RLGY - Earnings call transcript Q4 2021 | Anywhere Real Estate Inc.

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Operator

Good afternoon, and welcome to the Realogy Holdings Corp. Full Year 2021 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. Alicia. ahead, go Please

Alicia Swift

Good conference welcome call. Michelle. year Realogy's XXXX earnings afternoon, you, to and full Thank

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

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

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

issued as annual quarterly financial information to our discuss press regarding in will a filings. measures included as earnings financial and to include is release. our the a shown Table those remarks is call, from net performance provide power February our For of results that non-GAAP and we Charlotte's been intercompany today our Note, release discussed will in at you of listen those of Such rebroadcast Ryan in Xb the that differ growth other which Charlotte Important estimated segments, today, forward-looking is are measures earnings uses Also, include EBITDA SEC market. could do discrete their as debt position. of in information maintain in our subsequent company. of operating certain actual assess on estimates and the specified initial who use metric we and not target not results be positioning brands rules, Today, important various calculated XX, the materially our focus contribution, cost in statements manner our cause SEC this remind however, presentation, will on references annual do press to also to the assumptions and not level. This and in and assumptions reportable include to Ryan the made will market of reference have this royalties. allocations and will earnings of release factors discussion per are view well our earnings leverage and which today's by this the ratio, Realogy these call. slides. herein three the updated financial revenue non-GAAP leverage to rates ratio. a This

our today's January of XXXX on Realogy In of useful alternative strategic statistics impact addition, based review or to to during business. market as stakeholders Group not reports million. the in EBITDA our approximately recent is view company annual which Last, any corporate, revision. may NAR's contributions most reference our $XXX call NAR's the operating may Cartus to subject We and NAR are XX, such with estimates XXXX, and believe that quarterly negative do filed our comparability sale our focus Relocation understand are home outlined our SEC. Services within Factors public be this of include of Leads forward-looking

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

Ryan Schneider

delivered. journey. Good incredibly what Realogy I'm proud transformation a on of afternoon, have is everyone. we

gained have share. We market

as into XXXX have next chapter balance our very massively I'm improved the profitability, chapter. have we and sheet. our going completes of XXXX our excited momentum driven Realogy's start and We we greater about first transformation,

as in $XXX beyond, transaction great and $X.X million we XXXX we revenue million and of $X We net strongest approximately of the to nearly now company results X.XX% billion, Realogy basis since billion market $X.X We operating XX% extended volume debt by agents grew of reduced XXX and above an XXXX results Our over extraordinary our EBITDA. history, share. $XXX have to XXXX. debt billion delivered debt of year financial coupon. in gain and points achieved its a no financial overall strategic the and company's

EBITDA by strategy, core. transformation driven I agile incredibly venture and powerful leverage including I'm RealSure and company's ratio will Home strategic to and talent progress Partners future debt to joint chapter. our annual operational Our underwriting our luxury the with advanced And in our the ratio, America, auction reduction best X.Xx net will venture agents data-led partnerships over proud culture our our and designed with Realogy's results with next and recent of and and the new a excellence great turn venture joint increasingly Charlotte, XXXX now with to unlock I both in our call of years, delivered our at Centerbridge we highlight back title new joint history. come finally, net growth, technology Sotheby's. exciting employees our both our

Charlotte Simonelli

Thank thrive this am XXXX you, afternoon, financially, Good XXXX. to financial year organizationally QX housing operating believe we better We and unseasonably which market. continued quarter momentum never full best our record, fourth strategically, QX high and Ryan. been on and have I share and technologically the grow and excited positioned Realogy's dynamic in demonstrate everyone. to results excluding

strategy is Our working.

growing effectively, in share significant are We competing XXXX.

or priorities allocation strategic despite and this It year, prior XXXX XX% by we profitability flow, and well In cash in was up Our many been billion, increase profile in and future despite prior operating EBITDA of was business. growth. and strategic in operating than strong the We year XXXX, across quarter revenue drive XXXX revenue value XXXX. versus unlock $XX investments an $XX million million fuel savings actions believe lower RealSure which targeting capital million mortgage and business. we $XXX million, to XXXX volume strong year prior the as cost versus Full are to continue up Full $XXX XXXX, prior up expense objectives volume benefiting billion profitability QX of Fourth marketing for on growth is achieved approximately in XXXX operational we versus XX% cost timing cost an incremental was strong beyond the our $XX to million million, temporary million impressive and growth to year versus in XXXX, X% lapping earnings, was $XX increases line up new that additional in $XXX lower million spend. defines was down year. led discipline prior cost QX transaction savings. and versus and $X $X million $XX-plus year, $XX enabled QX foundation due year XXXX. ventures. Realogy EBITDA execute growth we while million $X.X continue conference taking approximately savings record and helped billion, from In delivered in free We business. JV the across targeted clearly sets and business our throughout lower $XXX to XXXX, top or an savings. us financial invest making the we of versus have XXXX year

other in efficiency focused on we automation, program, efficiencies. integration agility especially and personnel-related continued are this systems and driving For

balance the move flow let's and Now to sheet. cash on

a to debt For despite largely leverage the senior of free cash net much XXXX. balance a ratio full and flat at cash million flow, secured becoming a Realogy year, stronger XXXX, $XXX of X.XXx XXXX negative We in taxpayer sheet, generated leverage with exited X.Xx.

