Earnings call transcript Q2 2023

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Operator

Thank you for standing by and welcome to the PropertyGuru Group's Second Quarter 2023 Earnings Conference Call. Currently, all participants are in a listen-only mode.

As a reminder, today's program will be recorded. If anyone objects, please disconnect now. After the prepared remarks, we'll conduct a question-and-answer session using the raise hand function in Zoom. shows and Zoom that ensure your firm. name Please will questions from the Q&A participants take we session, named. In those only who are

me VP Otis, please introduce Relations. let Otis, go of Mr. ahead. Now Investor Nat

Nat Otis

earnings good and PropertyGuru quarter Welcome Good conference morning evening. call. Group's to second XXXX

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

Before started, few reminders. a get we

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

will replay today's available also webcast transcript is with Secondly, of be A the website. along section recorded. Investors in the being our

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

current obligated Fourthly, except the are and company based statements call will not this required on as financial also contain is measures. Forward-looking non-IFRS them expectations, by update to law.

For non-IFRS measures most financial to press you our comparable earnings directly of see release. a the reconciliation

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

Hari. let the turn that, over call With to me

Hari Krishnan

to margin decisions. adjusted that with Vietnam. solutions XXXX good from posted our Thank expanding in despite quarter ongoing today inflation our you making investments earnings execution We've property We're good EBITDA was challenges focused another the and all profitability. for for the standing delivered uncertainty. progress macro conference This of second joining Southeast empower confident PropertyGuru revenue double-digit operational and economy quarter call. with us good growth customers result and growth in in Asian wrestling of double-digit make delivering

property In the with through highlights market in you Singapore, strong bustling a some quarter. walk me growth and sales activity. is Let rental thriving property this from of

persistent rein in rates the the despite remain efforts interest and prices Asking market. strong resilient by rising government to

notable was given sales expected, down durability from the index that was X% in level is only PropertyGuru demand of quarter. decrease some demand While our first the

in private row, GDP XXXX quarter bode first forward. the more fifth both while half construction-related supply the than exceeded X%, XXXX, new growth going for to entering completions which For of compared a market well doubled in of the supply

In increased between prices homebuyers and as buyers and gap Malaysia, the to quarter the rates in their sellers interest transactions. rising delay pushed

the second consumer the price government state half elections we central from year. the first into demand slowed are we not quarter, have while and a as the the in dropped chose GDP June, help Our of XX.X%. index Recent was up stability back reached is quarter, move projected year-long should in rates seeing signs point July. bank increase the index and confidence, low to inflation in while Malaysia's Overall, to X.X% down positive

targeted to In MYR included addition, billion the which support announced recently below Malaysian a in homes the increase Prime $X over country's the plan for growth over Minister homeowners on decade, first-time XXX,XXX. financial next

sentiment of Governmental market interventions challenging. of activities and In XXXX, units remaining have number at aimed despite far regulating up XXX% estate also reported were the of both versus in I commercial and the the half Malaysia second Lastly, residential the elevated. Vietnam, so conditions impacted initially first housing the sales XXXX. in unsold XXXX remain that half real property developers out of would point that consumer units of transaction

of to a growth should longer-term point recovery help return However, a direction monetary in invest anticipation and in easing to to we continue and economic a healthier products infrastructure outlook the recent rates. positive as actively

organization. years townships The quality need and be will Minh remains increasing for Ho City, housing of expansion the in Vietnam most with the built good Hanoi economies in vibrant there middle class in Chi one beyond Southeast being Asia for to and come.

and personalized AI more machine of GuruPicks, generative while a technological bolster the In launched property algorithms. our also efficient. make continue learning, operations we market-leading utilizing to feed machine helping June, we On products listings to our front, on learning based

We property personalized offers and match product type opportunity a to to are person's show budget, location very this and recent the excited about listings.

lead management page, Singapore increasing single properties preferences. ones under better customer index insights we subscribers We to for WhatsApp launched experience also of a of for new development. Homes New agents in a phone, introduced this e-mail, Malaysia quarter, will all In property and the organizing by leads which contacts using while Singapore, lead it on to and both the adding revamp our find their and coverage manage make and easier a Discovery help inbox heat SMS

Generative help code effectively quality. to development in operate AI and efficiently and product us continues more

have been moderation creation AI continue benefit as auto listing agent as that with listing of descriptions well to improve We the efficiency experimenting quality. to image

trust over As home brokered billion a continued in Group had of June end, business our Property and great in placed customers that home for the confidence $X mortgage have growth worth indication of securing financing. of loans,

have progress with convenient traditionally applicants. mobile-friendly making round-the-clock made the in We digitizing and loan process for progress access application also rather, it or good loan manual home

customers is of banks the solution in with of Our major been feedback the Singapore one piloted positive. has and being

smart progressive embrace climate that and into for strategies This insights ESG estate. our financial data software building investors viability. actionable team quarter, compromising gives and framework without solutions real The developers a sustainability property released valuable

