Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to the RE/MAX Holdings Fourth Quarter 2022 Earnings Conference Call and Webcast. My name is Audra, and I will be facilitating the audio portion of today's call.

At this time, I'd like to turn the call over to Andy Schulz, Senior Vice President of Investor Relations. Mr. Schulz?

Andy Schulz

operator. you, Thank and full everyone, RE/MAX fourth Holdings' Good XXXX welcome earnings and year conference quarter morning, to call. the the Please visit earnings-related webcast today. access all www.remaxholdings.com of the and live the Investor materials, Relations and section replay call of for to

through are please webcast, to participating will move through note as the slides If we you the need the you that advance presentation.

prepared may to your today's call contain Turning statements. answers to questions the Slide remarks and X, forward-looking our on

measures share financial outlook, to market and agent and count, competition, Forward-looking housing brand operational statements include technology, sales, expansion, those related conditions, franchise capital repurchases, plans, and and mortgage models. allocation, business dividends, strategic

estimates. update statements statements in management's current no assumes future. any RE/MAX Forward-looking forward-looking to obligation the represent Holdings

risks results forward-looking fourth cause filings. and uncertainties address release statements in are results Forward-looking that press to projected other in materially and to actual from statements. those These XXXX financial our discussed SEC matters that quarter subject differ may are

call. measures press release, Also, we in results recent financial will available today's measures quarterly non-GAAP reconciliations our refer the non-GAAP most contained which to on and of definitions our Please website. on certain is see

and of Karri Ward Joining call Chief Presidents Officer; Steve Financial today Callahan, Morrison. our CEOs the Officer; our Joyce, me Executive and brands, Nick Chief and our are our on Bailey

like the that, Holdings' call turn Joyce. to Steve? With CEO, I'd over to Steve RE/MAX

Steve Joyce

thanks for our joining and call everyone Andy to you, Thank today.

during while display franchise of three, the diversified The Looking the this quarter, on of decade. showed more industry resilience contraction. was full fourth seen strength at Slide model in headwinds a market period than our great business strongest facing during we've our

by in existing face basis, nearly decline of the small a US year-over-year relatively XX%, our under On in QX a XX% revenue sales. home fell a amount

revenue million, in housing impact health recurring US as was both growing Some and notable only Canada. total the model compared to RE/MAX softening year, markets revenue from business counterbalanced quarterly highlights down the our last X.X% $XX.X of and Holdings' our included mortgage the

a an and We of was healthy XX.X%. $XX.X EBITDA margin generated million EBITDA adjusted our adjusted

was and repurchased more agent modestly office to Overall, EPS grow our by open the Mortgage adjusted million presence stock and quarter. quarter. $X.XX. Motto accelerated the RE/MAX agents our Our XXX,XXX as We agents added X,XXX worldwide than over X.X during shares count to continued count a buyback we to during grew program our

see housing market control. highly in decline the we unusual, headwinds during the expect enter as can company has optimism One rapid distinguishing was over the selling five we spring what The the also past of decades and and thing QX cause activity to learned persist, we is cannot although for we season. between importance

years the macroeconomic the and industry, them in focused of experience, XX five to any control need and and cannot two decades We right they our them, of that now for we on our to by telling can supporting environment. reaction the technology highlighted thrive growth, tools, training consecutive control stay is impact to networks but with swings prepare us our

for us execute reinvest brands growth positioning the our in continue to and growth profitable strategic We initiatives, our in on future.

to I'll that, Nick. turn it over With

Nick Bailey

Thank you, Steve.

is this four, are an Slide year for to XX celebrating Turning RE/MAX years. as we exciting

proven any territories offices in to decades, to market, sell than past the and XXX,XXX grown year. in virtually five of the has nine our over present people regardless because and and more model and countries houses than network economic XXX successful environment, agents Over this be more every X,XXX buy in are has

on in RE/MAX true the for experienced RE/MAX advantages agents, we more which the It's most combination has lifetimes. that succeed. provide, most and the real the are all consumers is professionals than help to education, With tools, home, who the marketing, model. is the that the the network built the productive, estate resources of best economic an model, and sell or want to the these investment buy most choice a biggest people's

almost X,XXX to in has be there year. initiatives, been joined thrilled Nearly of both The estate the Canada with growth agents world we in of agents net had join that contraction agents real our of throughout of rest in and RE/MAX the we the US, XXXX. our over Although thousands strategic and XX,XXX continuation combined type US this XX,XXX in XXXX. recent prospects market, are agent the will the in overall activity, count last key

