By M. Marin
NASDAQ:OMH
READ THE FULL OMH RESEARCH REPORT
1H 2024 revenue up 106%% y/y…
Singapore-based technology company Ohmyhome Ltd’s (NASDAQ:OMH), which operates a technology platform that offers the convenience of end-to-end property solutions and services, recently reported 1H 2024 results and provided a business update. Consistent with OMH’s recent guidance, Ohmyhome more than doubled revenue in 1H 2024 (up 106% year-over-year compared to the same period of 2023, coming in at S$4.5 million (US$3.3 million).
Notably, the revenue advance reflects increases in each of OMH’s three core business units. Specifically, brokerage services revenue advanced 13.9% year-over-year, the higher mortgage interest rate environment and general slowdown in market transaction activity notwithstanding. The company previously indicated that its GTV (gross transaction value) benefited from its tech investments in HomerAI, its AI feature. Revenue from the company’s new Property Management services segment was S$2.0 million (US$1.5 million), while revenue from emerging and other services advanced 16% year-over-year compared to the same period of 2023. Higher demand for renovation services drove a 206% annual increase in independent third-party revenue. The company had previously indicated that the renovation business benefitted from demand from more office and residential projects.
Margin improvement on higher revenue base, cost containment efforts…
On the higher revenue base, Ohmyhome recorded gross margin improvement in all three of its core business segments. Specifically, the Brokerage services’ gross margin expanded roughly 300 bps to 49% from 46%. The new Property management services segment recorded a 33% gross margin and the gross margin for the emerging and other services business increased from 23% to 28%. As a result of these factors, OMH recorded a 108% year-over-year advance in gross profit to S$1.7 million, up from S$803.6k in 1H 2023.
Cost containment measure, anticipated revenue growth expected to drive further margin improvement
Moreover, on the higher revenue and gross profit, OMH’s EBITDA loss margin narrowed considerably – to -44% from -107% in the comparable period of 2023 and its net income loss narrowed to S$2.3 million (US$1.7 million), or US$0.07 per share, compared to a net loss of S$2.5 million in the same period of 2023.
The company expects to maintain its focus on constraining operating expenses and anticipates further reduction in EBITDA loss in 2H 2024. Importantly, the higher total value of contracts signed in Q324 support management’s expectation for ongoing revenue growth, while at the same time, OMH continues measures to optimize its costs and operational efficiency. In addition, the company’s founders entered into an agreement with OMH on September 9, 2024, to settle an amount of their salaries deferred year-to-date through August 2024 through the issuance of 217,565 shares to each.
The company also continues to pursue a strategy to expand its service offerings, boost market share, expand into additional markets and accelerate growth organically and through strategic M&A or investments. OMH had cash and cash equivalents stood at S$2.4 million (US$1.8 million) As of June 30, 2024 to support its strategy.
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