The following is a summary of the RE/MAX Holdings, Inc. (RMAX) Q1 2024 Earnings Call Transcript:
Financial Performance:
RE/MAX reported Q1 revenue of $78.3 million, with an adjusted EBITDA of $19 million and an adjusted EBITDA margin of 24.3%. The adjusted EPS was $0.20.
Revenue, excluding marketing funds revenue, was $58.1 million, showing a 9.3% decrease compared to the previous year, specifically due to a reduction in events-related revenue and lower U.S. agent count.
The company expects Q2 agent count to change between negative 1.5% to 0% over Q2 2023 and revenue to range within $75 to $80 million. Full-year revenue is estimated to fall between $300 to $320 million with agent count ranging between negative 0.5% to positive 1.5%.
Business Progress:
RE/MAX's agents were proven highly productive, outselling competitors 2-to-1 in residential transactions last year according to a large U.S. brokerages survey.
Amidst industry changes proposed by the National Association of REALTORS, RE/MAX has promised support for its affiliates in education, consultation, marketing, and consumer messaging.
The company is seeing growth in the mortgage industry despite challenging market conditions.
On April 1, RE/MAX launched the expanded teams initiative, aiming to add six new team members.
RE/MAX outperforms the industry with less brand-new agents (10% versus an industry average of 20%), demonstrating a trend of having more tenured and experienced agents.
Future monetization opportunities with international agents are being targeted, along with the continuous growth of the Motto Mortgage franchise.
More details: RE/MAX Holdings IR
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