capitalizing market our showing optimistic momentum of agent such success, Those initiatives are changes will this conversions and count early we're help around strengthen year. and and programs signs innovation, of the the on built as and brokerages. and our acquisitions we We're teams driving mergers that

it's In note a marketing of plant. XXX% is structure to revenue. recurring This our addition, important the

we to invest dictate market the fluctuations we're greater continue So think of advertising a in marketing competitors. our at to able than level and much many for

who the buyers Demand network. the been As strong, are game. housing we back year, the throughout there's and confidence sidelines, remains for also start into have jumping on the great

optimistic experience, for we're are things are RE/MAX do. an will and what three So in market agents agent; in all leaders to spring these Consumers trust, looking categories. of the see knowledge and

twice States. most been experience of United other they in Our and professional agents agents most have the designations US hold the the trusted and one and number Canada. average US in the voted They production

shows years less like our RE/MAX more more ahead. celebrating from agents the In countries, confidence draw than RX X,XXX to optimism our will the RX making believe first-hand of we'll We event, weeks, it have XX than XX two market the and highest two almost be attendees largest the attendance the in than it and engagement Convention. this at annual decades

my it's best a was great making the agents When agents great and in a not the for simply rebound, any and industry. more we agents crash, founded will in without points, market both and What sellers if although a responses, overall and did can't principle putting position, is market. without positive a even good and have attracting we on certainly not RE/MAX rebalance, experiencing crash. have of rebound we're pain the succeed rebalance the virtually a asked buyers

think. not rates, headlines, that marriage, all five but inflation, and personal its is kids, divorce, seen the the It's needs people; market be jobs, market about, what estate that's life the decades. but or people the on that about timing and timing, for for XXXX we've events is timing economy the what will based timing real about market not the The drive

world-class announced most the key It's We their providing maximize will in AI adopt an valuable with partnership industry get presentation, to that will launched agents impact the full a powered and MAX/Tech larger of moving agent agent, tech, be estate automation, of two but who products also we kvCORE. believe technology marketing and last a Technology part won't doesn't to a the much and transaction. and will replaced items real the an agent importantly, is continue by their replace and year forward. more suite lead generation, way

in this tech there to January, Canada started already is Rollout than in the report are seen something because have onboarded late the earlier to over last which two the of of we and agents pleased first success, and and with that XX% launch US anticipated months rollout. week was rarely accelerated year we

A significant competitive is our advantage scale.

no and thousands the win products Canada dollars teams significant of additional retail offer value On in suite major of agents our cost enhancement and and market, is and annually can this charge, at US a to can proposition. to this we the which a agents tech

the believe our changing a Now to must done this. adapt gaps. dynamic we for bright market quickly, the is this the especially Real XX as years. just and in in adapt I you and shifts win, continue as outlook provide is we've these market 'XX gaps to ahead, like business narrow we estate right is for means look industry, to solve and the tools which

to Ward, you. over

Ward Morrison

Nick. Thank

marketing events sluggish Looking believe at we model due while attendance long as overall the That we had Slide current business recent for memory, January, among remain we quarter, as franchisees growth and best term, environment. offices prospects ever. in our held macro has experienced we've the were said, in solid potential to the bright and the fourth our five, two open during been

mortgage hit RE/MAX, they're franchise the housing we in while like hard a interest chill put which feds industry inflation turn by by to raising modest particularly The market and the interest on cool has believe rates in us last been industry rates, moves year. has franchise better immune. insulates broader from rise correlation our sales of the in gyrations most, totally We've not slowdown seen than model and the a between QX in tight

the franchise Importantly, years. pace. XX our sold over last but at We business number open The and very of offices office XX ever XXXX the year, pace the off is during Motto opened. past end growth the our is we number helped regarding climate, but offices experienced a in year in Motto have sales XX more terms as unit accelerate This the still pipeline. unit our today's rate with respectable model year in of sales best sales the few over XXX in news continue, QX of slower better with openings

