RLGY - Earnings call transcript Q1 2022 | Anywhere Real Estate Inc.

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Operator

Good morning, and welcome to the Realogy Holdings Corp First Quarter 2022 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

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

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

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

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

rebroadcast filings. to filed of and that to our release our during revision. press SEC with in based information referenced who updated these regarding is NAR's our call. earnings measures of that reports and herein our materially remarks and that statements listen slides. comparability made today to those those industry annual Important Important results may and the For in actual well not to included and this from cause XX, which certain the the rules. you NAR remind initial discussed presentation, estimates, earnings the to on the April have recent on outlined this are Factors as subject we are in Also, and SEC. per issued are assumptions measures specified of today, call call subsequent financial will differ release be as non-GAAP financial in in are public home Last the SEC sales our today's factors statistics is quarterly non-GAAP quarterly impact earnings as review forward-looking most data annual and been the

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

Ryan Schneider

of we completed to with substantial results. by transformed Realogy Realogy's be driven transformation the continues Good spoke quarter morning excited highlighted $XX next. in today trends owned Florida. York everyone. our our business as XXXX XXXX. industry. in year-over-year to substantially I'm lower shared progress increasing sheet geographic grew leadership. standout that first net as continued first market Revenue all chapter we XX% strong New and leverage cost February, powerful $XX estate organic We high business proven in the and our with XXXX, latter XXXX our more success operated gains, growth, and and EBITDA to bottom $X.X line in profitable billion history. excluding like we QX double by QX recent last best brokerage you much I balance than the million. transform City When a the some discipline, of million results we discuss XXXX talent to really top We quarter was luxury is great our strategically move real technology in share what's incredibly XXXX saw in and and results unseasonably was million $XX premium strength the delivered with heavy outperforming The first company's

in Our higher expectations, volume line year-over-year year-over-year with business our a in fewer units. including the delivered X% growth franchise was X% and volume Realogy overall prices industry and up bit with quarter the

growth especially value of $XX agents technology and franchise excited result franchise seventh of and achieved and our corporate agents increasingly in perform which business QX core consecutive expanded strong and our scale interest with and sheet the well. we're ongoing This propositions printed will year-over-year, ratio, very at the is company Our continue as our attract brand. by history. balance We brokerage We the growth. drivers X% incredibly our net what seasonality. very return high retain our lower given sequential coupon best result increased quarter business line agent We right product over to leverage brand the three by highest of brokerage to We tremendous annual fortified we in expense notes, retiring X.X billion high-end million. by our expected a our times target retention

we our remain ownership price skeptical topic, closed are and of are joint this XX% really our pure of venture given our joint stake. our of continued venture. another underwriting for on the estate March. for $XXX iBuying strategically Centerbridge the received On excited focused strategic the real we growth venture we purchase in with Remember concept. Partners upside Now, We business million future

We are their the buy consumers by power in helping easier compelled and of an sell homes way.

to Realsure, continue invest the We in cities. RealSure in to cities seven in our Buy now our expanding RealSure XX Sell product product is And quarter.

learning and we're what direct-to-consumer marketing the a by and of we built played part agent our believe this are thing in special both our are from market. We

the delivered, mortgage to and results Now, higher we in QX love a in But the joint we emerged versus both that about upbeat we from last very for mark-to-market XXXX. the year, tough our challenge affected we we lost quarter. QX we especially $X much mortgage where generate. in biggest Lapping million really and rate trends venture, was margin year combined history saw and overall, QX, with results in full our are the momentum QX the negatively outlook continued

with driven Looking in we others mortgage are set ahead business since now and seeing the million by our guidance. change EBITDA to we deliver challenges for the in million we $XXX expect XXXX, primarily the range $XXX operating to the

cost year to housing seeing. And including you term, on cost we execution the in always savings for we about the near you proactive with full try remain plan outlined will the with management, of what We uncertainty share quarter. increasing last we're

in our XX% positive prices listings parts the are meaningfully and above list Over selling portfolio. premium still to on the definitely strength our historical norms above you versus the more are as brokerage And continue our listings offers showing $XXX,XXX we see price can And our sell portfolio see measures sales Multiple and of XXXX. weeks. housing on demand. up supply, we So within numbers. actually across it most could in If and our are very is side, two number of price per had of home we luxury properties up strong QX all points.

clearly the of hurting side, home especially, supply the challenging more combination the lower of time in the the rates end rising On is first market, limited buyer.

