RMAX - Earnings call transcript Q3 2024

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Operator

Good morning, and welcome to the RE/MAX Holdings Third Quarter 2024 Earnings Conference Call and Webcast. My name is John, and I'll be facilitating the audio portion of today's call. At this time, I would like to turn the call over to Andy Schulz, Senior Vice President of Investor Relations. Mr. Schulz?

Andy Schulz

operator. you Thank and Earnings everyone, RE/MAX Third Holdings Good Call. welcome XXXX Conference Quarter morning, to Please Relations and the the including live visit Investor and call our earnings-related for webcast standard materials, today. all earnings replay presentation the to the section access of of www.remaxholdings.com

contain Our remarks may to on today's your prepared statements. questions answers call and forward-looking

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

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

results statements. address to projected are Forward-looking matters see website. to non-GAAP press measures are and These in press subject materially Also, that SEC uncertainties and non-GAAP from results in XXXX quarterly in financial our is financial on risks quarter will release, of those reconciliations certain our cause release and results third which call. Please forward-looking statements refer available to today's measures differ discussed most definitions recent on other actual that we our filings. contained may the

our our Chief Joining are me Callahan, Chief call Executive Karri Erik Financial on and Carlson, Officer; today our Officer.

Morrison turn call Erik? the over Our also here Holdings' Lessinger like to Erik Q&A. With Ward Amy Carlson. brand and leaders, for are to and I'd will join that, us CEO, RE/MAX

W. Carlson

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

directly affiliates Unfortunately, task lost probably our know of and the recent lives. and Before most us storms, activity. who their extraordinary discussing begun have of of a were is These and thousands start with few comments our performance, now hurricane one affected regarding we their the to the rebuilding quarterly brokers I them. impacted wanted of spouse tragically by someone were

and We communities. support rallied affiliates are way of to Networks the and proud Motto RE/MAX their their

stepping crisis, always what around of in world do is times up from the to doing team they help. Our

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financial Moving to generated our the quarter earnings; row. we in for better-than-forecasted a second performance

is core business encouraging running better day, team Our the uncertain margin to contributed strong and estate Both two an industries real which past their working our effort were working way that the and our each is mortgage quarters, through on has over trend. times.

experience. centered and So further but difference. Karri strong cost will cash we flow our management our ongoing the the was of believe we actions are during proof efforts get financial quarter, driven highlighted control, on our results details generation, third are remain making that what model strength again quarter business the financial of by also evident bring the to shortly, a can agents into in August we real strong by attention or brought our as professional it and leverage The because buying practice to business estate up the selling collections The was implemented industry for NAR role crucial XX improvement alongside quarter past the and brokers RE/MAX their ratio. changes to notable settlement. lead home total heightened

the thrive. of on business be education, nearly and and We, culture were in should about in. We immediately across a of what with a we so doing loudly leaned and alongside to can appears presence, of agents we practice and our many well-established And to proud our We're leaned along team real and homebuyers bring both and our focus be implemented. X,XXX that many For occasion after this sellers value professional agents are professionals this done to they've Having before. the advantages. to adapt handled the that are global in spoke network market, and case the RE/MAX, Skill were in the the productivity history is of consumers. way our essential significant the agents in RE/MAX home franchisees trusted offices are times to competitive changes RE/MAX true and chapter confident to and U.S. like participants full-time who estate. standard. market trusted the as gold most by is highly professionalism the the and would the rise simply also agents skilled local weeks initially

being NAR's One anticipated, As in landscape. pop cooperation will is that's the navigate currently debated new the policy. thing clear additional items industry we up as