QX. be opportunities. one RE/MAX we We and expect a revenue sales should by demand inflation has been our mortgage more capacity we retreats office at for up business XX we the to and and the normal region. by up within numerous why this in annual return Motto sets mortgage to on us as to of office a franchise improving matter meaningful growth months and and as company-owned capitalize year believe amount the We to in our this our of roughly see to song Each is Motto teams, cadence sales sales that our on remain rates to agent in continue positions stabilize. us end the full aim focused than opened invest ramping bring same It a of is

and as We believe team also offer. who long-term proposition is unique Wemlo mortgage due from the join successful over and recently development as potential to growth, to our of VP added of We to Franchise long-time Motto business Development. compelling value come regional Growth success our [indiscernible] and RE/MAX's the and colleague Motto a

provide is with earnings, key conditions. of the Motto were and proximity Ancillary success Over and their revenue for to real of to close market real is our and XX% very during important to transactions, the the estate purchase that that attractive entrepreneurs real opportunities estate sales origination shifting diversify franchisees. professionals mainly services mortgage estate many like something

to to expect continue future we our our grow, as Looking and business mortgage sales ahead, reaccelerate great, to our conditions and approved. is

I'd turn like that, Karri. the to to call over With

Karri Callahan

morning, you, everyone. Thank Ward. Good

revenue fourth Moving to declined Slide $XX.X approximately million. to quarter X% six,

just of of shy X.X%. Excluding currency was was growth and marketing to last decrease This compared foreign the movements adverse organic driven period million, year. revenue X.X% a decrease by the negative of funds, $XX XX% same approximately

broker lower interest broker resulting Higher extension, decreased in affordability have growth fee adversely housing transactions weakened fee Organic impacted revenue. demand, rates largely to housing revenue. and fewer due lower and buyer

our comprised of of is of One revenue the that and financial annual streams, recurring which lessen from like primarily it market model the fees highlights is XXX% turbulent impact conditions. helps dues, franchise franchise continuing

and fund In growth excluding For XX% only marketing the example, revenue, marketing of QX, for excluding our fee X%. broker accounted recurring funds. revenue revenue about rate down almost organic was

Slide compensation, lower decreased bonus seven, expenses, Turning costs, primarily in administrative to as $XX selling, million operating well of to principally decreased expense, XX.X% lower and personnel expenses. as our equity-based the due form acquisition-related headcounts, QX lower to and reduced

restructuring, quarter that of primarily department we the the of a technology third completed Recall during RE/MAX substantially XXXX.

than a reasons, legal more expenses. quarter were of including expected SO&A expenses favorable handful fourth due to lower Our

expense our wind-down virtually business. Gadberry QX. the this Importantly, million into of we back in anticipate recorded the related front, still a to impairment reinvesting we the the savings all Also, $X.X Group on from goodwill restructuring

dividends, over $XX over of than to adjusted Slide returning shareholders million more during our accelerated Class just our XX% there our I shareholders. Throughout eight, A items our in to million modestly of Combined couple over to to XXXX, outlook, last are repurchase shares activity year, $XX we XXX,XXX free total, to million the get Moving want our before X.X briefly fourth repurchasing I quarter, returned with mention. was over buyback which flow. We we a cash shares.

XXXX. in remains capital top us shareholders to priority Returning a for

contraction we the term. in expect our down of given However, the industry, buyback the pace underway to within the slow near

earnings. Second, today's increasing I out impact environment want interest is to expected rate call to on our the to have

earlier first rising increase our expect point interest net of this Fed includes that by rates will we million quarter the XX to the QX expense $X.X $X.X raised year. approximately last announced the to That estimate Specifically, by million basis compared month. was interest

the guidance this our the environment and outlook annual CFO. divestitures. future seven Turning which to further account may in first acquisitions year assumes have seen movements, or guidance, uncertainty. quarter currency broadened have that to results no forecast help be challenging Consequently, we for ranges heightened to in I years most company's my as The XXXX full

expect a first $XX million from $XX.X increase to range of XXXX, X% marketing in quarter $XX to we a first million the of X% For a over range $XX.X including in XXXX, revenue count of funds to and in agent million. million, revenue million EBITDA of $XX.X adjusted the range quarter to to $XX.X million

expect $XX over range a year XXXX, funds in range X% $XX $XX.X adjusted full the agent million and to of the including of count $XXX to million, million revenue change to For from million. year negative in X% we million $XXX of full range a marketing XXXX, $XXX to revenue in a million to EBITDA

to for the call over turn Steve closing comments. Now I'll

Steve Joyce

Karri. Thanks,

future. our Looking at we continue Slide nine, invest meaningfully in to

and past to brands, strong global proven our success, we remain track in circumstances have financials, a optimistic of over record With we well, and so about We unmatched similar do believe a again. performed five scaled decades future. positioned and confident are and business, faced we the

operator, for that, let's With open it questions. up

Operator

[Operator Paolone at go instructions] first Anthony from to JPMorgan. question We'll our

