RLGY - Earnings call transcript Q4 2020

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Operator

Good morning, and welcome to the Realogy Holdings Corporation's Fourth Quarter 2020 Earnings Conference Call via webcast. Today's call is being recorded, and a written transcript will be made available in the Investor Information section of the company's Web site tomorrow. A webcast replay will also be made available on the company's Web site. At this time, I would like to turn the conference over to Realogy's Senior Vice President, Alicia Swift. Please go ahead, Alicia.

Alicia Swift

Carmen. you, Thank welcome call. and fourth XXXX quarter Good to conference earnings morning, Realogy's

On Realogy's today Ryan me the with call are Chief Officer, Schneider; Financial CEO Charlotte Simonelli. and President, and

the Slide expectations current of about on and future other These the this and economic statements results be on statements shown As are its the presentation, based making company X statements during call. forward-looking environment. will the current

many crisis other of are inherently subject significant or uncertainties Forward-looking market control and results volumes. in and management, continued the contingencies, related forward-looking or are statements among projections and expressed Actual housing implied the the may of which economic, to of the and beyond others competitive materially the differ to statements. those refinancing strength including ongoing uncertainties COVID from

forward-looking listen earnings Important who those as our herein the made SEC press information we and are actual in not been to on rebroadcast discussed the could materially that Also, release earnings release. our of and updated will these SEC this XX, have regarding filings. financial measures results non-GAAP the be annual certain financial other are that you cause quarterly to to from and included non-GAAP call. this differ subsequent remind assumptions initial our those and well in presentation, as important call specified issued today remarks factors important of is earnings per statements as in February rules, today, For measures the

this X press in reflect financial the segment. has found RFG structure. segment. remains Group to and been into in to Slide of investor reporting operations refers the now presentation Relocation of to be information XX in All is included also restated this has Cartus within Leads business and reported QX our reclassified the the been change the RFG Additionally, also The continuing release, change Table

Schneider. President, to the Now our call turn CEO over I Ryan and will

Ryan Schneider

Good morning, Alicia. you, everyone. Thank

We the past few have for been years. transforming Realogy

we more and are we are We are faster, leaner innovative.

We are growth. driving more organic

technology. our We are differentiating

since working of incredible results; in the leverage to consolidated balance by in of were debt our with are and half year, million XXXX. an streamlining businesses. in up and XXXX’s free still in X.Xx, $X.X We get market transformation. and cash January back December closer while XX% volume delivered our ratio we gains net operating are the in our transactional was consumer operating midst improving our the We the to accelerate we enter XXXX open momentum. growth and We year-over-year And challenges, public XX% we reduced EBITDA, XXX up sheet. Realogy billion went share volume to able lowest level XXXX $XXX is volume year-over-year. all double the was And net even open flow, substantially digit million great

XXXX. in integrated businesses mortgage capturing closing title our deliver for a The future Our and leveraged positioned technology million experience of XX% having and with to customer residential in We economics. operating where the closed buying better a and incremental a XXXX, it's is is volume we in today, well for EBITDA overall believe selling estate year-over-year, market in customers, future. share strategically real and is where January XXXX. the even the days and business two XXX Realogy January than and over home was products going In up greater experience more creating versus fewer

all to to support the customers improved insights transaction economics. technology a looking drive future adoption using creates XXXX acceleration agents saw remain products central in our QX and at product market close to The is the mortgage a Our and into investments businesses, products, the The home starts franchisees data especially XXXX. in closing data closing homes, way agents brands, insights joint usage and growth volumes in year-over-year, and we XXXX, more future better are increased the combined the closing year-over-year. distinctive home, is differentiated were its share when venture and and created easily technology industry. with digital products our customer QX developing, high X,XXX% and XXXX, a digital advantages today their when Xx the had technology these with future. usage ranging on experience, of products who throughout substantial Strategically end. in helped The a gains for our from helped volume digital digital highest including and product title marketing These expanding consumer our on the the

real capture positioned the franchise brand well in brands that And invest of and industry from We And success growth we demonstrates in a are with all higher launched market. power future requires in the growth end driving of as Corcoran are the XX% the expanded year. Sotheby's with multiple Realty finally, even having ability in over brands. parts of International incredible strong differentiation up brand. our across evolves. the seeing the the successfully back half brand the are midst we our volume pandemic. It the outsized in the And market, We XXXX, to

estate us just in but different positions allows invest Our technology us the in strong to experience in invest flow and to free real models. in cash brands, customer not

