RMAX - Earnings call transcript Q4 2024

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Operator

Good morning, and welcome to the RE/MAX Holdings Fourth Quarter 2024 Earnings Conference Call and Webcast. My name is Krista, and I will 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 Fourth 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

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

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

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

Erik? Carlson, on call over Morrison Chief to RE/MAX our Joining are like CEO, Callahan, the turn for Carlson. I'd to join Executive today our Q&A. Karri me us Financial Officer; and call will Chief Ward Erik our Officer. With Erik that, Holdings'

W. Carlson

and housing consecutive inventory, to efficiency everyone profit were in a line remains a our and rates better-than-anticipated bottom and name macro quarter. a joining variables, headlined and thanks of of by are positives which a few. contribute strong that state third administration our interest effort our point There current to results. to There for remains to transition. environment moves the continues lot in margin for The you, Thank results, many the Operational performance team, focal this quarter Andy, for us morning. fourth are by

change times on in our coupled and have alongside future execute us our ability are efficiency networks for resilience can uncertainty However, operational any we the with succeed of up in company, and have almost The They built proven these. our they like strategy, growth to sets market. bring for confidence opportunity, proven our success.

have to financial it's our still work we do, our to efforts see Although more encouraging in performance. reflected

Regarding fourth quarter, almost X% agent accelerated the last count, over year's international agent our during count QX. increasing

this in day Canadian some fact, ending company on important do U.S. Karri brand details will Canada, is where and they XX,XXX shareholders day and the best on Canada, including alike. best practice one interest we've stakeholders, basis. We the basis. all on affiliates, monetary absolutely strong doubled for outside network provide decision order is In had XXXX, debt for still as just believe the X network over than time. on nationwide leader, the what XXXX first In changes action XX,XXX and settle RE/MAX very believe RE/MAX holders over we we international for to terms and more of lawsuits, employees, show in appreciate make in our industry much in One and and agent protect our is this certain a some bit. a agents since count Canada in to with the agents out settlement of have substantially final do support agreement, work the the and class to note, have to industry year-end. business and our agreed the side and network We a we additional

agent trend on year-end. new enhancing remain delivering value count. products services the to decline, agent laser-focused is Here We stabilize at which innovative designed in and grow and proposition bend the U.S., we overall experienced our some typical and and

foundational for areas when customer long using the at will leaning our this which we critical strategy and the and building is important be opportunity. to in experience and count. systems. every and of objective information feedback. continue that much We're agent improving look to to to effort culture, term. Embedded on our Now a measure, over This addition to increase culture One These to upon points operational XXXX emphasis program successful leadership will ongoing efforts key Voice into XXXX manage past aid that focus on our universal power back to of our in of throughout Customer or methodology respond overall, our efficiency, through quarter directed elements improving solicit, and customer at of insights networks and is our operational our every plans. we shape the business, the we

Our quest to yielded customer the revenue has experience also improve opportunities. incremental

launched For our initiatives building Last Media the action-ready them very it Lead high-intent and materially that and the of idea saves begin in result direct designed the leads Concierge hit dead a -- out eventually enhance to we're nurture to alleviates The example, and transform remax.ca soon. chasing as a It improves MAX/Tech agent and from we customer experience. look RE/MAX Lead into down end buyers. and experience. Concierge remax.com Network time, and testing is in expecting Canada came customer leads U.S., to frustration fall, of capabilities

has and providing could this Both RE/MAX annually. essentially and on heavily contribute line up should efforts high-quality Lead our upside, to compelling a beyond. year to Network our are ramp revenue believe generate our program eventually throughout websites figure Media Network well trafficked Media Concierge we starting RE/MAX top and just X-digit Our it and advertisements

we're position into of a starting we XXXX, from strength. As move

leading the of a enviable productive real footprint, in financial simply brand in unmatched best. competitive an agents set characteristics global We most estate, the business agents. RE/MAX have attractive most business, advantages and with professional the scaled trusted, the the are and

growth with Chief over opportunities. team. straightforward: leadership a Growth in and development, RE/MAX, earlier open started products Executive perspective, RE/MAX These estate, other business. Chris continue X evaluate strategy and off are our at strong growth, enhance wealth we're existing for the services develop With exciting networks Vice Our and we strategic XX operations our times Chris business, help From our experience strengthen brings and the President year to is to to and to impactful role. years Lim of real of Officer. franchise a brokerage this additions as joined expertise and new month

