HOUS - Earnings call transcript Q2 2024 | Anywhere Real Estate Inc.

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

Operator

Good morning, and welcome to the Anyway Real Estate Second Quarter 2024 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 Anywhere Senior Vice President, Alicia Swift. Please go ahead, Alicia.

Alicia Swift

to Real Quarter Estate. welcome Call Earnings and Anywhere for morning, the XXXX Second Conference Good

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

X As about and 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

regulatory competitive, and the estimates subject are other antitrust, many and contingencies, projections or litigation, including control among beyond economic, statements, Forward-looking others, macroeconomic to of other differ may implied industry those inherently results materially and management, are expressed and the uncertainties in and statements. significant which Actual from developments. of forward-looking

before, cash have onetime we expected large flow shared free X As headwind. we've

$XX.X headwind which is and paid could is that until of and of is developments proceedings uncertain, XXXX, $XX $XX.X $XX million the there we the timing quarter approved means in was that XXXX. reminder our million depending appeal second litigation due paid a of which will The when settlement million in be In are The remaining, this, XXXX. on resolved. first million appeals be delayed

$XXX our due XXXX, legacy million of approximately in tax $XX over the gas has Second, Ascendas these XXXX. XXXX notice headwinds $XX shortly million free best flow and is yet but million matter, We is still estimated XXXX. for previously is happened, after cash not which received, current approximately anticipated in

morning. the our periodic including this XX-Q matters, Form we see these of filed discussion SEC further For reports,

SEC practice which to implementation potential estimates include our in remain of uncertain. flow in not excluding filings. industry cause today remarks quarterly in core could differ well as leads. statements specified cash the these as franchise from are the any results free reference that to assumptions is impacts franchise factors and relocation annual relating earnings Our materially do The our to release the changes, those segment, settlement and in actual and referenced forward-looking Important issued

to that the remarks of who call. and presentation, not initial the August earnings those as rebroadcast to X, we listen have this subsequent For the been made are today, updated of herein remind you

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

Ryan Schneider

Anywhere powerful results the second in Real Estate delivered financial quarter.

historically putting demonstrating mortgage estate the continues of are on settlement luxury of rates uncertainty track XXXX elevated leveraging franchise, and we on success changes strategic the across for delivering practice supply, and octane remains We to advantaged creating are services tough a sale litigation building industry-wide limited what and ancillary our And in be for impact part housing, like future. home out to cycle. very coming including transactions. can another low Real the financial uncertainty. scaled the strengths areas year control, Macroeconomic

these industry position for entire we the uncertainties, and further using growth of the competition. faces this us versus While are time X change to differentiate

supply. the savings sell-side million court free quarter, received target having XX payment. volume like During We versus year million. quarter X% the grew million our with our the of approval and billion action to revenue gains settlement of EBITDA. There $XXX cash XXXX, $XXX $XX including of operating excluding growth cost of price prior increased the our California, transaction savings seeing million flow delivered and market the $X.X the realized of X% we and of portfolio approximately second full We We growth, $XX the Florida, the the are many the final over unit we than nationwide more $XX including price states the in XX and for Texas cases. some and And generated country high interest in was about of of Jersey California. by states, results. like with consistent settlement New litigation year-over-year, double-digit in effect weakness rates transaction The million of Florida. seeing driven include lock-in antitrust continued combination hurting price largest we about declined year, dynamics and class in Units XX% largest

on agents best the prepared to focused incredibly and the are ensuring in win We are changes practice our and industry franchisees upcoming are for positioned market.

Now strategic the in our turning to quarter. progress

Anywhere competitive advantages growth to streamline continue We operations. and investments Estate with leverage to our Real to drive transform strategic

our include: investing luxury we and examples leadership Some disproportionately luxury, in results. love are we

and and in brands Coldwell also active up book the million $XX including with our multiple above $XXX million prior our over market volume Realty versus units our agents transactions portfolio. and have book, million-plus quarter price. Banker market substantially over includes plus from our Sotheby's and meaningfully the million-plus of luxury outperformed $XX International outperformed year. listings the X,XXX both deals and both currently $XX We sales above listings million, in had and global a unit volume positive in different sales Our iconic And and record geographies, XX Corcoran $XX XX% having XX growth. This our we the number year-over-year in over properties

