PropTech Group Shows Impressive Growth in Q1 Figures

The ASX-listed property technology group The PropTech Group has released figures for Q1 of its FY22 operations. Headline figures from the report include:

• Cash receipts from customers of A$5 million, up 99% year-on-year.
• Market share of agencies in Australia and New Zealand paying for at least one PropTech group product up to 41% from 34% at the end of the last quarter.
•  Annual recurring revenue of A$16.3 million, up from A$12.4 million in the last quarter.

Co-founded by Australian industry figure Simon Baker in 2006 under the name Real Estate Investar, the newly formed PropTech Group relisted on the Australian Stock Exchange in October last year after buying out leading sales CRM products MyDesktop and VaultRE.

The latest quarter represents strong growth for a company that now accounts for an estimated 2+% of all Australian and New Zealand agency spending on SAAS subscriptions.

"Our focus is firmly on delivering strong organic growth with our SAAS products being just one area of growth for us." said Group CEO and MD Joe Hanna.

"Our merger, acquisition and partnerships strategy is designed to increase market share, expand our range of products, open new markets, and increase our share of agency spend. We continue to look for partners that can rapidly scale into market leaders by combining their products with our large customer base."

The company now offers a broad range of solutions for agencies in Australia and New Zealand and added Eagle Software CRM to the group in July. The first quarter of the Australian financial calendar also saw the firm enter into a joint venture agreement with three other companies to launch BNPL marketing products under the name PropPay.

Speaking of the possibilities that the new joint venture presents, Hanna said:

"PropPay is an example of the many opportunities open to us due to our deep integration into the real estate agent's workflow. In its first stage, PropPay will help vendors fund their property marketing and enable agents to obtain early access to their commissions, addressable markets worth a combined estimated A$16 billion every year."

Shares in the company were up over 14% on the day to A$0.68 at the time of writing as the Australian stock market reacted to the positive news.