Ohmyhome Limited Q3 FY2024 earnings call

Management Statement and Operational Highlights

• High Growth Prop Tech: The first nine months of 2024 showed a 51% increase in gross transaction value of brokered homes. Renovation contracts saw a 286% growth Y-o-Y, and property management units under management increased 30% Y-o-Y. HomerAI, a homeowner-focused platform, has grown with 33,000 homes connected and 20% of brokerage transactions coming from HomerAI users.
• Highly Profitable at Scale: The business model is highly profitable at scale with 13 times customer lifetime value compared to traditional brokerages. Gross margins hover around 50%, and they can achieve profitability with fewer deals than traditional models.
• Team and Board: CEOs Rhonda and Race Wong lead the company. The board includes experienced professionals such as David Loh (Chairman of Centurion Corporation and Grab Holding), Lee Wei Loon (Audit Chair of Watchbox Asia), and others with backgrounds in law, investment banking, and property management.

Segment Performance

• Brokerage: For the first nine months of 2024, gross transaction value of homes brokered was $212 million, a 51% increase compared to the previous year. The percentage of property transactions going through their agent increased to 63% from 42% in the same period last year.
• Renovation: First nine months of 2024 saw a 286% growth in renovation contracts compared to the same period last year. In Q3 2024, close to USD1.5 million worth of renovation contracts were signed, representing a 400% growth Y-o-Y. They focus on higher value renovation deals above $200,000 per contract.
• Property Management: Units under management increased to 9,283, a 30% year-on-year increase from 6,700 units at the end of the previous year. Around 1,500 units were newly added in October 2024 and will contribute to Q4 2024 revenue. They manage over 30 condominium projects in Singapore, including Affinity at Serangoon, Parc Mondrian, etc.

Guidance

• Operating expenses are expected to narrow significantly from Q3 2024 onwards due to cost optimization plans initiated in Q2 2024.
• Cash balance was $22.1 million as of September 30, 2024, up from $1.8 million in June 2024, due to a placement in Q1 2024.
• Key growth drivers include aggressively growing top funnels via condo acquisitions and B2B partnerships, using AI tools like HomerAI to nurture clients 24/7, and increasing conversion and market share in the condo market.

Risks

• Factors affecting actual results differing from forward-looking statements include economic and political conditions, ability to execute growth strategies, attract customers, hire and retain qualified personnel, and competition in the brokerage and related industry.

Question and Answer

• Q: How was the cash level increased? A: Focused on operating efficiency, closed more deals and renovation contracts, reduced losses due to initiatives taken in the second half of the year. Also, acquisition into property management and partnerships helped build cash flow.
• Q: Commentary on Singapore housing market overall and the economy? A: Singapore housing market is vibrant with controlled speculation. Interest rates are coming down, leading to more transactions. Condo transactions are increasing due to property management acquisitions, and renovation deals are growing with higher net worth customers.
• Q: How has property management and AI integration grown business? A: HomerAI is integrated with the property management app, allowing homeowners to register their homes for price discovery. The integration helps nurture customers, with the goal of having homeowners constantly engaged with Ohmyhome's services when they are ready to sell or renovate.