HOUS - Earnings call 4 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 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 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 Senior Vice President, Alicia Swift. Please go ahead, Alicia.

Alicia Swift

Thank you, Carmen. to Quarter welcome Call. Earnings and morning, Realogy's XXXX Fourth Conference Good

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

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

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

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

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

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

Ryan Schneider

morning, Good everyone. Alicia. Thank you,

been have years. transforming We past the few Realogy for

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

We are driving more organic growth.

We are with differentiating technology.

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

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

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

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

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

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

live program is Our in XX markets.

real This evolves. XX industry about to We markets are the XXXX. planning us be as in option value gives in

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

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

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

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

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

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

We our brokerage owned base. agent are growing

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

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

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

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

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

rates. to increase for their homeownership seeing Finally, very rates And we're housing. good low millennial-s are interest continue

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

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

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

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

Charlotte Simonelli

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

year. Operationally, we saw free our the as generated million City XX% also flow, market. closed up housing of dramatic XXXX and year-long market $XXX prior agents We franchisees New and million QX X.X in cash growth $XXX headwinds million volume contraction York transactions versus transaction the despite during the year-over-year a

X/X $XXX EBITDA, at quarters growth. the few share digits market growth consecutive most million over few of we our years, franchise QX. we QX very market in been share held We of a by and share QX growth XXXX We the steady year past growth. We up double a is and versus Unit year. QX QX years. Having $XXX compelling of X market market What QX prior have in and record delivered and full and been our growth up operating in under were pressure our in impactful remains had these unit and quarters investing for in which title, mortgage expanding X share that fact consecutive year brokerage delivered and was million pleased was of gains X/X XX.X%.

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

permanent brought to XXXX. COVID an of savings $XX ways million We in expect deliver working. of additional new

forward. these And drive will some changes savings going of

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

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

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

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

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

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

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

of X/X an than also amendment of extension our and our to of more revolver. We A XX% and close finalized slightly loan term

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

unchanged. are priorities allocation capital Our

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

Operator

first [Operator is Campbell with question Instructions] John Stephens. Our from

John Campbell

year. wrapping on a up Congrats great

Ryan Schneider

Thank John. you,

John Campbell

Yes.

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

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

Ryan Schneider

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

actions, agent up, right? growth is is Charlotte So as one Our about. our talked

I as and We've franchise success. retention up, both Our had talked about. is Charlotte expansion

brands And great. our some are of doing just

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

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

John Campbell

then sense. on And just Makes JV quick couple Yes. the impact, of mortgage questions a there.

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

Ryan Schneider

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

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

it. Our coverage with of our is brokerage business greater

loan Our been good. expansion officer has really

great. is quality service Our doing

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

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

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

Charlotte Simonelli

Yes. Sure.

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

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

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

Operator

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

Ryan McKeveny

the the year. on wanted up around Congrats mortgage I performance on follow performance. and through to the John's title question

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

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

Ryan Schneider

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

Utah. in expanded up. the business of On well we're couple ones kind the of is across in our title still practical had a architected Idaho. but tactical, coming We pretty We side, We other more expanded expanding. nation

And both more room is there. Mortgage it's expansion expansion bit So little depth. we also expand. more got a but to a the geographic coverage more has little bit

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

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

room And think for there's that. we so

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

Ryan McKeveny

Ryan. helpful, it. very And follow-up That's Yes. a to

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

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

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

Ryan Schneider

Yes.

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

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

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

Operator

Our from comes Matthew next with question Barclays. Bouley

Matthew Bouley

last around up commission actually the splits. Following point on

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

Charlotte Simonelli

Sure.

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

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

not up pretty they how the They're one year. As contracts far renew. point like shutoff throughout the progress just there's table, evenly seasonalized as those when

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

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

So hopefully, help. those mechanics

Ryan Schneider

Yes.

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

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

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

Matthew Bouley

Right.

No. helpful Okay. color. That's

The just model. on second one the

how Was little higher we think trying XXXX. forward Looking on at QX drove in just employee obviously, else was I'm to going G&A to than leverage the that? What a G&A expected. about And bit incentives? that in understand

Charlotte Simonelli

Yes.

