Earnings call transcript Q4 2022

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Operator

So we get started.

So thank you everyone for standing by and welcome to PropertyGuru Group Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Now let me introduce Mr. Nat Otis, VP of Investor Relations. Mr. ahead. go please Otis,

Nat Otis

to fourth Welcome conference XXXX call. PropertyGuru evening. quarter Group’s earnings Good

today CEO Hari and the are On call Krishnan, CFO. Joe and Dische, Director Managing

Before reminders. a we get started few

are of our can results Firstly, release website. in the section in that all Investor be available found earnings

be website. webcast also being transcript is investor the today’s Replay along in Secondly, a section with recorded. will available of our

results regarding for forward-looking cause will including materially. but uncertainties The statements be the for earnings to our expectations and making and statements refer in neither Please guarantees our we actual nor results more SEC Thirdly, limited future risks factors. vary promises and filings are business. regarding not information release to results involve to may that risk

and expectations Please IFRS the as financial contain of current on measures company them not non-IFRS reconciliation the to call based comparable earnings are by financial most statements required metric. will obliged press except non-IFRS release. see to Fourthly, our update law. this also for is measures Forward-looking directly

dollar are Dollars Singapore references in unless stated. otherwise all Lastly,

let Hari. call me the over turn to that With

Hari Krishnan

joining to all customers. by to and the policy for Exchange well March, everyone year conditions. was for XX% as grew helped test continues gurus Hard said and PropertyGuru market fourth by as year historic were product our acquisition positive. integration continued for listed and exciting the pricing That of today of conference adoption, challenging our fiscal Stock increased call. you, Thank EBITDA improved work XXXX the uncertainty quarter adjusted offset macro all XXXX an iProperty an we as robust a for New and our York on earnings us revenues in the full

help float. advantage be landscapes market, ship up pent Given there the take set to as and them this current reality demand when them up to PropertyGuru navigate will well begins as to

XXXX, economic prospects runway the markets and that outperformance We markets now headwinds term underlying XXXX, Asian global is to X.X%. largely to the longer are Southeast changed. grow to International growth have Economic Asia anticipated believe and not in decelerate Fund’s X.X% Outlook the for at In temporary as World January core projected in are even Southeast our face Monetary

the an growth X.X% Vietnam, projected outlook, IMF XXXX. healthier even For has with in

While higher the still property and premium uneven market strong was by outperformance government marketplaces strength quarter, where across in borrowing increased measures. PropertyGuru segment. property for activity its products delivered pricing costs seekers fourth than implemented and Singapore’s offset of more adoption market results Led cooling

elections uncertainty costs November pricing borrowing impacted Malaysia, in just in sales like national the higher In remained while activity, around property and resilient. Singapore,

PropertyGuru saw In to the integration. one leverage manage busy operating of out drop help debt search, government make is fourth and levels a in iProperty credit solutions resulting we property QX as the from Vietnam, listings. find, quarter addition, In customers continue tightening to the to easier it that Overall, rent the theme continued roll people experienced and us for properties. for buy our strong

critical the business, as unified PropertyGuru allowing trusted cohesive gives a by accessing maximize offering more service customers experience. significant DataSense, presented In needed the giving December, Asian opportunities a our Southeast customers source and our Markets. data launched FastKey single for for offerings customer enterprise for and businesses for Property tools marketing ValueNet PropertyGuru we to the a

trust for had available markets. many now paying available Our and in Malaysia. it We of but drive launched on been our products which all exciting greater solves markets. high only Previously, our transparency both demand, and market in customers marketplaces, in intelligence platform trust DataSense to is our had that low

a all of Turbo discretionary and new increase top in in listings It their differentiate Turbo, about late exposure their used Singapore, and new half XXXX themselves one and in products pleased Turbo so with allows early our far, Thanks Malaysia agents launched me Featured products. active and to and in hot Singapore of rates average in grow. having per it. agents Malaysia Let Boost XXXX adoption and ago discretionary with to of all Agent, talking start like a agent revenue other we year basic on agent are of PropertyGuru’s active by third agents subscription. add continues to of

performance and product quarter, in seekers who based helps In in listings agents listings that for but early more not find a looking expected launched iProperty the listings and dynamic exactly we to their reached in on Malaysia, promoted win-win our one using technology, are markets Malaysia. PropertyGuru the milestone interface. is XXXX. releases agent platform the In ad consumer. Singapore Promoted that we Agents with in A property cross fourth new similar post a either helps properties. software are able matching of both integration now

