Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $169 million, up 4% year-over-year, marking the first quarter of year-over-year revenue growth since the market disruption began two years ago [11][31] - Adjusted EBITDA improved to breakeven compared to a loss of $6.6 million in the prior year [44] - The net loss for the quarter was $5.4 million or $0.14 per share, an improvement from a net loss of $9.2 million or $0.24 per share last year [43] Business Line Data and Key Metrics Changes - Real estate brokerage commissions for Q3 were $142 million, accounting for 84% of total revenue, a 2% increase year-over-year [32] - Financing segment revenue grew 19% to $21 million during Q3, with 318 financing transactions totaling $2.1 billion in volume [37] - Private Client segment contributed 62% of brokerage revenue, down from 65% last year, with a 9% decrease in dollar volume [34] Market Data and Key Metrics Changes - Private client revenue declined 4.3% year-over-year, while middle market and larger transaction revenue increased by 4% and 23.5%, respectively [15] - The average transaction size during Q3 was approximately $6.4 million, up 17% from $5.5 million a year ago [33] - Total sales volume for the nine-month period was $21.4 billion across 3,705 transactions, down 3% year-over-year [33] Company Strategy and Development Direction - The company is focused on a dual strategy of acquiring experienced talent and organic hiring to strengthen its market position [23][29] - Continued investment in proprietary technology and client services is a priority, alongside pursuing strategic acquisition targets [30][47] - The company aims to enhance its platform and maximize productivity to drive growth and increase market share [29] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a market recovery, despite challenges from interest rate volatility and restrictive lending [48] - The effective tax rate for the quarter was 15%, with expectations for the full year between 13% and 16% [45] - The company anticipates productivity improvements as interest rates stabilize, supporting a positive outlook for commercial real estate demand [26][28] Other Important Information - The company closed over 1,300 brokerage transactions totaling $8.5 billion in volume during the quarter [19] - Total operating expenses for Q3 were $180 million, a 1% increase year-over-year, while year-to-date expenses were down 5% [39] - The company maintains a strong balance sheet with no debt and $349 million in cash and marketable securities [45] Q&A Session Summary Question: Can you talk about the financing environment for commercial real estate deals, especially for the Private Client markets? - Management noted a gradual easing by banks and credit unions, but obtaining financing for smaller transactions remains challenging due to conservative lending practices [51][52] Question: Do you think we can get back to a long-term average run rate sometime in 2025? - Management believes the market is currently 35% to 40% below long-term averages but is confident it will recover, albeit gradually [59][60] Question: Are there any potential changes to laws or regulations specific to commercial real estate that could impact the sector? - Management highlighted ongoing discussions around the 1031 Exchange Tax and expressed optimism about the election outcome being favorable for real estate and economic growth [68][70] Question: Can you give an update on the opportunity set with respect to M&A? - Management is focused on acquiring teams and boutiques that fit into their brokerage operations and is also exploring complementary businesses such as appraisal and investment management [75][76]

Marcus & Millichap MARCUS & MILLICHAP, INC. REPORTS RESULTS FOR THIRD QUARTER 2024 CALABASAS, Calif., November 8, 2024 -- (BUSINESS WIRE) -- Marcus & Millichap, Inc. (the "Company", "Marcus & Millichap", or "MMI") (NYSE: MMI), a leading national real estate services firm specializing in commercial real estate investment sales, financing, research and advisory services, reported its third quarter results today. Third Quarter 2024 Highlights Compared to Third Quarter 2023 • Total revenue of $168.5 million, co ...