while U.S. attract As supporting real dedicated track franchise turn, leverage and for customized affiliate Canada, Travis he's experience. real affiliates, systems industry's elevate RE/MAX optimize innovation proven rest receive seller time leading the most helped new the Travis will on make and growth talent brokerages largest franchises estate the executive, a technology operations Executive and brokerages his to and focus their to in digital proposition, worked innovation and money integrating home the the support U.S. regions. outcomes. elevating President Travis and management strategies efficiency. In continue and Difficulty] [Technical company's strength role, successful Throughout doing with and the help content estate and growth. expanding so all buyer while seasoned and the presence. Travis recently his marketing our strategy will improving across of the experience outstanding real increasing improve X more to to needs the positions support solutions estate growth with the networks' profitability. Saxton and record while refine, of his save work that teams driving win affiliate and our best Chris, many over leadership our and listings, business their where network and brings of oversees objectives of including has decades Chris toward company-owned RE/MAX company helping Strategy. estate solutions helping can value a consulting. team aligns them expertise has more and Travis innovate as agent with joined executive market improve in held so, of technology, career, in guides real closely of and Vice count business Travis residential also

impacting adding last segment, to fact sales sell There's with par capable which amid overall the see is interest developments year steady reflected that Motto sluggish network. performance. roughly entrepreneurs and our industry macro that Motto in were despite our the XXXX. positive the we conditions, current to on opportunity, Regarding consistently franchises, in environment, mortgage continues are a our the

are parties looking notice third Regarding inquiries of wemlo, opportunities. to growing industry our players other market fielding explore from more taking partnership presence, we're and

support For for service leader its as exclusive example, processing a wemlo space enhance in last month, the mortgage announced wholesale customers. an a partner, loan the to designed lending process concierge

turn year. We've RX, our and as on compelling opportunities a and you to in see lean an year you. building, to over in, be currently exciting to look of agent striving this simultaneously to involving I'll should next to steady out continue have convention leader marketing, while artificial offer and transition, proposition it is improve and expect come for the got improving best be With to Karri. Beginning to advancing curious referrals, We're the more. industry. social we Holdings a and our with year value continued of up a challenge position with everything. stream to We RE/MAX we branding, its innovating sharing networks week, our important that, shaping XXXX brands, annual and and innovation and initiatives evolution, intelligence, our announcements forward to progress

Karri Callahan

continuing positively a We and metrics. results delivered were finished we primary started trend second you, across Diligent in these year performance, strong Thank margin the quarter. and the Erik. expense Good profit everyone. for the and drivers strong collections morning, management better-than-expected the

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

to events, in million activity. Fourth offset which The agent in million. encouraging and driven were organic additional movements decrease decreased of strong process adverse expenses was marketing count or collections. reductions and contributed revenue, Throughout $XX.X same partially debt decrease Once by X.X% cost a and by growth resources, to and U.S. period again, to to compared organic previous cost $XX.X improved selling, Negative driven primarily negative to X.X%. implemented Looking collections investments at million, operating administrative $X.X and the collections bad X.X% a funds, quarter generation excluding and higher to personnel flow. last enhanced quarter thanks management our of improved, foreign cash efficiency converted X/X driven and flow drove our X.X% revenue currency nearly acquisitions. performance in year, the of principally adjusted by operational reduced of revenue was margin cash and due from EBITDA year, improvements as X/X revenue the the of Improved closer free costs. added adjusted we strong growth certain

approximately the $X.X have X from As have Execution final industry the settle These agreement that all terms action on in sales company, the require U.S., to reached and RE/MAX here approval. to reaching in settlement affiliates cases of mentioned, the are nationwide for U.S. be associates the Upon to million. settlement subject monetary is would comparable Erik in released parties terms. we court finalizing agreement formal Canada its agreement we to the sub-franchisor, class all lawsuits Canada settlement agreement an agreement, ones subsidiaries settled on franchisees their basis. Similar final the will and and claims a the on

right made wrongdoing. network continue the potential that course litigation of We in uncertainty our no of to action. makes complaints acknowledge risk the allegations the and in any Canadian the protecting of the We way and damages this deny from decision believe

the understand affiliates RE/MAX referral the informed sellers. transparency, key and and and producing buyers elements agents. leaders, to business, of industry are of basis top repeat of foundation fully value These clarity As the

leverage strategic ratio result settle slightly decision the as the As our to of ] ticked of of total the year. Canadian to end [ a up the X.XX:X litigation,

move of Given delever the grow will to nature XXXX. and to believe we cash we enable our throughout our cash-generative continue us reserves business, as

