – 15.2x the closest peer

Full Year 2023 Outlook

The Company anticipates full year 2023 revenues of between S$160 million and S$170 million and Adjusted EBITDA of between S$11 million and S$15 million. In the near-term, the integration and scaling of the Sendhelper acquisition is expected to negatively impact profitability by S$3 million to S$4 million in 2023. Beginning in the first quarter of 2023, the Company will no longer remove the ongoing cost of being a listed entity when calculating Adjusted EBITDA. For 2023, the Company anticipates that such costs will be between S$11 million to S$12 million. For 2022, such costs were S$11 million, and on this basis the Company’s full year 2022 Adjusted EBITDA would be S$3 million.

The following short-term factors may continue to impact the Company’s operations and warrant a conservative outlook in 2023: actions by the government of Vietnam to rein in the availability of consumer credit, residual political uncertainty in Malaysia, tightened residential policies in Singapore, 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, March 1, 2023, at 8:00 a.m. Eastern Standard Time / 9:00 p.m. Singapore Standard Time to discuss the Company’s financial results and outlook. The PropertyGuru (NYSE: PGRU) Q4 2022 Earnings call can be accessed by registering at:

https://propertyguru.zoom.us/webinar/register/WN_KYdeZj7TQzW-8UifD2sWAQ

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 leading1PropTech company, and the preferred destination for over 41 million property seekers⁵ to connect with more than 63,000 agents⁶ monthly to find their dream home. PropertyGuru empowers property seekers with more than 3.2 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 of leading property marketplaces across its core markets; award-winning mobile apps; mortgage marketplace, PropertyGuru Finance; and a host of enterprise solutions now under PropertyGuru For Business, including a high-quality developer sales enablement platform, FastKey, 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 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 loss for year/period adjusted for changes in fair value of preferred shares, warrant liability and embedded derivatives, finance costs, depreciation and amortization expense, tax expenses or credits, impairments when the impairment is the result of an isolated, non-recurring events, share grant and option expenses, loss on disposal of plant and equipment and intangible assets, currency translation loss, business acquisition transaction and integration costs, legal and professional expenses incurred for IPO, share listing expenses and on-going costs of a listed entity. 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:

	For the Three Months Ended December 31,
	2022		2021
	(S$ in thousands)
Net loss	(5,251)		(27,225)
Adjustments:
Changes in fair value of preferred shares, warrant liability and embedded derivatives	(650)		–
Finance (income)/costs – net	(1,090)		496
Depreciation and amortisation expense	5,425		5,169
Share grant and option expenses	1,091		6,759
Other losses – net	5		153
Business acquisition transaction and integration cost	747		7,031
Legal and professional fees incurred for IPO	–		3,818
On-going cost of a listed entity	4,035		–
Tax expense/(credit)	517		(350)
Adjusted EBITDA	4,829		(4,149)
	For the Twelve Months Ended December 31,
	2022		2021
	(S$ in thousands)
Net loss	(129,220)		(187,413)
Adjustments:
Changes in fair value of preferred shares, warrant liability and
embedded derivatives	(23,341)		124,146
Finance costs – net	680		13,453
Depreciation and amortisation expense	21,172		14,032
Impairment	–		8
Share grant and option expenses	5,524		10,470
Other losses – net	1,471		815
Business acquisition transaction and integration cost	4,378		8,380
Legal and professional fees incurred for IPO	16,570		6,070
Share listing expense	104,950		–
On-going cost of a listed entity	11,182		–
Tax expense/(credit)	1,100		(333)
Adjusted EBITDA	14,466		(10,372)