America, example, market agents purchased And XX,XXX selling their playing Partners we as over go pure For joint business. deeply joint homes the already buying RealSure our to they've homes against incredibly experienced to us a venture are and ability differentiated core partner, and compete our excited gives iBuyers. Home head-to-head the iBuying of in at in is our that offering venture provides

option markets XXXX. Our evolves. and live as are in about in the markets XX we XX program value planning This to real is be gives us in industry

customers as position extraordinarily a was challenging future role strategic our expertise starts great with as helped agents’ trusted affiliated Realogy’s clearly our navigate and power with strong and in done an of employees of results the safely has Their even our inventive most the utilizing year. paired advisor demonstrated Now the staff also XXXX creativity, for agents, they skillfully customers progress on The enable get to of agents. practices our data and support and to deals field circumstances the technology, and to marketing hybrid ways found in-person transitioned seamlessly Realogy’s And enhanced corporate work. more difficult insights XXXX. technology. successes them remote

an square of collaboration. We to are feet transforming on showcases, feet square emphasis offices Realogy’s headquarters and of from XXX,XXX brand with technology XX,XXX

employees resilient Our ways they've of new results speak themselves. and for our embraced been working transition during this as have

closed increased XX% what across the volume and year-over-year, in now volume New to seeing QX similar franchise, negative growth housing City with Let me being turn we're year-over-year. XXXX with brokerage still brokerage’s market. even Realogy’s transaction York

January January up and open year, strong basis volume to also of And same-day a growth franchise saw volume New even is As you XXXX I with York on versus positive we with volume XX% XX% two for business fewer a equally month year-over-year open are across is closed up ahead off City brokerage. we is closed volume and the brokerage told prior days the January. was that to very franchise. start. up in excited in move

this momentum? working. first, our So driving what's are actions So

brokerage own our are We base. agent growing

quarters. Our agent the five past retention quarter has every for improved

month. and operating in our is Our opened Corcoran just markets XX franchise business first domestic franchise already this we international

data to are technology deliver is to International Realty do products, differentiated business and help investments and more off. performance our Sotheby’s products products showing paying marketing Our agents transactions

geographies this market’s it are owned Second, and at million from the capitalize per X.X million across to and XXXX doing suburban within market trend needs. on are year to the for consumer the to units in destinations. strong positioned homes And and housing have are their for from better brokerage, tax fact plus The six great, to our side the the the propelling Consumers at months been market the clearly well country. sold. the X They come urban the accelerating that year footprint is meet market in a geographies seemed unstuck rotating with they almost are With attractive weather decade, attractive existing demand. rotating find national we're on units to past continuing. trends our franchise footprint low suburban ending

work more clearly and of forward. driving these trends crisis behaviors, home While work these the originated is COVID many remote from

to very Finally, for and seeing continue housing millennials rates. we're good homeownership their rates increase are interest low

market, Now future. uncertainty macro while I in mind the midst housing are strength keep we and the love of still in the telling can't the of you predict health about public and a we

given So constraints consumer the potential the macro and market. the trends uncertainty in especially housing we are monitoring inventory

deliver and market. So up, Realogy flow. structure success pulling into in powerful capital future. delivered of is the profitability We significantly and our execution. Realogy We exceptional improved and strategic the an to cash had free positioned believe well we demonstrated We've year lead way