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

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

timing a and issue repeated. not was that So

Operator

comes Tommy KBW. question McJoynt next with from Our

Thomas Mcjoynt-Griffith

that part about you business the or of franchise? profitable now business And think going a the that forward? basis Could do it's expect Cartus for relocation can EBITDA outlook GAAP talk to be either you on also

Ryan Schneider

And to Cartus franchisees Well, our economics relo really have. on especially ever given part lead think I given for detail of around a you more because that it it we always look, because we've relo was. it's proposition, we we the was it business, we've Cartus period ops the like in the like right? Now primarily, discontinued than value generation, you good

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

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

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

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

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

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

Thomas Mcjoynt-Griffith

all makes That Switching sense. over.

you about you've down a So from in And you housing, and how pretty the here? do debt for and leverage dividend? potentially there's think reinitiating now order outlook strong include that priorities the that does got refinanced capital

Charlotte Simonelli

Yes.

I that So priorities a the in capital remain script. cover to same. tried Yes, little the bit our

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

Ryan Schneider

we we lot. I my it think, go. The a one useful used capital don't uncertainty, do did to back right? lot we that just Look, of side a the staying that at I we is million But health both public now to end a coming If that can't $X.X I Yes. least, on is $XXX did made can our thing macro, there's -- think do to little the section and be for bit. is that of EBITDA like I So that to reduction. used billion debt and going on probably And comment we way with is ever fact we imagine the dividend. the one course thing of

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

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

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

Operator

Our with Susquehanna. comes Jack next from Micenko question

Jack Micenko

Ryan, question. a follow-up that on

already. pretty on side had You balance XXXX sheet the active a

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

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

Ryan Schneider

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

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

But agent a on So side, investing the amount franchise we of kind of on we paid off of growth the whether about, substantial the the pretty some the money side, core it's things technology retention mortgage into corporate stuff. talked have it's business. of different some in launch, put on in the

the would we're is keep technology I growth the are in capturing of to there in that for -- technology kind think many companies. I've the like dramatically we've of product there. huge we haven't even more And X solutions in area. like and part our were surprised because business and XX% thing. be times, done in off in So done potential investment of investing more paid part notarization usage more think title remote But I there investment continued XXX% of kind in economic going our XXXX, many some. doing said differentiated And or increase, that aren't opportunities One I'm always that purchasing I the if that. The places industry.

we're to that. open do So continue to

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

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

up a market go using today very evolves, investing nobody the toe because is is on that hot kind the toe with it's not how it's love of thing. and more. agents iBuying depending anybody we we having world they thing. can And needed an offer so might end Now where the But to place on our

homes buying part off-balance is The sheet.

partnership we fronting network not repair. prepare with in venture. invest done using the we're to and So HomeAdvisor's a then coordinate more that help the We've customers house actually taking of HomeAdvisor that their for service providers to but money them on may joint great selling,

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

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

Jack Micenko

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

that's and we've 'XX? from mean think If we big the pocket we year? kind title. of didn't EBITDA flat all margins hang how of here, Do have second that with mortgage know volumes here? in a in air do outperformance been leverage if, we I for we about I the think to the I look Do quarter. impressed

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

Charlotte Simonelli

Yes.

you've nailed. think the got I drivers

-- think material are issue cost QX it's temporary is and I they're saves the the QX. and

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

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

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

ignore because So you impact. cost X volumes. those the their savings will humongous But own got discretely you depend drivers It have temporary all on will quarters the can't right.

Operator

from comes with question next Matt Gaudioso Our Point. Compass

Matthew Gaudioso

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

Charlotte Simonelli

Yes.

inflation. And business. and experience like hit thing merit things always There always we So that the will can increases things are that. inflation of is our single point out biggest I like

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

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

see in You'll them corporate.

You'll on sort evenly throughout see And them should in brokerage, the in seasonalized expect will the they're relocation, That's where some to of et pretty them. travel, drivers marketing, stuff. the cetera. salary year. But you find basically be the

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

Matthew Gaudioso

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

Charlotte Simonelli

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

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

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

Operator

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

Anywhere Real Estate (HOUS) 23 Feb 212020 Q4 Earnings call transcript