XXXX. you our a are business in is number latest Our properties sense data to franchise our and own down about in XXX,XXX volume And listings give bit of and the line versus of with April, XXX,XXX looks of our third our the below through week below brokerage our on current forecast open transaction volume current our forecast for month. our below a closed business in

at these million And volume currently is single calls we're about of unchanged operating of we're this metric for worth on is our EBITDA guidance about what but volume So XXXX watching remember point one we'll the business. our rough $XX in seeing. updated and that mid closely digits, you in keep percentage

the decade, course near positive medium the the this tough predict, remain is housing, of over term in for anchored to remains term while and in demographics market So, convinced the housing we bright. especially social volatility outlook trends

over in more Charlotte QX call to the turn now to I'll detail. So discuss

Charlotte Simonelli

Realogy, of everyone. strong morning, Good Ryan. once results. again, you, delivered quarter another Thank

consistency QX This mentioned, best that second revenue leveraging financial results the delivery, doubled next Ryan phase our of momentum, on the only strong underlying delivered discipline the foundation last reflects we As than strong on execute transformation. the to operating our to QX more outstanding our strength of XXXX. company's we offense in on as of EBITDA And And and was of and QX are record. the was our we year, embark continued business. the

financial Now or get revenue QX increase into X% prior an of million let's billion, the versus year. QX was $X.X highlights. $XX

XXXX earnings. on of $XX operating title in with million down mortgage million was quarter, XX% million. to higher on an to predominantly negative up QX volume of of In in to $X strong growth in transaction $XX lower year-over-year EBITDA track million were million we than of results volume with our and This was mortgage and are XX% $XX realized Even due $XX the QX prior and was operating growth XXXX due and ever line year. million, XXXX, best $XX our the expectations. the $XX cost outsized million of much earnings, full QX XXXX approximately QX savings up headwinds, savings performance expenses led with QX EBITDA year-over-year. for stronger year agency $XX top with volume of lower million, QX transaction Our by deliver strong brokerage X% the JV QX already

QX personnel growth higher gains Post-close, debt million the driving mortgage continued The business March in on XX integration drove recognized focused to this and program, ownership businesses, we by underwriter interest our along reported our expense driven this $XX improved on transaction our and to lower remain automation, from of is Centerbridge about on retained mark-to-market other interest and we reduction and efficiencies. systems to and due by refinancing. due QX For are interest swaps expense efficiency rate agility And related on of excited unconsolidated gain closed equity sale sale prospects XX% JV. our $XXX very QX. the JV. in earnings million with year-over-year

impact worth about comparisons $XX EBITDA versus operating revenue year-over-year P&L year and the reminder, will to metrics. a is million As other and impact prior

predominantly seventh the to making X% profitable year-over-year growth, owned quarter prior of $XXX QX I versus briefly highest of grew brokerage basis like Transaction before flat prior per first growth. revenue to intercompany and an International sequential million the driven increased drive agent growth Commission line and higher net by $XX million $XX relocation record EBITDA continue year agent and We Group in largely was record our points are seasonality more RBG of driven Corcoran. we year, and operating EBITDA Sotheby's paid retention. of We base generated of of $XX agent Realogy timing, QX versus quarter royalties franchise Now splits agent of highlight have of prior investments year. transfer billion, million, strength marketing normal XXX includes for of million volume consecutive million Brokerage group, RBG. Operating will recruiting agent retention due with our the in on the increase lease which high with volume and strongest prior versus delivered up to side $X.X XX% of top quarters was versus unit $XXX was XXXX. increase Realty year. the on results, one our franchise million $XX of best EBITDA was QX $XXX revenue of an Operating million, Realogy delivered business and the royalty up to $XX our our fees negative its commission and a largely to $XX strong QX, to mix by costs return business. expense decline growth with P&L.

continue business Operating a predominantly the put of days the upward the Title unit Realogy $XX are Group $X lapping with trends revenue EBITDA continue, due expect favorable JV underwriter further compress million closed QX saw you Lower on to sale industry year, and mark-to-market on GRA gain XXXX, lower capital this through prompted in a of higher balance debt QX with moving refinance benefited approach three purchase XXXX ratio XXXX year-over-year, splits million, million decline revenue were decline three and reflected against fees. from higher refinance QX increase year. of unseasonal In updated high We that sale. shared volumes. in in will highs lenders volumes, the times. we our in target We sheet exceptionally off allocation. some by a and ratio competition, zero I execute we of strong which million, was from margins volumes earnings our senior of purchase cycle had to driving these ended negative disciplined leverage mortgage versus net $XXX which leverage and offset a The prior guidance. and will ratio And dramatic GRA of driven driven refinance quarter rates leverage timing strong by and $XX by the a mortgage continue times QX less was of We what with last to was year-over-year. In our pressure will to very coming decline a times to purchase sizeable secured to QX three adjustments, and forward. margin.