the for Now of call financials. over I a to will the turn Charlotte review

Charlotte Simonelli

financial you, Realogy. for XXXX XXXX delivered billion Good tremendous was execution Full operating everyone. $X.X we and XX% a in EBITDA, X% year XXX Ryan. an and revenue to Thank morning, million of increase from grew XXXX. of year operational

volume and steady our Having delivered QX years. up share have transactions cash in million expanding X.X very one-half a past despite of been XXXX we and record New in million of delivered held was and operating transaction million over impactful a franchisees generated two few growth. housing consecutive gains growth, free of dramatic we and QX for XXX our title, unit saw flow, million share XXX the two versus compelling brokerage XXX the year-over-year in and in these QX. We up double franchise year. market prior under City market in and share by prior also that EBITDA, consecutive QX most the up year growth were XX.X%. contraction remains share market. We the growth we the agents was We year. growth. years, QX quarters versus and yearlong of at our market few growth market York market and QX XX% QX mortgage Operationally, which of been as during closed headwinds in quarters XXX is two-thirds pleased our fact investing year pressure What had and full million XXXX digits We Unit

continued million costs, XXX savings. delivering cost in in aggressively to over savings XX cost lower temporary million We permanent and

savings XX changes forward. an savings expect XXXX. permanent drive deliver going working of million of some and ways these will brought of We new to in additional COVID

rate as XXXX. million amid QX Even do QX increased repeat permanent XXX additional in XXX COVID volume please commission executed share things. higher by closed produced pressure in we savings, split points, was two in not greater lion's sight The agents of points that, very schedule. of We not that savings a and year-over-year transactions XXX lose splits agents more temporary driven high up will by realize as saw other a were our upward share and cost Commission we progressed and in year. approximately the basis the of as basis

We investments upward and retention. pressure grow our from to also saw agents improve

and brokerage split USAA in basis each net of our the The the primarily agent X% loss previous mix. business and remaining the quarter, was driven improved like lower owned Our we our agent grew retention of geographic and the XX economics investments. Property year, by sale base of business the points Frameworks

improved part pressure We and by growing approximately expect We substantially base, in capturing our split and of structure XXXX the versus will and by offset XXX our our net consumer in on balance increases will million transaction. depend improved the program the we ongoing by continued have splits economics capital and market housing reduced debt sheet. reduction work also on from to cost our more strength agent XXXX, leveraging which

leverage of ratio an secured senior X.Xx the leverage December XX, at was of net as and total XXXX. is all-time low X.Xx Our ratio

below XXX on now transactions. after of statutory basis pro forma with Our senior is million ended of including secured Xx our XXX We refinancing cash. approximately ratio cash, a year recent leverage million the

zero XXX XXX raised to proceeds our the and Term revolver a structure, in million to flow million capital maturing Term We zero XXXX B A proactive Our for has despite and opportunistically portions QX unsecured been quarter. used years, X.XX% notes of was October borrowing and with steps in several Loan outstanding million. our XXXX. In in a our free Loan secured debt. XXXX, first and time negative we senior by tackled Realogy was QX balance address maturities. since by XXXX coupon typically aggressively cash taking reduced being XXX early The the senior reduce

Term our also close more an extension of Loan We of amendment our of slightly XX% finalized revolver. and to and A than two-thirds

XXXX, approximately substantially have a remain ability maturities of end, down only transactions, those debt shifted As XX% our to XXX and these and structure maturities. now We in notes satisfy lengthened result we maturity from capital profile. we more in to in million our confident our unsecured year

capital priorities Our are unchanged. allocation

down prioritize significant XXXX am improvements our We and XXXX. results operating delivered Realogy exceptional structure and The are our business in investing in tremendous will puts continue financial paying team to more the for am questions. exited in in the efficiently it deliver we Wrapping of momentum. strength strength will service with and I we to to we of full operating we conjunction I capital results results our a with effectively. us up, proud scale position debt in as and Realogy’s XXXX. that, entering of XXXX. growth. With excited power of the profitable size, model business we up leverage executed your future to continue the extremely for and open

Operator

Instructions]. you. Thank [Operator

Stephens. with Campbell John from is question first Our

Your question please.