RE/MAX view sellers and interest a Our the We We homes. to sellers that their practices straightforward. believe trust, deserve real fiduciary stand dreams. sellers in at the companies and help exposure over achieve possible support and deserve the who few possible Agents transparency alike listings their full of policies honoring best equal of prioritizing favor available transparency in and transactions. of homeownership on professionalism. responsibilities. Buyers We is audience the broadest benefit promote the and that matter estate to and are is in access serving buyers widest expense properties interests for for consumer their many. buyers

practices experience focused buyers will stay trusted in professionals customer as articulating there our remind every focused, be industry best result providing change. sellers to on continue each the and consistently may and value their discussions further industry day. the As that moves We and to affiliates forward, around their

industry. when may but many was top at result beginning line. rewarding to be that growth that, in be softer see in up October's significant comes growing there's cut agent share We this a us rates pointed mortgage in is in this trends still quarter We're the especially the all it near-term. in our and rise Look, better housing the financial It that. agent trends some month's the by XX demand level right much event out, efficiency in results Another done, appears is Improving although to making bottoming welcomed count, show for we're may Federal there's our Reserve. drive point work past Despite basis optimistic negative to the macro optimism last performance. overall, was direction. Granted, XXXX. count more the essential to moves have to to it by

major stabilization remains and agent growth objective. a So

our side, X% international count positive third year's we rise the QX. nearly On to last continue saw over increasing agent in the quarter,

In fact, agents Canada over was XX of and a XX,XXX our the September total outside U.S. record.

continues programs performers Brazil to have notable professional extremely agents than their we more Argentina. Successful totaled be the place record. In XXXX, in include far September a operate in RE/MAX other of agents also progress. brand. XX,XXX recruiting, aided In this and XX, their competitive training So choose retention almost Canada, and business as to market, any

a is reverse to factor. Now we But we is providing improve focusing stem performance. One significant way in the ultimately customer know upon widely advance by we can what we U.S., and here need we agent being reported attrition can. to is our this control on experience aim industry-wide real and best to trend the

example, For in partnership. August, MAX/Tech announced of Broker our Conference our expansion we an powered annual Owner at by BoldTrail

tools, agents to tools office, augment benefiting to a AI-driven aiming addition creating user In features the increasing brokers. This and and RE/MAX and recruiting productivity, top a mindset, got superior workflow and to moving a agent-focused between our working front a expansion direction. operations, interface, consumer state-of-the-art customer facilitate right deliver in agent aids platform both back-office activities, business growth alignment enhance help connectivity and functionality, actionable experience. are brokerage we insights process get and the the general, We've agent line streamline in

which to other combination. innovate. To ways also will That's can from growth certainly also While help, that enhance powerful initiatives better identified we've exploring we're our to customer results revenue. experience, additional a drive opportunities the end,

referrals. aids into in is still trust inquiry, It For and of which dot selling greater remax.ca. com capability vetted, MAX/Tech remax.com see across than We're assets contact Concierge. It's this with to and very dot to enabled improve only supported to With the conversation-ready they and lead maintaining with leads a into leads example, over evolving are consumer have soon program, signs websites, ca. brand. Research home RE/MAX program, makes investments people, a speed Lead and aligns remax.com expectation that within ads early capability agents will of that been X not turned our that is One exciting buying in minutes of Concierge early, also people and opted minutes that the a quarter launch the assets we XXXx Lead contact underappreciated from These chances of majority last seeing if within remax.ca. We've in display XX. remax.com mentioned the websites set optional on. experience. have conversation-ready have also and past of new our this on It's the investments qualified a take show real an program in leads made functionality so It's appear real the delivers year to Thousands of we're optimizing and difference. allows connecting portfolio. the the leads sent but hold customer but suggests convert. their initial RE/MAX making appear the consumer of success Concierge, rather and purposeful interested

leading digital assets strong and the relatively an market and have as high-reward opportunity. we iconic of our websites, view Given the franchisor share low-risk, brand, our monetization innovative we

tough as terminated slowed time time their the for franchise transaction declining September, sales submissions. elevated the or Mortgage to have sales have rates activity not effects Now show open was as results September be loan a in being position, it due our spot, recent to Motto existing few Similarly, mortgage Despite rates bright and connected of the the business, Motto made real recent best transaction. far during in since feeling our a of the is of have We're the of enjoyed to the estate franchises ever this wemlo its month financial year franchise number that business. mortgage looking offices XXXX. March matter. at do of month best first lack so continued slightly