now agent can a both platforms an So subscribes both who platforms one post to listing seamlessly. on or

professionalize wide. technology help products, customers market the office that property supports In start in is Verified India our Listings they agent capabilities give of Verified of trust. inaugurated Verified help In challenge Agents. market Verified confidence India. product the listings. we combat launched QX, general in agent is centre we premium space partners can new group us Agents help trying in to greater first Vietnam and our Listings the and our fake technology seekers Thailand, of Thailand, find also and the to and two excellence

and new consistent communities see about and thrive to October live, ability help work discussed this as the our Sendhelper base. earnings we as with its to of excited in is tomorrow’s cities. value current home to our property customer which added and our homeowners grew on services our acquisition connect providers, Lastly, vision bringing we statement, with verified We prior acquisition to are tenants call,

other result deliver temporary be XXXX exercising and up, things to operated markets, quarter this wrap headwinds a overall. And expense our short, strong while we To In Singapore are resiliently we pleased with in with through management. continues macro growth to prudent performer.

provider developers and agents, Asian positioned go-to in for property be well XXXX Southeast We seekers beyond. are to continue the and technology to

Let over to Joe the me now turn financial review our performance. call to

Joe Dische

results. with the quarter Thanks, Hari. revenues of a with PropertyGuru the were same capped for of was Its in appropriate quarter XX% same combined S$XX XXXX. full period S$X quarter S$X million the period in off fourth million from up growth solid revenue in the as million, up another EBITDA Adjusted XXXX management. cost XXXX, we

of incremental from year adjusted million adjusted almost of XXXX in point the and S$XXX out I that the S$XXX at full in loss million from S$XX the a leverage revenue a XXXX million would new XX% XXXX previous For we illustrating revenues was have million, business. an XX% up of EBITDA of S$XX in year. operating XXXX. through The to our had margin EBITDA of drop in

XX,XXX QX In million S$XX EBITDA Turning to detail, more of Singapore, our per margin XX% grew quarter with quarter XX%, the XX% to quarter adjusted agent our of over was renewal again revenues to agents ARPA and year-on-year marketplaces quarter; our fourth of this customer from XX% last pool year. XX% the up average was in XXXX. in rate jumped were fourth our in revenue the and

million in both or quarter Singapore adjusted were the was the or As S$XX XX% million up S$XX increase and revenues ARPA and margin. in a XX% EBITDA result of agents,

from XX% leverage adjusted period. prior and This revenue that to the in S$X quarter, a increase S$X integration S$X adjusted EBITDA. from an the in up million, tremendous year iProperty from S$X.X Malaysia, same quarter to over almost as our increased increase of produced Turning negative were illustrates EBITDA S$X a the the revenues million million a under million positive million

for the down were X% into fourth revenues Turning Vietnam, XXXX. quarter

in As number the of the efforts drop credit of availability XX% listings. government’s limit to to a the led

continues both revenue attempts inflation, increase listing While helped premium the listing average be to per business or our encouraged by ARPL which impacted increased to government by we duration, and penetration XX%. product slow are

In revenues XX.X% margin our addition, improve through to dropped points even basis adjusted in XXX leverage X%. as XX.X, operating expanded EBITDA

revenue fin-tech XX% year-on-year, data up services million. S$X combined adjusted EBITDA Finally, loss a was and was

We about long-term opportunity are both businesses. in excited the

Moving This from due deployable level us quarter S$XXX million to down opportunities flexibility quarter the and as acquisition gives of changes of our cash Forex they ended capital U.S. take the in with sheet, to advantage the deposits. dollar to last balance primarily to comfort we arise.

in release, an of Because million. revenue to of market outlook of million take of with view this, more the near-term. between related mentioned a we range are Vietnam, a especially our range cautious the Malaysia result a S$XXX press the is you in S$XX S$XX and to XXXX to million uncertainty, economic of S$XXX million adjusted As introducing and EBITDA

points the data adjusted through spectrum A of EBITDA. important couple

EBITDA acquisition are we see and the in on while with scaling weigh will to Sendhelper S$X in by XXXX, opportunity, million. we very S$X million Firstly, long-term efforts the integration adjusted pleased

of no between and and adjusted in being of to a Secondly, XXXX. removed going forward, anticipated the from million calculation listed longer S$XX will be ongoing our are be entity S$XX million cost EBITDA,

see Let challenging me our we revert our confidence in and finish both growth opportunities markets underscoring by positive trends. now future, to the operations when the in uncertain in more core conditions and

market We strategic maximize are efficiency cost additional technologies prudent ability new and by excited defining automation add develop greater our resources M&A, and to through through internal management.

