HOUS - Earnings call 3 2020 | Anywhere Real Estate Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Realogy Holdings Corp.

Third 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 website tomorrow. A webcast replay will also be made available on the company's website. 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

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

which and are to subject the Forward-looking COVID statements to materially contingencies, economic, expressed implied differ and including many other are the from may of make expectations or management, and of in significant uncertainties we related beyond competitive control inherently ongoing statements forward-looking with the results those projections any crisis. Actual to respect statements.

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

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

Ryan Schneider

and quarter paydown. for transaction housing share drive combined strategic debt to thank for driving, growth, market, delivery, QX The you a joining prior Realogy. from and earnings the substantial together morning, tremendous technology today. huge came Good strong quarter gain have market progress material us and the with been volume we was

real businesses. Revenue It growth of volume XX% XX% This most like in XXXX, based $XXX strategic continuing our quarter EBITDA the brokerage month And growth the XX% by race July operating year-over-year. substantial we momentum Our operating million we quarter, year-over-year, was ago. improved on increased about and with October, volume we during good million growth above the with mortgage transaction from Realogy nearly a volume momentum. driven our X/X the versus look year increased and by growth of the and leading New and headwinds the delivered each actions. September transaction XX% Franchise are operations and XX%, plus was August integrated driven by closed equally plus driven continuing the data to from was quarter. $XXX continues City. in estate revenue the through was plus units year-over-year growth title to brokerage by York preliminary transaction delta and like price. our up capture powered was up of EBITDA excitingly, differences in our economics geographic delivered be cost was by was XX% to

to faced Our incredibly volume year. plus but just because stabilization share for us gain see in behavior what gain, building we we when progress for in is and results This exciting the been believe move are is headwinds testament NAR's acceleration combined and quarter have digital gain success past in powerful the quarter delivering, We the To strategic to positive technology months. from is QX strength to with this not a data. demonstrated XX% market a the housing happening market us very we consumer over compared market and delivering. changes, share share

initiatives Specifically, we are seeing our mature. growth

more retention past QX. both consistent brokerage and volume drove year agent agent growth Our improved over in the

and Corcoran, QX strategic Realty Our expanded with our virtualize stood and realty-driven transaction as and the estate very gained which in efforts our real in franchise our units past initiatives, virtual excited gain to price. And and really out the the agents believe growth world especially up like traction And We changed more and great substantial International our are really York, Adoption transaction we dramatically, especially brand in California, we product are Hawaii, digitize Arizona. X new by business performance its close is digital virtual and powerful. both is more these our transactions New recently to brands, business, digital months. of products which markets franchise technology share. of win Colorado in the Sotheby's helping growth and

living estate transaction While results. and talk our digitizing about up many companies are showing it's it, someday, real financial the we in

cash debt they net made others flow very October, reduced is balance turbulent net base have and agents operations, million remain accelerating all agents, we on from we it the to this already momentum. We that continuing realized paid revolver lost are with We it's believe a off great industry-leading us in X.Xx leverage combination We sheet. across Finally, believers QX. during agent strong our multiple of need And our progress of hire the with our the million by versus to year substantial whereas or and ago In generated $XXX leverage. brands. Shifting start our year. partner demonstrating agents, great we've ended technology on free with in great borrowings. value the not in $XXX quarter our and of the

of now going the trajectory is balance our into revolver as X. momentum And QX, our we deleveraging. like our So

growth unit open unit half of more of up through by sales. looking It's data closed of with versus is And that more Realogy year-over-year by more brokerage driven more with preliminary or half sales. volume and even most volume XX% through XX% approximately of October is both driven growth better. that most in even Realogy also transaction So October franchise or ahead, XXXX up approximately

with continued XXXX COVID that, including we're and strong be rates will enter housing consumer very the macro excited said we this significant momentum on positive But cost savings as competitive and data, and focus, are subject momentum, COVID strong with strategic preliminary a mortgage will long we our combined and volume October absence uncertainties, to discipline. Having and that macro position. and and share continue we based QX, on these our market low progress progress overall, we how for competitive So and trends I of cost track to believe will trends, we cost about there very expect temporary in also trends last. uncertainties, later, continued the headwinds consumer from the XXXX and continued discuss expect

turn allocation to Charlotte over priorities our continue We quarter in capital to call going invest detail. in to review the the financial and the Finally, remain that, plan to unchanged. delever. With to greater I'm third business performance