Anthony Paolone

and you good morning. Thank

and about First, for X% flattish excluding marketing I 'XX your guess agent that's revenue count. on on expectations down

is just understand maybe of fees bit biggest what order on you're may the help and where broker impact down better think on continuing be maybe thinking the you a us can fees? to So or just magnitude, not be franchise may draw you going

Steve Joyce

fourth as we let quarter showing are to built a year, of color at Yeah, XX% transaction so sort upside so and that in which look activity our the forecast Karri not of we in we I'll is the decline the continuation this, is year. but where some now, in put have to

the extent seeing believe, are things the that that to you we got. we've things improve, forecast significant reasons upside got So that if some we've and then will maybe to improve,

steady of this occurred deterioration point, what year. the at is a However, we're that last continuation seeing

And that And from we benefit at very if time, so we are view about. confident we same we then setting feel is, significantly uptick, any baseline number our a the get will we are in that color, broker me is let more give because the to let upside in impact bulk ourselves Karri fees, that The of opportunity. putting capture but you a Karri? position

Karri Callahan

Steve. thanks Sure,

right. is Steve Tony, So

I think the guide the down at three when into I on break I'd really line, it top look categories.

The first is fee. broker

kind about look of of home as across a the taken who the pragmatic next conservative look, Steve it's are and as XX% and down. parties we're for of So pretty X% when we've noted, existing we sales ranging collective kind end, third on down XX% between predicting year, Steve said, more

-- of For go things going and we'll obviously where this purposes forward. watch for here continue to

bucket second lines. really revenue on is the The recurring

we going a So of going year, the similar initiatives in a the just bit of there's and agent the less. half later saw little hold trajectories kind take to really to contribution that are perspective, what count flattish to the from but be assuming back year, in financial

we're that's some acquisitions. of a investments in to sure just and clear think note, $X be conversions, going a to terms that of that, teams, kind we're We making those across million that investment million year. that net mergers, $X headwind into that make on next And to want of

headwind kind then expecting last out to of be the down with is as our Also other million I that's bucket And million Gadberry call $X the [ph] the year as the would year. $X legacy business. well booj going wind to business in revenue of a over

Anthony Paolone

That's thanks. Okay, helpful. all

priorities, you down thinking is, also debt us as higher how given you mentioned dialing your give dividend 'XX think to Second relates versus forth? about for back a rates be sense the the and back CapEx you're to question buying stock. so paying on just it what and as capital might you Can

Steve Joyce

I'll so Yeah, start Karri. and me let let --

we so on is XX% priority, free capital our last So back the return key -- flow to number of -- cash shareholders. one number one, over of gave We our year. distributed

not are changing all. at model We from that

a and both the after where go exactly we where continue we to up, going simply We continue and to the going real and going, then we're dividend. the getting market's we're to to we are think looking aggressively at of, okay, pay sense stock where are know end

The in financial flow. a stable -- our very you absolute position, if with cash solid look and our a are dividend rock business and balance is at sheet we

So to soon that going come our is bend. will we market the bottom be as where view then as is as begin as to then aggressive we see and back, we've

are And we've significant priority, because so the business investing that back think one we but is our then we to upside that. got number in

So Karri, talk bit you want about to little CapEx? a

Karri Callahan

Sure, yeah.

shift probably the expect the million on CapEx is a down the to internally. coming point then on in do $XX and RE/MAX bit, consumer lot as in we the And a from lot excited side A really that we as is So as about we come the to And of we Steve's 'XX with that a and doing to to strategy a made, still of the so technology $X product things Winslow facing we're in range. continuing very reinvest that million well the technology the perspective invest that mortgage some of in side, to that think offerings about we're continue beyond. there. little -- little bit

Operator

to KBW. at go We'll McJoynt next Tommy

Tommy McJoynt

those. for to clarify my of guys. walking Karri, some good the were question. you categories Thanks of Hey, just and through one I taking headwinds the morning, there, three of want

teams some to of I think to I pilot of out the it million think $X for program. was $X million you called headwinds related

the impacting guys and then confirm if your on to program Just top and line. only that thoughts latest you team just us that that And applies. just give program want pilot it's that's bottom like could the

Karri Callahan

Sure.