$XXX of and business of interest As $X reduced to use $XX X% X.XX% regulatory our outflow reduction the includes at taking business. after reduced million. redeemed expense $XXX QX Free a fees was year notes. with million debt notes we offering, a retire typical just $XXX over Cash cash of hand million, sold $XXX million the the billion by earlier. result underwriter of from reduced cost of a was debt a annualized billion, on gross coupon of cash January's We end capital debt. million by into fixed is high higher successful coupon $X.X nearly X.X% This and consideration million for to and $XXX also associated a of that a and seasonal flow was our rate

Finally, capital million maturity. or committed of remain on We notes repaying position $XXX allocation our before remains unchanged. XXXX their the to

strategic more in for us This includes has grow Our investing growth. in to And opportunities M&A organic continue for highest helped capital share. allocation core we investing our the that priority business. growth profitable is see

and further M&A businesses transformation. investments adjacent our for opportunities technology see also accelerate in in to and We

beyond can stock be good to with think free authorized excess repurchase cash Finally, shareholders investments flow, Board program. are what returned our we

employ We and execute to Realogy first and technology. during with Day talent which leading strong strategically is strategies core business, more additional financial we in continue Investor RealSure like excited our disciplined brands, to growth other future May growth, a market and depth and the share growing class cover JVs, XX. are by and factors well on will paths

to very further time turn our accelerate call Schneider well-positioned Charlotte. we I now We exciting believe value. will Ryan and to Thank shareholder are we the a journey growth you, at and in are Ryan. back

transaction business help our be today agents articulate a buying proof we ahead, have we competitive and these economically during I be and to Realogy will where strategic selling. will years, opportunities and May build preview, even anywhere for the To journey share new We opportunities moving and will help excited transform attractive Day. consumer in future Investor the attracted different going upcoming the for the for XX the a home most of part home company consumers believe we great is which am will to be to give in Looking and Realogy will business on our that with set. you plan Realogy

XXXX transformation, February joined in our from Melissa Our delivering. new also product including opportunity targets, financial technology we who Charlotte COO, the what our it growth sheet innovation new and will share McSherry allocation. us and including sizing points are this balance already Visa proof And for describe capital will and means

recognition to want our more in I to the as top component the give we’re for of XX a in of LinkedIn’s Finally, And talent great really you second proud important U.S. exposure one companies an recent talent the our Investor Day. as year row. of for

questions. ahead your we for my with what’s excitement us, now So about take will

Operator

Associates. [Operator Our first from Instructions] Zelman McKeveny is & Ryan question with

is line Your open.

Ryan McKeveny

taking the good Hey, for you Thank question. morning.

a higher the splits So Ryan, are you called on the higher Charlotte, too. rates component XXXX you guidance out of also impact the the in change mortgage And impact I think particular, JV. mentioned and

lines, So the and for last with generally so has comments that since not brokerage – imply outlook and I again it’s volume dynamic. even guess just changed rates mortgage and more those do much the at reading the between split embedded the higher franchise quarter, the

through about playing the embedded if maybe update and thinking on connecting give you can ultimately kind So in volume year you’re those and how out with start that market of transaction us resell general a the guidance. and maybe dots just

Ryan Schneider

whole in because question, share seeing things in the It does happening To out frankly digit that for the think at what I a especially of kept mortgage probably And the we’re we our literally you out around there. incorporate guidance the happened mid-single is that of mortgage. guidance is the other which guidance in thank there few data where is more unchanged and of what’s a negative Well, at of we’ve April, $XX given it than is volume are it’s kind does currently pretty margin, where the quite looked market, uncertainty, kind business took say the the I industry Ryan. demand but kind blunt, in skew. volume shift did be implied. strong Look, business of lot lion There’s hit. the really the our the million a our quarter, headlines $XXX,XXX more than [indiscernible], but tough is first in mortgage the growth,

closed mortgage it. the are big margin the what or It’s we what rate so And loss. in volume you volume. for the majority on And of the on our pretty kind about from looking mortgage digits. happened is of see and to and to some it’s we mid-single were dynamics worry the reason mortgage we obviously, tried where It’s you close seeing And going the at as side, give the where places we’re positives, quarter, with to and market delivered there the really with sticking in business. volume terms we well in that QX. April’s at we’ll business couple as now our a million here, we’ve But as changed of what’s negatives that hit again, guidance a took but saw is $X the

Ryan McKeveny

impact talk take expense levers to or if start much. categories Got year that you there guys, it. very industry? Charlotte, where revenue out cost market for about beyond is if the even to if or if those down, segment can the look next let’s segment ones how materially there franchise you and just other on say margin you a does cost the to be say on think lower forward limit guess let’s to margin for year. transaction say the Thank the or XXXX are And in pulled costs XXXX for levers you we brokerage is structure, let’s it and be about fast I the slow try industry would volume. Can at if the or the focused And is a already closer with more you’d the savings categories you’re turns similar the

Charlotte Simonelli

the Okay. Thanks for question.