Charlotte Simonelli

demonstrated quarter third our We virtual margins everyone. relative top significant foundation execute and of to morning, strong business. in advantage power progress to continued Good debt a paydown on strength capabilities. gains quarter. NAR, position and market share and operating our brands exceptional our the improved and of bottom Ryan. We taking made you, the line of from of line deleveraging third drove delivered Realogy in Thank the growth,

quarter. Turning to far continuing highlights. the volume year-over-year record. $XXX the to QX from XX% EBITDA QX million was on Revenue $XXX and due franchise billion, biggest our predominantly to growth third outstanding businesses. Operating title quarter million operations year-over-year across growth increased by and $X.X in transaction our brokerage revenue was up higher

significantly on continuing expanded basis also points a basis. third ops up year-over-year margins We quarter, in XXX the

and and profitability. even of meaningfully management transaction title We to cost volume mortgage in ongoing share and all our cost economics growth real greater our mortgage businesses. brokerage robust and realized an earnings with JV Strong franchise, contributed actions and estate title, temporary

strong Our mortgage million up quarter, continued million last $XX year. EBITDA its business versus contributed operating in momentum $XX and the in

operating EBITDA, in million $XX contributed business year. last up title our Additionally, million versus $XX

few past we over you has and As this investment have off environment. know, in invested these the paid market years in clearly current our businesses

integrate to more of products to more the strategy our on both We also virtualize transaction economics. continue get and execute to these fully

reported Lastly, operations, of our is $X operating quarter. EBITDA generated in the relocation million business, which in discontinued

simplifying laser-focus in revenue cost We driving on the remain our further the quarter have across and kept business business. the the lowering significant on a growth focused despite and efficiencies base

Let to before we $XX deliver permanent to already accomplished in savings year-to-date. approximately we moving with September of approximately do delivered XXXX. In cost to recap million XXXX, million what on have me minute already a expect we $XX on take what expect savings to

QX. $XX we savings executed in Additionally, approximately million temporary in

pulled temporary permanent cost in cost to and expect affect have Given QX. transaction remainder only the reductions of we actions rebound the the big volume, back

to additional we million what cost to working efficiencies in expense We similar communicated. by delivered in previously $XX I and savings to permanent are deliver for $XX expect We million action to to XXXX million approximately now XXXX, currently administrative the XXXX. lease expect above $XX annual reduce

last in you the and volume agent have growth basis each We expect results. agents a we and higher side. We expense but expenses our have splits experienced operating the QX as few our the increased and quarter year-over-year This grew than believe year. past a been in reductions due quarter. environment drive of years points trade quarter over competitive Also, look some quarter, previous aggressive to and travel, largely conferences as meetings convert temporary reductions. Commission third and brokerage retention XXX you improved entertainment, significant more can the retention we portion since is if we remember, see recruiting on the X% other highly to this year-over-year, to permanent ongoing in we is to metrics in efficiencies our worthwhile trends, have

now volume from excited We off are to pay get the our efforts.

USAA hit point that loss of communicated about a saw year business, a we from we Lastly, affinity primarily basis ago. the XX

a splits with While in and we on like the P&L delivered metric. profit we the even issue, pressure critical remain overall growth this

Moving on capital to structure.

we are willing In to of business have management business announced we structure. our optimize refocus We and our to and are simplify mix effort capital an in our to property rental shown deployment. capital further the change October, working sale

explore improvements extract leverage. our on drive this operating business to incremental to and simplify in as continue We front remain to continued will we ways greater performance value proactive and

net the borrowings. continuing million We am in free of including in the balance year. cash, of and quarter since reduced I million quarter our $XXX equivalents, revolver million the $XXX We $XXX with sheet. by only flow cash in $XXX QX strength from cash million improving and debt Finally, by exited and last restricted have operations excited generated cash

leverage total repaid as fully of was we the X.Xx leverage X. XX, and Our ratio have net $XXX now was XX, balance X.XXx secured senior ratio the October at on September is million Also, which XXXX. the revolver, as of

last than refinancing maturities our ago. Wrapping Lastly, with several year and am they we in a as performance past quarters. sheet XXXX, very of much stronger resiliency quarter, were ratio over the leverage are reminder, and clearly have balance up, the until with Realogy I our a a and pleased no place

growth, free in investing and cash the our We business. continue deliver to profitability strategy execute our debt flow proven and reduction ability accelerating have on and to while

is optimistic Our for much financial future profile our I and increasingly remain stronger business. the of today,

back to it turn Ryan. will Now I

Ryan Schneider

a questions. Thanks, on I before we want Charlotte. take to touch your strategic few issues

me seen With increasing. But with we've for we're population pace demand, transactions start been for million mortgage housing of ways, and very per putting seeing increasingly the million market and several GDP the the months, the in units million-plus X even growth, housing XXXX, X.X X Let shifts about both the what X and resale some hovering year annualized sales. combination years. and social between formation stuck housing on supply of number U.S. household last in a housing since has with low unlock In unit rates market market.