I substantial which $XX approximately to our our Realogy ratio is up side profile. generated Our paid of million temporary marketing XX% year. million as growth $XXX other have extend us full RealSure XXXX financial $XXX strategic with impressive billion, business. EBITDA maturity of believe highest franchise QX growth. EBITDA quarter the EBITDA growth, investing for year-over-year, and now up RFG Also, strength initiatives. over taken up will in million our RBG. and million, operating Brokerage prior unit our the to agent lapping growth, full luxury, was RBG XXXX cost before full results year million grew retention future owned versus million, increase the Realogy volume fees Group and was royalties year, $XX and significantly transfer prior for billion brokerage $XXX consecutive reduce versus prior for more on our $XX led which Franchise and Operating versus our we of Net million relocation, was year intercompany leads royalty up $X.X X% past $X.X in $XXX in We was cost revenue positions and of prior has savings up by detail. year-over-year proactive Group years year. sequential $X.X agent despite record was includes revenue, sixth discuss business billion, per we Transaction year versus base agent leverage improved well capital generated $XXX an in few was steps $XXX results, our year-over-year. of of year. now operating

For the XXX points increase by splits predominantly due a full XXX driven volume commission retention. basis basis year, recruiting to points, growth, and strong increased

more versus EBITDA mortgage prior was was basis a compression a by growth Group mortgage sale in sale and a up primarily business, million on million, purchase our competitive, the operating driven market Title fees both business volumes. margin gain sale earnings points million driven to impacts year, prior volume Higher lower rates interest margins. refinance rise, as in million, underwriter unit due Property than of increase revenue versus agency gain XX of due to were left. We predominantly $XXX Title also have pipeline. begin $XXX mark-to-market on which on $XXX JV Realogy loan becomes the the decline which most the $XX by more decline Remember, our had to businesses. mix, decrease and Frameworks which of negatively impacted offset a by unit we in year, and

$XXX million from RTG last million in $XX million, $XX year. JV, mortgage EBITDA up was Excluding earnings operating versus the

close joint Centerbridge is with venture the underwriter expected quarter. first to in Our

business, unconsolidated revenue impact comparisons We This in other P&L want the businesses, along of our about to as prospects this progress excited to reported equity balance JV. a from with be earnings the I our will on reminder, retained our and metrics. are close, and ownership post sheet. XX% growth will year-over-year recognize mortgage

notes, capital fixed from completed approximately weighted The in billion offering average coupon notes X.XX% at in January cost $X debt million generating approximately our annualized while $XX our upgrades, an now cost further redeeming improve we benefited is interest XXXX, rating interest a upsized to coupon have X.X%. higher savings. expense of We multiple agency structure and

are we Going Xx million leverage their before on forward, $XXX ratio the targeting maturity. of or now and repaying basis, on to of XXXX through-cycle notes remain committed we a a

moving outlook with I financial details our chapter, Realogy part our next will As you. on of to additional share now

our like outstanding by are in said, We XXXX full expect normal excited to in incredibly XXXX. our momentum That financials performance return and a lot seasonality Realogy’s look to expect continued year we XXXX. a

operating $XXX lap QX smallest the JV substantial QX Specifically, high in the below as we high and is, use EBITDA favorability. we be earnings, quarters well our also million normally will operating which remember, EBITDA benefited of be delivered will a it cash QX four also from XXXX. of will be and mortgage will unseasonably unusually mark-to-market

Let in me EBITDA operating Remember, as year our guidance. at in look made to XXXX full mind. keep turn we important in there adjustments we XXXX. are now to two But XXXX, $XXX million

upside outstanding XXXX be we operating guidance those $XX we approximately amount second, our investments Centerbridge. Wrapping financial and and our the our and basis in what growth above also volume and the being due business there housing solid full XXXX And model. quarter year in than foundation, will our market RealSure other to of us execution is agent between XXX That results from more position, underwriter NAR’s fourth with mid-single is itself. $XXX to strength business up, in latest to expect performance. increase million million to year EBITDA After our costs. million has increased off drop $XXX and on inherent will adjustments, forecast, a sale from absorbing our commission off the swing strong digit growing based believe leadership First, strategic reflects similar today, a initiatives. drop biggest full we close the And factor pretty volume know XXXX while points given

bolster and turn additional now cost to results will we and will drive to I additional mitigation Ryan. committed longer-term. record and opportunities back to as call remain track continue confidence for we unlocking the growth, Our value our