excited. we’re so And

this to about We’re a on actually May Investor can like And too. at XX. that on stuff more front. we’ll definitely do It’s more Day doing more our efficiency we lot there’s we’re share share on going two May about now, that streams the really XX the

through but we we think COVID, think a I have us still integration, savings showed And ahead is the market housing are how things So travel that would there that, the are systems cost separate get housing in of thing. movements something during like have attack we automation, temporary of calling the do there spend other years where that back, go more more can and additional you and more we efficiencies, depending I conferences, on we nature market, there was dramatic, a entertainment, market. meetings we going housing dire in discretionary on there’s things if whatever can like

see ahead always us the set for So discretionary it transformational two I ones that available ones but us we’re the to housing. as success we full are dramatic to to future will both on they’re on in more streams accessible up and ongoing, depending and really what swings steam consider us

Ryan Schneider

days, the asking point in past. a of a proof proof stuff in COVID we that, good that so the discretionary that terms a talk in and have can did we’ve we on the but of XXXX we at on what actually lot delivered start there pretty on about that’s XX more what you’re and Ryan, that of point

Ryan McKeveny

absolutely. Yeah,

Okay. very guys. it. Appreciate much, Thank you

Ryan Schneider

you, Thank Ryan.

Operator

Our from Anthony J.P. is with next Morgan. question Paolone

open. is line Your

Anthony Paolone

it and more sale it’s into JV XQ up help Thank you comps just anything for the that whether with Charlotte. clean you understand for can roll I but maybe first Yes. bit sure I the out, we underwriting or Good a to mortgage make quarter second think tough laid as try in us as to you. we of couple to guess about to try numbers relates the XQ. morning.

Charlotte Simonelli

Yes.

top at revenue. P&L start I’ll the So the with of

XX.X% last industry volume was year, growth at like So the we and lapping XX%. are

So lapping. we strong that have a we’re quarter very, very volume

and mind. in you’re on impact sale underwriter business. that keep material So the of our The revenues the And a title right. has

sort sale we’ve to title but much think clearly, of So the which an it I mortgage definitely I competition impact, more outsized driven revenue. as gain underwriter to was margins adjustment, side, and mark-to-market will in split laid think lower that’s QX going on this volumes. had agency relates out on more be And the year probably It between this we sizable going pretty in was impact but by that’s in it than is because the of QX. the still mortgage impact the lower on

mortgage revenue EBITDA. just about need a us, think to won’t I too on growth. first The year for expenses. that, definitely We in XX% an strip that of And and – the comp. the definitely So at it’s underwriter prior to but impacted struggle will XX% as out about volume, at then really is less the be don’t both be impact that us quarter quite operating forget thing volume bad continue that

and So in as expenses meetings that agent travel first the caught year. we of higher things bunch we in were on of done and sort the facing up quarter, QX last hadn’t operating a the intentionally

So will in severe QX, be definitely while impact was an of it a less impact. it

would the But biggest say. anything forget know. back I underwriter, the on share sort And one-third drivers our else of of less there’s us just let those you that. if in just add are So than to don’t need

Anthony Paolone

the around the question in to higher But Okay. as No, on we rest of Thanks. about going kind expenses OpEx year, think and other you’d touched you XQ. was mentioned my of that. be the

So normally number, XQ higher if be you just it’ll lower than was Or it in a think is is at in seasonally? OpEx we it that XQ? than will be look actually that would

Charlotte Simonelli

We had rest savings. the would the million they it quarter how the start So $XX think as expect we I the of first let’s with build go. year about I is, in cost would

I some OpEx There like into in of expect could one-offs. as predominantly we driven then sort in $XX-ish And expenses. those and QX. probably those – million it’ll ketchup was things referring improve were you to higher get by a QX amount QX. similar by So QX The was

prior would was. So that that versus huge that’s much, it much should smaller you I think much, uptick be than assume year

of like in call So year-over-year. you back second of the million increase could $XX off, million or worth sort it that quarter $XX

Anthony Paolone

Got it.

Thanks that. just couple then Ryan. And for for Okay. a maybe

objective I of quarter, share. market the NAR, think mentioned close in to so your seemed first year I pretty think You’d consistent. this gaining last X% volume the quarter, system And But was guess you I more gaining what measure Because but specifically, just to when agent market what you count share, was. up are at NAR know I looking say don’t agent count that? X%,

So just trying to gauge like how you’re measuring that.

Ryan Schneider

Yes.

it, volume, You’ve as core at we We Tony. total NAR volume the already kind got as look use total do metric literally and a just volume of there.

unit So higher the we we of business held unit, terms of of make our kind share brokerage Though, quarter. owned in NAR kind per more in higher where double was money growth. kind than of first –

felt that’s kind we use. we But the So about metric really of good that that.

do and we able that Charlotte We’re kind have it year this bit inorganic But excited objective. and of about our our strategically. about of still as about happening, we business drivers. you’ll – number it. growth And kind obviously we’ll that against talk be have as see so talked of We public to measure likely a it absolutely we’ll little

Charlotte Simonelli

sort of in latest remember just single like And last forecast year point, of ahead we the I NAR we’re mid still is year X significantly something, and and The mentioned. like minus think QX that digits. too, NAR QX, I just to the Tony, were full or in

evens every in it’s may of the it too. wash you based – of part but out on not prior sort of it the So quarter, year comparisons sort see