deepens We are Colorado. growing business. continue our more value the with love geographies have in pipeline. X We upward the We business brands franchisees. us we continue Florida, relentlessly remain enhances and streamlining Tennessee, title economics. Carolina, speed, like excited in opens new its state, on to into two and and our of and opportunities participating upward love. joining including quality strategically and this for to we the North new in We operations our expanded the in grow new sixth over momentum the focused Each relationship our like because automating title XX JV We franchisees it franchisees we high-growth added we simplifying, benefits. earnings and cost franchisees, for franchisees business expanded offering our with quarter, our great franchise states proposition, X It our

marketing spoke country, we to doubled executing and implementation we've last our successes this the will our finally, cost integrating million. you, with and lower AI of multiple solutions with title our and $XX economics realized agenda million lower And actively speed, contributes we in digitizing and generative and quarter, cost rollout This that easier and areas. our base. thus of as are last and increasing AI a our Since national brokerage told you $XXX and to agenda can later finish deploying are target see we title in of engaging we quality X/X mortgage our and many company drive to it to You And innovation, agents to and we to the makes across in benefits year. recent year-to-date progress our operational operations. consumers capture cost parts annual new

AI, moment us that accomplish work, transaction. to future. automating stronger our opening invest costs. operate processes automatically And XX/X, Anywhere So further listing excited has of us to I'm home our agents around to lets top ownership. I lowers tags for XX,XXX strong, documents, remember, in future, our in product. in descriptions, property Using progress is including e-mails, photos Banker trends this company a the the faster, transactions delivers captions them and continued and utilize lower listing introduced XX% from error substantial strategic photo new outlook fueled markets. this example, a medium-term in financial we for recently Realty by who documents priority we reviewing demographic record for and capital recognizing the track housing we receive business believe great desire meaningfully we only by quite not to be home, seizing especially for every and but these better greater continue lets rates of operation as appropriate the and AI this tests over of our Coldwell the capture And AI team tool the our allocation quality are delivery, automation reducing with generative housing to Leverage and for our debt. capabilities are them our day. brokerage This much generative other proven strategic results should single drafts concierge. critically transform applying the

like discuss I'd August I of Now to by settlement. Association XX the National before industry to the Realtors litigation changes practice over turn mandated Charlotte,

to for franchisees and since future there's confidence and be in something implemented, the we with we've challenges uncertainty our agents and are these opportunity embrace changes there been in we to succeed, franchisees differentially agents complex settlement our While and our an anywhere for expect XXXX. focused announced as of delivering on QX

to is thoughtful a key agreements One they committed of of changes consumers. guiding core these with buyer transparency approach. support concepts the offer mandatory X buyer agreements is Anywhere the our rollout agreements. We for

be Buyer simplicity. is free jargon. first legal The agreements clear, of concise and must

showing too a a cannot be understood and complex. if electronically example, minutes agreement for few in it's home, before So the just executed

want likely the will other depending is scenario. flexibility. for agents and Consumers buyer The options agreements on principle different

version a agreement so templates buyer consumers agents purchase and for we that providing that helps consumers home showing select home agreement just a or a example, and the this covers For multi-month buyer home a agreement suits a covers right we're journey a best a that agreement specific needs. a buyer And envision buyer family. find their that multiple to customer to can end, the wanting agents or

their display the agents best sellers their interest. compensation buyer-broker websites. We And the sellers encourage continuing of we owned highest be compensation to brokerage buyer-broker We to for and help And always in market in the will is see on we change significant as and their certainty options compensation. offers best educate see compensation. date, the Another of home voluntary in to the buyer-broker seller's offers on in value secure offer transaction. of believe offers buyer-broker of act our sellers to displaying

and best. help changes franchisees for the us we and embrace industry, unique successfully. who new opportunity of these the the everyone And reality it best believe affect we're can remember, a in and position means do in that Now to navigate those agents that

price as practice than don't these competitors of mover insights faster as more these noise both been commission-related have because adopt the scale. changes we to the affiliated others. agents, our all its and franchisees remain focused litigation last ongoing mid-July this our on future. the incredibly to demonstrated nationwide network in agreements. settle data how cut our helping we Voices, agents buyer employees best the advantages confusion. navigate changes the are us and on us franchisees and needs industry We're advantage adjust leadership We and a industry Yannaccone, and excellence leveraging during insights we've geographies than uncertainty. and session publicly I playing longer industry decision of launched delivered available the across Anywhere we more Brands who out the navigate our that our why guidance and that's practices to through changes, clarify Having these to recently and estate professionals provide differently enabled better Advisors, new and I points. year to Anywhere have Frankly, a Sue an CEO of first provide real implementing for have industry of to professionals And and And proud have first series