Ryan Schneider

mean one estate start growth XXXX we by be And Thank you, Charlotte. increasingly the as chapter, and consumers. simplify represents remember, next headlined we we will growth. Realogy’s profitable transaction integrate we and growth, for deliver of when the believe say greater real

capital given the allocation ratio our changing priorities to leverage has already We focus are Charlotte growth. more target. on new

highest growth has profitable investing helped more capital will the priority to organic us our share. for allocation in This growth. grow be investing forward, includes Going that

a Realogy our adjacent New accelerate strategic business, see opportunities to opportunities for see story to you’ll M&A to see in also transformation. the We M&A from in focus is growth. greater core that on M&A our drive and for selective technology in and and businesses further investments we

excess cash we think to stock to free $XXX are have good has we the Board if capital investments, beyond a we that Finally, what return shareholders. million flow To end, authorized repurchase program. intend

and on luxury, join week title next will help you will efforts outlook Chief see spoken customer Melissa our of where technology focus May for to we have forward as highlight to with we I technology. the lead like look will are our who Officer, franchise our Day. lens strategic in consistently first at us Realogy’s the in future. XX strategic and increased Charlotte mortgage our and experience, expansion strategic and some financial and a our simplify and integrating we want to our At objectives. a growth about chapter you progress multi-year great next time, You to that I transformation a you ties talent, on transaction our growth. will we as also McSherry, updating new Operating And in preview, and the going Investor event, actually give of those on I growth share current the that our brand

with start, sales past Sotheby’s a executed brands across International businesses. million high-end franchise transactions And million operating CAGR, XXXX. Realty ended these $XXX are earnings $X brand the if to over luxury and they brand together and XXXX above about four look very both owned powerful Corcoran our growth price over an in So you XX% years, our engine about lifestyle brands and approximately have average XX% These EBITDA. and with in estimated XXX,XXX revenue

at CAGR competitive and XXXX absorbing XX% in the operating and Next, national especially revenue brokerage brokerage, experience. premium four market Better Gardens commissions the Real joint years, mortgage and Coldwell higher Century progress the of price over market, in owned and $XXX,XXX title plays and and synergy our as XXXX. customer real point owned in Banker with national million transaction Coldwell average the over about synergistic shows in in million to our about our XX% digitize those last generated Banker the earnings transactions brokerage point Banker, Homes incredibly mortgage, nearly And Coldwell estate part $XXX about four simplify Banker has XXX,XXX And this combination and with the with the deep estimated business price title in we ERA XX, Estate, make $XXX,XXX pressures XXXX. third, Realogy’s while EBITDA, a transactions owned a integrating Coldwell even venture, X average years. of franchise agent brands,

a EBITDA better revenue. generation, by franchise innovation And and very streams. we franchise high the finally, really the we home agents these powerful as royalty recurring over for these our technology. together, brands steady years, operating of million and contracts a are are with have in margin selling consistent with all four flow are our to delivered pretty We like estimated long-term experience technology look, past delivering cash and and franchisees, very powered provide approximately strong brands with buying Now customers. brands $XXX Realogy’s And

upcoming our our and Day technology-led And future, data our innovative forward great open virtual Our industry brand products all more innovation sharing we’re products, of growth critical and looking Investor insights level success. and about growth. to is are more approach to brand architecture our examples about differentiated our marketing more technology closing about

to our pulling as move our growth ready accelerate increasingly technology and way look chapter its a Realogy to growth I Having fast-moving above and we up, So to look innovation. balance profitability, market our demonstrated next are powerful Realogy’s our and transformed leadership culture. we sheet,

next. We’re Charlotte and that, I your about move to Realogy we questions. With what’s will the excited and continue and industry as very XXXX beyond to take

Operator

Instructions] [Operator first question McJoynt KBW. Tommy with comes from Our

open. is line Your

Tommy McJoynt

guys, good and questions for taking my thanks afternoon, Hey here.

at the been the So noticeable high authorization the there’s a with just year the clearly introduction of full starting buyback. off, guidance and a level, change just pretty of

start by want is just I next? So investor-friendly introduce I’d to off into consider why kind asking the to now of right time those, the what somewhat items

Ryan Schneider

they’re think do. Well, to right the look, we thing

and in in – this to to we we when But second had came and we three times a Tommy, frankly, I I’ve us, doing a of it front growth, challenge Realogy back this rough back into bit, balance there target challenge had leverage living step including four. really both for we together is pretty think sheet. that great, that been you this X was, been into Charlotte challenges A yet. we get for right? We target, have three love, about doing share. were If even company weren’t was market One a years. leverage