macro we seen that Motto the the While soon. has to do count changes, increase economy growing be year able of start during past we'll again office believe as those some open terminations

new with pointing up by continue our steady most comments mindset believe aside with effectively that as efficiently affected to with associated having end out about interest running program that, future. With the growth I'll that optimistic the headed our turn best right and but direction our impact agent We make by onetime about of Now our and our absolute future and year rates, products to about our the innovative importantly, we as agent count and experience experience customer improving global my customer over the as growing progress Lead the starting I'll possible. Setting at assets. Karri. the very through momentum optimism our and we the business digital well-positioned about supporting to it initiatives, to believe including in we're monetize delivering the wrap Concierge increasing possible, networks, providing to trajectory hurricanes, technology enhanced we're networks we're

Karri Callahan

morning, solid expanding Good strong everyone. cash generated and another effective Erik. flow by management you, highlighted quarter, cost robust had Thank alongside collections, free We which margins.

of metrics XXXX EBITDA diluted of QX X% Some margin notable $XX.X of adjusted our $XX.X points XX.X%, revenue of last the adjusted financial of million, of included year, basis EBITDA up quarterly XXX quarter EPS of an $X.XX. and million, adjusted total increase over of third over

our broker due a the agent The organic count. The broker closer than offset to was principally excluding X.X% which movements in in partially extent, adverse the and Negative fee reduced by see a U.S., revenue was lesser million, revenues of period negative X.X%. to marketing organic increased driven U.S. practice from X% increase by and productivity compared at last previous primarily by collectively decrease U.S. currency same year, agent prices of in reduced to great strength to impact revenue. the Looking the highlighted higher sales current despite industry of the from driven offset changes. higher funds, agent of slightly environment revenue, foreign count fee just recent revenue productivity more acquisitions, growth the was and was in lower the and growth $XX.X uptick network

year-over-year news $X.X encouraging we as expected. is eliminations bad decreased expenses a evidenced and positive under million. of QX in in our million across were and the perspective, highlighted continued this reductions elsewhere is good contributed third results. in The reductions, And function selling, nature legal XX.X% technology of XXXX. by and or a expenses and an From personnel improve, TLR, The lower allocation cost structure to Collections the Ratio, also patient. and expenses. Like and $XX.X decrease X.X:X remain quarter, RE/MAX of were to on across broad-based other principally efficiencies a Lower personnel decreased operating our company announced is or all which Importantly, Total expenses now capital legal quarter's miscellaneous debt, quarter most last basis restructuring trend. solid costs, administrative cost to a Leverage

level, have priorities, Importantly, and have to the we debt reducing a business although strategically allocation TLR our attractive credit no year facility access tap including of the we our characteristic. to we most to need The will among others. plans stock our a entire opportunities revolving desired nature returns capital buybacks should by it, for remains and TLR financial we now Once focal Further reinvesting point of our company. end our our our it. our repayment, in business, cash-generative is perhaps evaluate currently

currently given We the than affiliates. as estimate is and financial our as alluded of extended limited to outlook, will of fourth be affiliates earlier, recent financial impacted quarter were that the our several affected support Erik our hurricanes. severely performance magnitude to expected lower previously to get I Before

As revenue $X to our full by a $X.X result, million fourth quarter we guidance and reduced year approximately million.

In the from or addition quarter divestitures. the assumes to movements, full year outlook hurricanes, XXXX and no our acquisitions currency further impact fourth

million full for over quarter to EBITDA of EBITDA questions. operator, funds XXXX, a let's full revenue quarter range to expect $XX.X $XX.X fourth revenue in from $XX $XX.X count in to $XX.X that, including to $XX $XX.X marketing revenue XXXX; open over from agent we X% X% XXXX, to of a change count million, X% in to including For the funds And up a range change marketing the adjusted a range million. revenue XXXX, expect to for X% of adjusted a of to $XXX to to million in year million, agent it in $XX of $XX range fourth million a range million $XXX now the million of million. With and million year the $XX.X in we million million and range of