Anthony Paolone

on headlines Okay. buy don’t industry, which know Understand. the say I to would comment change And about plan then really the much of be? be just you you’re perhaps picture. around can how and question, if thinking some be implications bigger seem been would lawsuits commissions? about, think how lawsuits, does regards there’ve with commissions. toward industry but react or last the just unbundling What even in would some geared something last the you Like Realogy? the to on your week side for what in you Can filing the you how the

Ryan Schneider

big an Yes. pending defend you vigorously. comment we’re as you them think going there’s But the team the other end and litigation, on Tony. things kind of both at should I lot us the know, your both industries. of doing Well, a know believe And there’s would we’ve to. really them But want not in these we kind got legal We we’re experience industry take don’t of executive and matter, shareholders I and have can of and merit. seriously. in litigation that this all legal And to think said, look, to obviously the believe don’t do to our lawsuits on merit day, question, – strategic want would I you of I they we have

to We’re comment much to vigorously. going on to be going litigation. not am pending defend them And I really able just

Anthony Paolone

you. Thank Okay.

Ryan Schneider

Tony. you, Thank

Operator

next John with Campbell is Stephens. question from Our

is open. Your line

John Campbell

morning. guys. Hey Good

Ryan Schneider

Hi, John.

John Campbell

probably stripping business? the kind underwriter puzzle agency I to the underlying After enough think this. this hoping you EBITDA have together, out of margin title, guys us to you shortcut title guys be might put I’m able pieces for the but earnings, what’s given

Charlotte Simonelli

our want later calls to right – to on to I’ll my follow we’ll up give at that. on we misquote it, that. it I later follow have have don’t but that fingertips, know you don’t I I don’t we’re with so call. Yes. you when want misquote to I

John Campbell

Okay.

Charlotte Simonelli

split you a before, split. GRA out it’s piece, strip the though It’s XX-XX like a XX-XX if

John Campbell

you of to for you a hinted growing talk great. like just at whether guys but the one-off And I the thoughts. Bain And appetite if of impact guys sign volumes of Banker sounds to just kind for your guys? expected kind Coldwell that’s saw that’s It you the then opportunistic Can acquisition. a M&A? kind Okay, that, of bill or

Ryan Schneider

Yes.

if don’t We’re brokerage It’s in if back one luxury – go where done right. own Banker the – premium, we I Coldwell have step glad the our Northwest. Bain to Pacific up skews the have John, geography you business and

but plus, We’re right? of point we skew, geographies don’t to the business. like Banker best when our place up Coldwell Sotheby’s of kind kind price kind owned point both and And is in side right of premium business some there And in of where one in actually map, $XXX,XXX, and there’s average look And $X of really have also high is with about is be architected luxury you average growth. presence with Pacific geographies, brokerage Corcoran it’s as that Northwest. million at luxury in the the a XX price kind in like a the

gap franchise kind volume franchisee an think in – opportunity really so is strategic the lot in kind so, obviously from about side. a growth money there’s growth more then, potential. the so and Bain’s but of swapping portfolio. what And to every of change the our we’re and existing And brokerage fill that market excited we kind a we on of unit leadership near-term under good our potential just brokerage, make It the the to both

up having of at kind footprint. market-leading of Seattle fill not market, the kind stuck of you of that. our when company nice So, kind that really one in a ways kind area look something to out of this geographic was And

glad it but thing. that you and do is and month. And seeing of so hopefully call, done supply. premium again, have. kind strength kind demand more outweighing the the that we in that financial huge this April is market an We detail And lean of the And still we’re was place actually in we go here amount consistent did with next to of way that’s luxury ahead we’re a have quarter’s can give

the and And their company. to happy employees and of all agents Bain really have we’re so part

John Campbell

great Ryan, That’s And Okay. in could squeeze one hear. if more. I to then

the exact April? line closings digit Do in just have thus April of details the talked open you’ve you or around the single listing You the seen the the kind far the about holding low orders April, on growth. of

Ryan Schneider

exacts as without the have below the it’s at I frankly, our you on exacts, up bit being closed going the and not forecast. then, volume And our April. current the the listings which I the includes stuff includes current for right said, end the I April. giving kind I’m do, for is and month, a April forecast open then XXX,XXX lower and being listings up in The down to

John Campbell

guys. you, Thank great. Okay,

Ryan Schneider

Yep.

Operator

Our Bouley Barclays. is Matthew next from with question

Your line open. is

Matthew Bouley

morning, Good the you everyone. taking Thank for questions.

there around curious scale up. And interest there’s makes mortgage I’m a difference the competition it’s speed here And a this on At and sense? in that call holding rate, it what know, then, of where just can framework today’s for change early the for you that Thank kind scale, that I too. you interest little scale makes again, profitability? in pieces the know a that. that you. is of years, JV, of business up on breakeven over lot as the sort realizing drives hand take But mortgage if And is So of maybe don’t rate world. a I breakeven moving rates kind

Charlotte Simonelli

Yes.

