Hemnet Group (HEM) Q4 2024 earnings summary

Executive summary

• Net sales grew 38.8% year-over-year to SEK 1,394.6 million in 2024, driven by strong demand for value-added services, product innovation, and a new agent compensation model.

• EBITDA rose 37% to SEK 719.8 million, with a full-year EBITDA margin of 51.6%, reflecting scalability despite higher operating expenses.

• ARPL increased 42.1% to SEK 6,382 for the year and 43% in Q4, mainly due to higher uptake of premium packages and new compensation models.

• A new top-tier seller package, Hemnet Max, will launch in April 2025 to further boost ARPL and value for sellers.

• Proposed dividend of SEK 1.70 per share, up 41.7% from last year, reflecting strong cash generation.

Financial highlights

• Q4 net sales: SEK 364.1 million, up 32.4% year-over-year; full-year net sales: SEK 1,394.6 million, up 38.8%.

• Q4 EBITDA: SEK 176.3 million, up 24.5% year-over-year; full-year EBITDA: SEK 719.8 million, up 37%.

• Q4 property seller revenue up 41% year-over-year; annual seller revenue up 51.1% to SEK 1,181.2 million.

• Free cash flow (LTM) was SEK 696.0 million; leverage ratio improved to 0.5x EBITDA.

• Earnings per share (diluted) rose 44.1% to SEK 5.00 for the year.

Outlook and guidance

• Management targets 15–20% annual net sales growth and a long-term adjusted EBITDA margin above 55%.

• 2025 will see the launch of new seller packages, continued investment in technology, and focus on B2B offerings.

• Cost growth expected to moderate in 2025, with dynamic pricing strategies maintained.