Zacks Small Cap Research – OMH: Guiding to Strong Revenue Growth Following Acquisition, Organic Steps – Technologist

By M. Marin

NASDAQ:OMH

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Company reiterates expectation for breakeven EBITDA by the end of 2024…

Singapore-based technology company Ohmyhome Ltd’s (NASDAQ:OMH) believes that its productivity per agent continues to outperform that of the largest Singaporean agencies. This, plus the expansion into property management and launch of HomerAI are factors behind OMH’s projection that it will reach breakeven EBITDA by 4Q24 on its way toward positive EBITDA. With the benefits of its platform and incorporation of Simply Sakal (now rebranded as Ohmyhome Property Management), OMH projects that 1H 2024 revenue will increase following the acquisition and surpass the previous two years, supported by a substantial increase in the sales pipeline and the company’s 2023 deployment of HomerAI. The company projects full-year 2024 revenue will be triple that of 2023 and that adjusted EBITDA can reach breakeven in 4Q24.

Growing Units Under Management Expected to Drive Revenue Growth

The acquisition diversifies Ohmyhome’s revenue base, adding a less seasonal, recurring revenue stream, and is expected to accelerate growth, particularly as this operating unit expands units under management. Importantly, Simply, or Ohmyhome Property Management, expands OMH’s access to Singapore’s private residential segment where revenue per transaction is higher. According to OMH filings, Simply reported operating revenues of S$2.6 million (US$2.0 million) in 2022, up 58% from S$1.7 million in 2021. Much of this growth reflects the increase in number of residential units managed over this period.

The business unit managed 6,746 residential units as of December 31, 2023, up about 45% compared to year-end 2022. The goal is to continue to increase the number of units under management, which Ohmyhome believes will contribute to growing Ohmyhome Property Management revenue (in 1H 2023, Simply registered operating revenue growth of about 23% year-over-year).

The goal to increase units under management likely has a positive tailwind from actions by the Singapore government. According to Singapore’s Urban Redevelopment Authority (URA), the government has taken measures to increase the country’s housing stock.

Property management expands platform, paper-based space set for digitalization

The company views its use of technology and data as key competitive advantages and believes the property management space is ripe for digitalization. The property management sector in Singapore and Southeast Asia is fragmented, according to Ohmyhome, which believes there exists a need for digitalization to provide a better access for both managing agents and condominium residents. The company views “its paperless workflow process in the paper-heavy industry” as an important strength of the company’s digital platform.

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