Hemnet Group (HEM) Q2 2024 earnings summary

Executive summary

• Net sales grew 51.3% year-over-year to SEK 405 million in Q2 2024, driven by strong demand for value-added services and a 10.1% increase in published listings.

• EBITDA rose 53.7% to SEK 216.2 million, with a margin of 53.4%, reflecting operational leverage and product mix improvements.

• ARPL (Average Revenue Per Listing) increased 52% year-over-year to SEK 6,274, mainly due to higher uptake of Premium and value-added services.

• Maintained dominant market position, with 90% of Swedish property sales listed on the platform and 5.5x more traffic than the next competitor.

• Launched a new compensation model for agents and overhauled the digital purchasing flow, supporting future ARPU growth.

Financial highlights

• Net sales increased 51.3% year-over-year to SEK 405 million in Q2 2024.

• Revenue from property sellers grew 68%, driven by higher uptake of Plus and Premium packages and increased listing volumes.

• EBITDA margin reached 53.4% in Q2 2024.

• Free cash flow (LTM) reached SEK 578.4 million, with a cash conversion rate of 91.3%.

• Net sales from other customers (B2B) declined 6.2% due to lower display advertising revenue.

Outlook and guidance

• Expect continued ARPU growth from new compensation model and digital flow enhancements.

• Marketing investments to remain elevated as market conditions improve.

• Personnel and marketing costs expected to follow Q2 run rates into H2 2024.

• B2B segment expected to recover as market activity and willingness to invest return.

• Hemnet targets annual net sales growth of 15-20% and an adjusted EBITDA margin exceeding 55% in the long term.