company. past oversight with their note, ongoing effort to the I results, personal year. that our changeable so a want of Not for a market our being complex to added and doing their with gurus over conditions comes complexity and just traded publicly tremendous through On huge level managing the but support for deliver thank for customers and

turn I for will ready call our for the over are Now, question. we Operator, questions. first

Operator

are you, start Fawne you’re with Jiang. Thank going Fawne, Instructions] Alright. [Operator Joe. live. to We on

Fawne Jiang

for Hey, Joe. Thanks taking Hi, my Hari. Yes. question.

also outlook. First, XXXX strong congrats very I on – quarter. very And healthy a think solid

think moving remark, are the covering now. some mentioned you opening You I in there some of your, region regard in right are parts

probably on current the But think course, wondering of additional predict. further puts to rest guidance, you hard up will may you the which downside? us also – expect your what most potential market likely color, or are is what it is Just year? takes could regard observed? I and And in have the And shaping you upside of surprise give the to situation in how do the the the

Hari Krishnan

Thanks sort I Fawne. get Joe for in let started your ask to chime me question, after. of and I thank, will

part of first openness the your at our answering different I stages to of are question, think markets regards property the sector. So with

and They is done I even XXXX really transaction think, Singapore volumes prices it see are Even into significantly property mentioned we I though ‘XX. well. well. down, through holding very appreciate that

at projecting that least up well. pretty hold will are they We

We come are more-and-more online. supply seeing

of you think are stability supplies like prices terms and price demand if and are online, of supply, it, So if drive that to starts we and though high you that holding. extremely coming the in about even dynamics seeing demand still projecting you

in of So a Singapore. gives sense the you that size the of demand

have Singapore per we I the agent lot good of average So very ARPA space, a agents revenue like think a in well. it grew still looks marketplace;

you look other any markets, policy some definitely When decision healthy. So, not a the that challenges I very at of particular have the like think Vietnam, that it’s sure the that government looks from country in have in other particular markets the make to had. of China does

they some of optimistic do they remain some that, the that defaults. And a open any to and of want so HX, talk point in get sure developers start very all drag don’t a will GDP. we that indebtedness even of know said to material fact make have And household have it control. at levels it And they up little bit. is been beginning don’t out indications about Having don’t vocal the open consumers that

sector. making trying just So, about looks and more we Chinese demand market Year, in to sure Malaysia, And the than rather we are have New finished do the good. supply that it’s the managed, kill believe

position put the and in election market to bed sort been has very QX. strong, obviously Our is of

year. to And looking up join business are forward well for maybe, we this and doing starting guidelines. So, Joe, really

Fawne Jiang

Thanks Hari. helpful. That’s very

your Sendhelper Second very regarding your incremental question actually is you single to purposes. acquisition, since like

XXXX? wonder, revenue Just any bottom timeline of expect this or your financial now, you forward? where down expect on we the business do profitability road? to cost in going line, side for do right top And the is and potential side What the or on for synergy is business terms impact where breakeven line the the potential

Joe Dische

question. for Thanks

here, the EBITDA next adjusted of on sort some impact have terms financials, in our the of we for this Just of disclosed the year. year for

a of segments. as fin-tech it’s rolled Just reference, up our point into DSS and

or individually, guidance. that splitting be won’t we individual any giving So,

there are in I we we really and excited. start say business. to start scale and some is, definitely very a startup integrate as are phase. it’s are will of think sort Hence, we small the But to losses we investment what really

the As mentioned, business you across on came before our because were they we side. advertising

some had well obviously, that good So there high sort intent is of traffic that them. for converted we

cross we the or also to things somebody the have the But refer has useful, adds from our are looking how traffic to will one engage make obviously we can back purchase They cost will is a use in us, it’s that ecosystem. that marketing very think vice they I and lower away business then they more to of also we every doing completed versa, Sendhelper and it often of Sendhelper, site, So, audience drift rental, the do successful. that once day. can we to don’t need which again, refer ultimately

very So, there is between And opportunity those businesses. good definitely we of are in some sort excited about two very linkages the future. the