consumers we early seeing the migrate X past suburban they've momentum markets. quarter months. urban when first In to it in consumer was gained last discussed from particular, are we these shifts, absolutely While

more We driven purchases. We journey are in including by in and saw seeing QX trends their markets weather better work and are clearly they we geographies, within our the find meet these seeing to are attractive October. home, that second needs consumers their and from definitely to continuing tax of consumers houses rotating results, home continuation accelerating suburban

continue most told is As sales, more XXXX approximately results most Realogy is for the even growth or by for of volume Realogy NAR unit half transaction currently unit Those you, growth up the of as are is growth also preliminary XX% we QX more half incredibly approximately forecasting with with closed driven open October better, by and both or versus momentum. More through of broadly, XXXX. our Realogy units more year-over-year data strong sales. driven up I in XX% through October and of price volume more

we QX than are trends mortgage given and numbers rates While has stand lately, the to mentioned, these a uncertainty especially transaction believe more we from substantially continuation the of above potential market quarter. long-term growing the the world our clearly share in third low we seeing, I market improvement XXXX, in consumer the given usual benefit

focus quarter. X and our results the strategically And building and work both from always examples. what bit some data old substantial there's that you strategic capitalize Realogy's economics about those power issues a the strengths us. And the noise what opening have in our me proven combined actually world is and a expand brands in to going future, going the delivering industry. I've model, great across players, to they're really we're believed do brokerage to at the delivery and agent-centric toward while especially get on are like relation other how and lot we on of this deliver I'd remarks scale Second, in let saw of new, give you technology, industry in what my of to potential, big to and scale, about moving Realogy, they

integrated capturing someday So the much economics. real estate of about is transaction talking world the

and scale at levels. it We at are unprecedented doing

$XX this benefiting initiatives technology seeing from driven mortgage title and EBITDA mortgage operating and of new was and the million given like You're title both strategic joint our closings. our successes quarter, mortgage. We're digitizing third by venture our in

We efforts continue and our to transaction to future. share capture of estate real even greater economics invest the in an expand

and future greater We continue months. adoption innovations. our learnings the in reinvent have than technologies and the become the experiences the work the substantially finally, benefited from the and we integrated comfortable virtual be saying. consumer Second, this consumer been transaction, the and acceleration as X continues brighter agent last for digital/virtual data taking digital COVID the our agent digital we've both with using transaction to agent and process. And of technology people by more to the throughout And driven has created from year of

ever, very see transaction financial focused and personal, models transaction agents of remain realize increasingly and during other base great customers show the a large versus the who now recovery, consumer. during the be than on central agents QX. We very market moving Many the to power both expect our partner given or in the models We and to for scale very clearly data Realogy the with that will excited infrequent big hire of size And agent the being are this this for has disruptive we across COVID advantage agents. are more and typical here brands. agent used continue in agents supporting very our centrality of and are the and to to great

I actually flowing the actually iBuying market fees believe if capital since stay, and homes. model. higher into here simplifies we to we remiss didn't that get we be way. their would experience, given prices the I but business they a believe Finally, is the pay have discuss consumers transaction iBuying, competition substantial and below for don't it's substantially But great for better

provides with achieve And agents for differentiated our offering agents consumers help while lets price sell to offer program program to sale their days, upside works all the agent win listings. our a RealSure XX a the RealSure cash house home guaranteed to their to Our consumer. offer our them to even buy going higher an with

on homes have portfolio. This in experience buying from not is risk to help formalized program in XX,XXX seen multiple goal with support but put capital and dozen over markets, our competition. We with venture Partners deep like their have homes selling focused buying them that selling and America, the geographies to joint what our pilot growing with a stand products is in from RealSure company joint Our and agents RealSure of the at together. we houses venture scale our Home we out with existing our at

America next light capabilities combined markets We buying Home network the for agent a with the capital and great of are leverages expertise substantial capital of year. excited of of a approach expand to Partners This and Realogy's power in markets distribution home number very to Realogy. new way

and the up So from year all operations we've this pulling of in us, our and With earned operating substantially together. EBITDA $XX while leverage growth demonstrated $XXX way putting a behind of continuing safely. In over million performance and X quarters health global improved both and care the line huge the agents in Realogy to improvement, and QX, and Realogy bottom demand of QX, our In in a XXXX. than midst confronted invest in all crisis ratio, customers taking EBITDA drop continuing accelerating aggressively QX technology huge cost delivery, by substantial transaction the earnings adoption deliver prior substantial a housing for moving greater gain to quarter while market quarter. And growth, on in Realogy; tremendous economics and paydown. was material million generating digital still quarter from share volume debt

the data, got growth like look our month October volume each continues preliminary momentum. to quarter, better during good our we volume on results based and QX our Our

far what hope as team our I I'm So your excited am our so achieved progress, as XXXX of take has I we'll that, in future. With our closing, questions. about results proud our and are in you and incredibly