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; the war in Ukraine and escalating geopolitical tensions as a result of Russia’s invasion of Ukraine; 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; 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 December 31,						For the Twelve Months Ended December 31,
	2022			2021			2022		2021
	(S$ in thousands, except share and per share data)
Revenue	40,097			34,329			135,925		100,711
Other income	1,334			285			2,787		1,723
Other gains/(losses) – net	644			(153)			21,870		(124,961)
Expenses
Venue costs	(3,382)			(3,323)			(6,864)		(5,859)
Sales and marketing cost	(5,581)			(7,986)			(20,955)		(26,297)
Sales commission	(2,694)			(2,862)			(11,163)		(7,880)
Impairment loss on financial assets	(1,263)			(2,186)			(1,180)		(2,138)
Depreciation and amortisation	(5,425)			(5,169)			(21,172)		(14,032)
Impairment of intangible assets	–			–			–		(8)
IT and Internet expenses	(3,191)			(2,246)			(11,313)		(7,882)
Legal and professional	(3,003)			(7,810)			(7,596)		(9,807)
Employee compensation	(16,558)			(22,650)			(69,977)		(65,184)
Non-executive directors’ remuneration	(303)			(2,067)			(2,356)		(2,503)
Staff cost	(745)			(648)			(2,166)		(1,290)
Office rental	(19)			(34)			(71)		(91)
Finance cost	(145)			(603)			(2,396)		(13,909)
Legal and professional fees incurred for IPO	–			(3,818)			(16,570)		(6,070)
Share listing expense	–			–			(104,950)		–
Other expenses	(4,500)			(634)			(9,973)		(2,269)
Total expenses	(46,809)			(62,036)			(288,702)		(165,219)
Loss before income tax	(4,734)			(27,575)			(128,120)		(187,746)
Tax (expenses)/credit	(517)			350			(1,100)		333
Net loss for the period	(5,251)			(27,225)			(129,220)		(187,413)
Other comprehensive (loss)/income:
Items that may be reclassified subsequently to profit or loss:
Currency translation differences arising from consolidation	(29,615)			542			(19,703)		5,672
Actuarial loss from post-employment benefits obligation	(13)			(36)			(15)		(36)
Other comprehensive (loss)/income for the period, net of tax	(29,628)			506			(19,718)		5,636
Total comprehensive loss for the period	(34,879)			(26,719)			(148,938)		(181,777)
Loss per share for loss attributable to equity holders of the Company
Basic and diluted loss per share for the period	(0.03)			(0.21)			(0.84)		(2.03)
PROPERTYGURU GROUP LIMITED AND ITS SUBSIDIARIES
UNAUDITED CONDSOLIDATED BALANCE SHEETS
			As of December 31, 2022			As of December 31, 2021
			(S$ in thousands)
ASSETS
Current assets
Cash and cash equivalents			309,233			70,236
Trade and other receivables			18,145			17,655
			327,378			87,891
Non-current assets
Trade and other receivables			4,559			1,564
Intangible assets			393,450			401,157
Plant and equipment			2,535			3,329
Right-of-use assets			11,475			15,419
			412,019			421,469
Total assets			739,397			509,360
LIABILITIES
Current liabilities
Trade and other payables			29,737			32,921
Lease liabilities			4,104			4,439
Borrowings			–			170
Deferred revenue			50,753			47,318
Provisions for reinstatement cost			280			36
Current income tax liabilities			4,302			4,554
			89,176			89,438
Non-current liabilities
Trade and other payables			296			603
Lease liabilities			8,339			12,452
Borrowings			–			16,732
Deferred income tax liabilities			1,879			2,375
Provisions for reinstatement cost			672			569
Warrant liabilities			4,775			–
			15,961			32,731
Total liabilities			105,137			122,169
Net assets			634,260			387,191
SHAREHOLDERS’ EQUITY
Capital and reserves attributable to equity holders of the Group
Share capital			1,081,320			684,347
Share reserve			17,692			18,658
Capital reserve			785			785
Warrant reserve			–			5,742
Translation reserve			(16,961)			2,742
Accumulated losses			(448,576)			(325,083)
Total shareholders’ equity			634,260			387,191

Contacts

Media
PropertyGuru Group
Sheena Chopra

+65 9247 5651

sheena@propertyguru.com.sg

Investor
PropertyGuru Group
Nat Otis

(860) 906-7860

natotis@propertyguru.com

The Blueshirt Group
Gary Dvorchak

pgru@blueshirtgroup.com

Read full story here