NYSE:PGRU PropertyGuru Group Q1 2024 Earnings Report Earnings HistoryForecast PropertyGuru Group EPS ResultsActual EPS-$0.03Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/APropertyGuru Group Revenue ResultsActual Revenue$27.24 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/APropertyGuru Group Announcement DetailsQuarterQ1 2024Date5/21/2024TimeN/AConference Call DateTuesday, May 21, 2024Conference Call Time7:30AM ETConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Earnings HistoryCompany ProfilePowered by PropertyGuru Group Q1 2024 Earnings Call TranscriptProvided by QuartrMay 21, 2024 ShareLink copied to clipboard.There are 7 speakers on the call. Operator00:00:00Places and Joe Disch, CFO. Before we get started, a few reminders. Firstly, our results are available in the earnings release that can be found in the Investor 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. Operator00:00:19Thirdly, we'll be making forward looking statements, including, but not limited to statements regarding our future results and expectations for the business. These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to vary materially. Please refer to our earnings release and the SEC filings for more information regarding risk factors. Forward looking 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 IFRS financial measures. Operator00:00:50For a reconciliation of non IFRS financial measures to the most directly comparable IFRS metric, please see our earnings press release. Lastly, all dollar references are in Singapore dollars unless otherwise stated. With that, let me turn the call over to Jeremy. Speaker 100:01:06Thanks very much, Nat. Thank you for joining us for our Q1 2020 earnings conference call. I've been the Managing Director of PropertyGuru's marketplaces business for the past 6 years and it's great to be part of today's call. PropertyGuru recently marked its 2 year anniversary of being a publicly listed company. We thought this would be a good opportunity for me to update everyone on our continued progress. Speaker 100:01:29Now 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. Amongst highlights, our Singapore performance illustrated the value proposition we deliver to our customers even during a period of slower market activity. We also saw some early signs of property market recovery in Vietnam and Malaysia. The Q1 witnessed governments across our region introducing robust policies that will help accelerate growth in the short to medium term and uplift property market sentiments. Speaker 100:02:06I will now zoom in on the key updates and property trends from our markets this quarter. In Singapore, the government continues to project growth in the 1% to 3% range for 2024, with Q1 GDP coming in at the high end of the range. Of note, construction related GDP continues to outperform overall levels and was up over 4% in the Q1, which bodes well for future housing supply. No near term changes in interest rates are expected as the Singapore Central Bank maintains its current monetary policy while continuing to monitor inflation. The Singapore property market has had a tempered start to the year as higher housing prices, elevated interest rates and overall market uncertainty have weighed on consumer demand. Speaker 100:02:53On the sales side, our property sale demand index was down 17% in the quarter, while both prices and supply were up 1% compared to the prior year's quarter. On the rental side, our rental demand index was 38% lower than in the Q1 of 2023 As a result of both the reduced demand and a 66% increase in supply, rental prices were down 7% from a year ago. Whether it's sales or rental, the cautious buyer sentiment in Singapore drives greater agent competition, highlighting our sweet spot in providing vital value add solutions for agents when transaction volumes slow down. As a result, our top line continues to grow despite softer market conditions, underscoring the optimism we have in our Singapore business going forward. In Malaysia, housing affordability continues to be the primary issue in 2024. Speaker 100:03:47Malaysian 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 their current level in March as inflation remains in check. While the limited availability of affordable mid range housing and the price gap between buyers and sellers in Malaysia remain 2 of the biggest impediments to a property market recovery, we do see some signs of improving buyer interest. According to our recent Malaysian consumer sentiment survey, 1 in 3 Malaysians intend to buy a property in the next 2 years, even if prices continue to rise. This bodes well for the prospects of a market recovery in the medium term. Speaker 100:04:33In Vietnam, while 2023 was a challenging year, we have begun to see green shoots of recovery in 2024. On March 24th, sales listings hit a 12 month high on our Batong Son platform and our market demand index was up 15% from the Q1 of 2023. In addition, the government of Vietnam is working hard to support the property market with additional catalysts. One important way it is addressing this is by trying to bring forward the effective date for 3 newly amended real estate laws from 2025 to July 1, 2024. These laws would provide for more consistent and realistic land appraisals, tighten developer requirements across the project's life cycle, relax rules on foreign ownership and better organize the agent community. Speaker 100:05:20As 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 all agents to be affiliated with an agency. According to our recent survey, 65% of consumers view these new laws as positive actions, which should clearly help sentiment. With respect to credit, bank lending rates have decreased in Vietnam since the Prime Minister called for banks to publish average bank lending rates in March. We remain bullish on Vietnam's long term prospects, which are supported by its population demographics, growing digitization and high growth potential. Infrastructure investments are facilitating greater urbanization and contributing to positive trends in the housing sector, reinforcing our confidence in the market. Speaker 100:06:12Let me now provide an update on the recent product progress within the Group. PropertyGuru kicked off 2024 with the introduction of new solutions for our customers, coupled with a sustained uptake of previously launched offerings. Central to our DNA, we continue to craft pioneering technology aimed at helping customers make confident property decisions. Our strategic integration of machine learning and generative AI into product development and business operations continues to accelerate our innovation. A prime example of this is our AI video feature, which was rolled out in Singapore. Speaker 100:06:48This 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. 