PropGO Technologies Media Platform for Real Estate Solutions Across Markets
PropGO Technologies is a US based online media and solutions company that delivers real estate products and services around the world. As a CRM and SaaS platform, its listing database and management tools enable clients to push properties to media portals within the PropGO network, providing a solution for real estate agencies and developers who want to work across multiple markets. CEO George Varvitsiotis joins James to introduce the company, their business model and a look to the future as the company intends to go public by the end of this year.
James West: I’m here now with George Varvitsiotis. He’s the CEO of PropGO Technologies. George, welcome.
George Varvitsiotis: Great to be here.
James West: George, tell me quickly: What is PropGO? What does it do?
George Varvitsiotis: We’re a leading online real estate media and solutions company, focusing on the business to business space. Our value proposition provides efficiencies for real estate agencies and developers to better manage their business. We also power online real estate for major media companies, including our own PropGO brands. Those include the Financial Times real estate section, Nikay’s (phon) real estate section, which is the largest news provider for financial services and media reports in Japan, Zaobao, which is the Chinese media arm of Singapore Press Holdings, and the Chinese New York Times.
James West: So you’re a – is it an ad tech platform?
George Varvitsiotis: What’s great, what’s unique about our platform, it’s actually a CRM and SaaS platform with listing database and management tools, and from those listing management and database tools, our clients can push their properties to media portals within our network, the PropGO.com network. Those includes, again, the Financial Times, Nikay, Zaobao and the Chinese New York Times, and outside our network.
James West: So if I was a small, independent media company in Canada publishing financial media, I would become a customer of PropGO if I want to project my media into those audiences?
George Varvitsiotis: It would be the other way around. We would provide you with a real estate channel to show your audience real estate listings from not just Canada, but around the world. So it’s a very unique value proposition, and you’d be part of our network, and you’d be very easy for the media company to do just using our software and connecting our software and clients to your traffic and audience.
James West: Interesting. Okay, so tell me about your revenue model; how does that work?
George Varvitsiotis: On the client side it’s a bit of a SaaS-based, B2B platform, so agencies and developers will run their business on our platform. This will connect their multiple offices in and around the world. So in the Asia-Pacific region, Savels (phon) runs their business currently for Thailand, Vietnam, Singapore, and India. And they’re going to expand to multiple markets, and they do this on one platform.
This solves a major problem real estate agencies and developers who want to work across multiple markets, they have, because you don’t want to have markets on multiple different platforms, each solving the same problem multiple times, all not talking to each other. So our platform provides this capability to the developers and real estate agencies who pay us a flat monthly recurring revenue fee.
On the other side, we have a media model where our classified online marketplace power our own channels and these media channels, like the Financial Times, Nikay, and the New York Times, and we do a revenue share. So our clients push their inventory to these channels, and we collect marketing and media revenue and split that with our partners.
James West: Okay, very cool. Are you profitable now?
George Varvitsiotis: Yes. We’re EBITDA-positive, and have been so for a while, and we’re looking to scale up and take our business global.
James West: Okay, so what’s revenue projections look like for the next 12, 24 months?
George Varvitsiotis: We’ve done about a 300 percent caker (phon), and this year, we’re looking at approximately $4 million USD in 2019. Next year, we’re looking to double that to about $8 million, and then $16 million in the subsequent year, in 2021.
James West: Wow. Okay, and so, out of all of those things, what is the primary revenue driver? What percentage of the revenue is driven by that main thing?
George Varvitsiotis: Great, so it’s 50/50. So probably we have 50 percent in SaaS and software solutions driving half our revenue, and we’re scaling up the media revenue as well, so it’s highly synergistic. So clients will purchase from both the software platform and the media platform, and that basically creates a highly synergistic revenue model.
Currently, we have B2B relationships with Sothebys and Christie’s, Savels, and Colliers, and we’re seeking as part of this financial raise to expand our platform from within our own existing client network, to add their affiliates and offices. Case in point: Sotheby’s would have approximately 1,500 offices located around the world, with 15,000 agents; our ARPU is 1,000 per agent, per annum. So that total addressable market within the one enterprise client is approximately $15 million.
James West: Wow, impressive. And what’s the competitive landscape look like?
George Varvitsiotis: Great. In any market that we serve, there’s a SaaS platform, a media platform and a syndication platform that works really well, let’s say, for Canada or for the United States or for the UK and Australia. But there’s no platform that addresses all those markets, providing all three of those tools. So we can provide a SaaS platform that can address the Canadian market and tap into the Canadian local portals, and then provide that international coverage and exposure.
Case in point: a Canadian developer can now market their listings all throughout Canada on our platform, and to other channels not on our network in Canada, and then they could push those properties and open up offices in Hong Kong and China, where we’re located, and reach those audiences there. Because obviously, as you know, there’s a large amount of buyers from the Asian market buying international properties, and our platform is the leading platform in the world to facilitate those transactions.
James West: Wow, it sounds like quite a machine. I can’t wait to check it out. Okay, so it sounds like you’ve got growth opportunities in the sort of family of media companies you could associate with. You’ve got growth opportunities, obviously, in every market where there’s real estate developers active. Where does this thing become attractive as a takeout, and to whom?
George Varvitsiotis: Precisely. In the future, we believe a lot of the siloed media companies or property portals may want to acquire international capabilities. We also believe our end user clients and developers may want to acquire those capabilities and take those in-house. As you know, there’s a phenomenon called Compass in the United States, which is a digital agency, and they’re taking a lot of market share because they provide those digital tools for the US market. And the other real estate agencies and developers want those same capabilities, and they also want the capability to expand internationally. So we become a very attractive target for media companies, real estate property portals, and also real estate companies.
James West: Wow. Fantastic! Sounds like a great story, George. You guys are raising money now for a go-public transaction at some point in the future?
George Varvitsiotis: Yes, actually, we’re here in Canada. We intend to list on the Toronto Venture Stock Exchange by the end of November, early December time frame, and we’re raising capital as part of that transaction.
James West: Okay, great. George, we’ll leave it there for now. We’ll come back to you in due course. Thanks very much for joining me today.
George Varvitsiotis: Thank you. Good to be here.
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