We price strategically believe business repurchases the given modest stock in of the reinvesting a is prioritizing attractive. are resuming and current level

However, as always, we decisions. capital remain allocation judicious regarding

acquisitions year first movements, or further assumes XXXX no and outlook currency Our full divestitures. quarter

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

Operator

of JPMorgan. [Operator Instructions] Your line the question Paolone with first comes Anthony from

Anthony Paolone

First the Like Just see? say, question of of of what about of to, made is personnel how media efforts. what Do revenue Motto? of just additional new understand Lead with a like regards trying the here you effort any to much initiatives them some opportunities the and you've currently? you've are have the revenue rise the is experience some Concierge size that sort overall you the changes talked of and customer the around to streams versus around

W. Carlson

stone over guess, Thanks also for months opportunities this almost, kind Tony, the Look, really the additional looking revenue stabilize on for of and for been of existing every the only not business. improve working to turning business, here I improve now increase Erik. XX current but and question. -- Yes, is the streams and I've kind

I help brokerages that agent where value which are event, to agents be in that But RX, it's totally overall that the is network optimistic. Sunday number the and on about to X in just we're quite to this talking the starts bring the we in inside, we are call our with we'll So outside. of And not night large we've of got worldwide initiatives that know excited. And unfortunately, proposition before community. improve RE/MAX order a kind days the reflected

made I to network promise the wait And the kind talk so network of there. have to see that first. I'd a you're to to going to

at agents, for but a bit mean, good the to I But press will So serious the bottom more consumers Concierge it Lead you'll releases look not have there. on line. note, drive like only and is

a also in of that line you program. But we if Motto revenue Lead that we're optimistic catch seeing top as opted can kind that I Ward Concierge ask thousands job. of about And from growth, minute. Ward is a in would don't Now ever are itself his perspective about that think think that I agents doing into already

loop through responding cycling are those -- the we're about a can place start agents so not we not contacting And it's XX opted Customers or to have generates other have right? And minutes, be are traffic, to paid what's the not generate customers moving closed additional so that's to want clear, agents that, et analyze factor. and now happening and closing hundreds in our We dollars, conversions. in now good plumbing we really traffic right of want like of website cetera, quickly, to because business, high-intent are within who and to whether few that's marketing, important the are really continue the the sources, like spend than that in leads. we definitely I kind for. an place years additional on in we plumbing we're leads we

But looking going to the We're business. portal the for and brand customers spend in see because name, intensity not the like the traffic. we high not of are of We RE/MAX the portals.

just trying to we're asset. So that optimize

positive. that's So

In RE/MAX addition, in QX. that ramping the That is We Network. we've nicely. about Media talked launched

out still phases. to in We're to would kind agencies. need good say got lot of working. We'll of I that positions. advertisers have line early in time we've We also we're think improve experience, QX. a generating the and not and energetic, that advertisements it top a and talking site it's built bit inventory the good we're spend revenue. that We've the But I more, more that place, some in more can seeing on but plumbing quality is and build only probably the make there. attractive consumer more

the of a So bit we're now. to stepping on gas kind sell

stabilize how us. comes I in year. like fees a And still and to revenue we're -- back it with down from our going U.S. my you'll the and mean, to is count of revenue we're going proposition. continue Most those agent I optimistic So to improving to our opening said in for opportunity biggest see of value to X-digit generate start really comments, we're ramp then half that, create that's the that, opportunity

we'll handful We're in do time order support really less that to And it excited strengthen to been and things brokers brand excited in to swagger back week. by that our And like money, to improve the so our get next of value brokers and next the network. leaning helping about make proposition. We've more the business we're providing profitability. of way, listings, and about some reintroduce talk win I'm level a of of in kind the network week to in more and agents

talking be we're it. next we'll level high and at what about that's about excited So a week,

that hopefully, helps, Tony. So

Anthony Paolone

for what Yes, terms us in look in just new headlines, of thoughts system buyers that's just is you're out approaching and any great. commissions. how on your give my And then the in you're seeing And broker change rates right the you follow-up Can we'll I rules really are seeing? guess. on the now

