In This Article:
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Total Revenue: $78.3 million for Q1 2024.
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Adjusted EBITDA: $19 million with a margin of 24.3%.
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Adjusted Diluted EPS: $0.2.
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Revenue Excluding Marketing Funds: $58.1 million, down 9.3% year-over-year.
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Q2 2024 Revenue Forecast: $75 million to $80 million.
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Full Year 2024 Revenue Forecast: $300 million to $320 million.
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Q2 2024 Adjusted EBITDA Forecast: $24 million to $27 million.
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Full Year 2024 Adjusted EBITDA Forecast: $90 million to $100 million.
Release Date: May 03, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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RE/MAX agents continue to lead in productivity, with agents at large U.S. brokerages outselling competitors 2-to-1 in residential transaction sides.
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RE/MAX agents in the US and Canada have been voted as the most trusted, emphasizing the brand's strong reputation and customer trust.
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The proposed nationwide settlement agreement could potentially release RE/MAX from liability in multiple seller initiated commission lawsuits, pending final court approval.
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RE/MAX's international agent count grew by 3,500 agents, showing strength particularly in Central and South America.
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Despite challenging market conditions, RE/MAX's mortgage side continues to grow, with positive developments in franchise renewals and new openings.
Negative Points
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The overall U.S. agent count has experienced a decline, reflecting broader industry contraction and challenges.
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Organic growth decreased due to a reduction in events-related revenue and a lower U.S. agent count.
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The real estate market remains uncertain with interest rates increasing, which could affect transaction volumes and market dynamics.
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The proposed changes in business practices due to the settlement could require significant adjustments in how compensation and agreements are handled in the MLS systems.
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Despite international growth, there is a need for increased sales and openings to maintain momentum in the franchise and mortgage sectors.
Q & A Highlights
Q: Do you feel like the VMDR settlements are enough to satisfy the DOJ's concerns, or do you think they may look to include additional stipulations before final approval? A: Erik Carlson, CEO of RE/MAX Holdings, mentioned that it's difficult to speculate on the DOJ's actions but emphasized that the settlement supports transparency in transactions and representation on both the buy and sell sides. Amy Lessinger, President of RE/MAX Holdings, added that agents are getting more questions from buyers and sellers about compensation and value, which they are prepared to handle due to their focus on transparency.