Operator

Stephen question line with of [Operator Evercore Instructions] Your comes the from ISI. first Kim

Stephen Kim

take you fully to if if in volume to year-over-year and ask question wanted you'd participating surging we if volumes been willing obviously of deeply look Or was your it have happy up? in a the data, I would be the because sort flat, volume, that splits volume had see had I curious, have I any you that's down the seen of here rose would and about price the into here been Knowing very splits splits. a the trade-off you been flat? industry. your time. But

Charlotte Simonelli

Yes.

in that quarters. we what X So is us that previous we have told impacting still agent about you the mix

what driver sort past. on the are USAA affinity, saw our agent overall, other and is on main in what the And to still some increases mix stuff. splits similar the we mix, of of So average, in the trends the

agent delivering to higher-producing due So transactions. yes, with splits agents we seen of the commission have more mix still go up would those

Stephen Kim

all from affinity bps, I XX what, And of... that USAA? right, Was was the Yes. the you think said

Charlotte Simonelli

total. Yes. XX. XX in

Stephen Kim

X-X?

Charlotte Simonelli

Yes.

Stephen Kim

it. Got Okay.

your split where into to to influence we of that ahead then look growth likely see year. In in splits little a time in Sorry if how seeing year strong to about thought to you're at is for it could would a you volume anticipated current or like us bit the -- process you What's transaction about see this, carry year, that general, there? of year-over-year. think negotiated next negotiations to the And is I'm kind that. industry figure a next And likely going period there as in growth we probably into out explosive reasonable -- trying normal? is a next exceptionally and for higher levels to bit talk thresholds that

Ryan Schneider

Yes, that's question. a great

got agents So agreements And look, owned most business. volume kind a of way on XX,XXX-plus bit we've had some that There's But these don't XX,XXX negotiations base in a is before. of naturally. are you over off going pressure written way of roll to we just our brokerage most in the do be because just typically roll the upward the over things year they year.

in been of So with often of was other among I year. kind be that of that of top low the better our the greater about, position their And is, really because want of lot run them a of volume from agents. kind production concentration than Charlotte a we've things seen negative talking Though a table. side a the remember, to standpoint will at already don't a mix a lets had start little really, year, volume away people if better much maybe that you high it at bit too

there's like roll to higher many place cases. So a in not to

happening. trade-off. there place talking you're there you from bit just a a of it be bit of is phenomenon been as a again, take but the about, is where little XX,XXX a little shouldn't describing, we'll the like this may think But from upward we've pressure of that standpoint I kind market think negotiations So

In got poor other things, also, right? volumes these volume down, work to of a reset you've going does world a the too. Now way, it the -- little if there's bit in on go on way remember too, then

$XX first took trade when by we million. also here, take quarter So in the the we grew bottom the we'll totally our trade line and

helpful. quarter Second it, and a bit But a bit on is little hopefully that's of it's color anomaly. more

Stephen Kim

question absolutely. related I Yes, lagging the had brokerage to franchise. Last ASP

for presence in portion the of got narrow in that the longer. geographical suggest was sense. of kind the out curious City and little think maybe a where things aspect presence like of longer, for because lag which was gap franchise ongoing hunkered hit some in whether business, that, a people would in there's between where City despite even big as the York effect between that And and brokerage a called lot maybe of the down you suburb growth regions that But business. New the there lingering obviously ASP a York of then the you effect the You also brokerage makes saw you New the they the maybe may business maybe have I to a quarter

Ryan Schneider

or so you So for to stuff. franchise. same the transaction plus and a let is narrowed. gap that minus basically in The two; They're or me franchised. The owned plus it's and the point XX% or has or plus October minus take closed volume point same XX%, far, two; right the actually and opens, the seen a October both on around we've actually brokerage same XX% the in

-- But York the is whatever up. like rest actually at was headwind of was in half and size City October October, and gap, for is New has, gap whatever driving including So totally more again, price. that that driving closed size or half is least of that that that than

itself, look and we hypothesis New may But we of biggest weaker York of on one When probably of our effectively the see look by it, most. be price to than numbers same more that's October Your in but across one be still there. data and the October focus this data excited far. you businesses is so at the to the units the QX so just look not being reasons driver to driven were, how the both strong were the