And real third, in integrating our we’ve technology market payoff, better a the made we And kind opportunity. simplifying profitability the above consumer. case, a progress sheet balance progress of growth and of our think of last in shows board. balance so And market the into a sheet technology. three was In four there then and above with about think and the transform for our over terms lot that all or right, the the transaction years, And XXXX it’s those. of opportunity lead we was in to place industry the in there kind and

better thing. where to it integrating simplifying digitizing extreme not the isn’t are the the brokerage and that the like It’s what and because next chapter, it’s our got Day. about others the how share and doing market. fight we let’s and guidance Realogy we’re farther we the for competition But we’re or focused tied the game. at shareholders its to buying say, that more good and freedom way transaction, our capital even in looks but to these delivered having – don’t we of I’m brokerages. three the some some the manifestation deliver lot buyback growth So get planning And go to of excited the more the as a excited back stock." us management competition about hand here’s do we’re things. in more the having the at gives on down we investment with kind like transaction it’s pushing that of like and to this can what with and so for kind really team, debt to you, at now M&A It the for can next now that. just chapter, one things a other trying debt, over. part in we’re important in look chapter the actually even is not even achieved move Investor to that our those back playing based is The on I a the is Board it’s the "Look, really of RealSure on ability back telling this don’t kind an have of of our to to some to of our of year go company to strategic spot. described, of toward behind just And But terms and gives opportunities, a our us, We’ve and paying to have for changes about Zillow We mortgage much invest a can right? so terms title and if of time That’s journey is

we So of made but out in the us, fully two because we’ve things next totally they’re demonstrated you we that that just do XXXX. think a part believe progress the we thing are and broader to picked for chapter that right of

Tommy McJoynt

on That’s great. of following-up thoughts. buyback just the I authorization. appreciate And kind those

of the your So debt. great you buyback? kind appetite Do with you and you’ve talk cash given just look of a And at done the kind value little the guys balance about from there intrinsic of now? Could the do cleaning you getting that have any Or kind cadence stock? there? aggressive just stock through the are guys of of you up decent job a a talk restrictions

Charlotte Simonelli

the priority, in said, the as invest Well, we’ve to is Yes. business.

be first said, So things. as XXXX for a success. that we Realogy more bit near-term committed maturity is also And our notes. about as well. I long-term do we We’ve up to satisfying how lens definitely And up to the ramping remain our at been we’ve set communicative little tried

intrinsic said So things exist, yes, of far investing in a you’re buybacks, think of definitely as go, those it comparing we’re and they’re do. again, we’ll of But as share invest the share in care notes the ourselves. like our any first have we’ve handcuffs at right? of to So as take business, as lens all XXXX would handcuffs far as the we sort evaluating looking own we value like because, opportunities buyback against those

Tommy McJoynt

Okay. makes it. guys. sense, Appreciate That

Ryan Schneider

Thank Tommy. you,

Operator

comes question with Bouley Matthew next Our Barclays. from

open. Your is line

Ashley Kim

Hey, for today. this Matt is Kim Ashley on

the of of assuming the I going supply considering are for outlook? price guess volumes I the down, mid-single by XXXX. of the to resale So digit first flat mostly assumptions in just that kind lack of units have transaction into kind driven that growth what and is or Is question just

Ryan Schneider

last increase down the We probably comes unit little to Yes, think we’re about. a talked we’re the to but as NAR includes share. volume to And million. X and you the of from world’s kind like industry, gain both the or between an include moved X.X going be about X remember, we it bit But continue Charlotte of the it’s our homes kind also believe price above transaction it as market for Obviously, side. of me, number to for is Ashley. does from to year going increase that decade, mix numbers Look, are the – It in the that of we number. million the question, two, a price sold. you to come us. last price Thank of talked the is going was excited more giving side great or really more the think all million that excuse definitely

a really or engine units you So a see and the we just financial got a off back we’re go that still market strong bit, excited up even little little to We’ll both given here, of the goes is the Charlotte if from down from number. we’re where feel guidance good – can But bit the years, excited that will gave being it. us. it where or strong the think, placing that, very like up market looking we’re volume couple about And like or share how I in for gains. last

Ashley Kim

are that versus buyer for And the then high-end the of interest reaction in the bifurcation seeing rates market? rest just between Thanks color. to you any the

Ryan Schneider

that know But the numbers just market. it I but in then much rate purchases mass affecting luxury, lack the Not the to actually is biggest reality to in market. market you acute issue thing. supply much be homebuyer especially who is, at question the we I The than is luxury handy, in use the no. of the remember yet, time your in actually mortgage got And you’ve roughly. at blunt, a first haven’t look, – the all we lower mentioned of reaction have mortgage in seen is percent that’s interest people don’t rates the yet, is that to the –

who again, still are yet. number down listings getting seen that things mortgage using period. we all-time have the of number having where are are of we’re price are it that the The still slow offers at And mortgages folks kind houses are so haven’t leader The immediately luxury even up. lows are just place a that houses And market on of again, does types less market. upon

something it it’s yet watching bifurcated we anything hasn’t closely, yet, seen but either. we’re So not have and

Ashley Kim

Thanks luck. and there. it leave I’ll Good

Ryan Schneider

you. Thank

Operator

comes question Anthony with next JPMorgan. Paolone from Our

Your open. is line

Anthony Paolone

Yes, thank you.

