Executive Summary / Key Takeaways

• Ohmyhome Limited ($OMH) is transforming Singapore's real estate landscape with its integrated, technology-driven platform, offering brokerage, renovation, and property management services. The company's proprietary AI tools, MATCH and HomerAI, significantly enhance efficiency, enabling faster transactions and superior pricing for clients.
• Despite a challenging 2023, Ohmyhome achieved stellar growth in the first half of 2024, with revenue increasing by 106% and gross profits nearly doubling across all segments due to improved margins. This growth is underpinned by strategic initiatives, including the acquisition of a property management business and a focus on the higher-value condominium market.
• Management projects a substantial triple-digit revenue growth for the full year 2024 and anticipates achieving adjusted EBITDA breakeven by the fourth quarter of 2024. This outlook is supported by cost optimization efforts and the scalable nature of its technology.
• Ohmyhome's unique business model generates a significantly higher gross profit per customer—up to 13 times more than traditional brokerages—by integrating multiple high-margin services. This positions the company for strong profitability as it scales.
• Currently trading at a revenue multiple of 1.3 times, Ohmyhome appears undervalued compared to industry peers, presenting a compelling opportunity as the company increases market awareness and executes its growth and profitability strategy.

The Digital Transformation of Real Estate: Ohmyhome's Integrated Approach

Ohmyhome Limited, founded in Singapore in 2016 by sisters Rhonda and Race Wong, emerged from a vision to revolutionize a real estate industry often plagued by opacity and inefficiency. The company's core mission is to be the most trusted and comprehensive property solution for everyone, leveraging technology to deliver speed, ease, and reliability across property-related services. This ambition has shaped Ohmyhome into Singapore's largest integrated property transactions and services platform, offering a "one-stop shop" that includes brokerage, renovation, property management, mortgage referrals, and legal services.

The broader Singapore housing market, while vibrant, is meticulously managed by government regulations, pricing controls, and taxes designed to prevent speculation. This environment fosters a market where most real estate owners are cash-rich, reducing the pressure to sell at discounts even during periods of higher interest rates. With approximately 40,000 sales transactions and 100,000 rental transactions annually, and properties ranging from government-subsidized HDB units (around USD 350,000) to private condominiums (USD 1 million to USD 5 million), the market, though smaller in volume than some global counterparts, boasts high transaction values. Ohmyhome's strategy is designed to thrive within this dynamic, focusing on efficiency and comprehensive service delivery regardless of market fluctuations.

Technological Edge: The Core of Ohmyhome's Efficiency

Ohmyhome's competitive advantage is deeply rooted in its proprietary technology, which fundamentally differentiates it from traditional real estate models. The company's significant investment in technology development since 2021 has yielded powerful tools that drive its operational excellence.

At the heart of its brokerage efficiency is MATCH technology, an in-house developed AI system that aggregates high-quality data of potential buyers and matches them against property listings. This intelligent matching capability allows Ohmyhome to close 65% of its deals in an average of just seven days, a stark contrast to the typical 100+ days in Singapore. Furthermore, 73% of properties sold through Ohmyhome achieve prices above the market average. The "so what" for investors is clear: this technology translates directly into faster sales cycles and potentially higher transaction values, enhancing both customer satisfaction and revenue generation.

Another critical technological differentiator is HomerAI, a homeowner-focused platform launched in the second half of 2023. HomerAI streamlines the home selling process by providing accurate, live property valuations, comprehensive guides, and data on recent transactions. Users can post listings directly, receive AI-drafted messages, and access critical information with a single click. This platform has rapidly grown, connecting approximately 33,000 homes with over $20 billion in gross merchandise value waiting to be transacted. Transactions contributed by HomerAI users have surged from 0% at its inception to nearly 20% of total brokerage. The strategic intent behind HomerAI is to build a robust sales pipeline for mid-to-high intent sellers, providing Ohmyhome with first access to customers. Management emphasizes that the substantial upfront investment in building HomerAI means its operational cost does not scale linearly with user growth, making future customer conversions more affordable. This technological infrastructure allows Ohmyhome agents to focus on sales closing, as much of the initial customer interaction and information provision is automated 24/7.

In its renovation segment, operating as DreamR, Ohmyhome also employs AI tools for mood boarding and design regeneration. This allows customers to visualize their dream homes in various styles, enhancing the design process and customer engagement. The company's commitment to technology extends to its property management arm, which operates a mobile-based, 100% paperless service with integrated IoT solutions for visitor management and license plate recognition. These innovations not only improve efficiency but also reduce operational costs for homeowner associations.

A Unique Business Model and Competitive Edge

Ohmyhome's business model stands in stark contrast to traditional brokerages, offering a significant competitive advantage. While conventional agencies typically pay out 90-95% of a commission to agents, retaining only about 10%, Ohmyhome's integrated team approach allows it to retain approximately 50% of the commission as gross profit. This is five times higher than the industry norm. Consequently, Ohmyhome requires only 2,000 deals to achieve $10 million in brokerage gross profit, whereas a traditional model would need 10,000 deals.

This efficiency extends beyond brokerage. By offering a comprehensive suite of services—from buying and selling to mortgage, legal, renovation, and property management—Ohmyhome significantly increases its customer lifetime value. The company estimates it can derive approximately $13,400 in gross profit from a single customer across its ecosystem, which is 13 times more than the $1,000 typically generated by a traditional brokerage. This integrated model fosters stronger customer loyalty and provides multiple revenue streams from a single customer acquisition.

