Q1 2024 PropertyGuru Group Ltd Earnings Call
I mean, we're going to wait a second for all the attendees to get in and then we'll get started.
Okay.
Speaker Change: It looks like almost everyone is here so we'll get started.
Speaker Change: Thank you for standing by and welcome to the property Era Group first quarter 2024 earnings Conference call. Currently all participants are in a listen only mode. As a reminder, today's program will be recorded anyone objects. Please disconnect now now let me introduce Nat Otis Vice President of Investor Relations. Mr. <unk>. Please go ahead.
Speaker Change: Okay.
Speaker Change: Good morning, Good morning, and good evening welcome to property Girl group's first quarter 2024 earnings conference call on the call today are Jeremy Williams, managing director of our flagship business marketplaces, and Joe dish CFO before we get started a few reminders firstly our results are available in the earnings release it can be found in <unk>.
Speaker Change: <unk> section of our website.
Secondly, today's webcast is being recorded a replay and transcript will be available in the investors section of our website.
<unk>, we will be making forward looking statements, including but not limited to statements regarding our future results and expectations for the business. These statements are not promises nor guarantees and involve risks and uncertainties that may cause actual results to vary materially. Please.
Speaker Change: Please refer to our earnings release, and SEC filings for more information regarding risk factors forward looking.
Speaker Change: Statements are based on current expectations and the company is not obligated to update them, except as required by law Fourthly. This call contains non ifr as financial measures for a reconciliation of non ifr's financial measures to the most directly comparable ifr's metric. Please see our earnings press release Lastly, all dollar references are in Singapore.
Unless otherwise stated with that let me turn the call over to Jeremy.
Jeremy Williams: Thanks very much thank.
Jeremy Williams: Thank you for joining us for our first quarter 2020 or earnings conference call I've been the managing director of Harmony Gurus marketplaces, Mrs for the past six years and it's great to be part of today's call.
Jeremy Williams: Property Guru recently marked its two year anniversary of being a publicly listed company and we thought this would be a good opportunity for me to update everyone on our continued progress.
Speaker Change: Now to the quarter, we started 2024 with another solid quarter of double digit revenue growth and double digit adjusted EBITDA margin, demonstrating our business model strength and operating leverage.
Speaker Change: Amongst highlights our Singapore performance illustrated the value proposition, we deliver to our customers even during a period of slower market activity.
Speaker Change: We also saw some early signs of property market recovery in Vietnam and Malaysia.
Speaker Change: The first quarter witnessed governments across our region introducing robust policies that will help accelerate growth in the short to medium term and uplift property market sentiment.
Speaker Change: I will now zoom in on the key updates and property trends from our markets this quarter.
Speaker Change: In Singapore, the government continues to project growth in the 1% to 3% range for 2020 full with felt first quarter GDP coming in at the high end of the range.
Speaker Change: Of note construction related GDP continues to outperform overall levels and was up over 4% in the first quarter, which bodes well for future housing supply.
Speaker Change: No near term changes in interest rates are expected at the Singapore Central Bank maintained its current monetary policy, while continuing to monitor inflation.
Speaker Change: The Singapore property market has had attempted start to the year as higher housing prices elevated interest rates and overall market uncertainty have weighed on consumer demand.
Speaker Change: On the sales side, a property sale demand index was down 17% in the quarter, while by vice prices and supply were up 1% compared to the prior year's quarter.
Speaker Change: On the rental side, a rental demand index was 38% lower than in the first quarter of 2023 as a result of both the reduced demand and the 66% increase in supply rental prices were down 7% from a year ago.
Speaker Change: Whether it's sales of rental to cautious buyer sentiment in Singapore drives greater agent competition, highlighting our sweet spot and providing vital value add solutions for agents when transaction volumes slow down.
Speaker Change: As a result, our topline continues to grow despite softer market conditions underscoring the optimism we have in our Singapore business going forward.
Speaker Change: In Malaysia housing affordability campaign continues to be the primary issue in 2024.
Speaker Change: Malaysian GDP grew over 4% in the first quarter in line with Central Bank expectations for 4% to 5% growth for the full year.
The Malaysia Central Bank chose to maintain interest rates at that current level in March as inflation remains in check.
Speaker Change: While the limited availability availability of affordable midrange housing and the price gap between buyers and sellers in Malaysia remain two of the biggest impediments to a property market recovery, we do see some signs of improving buyer interest.
Speaker Change: According to a recent Malaysian consumer sentiment survey one in three malaysians intend to buy a property in the next two years, even if prices continue to rise.
Speaker Change: This bodes well for the prospects of a market recovery in the medium term.
Speaker Change: In Vietnam, while 2023 was a challenging year, we've began to see green shoots of recovery in 2024.
Speaker Change: On March 24th sales listings in a 12 month high on a baton sand platform and our market demand index was up 15% from the first quarter of 2023.
Speaker Change: In addition, the government of Vietnam is working hard to support the property market with additional catalysts.
Speaker Change: One important way is addressing this is by trying to bring forward. The effective date for three newly amended real estate laws from 'twenty twenty-five to July 1st 2024.
Speaker Change: These laws would provide for more consistent and realistic land appraisals tightened developer requirements across the project's lifecycle relax rules on foreign ownership and better organize the agent community.
Speaker Change: As the leading marketplace in Vietnam. We believe these new laws provide a great opportunity to further improve the structure of the country's property market, especially the component that will recur will cry all agents to be affiliated with an agency.
Relax rules on foreign ownership and better organize the agent community.
Speaker Change: According to a recent survey 65% of consumers view these new laws as part of positive actions, which should clearly help sentiment.
Speaker Change: As the leading marketplace in Vietnam. We believe these new laws provide a great opportunity to further improve the structure of the country's property market, especially the component that will require will cry all agents to be affiliated with an agency.
Speaker Change: With respect to credit bank lending rates have decreased in Vietnam since the Prime Minister cold for banks to publish average bank lending rates in March.
Speaker Change: According to a recent survey 65% of consumers view these new laws as part of positive actions, which should clearly help sentiment.
Speaker Change: We remain bullish on Vietnam, <unk> long term prospects, which are supported by its population demographics growing digitization and high growth potential.