While lead real the we we ahead franchisees present it to positioned turn estate will let With to to be best challenges, as that, Charlotte. road me our may agents over next. succeed believe and what's

Charlotte Simonelli

Our growth generation. demonstrate flow softness cash when growth, our essentially financial anywheres resiliency our volume and volume revenue now and the will set free highlight strength profitability flat QX second stronger with improves. continued competitive housing versus even emerge versus billion, as will by to quarter results. strong drive our I was market holistic prior relocations. enable differentiated $X.X unique We quarter financial transaction financials performance in year discipline, was offset believe second us continued and solid

an recover. cost transaction We enterprise. of of million growth our approximately by operating versus prior to million savings second lower increasing housing optimistic $XX are quarter increase consecutive target growth was encouraged are to year $XX volume the due across year. million, this X% and by QX million $XXX EBITDA million quarters and year the and We savings for cost X expenses in are $XX to $XXX delivered full volume

with $XX $XX was flow, manage exclude our at the cash you prudently $XXX our QX QX Free was if to flow cash. like-for-like excluding was payment And a hand of QX on was million. $XXX working on on line free and about million, XXXX basis. capital, settlement cash continue million securitization million. in which free end timing legal flow cash was partial our Cash We

$XXX million. the During end quarter million, now of portion the at the revolver down paid which balance quarter, at a $XXX to sits we

Now let on our me segment go into more business detail performance.

franchise last relocation which in Brands And core generated our performance over the stability business in includes were due quarters. and relocations, and the EBITDA franchise business. over XX%, leads strongest million Operating approximately client volumes QX, Our Anywhere margins year-over-year, $X $XXX our to operating its lower business, time. love million We core EBITDA. primarily in our X decreased margin

versus attributable prior splits QX for new of lower higher our substantial Other lower due Commission of volume we increase on our increases especially these of These Our relocation about many a rate marketing X Operating fluctuates operating which $X and year of price in their transactions Services both Anywhere business. XX.X%, basis year-over-year million, year independent by geography. $XX respectively. on operating QX. spoke luxury EBITDA in JV XX remember, $X of prior recruiting than to the by leads in from an The purchase $X our million the QX. of ABCR effect, year versus saw softness agent due And is closings due retention points, part mortgage were the EBITDA quarter, the versus markets, QX in in Idle of X% earnings. higher increase, high-end similar to EBITDA to million, such love to north QX broker JV. was about effect reclasses up year-over-year. by costs. average in generated transactions depending in results Ryan outperformance in The increased development during business and Title is portfolio, The rate such brokerage remainder amortization volumes, brands. The QX share prior split versus was decline other noncore points as particularly of partially mentioned the items continue prior our EBITDA X versus and X/X and QX slightly, economics growth, operating excluding year million a reduced up mix company-generated declined by meaningful million and top increased are in which luxury on in higher Advisors QX XXXX. And market, in lower quarter splits decrease and our greater and the we to as of were to and as and down call. Anywhere decline the transactions and also one ABCR coming is trend take earnings by driven the agents the brands volume annually, have mentioned $XX some the and ABCR. basis XXXX. would the what we the as comparator California, mortgage payments prior year prior commission were offset improved advisers mix for tough Integrated driven declined

Moving on to costs.

