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In what was a strong financial year, the proptech giant recorded a 23.2 per cent increase in revenue.
According to its full-year financial report posted to the ASX, Domain raked in $356.7 million during the last financial year, well above its $234.6 million expense bill. The company also reported EBITDA of $122.1 million dollars, while net profit after tax rested at $35.1 million at the close of the 2021–22 financial year.
Domain chief executive officer and managing director Jason Pellegrino said the results are indicative of the brand’s four-year strategy that has seen them lock in on the business elements that can be controlled.
“This mindset has positioned Domain to leverage property market strength, while providing downside protection when the cycle has been less supportive,” he explained.
Breaking down the financial performance of different aspects of the business, Mr Pellegrino reported that the company’s residential revenue increased 23 per cent to $239.2 million, which was supported by outstanding depth revenue growth of 26 per cent.
“Depth growth was supported by a 9 per cent uplift in new ‘for sale’ listings, and a controllable yield increase of 14 per cent,” he said.
On the media, developers and commercial front, revenue rose 7 per cent, while agent solutions’ revenue soared 67 per cent, including the contribution from Realbase from May onwards.
“On an underlying basis, revenue increased 17 per cent. During FY22 Pricefinder delivered 12 per cent year-on-year growth in subscribers, and its largest net additions in seven years,” he added.
Moreover, Domain’s property data solutions increased its revenue by 35 per cent with solid underlying growth of 13 per cent from Pricefinder and APM, while consumer solutions revenue jumped 69 per cent during the previous financial year.
Mr Pellegrino also offered further insight into the figures reported by the brand at the end of the financial year, outlining how the group’s FY22 results are “significantly impacted by the timing of the JobKeeper grant and repayment, and the benefits and costs of Zipline, our voluntary employee program undertaken during the early stages of the COVID pandemic”.
“In FY21 we received a net $6.5 million EBITDA benefit from JobKeeper and ZipLine,” he continued. “In FY22 this reversed to an additional expense of $8.0 million.”
In addition to reflecting on its results, the group has offered up an outlook for the current financial year (FY23), which showcased that trading in the first six weeks of FY23 “reflects ongoing growth in new ‘for sale’ listings and a return to normal seasonal trading patterns”.
The report added that costs are expected to increase in the low double-digit range from the base of $226.7 million, before concluding that Domain remains committed to “longer term margin expansion”.
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