Real estate site PropertyGuru’s net loss climbs to $138 million in 2021

Property listing site PropetyGuru’s net loss in 2021 reached S$187.4 million, compared to S$14.4 million in 2020.

The company attributed a large portion, S$124.1 million, of the net losses to a one-time accounting charge on preferred stock conversion options. Excluding this accounting charge, net losses jumped to S$63.3 million, more than four times that of 2020, due to higher operating and asset depreciation costs, as well as costs related to its rating.

Revenues in 2021 increased by around 23% to reach S$100.7 million from S$82.1 million in 2020. Singapore revenues (S$55.9 million in 2021 from S$46.6 million Singapore dollars in 2020) accounted for more than half of the company’s revenue in 2021. It said that with 14,080 agents and an 82% turnover rate, it had an average revenue per agent of 3,279 Singapore dollars.

Vietnam’s revenue increased slightly from S$18.3 million in 2020 to S$18.8 million in 2021, while Malaysia’s revenue jumped from S$7.89 million in 2020 to S$14.7 million in 2021 due to its acquisition of iProperty in May last year.

Its fintech and data services, which PropertyGuru pushes, accounted for the smallest share of its revenue. Revenue from this business has increased from S$1.02 million in 2020 to S$2.85 million in 2021.

PropertyGuru’s forecast for 2022 is revenue growth of 44%, S$145 million, expecting business to improve as Southeast Asia eases pandemic restrictions.

Its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) recorded losses of S$10.9 million in 2021, compared to S$4.4 million in adjusted EBITDA gains in 2020. Adjusted EBITDA fell to -10.8% in 2021 from 5.4% Adjusted EBITDA margins in 2020. The company said in a statement that this was due to “increased investment in hiring and marketing to position the company to emerge strongly from the pandemic”.

Shares of PropertyGuru fell 1.89% to $6.23 on Friday after the earnings release. Its price has fallen more than 27% since its first price of $8.61 on March 18.

PropertyGuru was founded by Steve Melhuish and Jani Rautiainen in 2007, who were each driven by their personal frustrations with finding a home in Singapore. It is now headed by the Managing Director Hari V. Krishnan.

Today, the online classifieds site serves five Southeast Asian markets – Singapore, Indonesia, Thailand, Malaysia and Vietnam.

According to PropertyGuru, it serves over 52 million property seekers and hosts over 3.3 million property listings each month. It also has a network of over 57 million real estate agents on its platform.

PropertyGuru listed on the New York Stock Exchange in March via a merger with Bridgetown 2 Holdings’ Special Purpose Acquisition Company (SPAC). The deal raised a total of $431 million, including a $100 million private investment from Baillie Gifford, Naya, REA Group, Akaris Global Partners and others, and valued the TPG and KKR-backed company at approximately $1.8 billion.

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