Speaker Change: With respect to credit bank lending rates have decreased in Vietnam since the Prime Minister call for banks to publish average bank lending right.
Speaker Change: Infrastructure investments are facilitating greater urbanization and contributing to positive trends in the housing sector reinforcing our confidence in the market.
Speaker Change: Okay.
Speaker Change: We remain bullish on Vietnam, <unk> long term prospects, which are supported by its population demographics growing digitization and high growth potential.
Speaker Change: Let me now provide an update on the recent product progress within the group.
Speaker Change: Property Garou kicked off 'twenty 'twenty four with the introduction of new solutions for our customers coupled with a sustained uptake of previously launched offerings.
Speaker Change: Infrastructure investments on facilitating greater urbanization and contributing to positive trends in the housing sector reinforcing our confidence in the market.
Speaker Change: Central to our DNA, we continue to craft pioneering technology aimed at helping customers make confident property decisions.
Speaker Change: Let me now provide an update on the product progress within the group.
Speaker Change: Property grew kicked to 2024 with the introduction of new solutions for our customers coupled with a sustained uptake of previously launched offerings.
Speaker Change: Strategic integration of machine learning and minority of AI into product development and business operations continues to accelerate our innovation.
Speaker Change: Central to our DNA, we continued to craft pioneering technology aimed at helping customers make confident property decisions.
Speaker Change: A prime example of this is our AI video feature which was rolled out in Singapore.
Speaker Change: This feature facilitates the auto creation of a video based on lifting images and texts descriptions uploaded by our agent partners, helping to deliver a better consumer experience, while also being more time efficient for agents.
Speaker Change: Our strategic integration of machine learning and generative AI into product development and business operations continues to accelerate our innovation.
Speaker Change: A prime example of this is our AI video feature which was rolled out in Singapore.
Speaker Change: 60% of agents, who engage with the AI video feature chose to incorporate it into their listing gallery.
Speaker Change: As feature facilitates the auto creation of a video based on listing images and text descriptions uploaded by our agent partners, helping to deliver a better consumer experience, while also being more time efficient for agents.
Speaker Change: In Vietnam as a as part of our effort to assist the industry improving property market transparency. This quarter, we rolled out professional agent verification. This solution uses several different forms of information to help the combatant company independently verify agent authenticity, enabling further trust and transparency on our Mark.
Speaker Change: 60% of agents, who engage with the AI video feature chose to incorporate it into their listing gallery.
In Vietnam as a as part of our effort to assist the industry improving property market transparency. This quarter, we rolled out professional agent verification. This solution uses several different forms of information to help the company company independently verify agent authenticity, enabling further trust and transparency on our market.
Speaker Change: A place.
Speaker Change: The response has been very encouraging with more than 500 agents verified in the first week alone.
Speaker Change: Lead management, which we launched last year supports agents with powerful lead related insights that help them close deals foster it has gone at increasing approval among agents as evidenced by a recent survey that shows a 25% increase in satisfaction levels for agents, who use our solution.
Speaker Change: Place.
Speaker Change: The response has been very encouraging with more than 500 agents verified in the first week alone.
Speaker Change: Lead management, which we launched last year supports agents with powerful lead related insights that help them close deals Foster this garnered increasing approval among agents as evidenced by a recent survey that shows a 25% increase in satisfaction levels for agents, who use the solution.
Speaker Change: Moving onto our data and software solutions business.
Speaker Change: Data since our proprietary data and analytics tool brings valuable insights to our customers, helping them confidently makes critical strategic investment decisions.
Speaker Change: February saw the introduction of data sell St self serve the Malaysian agents facilitating that seamless access to our data center modules. They can now leverage our comprehensive data resources to research negotiate and advise using timely and relevant insights.
Speaker Change: Moving onto our data and software solutions business.
Speaker Change: Data since our proprietary data and analytics tool brings valuable insights to our customers, helping them confidently makes critical strategic investment decisions.
Speaker Change: February saw the introduction of dataset since self serve the Malaysian agents facilitating that seamless access to our data center modules. They can now leverage our comprehensive data resources to research negotiate and advise using timely and relevant insights.
Speaker Change: In March we rolled out demand analytics pro in Thailand, and now provide coverage in all four markets.
Speaker Change: Demand analytics pro utilizes proprietary data to analyze supply and demand dynamics at all market levels from his largest countrywide towards small as township or project level.
Speaker Change: In March we rolled out demand analytics pro in Thailand, and now provide coverage in all four markets.
Speaker Change: For our developer and government customers. The comprehensive nature of this solution is exactly what they are looking for as they make critical investment decisions.
Speaker Change: Demand analytics pro utilizes proprietary data to analyze supply and demand dynamics at all market levels from his largest countrywide towards small as township or project level.
Speaker Change: In Fintech, we've made good progress with our digital application for in principal approval and home loans, which we announced last year over half of our applications are now being completed through the guided digital application journey.
Speaker Change: For our developer and government customers. The comprehensive nature of this solution is exactly what they are looking for as they make critical investment decisions.
A select number of our bank partners benefit from an advanced experience that includes features like digital signing and as a result that digital digital application adoption rate is up to 78% of overall submissions.
Speaker Change: In Fintech, we've made good progress with our digital application for in principal approval and home loans, which we announced last year.
Speaker Change: Over half of our applications are now being completed through the guided digital application journey.
Speaker Change: These digital experiences are especially appreciated by consumers with over 80% of users having consumer satisfaction writings of either four or five stars in ongoing surveys.
Speaker Change: Select number of our bank partners benefit from an advanced experience that includes features like digital signing and as a result that digital digital application adoption rate is up to 78% of overall submissions.
Speaker Change: Looking ahead, we remain committed to harnessing innovative technology, expanding generative AI applications and strategically investing in initiatives tailored to navigate the dynamic southeast Asia property landscape, both in the present and the future.
Speaker Change: These digital experiences are especially appreciated by consumers with over 80% of users having consumer satisfaction ratings of either four or five stars in ongoing surveys.