We reduce and in meaningfully approximately costs. give increase The our million are target on further fixed cost variable. cost clarity focus increasing and savings million is by $XXX And driving million delivered details on some here to to of reported savings its are our $XX approximately by segments. year by $XX speed relentless year-to-date cost to us savings. driven year. further have this of opportunities these let AI, by automate and the also front remind and excited high me can and are the with is business, in where and certain We're this our to using The our efficiency processes, operations XX% footprints XX% that quality our additional results reimagining focus tasks. Brands on of and we shared continue leveraging AI our cost remain margins of improve generative by examples structure, you business we and drive to roles streamlining business segment Ryan as and full

XX% approximately Our and XX% including fixed. commission is owned variable, brokerage business expense

our of low these more our will fixed favorably points as on each XX% down in housing we continue results, margins inflate impact market. X improved the continue in historically businesses in X And year-over-year have of driven that XX% All savings, the We as ways further which we drive expenses continued Title percentage the benefiting approximately believe this last especially fixed optimize variable. spite of percentages. we volumes, are percentage to working. we said, further normal cost to and years fixed are from

is a balance our Our sheet always priority. focus on optimizing

Term time. million address Loan will by approximately We our QX, will $XXX that at which be A

revolver including many debt. are or flow a cash We free it our refinancing with and evaluating options, other it repaying combination with of

is cash in bad stability flow cash our strong of each year. free in delivery Our of good markets free last flow the and the quite both given generation X quarters

we of highlight cash in year gives generated For challenging cash example, items decades, a discipline to the tough favorable us another is reduce allocation in in and our to in million some remains our will our onetime savings housing. our the of quarters XXXX, counterbalance about sheet. expect flow capital million and excluding and for as second $XXX we in Overall, years. management items, priority. This free yet and X optimizing housing approximately for be strategic help and capital, respectively, free quarter $XXX committed program Anywhere's continue flow, last differentiator XXXX costs results and and remain to top generation year any true managing before most of the flow, years efficiency, which driving cash future full We robust balance focus. invest cash XXXX our and to free tremendous flexibility those $XXX resilience a industry working onetime million debt,

As housing and success us the unique we navigate our current strength, growth. market, continued position for

call me for Let back to some turn closing remarks. the Ryan now

Ryan Schneider

uncertainty. market leading through and of housing team proud ongoing I'm the the delivering is industry and how the challenging Anywhere

industry the We company, and position, and continue networks. resilient transform brands most our franchise of to in agent services ancillary to including leveraging profitability, scaled with leadership, some market-leading the luxury best further seize this our iconic moment the

what future strategic value us growth, to agents, to shareholders. our your market the and agenda can franchisees our take and executing we to position for questions. our on that on are for control, note, will outperform utilizing competitive we With now and delivering advantages We deliver

Operator

of Bhonsle question line with comes the BTIG. Your Soham from first

Soham Bhonsle

Ryan, I guess, first one for you.

a more some of And website. One their inventory display night given that forward. peers the your managing you last picture could suggests on painted on noted intent thought be to that own going listings your tightly to commissions there your

change is in go or in any how as market industry? that then consumer looking in this, your And forward? the just highlight maybe share So agent view, way leverage other wondering, units, you're just largest which behavior we your I'm combined does to still the workflow

Ryan Schneider

what don't fully I'm could Can mean understand this? Maybe to sorry, you question. me again. the it by I you you give say

Soham Bhonsle

think So going tightly I just managed brokerages your by forward. going potentially displaying how commissions website just you consumer just and more for being either behavior I'm talking on about can change workflow inventory agent then think the and forward then

Ryan Schneider

because Well, look, and our or that's that competitors good thing displayed there ecosystem. push website in on a it world on just our years and website tend to lot the we're the on their doing I there displaying And to shares of franchisees out to displayed ago stuff commissions the their even so think in done, it display constituents keep by and website, people we've which want publicly, information was for a a going that X X it.

market-leading pretty have now, Look, there easy. inventory but out pretty that's a So right tough is position. we

one are the is. options our their customers gets continue inventory. think and do MLS agent, the that's we'll then scale do and as who evolves. companies serving good for we changes. industry I to good job TBDs about job And the think display future. MLSs use I of MLSs If other us we talked question how complexity a what may of serving may customers, don't ecosystem then of in have just see how the is your is like But the rule a I that the is play really their all the

the is XXX have change there because an most. position. love we rules we're by MLSs it look, if will thing beneficiary You moment play advantaged managed brands our far industry, the how point, our be To is of which in But different have out. our and writing to interesting our in X at inventory going a the across #X be your to networks, watch we

look, than the So bit people, about we've a I I being whether we're this evolves, our a scale. do of approach of ball, no franchisees or but have to success what happens record little of better and litigation we're more now most crystal how our the we differential thoughtful terms with position and think a and the don't it's in advantaged got there market be doing in matter position what our how to the inventory going to with agents track

future which asset we great the too topic, early winning it's out. MLSs no and to plays want, up that have but is how So that But the in wound it what's most would of it's the the you the way a approach. say scale, matter is