Compared to its competitors, Ohmyhome demonstrates superior operational efficiency. Its agents complete an average of 63 deals per year, over 13 times the industry average in Singapore (3-5 deals per agent) and more than twice as efficient as leading U.S. proptech companies like Redfin (RDFN), Compass (COMP), and eXp (EXPI). This efficiency is a direct result of its technology, which streamlines processes and empowers agents. Ohmyhome is also the highest-rated proptech company in Singapore and the region, boasting over 8,000 five-star reviews, reflecting high customer satisfaction. This strong reputation is a significant moat against traditional brokerages often criticized for dishonesty and opaque information.

While larger regional players like PropertyGuru benefit from broader reach and established brand presence, Ohmyhome's deep local expertise and integrated service model provide a qualitative edge in user convenience and tailored solutions. In comparison to global tech giants like Zillow (ZG), Ohmyhome's agility in adapting to regional regulations and its full-service approach differentiate it. The company's technology, built on years of collected data on customer spending, loans, and mortgages, is not easily replicated, creating a substantial barrier to entry for newcomers.

Financial Performance and Outlook: A Turnaround Story

Ohmyhome's financial trajectory reflects a period of significant investment now transitioning to a focus on profitability. For the full year 2023, the company reported total operating revenues of S$5 million (US$3.79 million), a gross profit of S$1.7 million (US$1.3 million), and a net loss of S$5.5 million (US$4.1 million), with adjusted EBITDA at negative S$4 million (negative US$3 million). This performance was impacted by a challenging Singapore property market and government cooling measures.

However, the first half of 2024 marked a "stellar growth," with revenue surging by 106% from SGD2.17 million to SGD4.47 million. Gross profit nearly doubled, driven by margin improvements across all segments: brokerage gross margin increased from 46% to 49%, renovation from 23% to 28%, and property management from 31% to 33%. The net loss also narrowed by SGD220,000 compared to the prior year, indicating improving operational efficiency.

Key operational highlights for the first nine months of 2024 further underscore this positive momentum:

• Gross Transaction Value (GTV) of brokered homes increased by 51% year-on-year to $212 million.
• Renovation contracts signed saw a nearly 300% increase, reaching SGD2.43 million.
• Units under property management grew by 30% year-on-year to 9,283.

The company's liquidity has also strengthened, with cash and cash equivalents rebounding to SGD2.4 million in the first half of 2024. As of September 30, 2024, the cash balance stood at $22.1 million, a substantial increase from $1.8 million in June. This improvement is attributed to increased deal closures, higher renovation contracts, and significant cost optimization efforts initiated in Q2 2024, which are expected to reduce operating expenses from Q3 2024 onwards.

Looking ahead, management is highly optimistic, projecting a triple-digit revenue growth for the full year 2024 and aiming for adjusted EBITDA breakeven in the fourth quarter of 2024. This guidance is underpinned by several strategic drivers:

• Aggressive top-funnel growth: Increasing condominium acquisitions and units under management in the property management business. The condominium market offers 2-4 times higher brokerage revenue and twice the renovation revenue compared to the HDB market.
• Leveraging AI nurturing: Utilizing HomerAI and MATCH to engage customers 24/7, leading to higher conversion rates and increased market share in the lucrative condo market.
• Strategic partnerships: Expanding B2B collaborations to generate new customer acquisition funnels.
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Ohmyhome's current valuation, trading at a revenue multiple of 1.3 times, is notably lower than PropertyGuru's (PGRU) recent acquisition multiple of nearly 9 times its projected 2024 revenue. This suggests a potential undervaluation, which management hopes to address through increased investor awareness.

Risks and Challenges

Despite the compelling growth narrative, Ohmyhome faces several risks. The Singapore real estate market, while stable, is subject to government intervention through cooling measures and taxes, which can impact transaction volumes and the company's financial performance, as seen in 2023. While the company's technology is a significant asset, the continuous need for innovation and development in the rapidly evolving proptech sector requires ongoing investment. Furthermore, while Ohmyhome is the highest-rated proptech company in its market, increasing brand awareness and attracting new investors remains a challenge, as acknowledged by management. The company's smaller scale compared to some regional and global competitors could also lead to higher customer acquisition costs and potentially limit its ability to compete on R&D investment.

Conclusion

Ohmyhome Limited presents a compelling investment thesis as a technology-driven proptech company poised for significant growth and profitability. Its integrated "one-stop shop" model, powered by proprietary AI technologies like MATCH and HomerAI, delivers unparalleled efficiency and customer value in Singapore's dynamic real estate market. This technological leadership translates into faster transactions, higher selling prices, and a business model that generates substantially greater gross profit per customer than traditional counterparts.

With a strategic focus on expanding into the higher-value condominium market, leveraging its property management acquisition, and optimizing costs, Ohmyhome is on a clear path toward profitability. The company's projection of triple-digit revenue growth for 2024 and adjusted EBITDA breakeven by Q4 2024 signals a pivotal turnaround. For discerning investors, Ohmyhome's current valuation, coupled with its proven technological differentiation and robust growth strategy, offers a unique opportunity to participate in the digital transformation of real estate in a high-value market. The company's commitment to technological innovation and customer-centric services positions it to capture increasing market share and realize its ambition of becoming a leading property super app.