PropTech Group Shows Strong Growth in Half Year Results

The ASX-listed property technology company, PropTech Group has released a report on its activities for HY1 of the Australian financial year showing strong year-on-year growth. Highlights from the report include:

• Revenue for HY1 2022 was up 98% on HY1 of 2021 at A$9.7 million with annualised recurring revenue up 71%
• The average number of PropTech Group products contracted per customer was up 75% (1.85) with the number of unique customers rising from 3,482 in the first half of 2021 to 5,039.
• The company's gross profit margin was up two percentage points at 92%

The company also announced that it has entered into an agreement to act as a distribution partner for fellow Australian PropTech companies Propps and National Property Data. Essentially PropTech Group will be promoting these companies' services to its clients through its network and could potentially see it earn a significant equity stake in each company.

Commenting on his company's half-yearly performance, PropTech Group CEO & MD, Joe Hanna said:

“We laid the groundwork for future growth with the launch of new products, the  Propps and National Property Data agreements, and investments in R&D and sales  and marketing. We have proven that we can deliver rapid growth to these partners with the record results produced by our prior acquisitions, Website Blue and Eagle.

“We also began delivering two new growth initiatives that leverage our 41 percent  market share in our core business to substantially increase our addressable market.  The first of these strategies is the integration of ancillary services into our core  software, beginning with payments. The second is the pursuit of international  growth in the UK. These initiatives are at early stages but promising. The total  addressable market for ancillary services alone, in Australia and New Zealand, is 13- fold larger than the opportunity in real estate SaaS software.”

The PropTech group is a leading provider of CRM software for agents in its native Australia as well as in New Zealand and The United Kingdom. Since acquiring MyDesktop from Domain and relisting on the ASX in 2020, the company has expanded its suite of products and now offers agents the VaultRE and Eagle CRM systems as well as website development and servicing platform Website Blue, which the company acquired in 2021.

More recently PropTech Group has entered into a joint venture with three payments and financing specialists to develop a BNPL solution for agents to offer their clients for all manner of real estate transactions as well as launching a property management product.