Fawne Jiang

quick any targets, XXXX? plans, have think you a there, in I And mind M&A, follow-up just guys for

Hari Krishnan

ourselves. fair a generated good region this we a about nothing there been to going that open transaction have of at approached disclose things of in And process attention one that a listing for are self-study I businesses But no that focus is definitely And the of Yes. moment. to through us. amount the have think was the

We been proud. have also

been been on M&A and We integration have also – in investing team, as probably fully now setup. And also that’s well. team

got an work organization thing have we the learned internally, is bandwidth do this to quite M&A have transactions. on to able we can integrate. it to affect to be kind right draining One be that, of and also So,

transactions teams, make have we should keep able the them now business these and and running we efficiently. to So, well separate got integrate and the be

we So, and data home interested We are services. in I placed. think in fin-tech really remain well

for we systems. developer acquisition obviously operating center We are made the and

have few things a exciting areas definitely same. the looking are And got interest So, at that we we remain our moment. the

Fawne Jiang

again. queue. I Understood. go Thanks congrats much to will and so back the

Hari Krishnan

you. Thank

Operator

Fawne. Cheung. The to Thank you, be going Okay. next is question Nelson

Nelson Cheung

solid the My is Thanks first Hi, result. management. follow-up question regarding on very congrats revenue question questions for taking guidance. my and your quarterly a

in you. resource, given markets in in year? how manage management And should this different the Vietnam, in wonder in ‘XX. your strategic headwinds priority prioritize your Thank Just how market our allocation investment we this interested ongoing

Hari Krishnan

Thank you, Joe started something Nelson. if can again, miss Maybe and I I jump in. will get

with very still I So, Malaysia, remains marketplaces much it our segments. to to regards markets, regards with Singapore, think our priority Vietnam

new are in very so of remarks, As is strong, still I have investing. the products mentioned Singapore some my I still mentioned we we launched.

are in things market, them one and board, of across Some only etcetera. sponsored not like listings, the

and some lot investment well, we of think products I going is and as product So, monetizing and Malaysia be business Singapore, good there of to our PropertyGuru with to continue particularly as well do technology enterprise a in of a see very Malaysia.

market And are very Specific so we still we are looking for that up. as opens on what the there. the to bullish are prospects Vietnam,

partners Our Asian high. and demand very [indiscernible] on definitely remains the

to get hopeful, that clear there indebtedness. started we is around will that expect or don’t in rather we trying understand We optimistic building very QX, So, obviously The policies make they from that out. but get research, and should clarity still getting QX, are on say in government I the clarity ready, much though, I this. people sure is think the to key thing doing

if So, strong. is a Vietnam, are businesses we and low bullish. would emerging am to HX coming for it’s And looking continue But be being data slower I fin-tech say Singapore very to base, a also I our I off honest. think services be but going like

Nelson Cheung

about you. are the we it? question fourth more quarter, very referring elaborate data and on monetization Thank since XXXX? And growth growth your saw solid is prospects can going what second management And services regarding fin-tech in driver you the into my business, to

Hari Krishnan

fin-tech trying model of it of when different a these Yes, younger comes well things. lot as to I acquiring We experiments, both are think services, customers, the data but and business businesses. definitely run as

into I much wouldn’t so quarter-on-quarter read variances. And too

QX Malaysia, they down the services, in slowed slowdowns in for because national particular significantly, data of in I think had November. definitely elections some

the wasn’t And so at I of really actually mean full entire most swing. sector, economy the

the and lot And volumes other quite little remarks, off from of bit, so Singapore transaction rates Q&A, as in dropped fin-tech, that as And that regards revenue my isn’t entirely such. bit or surprising, a mentioned a to a with rose the interest the through opening year, data services, comes again I rather, the country. in in

at markets we product two see good suite – is extremely those are, volumes continue because really these But transaction market we where they adjacencies. Singapore, It’s market like as markets these like. just grow to as stress for as that I are drop, and marketplaces you entire share, a are we gaining other obviously, we But fast have I in not don’t Vietnam, nailed. still so perhaps product the out little no – bit or fit think still slowdown there. other of And will a businesses would not rolled would quite in Malaysia, there

are expect a little can you still and variance. innovating bit We of

Nelson Cheung

you. wonder, year? cost more optimization optimization see. we strategy control last my And management, on this just year regarding cost this if I or in as should cost Thank elaborate and question which greater could in reduction your you is component expect

