PropTech Group (ASX:PTG) is a property technology SaaS company with a fast-growing and market-leading position in customer relationship management (CRM) systems with Australian and New Zealand residential real estate agents and a small but growing position in the UK market. The company has reported a 99% year-on-year increase in cash receipts to $4.98m for Q1FY22 and a 23% increase over Q4FY21. PropTech Group generated positive operating cashflow of $0.61m, up 48% y-o-y, although lower than the $0.76m operating cashflow delivered in Q4FY21, due to additional operating costs from the acquisition of Eagle Software and the investment in research and development. PropTech now has 41% of real estate agencies across the combined Australian and New Zealand market using one or more of its products. The company also announced that annual recurring revenue (ARR) was $16.3m at the end of Q1FY22, up from $12.4m in Q4FY21. This puts the company well on track to meet our FY22 revenue forecast of $18.1m. PropTech Group is trading at a significant discount to its listed ASX property technology peers. In our view, this gap should narrow as the company demonstrates continued growth in ARR and marketshare.