Speaker Change: As a final update I'm proud to share that we've recently released our first sustainability report supported by the recently launched breweries for good our sustainability mandate.
Looking ahead, we remain committed to harnessing innovative technology, expanding generative AI applications and strategically investing in initiatives tailored to navigate the dynamic southeast Asia property landscape, both in the present and the future.
Speaker Change: I will now hand, the call over to Joe to walk you through our financials.
Joe Dish: Thanks, Jeremy.
Speaker Change: As a final update I'm proud to share that we've recently released our first sustainability report supported by the recently launched gurus for good sustainability mandate.
Joe Dish: Probably girl started off 2024 with another solid quarter of double digit revenue growth and double digit adjusted EBITDA margin.
Joe: I'll now hand, the call over to Joe to walk you through our financials.
Joe Dish: Revenue was up 12% to $37 million in the first quarter as we navigated a phased recovery in Vietnam and Malaysia.
Joe: Thanks, Jeremy.
Joe: Copenhagen, who started off 2024 with another solid quarter of double digit revenue growth and double digit adjusted EBITDA margin.
Joe Dish: What is remarkable is that we delivered this increase in revenue while costs within adjusted EBITDA remained flat year over year, which led to a 12% increase in our adjusted EBITDA margin up from less than 1% in the first quarter of 2023.
Joe: Revenue was up 12% to $37 million in the first quarter as we navigate through the phased recovery in Vietnam and Malaysia.
Joe: What is remarkable is that we delivered this increase in revenue while costs within adjusted EBITDA remained flat year over year, which led to a 12% increase in our adjusted EBITDA margin up from less than 1% in the first quarter of 2023.
Speaker Change: The ongoing strength in Singapore was especially helpful. As was the success of our active cost management Repubs degree of continuing to improve profitability and this quarter delivering margin expansion in all of our marketplaces, regardless of topline performance.
Speaker Change: The ongoing strength in Singapore was especially helpful as well as the success of our active cost management reporting.
Speaker Change: We continue to set ourselves up to benefit from our technology investments and prudent cost management as a property markets rebound and southeast Asia returns to its position as a world leader in economic transformation and growth.
Speaker Change: To improve profitability and this quarter delivering margin expansion in all of our marketplaces, regardless of top line performance.
Speaker Change: Okay.
Speaker Change: Now for more details on our marketplace businesses.
Speaker Change: We continue to set ourselves up to benefit from our technology investments and prudent cost management as a property markets rebound and southeast Asia returns to its position as well data and economic transformation and growth.
Speaker Change: And Singapore revenue was $24 million in the first quarter up 25% from the prior quarter and our adjusted EBITDA increased to $19 million for 79% margin.
Speaker Change: Okay.
Speaker Change: Now for more details on our marketplace businesses.
Speaker Change: Once again increased adoption of our market, leading products and active cost management helped us deliver another quarter of strong results.
Speaker Change: And Singapore revenue was $24 million in the first quarter up 25% from the prior year quarter, and our adjusted EBITDA increased to $19 million for 79% margin.
Speaker Change: Our Singapore agent base grew again this quarter, we now have over 16400 agents.
Speaker Change: Our renewal rate was 77% the first quarter and the quarterly average revenue per agent or ARPA was up 22%.
Speaker Change: Once again increased adoption of our market, leading products and active cost management helped us deliver another quarter of strong results.
Speaker Change: In Malaysia revenue was $7 million and adjusted EBITDA was $4 million, both flat with the first quarter of 2023 for an adjusted EBITDA margin of 52%.
Speaker Change: Our Singapore agent base grew again this quarter, we now have over 16400 agents.
Speaker Change: Our renewal rate was 77% for the first quarter on a quarterly average revenue per agent or ARPA was up 22%.
Speaker Change: On a local currency basis revenue was up 5% in the quarter.
Speaker Change: We believe lower interest rates and easing in inflation concerns will help improve conditions as we move through 2024.
Speaker Change: And Malaysia revenue was $7 million and adjusted EBITDA was $4 million, both flat with the first quarter of 2023 with an adjusted EBITDA margin of 52%.
In the meantime, though we will continue to focus on product development and optimizing our customer value proposition.
Speaker Change: On a local currency basis revenue was up 5% in the quarter.
Speaker Change: We believe lower interest rates and easing of inflation concerns will help improve conditions as we move through 2024.
And Vietnam revenue was $3 million in the quarter flat with the first quarter 2023, and adjusted EBITDA was breakeven of note on a local currency basis revenue was up 3%.
Speaker Change: In the meantime, though we will continue to focus on product development and optimizing our customer value proposition.
Speaker Change: I would also add the following four quarters of double digit decreases in revenue our top line has begun to improve.
Speaker Change: And Vietnam revenue was $3 million in the quarter flat with the first quarter of 2023, and adjusted EBITDA was breakeven of note on a local currency basis revenue was up 3%.
Speaker Change: The average revenue per listing in Vietnam was up 13% in the quarter, but this growth was offset by 13% drop in listings to a million.
Speaker Change: As Jeremy noted despite the overall drop in listings in the quarter were encouraged by the 12 month High point was reached in late March.
Speaker Change: I would also add the following four quarters of double digit decreases in revenue our top line has begun to improve.
Speaker Change: The average revenue per listing in Vietnam was up 13% in the quarter, but this growth was offset by 13% drop in listings to $1 million.
Jeremy Williams: We believe the government's actions to improve consumer sentiment and facilitate the recovery in the property market should help as we move through the year.
Speaker Change: As Jimmy noted despite the overall drop in listings in the quarter. We are encouraged by the 12 month High point was reached in late March.
Jeremy Williams: More importantly, it appears as if consumer sentiment is turning positive again.
Speaker Change: Turning to the balance sheet, we ended the quarter with $300 million in cash.
Speaker Change: We believe the government's actions to improve consumer sentiment and facilitate the recovery in the property market should help as we move through the year.
Speaker Change: In summary, our results this quarter were solid start 2024, following double digit revenue growth and double digit adjusted EBITA margin in 2023, we continue this trajectory in the first quarter, which is traditionally a quiet seasonal quarter given multiple national holidays.