Financial Performance - Total revenue for Q2 2024 was $158.4 million, a decrease of $4.5 million or 2.8% compared to Q2 2023 revenue of $162.9 million[160]. - Revenue from real estate brokerage commissions decreased to $135.4 million, down $4.9 million or 3.5% from $140.3 million in Q2 2023, attributed to a 4.9% decrease in total sales volume[161]. - For the six months ended June 30, 2024, total revenue was $287.5 million, a decrease of $30.2 million or 9.5% compared to $317.7 million for the same period in 2023[170]. - Revenue from real estate brokerage commissions for the six months ended June 30, 2024 decreased to $244.9 million, down $30.5 million or 11.1% from $275.4 million in the same period in 2023[171]. - Net loss for Q2 2024 was $5.5 million, an improvement of $3.2 million or 36.6% compared to a net loss of $8.7 million in Q2 2023[160]. - Adjusted EBITDA for Q2 2024 was $1.4 million, a significant increase of $2.5 million compared to an adjusted EBITDA loss of $1.1 million in Q2 2023, reflecting a 236.5% improvement[160]. - Adjusted EBITDA for the six months ended June 30, 2024, was $(8,641) thousand, compared to $(8,479) thousand for the same period in 2023[180]. Transaction Activity - As of June 30, 2024, the company closed 1,800 investment sales and financing transactions with a total sales volume of approximately $9.5 billion for the quarter[118]. - The company closed 3,364 transactions with a total sales volume of approximately $19.2 billion for the six months ended June 30, 2024[118]. - In Q2 2024, the company closed over 1,800 transactions with a total sales volume of approximately $9.5 billion, compared to 1,900 transactions and $9.7 billion in Q2 2023, indicating a decline in transaction activity[155]. - The average transaction size for real estate brokerage increased to $5.636 million in Q2 2024 from $5.303 million in Q2 2023, showing a growth of 6.3%[156]. Revenue Sources - Approximately 86% of the company's revenue for the three months ended June 30, 2024, was generated from real estate brokerage commissions, totaling $135.4 million[119]. - The private client market (properties priced from $1 million to less than $10 million) contributed approximately 63% of real estate brokerage commissions for Q2 2024[120]. - The company is the industry leader in serving private clients in the $1-$10 million market, which contributed approximately 65% of real estate brokerage commissions during the first half of 2024[120]. - Financing fees increased to $18.3 million, up $0.4 million or 2.2% from $17.9 million in Q2 2023, driven by an 11.0% increase in total financing volume[161]. Operating Expenses - Total operating expenses for Q2 2024 were $166.4 million, a decrease of $7.1 million or 4.1% from $173.5 million in Q2 2023[163]. - Cost of services decreased to $98.1 million, down $3.1 million or 3.0% from $101.2 million in Q2 2023, primarily due to lower commission expenses[164]. - Selling, general, and administrative expenses decreased to $65.0 million, down $3.9 million or 5.7% from $68.9 million in Q2 2023, due to reduced marketing support[165]. Market Conditions - The commercial real estate market is experiencing a slowdown due to sustained higher interest rates and tighter lender underwriting, leading to a reduced volume of available debt capital[133]. - The expectation gap between buyers and sellers remains challenging, with lending and investor activity below pre-pandemic historical norms[131]. - The industrial vacancy rate increased in Q2 2024 due to elevated construction exceeding space demand, while retail vacancy rates remained near record lows[130]. - The company is facing challenges in the office property segment, with increased uncertainty and potential for additional foreclosures[138]. Cash Flow and Financial Position - Total cash, cash equivalents, and restricted cash decreased by $8.8 million to $162.0 million at June 30, 2024, compared to $170.8 million at December 31, 2023[182]. - Cash flows used in operating activities were $50.2 million for the six months ended June 30, 2024, compared to $94.8 million for the same period in 2023, a decrease of $44.6 million[183]. - Cash flows provided by investing activities were $58.8 million for the six months ended June 30, 2024, compared to $82.4 million for the same period in 2023, a decrease of $23.6 million[185]. - Cash flows used in financing activities were $17.2 million for the six months ended June 30, 2024, compared to $52.4 million for the same period in 2023, a decrease of $35.1 million[186]. Interest Rate and Investment Risks - The company does not face material interest rate risk with respect to other assets and liabilities[195]. - The functional currency of the Canadian operations is the Canadian dollar, exposing the company to foreign currency exchange rate risk[195]. - Historically, foreign exchange rate risk has not been material for the company[195]. - A 2% decrease in interest rates would result in an approximate increase in the fair value of investments by $3.84 million[197]. - A 1% decrease in interest rates would result in an approximate increase in the fair value of investments by $1.92 million[197]. - A 1% increase in interest rates would result in a decrease in the fair value of investments by $1.919 million[197]. - A 2% increase in interest rates would result in a decrease in the fair value of investments by $3.837 million[197]. Construction and Development - The completion of approximately 480,000 new multifamily units is anticipated in 2024, setting a new construction high[129].

