- PropertyGuru posted a net loss of 5 million Singapore dollars ($3.7 million) while revenue rose 17% in the fourth quarter of 2022.
- The company cited challenges such as rising interest rates, government credit intervention in Vietnam and remaining political uncertainty in Malaysia.
- “I believe the stock will face some challenges in the short-term, particularly given the slowdown measures being taken by governments across the Southeast Asian region, but I think there will be a major reversal once PropertyGuru starts showing signs of positive net income after tax.” , said Maximilian Koeswoyo, research analyst at Phillip Securities.
Singapore-based online real estate portal PropertyGuru maintains a “conservative outlook for 2023” given the challenges and expects full-year 2023 revenues of between SG$160 and 170 million and adjusted EBITDA of between SG$11 and 15 million.
Wei Leng Tay | Bloomberg | Getty Images
SINGAPORE – Singapore’s online real estate portal PropertyGuru posted a net loss of 5 million Singapore dollars ($3.7 million) in the fourth quarter of 2022.
The loss comes as global interest rates continue to rise and Vietnam, one of its key markets, restricts real estate borrowing.
Net loss for the three months ended December 2022 was SG$5.2 million. That’s almost 30% Improvement from the previous quarter’s net loss of SG$7.4 million.
Net losses for the full year 2022 were SG$129.2 million, up from a net loss of SG$187.4 million in the prior year.
The company has yet to report a full year profit since its inception in 2007. It currently dominates the Southeast Asian market.
“While it’s difficult to say when PropertyGuru will be back in the black in terms of after-tax net income, the 30% improvement in net loss is commendable,” said Maximilian Koeswoyo, research analyst at Phillip Securities.
Meanwhile, fourth-quarter revenue was SG$40 million, up about 17% year over year. Full year sales increased 35% to SG$136 million.
PropertyGuru shares closed up 1.68% on Wednesday.
Macro and fiscal uncertainty continues to test our clients.
Hari Krishnan
CEO, PropertyGuru
“Increased product acceptance, improved pricing and the continued integration of the iProperty acquisition have all helped offset difficult market decisions. However, macro and fiscal uncertainty continues to test our clients,” said Hari Krishnan, CEO and Managing Director of PropertyGuru. during Wednesday’s earnings call.
“We believe the headwinds our core markets are now facing are mostly temporary and the longer-term runway and underlying outlook for Southeast Asia’s economic output have not changed,” Krishnan said.
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Adjusted EBITDA or earnings before interest, taxes, depreciation and amortization for the quarter was a positive SG$5 million compared to an Adjusted EBITDA loss of SG$4 million for the same period in 2021.
Krishnan said higher borrowing costs and uncertainty surrounding Malaysia’s national election in November weighed on sales, while the Singapore market remained resilient. In Vietnam, the government continued tightening credit to control debt, leading to a decline in Property Directory.
After acquiring its Southeast Asian competitors – such as iProperty and brickz in Malaysia, thinkofliving and Prakard.com in Thailand in 2021, and Batdongsan in Vietnam in 2018 – the company remains a dominant player in the region.
“PropertyGuru is definitely still in a growth phase as it’s still actively exploring more merger and acquisition opportunities and focusing on how to offer a more comprehensive service offering on its platform,” Koeswoyo said in an email to CNBC.
“PropertyGuru’s stock has lost about 50% of its value since it was listed in March 2022, and its daily volume is also rather low, so I think the stock hasn’t attracted significant attention from investors,” Koeswoyo said.
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PropertyGuru stock performance
“I believe the stock will face some challenges in the short-term, particularly given the slowdown measures being taken by governments across the Southeast Asian region, but I think there will be a major reversal once PropertyGuru starts showing signs of positive net income after tax.” said Koeswoyo.
PropertyGuru expects the integration and scaling of the Sendhelper acquisition “to negatively impact profitability by SG$3 million to SG$4 million in 2023,” according to the earnings release.
Sendhelper runs an app that offers housekeeping services like cleaning and pest control and was acquired by PropertyGuru last year, marking its entry into the market.
The online property portal maintains a “conservative outlook for 2023” amid the challenges and expects full-year 2023 revenues to be between SG$160-170 million and Adjusted EBITDA to be between SG$11-15 million, the press release said.
PropertyGuru was listed on the New York Stock Exchange on March 18 last year.