RE/MAX(US:RMAX)2024-10-31 20:15Revenue Performance - Total revenue for Q3 2024 was $78.5 million, a decrease of 3.4% compared to $81.2 million in Q3 2023[1][4] - Revenue excluding Marketing Funds was $58.4 million, down 3.3% year-over-year, driven by negative organic growth of 3.0% and adverse foreign currency movements of 0.3%[1][4] - The company expects Q4 2024 revenue in the range of $71.0 million to $76.0 million, including Marketing Funds revenue of $18.5 million to $20.5 million[1][15] - For the full year 2024, revenue is expected to be between $306.0 million and $311.0 million, revised from previous estimates[1][16] - Continuing franchise fees decreased to $30,798,000 in Q3 2024 from $31,834,000 in Q3 2023, representing a decline of 3.2%[25] Profitability - Adjusted EBITDA increased by 2.0% to $27.3 million, with an Adjusted EBITDA margin of 34.8%[1][9] - Operating income for Q3 2024 was $15,211,000, compared to an operating loss of $20,998,000 in Q3 2023[25] - Net income attributable to RE/MAX Holdings was $1.0 million, compared to a net loss of $59.5 million in Q3 2023[1][8] - The company reported a basic earnings per share of $0.05 for Q3 2024, compared to a loss per share of $(3.28) in Q3 2023[26] - Net income for the nine months ended September 30, 2024, was $3,997 thousand, a significant improvement from a net loss of $80,107 thousand for the same period in 2023[28] Expenses and Liabilities - Total operating expenses decreased by 38.1% to $63.3 million, primarily due to a $55.0 million settlement recorded in Q3 2023[1][6] - Total liabilities decreased to $640,412,000 as of September 30, 2024, down from $653,211,000 at the end of 2023[27] Agent Count and Market Presence - Total agent count increased by 174 agents, or 0.1%, to 145,483 agents, while U.S. and Canada combined agent count decreased by 4.4% to 78,201 agents[1][3] - The total agent count in the U.S. and Canada decreased to 78,201 as of September 30, 2024, down from 81,782 a year earlier, indicating a decline of approximately 4.5%[29] - The company reported a total of 67,282 agents outside the U.S. and Canada as of September 30, 2024, an increase from 63,527 a year earlier, marking a growth of approximately 5.5%[29] Cash Flow and Financial Health - Cash provided by operating activities for the nine months ended September 30, 2024, was $42,867 thousand, compared to $19,625 thousand for the same period in 2023, representing a year-over-year increase of 118.4%[28] - The company’s cash, cash equivalents, and restricted cash increased to $156,378 thousand as of September 30, 2024, compared to $120,813 thousand at the end of the previous year[28] - Total cash flow from operations for September 2024 was $42,867,000, compared to $19,625,000 in September 2023, representing a significant increase of 118.4%[34] Future Outlook and Strategy - The company is optimistic about future interest rates and plans to enhance technology and customer experience[23] - RE/MAX Holdings is focused on operational efficiencies and business optimization to improve customer experience[23] - The company aims to finish the year with positive momentum and is exploring new revenue opportunities[23] Adjusted Financial Metrics - Adjusted EBITDA for the three months ended September 30, 2024, was $27,290 thousand, compared to $26,748 thousand for the same period in 2023, reflecting an adjusted EBITDA margin of 34.8%[30] - Adjusted free cash flow for September 2024 was $35,087,000, up from $27,598,000 in September 2023, indicating a growth of 27.1%[34] - Adjusted free cash flow as a percentage of Adjusted EBITDA was 47.2% in September 2024, compared to 37.6% in September 2023, indicating improved efficiency[34]