Speaker Change: More importantly, it appears as if consumer sentiment is turning positive again.
Speaker Change: Turning to the balance sheet, we ended the quarter with $300 million in cash.
Speaker Change: In summary, our results this quarter were solid start to 2024, following double digit revenue growth and double digit adjusted EBITDA margin in 2023, we continue this trajectory in the first quarter, which is traditionally a quiet seasonal quarter given multiple national holidays.
Speaker Change: Profitable growth is more than a phrase for us. It represents the intersection of active cost management targeted investment transformational technology and hard work in.
And as how we are future proofing, our core business every day.
Speaker Change: With respect.
Speaker Change: Back to our published outlook full year 2024 revenue remains between 165 and $180 million and adjusted EBITDA remains between 22 and $26 million.
Speaker Change: Profitable growth is more than a phrase for us. It represents the intersection of active cost management targeted investment transformational technology and hard work and.
Speaker Change: And it's how we are future proofing, our core business every day.
Speaker Change: We're excited about our opportunities for the rest of the year as we continue to deliver profitable growth while the markets. We operate in bounce back in southeast Asia gathers further momentum.
Speaker Change: With respect to our published outlook full year 2024 revenue remains between 165 and $118 million and adjusted EBITDA remains between 22 and $26 million.
Speaker Change: I would like to thank all augurs for their hard work and our customers for their continued support.
Speaker Change: We're excited about our opportunities for the rest of the year as we continued to deliver profitable growth while the markets. We operate in bounce back in southeast Asia gathers further momentum.
Speaker Change: I will now turn the call over for questions operator, we're ready for our first question.
Thank you Joe we will now take your questions. Please use the raise and a function that you want to ask a question to facilitate the Q&A session. I will invite you to ask the question in a new you. Please state your name and firm before asking your question.
Speaker Change: I would like to thank all our gurus for their hard work and our customers for their continued support.
Speaker Change: I will now turn the call over for questions operator, we're ready for our first question.
Speaker Change: Thank you Joe we will now take your questions. Please use the raise hand function that you want to ask a question to facilitate the Q&A session. I will invite you to ask your question and please state your name and firm before asking your question.
Speaker Change: Our first question is going to come from Nick Jones.
Nick Jones: Yeah, Hi, Jeremie, Hi, Joe Nick Jones Midlands Jan.
Nick Jones: My first question.
Speaker Change: Can you talk about just your relative color share gains or share dynamic of the property your business in your key markets versus kind of what's happening in.
Speaker Change: Our first question is going to come from Nick Jones.
Yeah, Hi, Jeremie, Hi, Joe Hey, Jones with JMP.
Speaker Change: And the underlying market top line growth has been decent Vietnam is returning the corner.
Nicholas Freeman Jones: My first question.
Speaker Change: When we think about Singapore, and Malaysia, and then maybe just the broader business other.
Nicholas Freeman Jones: Can you talk about just your relative kind of share gains or share dynamic of the property your business in your key markets versus kind of what's happening.
Speaker Change: Are there kind of clear share gains in our marketplace business or just broadly here and can you maybe out of the total context as to probably your performance versus kind of underlying market dynamics.
Speaker Change: And the underlying market top line growth has been decent.
Speaker Change: <unk> is returning to corner.
Speaker Change: When we think about Singapore, and Malaysia, and maybe just the broader business.
Speaker Change: Yeah, Yeah. Thanks for the question question, Nathan, but we really feel really confident where you know where we are positioned in all of our markets, Singapore, Malaysia, Vietnam, and and Thailand. I think obviously you know we spoke a little bit during the call you know.
Speaker Change: Are there kind of a clear share gains in our marketplace business or just broadly or can you maybe just a little context as to probably get your performance versus kind of underlying market dynamics.
Speaker Change: Q1 was a little bit of a quieter quarter here in Singapore in particular, I think we've seen the ebbs and flows in the market before entry things typically happened. During these sort of periods are first of all is that agents are definitely biased that spend two to channels, where they get the grind greatest ROI and in all of our <unk>.
Speaker Change: Yeah. Thanks for the question question Nick.
Speaker Change: We feel really confident where we're.
Speaker Change: We are positioned in all of our markets, Singapore, Malaysia, Vietnam, and and Thailand, I think obviously, we spoke a little bit during the call.
Speaker Change: Q1 was a little bit of a quieter quarter here in Singapore in particular, I think we've seen the ebbs and flows in the market before and two things typically happened during these sort of periods.
Speaker Change: Markets you know we have very strong position. So we definitely are in a beneficiary in that respect secondly, we also see that you know in a market like Singapore at the moment, our agents are having to work harder.
Speaker Change: First of all is that agents are definitely biased our spend to channels, where they get the greatest ROI and in all of our markets. We have very strong position. So we definitely are a beneficiary in that respect secondly, we also see that in a market like Singapore at the moment, our agents are having to work harder to.
Speaker Change: To get leads for their listings right. So you know given the depth of products that we we offer to our agent customers you know through greater reach and greater leads we see more and more agents using our our debt products. So I think you know given the strong market positions. We have across all four of our markets really sort of are happy with the quarter and confident in the value of that.
Speaker Change: Get leads for their listings right. So you know given the depth of products that we offer.
Speaker Change: Where we are delivering and we think we sort of wellbore poised, specifically markets like Malaysia, and Vietnam as they begin to recover into the year.
Speaker Change: Two our agent customers through greater reach and greater leads we see more and more agents using our debt products. So I think given the strong market positions. We have across all four of our markets really sort of happy with the quarter and confident in the value that we're delivering and we think we sort of well poised specifically in markets like Malaysia and Vietnam.
Speaker Change: And maybe just a finer point on it again in the press release, there was one in three of them all envision going to buy a property in the next two years.
Speaker Change: Piggybacking off my last question.
Speaker Change: Now as they begin to recover into the year.
Speaker Change: How should we be thinking about that kind of flow through into property Gurus model I mean can gain.
Speaker Change: And maybe just a finer point I think in the press release there was warranted.
Speaker Change: Can you capture the vast majority of that will that should help drive incremental share gains specifically in the Malaysian market.