Soham Bhonsle

Charlotte, walked just on moving there, this few year the half we should parts here? in how higher be was then it quarters And other the the And parts split any the there. but last and back than it moving through of just you quarter, give us so thinking about

Charlotte Simonelli

Yes.

the expect then in the add in what saw, we thing we had what to experienced of phenomenon while. expect us agent year in to assuming look mix the a This that that's delivery like is quarter. a with full over the quarter those we And with the been QX. think we the all you to results when I similar geography look and continue, that the we we some things saw luxury in full year

Operator

of Your Paolone next with question Anthony from JPMorgan. comes line the

Anthony Paolone

other how examples of the us a approaching around to agreements. an brackets the be what what house you shown guys appreciate where give you you an versus that So agreement just I Maybe and looks buyer gave? wants are some of the perhaps can buyer like Ryan, the example

Ryan Schneider

And happens time. all versions that go X. one tons I'll there's just of all but of these, you through the give I'll again, Sure. thing

their idea see down a Somebody and to neighborhood lends no future. some where to showing see to but just life has they're in going their itself agreement. That flies a houses wants Florida with probably

like into get compensation have don't all the stuff to that. and You

going the home. just show look, agree, you I'm You to

homes comes requirements So of it a that that but and But people agreement, People the world a touring lot. call agreements, do flexible people neighborhoods show can works how people today. mandatory it. time and an we'll you the easy, way what it. kind and gives the of of all see using just that's meets see to We the

I'm the customer. home but with seller know I a on I go want if that the thing home. offer is, bid about And a can actually the I let's that to Second bidding specific after. compensation go you're contract home. you is hey, what also given this of home, you on nice agent, is compensation, negotiate being on the know

kind just be you hey, to write third And buyer So a long can know the It's your and way. then the more on going that home. I a you're want I the probably journey. into is little agreement boom, of,

think like agreement an idea also cases, into people take these a is, start me the that to little stuff out. one flexible probably the it and I to nuances don't one and and you think point cover do want agreements it you when all that But to and get stuff to this like apply there's to that's got I works, crossing Let's or we don't be bunch more XXX that's journey. agreement of probably on going to for And that and just days it. a flexibility simple has

just at someone them, But how a a of great. approach, we'll one. different learn that's this to to agreements agreements And we're and if homes types or others agreements. we want better So think from there's put that actually taking If be our does looking lends home other buying people approach it to use itself flexibility enough in difference simplicity public. people

Anthony Paolone

as some there? need point in actually sense there paid what's on to be what does agreement At dollars to

Ryan Schneider

negotiable. is everything Well,

So to customers a showing including on you agreement longer-term one want to you works recommend of look compensation do get boom, us, negotiate. as tour the agreement an in can in I customer be you and bid somebody to of want a, longer-term one, if know is I whatever if show or think comp, agreement, relationship a absolutely, what time single be can don't neighborhood you do just offers on there. can just plus then the if to accomplish home. today, lot know with again, into homes you want you they giving want then But way you're the like put to and when a if into a And seller you how want. I for here, compensation the the for agents But agents here's a it world home, in up said, offer or you're you that to and to what you side, compensation, that on seller put go opposed do And anything the your on your have but you I to come trying form. will easier, is else

Anthony Paolone

August, pipeline any what follow-up looks sort like? then is, color around and And of July the what just my

Ryan Schneider

July So got through I data the XX.