Operator

question Our McKeveny from first Instructions] [Operator of Ryan line & Zelman Associates. the comes with

Ryan McKeveny

And to economics potential share on that So early we about of the agents, and those interesting really should around needed franchise that Is there. think first leads, I of that corporate? And of one the through you infrastructure similarly, owners and get anything the costs but guess or Concierge, to how kind may days, on just split those your and could this side done gets it's of not thoughts needed investment kind or that about potential think the via kind MAX/Tech cost is Lead partnerships? vet rolled I how up be of done know between the deals, scaled. kind out internally? may needed to

W. Carlson

for look, up, off. the cleaning my everyone Yeah. And Erik. me I'll it's Hey to thanks the if needs will team start Ryan, any here. And answer Halloween. after joining help morning us

want get or the for we've today's it, it's course about in treats right? MAX/Tech kind them just in experience. of dot we're a has you sent a experience we on traffic got get U.S. that leads, everyone been the year. customer agent Folks a agent real program, then about program little foremost, and of that are we making in hopefully, order -- obviously, it's to And very is of those a lot that to responding building to order to capability really the a that the that to also, manner. show and When here, But get purposes experience, example. the right, So think and and over Leads estate interest, of at about qualify in whether to not -- the bit ca. I'll of to sure off look, for convert traffic, it's of work we estate, Lead really, And improve improving world, Concierge timely tricks. least other industries, the first lead. out, really not in the real do qualified. And organic it's focus lot com in obviously filtered Ryan, brokers back some the dot decent

dot Lead So through off what folks we have. an in Concierge the those that do we're interest, warming is that a traffic of to trying capability with relationship testing com, taking leads is initially show

and right? So take they're low give qualified that an them a can before action. from action the investment think about to sure to perspective from there ready it's opted-in making you a and actors of in So they're to sales we our them all ready qualified perspective agent, want someone or the play, take

the customer It's for win-win in. So kind a opted win-win a on of the I because it's agent side. they're think

support with [ of doing help the are a lead. On Part of shared the taking program. or to of bit order partner some we the that ] the qualifying economics, that's warming in the piece a our of is

comes to that us. of back Some

Some of the majority comes of the that the obviously, and broker that agent deal. sees to

about So perspective But can for really program. it. low when kind our building we of a then initially, it's we take a you really initial it, off see us, and dot think about investment from com where capability this it's on can this

Amy Lessinger

to add fact enable to help this And In more might trying drive to less little we're our a time. I we're the is do bit. that to Amy. agents, them productivity and that trying in in just

think so shown has well. from that the as overwhelming they see big network And a this response the value really I as that

Ryan McKeveny

maybe Yeah, on that's the Erik very helpful. And of cost things. Karri, and side

efficiency, for the been within and you the optimization So obvious mentioned financially least has expense I couple think last we've SO&A business least. just of release, I pretty quarters, expected at driving the than think operational at it's better

think care further taken a you on maybe of the efficiencies. little driving you side about and low-hanging efficiencies the the mindset, of a and forward things, on the you cost can 'XX could is of? talk make lens growth How cost is already there focus this about kind still having but moving the So keeping also do into of costs fruit contained? progress Like structure through

Karri Callahan

it's see really dollars every line. taken terms kind to just in of rock approach spending most prudent two of quarters and the focused -- right in we in a a making a way We spend the sure really over spent trend. dollar just that do the Ryan, on and top being morning Yeah, turning terms in good our have great judicious really we're of I manner been think every that row to is in

and in and smart investing So Erik pipeline making new that. we're things, capabilities, some the that some really sure just things as in some foundational new on talked Amy about about being

smart I very the think months perspective, made looking from at holistically the across some XX what we've a look a seeing from we've the if some so, And then just we're also decisions of terms in done or franchisees. continued our legal perspective, of etcetera. over personnel you think also last I favorability the just operations organization quarter,

debt bad perform So well. well to continues as

process quarter, ticking we smart fourth strategic being the rate not dollars our that now, how what about into we ahead get up we and in as significantly. drive really QX, from we're about run then SO&A be the in saw invest into look And next line. to top that year, a how bit right we as in to those little So capabilities continuing very we're investing but maybe ultimately QX,