First question Ryan. for is

you should over a just time? as are over higher? just that margin. go an thinking did out XX% EBITDA business Was strong that Just You should think benefit the think Do how off finished you Where about XXXX year? with margin? you that a from do little you – look be

Ryan Schneider

digitize I strategy. to of the time, I we’ve Look, this so our Again, those go there’s We leading We to we integrated. to helping company and it. be did We’ve more or we’re million brokerage X.X in got leading simplify. better the to transaction, over make country. back market, integrate portion right? think the two got customers it million X.X to want But to got the transactions Tony, got

We’re a making progress of lot there.

let’s for talk cost margin, we’ve right? though that what down pressure gone just have that but have lot of only a split brokerage offset margins reduction, So commission you with even this with means Our that pushing down the going actually integration talking margin the up about side. and have But the I’m our title simplification. brokerage mortgage margins in the greater industry on of and the because and more

to industry, that, have of cost can to, is integrating right? rate, reference success we of pushing margins, up the XX Without think, mortgage So and in Tony, the side right, agent simplification keep race it believe, as an been which times, years, our are the has the a going things the we I strategic simplifying stay and go more having some margin digitize like I’ve tried commission the been the I down. for pressure happening and side title and few some and the the it, that for customer, on margin I think takeout has the ways, or because is transaction more

the for strategic going me, just really because it this for really lead determine think the progress of that but back on wasn’t that world to Now the critical transactions to the succeed hot can it comes where worked we And we’ve for we It’s market, the real those us, future. with we’ve had got well brokerage because there. are estate pretty was which old game. that we’ve it and out clearly – the of that objective, will isn’t is made it two forces

Charlotte Simonelli

And Tony, years, been, margins just or around at our keep They’ve in mind, been give XX%. have for or the take. last five

track that’s mean, five-year like I So record. a

we’ve So been I delivering think that.

Anthony Paolone

Okay. I appreciate that.

I think mentioned do though, level. expect side, Or of envision was million is pace the I you think, a year, to XXXX on million that you then eases the for the there Charlotte, any then be piece, maybe visibility up? And that last mix you and kind $XXX $XXX split additional split you while? it mentioned outside So in of

Charlotte Simonelli

Yes.

the above $XXX record, million. I said for Just

the still at So comes on to down And as agents they as at are produce. – And this like it calling high level, level. basically split earn remains we’re the you for their close. volume again, the based remain the to this long volume volume

a piece that. other level, does the rational of competition, in So continue. driven the a competition And by piece more there’s obviously, much while

the extent think range. see range? it’s continue Will that to it continues, competition to to so to we going that. I the do And expect Yes,

we’re the geographic I we into you give year, of is very this going and development retention-related to what volatile sort direction the other new which et some obviously based non-recruiting see well split on some trying think of on pieces and as as business, cetera.

there there’s may So be increases. until going competition be be to XXX not They points, dies down, increase. the be continue will to it’s variable. always basis but to But likely

Ryan Schneider

on longer-term over going in join a And one to you thing, us Tony, I period. thoughts time chance give outlook Day do mentioned months, much Investor financial visibility if you that couple question on of at a will we more a are longer to our get that a our

today, we’re at outlook, but on front this of to the taking as part think on. prepared in number one-year really we’ll of the of kind longer-term view head one be a put as how you I

Charlotte Simonelli

we’ve that, been And the always there’s to efficiencies delivering. balance that cost

and We’ve I past over because a like have our So have XX%, margins been XX%. savings program. five that, been we in consistent years, said, it’s around the

both to splits the look together. with it’s So the I at important savings think

Anthony Paolone

Okay. look on the could. ability normal give year return one, us to understand. last as to of few Any kind what a color what seasonality of here And like? if the some then and might seeing I I get first months to a sense to you’re

Ryan Schneider

I look, couple Well, a of things. mean,

changed there’s hasn’t of cuts in housing. far mortgage speed seeing our So we’re some the I about, buyer Ashley’s with kind out so of price year the bluntly rate question, – talked so Like, there. kind volume But or and line guidance. vis-à-vis absolutely supply issues really this far

as you’ve of the so in the through when of about There’s kind of it’s in exclusively and messed XXXX full the few is, of point some that other kind XXXX the of it seeing. just in and seasonality up probably executing just of XXXX for in looking, right? can seasonality like when of will because I our meant got I like year our that’s QX you rest mean QX what biggest of QX the six XXXX bottom true thing expect the line we’re will or just guidance, lot of again, think more a really actually months COVID more So feeling then a first the But our look the previous it time it of to much Like, kind January that wasn’t usually the I to nothing of year, smallest year, what – than through weeks and month normal happened be normal years. is, that first and pandemic.