I later. real that. about things. the trends through are same. the accurate of A it's got the couple So haven't Look,

thing down days at than we more units and are watch year, If one got market, is has business to Tony. out for prices you are the look up. X The last July all

don't for quite actually price if adjust looks Units strong. that, So people up July up meaningfully. and

still the business for X up. adjust trend days, in still you see you If a price but this of units, is struggle

but the but the units So are weakness continuing is numbers July. price real in are and up up price unit numbers headline up,

market So the trends the that very similar in we saw QX. in to

Operator

question Bouley Barclays. Matthew from the line Next with comes of

Matthew Bouley

happening basis the to then between Is of mentioned basis on the the headwind sense the that points side the trying rates in mix on point so was those the priced X and what kind to brokerage the get you rates, good difference First, a transactions? with X higher commission core reduction about think franchise with way the side. on two, commission of industry. Obviously, a what's

see on a transactions basis. more to occurring or by side at starting of sort Are tell like-for-like you If could side? commissions lower you sell

Ryan Schneider

bigger big we don't a luxury change but and was skew you the of of the ABCR a heard in high skews seller the heck Look, in especially advisers any in the hence, bit more see We little more is difference between was lot our at did But and in numbers, at What luxury. it ABCR, unrepresented data, advisors compensation. advisers brands. brands effect of look businesses we luxury of change the buyers. offers the luxury don't see it end when was than we effect. does even both luxury, advisors affected And bigger and any see on success,

Charlotte Simonelli

of year actually But about prior book business what keep year, was mind our comparator. up. Again, our in I said last ABCR

look X our in years excluding you we what luxury business, pretty if ago, consistent so with versus And effect. then, this saw it's

Matthew Bouley

there's with of secondly, perspective, the night limits competitor you your how players. around of Just are bit Is be the some And you around consolidation settlement that whether that. balance From going NAR bigger towards the broader targets process, any Anywhere's forward? talk either sheet and M&A M&A, or how your now about about these it that thinking M&A? with fair may in last there plays on the think where a into be how thoughts

Ryan Schneider

Look, been Yes. public. I've

consolidation inevitable. I think is

to the benefit it's I settlements. one On little a from that. settlement it's bigger work a think people Nestle the easier And dimension, on players probably. have side started because include little out easier

But about is there a price. thing inevitable. margin. other, on And is But need us one question is for it's the uncertainty of incredibly you the are we to we here. think there's industry big lot focused On if remember everybody

got to about let's the that. has show going just And deal a for be sides. not growth, deal do good both bad blunt to So be we're to

it's just at pro is part we're a so our We not think gig. sake for deals we'll deal's that. inevitable, We consolidation M&A. And but good be got of is and of beneficiary think to doing prices be

not got the good with line. So tons of top but that's, not what deal things, better be is we'll any liquidity go be but restrictions. right a for the me again, growing the just deal. creating good And line, a deal, value the top some the I it's have we're to And line. and we're bottom got I've happens, we've ready of got is got than don't for more We we anybody guess. see it. tons liquidity. probably And to liquidity for my

Operator

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

Thomas Mcjoynt-Griffith

the just the own to getting for whether you your and for mandatory. been make of programs into not they're practice about is thinking broker Can changes, just then agents, base about business you that they've force with compliant to training these agent shape on as house the be the your or upcoming your talk to owners And the sure monitor changes? whether, going process new

Ryan Schneider

of a Well, couple things.

agents, whether Our critical to on to a security fair we here very housing take supervise is thing or data else. and and our we're we help apply or anything duty And it's it everything. support to and our seriously, agents it

We going just when can is are Sue pumped rolled learning us man. ton where already out, from others. made And a where people even a learning got we're certain place. to And are like nationwide our training place way, another weekly rollout, stuff of from MLSs that on buyer each on that I of others nationally. of by is the from because better have think, and relative basis changes have good there markets, the being are agreements franchisees, this we farther been where, in are So some have working parts already responsibilities others. the about There market we longer. our in the We our already network. course, and thoughts, stories share getting of know. think said, we're making we hear cetera, We're There we I, with we're there. I public et that a of great want our in going communication. to saw especially be it agents, we've we're again, stewards spot, part on But been of ahead, little a

about we're to getting like doing agents excited things really not a their brokers. our so they're from telling some because to they we're our we're Heck, invite need training it. what on this stuff And friend of

these and industry we'll head everybody. to anywhere half So they're August, And to one of public. series totally both that's will going opportunity also and stuff the of again, coming this we're open second in but to a the be take recruiting our voice It do better. stuff, making on another then for

than be leadership even So have anywheres we position we to got else I lot everything great. recruiting of and from our get here. others a a a in And chance better feel some potentially and think folks