60% of agents who engage with the AI video feature chose to incorporate it into their listing gallery. In Vietnam, 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 independently verify agent authenticity, enabling further trust and transparency on our marketplace. The response has been very encouraging with more than 500 agents verified in the 1st week alone. Speaker 100:07:36Lead management, which we launched last year, supports agents with powerful lead related insights that help them close deals faster. It has garnered increasing approval among agents as evidenced by a recent survey that shows a 25% increase in satisfaction levels for agents who use a solution. Moving on to our data and software solutions business. Data Sense, our proprietary data and analytics tool brings valuable insights to our customers, helping them confidently make critical strategic investment decisions. February saw the introduction of data sense self serve for Malaysian agents, facilitating their seamless access to our data sense modules. Speaker 100:08:18They can now leverage our comprehensive data resources to research, negotiate and advise using timely and relevant insights. In March, we rolled out Demand Analytics Pro in Thailand and now provide coverage in all four markets. Demand Analytics Pro utilizes proprietary data to analyze supply and demand dynamics at all market levels from as large as countrywide to a small township or project level. 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. In FinTech, we've made good progress with our digital application for in principal approval and home loans, which we announced last year. Speaker 100:09:03Over half of our applications are now being completed through the guided digital application journey. A select number of our bank partners benefit from an advanced experience that includes features like digital signing. And as a result, their digital application adoption rate is up to 70% of overall submissions. These digital experiences are especially appreciated by consumers, with over 80% of users having consumer satisfaction ratings of either 4 or 5 stars in ongoing surveys. 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 100:09:49As a final update, I'm proud to share that we have recently released our 1st sustainability report supported by the recently launched Gurus For Good, our sustainability mandate. I will now hand the call over to Joe to walk you through our financials. Speaker 200:10:05Thanks, Jeremy. PropertyGurus started off 2024 with another solid quarter of double digit revenue growth and double digit adjusted EBITDA margin. Revenue was up 12% to $37,000,000 in the Q1 as we navigated a phased recovery in Vietnam and Malaysia. 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 Q1 of 2023. The ongoing strength in Singapore was especially helpful, as was the success of our active cost management, with PropertyGuru continuing to improve profitability and this quarter delivering margin expansion in all of our marketplaces regardless of top line performance. Speaker 200:10:59We continue to set ourselves up to benefit from our technology investments and prudent cost management as our property markets rebound and Southeast Asia returns to its position as a world leader in economic transformation and growth. Now for more details on our marketplace businesses. In Singapore, revenue was $24,000,000 in the 1st quarter, up 25% from the prior year quarter and our adjusted EBITDA increased to $19,000,000 for 79% margin. Once again, increased adoption of our market leading products and active cost management helped us deliver another quarter of strong results. Our Singapore agent base grew again this quarter. Speaker 200:11:42We now have over 16,400 agents. Our renewal rate was 77% for the Q1 and the quarterly average revenue per agent, or ARPA, was up 22%. In Malaysia, revenue was $7,000,000 and adjusted EBITDA was $4,000,000 both flat with the Q1 of 2023, with an adjusted EBITDA margin of 52%. On a local currency basis, revenue was up 5% in the quarter. We believe lower interest rates and easing in inflation concerns will help improve conditions as we move through 2024. Speaker 200:12:19In the meantime though, we will continue to focus on product development and optimizing our customer value proposition. In Vietnam, revenue was $3,000,000 in the quarter, flat with the Q1 of 2023 and adjusted EBITDA was breakeven. Of note, on a local currency basis, revenue was up 3%. I would also add that following 4 quarters of double digit decreases in revenue, our top line has begun to improve. The average revenue per listing in Vietnam was up 13% in the quarter, but this growth was offset by a 13% drop in listings to 1,000,000. Speaker 200:12:55As Jeremy noted, despite the overall drop in listings in the quarter, we are encouraged by the 12 month high point that was reached in late March. We believe the government's actions to improve consumer sentiment and facilitate a recovery in the property market should help as we move through the year. More importantly, it appears as if consumer sentiment is turning positive again. Turning to the balance sheet, we ended the quarter with $300,000,000 in cash. In summary, our results this quarter were a solid start to 2024, Following double digit revenue growth and double digit adjusted EBITDA margin in 2023, we continued this trajectory in the Q1, which is traditionally a quiet seasonal quarter given multiple national holidays. Speaker 200:13:43Profitable growth is more than a phrase for us. It represents the intersection of active cost management, targeted investment, transformational technology and hard work and is how we are future proofing our core business every day. With respect to our published outlook, full year 2024 revenue remains between $165,000,000 $180,000,000 and adjusted EBITDA remains between $22,000,000 £26,000,000 We are 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 and Southeast Asia gathers further momentum. I would like to thank all our gurus for their hard work and our customers for their continued support. I will now turn the call over for questions. Speaker 200:14:30Operator, we're ready for our first question. Speaker 300:14:34Thank you, Joe. We will now take your questions. Please use the raise hand function if you want to ask a question. To facilitate the Q and A session, I will invite you to ask the question and unmute you. Please state your name and firm before asking the question. Speaker 300:14:50Our first question is going to come from Nick Jones. Speaker 400:14:57Hi, Jeremy. Hi, Joe. Nick Jones, Citizens JMP. My first question, can you talk about just your relative kind of share gains or the share dynamic of the Property Group business in your key markets versus kind of what's happening in the underlying markets? Top line growth has been decent, Vietnam since we turned the corner. Speaker 400:15:18But when we think about Singapore and Malaysia, maybe just the broader business, are there kind of clear share gains in the marketplace business or just broadly? Or can you maybe add just a little context as to property Guru's performance versus kind of underlying market Speaker 100:15:34dynamics? Yeah, yeah. Thanks for the question, Nick. Look, we feel really confident where we are positioned in all of our markets, Singapore, Malaysia, Vietnam and Thailand. I think obviously, we spoke a little bit during call, you know, the Q1 was a little bit of a quieter quarter here in Singapore in particular. Speaker 100:15:54I think, you know, we've seen, you know, the ebbs and flows in the market before. And 2 things typically happen during these sort of periods. First of all, is that agents definitely bias their spend to channels where they get the greatest ROI. And in all of our markets, you know, we have very strong positions. So we're definitely a beneficiary in that respect. Speaker 100:16:15Secondly, we also see that, you know, in a market like