Anywhere(HOUS) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $1,200,000,000, representing a 7$1,000,000, an improvement of $12,000,000 or 92$130,000,000, showing a $15,000,000 year-over-year improvement [16] Business Line Data and Key Metrics Changes - The Anywhere Brands business generated$97,000,000 in operating EBITDA, an increase of $7,000,000 due to higher transaction volume and lower expenses [17] - The Anywhere Advisors segment had an operating EBITDA of negative$47,000,000, improving by $12,000,000 year-over-year driven by higher revenue and lower operating costs [17] - The Integrated Services segment reported an operating EBITDA of negative$18,000,000, down $3,000,000 from Q1 2024, despite a revenue increase of$7,000,000 [18] Market Data and Key Metrics Changes - The company experienced a 6% volume increase, significantly outperforming the National Association of Realtors' (NAR) 3% volume growth [8] - Luxury segment volume was up 16% year-over-year, with luxury listings increasing by 12% [9][10] - April volumes were relatively flat compared to Q1, attributed to market and macroeconomic volatility [8] Company Strategy and Development Direction - The company launched "Reimagine 25" to transform operations and enhance customer experiences through technology [9] - The focus remains on expanding luxury leadership and enhancing the integrated business model covering all aspects of real estate transactions [5][6] - The company aims to achieve $100,000,000 in cost savings for 2025, with$14,000,000 already realized in Q1 [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a challenging housing market and emphasized the importance of broad distribution of listings for customer benefit [14][34] - The company anticipates operating EBITDA for the full year to be around $350,000,000, with the housing market being a significant variable [23] - Management noted that luxury continues to outperform, with positive trends in volume and pricing despite broader market volatility [100] Other Important Information - The company is actively pursuing AI initiatives to enhance productivity and operational efficiency [12] - There is a commitment to transparency and consumer choice in listing distribution, which management believes will benefit long-term business sustainability [14][34] Q&A Session Summary Question: Insights on clear cooperation policy and its impact on investors - Management emphasized the importance of broad listing distribution for achieving the best prices for sellers and maintaining customer trust [29][34] Question: Commentary on commission rates and market dynamics - Management noted a slight decline in commission rates, attributed to both buy-side and list-side pressures, with luxury segments experiencing more significant changes [36][39] Question: Performance of integrated services segment and investment impacts - Management acknowledged investments in technology and agent recruitment as factors affecting the integrated services segment, with expectations for improved performance in the latter half of the year [69][70] Question: Trends in luxury market and seller behavior - Management reported that luxury listings continue to perform well, with no significant changes in days on market or cancellation rates observed in April [98][100]