$X seeing also the a is that? as little of program is to $X of majority of yeah, the a bit, I'll success But with, -- just it the we're Nick macro, you and here of some related Both we're programs. from our early coming pretty million those the team's want so happy lot million that to yeah, that mergers add majority that especially, let on conversions to is So on in and given and well. but jump Nick, early to

Nick Bailey

The still of initiative sure. new. It last announced team's was Yeah, year. is August

only added pilot have that more indications teams half we what as agents the more first to this indications and early into so come added halfway but However it we pilot, like that show that within and move have, more we the seeing is the of through we're early we've and year. so teams

Tommy McJoynt

thanks. talk second you somewhat is, the Great, And stretch your of housing just here franchisees? my can then about of question health tech a of little a bit been It's of obviously in terms some tough volumes. a

just you the if So health broadly, about could there. talk

Steve Joyce

in of for Yeah, are a everyone's of monitoring folks that so, news, we toughest are going top shape. combination the obviously good mind cash part flow how They the our it's collections them. so, news is good and monitor is of the through are net doing, consistently year

But of Nick pattern franchisees. of that financial come not in change as an any the of significant team And out health any spend that. and payment we his sure checking and time they in making we're seeing amount are know or of enormous

don't to you Karri know Nick, that? or want to So add I if

Nick Bailey

up it No, you Steve, I summed think well.

Operator

at go Morgan We'll Ronald to next Stanley. Kamdem

Ronald Kamdem

couple quick a just ones. Hey,

Cause through. about down XX% sentence, you just of for is to sense to Just I'm be I'm flow thinking get 'XX like through if about million for look the a I flow, of adjusted cash flow and at going trying how cash I trying the the get operating flow. sort that, operate 'XX $XX 'XX? million EBITDA in to EBITDA, going operating back cash to a I get adjusted to flow to like at is guys a the look guidance what helpful. are $XXX to

Karri Callahan

Sure. highlights and with Yeah, really we're model so economic of I favorable Ron that that position strength the times, the business think the even the in.

as year, pretty think 'XX. of points to XX% percentage a expense I expectations might so we look XX% full higher couple looks XXXX, conversion is reasonable bit a that rate that consistent, interest go look range to ahead in of to we down but just kind as And a because little is,

Steve Joyce

other if I margin. a depending upside, flow-through in, as high is that think is, the get keep part in mind upside at to on we that comes

Ronald Kamdem

we of I the of and question just, mortgage guys And it little sense just bit have think of a on more I of Great. million changing adjusted you what's that other that, XX a then and I'm to EBITDA, the driving from, that Just that sort $XXX I'm I'm can had go just talk Slide $X,XXX to revenues there? EBITDA, about negative that the think a at looking trying do trends over sort of million? you get as on, sort number? you How about model piece

Karri Callahan

Obviously interest mortgage pace be the think I we Ward rising franchise the that had our correlation as to a so something excited to of Yeah, business direct sales is noted. rates continue extremely about.

what it's margins lot bit out company XX RE/MAX the continuing of offices invest what for time, are We're us scale up But, on at note running, still a to in little that's those revenue profitability region. they're think side is coming think that dollar we on that so see with a in to we that the Winslow the put owned I A comparable over a marketing and it. get once on -- to look and are of side, pressure about the it's $XXX agents as Winslow important million we perspective. contributing And a funds. opportunity at from

which why there. invest think is segment offices, and once to the think can get profitability growth to to We continue on XXX and to investing so we that now. right we're position XXX across be continuing still the we that just bullish are get kind And still ourselves opportunity need model we'll through this we we to of that to headwind, open

Ronald Kamdem

Thanks for it helpful. That's Great. so me. much. That's

Operator

to John Stephens Inc. Campbell with Well, move next

John Campbell

a remarks. to comment want I off Nick with the one prepared So of of made maybe in start that kind

initiatives. agent mentioned strengthen, the word You new around base the the strengthening

clarify for that of or an you comment that. that out Is that maybe retention? better more could that productivity maybe growth? the Is about that So agents, I better all see Just expectation Is above? maybe wanted to curious if unpack there.