Speaker Change: It isn't going to buy a property in the next two years.
Speaker Change: Piggybacking off my last question.
Speaker Change: Yeah. So we we enjoy very in a very strong position in our in our Malaysia market and you're right I mean, it's great to see the underlying consumer demand is strong with with one in three malaysians now intending to buy a property in the next two years.
Speaker Change: And how should we be thinking about that kind of flow through into property Gurus model I mean, Ken Ken.
Speaker Change: Can you capture the vast majority of that will that just helped drive incremental share gains.
Speaker Change: Is there a green in the Malaysian market.
Speaker Change: There are some encouraging signs in the Malaysia market. You know Q1, GDP was at 4%, which was which was encouraging are the inventory overhang a reduced at the end of 'twenty two 'twenty three and and also it's good to see sort of the political stipulate S situation stable. After a couple of years of uncertainty so again.
Speaker Change: Yeah. So we enjoy very very strong position in our in our Malaysia market and you're right I mean, it's great to see the underlying consumer demand is strong with one in three malaysians intending to buy a property in the next two years.
Speaker Change: There are some encouraging signs in the Malaysia market Q1, GDP was at 4%, which was which was encouraging the inventory overhang a reduced at the end of 2023 and it also it's good to see sort of the political stipulate.
Speaker Change: You know we are very well positioned given the share that we have in the Malaysia market and given some of these green shoots of recovery that we're starting to see it gives us confidence about the year ahead.
Speaker Change: Situation stable after a couple of years of uncertainty. So again I think we are very well positioned given the share that we have in the Malaysia market and given some of these green shoots of recovery that we're starting to see it gives us confidence about the year ahead.
Speaker Change: Great and last question just on I think it was 60% of agents using AI video features after the first trial.
Speaker Change: How is it showing up in the business.
Is this kind of value added increasing revenue our AARP a.
Speaker Change: Great and last question just on I think it was 60% of agents using AI video features after the first trial.
Speaker Change: And how impact.
Speaker Change: And are you kind of your product road map going forward.
Speaker Change: Okay.
Yes, so AI as Luke AI is a big part of our product roadmap going forward. Obviously, we we we referenced this in the AI video feature that we launched in Singapore and this is really focused in two ways. The first is a better experience for our consumers our property seekers right and they clearly want more of an immersive content experience and.
Speaker Change: Hum.
Speaker Change: Drilling up in the business.
Is this kind of value added increasing revenue our AARP.
Speaker Change: And how impact.
Speaker Change: Okay.
Speaker Change: It kind of your product roadmap going forward.
So AI is Luc AI is a big part of our product roadmap going forward, obviously, we referenced the sort of the AI video feature that we launched in Singapore and this is really focused in two ways. The first is a better experience for our consumers our property seekers right and they clearly want more of an immersive content experience.
Speaker Change: AI helps helps leverage that so yeah.
Speaker Change: That's one element right a guru picks which he spoke about last quarter is now the rail element, where it really does increase the consumer.
Speaker Change: Immersive content and increase consumer engagement. So that's on the first side on the second side you know.
Speaker Change: <unk> AI helps helps leverage that so.
Speaker Change: It's really a lot of efficiency gains for our agent customers as well right. So now instead of having to take a video of a listing you know we can help them stitched together a video based on those listing images. So you know on the one hand. It obviously, it's a great experience for our consumers and our property seekers on the other hand, it you know it drives real time and efficiency gains.
That's one element right Guru picks, which he spoke about last quarter is another element, where it really does increase the consumer.
Speaker Change: Immersive content any increase consumer engagement. So that's on the first side on the second side of it.
Speaker Change: It's really a lot of efficiency gains for our agent customers as well right. So now instead of having to take a video of a lithium we can help them stitched together a video.
Speaker Change: For our agent customers. So I think that's where we're focused at the moment you know overtime also to see how we incorporate this into very subscription packages.
Speaker Change: Based on those listing images so on the one hand, it obviously, it's a great experience for our consumers and our property seekers on the other hand, it drives real time and efficiency gains for our agent customers. So I think that's where we're focused at the moment you know overtime also to see how we incorporate this into very subscription packages to.
Speaker Change: To potentially drive drive off a bit at the moment really focused on driving a better consumer <unk>.
Speaker Change: Consumer experience and more efficiency for our hygiene customers.
Jeremy Williams: Great. Thanks, Jeremy Thanks, Joe.
Jeremy Williams: Yes.
Speaker Change: Hi, Thanks.
Speaker Change: Okay.
Speaker Change: To potentially drive drive off of but at the moment really focused on driving a better consumer a consumer.
Speaker Change: Our next question is can it come from Bon Jang of benchmark on go ahead then.
Speaker Change: Experience and more efficiency for our hygiene customers.
Speaker Change: Great. Thanks, Jeremy Thanks, Joe.
Speaker Change: Yes.
Speaker Change: Hi, Thanks.
Speaker Change: Okay.
Speaker Change: Okay.
Our next question is can it come from Bon Jiang of benchmark on go ahead.
Speaker Change: And just on <unk>.
Bon Jang: Follow up on your commentary around the turnaround of euro of Vietnam and Malaysia.
Speaker Change: We see some early signs of market recovery.
Speaker Change: I just want you.
You had a better sense of the pace and.
Speaker Change: Hum.
Speaker Change: <unk> on the recovery side, the last cycle, especially now.
Speaker Change: One up on your commentary around the time of year.
Speaker Change: You saw a V shaped recovery just wonder how should we think about recovery.
Speaker Change: Lisa.
Lisa: We see some early signs of market recovery.
Speaker Change: Yes, paced shirdi strong any puts and takes and then late may or may not be differentiating from the lifestyle lifecycle.
Speaker Change: I just want you.
Speaker Change: Yes, it's a better sense of the NAV.
Speaker Change: Thank you.
Speaker Change: I know last cycle, especially now we actually saw a V shaped recovery. Just wondering you know how should we think about recovery.
Speaker Change: Yeah. Thank you. Thank you for the question look it is really encouraging to see some of the green shoots that we are seeing in in Vietnam. So you know the government is taking a very proactive approach to help sort of bolster the real estate sector. You know obviously, there was a recently announced Lord landlords, which the government is looking to accelerate.