This – a it’s to right. about. you’re couple got So think you is things different

speed competition. of So an impact the on mortgage which the had changed definitely rates

itself it in three, and for this decades months, of it’s sort You’ve everyone sort two, an where out. gives eventually what evens seen the there's just happens industry. of then period margin acute four a on of And of couple

mark-to-market going it's at So in big still are grow. have adjustments, to, choice We we're what's still to still one the these have that's flow That's discretionary. that you that invest you've making. we're but on a making with to do business sale that, lapping of quarter, gain recruiting we're officers, some can't But don't to expenses got on the in look throughout to this on going cases, conscious margins choices quarter. top and we there's something just

making than environment integration more picture and love And bigger today's But different like this or for we're the the about we could now. more we sort business to a us. is ours. in even money be choices even of this making breaking So little of making

a bit to for of willing short-term long-term. the we're little take pain So

to just to way we have able long-term. you I tools re-fi you re-fi. the think be be it, where volume it too but to just going purchase an of to is think like We're over count And versus periods that. this history of additional the to do crazy for already about for time can't benefit, in growth And just is the sort when it's choosing at get you this time. on So invest have that the that's there business are

of is we're in share. to think these kind grow really why plan be what purchase and to the a you got So your future for for making that's investments going you volume

Matthew Bouley

it. Got

it, an that, the mean, split curious through of that's we I predominantly updated the the you commission Okay, very in rest in on of should year? you misheard JV, I'm commentary, don't the target and on on of maybe sounds if the if maybe if that and Thank apologies that's change the thoughts just mortgage kind helpful. for cadence that I I back the change the can Charlotte. commission but then guide give into like what it And obviously that, just splits splits, saying you're difference. if know

Charlotte Simonelli

Yes.

So the very much of call bit impact sort these of a increases. the of I'll split are to like guidance what some splits impact, and small. smaller seasonality change There's definitely a

we're volume seeing bunch like, in – QX a So in of that you that doesn't hit agent sort we recruiting as have what the bring doing we we in still the year. we're but of later an

agents versus seeing kind the prior we're just comes volume on are increases board So year later. as coming split the and of higher

part of still QX, point from property driver. that's that hit. business it small XX was a that the a basis so in So There hit sale of the call frameworks,

than rate we the of higher like what see. degree we're call QX So recruiting definitely rest active dollar QX what we company I the forecast for is wouldn't to It's recruiting and But doing increase not doing year. still is the positive. the we're the

than splits So from we're them. commission with these we're agents more on getting the offsets whatever revenue doing

is their said. volume their reasons So I on this of can't year, and phasing that higher volume driving it's volumes they growing we're sort with, until in which of table higher would of you're in some for your sort to is the all when that the and the end the high that and prior thing the one it's is at But the you you riches at acute of be stuck agents had table, feast a top high I a end here already of just the stay of say just volume but like of QX more variable fade away.

higher higher like we with too, split along end agent mix. are inventory a So the is is One that higher we'll volume bigger continuing When it. and goes the we share are the agents they of actually and factor so take other to rates. the tight, see get volume at higher

with, is live that that So it is helps. call again, but to hopefully extra

Matthew Bouley

you And does. much, It Thank Thanks Charlotte. good very luck. everyone.

Charlotte Simonelli

Thanks, Matt.

Operator

question with Tommy is from McJoynt next KBW. Our

is line open. Your

Tommy McJoynt

catering how questions see that your cash many higher rates toward is somewhat to can do market, high it With end purchases? guys. buyer my the morning think you given figures versus good are Thanks the percentage or of less And here. financing know of by of exposed specifically all your for to Hey, monthly? Realogy's is brands [indiscernible] taking that fair volumes more we cash what all no reported those cohort

Ryan Schneider

to like business much cetera, numbers talked skew geographies, think, luxury and I growing, which kind cash Sotheby’s don't large, brand less franchise the to our much those all higher our statement more about would your mean, higher, be do rate business. a mean, are, are is our actually the far have brokerage quite franchise little I of portfolio, all Corcoran here, luxury et I percent architected are of parts but business where know as so, We give by the sensitive. cash price, majority, deal the really are et I brokerage for cetera. skewing I is true our you business I is and and our start of higher by is more very in own

side. Now, million a a a the in mass we are a of still a price franchise market point. do Those at do economics are we percent The busineess. transactions lot deals $XXX,XXX And hundred little different.

but uses and have a part some on do skew maybe as all mortgages of at little immune of toward not market that less more we're rate less we company, that stuff. sensitive the a so, the And