Singapore, at the moment, agents are having to work harder, you know, to get leads for their listings, right? So, you know, given the depth products that we offer to our agent customers, you know, through greater reach and greater leads, we see more and more agents using our depth products. So I think, you know, 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're sort of well poised specifically in markets like Malaysia and Vietnam, as they begin to recover into the year. Speaker 400:16:54And maybe just a finer point, I think in the press release, it was 1 in 3 millennial agents that's going to buy property in the next 2 years. You know, piggybacking off my last question, you know, how should we be thinking about that kind of flow through into PropertyGurus model? I mean, can can can you capture the vast majority of that? Will that just help drive incremental share gains, specifically in the Malaysian market? Speaker 100:17:20Yes. So we enjoy, you know, very, you know, very strong position in a in a Malaysia market. And and you're right. I mean, it's great to see the underlying consumer demand is strong with with 1 in 3 Malaysians intending to buy a property in the next 2 years. There are some encouraging signs in the Malaysia market. Speaker 100:17:37Q1 GDP was at 4%, which was encouraging. The inventory overhang reduced at the end of 2023. And then also, it's good to see sort of the political 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 Malaysian 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 400:18:07Great. And last question, just on, you know, I think it was 60% of agents using AI video features after the first trial. How is AI showing up in the business? Is this kind of value add is increasing revenue or ARPA? And how impactful look in AI and kind of your product roadmap going forward? Speaker 100:18:30Yeah. So AI is look AI is a big part of our product roadmap going forward. Obviously, we we we referenced the sort of the AI video feature that we launched in Singapore and this is really focused in 2 ways. You know, the first is, you know, a better experience for for our consumers, our property seekers, right? They clearly want more of an immersive content experience and, you know, AI helps leverage that. Speaker 100:18:52So, you know, that's one element, right? GuruPix, which he spoke about last quarter, is another element where it really does increase the consumer immersive content and increase consumer engagement. So that's on the first side. On the second side, you know, it's really a lot of efficiency gains for for our agent customers as well. Right? Speaker 100:19:12So now instead of of having to take a video of a listing, you know, we can help them stitch together a video based on those listing images. So, you know, on the one hand, obviously, it's a great experience for our consumers and our property seekers. On the other hand, you know, it drives real time and efficiency gains for our agent customers. So I think that's where we're focused at the moment. Over time, we'll sort of see, you know, how we incorporate this into various subscription packages, you know, to potentially drive ARPA. Speaker 100:19:38But at the moment, really focused on driving a better consumer consumer experience and more efficiency for our aging customers. Speaker 400:19:47Great. Thanks, Jeremy. Thanks, Joe. Speaker 200:19:50Thanks. Speaker 300:19:53Okay. Excuse me. Our next question is going to come from Phon Jiang of Benchmark. Phon, go ahead. Speaker 500:20:11Just want to follow-up on your commentary around the turnaround of your Vietnam and Malaysia. I think like we see some early signs of market recovery. Just want to get a better sense of the pace and magnitude on the recovery side. Your last cycle, especially in Vietnam, we actually saw a V shape recovery. Just wonder how should we think about recovery, I guess, pace for this one? Speaker 500:20:40Any puts and takes that may or may not be differentiating from the last cycle? Speaker 100:20:49Yeah. Thank you. Thank you for the question. Look, you know, it is really encouraging to see some of the green shoots that we are seeing in Vietnam. So, you know, the government is taking a very proactive approach to help sort of bolster the real estate sector. Speaker 100:21:02You know, obviously there was a recently announced landlords which the government is looking to accelerate from 2025 to earlier this year. So that is really encouraging. You know, we think, you know, one of those landlords in particular around agent professionalization is going to be, you know, 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, you know, that's really closely tied with what the government's trying to do around organizing the industry. And, you know, we think as a market leader, you know, we're very well positioned to just capture, you know, those benefits as the market does improve. Speaker 100:21:44I think underlying consumer demand is strong, was up significantly 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, you know, 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. And we're also using this time internally to become more efficient. Speaker 100:22:11So in Q1, we also launched a business transformation initiative internally, 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's executing very well. So I think these things that are happening externally and internally, give us a lot of confidence that when the market does recover, you know, we're going to be in a very, very strong position. Speaker 500:22:43Understood. Thanks, Jeremy. Second question on Switchgear on your Fintech business. It seems like a slow start of the year. Just wonder what's the driver behind it? Speaker 500:22:56And how should we think about the rest of the year on the fintech outlook? Speaker 200:23:01Sure. Thanks for the question. Yes, I mean, in our results, we sort of put together in one line both fintech and Data Business and also Send Helper, so they're kind of merged in there. I think there's a couple of factors. We did our FastKey business was closed down at the end of last year, so that's in the results last year and not in this year. Speaker 200:23:21So that's partially reflected. I think also it's probably a little challenging on the fintech mortgages side. The transaction volumes have been down a little bit in Singapore of late, that's put a little bit of pressure on us. But I think more generally, we have a strong sense of belief and conviction in what we're doing. We believe Send Helper is a cracking business going forward and has got a fantastic niche in Singapore. Speaker 200:23:48And that data is a huge opportunity. I think there's peers that make $150,000,000 of revenue in Australia alone in a market with great data. So imagine the future what we should be able to do with 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 than 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 continued improvement as we deliver what we hope will be a sizable business in the future. Speaker 500:24:28Thanks, Joe. My last question is actually on your cost expenses. I mean, you confirm your full year EBITDA margin, but you had a really solid start. So your Singapore EBITDA margin actually hit a record high. So I just wonder, how should we think about the puts and takes on your, again, margin trends for the rest of the year? Speaker 500:24:53In addition, what