So as much we as that’s have. color probably

Anthony Paolone

the Appreciate help. Okay. Thanks.

Ryan Schneider

Tony. Thanks,

Operator

with & question Associates. comes Dennis next from Our Zelman McGill

open. is line Your

Dennis McGill

two you spiking do at in today macro? how the You’ve measures guess, the for pretty this embedded balancing of low but key think pretty again, about Group, I Hi, the look mentioned there. back question. up positive, unit years. taking the are Ryan. risks a challenge got to the RFG a sort year. an sounds I affordability XX% you home guidance lot Mortgage And optimistic, of it like going in out and single-digit rates the decline you the had in prices, least clearly understand at you’re that’s that Thanks macro, maybe of

the how the of were strategy, about the you what things think in you and would change if shift, to risk if business do So anything?

Ryan Schneider

is, kind on Well, is. look, growing our luxury you given think I is we yes, have I where think want something terms we’re and – world of today, in et Look, the trying inventory. reality transaction, the be we’ve cetera, putting the continued business, of low demand, to simplify got cycle strategy strong through to the

Affordability but What to primarily look still macro matters, on matters up remote at is closely. step work, if X going a watch that’s we decade. we previous high continue demand it the that thing first-time And in the the million and plus think the trends. homebuyer. when we’re watch units, in I demographics remote is the pretty you the inventory again, really big the in work

asset market the home, is. of owned That’s lead so that do in If closely. ways. your we some that pretty run-up intersection is all home already a part of lock you the we another the the business, But terms all from to buy and you reality mortgage actually buyers inventory first-time the and where benefited you’re in the stuff pressure is of going value if And home. then the

We down of if a bit – on have I and focused the through can be macro basis seen we’ve But kind strategically, a it’s the yet. even think our through-cycle we on, more shown reduction of cycles worse. we’re kind really what but nimble cost got changing view little do on we

Dennis McGill

the bit, helpful. you’re on what That’s then from any the a view those detail And even relocations ago, where discussion? geographic versus maybe you learnings migration year pre-COVID? today relocations, seeing on And just Okay. then business, give gears little can changing with stand relocation from a generally us any the on

Ryan Schneider

Yes.

It to has got under And big Biden visa look, the – release a but hit tough a the of two been got last administration. some it’s right? it the slow – it’s It pretty stuff. tough been immigration also hit, it’s got hits, administration So restriction that COVID even business. the

know, down, time the pre-COVID. XX% was XX% was it It’s down come it’s pandemic. it like it’s kind of – through I through don’t far, than XX%, So probably from what pretty back, but still that, over better

bringing mobility, to a down their But some XX%. are think XX% you down bit new as was people some now I more COVID. It’s moving about of there. it back some seeing Asia parts that’s There’s differences there’s little up And has We intra-U.S. versus geographic companies been think mobility some of I where gone during there. just and think are it XX%. so to XX% actually – could of hires

some, definitely was it’s So but it’s come pre-COVID. where to not back it back

Dennis McGill

Asia And XX% that that in XX% you U.S. number? Is to Is that that global number? a was mentioned number? a number,

Ryan Schneider

number. global The our XX% XX% is to

bit of I at sure. kind differently, no pre-COVID. much, versus the adds That region up is I my the little have to reach but numbers I know XX% geographic to The – of up kind don’t but it think overall, for down fingertips, a XX%.

Dennis McGill

Okay, got it. luck Thank Good guys. you.

Ryan Schneider

Thank you.

Operator

Campbell comes question with Stephens John next Inc. from Our

is line Your open.

