SINGAPORE: PropertyGuru has reported a $1 million net profit for the fourth quarter of 2023 and also disclosed its financial outcomes for the entire year of 2023, highlighting a notable growth despite challenging market circumstances.
Throughout 2023, the total revenue surged by 11%, reaching a substantial S$150 million. The Adjusted EBITDA experienced a remarkable upswing, reaching S$19 million, a substantial increase from the S$3 million recorded in 2022. This surge was due to active cost management, resulting in a 13% adjusted EBITDA margin in 2023, a significant ascent from 2% reported the preceding year.
In the fourth quarter of 2023, the revenue amounted to S$42 million, reflecting a 4% year-over-year increase. The net profit for this quarter reached S$1 million, representing a noteworthy improvement from the net loss of S$5 million in the corresponding period of 2022.
Additionally, the Adjusted EBITDA for Q4 2023 stood at S$9 million, sharply contrasting with the S$0.5 million recorded in the same period the previous year.
Hari V. Krishnan, Chief Executive Officer and Managing Director, attributed the success to the company’s resilience and commitment to profitability amid challenging economic conditions.
He said, “Our 2023 results demonstrate our ability to navigate challenging macro-economic conditions and our commitment to profitability. We delivered double-digit revenue growth and a double-digit Adjusted EBITDA margin for the full year. This is a clear testament to our ability to create value for our customers and help property-seekers achieve their home-ownership goals.”
Despite less than favourable market conditions in Vietnam and Malaysia, Krishnan underlined the company’s focus on optimising costs, adopting internal automation, and investing in transformative technologies like Generative AI.
Addressing proactive changes, Krishnan acknowledged organisational re-architecting as a strategic step towards a sustainable, future-proofed business. He expressed gratitude to impacted team members and outlined the company’s confidence in the long-term economic growth and stability of Southeast Asia.
Joe Dische, Chief Financial Officer, emphasised the successful balance between innovation, investment, and cost management in 2023. With positive inflection points anticipated in Vietnam and Malaysia in 2024, Dische expressed confidence in the company’s ability to improve profitability.
Dische stated, “I am pleased with our results in 2023. We delivered 11% revenue growth and a 13% Adjusted EBITDA margin despite significant macro challenges in two core markets, Vietnam and Malaysia.”
“As we enter 2024 and get closer to positive inflection points in Vietnam and Malaysia, we are encouraged by how successful our internal cost-control, efficiency, and automation efforts were in 2023. We spent the year balancing product innovation and investment with careful cost management and reaped the benefit of these activities throughout the year, particularly in the fourth quarter when our Adjusted EBITDA margin jumped to 22% from 1% in the prior year quarter,” he added.
Net income in Q4 2023 witnessed a distinct improvement, marking the second consecutive quarter of positive net income.
Marketplace Performance:
- Singapore Marketplaces revenue surged by 23% in Q4 2023, reaching S$23 million, contributing to a full-year revenue of S$86 million.
- Malaysia Marketplaces revenue remained flat in Q4 at S$8 million but achieved a 9% YoY increase for the full year, reaching S$28 million.
- Vietnam Marketplaces revenue decreased by 22% in Q4 2023, hitting S$5 million, and contracted by 29% for the full year, reaching S$17 million.
- Fintech & Data services revenue declined by 10% in Q4 but showed a 20% YoY increase for the full year, reaching S$6 million.
As of the quarter-end, PropertyGuru maintained a robust financial position with S$306 million in cash and cash equivalents, setting the stage for continued growth and innovation in 2024. /TISG
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