Operator

line Stephens. the Campbell from comes question next of The from John

John Campbell

years. that, count some back been on start just franchise of franchise on feel on And in horizon? to related agent wanted overall how color you then impactful an I of some the just broad like just inflection sales, has point to pace point at there's whether growth the to just prior growth growth to the RE/MAX guys kind

W. Carlson

few of of hearing a little of mean about going going not we've on Thanks a think bit call bit I'll a on from Look, bit kind RE/MAX. Sure, a market. transition from obviously, a specifics count Obviously, the a on as maybe kind weigh through and Amy brokers, of a before, been transition only in bit at also let she's for wait-and-see bit RE/MAX, kind maybe in what it field, regarding growth through I of I I Yeah. we've just agent the existing the and franchise but John. a question. talked pipeline. a I'm we're We're broader like type and talking than also. -- a

However, kind you The -- the be do on know and guys policy is rates. be you whether inventory, with low. it overhang the probably. it be been happening practice think better lawsuits, of of low at I what's about number it change, than higher be Obviously, transactions a when it historic interest

mean, still lot practice in so is why and say to not noise, current interested brand And perspective, or type broker a there wait-and-see customers. -- from supporter attitude. And there or power community, a ton working focus I whether RE/MAX by don't of you're a RE/MAX I out that's whether come say, still of to doing want I is like look, the to changes like, moving you're there's the your local a thing right of of of a and the but bit that there's a on

most at the most RE/MAX the to place we productive be. trusted, So remain

lot And of making and they're spending changes so of in craft, a brokers some you the agents actually, unfortunately, field, the mean other the really on practice focusing cases, on side listings; transaction. the winning right agents what the see for sure their in on and reeducating table on our time the owners

there say With think there. I spending we're will are said, interest, I independents that that do all some is time So right? struggling.

coaching, that do the happening doing. finding headquarters at have aren't of which the necessarily approach or of and agents mentorship, great the and our corporate both the training that, brokerage is position at the is the we a a level, brand education really and think and the local team kind whether power education, that because Amy be like a it and I RE/MAX from work it's whether the the community-based

seeing activity. inbound of kind decent So we're some

industry. just some that's activity, wouldn't of necessarily the to to be in necessarily However, that improve because I think, overhang those but converting the -- don't laying near-term, we're the the I is happening help into for of going XXXX that look within foundation some of conversions

Tuesday. It get a but bit next little level we'll I are think take that people about the business-as-usual business to overhangs think And running. of John, kind one working the of on week, just longer. rid they're and really But hopefully, a of improve optimistic noise, for Now second. the may that of cautious

I a has the in specifics, on bit So weigh of in Amy, John. Amy a her couple -- mean, been I and I'll lately, know so field let

Amy Lessinger

Yeah.

hi -- think think some John, very focused frustration, I their really that I hearing lot them education, difficult what of to they with on industry navigate independents, And many with midsized pretty is trying the think on have and small services to it's distracted to up changes for own. a are we're they concern. And keep technologically I and brokerages tools, support.

interest support given everything productivity broker help that education. so that we have And level a and can our is agent high

within I and we help to to [Technical make And we that, is keep capitalizing doubt. the their continue think through planning that industry. succession that will solution to there think and and are opportunity going lead So without continue a of growth our at on sure trend us a planning Difficulty] change those opportunities. them fantastic for it's I be the drive and just forefront

W. Carlson

the and the the productivity, of for some some stands it of that tools and trust, more mean putting enhancing and It in it's just we're And kind It Concierge. -- place is it's tons productivity I stands of of a platform the mean, say let we're me like look, programs John I great. only great brand. got value proposition thing. mean I one awareness. RE/MAX Lead with

done a has of the converting along sales and fruits qualified be can of agents productive work which come half rate. to which of it we've the start year Concierge, can that it's rolling kind go the process in technology, help some to or the programs, consumer-ready with by like at more of fruition you whether out seeing So leads programs Lead higher first

time it's place some ourselves with look, the optimistic we've early the to we've things about days some in and of money or put investments XXXX. up setting still, made in of So win and I'm but either

John Campbell

that, is in RE/MAX -- an the that to actual just color. Okay. conversions, does That's great land add-on And that independent franchise as the sales?