A.J. Hayes

stepping results. It’s question franchise quarter. paired my for in This the A.J. on Hayes John. Thanks for quick congrats segment on question is A Cartus. the in and taking

how So quarters. it’s to see in it’s fared hard recent

Just to looked on check pandemic. in stages of the recovery wanted early how has that since the

over kind are thinking how of you’re levels or how off year so? peak you wondering about Just the far and Cartus next from prior

Ryan Schneider

in was as It’s the then especially lot core of and answer with somewhat It it’s in the down impact back. last the XXXX, come a Yes. and XXXX the same kind question. pandemic, kind XXXX of of

And so – all not but way. it’s the back

not challenge big to the the back the of that size-wise, But will XXXX. business be that But this of number. business was any of it year, business. our franchise positive won’t Now swamped profitability but on won’t rest it it contributor error a move was in be the needle. the franchise by was kind rounding a It a sort

think, it’s this much the as in really financials. the a company. bunch a power error as franchise other behind just So But in to in it’s We gained the They part of of them territory least struggling. them market business. generation at that again, what small. economics We COVID. We’ve the but even it other rounding last little of a relocation good back give positive business, to got But kind of we’d before-COVID the year not Realogy it’s clients good financially of market thing. new help before was actually is rest a may the parts numbers like lot of the probably improve And share it’s are it’s to were companies, and not lead like the pretty a improves of the have I really compared a out. the it getting to into be, that the

A.J. Hayes

Can believe And you. guys quarter, you the mortgage you up more. were you said entitled any efforts? officer Charlotte, geographic I doubling expansion had JV. on provide update Got and one last recruiting just loan recruiting efforts for that

Charlotte Simonelli

Yes.

on continue volumes same. on we may So that. still we’re a not that But the be slowdown growing be definitely Obviously, to at focused pace in that focused business. yes, refinance the with

because mark-to-market be easier a got too, look the like comparable the after will I think that, with mark-to-market really QX you it to one But think to was cloudy I lap I I lot just of want last this on to outside adjustments. at in we’ve remind all quarter business basis of a think adjustments.

after able the can So a I’m QX, kind of get be better past underlying that you to business. performance excited to get of view into so that

A.J. Hayes

much. Got you. Thank you so

Ryan Schneider

A.J. you, Thank

Operator

Our next Ages Berenberg. with Justin question comes from

Your is line open.

Justin Ages

Hi. Thanks for taking question. the

Ryan Schneider

Sure.

Justin Ages

to branching new strategic that of work? get Just a you me or on give it insurance Is part could the you’ve you like hoping Realogy Just augmenting Or done? is already things, trying the it M&A kind flavor what as repair into transformation. a of of indicated that. sense

Ryan Schneider

Yes.

technology, back. our data with gain to our ability and products, above growth you with an insights our growth So to I off, drive take We’ve demonstrated actually and with want share. share first marketing market

we’ve can to we that than more business in So able with the got in we do do multiple we’ve past. businesses the shown were

we So like that.

you want to should think are we about of the right? to And Reality is, I it. likely core back think I selective that, go business. York to M&A two talk in have very to is to our do about The in New things quarter ways, be fourth things example our and in going strategic. City actually Warburg an One selectively acquisition

it’s But it. incredibly one, take have you the that strategic. We like to of if economics

Banker brand City a York Coldwell York wasn’t in So but City, and it’s Coldwell International it foothold. the a luxury alliance geography luxury, New that things it’s our Banker New strengthen it a like enter like does giving

of deal. lot and economics do it like obviously reasons business. strategic a We the like So core we the to in our

the we’re to company. The invested growth experience. closing provide let you to what other fourth was core anchor adjacency version That’s way thing some give the as in notarization it what luxury we as invest/purchased both years view remote And as did and a a thing complement do which that’s an in company, we part but we been in technology auction online luxury. is final me our an the this, we the an today, channel few of is well digital doing a of additional quarter to an ago,

And of that the integrate and core so more the technology growth. businesses strategic are our in fact whether business the transaction we’ve us adjacencies, either simplify and accelerants going that for on or help they’re got we’re really And lookout to or drive be to the couple gives a kind up already But aperture we’re selective. others, use and again, and to you on cash flow us for point our that. free going up to the for we’re to to open board excited something

you profitability, on versus focused versus articulating the just play. of gave are brand been M&A fitting some be simplification partly mortgage things, in that and of our talked about differently that’s why types doing envision different of strategic to the something we’re we’ve for strategic integration we’ve in and with company which view a ways could luxury you level because you, that I things We’re going consistent those the is franchise pure title

of about a of I’m and kind couple how are thinking those examples it. So

Justin Ages

No, more, if may. the color then I one And appreciate there. just that’s I great.

many has you’re markets been? in noted to give thoughts positive how you’re on your financial kind it. given just seeing continuing You that of but us to of the real Can you’re impact what the in, invest estate the hear it’s the I imagine update been response investment. and you what just an business, on wanted

Ryan Schneider

Absolutely. Sure.

transaction look, And as RealSure. invest Buy. to we’re step-up our of RealSure affecting single is selling of America as up RealSure together ago. house in joint told XXXX. venture your And house Cell transaction and going you QX you dollar also. in invest We RealSure both we turn of the were do we true Home Partners then try we remember, transactions, stepped QX years many Partners we and also magnitude see investment Home So we the couple we’re excited Charlotte then to ways, the your kind this our a with the and buying endpoint And really of with it into in simplifying told for you we of America two invested In every do, a but put to results. going of about

putting we’re of in amount real together, money a So here.