For $X markets property analyze like with data recent the and flooding billion risk than where flood more in example, prices. correlation we in Malaysia, losses, caused

of saw broader data dashboard The and that governmental by developers touch Housing on and to market good real report our Singapore Association. is data-driven planners adoption now bodies of I decisions REITs week. part insights and wanted property announced Insights agencies responsible such estate sets activities Developers industry some and to flagship drive region. Malaysia. as This upon strategic in in this new our educating quarter development the we

products, our key. As in of Indonesia out our we letter, sunset SaaS mentioned Fast our and Rooma.com business, one phase will marketplace

us create stakeholders with next prioritize with are focused these will our resources focus decisions maximize strong necessary value deliver relentless the Though phase These our our accordingly. to we driving to of are all down on objective to doubling efforts and and growth for and make of they us reflect the allow sustainable growth unit our for economics. investments decisions tough, businesses that

people have leaving I PropertyGuru, some and We them their wish good success in endeavors. future

growth. and Overall, in this the made and was performance in of quarter inroads further future. focus businesses, increasing leverage which our we we priorities quarter's a by are with operating for deliver optimistic our delighted revenue sharpened Vietnam, about clarifying this Outside some remain and investment

future profitability anchored power the in around to and core our in fundamental markets vision committed live, to cities. believe our in opportunities We to and communities thrive and work are growth tomorrow's

Joe now will over I it to hand walk our financials. through you to

Joe Dische

good of segment we improvements. challenges up revenues challenging last of in delivering quarter leverage businesses despite quarter the macroeconomic quarter was marked quarter up out shows our flourish. demonstrated of year another positive, Hari. with Thanks, also undergoing second of second PropertyGuru was some every What this This continued $XX our conditions, Revenue double-digit particularly can growth costs as XXXX. temporary we're XX% growth. where operating with control how million, strong XX% Vietnam, government-induced outside had of from

have margin of to and second marketplaces, revenue from excluding to XX,XXX quarter in EBITDA year-over-year quarter was was XXX% I'm XX% the we XX%. $X EBITDA, up grew quarter, grew was prior second from year-on-year the up Vietnam, agents up revenue over incremental XX%, adjusted as with breakeven report year-on-year, of XXXX, revenue result. margin million year into $XX Our EBITDA our in an an happy pool adjusted of was just the now million converted XX% In XX% EBITDA over in agent quarter. as marketplaces this Singapore, adjusted again In excellent

product revenue agent from was our the This or ARPA, quarterly up reflection XX% pricing and on developments. year is average the renewal a customer prior per XX% was to Our of rate success fantastic period. and slightly up our

XX overall primary almost expansion ARPA in growth EBITDA, helped first the has adjusted the Singapore, more year good adjusted The control XX% and percentage is to year-over-year, our up $X than and cost which and million. added bolster was quarter in was of the ARPA Malaysia which XX% were points been $X.X up from a the XX% quarter, year-over-year. increased adjusted $XX growing from as revenue million to yield our $XX increased of to XXXX. of for example EBITDA and million million, also margin our improved quarter operating leverage million. Malaysia, million revenues great $X In $X $XXX,XXX EBITDA a increased the previous revenue driver

adjusted our grew this from the second result, EBITDA quarter As of XXXX. XX% XX% quarter to a in

X in note, down In the business remained subsequently Adjusted our just in from have quarter, The from the posting back Vietnam revenue similar average our a I'm Malaysia second XXXX ARPL Vietnam, the quarter from of increase to for to drop we that validity or in listing start as Of helped pleased was to minimum Singapore XX% moved offset XX% operating a which leverage to period XX% delivered years now. while property agents our XX% listing, of margin. many challenging market which some who in of show lead increased revenue see per the listings EBITDA established agents the premium days led those and continue XX more active to under conditions million quarter. was yield. decreased ARPL $X maximize holding services a this to for listings to in number to use listings.

year-over-year, XX% million. adjusted areas, Data the we Services was making and opportunities $X business. of these has in a and are to continue was build we are EBITDA about up us long-term strategic Hari for revenue out FinTech as loss and invest spoken the progress Finally, combined both

the On in $XXX ended the million balance sheet, we with cash. quarter

demographic between play EBITDA, our project $XXX Vietnam, outlook revenues the now in Property property and to ranges signs both improvement range. a ownership. In be and million will remain and marketplaces core of market of a in Southeast maintaining at is XXXX. $XX early where be year we at in we quarter the will of million summary, bottom full term, Longer end seen outperformance trends Asian $XX we're late to Group. the it of good related are adjusted advantage our The million of significant XXXX factor While positive been most macro positive revenue million has we assuming $XXX

well to market with profitability. has for expansion bodes reacted conditions how well current we and adjusted internal as EBITDA, future automation and pleased particularly technology, the management margin market to utilize this prudent cost improve I'm

me by Let Hari underscoring finish said. [indiscernible]

company, to not our made a have ensure our necessary resources achieving optimizing were a XXXX in our sure As that with clear Indonesia business we and review track and on remaining These outlook. to are decisions are regularly and mind. on we and progress expected impact as The focus where decisions make business any FastKey material that successful goals.