Operator

of will the line Ryan Your Zelman from question next McKeveny be with Associates. &

Stephen Kim

of I Charlotte, on things. wanted mortgage and to quarter. on title Ryan Congratulations side and ask the the

obviously can posted in strength if within everybody. businesses. put some strategic the operational efforts called curious and you've out to mortgage I'm for of there. last talk the you is you or space Obviously, So quarter, booming also those

doing to industry trying guys what dynamic of mortgage just with behind just operations of things side you kind we're scenes of the been this the on So think the have or overall through strategic seeing. boom of that kind compared

Ryan Schneider

Yes.

there's me and and of let together. title kind things, hit X say mortgage I'll So

easier competitors with capturing gone that So the investing, the come months. for things mortgage seen easy is We've a with in product, "Hey, X stuff first doing. remote guaranteed they're to flash that says, the what make our the mortgage and kind that of and the consumer more, digital tools, Scores and acceleration. of rate in in self-assessment we're we up And X businesses transaction more does digital both actually with much that's been much and title why we've purchase are for of digital our virtual couple last about to lot close of our press have got partner, of team already Net months, and affinity, and releases much during and flows experience," the we up virtual. And notarization, better refis We've a that both it and in think last got more Promoter shows acceleration happened the and stuff. out

helped we businesses has to think transaction and So the in really virtualizing digitizing our these during that X months. move both us the

just strategic expansion. The other the thing continued is

get some right? agents. XX more direct-to-consumer officer loan building on of Instead more lost loan to loan increasing XXXX officer adding money to covering year. even we've in officers And of coverage, X doing is We So still, mortgage a X it want again, ago. kind the agents, we XX we first it set covering been years channels, up what our X new JV

officers. geographic expansion side, we've we're some our loan place the sure some we're doing but covered. And more of adding we're opened stuff on new got We've even there's then for title make So we title to title the just while, same. business got Utah, still where in Idaho. a trying still And every

gets and supposed not we've is as to X of investment out been won't. loud, that of another coming thing the months doing, I continued We I'm say really businesses business again, have the the in to build our end digital Ryan. And the I'm last other helped then so X has virtual state these in acceleration But that parts the expanding day, at strategic that think last pieces a to helped just the together, agents a technology how sure We've we experience and in our good customers we got things do the consumers? months. this, you linking got that and the transaction do and these to volume for this here we're our combination it. in market all the bunch We've our and X actually drove integrated of create more housing

financial that, So got advantage, a scale very do we keep size going love delivery, excited and and and about both to of we're think We the to those we're too. investing there. the it's big competitive and we

Ryan McKeveny

or question. helpful, quick then That one clarification And Ryan. is

you of yourselves sheet a for Partners into just joint type off-balance you talk on does it America. what going that Just venture with exactly Home remain entails? from venture are I kind about capital of looking clarification bit a is capital-light wondering, to you -- going I'm joint a mentioned formalizing dynamic? So of Can that. be this? Or guess

Ryan Schneider

markets of homes capital sheet. of very and stay put latter, to sheet. just our fund savvy They And JV a is side bit capital its on of purchase be balance into sale the things. its operation America, Home will The to in for as off-balance of Just capital going Home Partners the expenses. the very, Partners America and its the we're but JV actual and won't of that's

huge investing remain But of that in will the again, And to sheet, not it's my contributing number So capital of remain. the again, you should homes, run thesis view start. of joint amount not to it's but capital-light venture, business. buy a this us will example as to hence, thing, an a the capital we're capital capital-light for either just us off-balance

Operator

question Our comes next of Tommy from the line McJoynt KBW. with

Thomas Mcjoynt-Griffith

to the I just Can relocation for outlook than talk better had a actually ask the going be or what with relocations then a that? to bit business seems the seem about in the strategically hit about the holding wanted you kind want I do It with so. to you is expected. for business. like what to of be corporate next year taking just outlook And over