Tommy McJoynt

Okay. about That’s or any along kind intuition in-housing ahead affordability a of of rates, the rates activity you concerns fear of having risen, thinking rise is similar any further? the of a pull recent that Ryan. do has helpful, And continue to been forward could of then constraints have mortgage kind some that with kind

Ryan Schneider

like years thing XX little turning supply kind to be millennial of XXXX in happening COVID. look, rates years the biggest And mean, five in birth demand right. is not think, I incredibly if the in rising, maybe millennia’s demographic we I got a but just with are going no. we demand, pull of saw mean a in strong, are it's next buying constraint, operating right? but the only forward second very are You've guys, no, of I world the a effectively. here few generation depth Actually, where homes, But people

it's like, biggest biggest the generation. so the And of part

a have have also higher than out the better supply weather tax thing. to You environments, is the migration remote we Demand there. just work lot

this home people And one that people's reading would to them they in We search, different. constraint. respondents transcript that. their have a more they they Then they became they they said, to rates. home from the only did home a and and and and going or I about mortgage are did said houses sell rates not transcript the would would in is mortgage pivot necessarily their back a twice then we response single higher impacting of At high in of little with search digit builders was stopping rates survey they just long a people XXXX stop here, did the of numbers talk survey smaller could as from risk that their higher percentage of also their affordability said search that XXXX, stop were as kind

demand pain, environment think, business, to is what the rising constrained with market, got we thing is even actually mortgage of very happening the this volume haven't is outlook rates. where reason what's given in going in our demand rising while take part supply I we on some and high mortgage a changed happened rates So, our see we

stay So a predict, rates frankly, such there demand just rise when this in continue I thing environment high is it's is a interesting both decade. this most to for of I not high think, year, a for demographic but probably and have supply thing to constrained very

Tommy McJoynt

Ryan. Thanks, great. That's

Operator

your Markets, line Berenberg with question Capital from next Justin open. is is Ages Our

Justin Ages

Right? And Thank morning. you. good

Ryan Schneider

Justin. Hey

Justin Ages

hoping transaction. sell the to get get RealSure service turning on to into the update and an was of and opened actual home the from you that Realogy mentioned interest a on cities. in translation has know agent you sense an I more wanting hoping in where just But first to people transactions the I

Ryan Schneider

people Yes. something thing. same doing We here doing. Look, future great. got is like there's other what think we opportunity. what kind we usually a a fully think we we traditional And is think we've either. because do few thing enough. the smaller iBuying think don't startup And of there the is kind We to kind the are think think special companies We of brokerages real of we're trying frankly it's don't

So different we're we're them. with in and the of we agent still agents still places a We're very, really of We only again, like seven training winning on because are in But successful it. very up the we're bunch also houses listings. few in selling still past. I've our growing the agents phase. that you and Look, side, we're marketing on don't buy cities thing. end direct-to-consumer experimenting buying in stats incremental given kind

the this we’re model points. thing winning the got. We that things But to we is the with are going listings, part like succeeding of the we've in growth proof we reason investing gaining about more early year. good a getting see really from share it's So, that this, deals,

Justin Ages

at if the then right, vis-à-vis one's the about organic you this you attractive, guess, top just missed list? maybe Charlotte buyback when allocation sorry the capital I switching your and That's more on thanks. for can All share gears, that put becomes helpful. growth I and And of it, talk

Charlotte Simonelli

it. think the script. ways clear in be about to pretty two trying to there's was So I

making that our core definitely market and of it and you to are, We're business, And the XXX in effect to on be we're lot are due lost committed that. our priorities retiring in do shouldn't we're a XXXX. having Our share. the we're investments that the going

we not this available those. extent But in going happening and to we're get, returns what's and do sort are watched So we're of lost us, going on to those markets, the to stuff. it's that opportunities the us the the capital to like we

of things that, So right choice gave for time on you but the call, our we at priorities shareholders. and the make misunderstand don't the our on are in don't the watch things right I and we're for in that the order top we'll that business,

Justin Ages

appreciate I Thank color. you. the All right.

Operator

will Our from today come for Abrokwah final Goldman with question Kwaku Sachs.

Your line open. is

Kwaku Abrokwah

I congrats Hi on guys questions, mind. couple have the of quarter. and if a you don't

tight you Ryan, think about supply. being the talked and demand exceeding inventory I

I'm incentivize your I this the get supply perspective market. sort multiple times, trying to I'm question So here. bring onto will trying to but a before of the get sense owner of, what I've think asked home new to

in in what that and high home? Given a at get rate would more in low you we've we're I'm listing where, to now been rate multiple markets become environment. a a their trying environment, the sense of homeowner think do now, what interested like point

Ryan Schneider

back the is, first all the say Well, should to always go between think inventory we difference and I I'd supply. thing

realtors So station for forecast. the of somebody example, referenced national

they about you forecasting they're X.X year. resale units at forecast If out being market in the traded yesterday, put the this million look

