Singapore-based real estate marketplace PropertyGuru is to lay off 79 employees — about 5% of its total workforce — as part of a restructuring program that will also see the closure of some non-profitable business units.

“This decision was made after careful and objective identification of the roles for PropertyGuru’s next growth phase,” said chief executive officer and managing director Hari Krishnan.

“Volatile market conditions and changing customer needs require us to adapt our strategy so that we can continue to grow sustainably. It’s essential that we periodically reassess our progress and take proactive steps to future-proof our business.”

The company closed Indonesia-based real estate marketplace Rumah.com in November last year, resulting in 61 layoffs.

Revenue at PropertyGuru grew by 13% year on year (y-o-y) to SGD39 million ($29.2 million U.S.) in Q3 2023, according to its most recent financial reporting.

The company said that “active cost management” drove a 69% increase in adjusted EBITDA to SGD5.0 million ($3.7 million U.S.). As a result, PropertyGuru’s adjusted EBITDA margin rose to 13% in Q3 2023 from 6% in the year-earlier period.

In Singapore, PropertyGuru’s revenue increased by 24% y-o-y to SGD23 million, with the number of agents and average revenue per agent both increasing. In Malaysia, revenue rose by 5% to SGD7 million, while in Vietnam, it decreased by 33% to SGD$4 million. In the latter market, a reduction in the number of listings was only partially offset by an increase in average revenue per listing.

In the wake of these results, analysts downgraded their forecasts for both revenue and earnings per share (EPS) forecasts for PropertyGuru: The consensus is now for revenue of SGD174 million ($130 million U.S.) for 2024 as a whole — down 10.8% from the previous consensus forecast of SGD195 million. The consensus for the company’s EPS is for a loss of SGD0.0.0022.

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