Ryan Schneider

Yes. than cost corporate lot before. man, team our how that which EBITDA, kind has to business and a the things done $X But on the is did profitable. like million hard and of year good Look, of it the about obviously stay less relocation side made

company been the the business. like So the a generation valuable, we markets had. had the the something. that's of been chunk COVID are and are kind the to a that the not the for But market had thing about of another that another are end now very that housing like including headwind the It's or And we're long of are, -- big that. But We restrictions excited relocation is corporate -- global a obviously, you're immigration has lead bounce when the part place day, in of really that. And onto you right agents look, back for we markets business. a mortgage At player, franchisees. time. on

a support there. business that the industry, We're So that our largest there industry out. out in of pure business into most the can a shakes of and There's that actually player that we have interested kind integrates much ecosystem. what broader I'm is players how lot

happens. I'm And of see kind so market that's not of has, the way the housing to if industry interested kind you shakeout get very what recovered an

still and be that in So and and in it business it. watching But thank things working shape technology for that of strategically asking trying is. terms of keep investing we'll question. different, that and we'll that, we're But on the recovery you see what like is to

Thomas Mcjoynt-Griffith

gain you so switching organic much it. that sense the market was over, the you'd purely or any call were did quarter. during share of Any some Got guys of in how quarter And out? there that acquisitions

Ryan Schneider

No acquisitions.

Now our acquisition franchisees that. are drove there is somebody. But -- occasionally buying look, no

think we gain whole bit again, As hope feel together you, to share we've market stuff list And to it share stabilize I the that share kind said, what of I And how of done a great repeat market about question to that excited Ryan Man, not we've just some McKeveny's drove some it. and strategically, to gave gain. it's we're gets the had that we and back of kind do but headwinds. little combination that technology here.

Thomas Mcjoynt-Griffith

partnerships. one. on USAA progressed last announced new then those past few an just affinity how Could affinity give And update the the have off, guys year? over rolled After you you

Ryan Schneider

both Yes. about. of mostly We're happy with the talked we've ones

Military. up. thing Our we Realogy Military related like the building years Rewards of that. USAA anybody program And was U.S. open is The growth to it XX the in to

so for returns, putting just that's against program plans. launch to Military a to replaced our of But we then we're the messed growth So and in we We it's and to with going impact, excited July. we and in But AARP awash marketing not We early it started term, COVID like drive June off think dollars to leads a they're something be build because nice a to low-quality QX the up of it world high-quality a did like overnight. our in our is many Realogy great partner leads. of franchisees and really kind long soft start. Rewards. And effectively the agents

them, So new. a they of lot of but we're building are go about both excited because to

Operator

Our next question comes of line Matthew Barclays. with Bouley from the

Matthew Bouley

gave importance of and remarks agent, death of greatly the perspective they structure the Ryan, commission topic you whether agent the rates I one away, but sellers there But the I opening of on exaggerated, brokerage to and is the around whether on of homebuyers zero think day. the what people the may more kind the of your not just of change guess. goes and in kind So at of end some the agent so

I the and virtual like steam, changes things coming why in gaining changes going extent your out view? that. there share that or would be taking structural today? You obviously, market my this, question on offerings, To what's are So any iBuyers is there mentioned ABCR would not mean to of

Ryan Schneider

share. I topic. Well, mean it's I are gaining the I -- way, a -- -- imply by to didn't great mean that strategic don't actually iBuyers I

math right? don't agents but mean in data program small have will some I QX, business that agents share of when bet take quarters, is a small I yet, do million -- suspect and they the have talked market. And of the in I'll even done out down very than transactions more is that have share you I data people think the on aspirations there I incredibly the have of X-plus of about we if when thousands written, couple all the kept the of going, last the did shut ever iBuying all and transactions. you hundreds example,

time that risk, right? a when said and but forever. yes, was flat ABCR, up very to was quarter, see the Internet X% been it's remember that it's on we'll And a the brokerage going mean risk from -- X, to what I Gates long commission enough sure, I'm to ABCR take happens Bill was on in a old to the So ago. dimension. Look,

risk, of even -- So have predicted. to have absolutely. models look agents that then as a also just you are if it people at moving the you actual data, that a trying seen the lot to big it's But And not see you disrupt always cited. that, falloff I

the the it a got We what's there happening there in it watching occasionally, doesn't him. But But that sometimes, provide So see topic, question there clear. agents the think the the keep won't and and mean And worry future, are -- on the is about. really famous out and question. and happening is to so another worried the is I data, and to Warren people But the deserve person, making commission world. your thing current look actually that quote all doesn't we'll you it's data Buffett got their it. in all data with I noise powering we what's through agents time. look real commission watch great value, the but thinks very earning actually anyway, they show at at for out out about agree He are to world the strategically

Matthew Bouley

it. Got

there. M&A, deleveraging this something a the in away then that might from else change of side, to I all it's which success side? a one just in I the growth on moved since ask show the or, clearly know investment around just general, thoughts lot up at I you second thoughts had kind Okay. where of had about does you've wanted the And appreciate intentionally

Charlotte Simonelli

certainly invest to we path. anything let else to feel we'll And we quarter continue know. focused the definitely We're But if you to for was business. No, excited we on changes, in enough and our made. need the we business paying listen, strong what investing It with have we we and on in down that remain debt a do. like and going do us. focused, do We're progress remain that capital really

don't feel we by limited So that.