company. I to attention allows like all on support. executive our Property it the work However, hard commitment goals customers to business for the thank and would their our for their resources and thank monetary focus of gurus continued achieving and long-term our to Group both

I first over will Operator, now for call the question. ready for questions. our we're turn

Operator

Joe. Thanks,

We [Operator JMP question will now take your Instructions] come is going from first to Securities. Nick Nick? Jones with questions. Our

Nick Jones

then this numbers. of exit we on I around market Indonesia you to of decision on, the triangulate a FastKey I is we population. you'd Indonesia is of And do mean, about this future? as revisiting the the a and $X I consider touch had million kind Could kind maybe mean opportunity, guess, in kind longer-term the product. the pretty full large that think sunset impact year

of geographic footprint any your other on thinking macro today opportunities? challenges. the expansionary color Just there geographic how Are some about amid you're

Hari Krishnan

the give unit Maybe something at to settle. to look years. progressively over there. time essentially, need then add at and emerging over looking I'll our touch markets, the numbers economics, you We look on. and of looking us, for Joe rationale have for itself, we're ask some But for data data it for the is the we regarding done this we're I'll when upon you to sufficient strategic drivers And

We experience have sufficient our in markets.

know beginning pointed the as as out, to now show Vietnam, delivered now we Malaysia do them And in and results we we're Joe to well. Singapore in

almost it's for there enough the other I felt Indonesia, We've and monetization sense we've of We've years. executive X how going also it's the FastKey run but with to XX been We resources seen projects. years. think the unit on to economics a attention give the focus better us business and to over opportunity, grow.

Data business have Solutions, us, it much very is or resource both not strategic regards of cost and to and Fintech measure are X measure focused businesses, implemented. anything. It now we expansion, I think focus more adjacent for both very attention we much that With look control and countries a on models, X we're the right So in is good. the geographic

We're We other to Singapore, Malaysia Vietnam. anything as in them into not to businesses will invest geographies into now. into continue and core or for expand as hard looking well our

a we as the at it. yes, But look will to always, think inform need decisions future, way to to relook data these about at we'll if large million this, Indonesia, market, to if it's there, country think XX million you regards the use with the population and a And we with Specific people. real I large in that's the localized to something to it's extensively But population. region. really Greater the XX Jakarta around size estate

to country. For throughout Vietnam monetize actually XXX scale, a million and of million you're people, that about able sense and to business is XX do

any we're frankly, have from seeing we've seen market number in proptech them think not out that in actually unit tried Indonesia, why good either. I for models, business economics other different And we work well player a not us. of

So attention elsewhere. of ask on Joe to to numbers augment felt maybe the that. the for it's time the year, our right refocus to Specific for we us I'll sort

Joe Dische

sure. Yes,

So of And terms mean of this businesses is I small. action year. pretty taking our the revenue end the to impact obviously, in change we're and is going material is EBITDA, towards These not adjusted a on obviously have this which are year. the back outlook,

it's So outlook. to impact a on our the have numbers going material for not

$X in these have line. below adjusted million of and restructuring booked costs FastKey. Indonesia obviously And about our and relation impairments We EBITDA obviously, fall to

Nick Jones

engagement Gorupex. early are per users? from interfaces June, powered the these of of of of And any quick the more Are Great. kind is How how just machine or with an kind maybe pages that kind follow-up you visit in in changing a this driving of seeing learning engagement. -- on uptake AI launch kind times

Hari Krishnan

excited really GuruPicks. I'm about

I look frankly, space the look browsing at, context we're at the kinds your think a the in also, other experience, real the behavior, entertainment the be used to are estate or something so personalized of looking your in it having speed, preferences, able comes to properties concept of media, you're to hiding. actually when properties to personalizing but at

of ability Really, activity have all how hide the more machine insights lead and you're goal management mentioned to rates listings factored else is greater of to drive as And the here other that in. the with not the anything to into marketplace agents. there is personalize time. some with that engagement than You well of interested actually learning the we perhaps those for that experience and the side it share over tool

information Over time, supply we'll share a doing agent, get of more and demand. matching job more personalization and with more with better and to more therefore, our

that's right candid, how business short Singapore to experimenting. you're we're movements period. early think but pleased We're nothing not to I on it's going So the that still days, massive adoption for and now to given our is, date, a with such see instance, large in be time

