Southeast Asia’s leading property technology company has reported strong growth in its revenue despite its markets being adversely affected by COVID-19.
PropertyGuru Group has revealed a 17.9% increase in total revenue for the six months ending June 30, 2021, compared with the same period during 2020.
Adjusted EBITDA for the period saw a loss of S$4.8 million (US$3.51 million), reflecting increased investments in people and marketing. Net losses increased to S$150.6 million, primarily due to an accounting fair value loss of S$124.1 million (US$90.96 million) on preference share conversion options, with the rise in valuation of the Group. The Group’s preference shares have since been converted to ordinary shares, and therefore such fair value losses are not expected in future periods.
In Singapore, the company saw its revenue grow by 12.8% to S$25.4 million (US$18.62 million), with ‘Average Revenue Per Agent’ of S$1,539 (US$1,128) and a Singapore Agent subscription renewal rate of 83%, which equates to a 12% year-on-year increase.
In Vietnam, it reported a 29.5% increase in revenue with revenue per listing increasing by 30% year-on-year. Its Malaysia operations saw a 17.4% revenue increase,
The Group also announced it has filed a registration statement with the United States Securities and Exchange Commission in connection with the previously announced business combination between PropertyGuru and Bridgetown 2 Holdings Limited.
Hari V. Krishnan, the Chief Executive Officer and Managing Director of PropertyGuru, said, “Our strong performance in the first half of 2021 demonstrates that our strategy to invest in our markets and teams and expand our products and services is working. Leveraging our integrated and differentiated technology platform, we are confident that we will emerge from the pandemic as the best solution to match property seekers and sellers across the region, which is estimated to become the world’s fourth largest economy in the world by 2030.”
“We are beginning to solidify this position as more home seekers and investors turn to real estate to mitigate short-term economic uncertainties. We believe this, combined with the long-term fundamentals of urbanization, digitalization and a rising middle class fueled by a vibrant pool of increasingly affluent and digital property seekers, will continue to drive the expansion of Southeast Asia’s property market. We are only beginning to scratch the surface of our S$10.9 billion (US$ xx) addressable market.”
Krishnan added that today’s filing also reflects the significant progress in PropertyGuru’s business combination with Bridgetown 2.
“We look forward to completing that process in the first quarter of 2022 and accelerating our journey as a public company,” he concluded.
Joe Dische, Chief Financial Officer, PropertyGuru, said, “Our strong revenue growth in the first half of 2021 represents our ability to effectively navigate an uneven path to recovery from the pandemic.
“Despite challenging market conditions in the third quarter this year, we are forecasting only a slight reduction in our full year 2021 revenue and no change in our full year Adjusted EBITDA against our previous projections. This is a result of our continued investments throughout the pandemic, including our strategic acquisitions to enhance our marketplace positions in Malaysia and Thailand and expand our data analytics capabilities.
He added: “Our resilient business model and ability to leverage technology and data, positions us well to capture the tremendous market opportunities that lie ahead. Our confidence is reflected in our long-term growth outlook beyond 2021, which remains strong.”
Matt Danzeisen, Chairman of Bridgetown 2, said, “Hari and his talented team have built a suite of digital property solutions that continues to stay ahead of the evolving needs of the region’s real estate market. Their innovative platform is reshaping the way millions of people across Southeast Asia think about property. We look forward to completing the transaction, which will provide PropertyGuru with greater financial resources to do what they do best.”