Operator

Next John Stephens comes the from Inc. line question Campbell with

John Campbell

made I Congrats as Can obviously, how guys drive far up mortgage the results looking us really rate rates on refresh of outperformance. also a great maybe you others you just things you really, on one the goals. of point, how you maybe talked Analyst -- on at of title kind about But as quarter. to years living the and to some good some points along to some talk of and JV operations, Back and helping title and that's since that you obviously guys us that? already the talked pretty as guaranteed good side rate Can picked kind motion the couple about think mortgage there. you are at a attach well? you Day, are what dreaming attach ago economics guys that's traction are like in way. It what kind put much and sounds you've Ryan, then

Ryan Schneider

Yes.

rates. of said So capture like I even But bluntly you know time rates is give there. out we should on my don't don't know our topic. that was what capture predates Analyst that we and our Day Look, what kind

them. of we two, it's kind step partly change of a We a it's actually are on in or where the are the increase mortgage that And had kind where we've to creating because always trying newer, of the change side stuff. most success

So digital even more capture believe I integrated -- of that those to key far and is these the of it by increasing things and is kind rates. greater

So not given comes give in that. in for ways, what 'XX. it's a We're just back some the huge strategic I'm to you 'XX back sorry, to not out knowing numbers here. does everything And were And thing. going or

John Campbell

kind bit you about No, fine. Ryan, many threat talked little Is your Zillow -- how of of kind a harmless view it Realogy many, that's about asked kind broader But anyone business? but at Zillow the industry? I in talked thoughts a hinting remarks, play was about What's -- is, there. in-house that? that to kind Zillow question, of were agents. ago. sounds like I'm adding prepared don't you is that your just of viewing That And the announcement. the you you the if curious years then this to initial a within Any Do as it reaction guys cost-driven iBuying that

Ryan Schneider

you agents trying business in Well, actually value, of back agents a a the lot of, have little bit cetera. the thesis my the meant previous okay, I then et change of agents be whatever, question or to to I were need none deliver about with here or got, think a particular, or partner to are and long-term hire back comments either gets have including anyone which they role to real the just realized folks if Zillow. business to look, disrupt who the

really about said so I my -- that base but And our business. agent of future remarks, the and just we, in excited as and are

You've of human dollar is of infrequent, something lot a got having there's people high for businesses and world real Amazon you the through people different whatever. This transaction. high-dollar to in pay for, are very buying paying infrequent, a than very it. very where that remember, at value shepherding transactions is do or it And adding what kind are

our tech But one that size We're But invest closely. stay some there focused got, these all to got of has sure going in we have we the like showed We to held and focus. scale data, to industry. We've all watch competitors it. -- we're in to we the the the the else and to brands but -- none no kind integration business. consumer out our like to I of and themselves differentiate up watch ability and agents base, the in RealSure. got it. infrastructure we've great the do agent both make very mortgage products risks kind around on of us, the think got like for that's this We well title greater

now are the COVID, with things demonstrated gain market actually acceleration doing doing. about talking of and people some digital optimistic just to the of mortgage about acceleration in we like title ability things shows we kind the us up do more it quarter from our more think of So other line. bottom And the we have are in share the our And those. in

Operator

question the Jack Micenko final SIG. with line from Our comes of

Jack Micenko

Charlotte. couple A for

I'm up, temporary the some sort the the picked On off of if case. was increase guessing and of in coming that's side, the G&A to expense permanent, that sequential due

a that marketing $XX the And run are to year on on at to thanks the for million Or rate lease saying outperformance? goes because permanent. new something side, then million of the I the operating color, am million you over-interpreting. $XX we marketing? expense, closer the $XX of permanent expense next On Are

Charlotte Simonelli

Great. I'll take them in Yes. order.

expense that There temporary. it volume-related quarter, quarter-by-quarter. due is So of drop-off of in some some is part the the the to employee-related expense, varies

what's in a bit happening And well. so general the that's of as expenses

most As with rate, working far new but are optimize we I and as a spend. marketing always efficient to our run it's -- be we're wouldn't marketing, say

that So up more you quarters what we've plans firmed are coming probably next there's the in on the year after marketing share for with I'll side.