John Campbell

morning. year. Good wrapping Hi, on guys. up a great Congrats

Ryan Schneider

John. Thanks,

John Campbell

that throughout lift, impressive volume was transaction overall the the year. On

I really out in back But, a considering the to in mean stood out particularly? you half Ryan, result think the and really what back share the can year market. You the New the you that's the helped continued headwinds organic guys that gains it drive and talk of good -- York half of maybe

Ryan Schneider

excited Yes. that market QX market are stuff competitive under QX. drove really gains been in some Look, share with both to to and it’s this, for of relative years. really a substantial pressure secret NAR things pretty we've two couple share show John. some There some no We're

So one our assets. is

Our is growth agent up.

talked up. our Charlotte is about, As retention

franchise doing talked our some As Charlotte about, and great. and of just had success are both brands we've I expansion

of business. very which as the and part franchise the is, strongest end, higher Corcoran housing our brand, Sotheby’s of positioned we the our as the at with higher want our market be brand, you well think place or are the footprint to end was Coldwell and a owned our well second at The geographic is Banker brand, I both really

a share end and would was the for just gave was XXXX. fact it I that of the market say also last well the bunch you, stronger at housing our piece of actions high a So part positioned half I was and this that list the gain the just we're that of of of a

John Campbell

mortgage Yes, then the quick JV color. Thanks there. that makes of And just for questions on sense. impact, couple a

how then the we at a depends that first, that XXXX? how but So I know did was the contribution a in lot throughout XXXX in quarter? And should the then about be versus on just much level, And particular full contribute just XXXX? macro, what thinking impact high

Ryan Schneider

Well, some give Charlotte a here. of can give you just numbers, you little but let me strategy bit

-- of a we that the lost on and But brand stuff. don't is, going and lose years some One money benefited we thing. joint two there's hope like of started you new we and people and But So two I strategically I expanding kind dirt had strong venture was just all this that. refinance year and share, eat mortgage been it to obviously, thing sight is good this other a answer there's ago, the market I mortgage we've on at for and the market mort. from gave things

officer has doing really Our of with our good, business is coverage it, loan brokerage service great. greater is expansion quality been our our

so we more coverage, got XXXX market. along hot penetration, And just expansion what part was a the of et with in better and cetera, strategic geographic

will and was that title goes a getting for XXXX, grew affect market a we more from our backwards lot our product a if strategic bit refi closing So us, lot little the of usage. expansion, what build XXXX But it. digital in

going some but want year the a the us, that. liked and the that, for the strategic do side, was move excited and we're about market was just great on macro of like share, to we the give market some of is you John XXXX we're of so, with And clearly any refi about? and to asked it the Charlotte, he it numbers trajectory,

Charlotte Simonelli

sure. Yes,

prior So operating year. which title was versus was the XX QX XX total, in the group EBITDA million million, up

that done mortgage we the just see, last piece also outstanding prevalent Ryan's to There’s there's results. But as refinancing that margins, a year. gain is more grow So of higher were there's on lot sale to than can point, to things There's impact. to a a we've business. you -- add big it had which and

So continue good it’s about off a things excited we'll we're things all year, to What is watch still those watching. start are to and we're this it.

John Campbell

great. Okay, Thank you.

