RE/MAX(US:RMAX)2021-05-09 13:47Financial Data and Key Metrics Changes - Total revenue for Q1 2021 was $72.3 million, an increase of approximately 3% compared to Q1 2020 [6][28] - Adjusted EBITDA was $23.2 million, up 19% year-over-year [6] - Adjusted diluted earnings per share increased to $0.46, up 18% [6] - Recurring revenue streams grew by 3% compared to Q1 2020 [28] Business Line Data and Key Metrics Changes - RE/MAX agent count increased significantly, growing more than 6% year-over-year, with over 8,000 agents added worldwide since March 2020 [12] - Motto Mortgage network closed nearly $2.5 billion in loan volume in 2020, more than doubling the 2019 total [22] - Motto franchise sales continued at a record pace, with over 70 franchises sold in the past year [21] Market Data and Key Metrics Changes - The US housing market remained active, with closings growing more than 14% year-over-year in March [9] - Homes sold in March had an average market time of just 38 days, significantly lower than the previous four-year average of 59 days [9][10] Company Strategy and Development Direction - The company is focused on expanding its value proposition for networks and helping affiliates succeed in the marketplace [33] - RE/MAX is enhancing its technology offerings, including the introduction of G73 for data analytics and the rollout of the booj platform to Canada [17][18] - The company aims to double Motto's loan volume in 2021, leveraging its unique position in the purchase market [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the housing market and its impact on agent recruitment and productivity [45] - The company anticipates organic growth to benefit from multiple drivers, including increased agent count and broker fees due to a healthy housing market [29] - Management noted that the integration of recent acquisitions is progressing well and is expected to contribute positively to future results [75] Other Important Information - RE/MAX introduced a healthcare offering for affiliates, which is expected to enhance recruitment and retention [15][56] - The company hosted its Annual Convention in a hybrid format, attracting over 6,000 attendees [15] Q&A Session Summary Question: Thoughts on tech product adoption and lead monetization - Management reported strong adoption of tech products like booj and First, with a significant increase in leads generated [36][38] - Currently, leads are referral fee-free, but there is potential for future monetization opportunities [40] Question: Update on agent count expectations in a strong housing market - Management noted that while the market is competitive, RE/MAX focuses on recruiting experienced agents who can leverage the company's tools and technology [43][45] Question: Update on margins and expectations for the balance of the year - Management expects margin improvement in the second half of the year, driven by strong top-line growth and franchise characteristics [49][50] Question: Specific markets seeing increased demand due to work-from-anywhere trends - Management indicated that there are no specific standout markets, but noted general trends of migration from high-density areas to suburbs [51][52] Question: Details on the new healthcare offering - The healthcare offering allows individual agents to opt-in for coverage, providing competitive rates and options similar to corporate healthcare plans [56] Question: Divergent agent trends between owned and independent operations - Management highlighted strong recruiting efforts and market confidence in Canada, contributing to agent growth [58][60] Question: Update on recent acquisitions and integrations - Management confirmed successful integration of Gadberry and Wemlo, enhancing technology and customer service capabilities [74][75]