an the is imply next be to exact year, for administrative I mean thought change going that As far year, the to we really but better the than -- wouldn't lease no, number. fact as I didn't next number expense

So you shouldn't that be interpreting level. something on higher

Jack Micenko

thoughts what how issue? And sure. When lot maybe for supply a Okay. think you and environment limited discounted you business, a nationally sanguine keeps versus solve more right curious in." we're more from splits more in do to maybe splits like dynamic to a of think lot XX% through is going just going tougher agents are the utility is that share the think supply That's environment, traditional going the that everything supply got option, perspective, and issue today, market because I that's in coming view And we an seems it has better talking obviously "Look, and more to a you've the we're helpful. get value split to that just take Just do to bids we're we sort year-to-year. -- multiple to And go, the and then, the and just supply Ryan, on the got about focus XX% like, of where as else. agent of issue sort down whole or got in of the kind your aren't we're up, high-level a really better of

Ryan Schneider

X me do things. let Well,

going little think good as use the us just that's bottom that's drivers of of split gain I or even think a everybody. integrated kind -- think bottom have more So drove focused substantial what a and when the in we And of our the on line. line is a not because of even like and the company, for with line, bottom quarter think P&L, would kind a affect overall, of splits we I did share But on focuses improvement a going agents, just -- number but everybody in -- I I -- one the be I think, the probably bit first thing growth so comment. some again, quarter, with general up we but for to this increase stuff,

this, supply little about but the I'm On think let a something, say thing, and right just it's me I different. bit

is closed ours October inventory half units. But our half gone of supply different by ago X up. is number than were they're supply. substantial inventory sold year I confusing We're plus Days looks on market now, think And now a both amount. think XX% has people are than our in a and number, volume. and more NAR's I right? getting more things right down. is clearly opens they is worse plus are houses more and And units. More like XX%, of because even

it's is XX%. like houses are in us staying where For number on a how market NAR's like long XX% drop

more So looks there the but reality are done. is being even than transactions housing tighter inventory ever,

world. very growth, up unit volume not moving on the book to growth more inventory. And our in not is price of in again, and there just coming all supply the in and it's market. lot quickly It's So piling it's a

have asking to from be me X going plus, made for unstick which the housing X reason, million the get years, I like used to been made long is people for and we a for million market So us in X.X what's transactions X a time. points to million to which I

for like same social keep like years and unlocked build well, that side, I I Just is thing, built ago are homes bit, and But rates to asking, a think been the of these I low builder XX when it. number in it on last is sure. what people And we in moving it's driven bluntly going shifts the kind helps of the we numbers. Even And happened that's houses more just just looks X in is, crisis the much demand. because They're by are think supply which are months, that see terrible not you the quickly. happening, sitting unlocking the it health just inventory. really tight, both inventory if and

buyer, globe continuing, thing year frankly, sure for seller. the it and for there's for for predict And so to look unlocked to this going to unlocked when every data it's we're people has be sure. more there it going at is the supply But And that more was seems and that more supply a it a momentum coming the moving. seeing. we But terrible to a And has market. was I didn't housing. wasn't be silver what unlock the I lining

inventory that's supply really I It's number." And and And when -- I again -- we comes have and quickly out to just But very and and there's supply. people is and reality think never hits a market So moving so the lot low inventory the very I more is there. probably think at a household a in it supply confuse which situation. that's grown or "inventory us a because think kind where country cetera, the especially million should of population for even rate, given market having bit if running stabilized bluntly our growth, quarter. and we formation, our et really is this scale, GDP growth, of part be run housing X good share plus size

someone demand and of it's even housing was these But from crazy." to suburbs part me the reason now economics to the I'm great. future many not are the unlocked. how and hearing generate bigger transactions. And that's for here was in -- So it's what geographies a I And D.C., being I very -- in of talking were think somebody it's we number doing who side, that D.C. we're it's I dead "Hey, Portland, this the is optimistic. both supply price and market said, Maine, demand market. from so the supply just excited in has that the for and again, just and talking

that related, So it's but in that supply demand, a more about. we is for is growth for not QX supply, units and saw pretty both and Inventory I asking unlocked. of thing us the increase the not seeing is dynamic our and supply-demand you're think, in that October and in actually being we're is supply, it's positive

the So that's up Jack. probably you to going wrap there, too much. I'm But thank for question.

Jack Micenko

point great made. you delineation a good do use to tend much really a them that's interchangeably, We And that's and actually. too

Operator

you for today's webcast. thank in gentlemen, and Ladies participating

You disconnect time. may this at

Anywhere Real Estate (HOUS) 29 Oct 202020 Q3 Earnings call transcript