Douglas Elliman (US:DOUG)2024-11-07 11:51Financial Performance - Douglas Elliman reported Q3 2024 revenues of $266.3 million, a 5.7% increase from $251.5 million in Q3 2023[2] - For the nine months ended September 30, 2024, revenues were $752.3 million, up from $741.4 million for the same period in 2023[3] - Total revenues for Q3 2024 reached $266.3 million, a 5.3% increase from $251.5 million in Q3 2023[14] - Total revenues for the nine months ended September 30, 2024, were $752.3 million, a 1.5% increase from $741.4 million for the same period in 2023[14] - Total revenues for the three months ended September 30, 2024, were $966.44 million, a slight increase from $955.58 million in the same period of 2023, representing a growth of approximately 1.3%[17] Losses and Expenses - The company recorded an operating loss of $7.4 million in Q3 2024, an improvement from the $8.8 million loss in Q3 2023[2] - Net loss attributed to Douglas Elliman for Q3 2024 was $27.2 million, or $0.33 per diluted share, compared to a net loss of $4.9 million, or $0.06 per diluted share in Q3 2023[2] - The company recorded an operating loss of $52.6 million for the nine months ended September 30, 2024, compared to a loss of $40.9 million for the same period in 2023[3] - Adjusted Net Loss for the nine months ended September 30, 2024 was $31.3 million, or $0.38 per diluted share, compared to $26.4 million, or $0.32 per diluted share in the same period of 2023[6] - Adjusted net loss attributed to Douglas Elliman Inc. was $6.51 million for the three months ended September 30, 2024, compared to an adjusted net loss of $4.72 million in the same period of 2023[16] - Adjusted net loss per diluted common share was $0.08 for the three months ended September 30, 2024, compared to $0.06 in the same period of 2023[16] Transaction and Revenue Details - Gross transaction value for Q3 2024 was approximately $9.8 billion, compared to $9.3 billion in Q3 2023[7] - Real estate agent commissions increased to $199.1 million in Q3 2024, up from $185.8 million in Q3 2023[14] - Commissions and other brokerage income increased to $254.1 million in Q3 2024, up 6.2% from $239.3 million in Q3 2023[14] - Commissions and other brokerage income for the three months ended September 30, 2024, was $916.94 million, compared to $906.07 million in the same period of 2023, reflecting an increase of approximately 1%[17] - Property management revenue increased to $36.39 million for the three months ended September 30, 2024, from $35.54 million in the same period of 2023, marking a growth of approximately 2.4%[17] - Other ancillary services revenue decreased to $13.11 million for the three months ended September 30, 2024, from $13.97 million in the same period of 2023, a decline of about 6.2%[17] Adjusted Metrics - Adjusted EBITDA for Q3 2024 was a loss of $1.4 million, an improvement from a loss of $3.0 million in Q3 2023[5] - Adjusted EBITDA for Q3 2024 was $(1.6) million, an improvement from $(3.2) million in Q3 2023[15] Cash and Investments - Douglas Elliman maintained cash and cash equivalents of $151.4 million as of September 30, 2024[8] - The company is exploring complementary acquisitions in ancillary businesses and expanding its property management business into Florida[1] Other Financial Metrics - The company reported a change in fair value of derivatives embedded within convertible debt of $(20.2) million in Q3 2024[15] - Operating loss for the real estate brokerage segment was $48.3 million in Q3 2024, compared to $36.8 million in Q3 2023[15] - Technology expenses rose to $6.0 million in Q3 2024, compared to $5.6 million in Q3 2023[14] - Interest expense decreased to $1.5 million in Q3 2024 from $4,000 in Q3 2023[14] - The company recorded total transactions of 21,466 for the three months ended September 30, 2024, slightly down from 21,606 in the same period of 2023[17] - The total adjustments for the three months ended September 30, 2024, amounted to $20.67 million, compared to $215, indicating significant restructuring and litigation settlements[16]