Thomas Mcjoynt-Griffith

search And just your dependence starting that? of and that last websites has portals past home much process, seen changed the advertising change through or prospective has agents when the year, which own about process the on over contact other year versus much the the their homebuyers traffic a thinking find on over Have generating methods. you

Ryan Schneider

agents people don't most their online. find But No.

are, no, it's Most find that. be for companies. or referral. the online people in will have as through leads really clear rates incredibly that. a portals low But conversion change it That's seen they as a about whether not Let's for other are why trusted we on

Operator

of comes next Your Campbell the question John Stephens. line with from

John Campbell

standpoint, brands market. well growth price out the as a of and advisors obviously, From

You called bit questions. you've that guys seems a the out also to back heavy That in Western X But bounced the luxury well. exposure more I quarter have know good region. as strength. got higher-priced like the

secondly, the have First, influence? dynamic overall can the can similar you biggest you then a growth? which price you ahead, components, unpack maybe do market strength where And like expect price X those one just relative you to looking feel outpace the across

Ryan Schneider

Yes.

price saw what New Florida had price literally, of also. with we even XX states really talked growth, said, had in double-digit our book, Carolina North California, did I in Southeast. saw like the you price But lot Massachusetts, saw a Jersey, strong double-digit We it growth. we about. So growth Georgia,

up your happening price question? of show lot second Can thing demand a on the saw think you a we I there's clearly part there that And So out repeat that. does supply of side. the

John Campbell

expect like Do feel positioned here? you market to a ahead, the looking you're you similar kind if of dynamic. outpace from Just

Ryan Schneider

Yes.

demand Just thing. the and because of supply

price stronger have rather would units I again, and Now less growth.

healthier have talked driving it'd of more the getting driving the into well there the both for the of about. et some we're thing geographic from and benefit homes, market cetera. some that think we as strength and SKU get a But in the success then I people as got, luxury we've our luxury the be and you geographic success there

in And we're meaningfully the so of thing, days XX are the to pressure, in some pretty again, July. I July, Tony's the our but said for days, same seeing first like unit up prices question, business

these get global differentiating agents international then luxury what Banker and think that. we're that are the will and so Coldwell I And you it So they're we're how these And corporate realty on crushing doing. trends doing and continue.

John Campbell

cost And then some on if of the saves, additional much the of could target maybe the what's give where sourcing you $XX end then you to flavor us savings cost your and how from? million on if is And Charlotte, you could talk those capture to remind you're of reduction multiyear expect that or in by year?

Charlotte Simonelli

Yes.

Ryan it So I think talked the transformation to where lends are savings what our in from? the of business. about coming

how forward, go we we're we looking operate. As transform literally to

more this about so is journey. And our advancing

I developments in using exciting generative AI. think some of the it's

And so forward to and just basically, drive agenda the the trying extra us pull $XX faster. million is

a you as we lot think driving the just year, on at and moving increased cost agility target our too, I that savings. saw last we're speed little where a went more year of because with the

our which relative majority there. business, better integration, same faster, in always the the that the it of because the hit going does speaking because it's is it's to to in he's about a hit line better for And title the costs items are expect exciting it's it's costs can it's to and sit that you going brokerage agent. the it's it's if But So quality business. the product, where where

excited about it. really we're So

can million we've $XXX over as see it's, far greater. on As the years. multiyear a delivered or And average, what past several journey, you

we prospective And and as it so last of the can. pushing itself. we're in the X years years. like for couple track a for target being And worst next our market housing But record speaks X given haven't I we think decades, years hard as

quality do while the our softer, deliver drive of actually using at expense the business. faster. we're actually it not and to going to that time so But is service have we stuff this Now market to we're

Operator

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

Ryan McKeveny

Ryan, I little transactions. a the unit wanted to in on drill

out Corcoran and Sotheby's. but down about the called year-over-year, So in X% you growth

less X%, about I in place I not, dynamics or geographies wondering, if side there to like opportunities guess luxury And So you the of the that mostly brands guess, business that when I down than the scale. strategies potentially of guess within I'm you we point non-luxury be that might growth just of more just have would the the on pieces the those brands some are price exposure? to underperforming think are reinvigorate or the attribute