Amy Lessinger

is -- but can The that they footprint, think called may just I seeing quick? brokerage. have opt they'll we not into I thing are really roll add to concept a also where roll-in, to an existing first

counted So full -- in they do instance, as is a numbers. well. that that counts. in But franchise that in seeing And we're is show Yeah. up uptick those it's not in those that an John,

they do those have just show And as ones, we terms kind independent that is that thing smaller agent the up in into those the sales think of momentum, in exciting to that's are agent franchise especially counts. we of count from continued uptick network. And good see those I perspective, coming an of cohorts do So in perspective see from we independents very do it Erik important. we count Amy so from have, some the from funnel and mentioned, those proposition foundational coming new into when a a and and focus with have -- the we're and that value perspective initiatives there's top why conversion end we selling on the of and additional as when franchises are these activities, that's why of offerings why been much so

see momentum in to there, we're are counts. So sales franchise those and included continuing they

John Campbell

-- to your your kind back Lead then that how on vocal CCP and on the more then CCP. and market, kind stance more It debate. scaled relates other been obviously, to and seems Concierge your like, com then obviously have on just it. of taking, the Got dot a one they've focus of side in the other been obviously, of competitors lot And

line elimination I revisit you scaled wanted like of you stance, little to from your just competitors convicted on maybe think wouldn't benefit they with CCP. up think on I and guys, you are why your one? how I bit would probably a this would more color

W. Carlson

we're a And professionalism in not mean, also really and I our agents, we just transparency I but a that seller trust John, better only buyer with is mean, Well, great look, buyer experience. on providing better for seller core, outcome. believe focused and getting ultimately

from market about think foundational buyers right take long-term been on, strength But thinking out aspects built of numbers. I provide for would or here. was legacy And a not they've to XX to strength in the Dave by the if the win what in network available them and sale we built pointing we're distribution think least and short-term, you're greatest at and Gail what's and trying of has benefit I hypothetical, the I in in and and business, CCP years I that, right? and our the of but their long-term eliminated, because like and ultimately, transparency what I the players the guess brand think manipulate available. of sellers, you mean, either of the probably

we're consumer. And And to and the to the side going we're side provide. that the with agents trust the agent going side think we consumer, with professionalism our and going to so we're ultimately, the and with

agents going ultimately, because the to experience to ultimately, we'll help so our seller are be that's And to ready on CCP that's could focused on look, what that discussions mean. our if mean, I long-term. for buyer definitely it. we -- the brokers I internal of and going brand But mean, that And team and be and benefit having changes, we're the have over greatest

Operator

Paolone comes Morgan. next the J. P. from line Anthony Your question from of

Anthony Paolone

house as kind commissions data Can in Maybe for and top that Amy, you since it with to initial agreement? them the doing what early also sounds happening and sense any to the like you're RE/MAX what's to the been give relationship a is to of on buy-side help field. us out agents of down

Amy Lessinger

sure. for Yeah,

That articulating and value. their out time continuing are in very difference the I us for conclusions was do any not said lean enough has draw to think change passed so that there they it. and of negligible from large preparing announcement they're the average agents and rates having to Our settlement, navigate welcoming a the -- discuss we the just I agent. Prior to agents broad -- think to And are once topics. discussions education on far. of value opportunity that buyers professional the these more trusted prior with our in they're for were

settlement And lean we ago. into but so announced -- that we've since done nothing for months our

our buyers They hearing that a so And agents are And appreciating by to fully wanted professional what agent. be we trusted conversations. and being value is we're those prepared. represented