might surprise us on upside versus downside in terms of profitability for the year? Speaker 200:25:02Yes, thanks. Look, I think we stand by our predictions for this year, as we sort of reiterate it. And I think I think both on the revenue and the cost side. On the cost side, we are a very disciplined organization. We certainly are very careful where we invest and we do we are constantly gaining more efficiencies and better leverage. Speaker 200:25:32However, on the cost side, this is seasonally, I guess, sort of a lower cost period generally due to all the sort of taking the national holidays, marketing spends tends to sort of drop and I think we've sort of that's partially reflected in our results. But look, we are focused on cost management, focused 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. And we intend to keep growing the business and part of that will be investing in things like marketing and people, etcetera, in order to maximize that yield. Speaker 300:26:21Okay. Thanks, Juan. Our next question and by the way, anyone else who wants to ask a question, use that raise hand function. Nelson Chong with Speaker 600:26:36Citi. Singapore as we see a very strong double digit growth for ARPA growth in Singapore in Q1. And just wonder what is the major driver, driving the ABBA Group. Is it because of the upselling opportunity, technology or product transition, etcetera? And, do we expect similar trend going to be last in the rest of the quarters in 2024? Speaker 600:27:09And do we have a target on the ARPU growth in Singapore this year? Thank you. Speaker 100:27:15So maybe I'll take 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 price revision we put through in the business in Q4 last year. You know, it's greater penetration of some of our depth products as well, dynamic pricing, which we use to drive yield. Speaker 100:27:38So it's a combination of sort of factors. You know, in terms of, you know, where we see the business, I think, you know, we've got a very exciting roadmap of more value that we wanted to deliver to our agent customers over the next 9 months. So I think, you know, that's something that's very exciting. We really do focus on delivering more and more value to our customers. You know, I think, you know, we feel confident where the Singapore business is today and obviously about its future. Speaker 100:28:07I would point out, you know, that we are still, you know, 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. You know, we feel confident the business is in a good spot and we can continue to drive that ARPA growth. Speaker 200:28:29Yes. And just to add, we don't obviously give specific guidance on those kind of numbers. But I think if you look back at the trend in history, we're generally delivering a 20 plus percent average revenue per agent growth over last periods. And I think the fundamentals are there for a similar sort of growth profile heading out into the future. So I think that's very encouraging and I think it's just a combination of of a real sweet spot in the market for us, great products and also, I'd say, great execution by the team as well as produced that strong result. Speaker 600:29:05Okay. And then my second question is just want to follow-up on the wetland market. And we just mentioned that the listing in wetland has hit a high higher point in March. And just want to see what do what does management observe in the next few months, like April May? Do we see the trend continue in the second quarter? Speaker 600:29:28And yeah. Speaker 300:29:31Look, I Speaker 100:29:31think, like we sort of said on the call, look, we feel very confident where Vietnam business is at the moment. The government's obviously taking a lot of measures to stimulate demand in the market, which is encouraging. I think if you look at interest rates that are at multi year lows, clearly, you know, consumer 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, you know, this time to also, you know, focus internally. Speaker 100:30:05I 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, you know, to have a much more streamlined go to market. So that when that, you know, when the market does improve, you know, we're going to be very well positioned to take advantage of the growth opportunities that, you know, a market like Vietnam really does. So, you know, again, we feel as though, you know, the business is in a good position. You know, we're seeing some positive signals and we're really encouraged about the year ahead. Speaker 600:30:38Thanks. And then my last question is regarding the corporate cost. Since we have seen some sequential increase in the corporate cost, I'm wondering what would be the change within our mix corporate cost structure and what would be the trend going forward in order to achieve our adjusted EBITDA margin target? Thank you. Speaker 200:30:58Yes. Look, I think we are very well positioned from Q1 to achieve the EBITDA numbers that we have got on our forecast. I mean corporate costs are very much under control. They have there is a sequential increase quarter on quarter and there's a number of sort of more, I suppose, specific factors for that. But I think the trend really is the corporate costs as a percentage of revenue just keeps dropping. Speaker 200:31:20You notice that year on year. So I think that's a real positive and that's a reflection really of the leverage we are making. We have unashamedly invested in good technology, great people in order to make the company a 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 costs as a percentage of revenue continue to drop this year and into subsequent years as we gain that leverage and deliver more EBITDA. Speaker 600:31:54Okay, that's very helpful. Thank you. Speaker 300:31:59Okay. As a reminder, if there's any other questions, please use the raised hand function. We'll wait a couple of seconds to see if there's anyone else who wants to ask a question. Okay. Seeing no more questions, that's going to conclude the Q and A session. Speaker 300:32:22I'll turn the conference back over to Jeremy for closing remarks. Speaker 100:32:26Thank 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's cities. We look forward to sharing our continued progress with you next quarter. Thank you all very much for joining us today. Speaker 100:32:49Goodbye. Speaker 300:32:52All right. This concludes the conference call. Thank you for attending the presentation. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallPropertyGuru Group Q1 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K) PropertyGuru Group Earnings HeadlinesPropertyGuru cuts 174 jobs, shuts down three business unitsFebruary 18, 2025 | msn.comPropertyGuru Group appoints Lewis Ng as new CEOJanuary 14, 2025 | msn.comFrom Social Security to Social Prosperity?In less than a decade, Social Security could be out of money. But a surprising plan from Trump’s inner circle may not just save the system — it could unlock a major opportunity for savvy investors. Financial insider Jim Rickards calls it “Social Prosperity,” and says those who act now could see the biggest gains.April 26, 2025 | Paradigm Press (Ad)Outstanding resort projects, portfolios take centre stage at 2024 PropertyGuru Asia Property ...December 16, 2024 | gurufocus.comEQT Completes Acquisition of PropertyGuruDecember 13, 2024 | businesswire.comCCCS approves PropertyGuru acquisition by HedychiumDecember 9, 2024 | msn.comSee More PropertyGuru Group Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like PropertyGuru Group? Sign up for Earnings360's daily newsletter to receive timely earnings updates on PropertyGuru Group and other key companies, straight to your email. Email Address About PropertyGuru GroupPropertyGuru Group (NYSE:PGRU) operates digital property classifieds marketplaces that connects homeowners and tenants with verified home service providers in Singapore, Vietnam, Malaysia, Thailand, and Indonesia. The company offers digital and marketing services for developers. It also offers data and sales process automation products. In addition, the company provides a range of data products and services for agents/agencies, property developers and valuers, and financial institution customers. It serves agents and developers to advertise residential and commercial properties for sale or rent to property seekers. PropertyGuru Group Limited was founded in 2007 and is based in Singapore.View PropertyGuru Group ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Markets Think Robinhood Earnings Could Send the Stock UpIs the Floor in for Lam Research After Bullish Earnings?Market Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Upcoming Earnings Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Mondelez International (4/29/2025)PayPal (4/29/2025)Starbucks (4/29/2025)DoorDash (4/29/2025)Honeywell International (4/29/2025)Regeneron Pharmaceuticals (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 7 speakers on the call. Operator00:00:00Places and Joe Disch, CFO. Before we get started, a few reminders. Firstly, our results are available in the earnings release that can be found in the Investor 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. Operator00:00:19Thirdly, we'll be making forward looking statements, including, but not limited to statements regarding our future results and expectations for the business. These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to vary materially. Please refer to our earnings release and the SEC filings for more information regarding risk factors. Forward looking 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 IFRS financial measures. Operator00:00:50For a reconciliation of non IFRS financial measures to the most directly comparable IFRS metric, please see our earnings press release. Lastly, all dollar references are in Singapore dollars unless otherwise stated. With that, let me turn the call over to Jeremy. Speaker 100:01:06Thanks very much, Nat. Thank you for joining us for our Q1 2020 earnings conference call. I've been the Managing Director of PropertyGuru's marketplaces business for the past 6 years and it's great to be part of today's call. PropertyGuru recently marked its 2 year anniversary of being a publicly listed company. We thought this would be a good opportunity for me to update everyone on our continued progress. Speaker 100:01:29Now 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. Amongst highlights, our Singapore performance illustrated the value proposition we deliver to our customers even during a period of slower market activity. We also saw some early signs of property market recovery in Vietnam and Malaysia. The Q1 witnessed governments across our region introducing robust policies that will help accelerate growth in the short to medium term and uplift property market sentiments. Speaker 100:02:06I will now zoom in on the key updates and property trends from our markets this quarter. In Singapore, the government continues to project growth in the 1% to 3% range for 2024, with Q1 GDP coming in at the high end of the range. Of note, construction related GDP continues to outperform overall levels and was up over 4% in the Q1, which bodes well for future housing supply. No near term changes in interest rates are expected as the Singapore Central Bank maintains its current monetary policy while continuing to monitor inflation. The Singapore property market has had a tempered start to the year as higher housing prices, elevated interest rates and overall market uncertainty have weighed on consumer demand. Speaker 100:02:53On the sales side, our property sale demand index was down 17% in the quarter, while both prices and supply were up 1% compared to the prior year's quarter. On the rental side, our rental demand index was 38% lower than in the Q1 of 2023 As a result of both the reduced demand and a 66% increase in supply, rental prices were down 7% from a year ago. Whether it's sales or rental, the cautious buyer sentiment in Singapore drives greater agent competition, highlighting our sweet spot in providing vital value add solutions for agents when transaction volumes slow down. As a result, our top line continues to grow despite softer market conditions, underscoring the optimism we have in our Singapore business going forward. In Malaysia, housing affordability continues to be the primary issue in 2024. Speaker 100:03:47Malaysian 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 their current level in March as inflation remains in check. While the limited availability of affordable mid range housing and the price gap between buyers and sellers in Malaysia remain 2 of the biggest impediments to a property market recovery, we do see some signs of improving buyer interest. According to our recent Malaysian consumer sentiment survey, 1 in 3 Malaysians intend to buy a property in the next 2 years, even if prices continue to rise. This bodes well for the prospects of a market recovery in the medium term. Speaker 100:04:33In Vietnam, while 2023 was a challenging year, we have begun to see green shoots of recovery in 2024. On March 24th, sales listings hit a 12 month high on our Batong Son platform and our market demand index was up 15% from the Q1 of 2023. In addition, the government of Vietnam is working hard to support the property market with additional catalysts. One important way it is addressing this is by trying to bring forward the effective date for 3 newly amended real estate laws from 2025 to July 1, 2024. These laws would provide for more consistent and realistic land appraisals, tighten developer requirements across the project's life cycle, relax rules on foreign ownership and better organize the agent community. Speaker 100:05:20As 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 all agents to be affiliated with an agency. According to our recent survey, 65% of consumers view these new laws as positive actions, which should clearly help sentiment. With respect to credit, bank lending rates have decreased in Vietnam since the Prime Minister called for banks to publish average bank lending rates in March. We remain bullish on Vietnam's long term prospects, which are supported by its population demographics, growing digitization and high growth potential. Infrastructure investments are facilitating greater urbanization and contributing to positive trends in the housing sector, reinforcing our confidence in the market. Speaker 100:06:12Let me now provide an update on the recent product progress within the Group. PropertyGuru kicked off 2024 with the introduction of new solutions for our customers, coupled with a sustained uptake of previously launched offerings. Central to our DNA, we continue to craft pioneering technology aimed at helping customers make confident property decisions. Our strategic integration of machine learning and generative AI into product development and business operations continues to accelerate our innovation. A prime example of this is our AI video feature, which was rolled out in Singapore. Speaker 100:06:48This 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. 