Nick Bailey

I Great to is the around overall Yeah, comment And at our hi the gain or you each world. then the RE/MAX, not joined of US, only growth. that but on those loss question. new areas. around look when of net number compared in in John. Canada, one agents that It

We in, think that when initiatives about franchisees the we're all we growth And that do investing the assisting look it on that. we that's all on is at how that and strengthening based rebalance the our growth is to the initiatives we're key in forward, that with market. that we started the investing moving and last even year of believe are we the

John Campbell

helpful. And that's yeah, go ahead. Okay, then,

Steve. Sorry

Steve Joyce

I've just got so think, optimism. important Yeah, its they're I've and The was only been US the and but pipe the meet relative platform is met this I component impact a because I add point just with expected feeling you of they're Nick here technology his an everybody, positive at attracting going then particularly folks. to of most gives that seen for -- and upside not room since the on positioning teams it's I've to the I it, to the and bringing building lot teams to that

environment lets us real current to are and we of going well things environment, we're do going when the it. the do they in positive just is a really make numbers. When the the So terms that overall think macro notwithstanding we're positioned difference turn to

John Campbell

of And franchisees. sense. about the the guys you makes Yeah, talked strength

general And back in of go different to looking. that's curious call. parts question path couple the could around, of the around that franchisees. then update how mentioned down renewals a Tommy's maybe I was you just if You've

whether health -- with in be a difference there's you. difference they a Obviously the your stay franchisees of and can there

how that about by franchise so? curious how has last that I'm macro sales pipeline, as on about rates retention or the well, year is over the curious looking then, impact So also been And the

Karri Callahan

John. a It's Sure. great question,

perspective. at the that seen RE/MAX renewals a least of side we deviation from on from perspective, at or As the numbers variability significant haven't house, we look

his have outstanding provide and and think Nick I done he really there as could an team more job well. color probably

Nick Bailey

prior to our look and the agreements we safe we're around say timeframe with that well renew franchise structured the that changes. pretty those renewals front and intent we Yeah, when at, way the in to expiration, renew are and of to XX%

event taken a is sales the happening and non-renewal a in market acquisitions initiative, in with bringing by thus what's there and for whatever conversions our we with where especially seen not surprise. last we've our team, change reason, And that And far and in experienced the mergers, or it's are that's what the year if there planning independent this to companies. drive which of and RE/MAX even you also on for nice great is a way be any rates. it's to depending year results us is if are companies or marrying, will And succession that type positive helps merger, really able just renewal marry, early

John Campbell

guys. that's great Thanks update. a Okay,

Operator

Ryan Associates. to & McKeveny go Zelman we'll Next of

Ryan McKeveny

I follow up Motto forward. I so the point but guess is with growth more leverage more becoming the Thank whereas core going like was so base sounds on morning. the good you revenue Motto, get helpful, expense a ramps Winslow, think economics gave detail franchise, of you. Hey, the of a very guess kind part of Karri, there. base it some of kind expense maybe ex about fixed is the that think that we reaching Winslow, where expense you if is I

would one. that part be So

or necessarily helpful. mortgage. Winslow is can so we'll if just very even you how either would generally then be much is or side the if segment specified, guess just contributing us level K, Winslow And can I specific you. share of more quantitatively economics part revenue I get of any qualitatively either or processed don't curious assume per on the I'm Winslow, the EBITDA think And, kind loan breakout thoughts just you to there but remind within the I Thank there two,

Karri Callahan

excited be continue Ryan. to And thanks mortgage opportunity. really like we said, about Sure, question. I the Great

better, what offices now over see do call and sales the over, better that leverage of on I we the business, on to have starting business flow open. franchise are Motto throughout kind just We XXX would legacy

really, we I together starting between are we proposition that, team the a Ward done and Motto nice to think So have of Winslow. holistically pulling really value the and see of but job some

a generally see little say, speaking, us of it's leverage. of So starting a for to little bit to bit we're but harder that I a kind little think bit more --

-- of provide of I'll detail gets to all breakout. additional the will the level that K, bit a kind filed, you Ward, in additional when over it little We turn talk will the but we about to segment

Ward Morrison

[ph] public Ryan, Yeah, discount some file open that whereas to economics, the XXX of [ph] Winslow which like on depending the XXX we level XXXX that basically, from general on within on about we a to it's a also sell basis. so of file state anywhere offer Motto directly is to