Ryan Schneider

in our units, area. et market, at But of our of cetera. market $XXX,XXX of more I bluntly brands business, XX other like in for average for brands franchise has others. luxury is terms in in that of to the and the of out And Yes. speak It's challenges awesome the you the businesses market price a great and and point question, anchored CENTURY the ERA terms and Ryan. the in that's driver publicly part inventory, some is love put themselves, mass that mean look people the market thing. look, the biggest our that they're if price some they obviously But of biggest which area. doing our mass of our in And $XXX,XXX terms we is in play point more luxury data kind listings,

numbers. that relationships. are lower participants plays points kind venture franchise Those do quarter, economics that it brands some lags because upward of market title And market segment of our includes the dynamics their all the that's about, deepen our are joint new and in helping then ones talked and drive our every the brands. grow out I those we're at play that some one talked we can price there, our thing. subject of we And to so the just portfolio brands those franchisees excited and with about. big companies play added And to of economics of our in whole I obviously grow to actually and overall to think that anything the of you But like effect, and

mass a market show but pure anyone for market in of playing up a the headwind love does all competition that right of And a us tailwind the book. bit frankly, but though a bit is so our is, we that is there we and mix dynamic in now for them, area, even in are of on outperforming luxury on it that luxury

Ryan McKeveny

you instead that? meaningfully a there consumer to a to just seeing you bigger bigger is mix curious, quarter, single-family continue? and or to is of to demand because is companies a like some SFR repositioning homes consumers. another as more selling partnering that And looking single-family time? then macro owner incremental guess exit up trend it with like a thing this a more picture, of or qualitative things there's Last actually you of Or kind sense that's And not is rental sense are mentioned companies just that, your one. SFR rental where investors directly your sell much is I at buyer portfolios

Ryan Schneider

Yes.

So I don't pretend them. to speak for

ask but should them, obviously, couple things. You me tell let you of a

partnering Friday I of with for last Monday met leads with for it prospect or off, SFR because way another was relatively we first relationships last have that week, them us. I some generate week SFR It continuing. in but we buyers. And it's great it are CEO, week. was recently. of this transactions was mean, So it's more help generate us a like to more for sellers us,

that. I think most is continue into the of business. to look happening not anybody actually what's we exiting Look, So

it's to work, can the off I sense why margins. their from And be home, our selling someone good be they've that to that partner. with to for to homes like a title to it's good trim meaningful going how that trimming like it we niche it. to as than going partnering strategically, from them of is to that's direct but to they're a really outflow selling the of I blocks a I They're numbers don't in continually sell to do and them sellers. area is up again, and a so few with. continue talking the add around is scaled brokerage we and of we but But job price example, be the business. to buyers But points them for them to think transactions get us realizing it got help better a That portfolio still And of multiple with to want exiting the we and other different to services, integrated SFR model. can our for not they've them title like But more ancillary buyers, think today's and us, number just speak they're anybody That's a see I it. shifted consumers. do for that at the inflow

Operator

next from line Your Paolone comes Anthony of the question with JPMorgan.

Anthony Paolone

as got just to the trying I can quarter? there. year-ago and quarter you thing was for what Charlotte. sense maybe in Hopefully, give X for One, maybe revenues us Just follow-ups to understand a quick realo the what same were drag the

Charlotte Simonelli

Yes.

because pretty was In volumes. So of revenue. there the first the prior segment, was and down still in Realo year material comparator still quarter, reported higher decline the quarter, it you total piece the at in the Brands strong, was were current a if look

it we that's So out. why called

is but news definitely on drag the we're starting stabilization quarter. it to a business, the of good little that I was in see think a bit

Anthony Paolone

And full second year? CapEx forecast then one, any just the for for

Charlotte Simonelli

be Yes. judicious to We've tried with super cash. our

shift of we of these little a We're more last we we last in trimmed similar to the can spent year. with I spent more some what think a it last you year. side, how what transformation-type line year. Hopefully, projects, to it's see on probably tech

Operator

concludes all disconnect. today's Thank may gentlemen, now conference. Ladies this and and you you for joining,

Anywhere Real Estate (HOUS) 1 Aug 242024 Q2 Earnings call transcript