In This Article:
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Total Revenue: $91.7 million in Q4 2024, up 24% from $74.1 million in Q4 2023.
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Gross Profit: Increased by 25% to $6.7 million in Q4 2024 from $5.3 million in Q4 2023.
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GAAP Net Loss: $6.2 million or $0.29 per share in Q4 2024, compared to $8.4 million or $0.50 per share in Q4 2023.
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Adjusted EBITDA Loss: $2.9 million in Q4 2024, unchanged from Q4 2023.
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Agent Count: Increased by 21% to approximately 14,300 at year-end 2024.
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Transactions: Rose by 22% to 9,903 in Q4 2024 from 8,114 in Q4 2023.
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Real Estate Division Revenue: $87.7 million in Q4 2024, a 26% increase from Q4 2023.
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Gross Profit Margin (Real Estate Division): Improved to 5.3% in Q4 2024 from 4.2% in Q4 2023.
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Mortgage Division Revenue: $2 million in Q4 2024, up from $1.8 million in Q4 2023.
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Title Division Revenue: $1.3 million in Q4 2024, an 80% increase from $700,000 in Q4 2023.
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Cash Position: $7.1 million at the end of Q4 2024.
Release Date: March 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Total revenue grew approximately 24% in Q4 2024, reaching $91.7 million, up from $74.1 million in Q4 2023.
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Gross profit increased by 25%, with a significant rise of 59% when excluding the sold Dagley insurance business.
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Agent count increased by 21%, from approximately 11,795 to 14,300 agent licenses by year-end.
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Fathom Holdings Inc (NASDAQ:FTHM) has one of the lowest direct costs per transaction at $264, compared to peers averaging $1,200 to $1,800.
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The company anticipates achieving sustainable, positive adjusted EBITDA potentially as early as Q2 2025.
Negative Points
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GAAP net loss for Q4 2024 was $6.2 million, or $0.29 per share, despite improvements from the previous year.
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Adjusted EBITDA loss remained unchanged at $2.9 million for Q4 2024, indicating ongoing profitability challenges.
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Rising mortgage rates and a $1.3 million one-time expense impacted the company's ability to move into positive EBITDA territory.
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The broader real estate market faced challenges with high home prices and mortgage rates, leading to a 3% decrease in total revenue for 2024 compared to 2023.
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The company experienced higher turnover, particularly among zero or low-producing agents, reflecting industry-wide challenges.
Q & A Highlights
Q: Can you talk about how the Fathom Max and shared commission plans have affected agent recruitment and retention since their launch? A: Marco Fregenal, President, CEO, CFO, and Director: Approximately 5% of new agents are joining the Fathom Share program, while 95% are opting for Fathom Max. It's too early to see the full impact on revenue, as these agents typically close few transactions in Q4. We expect to see more significant results in Q1 and beyond. While turnover is slightly higher, it mainly involves zero or low-production agents, similar to industry trends.