Joe Dische

Yes. are still you. Look, mean And investing are focused Thank in a we business. on growth our company. I we

really us. it’s important sort is for the focus of think I thing So, most

So, we the the this haven’t want where looked necessarily really like right our made optimized and invest through of have a products where definitely some decisions hardest. way where that cycle process we planning of been to have We been have sort definitely year, sort forward. we our through we spend, of

that’s So, really the we have really and focused ourselves key.

still and effectively with And continued customers can we markets. So, we business services. the products we in our services. possibly our invest Things intend in to as new new stand service those don’t in products to as and

to definitely side, optimize. to it marketing look the On we

strong shut we We search. spend much as have to SEO don’t quite strict SEO need that positions, search, on

think we business. the service of where people broader we in I generally And selective in been hiring side, optimizing on to of needs that are very been of to We order sort have front. more have terms on the

the Looking of the some of backwards the sort to I the business challenges revenue we that of way proud year, am at end had. responded the really last of

strong from end about. we see really results, spend we the of really the EBITDA very effectively are year, which optimized the can pleased You of back really and efficiently sort in all

that continue will selected process We through XXXX.

Nelson Cheung

you. That’s queue. Thank the Thanks Thank helpful. I very you. back go Joe. will Hari and to

Operator

is ahead. Go [Operator next questioner Instructions] Our [indiscernible].

Unidentified Analyst

Hi follow-up Hari. have I a as Hari. guys? Congrats business. you Hi strong for Joe. just Thanks quarter. are one question short PropertyGuru another for How

impact business do moving see see words, other the your further So, that like, just regarding forward meaningful PropertyGuru do you segregated PropertyGuru as website, consumer since impact to side? business main you meaningful from well side the from ask site? business In – from you wanted any from you any services there expectations as separating any is for from Thanks. or from

Hari Krishnan

No, thank I an at that in for umbrella that a PropertyGuru my overarching mentioned you look remarks. solutions, question. covers business, it’s variety of which for brand We opening

of part to So, you FastKey able are coherent and marketplaces by value services unit. which is here got is everything DataSense all data give marketing point that and to you But our more a as our cohesive service, we a The solution our from also net, have offered which are and unit. really enterprise clients.

you the for you our the the etcetera, to to about of conducting around in from look and form or well for really business. We coherent developers, some their dashboard real comes a if to powerful, of of of workflow the are it core markets valuers pretty it go because data estate they understand So, see automation efficiency right your a at bank real when high access manner, look solve is is to world, solutions at critical, all planner, able urban estate estate to a real as how sort in you developer, very everyone as of if developed as software, or are problem quality it. set more what’s an sort

a are We like find continue in helping allow here And our also have data through it’s around obviously there, we are good their now our even see home. that. increasingly, are our what’s we better dissonance of in that answered from pretty fact been consumer infrastructure, demand XX around fin-tech there. finance out don’t sense what of which like we to years, helping disconnect marketplace, question. really enterprise But XX are impact Having customers. people services good can clients. with confident enterprise to And terms the very But marketplaces our groups. no between business, coming home and these But with people I And manage is increasingly, which started a we problems the PropertyGuru the of the have there also Sendhelper. we think any that I we Hopefully, we in expanded the and oriented really their own. think the some market interacting years, division clients offerings to their now our in how things by things of with getting helping pursuit we world is that faced the are

Unidentified Analyst

Yes. That’s very helpful. you. Thank

Hari Krishnan

Thanks.

Operator

see don’t questions. We Okay. any Instructions] other [Operator

will we up remarks. the wrap any closing So, to for the will Hari Q&A. call turn I back

Hari Krishnan

in us are you for next reiterate Thank our today. to pleased forward I with XXXX. you I like Thanks much. how quarter. so performance again speaking all joining to would to look we

Operator

Alright. everyone. Thank you

can all You disconnect.

Propertyguru (PGRU) 1 Mar 232022 Q4 Earnings call transcript