Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was 93.5 million in Q3 2023 [14][43] - Adjusted EBITDA for Q3 2024 was a loss of 250,000 in Q3 2023 [14][48] - GAAP net loss for Q3 2024 totaled 0.40 per share, compared to a loss of 0.34 per share in Q3 2023 [47] Business Line Data and Key Metrics Changes - Real Estate division revenue was approximately 88.2 million in Q3 2023, primarily due to a 9% decrease in transaction volume [49] - Mortgage division revenue increased by 52% year-over-year, rising from 2.9 million in Q3 2024 [20] - Verus Title generated 834,000 in Q3 2023 [22] Market Data and Key Metrics Changes - Fathom completed approximately 9,331 transactions in Q3 2024, a decrease of approximately 9.5% compared to Q3 2023 [14] - The real estate agent network grew by 9.3% to approximately 2,383 agent licenses as of September 30, 2024, from approximately 11,333 on September 30, 2023 [15] Company Strategy and Development Direction - The acquisition of My Home Group is a strategic move to expand the national footprint and strengthen presence in Arizona's real estate market, expected to add approximately 2.95 million, which management believes will not impact ongoing operations [35][36] - The company ended Q3 with 13.4 million in cash, positioning it well for future growth initiatives [28][57] Q&A Session Summary Question: Can you provide more details on the My Home Group acquisition? - The introduction to My Home Group was facilitated by a real estate mergers and acquisition company, leading to discussions that revealed a mutual interest in merging [68] Question: What is working in your recruiting efforts? - The company has seen increased interest in its unique revenue share model, which offers two different plans, and is focusing on educating prospective agents [70] Question: Can you discuss the payment structure for the My Home Group acquisition? - The cash component of the acquisition was minimal, with the majority of the purchase price being in stock, reflecting a belief in the long-term value of the combined companies [77][78] Question: What is the expected impact of the My Home Group acquisition on revenue? - The acquisition is expected to add approximately 100 million in revenue for 2025, driven by higher productivity and transaction prices in the Arizona market [84] Question: How will interest rate changes impact future transactions? - Management indicated it is too early to assess the impact of recent interest rate cuts but emphasized a focus on growing transactions and revenue regardless of interest rate fluctuations [89]
Fathom Realty(FTHM) - 2024 Q3 - Earnings Call Transcript