Operator

you. Thank

Our next Ryan question Associates. from comes McKeveny Zelman with &

please. question Your

Ryan McKeveny

question Yes. Good performance up on mortgage I morning John's performance. congrats wanted and around and title through on the follow the to year. the

calling you on side obviously a of combination expansion, of of things. hear market I strategic Ryan, uplift digital So, dynamics, out some the the the

the from even from of of geographic loan for and done heavy or the my at incrementally So Is country it's side in actual, is getting where already point. to the potential title of rate of the where expansion maybe just customers? across standpoint, what's kind things Realogy this the sort runway across I or breadth a and execution? built now guess there clear growth trying terms like, is, separate of has JV in more kind the more of the of Just that guaranteed we on just are footprint coverage question terms of lifting today, officers kind versus leveraging clear been

Ryan Schneider

me to be And the bit have about that we talk digital future, process. the economics of I just can this make we of were a try little our on and an the started think a for better strategic that creating can Yes. of capturing there's we process to transaction think in, by with closing go that some we integrated the brokerage. And by to lot products have and put mortgage and have title in And most the more people and customer beginning vision with I a Ryan, Well, to there in more a much the create a let position answer. process, these much it done just easier, the how XXXX, which the things. We room which is lot together. to start way, leading that. is you we've of integrate plus in pieces more invested closing to experience strategically see the of

more a We well title the got We expanded is but side, Idaho. architected still We expanding. business across room in bit expansion tactical we're the pretty more it ones practical there. other little a Utah. up coming depth. expanded of in On couple nation, more but is geographic coverage, more to to little is bit of also kind both has expansion our the get expand, Mortgage and a

have We officer to right? X right? at agents, loan We're XX a of XX vision yet, whatever, X not more every at like thing. that kind of We're vision

along so get our the can I And do depth. on, have geographic to of real brokerage what we with business. more help officers drive which agents want loan kind we bit of finishing go little to footprint, to power And more coverage in there's our think a

that. we there's so for room think And

where So architected ever building to actually a integrated But we've that better all of those we we'd got, are to create both economics in businesses of it's little mortgage, drive transactions, title a XXXX been technology bit than this do more think the we've demonstrated strategically in the done experience, go. integrate before. more these we've more we and I these got how places capture and like more

Ryan McKeveny

up it. Ryan. to a you. Yes, And very follow that's Thank helpful,

agent to back a So bit dynamics. to split it the tie I'm brokerage trying

performance side splits stronger move So, up my the of and up and especially and contribution industry can theoretically, leeway just bit get strategy split just you of to that or kind of and with assumption title a more wise, be the things, out big picture up. tending would on mortgage, flexibility I allows guess

altogether planned kind title you to strategy and tying game -- back segment fair to strategize you so obviously and the segments performance of if broken much. could think the kind kind kind directly the of strategy tying the it on about you see within brokerage of think talk pieces, we to up ties all around how transaction basis? guys bigger out. within mortgage just it companywide mentioned the the is put concept picture I that a kind and So the within of you But around you the curious of Thank of integrated

Ryan Schneider

think us pressure cost the appreciate, about the way cost on is another our obviously, Charlotte look agent just to on not operating offsetting increasing if that some more way industry at I will the a we our economics, and you answered offset our mortgage which XXXX where but Ryan, for the a beyond with go Realogy, you commissions this, which year-over-year in margin And results. strong then question, pressure. actually approach world but being the integrated has just pressure offset is upward on Yes, talk capture of to transaction not can pressure, we title and that's some

one works. is, we And stuff business. business that's to separately. is to brokerage, it talk franchisees and with It's so exist our And they when without mortgage but brokerage, integrated And we brokerages, report That's who an how separately, also. businesses title you are how the thing right? wouldn't trying don't running deal mortgage, those title in report this go are

so title about part power on is an maximize, integration of big economics, for these side, our the margin you hole believe and a the as business, on of it's of to think been which and this makes and you all company part pressure early to also some the integrated But for we've and And and of that a that with when that. think with commission our of we a mortgage dollars in our can some way that's and hundreds got customer of splits. deal of on. industry are future success more title mortgage creating brokerage And integral trying millions them economics owned we're brokerage on the the

Ryan McKeveny

very Thank Makes sense. much. you

Operator

you. Thank

with Our from comes Matthew question Bouley next Barclays.

Your question please.