things where the that's field this point. so in And at stand

W. Carlson

of brokerage. agent what much training. in of invited of that over about watch parties gather we rock look, being is kind as where in I've in think one are can the may the is brokers. Amy, spending seeing And level. will happening is as And be kind around of And super professional And that the now, here and kind thing happened from you've local of been within some brands Amy the nation kind how a at this I ways, what's And Amy can to -- actually creating to distribute be creating the our cool is Tony other with see prepare come and right? And add you is agents a and content, model agents let not and then -- broker and maybe variety and and thing. the I it RE/MAX education me nationwide us, kind changes you star so great deploying is live and but these the a talking field for haven't is will community having see just one the create a in in years studio different almost where been and the the events time community really agents this of got training is about in. They rule XX that,

So the about we of community what and or only it's not of exactly working type happen lives may we brand some the the to then hey, and are frontline by day. so training the others my you a in and at community, get pick the you're has the think are the my trainings when that over broker in over, kind they forms brand where specific need breathe whether etcetera. with they're power items that a video But that up cover right? And have their community, builders, it's then for they to different can have specific need brokers there, really But seeing it's to say, for it they be helping at from with events, also HQ maybe day. watch level, And this on invite an out party every which having association, single and that at headquarter community agents what community Amy a level of then can face-to-face kind deploy going for agents their own happens folks their level. have at of help in and know every I'm that nationwide and

and of we've after to a preparing power rule changes brand changes the in So help want success the maybe helpful. part that team in in other August, had folks at to be for that's the success the show good the only good rule some seeing not Hopefully, we're point. to of but August our some also team,

Anthony Paolone

it just Karri, It that franchisee happening then the bit also And little but think, seemed it. okay about to again. like stands. down went with the you And in can because Got of as credit? be just Yeah. it quarter, a talk to opens relates, I Motto for seemed maybe what's kind where

Karri Callahan

Sure.

So strength debt bad from what we seeing is in continued exposure are our just terms perspective. of a

RE/MAX a said we've businesses their about They've in operating the And at was to good Collections contributor job, an of free a basis level from on the that see, quarter. efficiently are free third from think really to cash the appropriately our seen cash flow the so flow two-thirds into during was into outstanding into has of an translate franchisees again, as cash make people. side. cash downs adjusted I by performance of flow Collections been local terms our perspective, third which and the experienced of earnings and perspective. The effectively about our flow strength strength they business done the quarter driven and from I possible. before, market the in Obviously, through really on a and So we've -- as EBITDA we converted from our some ups big that of our perspective a think as a and revenue before, decisions team

build in even a mortgage it's a been for the of side headwinds, probably then estate the bit real little on mortgage have kind tougher. a here. Obviously, side. outsized lot Obviously there's and I'll side, on jump Ward second that mortgage, of On compared to the

perspective interest. months. really XX still thing we've the think going we're from back month that that's September exciting sales about was strongest franchise I had seeing Obviously, a the is

And of some financially, side a bit our the boots mud in little direction. cautious the optimism so from moving there's we're in while still mortgage Collections operationally, perspective there's a I that right on think

Ward Morrison

on help continue much and And We're them owners, support. I businesses. broker grow add trying retention. We're conjunction there, RE/MAX in with educate. trying We're trying to we recruiting side. help our the like their to would trying them try to and to to We're work in

tools need them though some now we try mortgage the toughest coaching education even to like unusual trying this the adoption some are successful. and really be they in just we're having that other to So of provide ever, issues just to right that And continue and the through that they to market. one markets and develop support, side, get

Operator

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

Thomas Mcjoynt-Griffith

I just lowered want on this quarter Karri. the anything Was the clarify there or temporary of expenses? expense to in sort side, onetime that

Karri Callahan

limited that raise onetime given earnings absent have in that that, There cost with the we and and in the saw providing from I release possibly in expecting to obviously, been hit that our a effective think item respect that by higher. the out would we the were hurricanes. the is affiliates did bit assistance strong the that the about in in that just even in that's QX remarks, to perspective to But an that's impacted I really we're mean, I we anything QX QX QX. little wasn't QX scripted particular mean, Yeah. impacting us. good expect call in thing management cost contain into the

