Fathom Realty(FTHM) - 2023 Q4 - Annual Results

Company Overview and Strategic Focus Introduction and CEO Commentary Fathom Holdings Inc. reported Q4 and full-year 2023 results, emphasizing agent growth and cost optimization for future profitability - Fathom Holdings Inc. is a national, technology-driven, end-to-end real estate services platform integrating residential brokerage, mortgage, title, insurance, and SaaS services[1][24] - The company aims to achieve and maintain positive Adjusted EBITDA[1][8][19] - CEO Marco Fregenal stated the company is focused on growth strategies, expanding its agent base and optimizing cost structure to prepare for profitable growth in 2024[2] Fourth Quarter 2023 Financial Performance Operational Metrics Fathom's agent network grew significantly in Q4 2023, outperforming industry averages, with transaction volume declining less than the market Agent Network Growth | Metric | December 31, 2023 | December 31, 2022 | Growth Rate (YoY) | | :--- | :--- | :--- | :--- | | Number of Agents | ~11,795 | ~10,370 | 13.7% | | Industry Decline | - | ~1.61% | - | Real Estate Transaction Volume | Metric | Q4 2023 | Q4 2022 | Change (YoY) | | :--- | :--- | :--- | :--- | | Fathom Transactions | ~8,290 | - | -11.0% | | Industry Transactions | - | - | -13.8% | Revenue Breakdown Q4 2023 total revenue decreased 11.2% YoY, primarily due to brokerage volume decline, partially offset by a 19.1% increase in ancillary services Total Revenue | Metric | Q4 2023 (million USD) | Q4 2022 (million USD) | Change (YoY) | | :--- | :--- | :--- | :--- | | Total Revenue | $74.1 | $83.4 | -11.2% | | Brokerage Revenue | - | - | -12.8% | | Ancillary Services Revenue | - | - | +19.1% | Segment Revenue | (Revenue in million USD) | Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | | :--- | :--- | :--- | | Real Estate Brokerage | $69.4 | $79.5 | | Mortgage | $1.8 | $1.3 | | Technology | $0.8 | $0.7 | | Corporate and other services (a) | $2.1 | $1.9 | | Total revenue | $74.1 | $83.4 | Profitability Q4 2023 GAAP net loss narrowed from ancillary revenue and cost savings, despite higher stock compensation and taxes, with Adjusted EBITDA loss improving GAAP Net Loss and Loss Per Share | Metric | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | GAAP Net Loss | $8.4 million | $9.9 million | Decrease of $1.5 million | | Loss Per Share | $0.50 | $0.63 | Decrease of $0.13 | | Reasons for Loss Reduction | Increased ancillary revenue, cost savings | - | - | | Offsetting Factors | Increased stock-based compensation, interest and income tax expenses | - | - | General and Administrative Expenses | Metric | Q4 2023 (million USD) | Q4 2022 (million USD) | Change (YoY) | | :--- | :--- | :--- | :--- | | General and Administrative Expenses | $10.1 | $10.8 | -6.3% | Adjusted EBITDA Loss | Metric | Q4 2023 (million USD) | Q4 2022 (million USD) | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA Loss | $2.9 | $5.9 | Improvement of $3.0 million | Non-GAAP Adjusted EBITDA Definition This section defines Adjusted EBITDA as a non-GAAP financial measure, offering additional insight into the company's cash flow and core operational performance - Adjusted EBITDA is a non-GAAP financial measure used to monitor the company's cash flow performance, providing additional information on core operating results[9] Full Year 2023 Financial Performance Operational Metrics Fathom's agent network grew throughout 2023, with transaction volume declining less than the industry, demonstrating resilience in a challenging market Agent Network Growth | Metric | December 31, 2023 | December 31, 2022 | Growth Rate (YoY) | | :--- | :--- | :--- | :--- | | Number of Agents | ~11,795 | ~10,370 | 13.7% | Real Estate Transaction Volume | Metric | Full Year 2023 | Full Year 2022 | Change (YoY) | | :--- | :--- | :--- | :--- | | Fathom Transactions | ~38,139 | - | -14