By Sharen Kaur - August 25, 2023
KUALA LUMPUR: PropertyGuru Group Ltd expects its revenue to range between S$160 million and S$170 million in the fiscal year 2023.
Its adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) will be in the S$11 million to S$15 million range.
"Although due to the ongoing situation in Vietnam, we now believe revenues will be at the bottom end of the range.
"We still anticipate that conditions in Vietnam will begin to improve in the latter stages of the year," said its chief executive officer and managing director Hari V. Krishnan.
He said the government of Vietnam's intervention in the property market, residual political uncertainty in Malaysia, tightened residential policies in Singapore, a lack of clarity in global fiscal policy as a result of rising interest rates, greater inflationary pressures, and global supply chain issues are all short-term factors that may continue to impact its operations and warrant a cautious outlook in 2023.
Longer term, the company remains confident in its growth trajectory, prospects for improving profitability and the underlying opportunity that exists in our key markets, he said in a statement.
PropertyGuru reported revenue of S$37 million in the second quarter of 2023 (Q2 2023), a 12 per cent increase year-on-year.
However, it had a financial loss of S$6 million in Q2 2023, compared to a net profit of S$4 million in Q2 2022.
Adjusted Ebitda was positive in the quarter under review, at S$5 million, compared to S$0.3 million in Q2 2022, as the company benefited from both solid operating leverage and expense control.
Krishnan said the company produced a good quarter of double-digit revenue growth and a double-digit adjusted Ebitda margin, despite the Southeast Asian economy grappling with inflation and rising interest rates.
"This was the result of focused investments and execution despite ongoing macro challenges in Vietnam, where last year's government interventions in the property market continue to impact consumer sentiment and transaction volumes.
"Our focus on leveraging generative AI (artificial intelligence) has bolstered our market-leading products while driving improvements in code quality and engineering productivity," he said.
PropertyGuru chief financial officer Joe Dische said in the second quarter, the company's overall business performed well even as it managed through a slower than expected recovery in Vietnam.
Excluding Vietnam, revenues grew by a solid 22 per cent, he said.
"We have seen some recent positive signs from Vietnam, as the government has begun lowering interest rates and is working to improve the accessibility of credit for both consumers and developers," he said.
Dische said despite the current macro-economic conditions in Southeast Asia, the firm remains focused on delivering sustained, profitable growth as it leverages its market-leading solutions
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