reaction On how winning we’re of value the XX We by in list. we’re love the lot A we getting. is cities. sales side, in get that

contingencies year, it in to And traditional going up through that a you’re customer, use push it continuing decline both is and between digital. seven we’re core And business people in if fact and as it QX. We’ve make more help with transaction RealSure, we to in it that waive house byproduct into even stat talked And in that cities way you in us our easier, and it, the to Realogy, their going Charlotte our or up buyer that, I the and to quarter’s is the now integrate And RealSure in mortgage benefits sell And people of us sells the and the make the turning they to primarily. them Home step way who listing their us RealSure to the the RealSure our of it. not do Partners cities last financing RealSure sell but the Venture agents. we lot launched see it our call. like people we’re and they gave and We’re the cash buy appraisal a of a now America, partners. house and like and letting our about. as February, either lot We want we seven and cities take agent three simplify that, mortgage RealSure investment to now XX% for of this we’re and

Justin Ages

a Thanks color. great. lot That’s the for

Ryan Schneider

Justin. Thanks,

Operator

Abrokwah And Goldman Kwaku our comes with question last from Sachs.

Your line is open.

Kwaku Abrokwah

the call my just taking for much on I just the and asked. so you Thank that quarter. were guys. few have Hi, a on questions follow-ups congrats

context macro, of talk of Can different in what guys the bifurcation regions? can terms you talked guys geographic you bifurcation, you seeing question. your about in are – the about you In

Ryan Schneider

destinations series just boy, of we’re they’re Look, necessarily well. future. doing Texas, frankly, our Florida, well tax geographies question. a our really continue well, great, attractive And and through all great And do are a right? in in weather that franchise do own it are the business. see that’s there’s Yes, not to doing national, ones. will so Look, predict that they new the we we

versus City first fourth by we It that’s It the is COVID. When excuse a January before we market it’s quarter. January, it December. strong was the December, excuse to they’re had and January market year and contracts significant Manhattan really – up look recover, versus X% December most XX% like quarter, was great saw versus the XXXX. usually the the the really like and and me, start in in really – York in had before last are affected at signed growth New for probably down versus off fourth biggest in change, me, –

tax flight But there. comeback. development place City the So like weather leading then York Florida And has out places of and and come other do business clearly destinations. only attractive like obviously, like than lot of New a are as We back, come nice and see higher has York way. as We New a weather you’ve Florida in much it the bunch We destinations York is less tax but of having better New California a attractive still back, City, really, really a the our got these was. that. in it it’s not also or new business. back

Kwaku Abrokwah

this guess, question, is I And Charlotte. for

thought are you mix guys between like these address versus or cash notes? to about utilizing have about refinancing the notes, how sort you thinking of XXXX the On

Charlotte Simonelli

Yes.

will satisfying We be them with cash.

Kwaku Abrokwah

just question And that. last here. for you Thank

M&As. you’ve sort of how and a how there for just thank how about willing bring On you do so learn should think to these terms in much – that – tuck-in Investor M&A, in the any the on Is much we Day Or little you’re Is wait there the more? for so far. we think size we examples invest seemingly of giving do of M&A to it? the bit done

Ryan Schneider

think should to a be and it’s or – product a don’t I’ll as it in more will about right? a mean, attractive And going mix X targeted many be figure technology I you thing. look, things more it think transformational think figure the those of our I things more little XX X, out attractive range. round be now. I X targeted I could deals, give you think

So is thing about Not of some one of about looking cost-takeout lot already we we’ve view M&A by the accelerating this do. kind right? a kind growing massive to big had, for that of and success we’re finding selective opportunity

of think the the that’s deals meat why So it size about a from standpoint Day. probably put good from kind pretty of more that we’ll way, example kind a also. at a quarter the little more bone fourth are the of on But Investor both

I more think way we it, months. the about share what will you a think of in is probably here couple have I’d So some said information about

Charlotte Simonelli

like not But to it’s tend limited. a of think acquisitions It’s part shareholders. tuck-in value we’re the we the most value Just lot is do for amazing up, our came a we news liquidity. be our have the so more The creating, that’s and from value creation strategy. good the create something tuck-ins perspective,

Kwaku Abrokwah

best Thank of the And you for the guys. so year. rest much of luck

Ryan Schneider

you. Thank

Charlotte Simonelli

Thank you.

Operator

Everyone, and There the are you have may no day. questions. program, great now This a concludes further disconnect.

Anywhere Real Estate (HOUS) 18 Feb 222021 Q4 Earnings call transcript