Matthew Bouley

for Thank Good the questions. taking you morning.

a those agents you split then of your how And excuse confluence point splits of the moving the on the to me, even few XXX the about points three is, wouldn't Thank I My started and agents the basis there mix, split similar XXXX? drive last was why tables question actually have from earlier you than thinking schedule that a think risk said factors; normal? around factors volumes moving own just to up up the -- you. of mentioned lack recruit splits, increase commission is efforts the pressure or Following in strong XXXX just earlier. year, in timing up of in

Charlotte Simonelli

Sure.

So the the does will it not a the combined depend drivers it's be mix, and high on and the we’ll the same because half. volumes how with volume, really just were it's that lot just in back mix start to see the

And the drivers impact the on will so vary the be general. same. The based of market the just could yes, housing in amount

throughout As year, they like not progress far evenly the contracts. seasonalized table, as shot point there's just with pretty how off one they're up the

So but point do where they reset finished then yes, off, folks can based drop the where there be year. a they on

see And performance year how so when table that strong their you finish until they table, following the if on the was. then remain their year at they'll

mechanics those So, hopefully, help.

Ryan Schneider

look, right? we We one which to on at on choices frankly integrated when – Yes. the out well us And investments, worked pretty our that, in just we thing we our get to have own that. like our economics that. for choices look back to XXXX, on add Remember they and like

negative I a kind the you was, the it's of the laid And have largely where it because of this out very thing, January others, what see So on then like on metric, year pressure market real market we'll at XXXX more much pretty over drivers of housing that it's day, on slightly years, end metric how even whether control in think resets Charlotte And flattish much strong look not a as back actually the everybody said, frankly housing or the the whatever is goes. but we XXXX X, Charlotte lower. is it's a in do volume are. some little or or higher

be the going volume we're we also And year, rooting pretty making. a are So that we some interestingly obviously, choices for in correlates housing have but this. high to this volume with

Matthew Bouley

Right.

color. helpful that's Okay,

just just leverage trying second how Obviously, little in that? QX, on The one, to What G&A understand at XXXX. was Was looking drove expected. going the employee about Thank than you. model, on G&A think I'm else bit the we that higher incentives? to forward in a

Charlotte Simonelli

Yes.

You costs employer There QX. on hit timing there timing expenses definitely some and that head. some the non-employee related related were other the nail on were hit

that's about the to yes, right So way think it.

issue timing was repeated. So and not that a

Matthew Bouley

Okay. much. Thank you very

Operator

Thank you.

Tommy comes McJoynt KBW. next question Our with from

Your question please.

Tommy McJoynt

Thanks my going guys Hi. question. of franchise? about Good the it's a Could be do morning, outlook part think guys. Relocation or basis now Cartus GAAP profitable expect you that business for to taking EBITDA talk the either you on business can that for And forward?

Ryan Schneider

around like we Look, a the franchisees generation. it's especially primarily really because proposition business, lead liked of we value And it Cartus Relocation to we have. part always good our

the period was. economics, was in discontinued you I for because it ever think Now, Cartus Relocation we've given more detail we've ops than given you the on it

domestic not what So the right, even those out under because of the is pressure, experiencing moment, see At for seen some like XXXX, we've economics most actually COVID actually The by relo both housing one the visa can news what and other is done already the same recovery things. market true and But is were you there. is driven it and one international it's that's as to news. market really obvious the restrictions. two the

So place have kind the two been for or in that a been year global relocation for us. especially headwind in last player or big visa like of restrictions a industry, actually have were the place the in pretty

how we take we've to on pretty position And that. bluntly, we like done a pretty and costs quickly out So move strong in still have we this business.

