Singapore's PropertyGuru Reports $5.3 Million Net Loss for Third Quarter

PropertyGuru, a Singapore-based online property portal, posted a net loss of $7.4 million Singapore dollars ($5.3 million) for the quarter ended Sept. 30. This is down from last quarter’s net profit of SG$3.8 million.

Despite posting a net loss for the quarter, the company's revenue grew by 47% year over year. This is an improvement from the net loss of SG$9.6 million in the same period a year ago.

Meanwhile, adjusted EBITDA for the third quarter improved to positive SG$5.7 million, up from an adjusted EBITDA loss of SG$1.5 million in the same period a year ago. EBITDA is a measure of profitability that excludes interest, taxes, depreciation and amortization.

"Our third quarter results show that PropertyGuru has been able to maintain strong business performance despite challenging economic conditions in some of our core markets," said Hari Krishnan, PropertyGuru Group's CEO and managing director.

Krishnan mentioned on Monday night's earnings call that there are several challenges the company is facing, such as rising taxes and stamp duties in Singapore, and tighter credit conditions for home buyers in Vietnam.

The online portal provides information across the Singapore, Malaysia, Indonesia, Thailand and Vietnam marketplaces. This makes it a valuable resource for businesses operating in these countries.

"We remain bullish on the long term prospects for PropertyGuru, despite some short term macro headwinds," said Joe Dische, the group's CFO.

In an interview with CNBC’s “Squawk Box Asia” Tuesday, Dische said that he is seeing trends in the Malaysia and Singapore property markets.

"There has been some good activity in Malaysia recently, with the government supporting lower-end and affordable homes. Some measures were taken before the recent election to provide stamp duty concessions for first-time buyers, and we're definitely seeing some action being taken to support the market."

Finance Minister Zafrul Aziz announced in a budget speech to Parliament in early October that the country would raise stamp duty exemption to 75% from 50% on first home purchases. This change will make it easier for first-time homebuyers to afford a home.

He said that the return of Singaporeans and expatriates, as well as delays in the delivery of build-to-order apartments and renovation works during the earlier stages of the pandemic, have driven rental demand in Singapore.

Dische noted that Vietnam has been cracking down on speculative activity, making it difficult for people to access credit.

"This does have a knock-on impact on the ordinary person who is trying to purchase a property. But I think there has been some action taken against speculation which drives inflation in those markets. As affordability drops, some people will wait and see and move into the rental market, increasing prices and demand," he added.

In October, PropertyGuru made its first post-listing acquisition, Singapore-based home services technology company Sendhelper. PropertyGuru listed on the New York Stock Exchange in March.

PropertyGuru's share price has fallen by 39% since it was listed on the stock exchange.