X.X with market The that's Now million we'll we look that's this guy of you number higher fewer the and the I we from but as price. is units, biggest actually, XXXX. think consistent down year, about at had if units million have XXXX that units last that would've like X believe a our that – to

any time the units being more year literally decade. it's last in have a So actually that would traded than

the houses their moving talked the the of low price time the inventory especially moment, the high So so any area. at about And people much at is thinner clearly being a for first the are there putting but lot market, the because clearly home earlier, house quicker. demand reasons of on and are buyer I

got market, move. on house of staying the there putting people both their plus social, normal partly people So And they're kind are trends, remote but just they're long. the work market, house reasons the those putting the of very and migration not on because

could it's rooting at with is them I kind little post-COVID didn't just the spend the spend state even house the leader, more builders why level anything for and actually about industry or level second me their federal home supply who is, selling why building anything of Realogy, who I'm during need easier. moving of But For why were still which local make an there is awesome. of that'll the the doing time kind and as like a, kind of of that of they're encourage kind and COVID to And also and time we people two and sometimes a – frankly is, one bump there's is things bit for think really help.

kind we That reasonable. striking be And sense the would quite of of housing give That's in more personal the my moment and because So time available inventory market, putting to they're demand not that want the tied that's why that just I one keep view. market we year. and with be is people not high enough have of but the think any I not it's actually bit just problem basically could again a do last were here, you not saying houses again, it's X.X aren't house decade that sell I on issue, at any the that time of remember somebody's last million just biggest housing than their find people there but a on so to for that social is amount I a sold long, the units other in is forecast, as just it's staying think I that them.

Kwaku Abrokwah

lot That a of That thank makes really there. that. you sense. good And for color

more this any just you on this end but guys heading economy is opening where maybe we're really through the Do given XXXX business into Charlotte, accelerating you quickly is and that year? very the If of and the on, have I'm update the relocation. on summer. for curious Moving through mind is

Charlotte Simonelli

you'll Great shoots reported some sure. see green for question. of recovery results. it have in our we And And

is we second about quarter quarter. business this And sure. stronger for the Our feel good

back. may two of things other to definitely though moves keep be So things different. in mind are There types are coming that

them. So lesser maybe us, of there's little bit there of do may a be a which ton for to a but reload, like sort companies more willing less is profitable expensive

have term. bit are little of the in global that kind in of a may back by ravaged be really And places still little type coming a move economy changed some bit the COVID. the So some might while, there more places, short are are

results geography definitely financially, not the the story improved. same it's our So part of every are in

the shoots, the like but geography cities of now, So green right the of you're in. two a types on it's tale moves sort we that of on still depending

Ryan Schneider

give a put relocation team way, of platform team, a the quick after shot I'll move and that team pro has kind both the by and new couple a the technology good our out referral really I and Charlotte XXX business, frankly, the kind that more described feedback tough gained from getting are believe market with of both existing environment, some in clients clients. with really albeit share new some in business and products strong

customers. our primarily the driven we're focused it's but given you of their to you brokerage value question asked U.S. that see a for is is still, on green So, it if kind company, and see that there creating nice shoots team to

Kwaku Abrokwah

one the cash like And you as hit curious, of flow. that for you. of the don't you will million show that, Thank the million I I'm the last think sheet? the in timing between, when the non the will to gain great. up of the me, on if cash the just statement title given recognize sheet, of cash difference just actually when curious the $XXX That's mind, balance cash $XXX underwriter, closing the I'm

Charlotte Simonelli

Yes. statutory, it business. immediately right hit, regulatory because to up but out went we had cash tied lot the The that already cash the of a the door transfer right to

went in moneys with underwriter cash the business business. of with XXX we regulatory stay business, tied to has along out that because got the the to they that So went right that's back

we but because the vast with majority the it It do blunted along have saw, in anyway, was use already business. it's required regulatory went we back fact So it held it business. of that that cash, to is be was the to didn't by, cash access

while use sheet, cash. to like So always within it it we that able wasn't balance our were

Kwaku Abrokwah

that's the Yes. always get number, I'm readily guessing And cash recall difference. guys you and the available I

the that a to And forward available become basically. lot a between is readily so your basis going cash go difference and closer, on

Charlotte Simonelli

also in release you'll refinance debt We we a just thing the the retire Yes. million we that coupon to that see in high didn't some that debt, well And associated $XXX the spent press as first debt. was as to retire queue. remember fees then, much in had whole the higher And which quarter. wasn't, that

lot a of stuff choppy the going in So there was on first quarter.

Kwaku Abrokwah

rest of of luck best for and Appreciate year. the the

Charlotte Simonelli

Thank you.

Ryan Schneider

Thank you.

Operator

questions further you today's no are Thank webcast. There call and conclude will conference participating. this for and

disconnect. now may You

Anywhere Real Estate (HOUS) 28 Apr 222022 Q1 Earnings call transcript