So really on a overall drive trying just right. to per it's processing basis, transaction growth loan

there renew. using is to last Motto, within to we with exception year FTD on the key changes that until made can't go mandate franchisees, one they back our our our start we our So they some existing ones service, new

done service our growth them. we'll This trying be more franchisees, of to to use hired we've making within somewhat thing Winslow. similar also system then Mottos of change one the some Winslow our year support is of we've and back into to to sell their that processors And margin drive a and trying is

team place that We loan everybody and and top line. there's particular a think we and the just we the a have growing pushing revenues count great else. in by of beyond. XXXX getting support in the keep to have just up It's upside lot getting to Mottos So entity process

Karri Callahan

information. website. did Ryan, actually the thing; in the of one one the post breakout to investor that's of We quickly just on it segment -- we Ryan, our posted thing include updated presentation other And other kind hey the did clarify,

of that see net investment segment X. revenue XX, in little the and of total So top terms the over line, then you a kind about can of

Steve Joyce

Yeah, Ryan, presentation. main on Ron why it's It referred deck, RE/MAX XX, slide the call. this the that Slide our it's its investor to earlier was morning, posted this

Operator

at And William to next, we'll Blair. Matthew move Filek

Matthew Filek

pushed and on I back kvCORE some the of my sometime how any color is rollout taking Thanks the rollout just agents Hey the road? questions. curious started, kvCORE [indiscernible] the everyone, is for more Filek on have progressing? sunset Could if but happening of down this on Steven. currently provide are Matt for on core many the agents leveraging know how you platform

Steve Joyce

a I in is actually I'll but you, Nick see has Nick? applause that have seen in franchising. XX applaud which that, our years rarely answer do program. And you I conferences, getting the Nick Yeah, let franchisees never lines tell technology selected will of one

Nick Bailey

a the XX,XXX That run. the and Well, agent we US, are thanks Steve. look January. now, Total phases started right around you, even obviously have in chunk a the between of agents But in onboarded. the Canada agents just first big we tell count said. XX,XXX in have US When that US onboarded. home the Well I Canada, though the is week four over will XX% we at we're rollout of it's started that.

anticipated end initially not we push was able two of until to the rollout months to That the at we begin it were are thrilled earlier. fact QX and that

[indiscernible] is sunset, pushback So, there it To on absolutely question is the applauding no. is it. the answer welcomed. your of are People

pushback that we any that you think the learn see is tech new to have something. that means fact I

up to sure came training are the and note And two resources seamless agent days One in success so, had a contract a system in have people them. investing never had under database hours, that a within that. but XX used and experience, early of that make I'll that within an stories went their we're put contacts never incredible the got and experienced XX that the listing pretty the

I one [ph] they yesterday convention at RE/MAX, KV four offering of be were for teams the now saving spending year $XX,XXX a One we'll with free. me of now that said, that we're thank is testimonials showing upcoming you our you're saw the the

going this to continue it's us out, give and positive continues roll -- to very get us a we believe retention to as recruiting be advantage. so big And very and

Matthew Filek

That's very helpful super and hear to as well. encouraging

more five ago, if I on that structure ramp one what adoption up had states, do like XXXX? and offered alternative then the over do course adoption another wanted correctly year? could question It of clarify current of think I recall Just adoption that over a little suppose you of you in I but program expect the the up just course came way, look to like? to that What's program think note. something. fee bit it's the for

Nick Bailey

is larger, of in five one agents have grow now teams. we Yeah, from ways to so that which and that in teams agents their of still August to are early. happen teams grow new I are recruiting from seen teams that mentioned, five we're seeing six we that two this It's also the have existing and states but it's to pilot a have incentive We anywhere that there announced not it's little in initiative. what only so

results are in positive seeing categories. We both

we're and numbers point outside on in this RE/MAX the of where data did wave encouraging saying the it going. any network that are of adopting absolutely and at it's because the But prepared applauding the will teams that launch August. to very us the of just looking is at, is type Not give future forecast I say larger

and to data very going shows to this direction. And more very, and numbers that better move through so the the year, have it's right the likely are franchisees share. in Still come supportive initial we'll early, as we

Matthew Filek

Thank Sounds great. you team.

Operator

no to are turn I'll conference any over this closing There questions time. Schulz remarks. for back further Andy the at

Andy Schulz

you, thanks conclude and event. weekend. for great This today's a call today. joining does Thank operator, the Have everyone to

Operator

conference does today's again, And call. that conclude

now may You disconnect.

RE/MAX (RMAX) 17 Feb 232022 Q4 Earnings call transcript