60% of agents who engage with the AI video feature chose to incorporate it into their listing gallery. In Vietnam, 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 independently verify agent authenticity, enabling further trust and transparency on our marketplace. The response has been very encouraging with more than 500 agents verified in the 1st week alone. Speaker 100:07:36Lead management, which we launched last year, supports agents with powerful lead related insights that help them close deals faster. It has garnered increasing approval among agents as evidenced by a recent survey that shows a 25% increase in satisfaction levels for agents who use a solution. Moving on to our data and software solutions business. Data Sense, our proprietary data and analytics tool brings valuable insights to our customers, helping them confidently make critical strategic investment decisions. February saw the introduction of data sense self serve for Malaysian agents, facilitating their seamless access to our data sense modules. Speaker 100:08:18They can now leverage our comprehensive data resources to research, negotiate and advise using timely and relevant insights. In March, we rolled out Demand Analytics Pro in Thailand and now provide coverage in all four markets. Demand Analytics Pro utilizes proprietary data to analyze supply and demand dynamics at all market levels from as large as countrywide to a small township or project level. 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. In FinTech, we've made good progress with our digital application for in principal approval and home loans, which we announced last year. Speaker 100:09:03Over half of our applications are now being completed through the guided digital application journey. A select number of our bank partners benefit from an advanced experience that includes features like digital signing. And as a result, their digital application adoption rate is up to 70% of overall submissions. These digital experiences are especially appreciated by consumers, with over 80% of users having consumer satisfaction ratings of either 4 or 5 stars in ongoing surveys. 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 100:09:49As a final update, I'm proud to share that we have recently released our 1st sustainability report supported by the recently launched Gurus For Good, our sustainability mandate. I will now hand the call over to Joe to walk you through our financials. Speaker 200:10:05Thanks, Jeremy. PropertyGurus started off 2024 with another solid quarter of double digit revenue growth and double digit adjusted EBITDA margin. Revenue was up 12% to $37,000,000 in the Q1 as we navigated a phased recovery in Vietnam and Malaysia. 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 Q1 of 2023. The ongoing strength in Singapore was especially helpful, as was the success of our active cost management, with PropertyGuru continuing to improve profitability and this quarter delivering margin expansion in all of our marketplaces regardless of top line performance. Speaker 200:10:59We continue to set ourselves up to benefit from our technology investments and prudent cost management as our property markets rebound and Southeast Asia returns to its position as a world leader in economic transformation and growth. Now for more details on our marketplace businesses. In Singapore, revenue was $24,000,000 in the 1st quarter, up 25% from the prior year quarter and our adjusted EBITDA increased to $19,000,000 for 79% margin. Once again, increased adoption of our market leading products and active cost management helped us deliver another quarter of strong results. Our Singapore agent base grew again this quarter. Speaker 200:11:42We now have over 16,400 agents. Our renewal rate was 77% for the Q1 and the quarterly average revenue per agent, or ARPA, was up 22%. In Malaysia, revenue was $7,000,000 and adjusted EBITDA was $4,000,000 both flat with the Q1 of 2023, with an adjusted EBITDA margin of 52%. On a local currency basis, revenue was up 5% in the quarter. We believe lower interest rates and easing in inflation concerns will help improve conditions as we move through 2024. Speaker 200:12:19In the meantime though, we will continue to focus on product development and optimizing our customer value proposition. In Vietnam, revenue was $3,000,000 in the quarter, flat with the Q1 of 2023 and adjusted EBITDA was breakeven. Of note, on a local currency basis, revenue was up 3%. I would also add that following 4 quarters of double digit decreases in revenue, our top line has begun to improve. The average revenue per listing in Vietnam was up 13% in the quarter, but this growth was offset by a 13% drop in listings to 1,000,000. Speaker 200:12:55As Jeremy noted, despite the overall drop in listings in the quarter, we are encouraged by the 12 month high point that was reached in late March. We believe the government's actions to improve consumer sentiment and facilitate a recovery in the property market should help as we move through the year. More importantly, it appears as if consumer sentiment is turning positive again. Turning to the balance sheet, we ended the quarter with $300,000,000 in cash. In summary, our results this quarter were a solid start to 2024, Following double digit revenue growth and double digit adjusted EBITDA margin in 2023, we continued this trajectory in the Q1, which is traditionally a quiet seasonal quarter given multiple national holidays. Speaker 200:13:43Profitable growth is more than a phrase for us. It represents the intersection of active cost management, targeted investment, transformational technology and hard work and is how we are future proofing our core business every day. With respect to our published outlook, full year 2024 revenue remains between $165,000,000 $180,000,000 and adjusted EBITDA remains between $22,000,000 £26,000,000 We are 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 and Southeast Asia gathers further momentum. I would like to thank all our gurus for their hard work and our customers for their continued support. I will now turn the call over for questions. Speaker 200:14:30Operator, we're ready for our first question. Speaker 300:14:34Thank you, Joe. We will now take your questions. Please use the raise hand function if you want to ask a question. To facilitate the Q and A session, I will invite you to ask the question and unmute you. Please state your name and firm before asking the question. Speaker 300:14:50Our first question is going to come from Nick Jones. Speaker 400:14:57Hi, Jeremy. Hi, Joe. Nick Jones, Citizens JMP. My first question, can you talk about just your relative kind of share gains or the share dynamic of the Property Group business in your key markets versus kind of what's happening in the underlying markets? Top line growth has been decent, Vietnam since we turned the corner. Speaker 400:15:18But when we think about Singapore and Malaysia, maybe just the broader business, are there kind of clear share gains in the marketplace business or