Speaker Change: Patients should be strong.
Speaker Change: And then late May or may not be differentiating from the lifestyle lifecycle.
Speaker Change: Yeah. Thank you. Thank you for the question look it is really encouraging to see some of the green shoots that we are seeing in Vietnam. So the government is taking a very proactive approach to help to bolster the real estate sector. You know obviously, there was a recently announced landlords, which the government is looking to accelerate.
Speaker Change: From 2025 to earlier this year, so that is really encouraging.
Speaker Change: We think you know one of those landlords in particular around agent Professionalize Asian is gonna be ties in very well with one of our themes around bringing sort of more trust and transparency to the market. So when you think about the professional agent verification that we launched in Q1.
From 2025 earlier this year. So that is really encouraging we think one of those landlords in particular around agent Professionalize Asian is going to be.
Speaker Change: That's really closely tied with what the government is trying to do around organizing the industry and you know we think as the market leader you know were very well position to just capture you know as those those benefits as as the the market does does improve I think underlying consumer demand is strong was up significantly.
Speaker Change: Rising very well with one of our themes around bringing sort of more trust and transparency to the market. So when you think about the professional agent verification that we launched in Q1.
Speaker Change: That's really closely tied with what the government is trying to do around organizing the industry and we think as the market leader, we are a variable opposition to this.
Speaker Change: In Q1 2024 over 2023, so I think that is encouraging so in terms of whether it's going to be sort of a V shaped recovery.
Speaker Change: Those those benefits as the market does does improve I think underlying consumer demand is strong was up significantly in Q1 2020.
Speaker Change: Ora or sort of take longer I think it's a little bit early to tell there I think where we take a lot of confidence is obviously some of the external.
Speaker Change: Things that are happening in the market and we're also using this time internally to become more efficient. So in Q1, we also relaunched our business transformation initiative internally.
Speaker Change: For over 2023, so I think that is encouraging so in terms of whether it's going to be sort of a V shaped recovery.
Speaker Change: Or or sort of take longer I think it's a little bit early to tell there I think where we take a lot of confidence is obviously some of the external things that are happening in the market.
Which is really sort of going to redesign our commercial organization and our go to market strategy. So that's going to really make us more efficient and drive growth when the market recovers I think finally I. Just you know we've got a great team in Vietnam, as well, who is executing very well. So I think these things that are happening externally and internally gave us a lot of <unk>.
Speaker Change: We're using this time internally to become more efficient. So in Q1, we also relaunched our business transformation initiative internally.
Speaker Change: Which is really sort of going to redesign our commercial organization and our go to market strategy. So that's going to really make us more efficient and drive growth when the market recovers I think finally I. Just you know we've got a great team in Vietnam, as well, who is executing very well. So I think these things that are happening externally and internally gives us a lot.
Confidence that when the market does recover you know we're going to be in a very very strong position.
Jeremy: Understood. Thanks, Jeremy cyclic.
Speaker Change: Second question, an on switch gear on argue we're asking took possession issues you guys should I guess slow start of the year just wonder what's the driver behind that and how should we think about the rest of the year on testing tech outlook.
Speaker Change: A lot of confidence that when the market does recover we're going to be in a very very strong position.
Speaker Change #100: Sure. Thanks for the question Yeah, I mean in our results, we sort of put together in a in one line by Fintech and data business and also said help hubs that kind of merged and that thing is a couple of factors and all we did a foskey business was was closed down the end of last year. So that's in our results last year.
Speaker Change #101: Not in this year, so that's partially reflected.
Speaker Change #101: I think also it's.
It's pretty brutal challenging on the Fintech mortgages size the transaction volumes have been down a little bit in Singapore light and that's been a little bit of the pressure on us.
Speaker Change #102: But I think here more generally we have a strong sense of the belief and conviction.
Speaker Change #103: And what we're doing we believe some helpers.
Speaker Change #104: Cracking business going forward and it's got a fantastic nation, Singapore and the data is a huge opportunity I think.
Speaker Change #105: It appears that make $150 million of revenue in Australia alone in a market with great data. So you can imagine the future what we should be able to do.
Speaker Change #105: With that in a market, where there's limited data and we have a lot of that on a proprietary basis. So we're very excited about it but we are market, making rather market, taking I think in all honesty, it's taking us a little longer to gain market traction, but we continue to invest and we expect this year to see a continued.
Speaker Change #106: Continued improvements as we deliver what we hope will be a sizable business in the future.
Joe Dish: Thanks, Joe.
Speaker Change #107: My last question is actually on euro cost.
<unk> expenses.
Speaker Change #108: We are confirming our full year EBITDA margin, but you had a really solid start Australia, Chinook, Singapore EBITDA margin as you hate to record high So just wonder.
Speaker Change #109: How should we think about Trojan takes all your again.
Speaker Change #110: Arjun tranche for the rest of the year and in addition.
Speaker Change #111: What my surprise us an upside versus downside are integral to the public BDC for for the year.
Speaker Change #112: Yeah. Thanks look I think in a way we standby op our predictions for for this year as.
Speaker Change #113: As we sort of reiterated and obviously there is a range there.
Speaker Change #113: I think we're very.
Speaker Change #114: Very positive at the start of the year and very positive for our results for Q1, I think both on the revenue and the cost side on the cost side. We are very disciplined organization. We are we certainly are very careful where we invest and where.
Speaker Change #114: We do we are constantly gaining more efficiencies and better leverage however on a cost side. This is seasonally a I guess a sort of a lower cost period generally due to all the sort of the national holidays marketing spend tends to sort of sort of drop.
Speaker Change #115: And I think we've sort of that's partially reflected in our results, but looking at where we are focused on cost management and focus on delivering improvements in operating leverage but we are also a growth business and you will see some greater investment during the year as the markets move out of the holiday season.
Constantly gaining more efficiencies and better leverage however on the cost side. This is seasonally I guess.
Speaker Change: Lower cost period generally due to all the sort of the national holidays marketing spend tends to sort of drop.
