Hemnet Group (HEM) Q3 2024 earnings summary

Executive summary

• Net sales grew 36.8% year-over-year to SEK 372.1m in Q3 2024, driven by strong demand for value-added services, especially Plus and Premium packages, and a successful new agent compensation model.

• ARPL increased 42% to SEK 6,183, with Hemnet Premium contribution more than doubling year-over-year.

• EBITDA rose 33.1% to SEK 207.6m, with a margin of 55.8%, reflecting continued investments in product, marketing, and team.

• Seller revenue increased 46%, supported by higher conversion to premium packages and a 3% growth in listings.

• Positive property market trends observed, though high supply and longer listing durations persist.

Financial highlights

• Net sales: SEK 372.1m in Q3 2024, up 36.8% year-over-year.

• EBITDA: SEK 207.6m, up 33.1% year-over-year; EBITDA margin 55.8%.

• Free cash flow (LTM): SEK 596.0m; cash conversion 87.0%; leverage 0.6x.

• Published listings increased by 2.8% to 51.5 thousand.

• Share buybacks of 1,056,413 shares (SEK 343.8m) executed in 2024 as part of a SEK 450m program.

Outlook and guidance

• Focus for 2025 will be on further product development and expanding offerings for property sellers, supported by strong demand for top-tier packages.

• Cost run rates in 2024 are considered normalized; 2025 guidance not yet provided.

• Market shows positive signs of recovery, but high supply and longer listing durations persist.

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