Hemnet Q1 2024: Strong Performance Across the Board for Swedish Market Leader

Swedish market leader Hemnet has revealed impressive results for the first three months of 2024, recording healthy double-digit growth YoY across several metrics.

Highlights include:

• Net sales grew 33.3% to SEK 253.4 million (USD 23.3 million)
• Operating profit grew 45.2% to SEK 98.9 million (USD 9.1 million)
• Net profit grew 42.8% to SEK 72.4 million (USD 6.6 million)
• EBITDA increased 37.3% to SEK 119.2 million (USD 10.9 million)
• Average Revenue Per Listing grew 32.5% to SEK 4,911 (USD 450)

CEO Cecilia Beck-Friis, said:

"Hemnet delivered strong results for the first quarter of the year, supported by growing demand for our value-added services for property sellers and an increase in the number of published listings.

"Revenue from property sellers increased by 49.1 percent, and ARPL increased by 32.5 percent. Sales of Hemnet Premium continued to increase and the growing demand led to a more than doubled conversion compared to the same period last year. In addition, the number of published listings increased 11 percent as a result of increased confidence in the housing market.

"During the quarter we have continued to improve the consumer experience on Hemnet, for example by improving our maps, updating app navigation and including energy classification for properties in the result list, nudging our visitors to consider environmental aspects when looking for a new home."

Hemnet continues to drive revenue by optimising the profitability potential of its listings, which has virtually tripled since the Stockholm-based company went public in 2021.

Despite a slight downturn from the final quarter of 2023, the Swedish real estate giant still earned an average of $450 for every listing on its site from January to March 2024:

Online Marketplaces did a deep-dive, two-part interview series with Hemnet CPO Francesca Cortesi in 2023—in no small part to understand the strategic decisions and philosophy that led to its significant ARPL growth over the past three years.

Part one, which you can read here, dives into the strategy and its success, while part two, which you can read here zooms out to look at the European market, emerging technologies, and industry problems.