Speaker Change: And I think we've sort of that's partially reflected in our results.
Speaker Change #116: And we intend to keep growing the business and part of that we'll be investing in things like marketing and people et cetera in order to maximize that yield.
Speaker Change: We all hope.
Strong cost management and focus on delivering improvements in operating leverage, but we're also a growth business and you will see some greater investment during the year.
Speaker Change #117: Thank you Bose congrats on good quarter.
Speaker Change: As the markets move out of the holiday season.
Marshall: Thanks Marshall.
Speaker Change: We intend to keep growing the business and part of that we'll be investing in things like marketing and people et cetera in order to maximize that yield.
Juan: Okay. Thanks Juan.
Speaker Change #120: Our next question and by the way anyone else, who wants to ask a question use that raise and function.
Speaker Change: Yeah.
Speaker Change: Thank you Bob and congrats on good quarter.
Speaker Change #120: Nelson Cheung with Citi go ahead.
Marshall: Thanks Marshall.
Juan: Okay. Thanks Juan.
Nelson Cheung: Hi, Jeremy Andrew and thanks for taking my questions and congrats on a solid quarter. So my first question is regarding <unk>.
Speaker Change: Our next question and by the way anyone else, who wants to ask a question use that raise and function Nelson Cheung with Citi go ahead.
Speaker Change #122: Apollo group in Singapore, SBC is very strong.
Speaker Change #123: Double digit growth will offer growth and.
Speaker Change #124: In Austria in Singapore in first quarter, and just wonder what is the major driver driving the Arbor group is it because of the Upselling of charity.
Speaker Change: Hi.
Joe: Joe Thanks for taking my questions and congrats on the solid quarter. So my first question is regarding <unk>.
Speaker Change #124: NRG or product transition et cetera.
Speaker Change: <unk> Group, Inc.
Speaker Change: Port SBC is very strong.
Speaker Change #125: Do we expect them in the trend going to be lost in the rest of two cultures into Atlanta at four and do we have a ticket on the optical in Singapore. This year. Thank you.
Double digit growth with Apple group.
Speaker Change: Upstream in Singapore in first quarter, and just wonder what is the major driver tracking the abaca is it because of the upselling opportunity.
Speaker Change #125: So maybe I'll take care. Thank you for the question Nelson I'll take the first couple of pieces of that question look the ARPA growth is a it's a combination of a number of factors you know it's the the price revision we put through in the business in Q4 last year I mean, it's kind of a greater penetration of some of our.
Speaker Change: <unk> technology or product transition et cetera.
Speaker Change: Do we expect them to trend going to be lost in Nebraska to cultures into Atlanta for and do we have a ticket on the auto group in Singapore. This year. Thank you.
Fuk Lung Cheung: So maybe I'll take the question Nelson I'll take the first couple of pieces of that that question look the ARPA growth is a it's a combination of a number of factors. It's the the price revision we put through the.
Speaker Change #126: <unk> products as well dynamic pricing, which we use to drive yield. So it's a combination of a set of factors are you in terms of.
Speaker Change #127: Where we see the business I think we've got a very exciting roadmap of of more value that we wanted to deliver to our agent customers over the over the next nine months. So I think that's something that's very excited we really do focus on delivering more and more value to.
Speaker Change: The business in Q4 last year.
Speaker Change: Greater penetration of some of our depth products as well dynamic pricing, which we use to drive yield. So it's a combination of a set of factors are you in terms of where.
Speaker Change: Where we see the business I think we've got a very exciting roadmap of more value that we wanted to deliver to our agent customers over the over the next nine months. So I think that's something that's very excited we really do focus on delivering more and more value.
Speaker Change #127: To our customers so.
Speaker Change #128: So I think we feel confident where the Singapore business. It is today and obviously about its future I would point out is what we are still you know.
Speaker Change #128: Relative to the value that we deliver we are still a small piece of the overall commission pool. So I think when we think about growing the business. We think about the exciting product roadmap that we have ahead we.
Speaker Change: To our customers.
Speaker Change: So I think we feel confident where the Singapore business is today and obviously about its future I would point out is that we are still.
Speaker Change #128: We feel confident the business is in a in a in a good spot and we can continue to drive that debt off of growth.
Speaker Change: Relative to the value that we deliver we are still a small piece of the overall commission pool. So I think when we think about growing the business. We think about the exciting product roadmap that we have ahead, we feel confident the business isn't it.
Speaker Change #129: Yeah, and just survived isn't we don't obviously give specific guidance on those kind of numbers, but I think if you look at the trend in history, we generally delivering a 20 plus percent.
Speaker Change: Good spot and we can continue to drive that debt off of growth.
Speaker Change #130: Average revenue per agent growth over the last periods and you know I think that the fundamentals are there for a third.
Speaker Change: Yeah, and just survive this and we don't obviously give specific guidance on those kind of numbers, but I think if you look back at the the trend in history, we generally delivering a 20 plus percent.
Speaker Change #131: Similar sort of growth profile heading out into the future. So I think that some that's very encouraging and I think it's just a combination of.
Speaker Change: Average revenue per agent growth over loss periods and I think that's the fundamentals are there for a similar sort of growth profile heading out into the future. So I think that some that's very encouraging and I think it's just a combination of.
A real sweet spot of the market for us in a great products and also as a you know a great execution by the team as.
Speaker Change #131: Well that.
Speaker Change #132: Because you start strong zelle.
Speaker Change #133: Okay and then my second question is just wanted to follow up on the retina market and we just mentioned that the lithium.
Speaker Change: I have a real sweet spot of the market for us great products and also as a great execution by the team.
Heath: This is heath.
Speaker Change #135: Uh huh.
Speaker Change #136: Hi, higher point in March and just wanted to see.
Speaker Change: As well as movies.
Speaker Change: That strong result.
Speaker Change #137: Two minutes.
Speaker Change: Okay and then my second question is just wanted to follow up on the.
Heath: Does management have served in the next few months April may two we see the trend continue in second quarter.
Speaker Change: Market and we just mentioned that the leap day.
Speaker Change #138: Yes, yes.
Speaker Change #138: Yes.
