Anywhere(US:HOUS)2025-02-13 21:52Financial Data and Key Metrics Changes - The company generated $290 million of operating EBITDA in 2024, an increase of $35 million from the prior year, and delivered $50 million of free cash flow, $70 million excluding a $20 million litigation settlement payment [14][34] - Q4 revenue was $1.4 billion, up 9% year-over-year, and operating EBITDA was $52 million, an increase of 86% year-over-year [34] - Full year revenue was $5.7 billion, up 1% year-over-year, and operating EBITDA was $290 million, an increase of 14% year-over-year [34][35] Business Line Data and Key Metrics Changes - The Anywhere Brands business generated $521 million in operating EBITDA, down $6 million primarily due to foreign currency impacts [40] - Anywhere Advisors had an operating EBITDA of negative $93 million, an improvement of $42 million year-over-year, driven by higher revenue and lower operating costs [41] - Anywhere Integrated Services reported an operating EBITDA of negative $13 million, an improvement of $3 million year-over-year [43] Market Data and Key Metrics Changes - Closed transaction volume grew by 13% year-over-year, with luxury volume up nearly 10% for the year and approximately 20% in Q4 [14][19] - The company sold over 1,000 homes priced at $10 million or more in 2024, indicating strong performance in the luxury market [20] - January 2025 saw a 12% closed volume growth year-over-year, driven by price gains, while open volume was positive at 4% [25] Company Strategy and Development Direction - The company is focused on new technologies and automation to unlock cost-saving opportunities, targeting another $100 million in savings for 2025 [15] - The Reimagine '25 initiative aims to transform operations and leverage generative AI and other technologies to enhance customer experiences and reduce costs [24][39] - The company is exploring M&A opportunities to augment growth, emphasizing a disciplined approach to profitability [29] Management's Comments on Operating Environment and Future Outlook - Management noted that the housing market remains challenged, particularly due to a lack of supply and pressure on unit transactions [25] - The company expects operating EBITDA for 2025 to be about $350 million, with the housing market being the biggest swing factor [46] - Management expressed confidence in the company's ability to deliver results regardless of market conditions, highlighting industry-leading profitability and solid cash flow generation [49] Other Important Information - The company updated its definition of operating EBITDA to include adjustments for noncash stock-based compensation and certain legal matters, enhancing comparability with industry peers [5] - The company is actively monitoring the impact of California wildfires on its operations and employees, with about 1,000 agents affected [44][45] Q&A Session Summary Question: What are the underlying assumptions for the $350 million operating EBITDA outlook for 2025? - Management indicated that the housing market is the biggest swing factor and will provide updates quarterly as conditions evolve [54][56] Question: What is the company's position on the Clear Cooperation Policy? - Management advocates for a relaxed version of the policy to provide more flexibility for sellers while maintaining transparency and access to inventory [26][61] Question: Can you discuss the franchise pipeline heading into 2025? - Management noted a strong pipeline with interest from both established independent brokerages and new players, highlighting the value proposition offered to franchisees [70][75] Question: How does the tax refund timing impact free cash flow? - The tax refund will benefit free cash flow but does not impact EBITDA, with the refund expected in the first half of 2025 [78] Question: How does the adjustment for noncash compensation impact the 2025 guidance? - The adjustments have a relatively small impact on past years, with no significant headwind or tailwind expected in the $60 million growth for 2025 [122][123]