Financial Data and Key Metrics Changes - Revenue for Q2 2024 was $158 million, a decrease from $163 million in the prior year quarter, with a net loss of $5.5 million compared to a net loss of $8.7 million last year [16][21] - Adjusted EBITDA increased to $1.4 million from a loss of $1.1 million in the prior year [22] - Year-to-date revenue was $287 million, down from $318 million last year, with a year-to-date net loss of $15.5 million compared to $14.6 million last year [16][21] Business Line Data and Key Metrics Changes - Real estate brokerage commission revenue for Q2 was $135 million, accounting for 86% of total revenue, down from $140 million last year [16] - Private Client segment contributed 63% of brokerage revenue, down from 69% last year, with a 19% decline in dollar volume [18] - Financing segment revenue was $18 million, similar to last year, with 272 financing transactions totaling $1.8 billion [19] Market Data and Key Metrics Changes - The company closed over 1,200 brokerage transactions with a total volume of $7.2 billion, reflecting a positive trend in middle market and larger sales [9] - Average transaction size increased to approximately $5.6 million, up 6% from $5.3 million a year ago [17] - Financing transactions were down 4%, but financing volume increased by 11% due to larger transactions [9][10] Company Strategy and Development Direction - The company aims to increase inventory, maintain elevated client outreach, and incorporate best-in-class brokerage technology [12] - Continued investment in technology and talent acquisition is a priority, with a focus on enhancing internal and external services [13][14] - The company is exploring selective acquisition and investment targets while maintaining a disciplined capital allocation strategy [15][23] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging quarter due to high interest rates but observed positive indicators such as growth in new inventory and price adjustments [5][7] - The expectation of a potential interest rate cut by the Fed could serve as a catalyst for real estate transactions [12][24] - The company remains cautiously optimistic about the near-term outlook, anticipating a gradual recovery in transactional activity [24][25] Other Important Information - Total operating expenses for Q2 were $166 million, 4% lower than last year, with SG&A expenses down by 6% [20][21] - The company remains well-capitalized with no debt and $336 million in cash and equivalents [22] - A semiannual dividend of $0.25 per share was declared, reflecting the company's commitment to returning capital to shareholders [23] Q&A Session Summary Question: Can you talk about the resiliency in transaction volume in different size segments? - Management noted that the Private Client segment faced challenges due to a banking crisis and price discovery issues, while larger transactions saw an uptick due to more reasonable pricing [26][27] Question: Are distressed transactions part of the potential surge in the market? - Management expects more distressed situations to come to market, but the main driver for transaction activity will be lower interest rates and resetting values [31][32] Question: What are the external growth opportunities being explored? - Management indicated that while there is interest from potential targets, alignment on valuation expectations remains a challenge [34][36] Question: How do you feel about share repurchases? - Management stated that share repurchases are part of the capital allocation strategy, but they are currently focusing on internal opportunities [37][38]

2024 Earnings Conference Call August 7, 2024 Second Quarter 2024 1 FORWARD-LOOKING STATEMENTS This release includes forward-looking statements, including our expectations regarding the long-term outlook of the commercial real estate transaction market and our positioning within it, our belief relating to the Company's long-term growth, our assessment of the key factors influencing the Company's business outlook for 2024 and the execution of our capital return program, including a semi-annual dividend and th ...

Marcus & Millichap MARCUS & MILLICHAP, INC. REPORTS RESULTS FOR SECOND QUARTER 2024 CALABASAS, Calif., August 7, 2024 -- (BUSINESS WIRE) -- Marcus & Millichap, Inc. (the "Company", "Marcus & Millichap", or "MMI") (NYSE: MMI), a leading national real estate services firm specializing in commercial real estate investment sales, financing, research and advisory services, reported its second quarter results today. Second Quarter 2024 Highlights Compared to Second Quarter 2023 • Total revenue of $158.4 million, ...

Searchlight Resources Inc. (TSXV: SCLT) (OTCQB: SCLTF) is a Canadian mineral exploration and development company focused on Saskatchewan, Canada, which has been ranked as the top location for mining investment in Canada by the Fraser Institute. The Company's exploration model of Project Generation coupled with Targeted Exploration, focuses on uranium, rare earths, copper, nickel and gold throughout the province. On behalf of the Board of Directors, "Stephen Wallace" Stephen Wallace, President, CEO and Direc ...

Source: ImagineStock / Shutterstock.com Net loss was $2.3 million, a 106.8% decrease from 2022's $33.8 million profit. The report also showed a $15 million loss from Kronos Worldwide, potentially signifying unsustainable demand fluctuations. As a result, Barclays (NYSE:BCS) recommends selling NL stock. Read between the lines: Glickman's statement says 2024 will not be Zim Integrated's turnaround year. No wonder analysts rate ZIM stock as a hold, though some sources rate it as a sell. Rick Orford is a Wall S ...

Marcus & Millichap, Inc. (NYSE:MMI) Q1 2024 Earnings Conference Call May 8, 2024 10:30 AM ET Corporate Participants Jacques Cornet - Investor Relations, ICR Hessam Nadji - President and Chief Executive Officer Steve DeGennaro - Chief Financial Officer Conference Call Participants Young Ku - Wells Fargo Operator Greetings, and welcome to Marcus & Millichap's First Quarter 2024 Earnings Conference Call. As a reminder, this call is being recorded. I would now like to turn the conference over to your host, Jacq ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|---------------|-------|-------|-------|-------|--------|--------|-------| | | | | | | | | | | | | | | | | | | | | | | | 1,800 | 1,782 | (8.1) % 1,638 | | | | $150 | | (5.9)% | | | 1,500 | | | | | | | $105.6 | | $99.3 | | 1,200 | | | | | | $100 | | | | | 900 | | | | | | | | | | | 600 | | | | | | $50 | | | | | 300 | | | | | | | | | | | 0 | Q1'23 | Q1'24 | | | | $0 | Q1'23 | | Q1'24 | Earnings Conference Call May 8, 2024 FORWARD-LO ...