Speaker Change: Yeah.
Speaker Change: Hi, Hi coin in March and just want to see.
Speaker Change #139: But as I think you know like what like we sort of said on the call that we feel very confident where our Vietnam business is is at the moment. The government's obviously, taking a lot of measures to stimulate demand in the market, which is encouraging because I think if you look at interest rates that Atlanta at multiyear lows.
Speaker Change: Two minutes.
Speaker Change: What does management have served in the next few months like April May do we see the trend continue.
Speaker Change: Coulter and yeah.
Speaker Change: But I think like what like we sort of said on the call.
Speaker Change #139: Nearly.
Speaker Change #140: Consumer demand has come back strongly post the lunar new year holiday period.
Speaker Change: Feel very confident where our Vietnam business is at the moment the government's obviously, taking a lot of measures to stimulate demand in the market, which is encouraging because I think if you look at interest rates that are at multiyear lows clearly.
Speaker Change #141: Look you know the market is is positioned well. We're also taking this time to also.
Speaker Change #142: Focus internally I mentioned, the sort of the business transformation that we announced in Q1, so that's going to really strengthen our go to market allow us to serve our customers better.
Speaker Change: Schumer demand has come back strongly post the lunar new year holiday period. So look you know the market is positioned well. We're also taking this time to also.
Speaker Change #142: Have a much more streamlined go to market so that when that when the market does improve you know we're going to be very well positioned to take advantage of the growth opportunities are in a market like Vietnam really does so you know again, we feel as though the business is in a good position.
Focus internally I mentioned that sort of the business transformation that we announced in Q1, so that's going to really strengthen our go to market allow us to serve our customers better.
Speaker Change #142: We're seeing some positive signals and we're really encouraged.
Joe: To have a much more streamlined go to market so that when that when the market does improve we are going to be very well positioned to take advantage of the growth opportunities in a market like Vietnam really does so again, we feel as though the business is in a good position.
Speaker Change #142: About the about the year ahead.
Speaker Change #143: Thanks, and then my last question is regarding the corporate costs. Since we have seen is a.
Speaker Change #144: Some sequential increase in corporate cost and when the right what would be the change.
Joe: We're seeing some positive signals and we're really encouraged.
Speaker Change: About the about the year ahead.
Speaker Change #145: Our corpus corporate cost structure, and what will be the trend going forward.
Speaker Change #145: Our adjusted EBITDA margin.
Speaker Change: Thanks, and then my last question is regarding the corporate costs since we have seen.
Speaker Change #146: It's hard to say.
Speaker Change #147: Yeah look I think you know I think we're very well positioned from Q1 to achieve the EBITDA numbers that we've got in our forecast when corporate cost of Emirates under control. They have you know there is a sequential increase quarter on quarter on this number sort of more I suppose specific factors for that but I think the trend really is corporate cost as a percentage.
Speaker Change: Some sequential increase in the Coca Cola and wondering what would be the change we've seen a corporation corporate cost structure and what would be the trend going forward.
Speaker Change: Our adjusted EBITDA margin.
Speaker Change: Okay.
Speaker Change: Yeah look I think.
Speaker Change: We're very well positioned from Q1 to achieve the EBITDA numbers that we've got in our forecast when corporate cost very much under control. They have you know there is a sequential increase quarter on quarter on this number sort of more I suppose specific factors for that but I think the trend really is corporate cost as a percentage of revenue just keeps dropping you noticed.
Speaker Change #148: A revenue just keeps dropping in nurses that year on year, and so I think that say.
Speaker Change #149: That's a real positive.
Speaker Change #150: It is a reflection really of the leverage we have.
Speaker Change #151: We're making we've unashamedly invested in <unk>.
Speaker Change #152: Good technology, great people in order to make the company success and set US up for continued high levels of revenue growth in the years to come but we're definitely getting really good leverage out of that and I would expect to see that our corporate cost as a percentage of revenue continued to drop this year and into subsequent years as we gain that leverage and deliver.
That year on year, So I think that's a.
Speaker Change: That's a real positive and that's a reflection really of the leverage we have.
Speaker Change: We're making we've unashamedly invested in good technology, great people in order to make the company's success and set us up for continued high levels of revenue growth in the years to come but we're definitely getting really good leverage out of that and I would expect to see that corporate cost as a percentage of revenue continued to drop.
Speaker Change #152: More EBITDA.
Okay. That's very helpful. Thank you.
Speaker Change #152: Okay.
Speaker Change #153: Reminder, is any other questions. Please use the raised hand function.
Speaker Change: This year and into subsequent years, as we gain that leverage and deliver more EBITDA.
Speaker Change #154: A couple of seconds to see if theres anyone else on chip's question.
Speaker Change: Okay. That's very helpful. Thank you.
Speaker Change #154: Okay.
Speaker Change: Okay.
Speaker Change #155: Seeing no more questions.
Speaker Change: Minder Theres any other questions. Please use the raise hand function.
Speaker Change #155: That's going to conclude the Q&A session I will turn the conference back over to Jeremy for closing remarks.
Speaker Change: We'll wait a couple of seconds to see if theres anyone else wants to ask.
Speaker Change: Question.
Thank you. We believe 2024 is a year of tremendous potential and opportunity. This will be a year, where our solutions insights and expertise play a bigger role in empowering our customers as we power communities to live work and thrive in tomorrow cities, we look forward to sharing our continued progress.
Speaker Change: Okay.
Speaker Change: No more questions.
To conclude the Q&A session I will turn the conference back over to Jeremy for closing remarks.
Jeremy: Thank you. We believe 2024 is a year of tremendous potential and opportunity. This will be a year, where our solutions insights and expertise play a bigger role in empowering our customers as we power communities to live work and thrive in Tomorrow cities, we look forward to sharing our continued progress with.
Speaker Change #156: With you next quarter. Thank you all very much for joining us today Goodbye.
Speaker Change #157: Alright. This concludes our conference call. Thank you for attending the presentation you may now disconnect.
See you next quarter. Thank you all very much for joining us today Goodbye.
Speaker Change: Alright. This concludes the conference call. Thank you for attending the presentation you may now disconnect.