Ohmyhome Ltd. Q4 FY2023 earnings call

• Founding story: Founded in 2016 to address issues in the real estate property industry like opacity and dishonesty. Vision is to be the most trusted and comprehensive property solution using technology.
• 2023 challenges: 2023 was a challenging year for the real estate brokerage scene in Singapore, with total operating revenues at S$5 million, gross profit S$1.7 million, net loss SGD5.5 million. However, second half 2023 had 2.2 million revenue growth and benefits from the acquired property management company.
• Technology and tools: Utilizes technology like MATCH which aggregates buyer data and matches with listings, enabling 7 days to close 65% of deals, selling over 73% above market average prices. HomerAI and other tech products expand top funnel. Property management company is 100% paperless, mobile-based with IoT solutions.
• Customer statistics: Over 15,500 transactions since inception, $3 billion in gross transaction value, over 750,000 downloads, over 200,000 monthly active users, agent efficiency more than 13 times industry average.

The company's revenue is mainly composed of three segments: brokerage, renovation, and property management. In 2023, property brokerage constituted around 53% of total revenue, renovation around 27%, and property management had less than three months of results in 2023 but is growing. In 2024, the company expects significant growth across all segments, with brokerage and renovation benefiting from synergies and the expansion into the condominium market which offers two to four times the revenue per transaction compared to the HDB market. The property management segment, acquired in October 2023, is actively growing and contributing to revenue growth.

• Projected triple digit revenue growth in 2024.
• Expect to achieve adjusted EBITDA breakeven in Q4 2024.
• Key growth drivers: Aggressive top funnel growth, including increasing condo acquisitions and units under management, B2B partnerships; AI nurturing to serve customers 24/7; increasing conversion and market share in the condo market for higher revenue per deal.

Factors that could cause actual results to differ from forward-looking statements include inaccurate assumptions, economic and political conditions, ability to execute growth strategies, capital requirements, ability to attract customers, competition in the brokerage and related industry, and assumptions underlying forward-looking statements.

Q: Can you give color on the degree of where triple revenue growth in 2024 is coming from relatively across the three major segments?

A: Currently, brokerage is ~53% of total revenue, renovation ~27%, property management is new. 2024 sees market recovery, investment in technology like Homer AI expanding top funnel, synergies from acquisition tapping into condominium market with higher revenue per transaction and renovation business.

Q: How is the strategy of getting condominium owners to upsell to transacting or renovations?

A: Condominium owners use the app daily for booking facilities, paying bills, etc. Ohmyhome is on the main screen of the app, with leads coming through clicks on the app for renovation, selling, renting. Technology allows scalable onboarding of condominium units.

Q: Talk about partnerships that could help expand transactions and geographies?

A: Partnerships with e-grocery, insurance companies, paint companies, community engagements, collaborations with influencers, and appearances on news channels like Channel News Asia to promote the company.

Q: Comment on the ability to leverage tech infrastructure as revenue triples to shift to profitability?

A: Costs don't grow as fast as revenue in the future. Past investments in technology have already built the infrastructure. Leading up costs for further innovations and enhancements are manageable. Gross margins across products are strong, focusing on scaling up and reaching more customers.