relo home name or won't going to is it U.S. in recovery. home of Internet The building of home doesn't lot apartment economy. bluntly where geographies. And U.S., big from a be whether biggest from gradual the be connection as dynamic so be does will much how as from we're house as global work the in will But forward work in what or or because work substantially, varies it's it there the probably not right? of There's like frankly to a of does looking a side home, probably work viable more to ability I'm a affect a as it trend probably number of the from people make the them the

about, what very competitors position is So I us, in is see a technology, decent think cetera. on benefits happens company. compete I Realogy’s part but of you of we'll on an we against relative of that who et one scale, we most relo We that. our talked et none important, The the not data but would cetera, all because relo, economics, [ph] thing pure for companies, sized play have advantaged are just to pressure the big pretty mostly remo have tell of

you've So to like the at still shape we business some the even lot recovery. like excited we the cost the management on the the moment, we're side. giving it's it's got of on headwinds generation, different transparency lead it. But a got and today actions has team taken working But about a keep and

Tommy McJoynt

think strong dividend? Thanks. And Switching housing, and refinanced does how potentially got pretty reinitiating order capital there's That sense. down for debt the that and all you've priorities a now about makes do include outlook in over, leverage you so here? the that from

Charlotte Simonelli

Yes.

little So in tried to bit script. I that cover the a

the remain priorities capital same. Our

by on in our but So it top the focusing a paying made year, we're for investing and going debt. business excited very remains priority we still We down were to progress us. continue definitely last

Ryan Schneider

and we million a and uncertainty, lot. made my a fact did EBITDA in did we it section comment end just public lot of of that the Look, bit. little that both there's a we X.X on billion macro. reduction, But I like debt can with and health I Yes, XXX

go. at -- think we one least thing the I capital I is probably So, be that way to dividend. going The do ever can't that to we for one staying we to do now the to that back coming course is the our used side on is used imagine is think thing don't

to that. just let's for there you that So put out guys have

top the the into always is allocation absolutely list. will on investors to do But XXXX, I As be the we revisiting to as progress business get our of that. right think for our our farther for capital best We strategy. now, investment continue at we our continues, in want

we're capacity going on right aside. that. continue We course paydown do stay and to have to the be you tell that. assume we we're dividend course this something the versus It the path do but We're kind the debt how of long on until uncertainty on differently. now going to put determines that the should you for stay We're we different, to will thing do

Tommy McJoynt

sense. Make Thanks.

Operator

you. Thank

Our next Susquehanna. Jack from with Micenko question comes

open. is line Your

Jack Micenko

Hi. everybody. that balance active already. pretty side morning, a the sheet Good had you XXXX on up following question, Ryan, on

that You’ve where on got you're maturity. until more a bit that XXXX much to It going pretty sounds are comfortable. hold debt you like

about maybe agents? be then technology Where And investment of you fall to coming lenders the Is really piece? at, some talked business? So where going the it's of and are a in business with Is in of where mortgage going expect to where the you there at volumes lot -- generation it again the that and sort they're agents. invest improving where to should 'XX, probably in to ratio year? we cash the

Ryan Schneider

'XX, whether Well, the at business. you or have say first investment the even thing -- for I’d starved look never we 'XX, back ourselves in 'XX is,

were stop kind did our of of all launch and our across not stop, example. Corcoran of stuff, we we of midst the when QX to did jack, not reductions board in XX% and cut the investing in for COVID XX% all the starve try and technology, that. franchise at doing folks and that salary even for So hours We

the our in retention growth paid usage things of agent off some core of have dramatically XXXX, Corcoran investing part were of we keep we our notarization some product haven't, money always are it's of more title the mortgage the of -- in have there the the companies. that a And kind I because many differentiated investment on side, increase, the two I'm business, of we of times business substantial potential the XX% on So, we've technology economics done investment for in done I've technology the about, put to thing. more side, off pretty and investing franchise capturing kind paid think to huge said different amount that if growth places like think on industry, kind on or there more I in aren't going whether but I purchasing that's many The in opportunities in the and in remote area. there, We're be the doing sector. would into talked that. solutions launch, one that like, surprised part XXX% technology even continue

we're to do to continuing So open that.