Thomas Mcjoynt-Griffith

And the second usually typical of selling you couple quarters? can of into me agent and season, Remind that agent question, it. me counts? expect Canada over then U.S. happens spring the next Okay, with got remind like seasonality the the what those just you with counts just

Karri Callahan

Sure.

primarily it U.S. would to existing seasonality perspective, and So I the on really say follow from tends home Canada, of that a focusing kind sales.

to sales. of it tends follow existing home So kind

QX then little to So QX a into and into sluggish, tend and be QX. ramps it up QX and more bit

Operator

Stanley. next comes the from with Ronald Your line of Morgan Kamdem question

Ronald Kamdem

quick Just of a ones. couple

of if I don't provide. I So intentional data agent October? the know -- or think operating sort could or noticed there's sort that count update saw I any usually you October franchises model share on I was you for don't that the if statistics of

Karri Callahan

do This the complete. the out -- quarter. so after that the happened we this being of provide Hi end if Yeah. or one after end Ron, are sending we that usually the month quarter release information of month sorry, the just -- with I'm

as having things perspective going line. given was would with out in and release obviously, we not that complete. But a seasonality much I our the issue timing it pretty from at was the guidance, So with simply month everything yesterday, say look been a

in consistent of that saw key So of I'd we say XX trends October as through the the pretty geographies an from U.S. kind the we we're all September across results. at perspective agent the count looked

Ronald Kamdem

I you're very would could obviously, the side the about strong gains? of it little well. of like When and Okay, of just are be and double-click sense Is individuals? Is sort all that U.S. And a much what's thinking traction? U.S. there the of the it international that the just just Canada. And unproductive? to great. in it more just of a how leaving? continues is that of market international? very other one then Curious that to agents we you lot it obvious of sort was do -- is the have on a my share terms then on love in soft Is agent coin just driving Is on go? as if that. little sort Canada trends And of second bit count, a any

Karri Callahan

Sure.

a numbers and from So start there ahead I'll perspective. go

from -- we is think high. I saw first a the Canadian perspective, a we thing did record

when and to with continue that even the share market and to to and momentum end of grow but hard do have seeing share, we of at couple close of do have very So that a of lot one large we a a Still high. conversions, significant the market you one it's there, at that QX. well, the beginning then XX% it there. We record QX saw was

but perspective, America Brazil, the companies of I that agent the not outside. really account high, we fact from the in a the highlighted that think record particular, areas also conversion also terms perspective, XXX network good a to have momentum there. a it individual operate we really And to couple of a those are driving countries very of operators brand saw just the in large in agents third that. And it's and an globally. an couple in strength join we that looking the Erik host only markets, that good really In international in and entrepreneurial see of a up highlights XX,XXX in so From of South territories so primarily large also really quarter.

this of of brands swaths some so we market perspective, of gains convert scale some RE/MAX a quarter. as to important scale I note look that our to did that's one to productivity is brand. think gains the larger the share and agents thing power see From the agents And given is from that U.S. with other size, we

was that very So see. good to

more from lower the that agents. of we're of productivity perspective in bit some per because little productivity, those So obviously, terms still agent pressured agent losses are in a cohort seeing count some the but U.S. a of productivity gains of really

RE/MAX And to are really we today their with with we the tomorrow in operational productivity. an the really terms capabilities services, from perspective tools, that on continue the hope the foundation so our be RE/MAX will to that driving help push and that's of why and really agents

Operator

would further closing Schulz like over there at are no for this questions I back Mr. to call time, remarks. As turn the to

Andy Schulz

joining you, for operator. Thank Have to a everyone weekend. Thanks call great today. our

Operator

today's conference Thank your participation. concludes for That call. you

disconnect. may You now

RE/MAX (RMAX) 1 Nov 242024 Q3 Earnings call transcript