Seoul, Korea – April 12, 2024

Zigbang, a leading South Korean proptech company, reported annual revenue of KRW 120 billion ($91 million) for 2023, a 36% increase from the previous year and its highest on record, the company disclosed on Tuesday.

It marks the fourth consecutive year of double-digit revenue growth. Operating losses totaled KRW 37.8 billion, slightly wider than the KRW 37.0 billion loss in 2022. The company attributed the result to one-off integration costs and depreciation charges following its 2022 acquisition of Samsung SDS’s home IoT division. The operating loss margin improved to 31%, down from 42% the previous year.

Zigbang said it focused on improving cash flow and maintaining financial stability in response to continued headwinds in the real estate and startup sectors.

EBITDA improved to minus KRW 27.8 billion, from minus KRW 30.3 billion a year earlier. Net cash used in operating activities also narrowed significantly to KRW 16 billion, compared to KRW 42 billion in 2022.

Zigbang’s China subsidiary, which oversees smart home product sales in the region, posted KRW 18.2 billion in revenue and a net loss of KRW 2.6 billion.

Despite macroeconomic headwinds in China and foreign exchange volatility, the company said its smart home business maintained market share both domestically and abroad. It also credited growth to new services such as “Zikim Brokerage,” launched in September.

Zigbang has expanded its advertising offerings within the app and launched new services, including a listing tool that connects users with local real estate agents. This year, it plans to scale its brokerage partnership network and roll out new smart home products.

Separately, Zigbang’s U.S. subsidiary, Soma, launched a paid version of its virtual office solution on March 1.

“Last year was about strengthening our financial foundation,” said CEO Ahn Sung-woo. “This year, we’re focused on driving more sustainable growth through active business expansion.”