just broadly? Or can you maybe add just a little context as to property Guru's performance versus kind of underlying market Speaker 100:15:34dynamics? Yeah, yeah. Thanks for the question, Nick. Look, we feel really confident where we are positioned in all of our markets, Singapore, Malaysia, Vietnam and Thailand. I think obviously, we spoke a little bit during call, you know, the Q1 was a little bit of a quieter quarter here in Singapore in particular. Speaker 100:15:54I think, you know, we've seen, you know, the ebbs and flows in the market before. And 2 things typically happen during these sort of periods. First of all, is that agents definitely bias their spend to channels where they get the greatest ROI. And in all of our markets, you know, we have very strong positions. So we're definitely a beneficiary in that respect. Speaker 100:16:15Secondly, we also see that, you know, in a market like Singapore, at the moment, agents are having to work harder, you know, to get leads for their listings, right? So, you know, given the depth products that we offer to our agent customers, you know, through greater reach and greater leads, we see more and more agents using our depth products. So I think, you know, 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're sort of well poised specifically in markets like Malaysia and Vietnam, as they begin to recover into the year. Speaker 400:16:54And maybe just a finer point, I think in the press release, it was 1 in 3 millennial agents that's going to buy property in the next 2 years. You know, piggybacking off my last question, you know, how should we be thinking about that kind of flow through into PropertyGurus model? I mean, can can can you capture the vast majority of that? Will that just help drive incremental share gains, specifically in the Malaysian market? Speaker 100:17:20Yes. So we enjoy, you know, very, you know, very strong position in a in a Malaysia market. And and you're right. I mean, it's great to see the underlying consumer demand is strong with with 1 in 3 Malaysians intending to buy a property in the next 2 years. There are some encouraging signs in the Malaysia market. Speaker 100:17:37Q1 GDP was at 4%, which was encouraging. The inventory overhang reduced at the end of 2023. And then also, it's good to see sort of the political 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 Malaysian 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 400:18:07Great. And last question, just on, you know, I think it was 60% of agents using AI video features after the first trial. How is AI showing up in the business? Is this kind of value add is increasing revenue or ARPA? And how impactful look in AI and kind of your product roadmap going forward? Speaker 100:18:30Yeah. So AI is look AI is a big part of our product roadmap going forward. Obviously, we we we referenced the sort of the AI video feature that we launched in Singapore and this is really focused in 2 ways. You know, the first is, you know, a better experience for for our consumers, our property seekers, right? They clearly want more of an immersive content experience and, you know, AI helps leverage that. Speaker 100:18:52So, you know, that's one element, right? GuruPix, which he spoke about last quarter, is another element where it really does increase the consumer immersive content and increase consumer engagement. So that's on the first side. On the second side, you know, it's really a lot of efficiency gains for for our agent customers as well. Right? Speaker 100:19:12So now instead of of having to take a video of a listing, you know, we can help them stitch together a video based on those listing images. So, you know, on the one hand, obviously, it's a great experience for our consumers and our property seekers. On the other hand, you know, it drives real time and efficiency gains for our agent customers. So I think that's where we're focused at the moment. Over time, we'll sort of see, you know, how we incorporate this into various subscription packages, you know, to potentially drive ARPA. Speaker 100:19:38But at the moment, really focused on driving a better consumer consumer experience and more efficiency for our aging customers. Speaker 400:19:47Great. Thanks, Jeremy. Thanks, Joe. Speaker 200:19:50Thanks. Speaker 300:19:53Okay. Excuse me. Our next question is going to come from Phon Jiang of Benchmark. Phon, go ahead. Speaker 500:20:11Just want to follow-up on your commentary around the turnaround of your Vietnam and Malaysia. I think like we see some early signs of market recovery. Just want to get a better sense of the pace and magnitude on the recovery side. Your last cycle, especially in Vietnam, we actually saw a V shape recovery. Just wonder how should we think about recovery, I guess, pace for this one? Speaker 500:20:40Any puts and takes that may or may not be differentiating from the last cycle? Speaker 100:20:49Yeah. Thank you. Thank you for the question. Look, you know, it is really encouraging to see some of the green shoots that we are seeing in Vietnam. So, you know, the government is taking a very proactive approach to help sort of bolster the real estate sector. Speaker 100:21:02You know, obviously there was a recently announced landlords which the government is looking to accelerate from 2025 to earlier this year. So that is really encouraging. You know, we think, you know, one of those landlords in particular around agent professionalization is going to be, you know, 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, you know, that's really closely tied with what the government's trying to do around organizing the industry. And, you know, we think as a market leader, you know, we're very well positioned to just capture, you know, those benefits as the market does improve. Speaker 100:21:44I think underlying consumer demand is strong, was up significantly 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, you know, 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. And we're also using this time internally to become more efficient. Speaker 100:22:11So in Q1, we also launched a business transformation initiative internally, 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's executing very well. So I think these things that are happening externally and internally, give us a lot of confidence that when the market does recover, you know, we're going to be in a very, very strong position. Speaker 500:22:43Understood. Thanks, Jeremy. Second question on Switchgear on your Fintech business. It seems like a slow start of the year. Just wonder what's the driver behind it? Speaker 500:22:56And how should we think about the rest of the year on the fintech outlook? Speaker 200:23:01Sure. Thanks for the question. Yes, I mean, in our results, we sort of put together in one line both fintech and Data Business and also Send Helper, so they're kind of merged in there. I think there's a couple of factors. We did our FastKey business was closed down at the end of last year, so that's in the results last year and not in this year. Speaker 200:23:21So that's partially reflected. I think also it's probably a little challenging on the fintech mortgages side. The transaction volumes have been down a little bit in Singapore of late, that's put a little bit of pressure on us. But I think more generally, we have a strong sense of belief and conviction in