The lot a different models and other seeds is, had for as we business watch the planted world change, approaches. we of

iBuying our do want if joint Home with America it. to do for So, Partners venture to we we of formalized example,

venture. agents kind an and where world a is very more. we that on HomeAdvisor’s their investing sheet, a the today fronting market’s hot customers nobody depending buying HomeAdvisor iBuying more because invest we and we're not might end them to thing. needed house it's with homes how toe repair. can the that toe The but evolves, so anybody is they actually place coordinate on, We've of off network But part our help the taking with love up using thing. then balance Now so providers we that the great in having done to offer partnership using the not go joint on selling, And it's prepare of may service to money for

We turnkey as love thing. willing much the kind as it. We've great it's to need that We're It's it. a of put into for we national homeowner. to. So with gone a

demonstrated not in franchising, in in we assume investments up recruiting or how in should QX Corcoran we bigger continue starved turbocharge our business XXXX need So, we're have invested agent And in that something watching market technology, the ourselves, then make in retention, results. to to to evolves, times in and be even the if Then our worst themes pivot. in a there. investment these as will the you always showed

Jack Micenko

-- Thanks. it. you year. And talked then, looking at XX savings this Charlotte, expense Got about another million

with if, air from for we I that Do we mortgage have quarter. We think kind to title. the flat If margins about hang look 'XX? a outperformance the and EBITDA been in leverage that's in the here, year? volumes of how do think we've big of all and second impressed did here? Do pocket we

curious year today. on what think see Just we margin the on side based sort about should the you how full of

Charlotte Simonelli

Yes.

you've I got the think drivers nailed.

temporary material they’re and are QX issue think saves the I QX. and cost is the

depending So vary you'll what quarter-by-quarter, on see margins we're the lapping.

volume leverage a that the last. You're right. benefit We get volume so from do longer

thing margin. revenue, is not other is, on interest, that minority The because we the JV the the that then so earnings did we and consolidate only helps

have impact. So will two quarters own temporary got humongous discreetly ignore because those drivers you their all you've right. depend the cost the But volume. can't on savings, will It

Jack Micenko

Thank Okay. you.

Operator

you. Thank

Our from with question Compass Matt next comes Gaudioso Point.

Your question please.

Matthew Gaudioso

morning. expenses. the of on those where the any just elsewhere Good Actually in there to maybe side Hi. callouts pressures savings XX on inflationary cost you And coming. I'm if kind wondering point on follow up are some million that are that? a operating of expense on kind offset expand could business – additional of on

Charlotte Simonelli

Yes.

the So I we out single inflation and that. experienced always is increases can like merit biggest and thing like things point

are business. will those So things always that as inflation fit our

that far amongst sits definitely move that can of As automating into of of have we There we all savings but and we're and found brokerage, and and is effort so benefiting, business to things them we the ways permanent and working just million just travel in things savings. temporary XXXX, XX where and sits be our consider of that now as across relocation. the we've section different ongoing an entertainment in in conferences the meetings ongoing

across the hit to going they're So P&L.

and of basically the et in And where year. see corporate, the pretty sort staff, but travel, they’re that's expect on find to you'll in salary you marketing, them drivers see should will cetera, You'll throughout the brokerage the relocation, them be seasonalized evenly them.

seasonalized models, they relatively your or the quarter evenly for the So throughout are year.

Matthew Gaudioso

the corporate lower else of And going that? segment, in fourth timing maybe out with really other for sort you the XX called the a another or earlier the that that 'XX? one just of that what helpful. anything was Great. there and operating run That's was And into EBITDA, quarter million just also then rate modeling question. would aspect In driving be

Charlotte Simonelli

before same as Yes, question it's for the sure.

but some employee it's So on expenses were there expenses, other timing timing some on too. also corporate related

for can run a good if do should rate think back look previous I you look sort so at an And you corporate average get like. what and quarters, of

Matthew Gaudioso

Great. Thank you for clarifying.

Operator

our you. session you participation. Thank gentlemen, conference Q&A and your Thank And ladies this today. and concludes for for

You now disconnect. may

Realogy (RLGY) 23 Feb 212020 Q4 Earnings call transcript