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 and successful rollout of a new compensation model for agents.

• ARPL (Average Revenue Per Listing) surged 42% to SEK 6,183, with a significant increase in sellers upgrading to premium packages.

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

• Property listings increased 2.8% year-on-year, nearing record 2022 levels, indicating a recovering property market.

• Positive property market trends observed, though sentiment lags due to high supply and longer listing durations.

Financial highlights

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

• Seller revenue grew 46%, supported by higher ARPL and increased listings.

• EBITDA margin was 55.8%, down 1.6 percentage points year-on-year.

• Free cash flow (LTM) approached SEK 600m; cash conversion 87.0%; leverage 0.6x.

• Share buybacks totaled SEK 125m in Q3, with 1,056,413 shares repurchased in 2024 for SEK 343.8m.

Outlook and guidance

• Focus for 2025 will be on further product development and expanding the offering for property sellers.

• Cost run rates in 2024 are considered normalized, with similar levels expected going forward.

• Too early to provide detailed guidance for Q4 listings or 2025, but positive market sentiment and gradual normalization are expected.

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