what we're doing. We believe Send Helper is a cracking business going forward and has got a fantastic niche in Singapore. Speaker 200:23:48And that data is a huge opportunity. I think there's peers that make $150,000,000 of revenue in Australia alone in a market with great data. So imagine the future what we should be able to do with 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 than 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 continued improvement as we deliver what we hope will be a sizable business in the future. Speaker 500:24:28Thanks, Joe. My last question is actually on your cost expenses. I mean, you confirm your full year EBITDA margin, but you had a really solid start. So your Singapore EBITDA margin actually hit a record high. So I just wonder, how should we think about the puts and takes on your, again, margin trends for the rest of the year? Speaker 500:24:53In addition, what might surprise us on upside versus downside in terms of profitability for the year? Speaker 200:25:02Yes, thanks. Look, I think we stand by our predictions for this year, as we sort of reiterate it. And I think I think both on the revenue and the cost side. On the cost side, we are a very disciplined organization. We certainly are very careful where we invest and we do we are constantly gaining more efficiencies and better leverage. Speaker 200:25:32However, on the cost side, this is seasonally, I guess, sort of a lower cost period generally due to all the sort of taking the national holidays, marketing spends tends to sort of drop and I think we've sort of that's partially reflected in our results. But look, we are focused on cost management, focused 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. And we intend to keep growing the business and part of that will be investing in things like marketing and people, etcetera, in order to maximize that yield. Speaker 300:26:21Okay. Thanks, Juan. Our next question and by the way, anyone else who wants to ask a question, use that raise hand function. Nelson Chong with Speaker 600:26:36Citi. Singapore as we see a very strong double digit growth for ARPA growth in Singapore in Q1. And just wonder what is the major driver, driving the ABBA Group. Is it because of the upselling opportunity, technology or product transition, etcetera? And, do we expect similar trend going to be last in the rest of the quarters in 2024? Speaker 600:27:09And do we have a target on the ARPU growth in Singapore this year? Thank you. Speaker 100:27:15So maybe I'll take 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 price revision we put through in the business in Q4 last year. You know, it's greater penetration of some of our depth products as well, dynamic pricing, which we use to drive yield. Speaker 100:27:38So it's a combination of sort of factors. You know, in terms of, you know, where we see the business, I think, you know, we've got a very exciting roadmap of more value that we wanted to deliver to our agent customers over the next 9 months. So I think, you know, that's something that's very exciting. We really do focus on delivering more and more value to our customers. You know, I think, you know, we feel confident where the Singapore business is today and obviously about its future. Speaker 100:28:07I would point out, you know, that we are still, you know, 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. You know, we feel confident the business is in a good spot and we can continue to drive that ARPA growth. Speaker 200:28:29Yes. And just to add, we don't obviously give specific guidance on those kind of numbers. But I think if you look back at the trend in history, we're generally delivering a 20 plus percent average revenue per agent growth over last periods. And I think the fundamentals are there for a similar sort of growth profile heading out into the future. So I think that's very encouraging and I think it's just a combination of of a real sweet spot in the market for us, great products and also, I'd say, great execution by the team as well as produced that strong result. Speaker 600:29:05Okay. And then my second question is just want to follow-up on the wetland market. And we just mentioned that the listing in wetland has hit a high higher point in March. And just want to see what do what does management observe in the next few months, like April May? Do we see the trend continue in the second quarter? Speaker 600:29:28And yeah. Speaker 300:29:31Look, I Speaker 100:29:31think, like we sort of said on the call, look, we feel very confident where Vietnam business is at the moment. The government's obviously taking a lot of measures to stimulate demand in the market, which is encouraging. I think if you look at interest rates that are at multi year lows, clearly, you know, consumer 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, you know, this time to also, you know, focus internally. Speaker 100:30:05I 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, you know, to have a much more streamlined go to market. So that when that, you know, when the market does improve, you know, we're going to be very well positioned to take advantage of the growth opportunities that, you know, a market like Vietnam really does. So, you know, again, we feel as though, you know, the business is in a good position. You know, we're seeing some positive signals and we're really encouraged about the year ahead. Speaker 600:30:38Thanks. And then my last question is regarding the corporate cost. Since we have seen some sequential increase in the corporate cost, I'm wondering what would be the change within our mix corporate cost structure and what would be the trend going forward in order to achieve our adjusted EBITDA margin target? Thank you. Speaker 200:30:58Yes. Look, I think we are very well positioned from Q1 to achieve the EBITDA numbers that we have got on our forecast. I mean corporate costs are very much under control. They have there is a sequential increase quarter on quarter and there's a number of sort of more, I suppose, specific factors for that. But I think the trend really is the corporate costs as a percentage of revenue just keeps dropping. Speaker 200:31:20You notice that year on year. So I think that's a real positive and that's a reflection really of the leverage we are making. We have unashamedly invested in good technology, great people in order to make the company a 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 costs as a percentage of revenue continue to drop this year and into subsequent years as we gain that leverage and deliver more EBITDA. Speaker 600:31:54Okay, that's very helpful. Thank you. Speaker 300:31:59Okay. As a reminder, if there's any other questions, please use the raised hand function. We'll wait a couple of seconds to see if there's anyone else who wants to ask a question. Okay. Seeing no more questions, that's going to conclude the Q and A session. Speaker 300:32:22I'll turn the conference back over to Jeremy for closing remarks. Speaker 100:32:26Thank 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's cities. We look forward to sharing our continued progress with you next quarter. Thank you all very much for joining us today. Speaker 100:32:49Goodbye. Speaker 300:32:52All right. This concludes the conference call. Thank you for attending the presentation. You may now disconnect.Read morePowered by