Operator

from come going Nelson next Nelson Citi. is Cheung question ahead. go to Our with

Nelson Cheung

the So question Singapore regarding first market. is my

observation residential your and That from markets in August policy? [Indiscernible] Singapore tightening primary secondary be can recently if demand you management, great. share under wondering, of July would So in

Hari Krishnan

Like you first that in at first your half, Yes. when I'll first look private XXXX. homes, look half, double when half you volume mentioned, saw you question. get supply -- I But think at the at of look we if the new released was the the of was I

A good. online. lot really more coming that's supply So

volumes is that transaction to When comes it difficult.

in I XXXX. two rounds cooling we measures think of that we've had implemented

supply. bode of of There's to little there ahead of I continues demand badly had come supply does not That as taken cooling the for that market. was far recall, think online. might off warranted demand prices it a bit was you a bit necessarily lot correction off, when sort given was really a little that of

new continued supply again. going GDP you passed and estates, how to Even as to -- out in and National lot just they're of talk development growth Day and PM its here how about Construction, there's a I in the recent mentioned, was we've Singapore, and the they're north think focus in on HDB of more projects launch saw lot invest a come going coming I X% online. the so

indicators. mentioned, continue are as of more there Transaction bit. a and more off the are agents marketplace. lot a But So also Joe volumes join little good to

our So and it from continues the be perspective prices a to from sustainable cooling perhaps agents healthy agencies, but clearly, both off bit. the a and also with more market little

Nelson Cheung

that management XXXX. is Then regarding while my is timing silver expect versus be see the And we in we given some call, second question late discussed which the I monetary Wetter recovery believe markets. XXXX easing, start and last market. the early quarter's to earnings to like lining, earlier

Hari Krishnan

as when think in. of to lot put it I government Vietnam, listen, mentioned, the a comes we measures So there's

I That's truth just result, as the impacted has the the that of matter. I been it's think stated, consumer sentiment.

XXXX. We continue recovery at to happen in forecast late will the earliest that

So that hasn't changed.

love cuts we any of it now message the that. cetera. than to seeing if happens earlier, government kind et Obviously, rate messages, But see that sooner, right the happen of But that. continues to we'd are not it indications sooner will as

all policy, lot essentially there So of the there's and to I when it a think see of has government be that a bit little to them actually complete. comes to corrective that for there's a their measures consumer are said always lag but going demand

forecast late start-up recovery market. in a XXXX still that for So we

Nelson Cheung

last my investment. is question the Then regarding

do Indonesian M&A would of be Given market this that wondering and opportunity we going the consider investment still or potential we have company I'm out for the phased And FastKey priority also top business, investment any the in the what forward? year?

Hari Krishnan

hand then Joe talk to the Maybe investment, to about I'll M&A. to it I'll talk and

lot and AI are in machine Singapore, our Vietnam, I some really as to the product tech Really some learning, about making. the DataSense by excited and about we're of progress I about talked the investment, Malaysia FinTech business with that talked examples. as even businesses both regards a I investing into generative well excited of think core we're areas the

happening over brokered of So the automation banks home hood, some encouraging. loans with to see billion of $X these are progress driving that kind of partnerships under a lot with the Fintech, the more

will spaces. continue into So we invest to those hard

this governments, the legs. industry progress encouraging plans, we're REHDA we're see seeing product that from Malaysia. Malaysia that in when as really, could with in pleased comes the from have And as in We're adoption Singapore, it beginning from like to urban REITs there. bodies really DataSense, well to is signs This both

So I we markets continue be continue an where as as pace Thailand, think mode. those to investments in will well like newer in at investment

So right the investment focus I think those be for will primary now.

Maybe Joe that many, I'll more. to over comment to hand

Joe Dische

Yes. looking And but Fintech. think of stated, as products. other already areas previously major with to are and We I our focus markets other presence have data types

We also the [Saint already also end investment in look where an of in back towards Singapore year. systems Services developer Home to made and Helpa] operating we obviously last

So those are our priorities.

great I looking team challenges co-dev to in had, the think through of which we've working And one just markets. opportunities. a really size and find core that's got It's we've scale, hard away our is

are other region our we across see attractive really definitely there's opportunities. looking to if broadly So any

days is look early the a wide. in opportunities. that specifically casting net wide we're there's to we're still having range fairly good of still on So new a We're respect, nothing but report, but very

Operator

second see hand questions, if function. the other there's any please have we raise If to wait any more. We'll use a

Okay, questions. doesn't look like any we it have more

Q&A. will that conclude So the

call closing conference Let remarks. any to the Hari back for me turn

Hari Krishnan

progress us joining to thank you Goodbye. sharing continued forward Until with today. for quarter. you look all next We our then,

Propertyguru (PGRU) 24 Aug 232023 Q2 Earnings call transcript