Q3 2024 Fathom Holdings Inc Earnings Call Transcript
Key Points
- Fathom Holdings Inc (FTHM) successfully acquired My Home Group, significantly expanding its national footprint and strengthening its presence in Arizona's real estate market.
- The acquisition is expected to add approximately $100 million in annual revenues in 2025, contributing to significant EBITDA growth.
- Fathom Holdings Inc (FTHM) reported a 52% year-over-year increase in mortgage division revenues, reflecting strong growth momentum.
- The company's title division saw a 71% increase in revenue, demonstrating steady momentum and reinforcing its value proposition.
- Fathom Holdings Inc (FTHM) launched new commission plans, Fathom X and Fathom Share, which have been positively received and are expected to boost recruitment and retention.
- Total revenue for the third quarter decreased by 10% year-over-year, primarily due to a decline in brokerage revenue and the absence of insurance business revenue.
- The company reported a GAAP net loss of $8.1 million for the third quarter, an increase from the $5.5 million loss in the same period last year.
- Real estate transactions decreased by 9% compared to the same quarter last year, attributed to higher home prices and mortgage interest rate uncertainty.
- Adjusted EBITDA loss increased to $1.4 million from $0.3 million in the third quarter of 2023, due to decreased brokerage revenue and increased costs in ancillary businesses.
- Fathom Holdings Inc (FTHM) reached a nationwide settlement related to a legal case, requiring payments totaling $2.95 million over the next two years, impacting financial resources.
Good afternoon and welcome to Fathom Holdings third quarter, 2024 conference call. Joining us today are the company's CEO, Marco Fregenal and CFO, Joanne Zach.
Before I turn the call over to management, I want to remind listeners that today's call may include forward-looking statements within the meaning of the private Securities Litigation Reform Act of 1,995. Such forward-looking statements are subject to numerous conditions. Many of which are beyond the company's control including those outlined in the risk factors section of the company's form 10-K for the year ended December 31st 2023 and other company filings made with the SEC copies of which are available on the SEC's website at www.sec.gov. As a result of those forward-looking statements, actual results could differ materially. Fathom undertakes no obligation to update any forward-looking statements after today's call except as required by law. Please also note that during this call, we will discuss Adjusted EBITDA, a non-GAAP financial measure as defined by SEC regulation G. A
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