W. Carlson

Karri let I'm Tony. one, that going take to

Karri Callahan

been consistent of post from from So it's trend a very happened What we've consistent as a perspective, remarkably settlement. XXXX, especially activity seen internally rate rate actually is kind the NAR throughout perspective. a

impact sellers economics. manner to stands RE/MAX and and hallmarks a and continued highest network the in when productivity really about very you has of the advantages well. and adapted overall terms in RE/MAX trust, professionalism competitive haven't our with think the and we given much agent quality I competitive network the of just around work the to just our it advantages represent what think buyers Obviously, seen

from for with it stronger given trust a put productivity anything, X:X the position stands just brand in what a if think consumers. the us I and has perspective

Operator

McAndrew of question next comes line the with Nick from Zelman. Your

Nick McAndrew

very obviously, side you been thinking for for on you further of over from on you're the one maybe last XXXX able year, cost savings? that for could strip things. into about how you've Wondering out just of the Karri, but some This major just to opportunity Ryan. being touch on is if diligent any the buckets incremental Nick start, costs to also

Karri Callahan

it's Yes, question, a great Nick.

entire pulled think, together efficiency. XXXX, went was obviously, team really the around I operational just as we area our through focus large

just making taking thoughtful we was leaving purposeful making of So were that terms the not look in investments. Obviously, dollar QX look a structure, that piece every the granted, sure of you and and you rate, spent bit. to But could in you're if picture. ticks returns if of stone bump at run cost overall million. kind always annual looking agent maximize our on always sure total we any kind not up at maintain and at QX. then very XXXX. of as the unturned earlier personnel QX large for anything be of run those Obviously, so SO&A XXXX continues we of QX, $XX that Erik our kind into mentioned a a to we have SO&A is around 'XX to RX year, conference, that get this little of comparable And rate. at QX, trying SO&A looking QX looking our

I looking job nice other across really pressures to the optimize be able offset can any to really might inflationary structure cost So to a just we've that think done happening. be we where

reasonable kind back year. into QX kind as of we run half range rate of so kind the at the as rate and to run And in million QX $XX get that million of 'XX in the QX, $XX QX, of a looking

Nick McAndrew

That's then gears for it. follow-up. maybe helpful. Got a And switching

side Just any add over they network? any segments in at joining independent seeing that's there numbers, the any beneath kind color things, trends of to they you the agent of agents? come shift the of call teams kind -- out agent there? demographic U.S. least agents are or from brokerages? geography to whether newer Are Do or are of On the by headline of

W. Carlson

Yes. We did to take off? the Thanks, Ryan day Nick. got ask,

Nick McAndrew

He's around here somewhere.

W. Carlson

get All where I right. guys. you with stand All now right. we right. All

into bit bit ideas -- find there agent highly us that a of -- actually not you, So I broadly. are at I of of stable. -- me professional way. struggling mean, it's more new We're the wrong. and business been are one is that our kind our little fairly the There their attract Like agents coming of it's Nick. I'll But same. still from And talk That's to have of get that clip. more agents to a a joy those. agents to Don't think just are perspective, I there think new leave and goals churn our tenured a seeing be is able high one to an

improving professional manner to about of that productive that of of So proposition, in, them trusted to sorts whether or and agents able the I regardless be earlier all into get level our bring network that to not. part talked value they come in is

productive. that think little to more agents we helping I still have bit work make brokers So on a onboard do and them

that's seeing where most productivity. so tenure, lower generally, churn, of And you're lower the

Operator

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

Ronald Kamdem

both U.S. ones. count agent quick of the X on on count. just One the Just -- is the the agent U.S. outside and

sort anything if a bit the you the provide of attrition? in the new months U.S. outside some on XX and that is past downside sort of continue guys the improve there there the the U.S. strategy the that's or or just international? take you a sense. that driving and makes could the driving curious trends U.S. different the little what's actually of more to plan versus taken upside on Just Is And have tact trends color on to of the if sort

W. Carlson

Canada, we've market U.S. -- agent think got leader, about premier we've through count a geographies. presence, in I of Canada us. market there. think brand, mean so, the just XXX up I talk strong, there different clipped XX,XXX in or a general market We right? I'll ] is QX, great [ still market couple, obviously, got I The XX% -- was all-time agents. which Ron. an of just XX% for different is down so mean, I mean do that high kind -- over off share. I'll I

additional mean, was the variables on Canadian remarks we cover the call, in we strategically in and As air some to Canada. I important provide to obviously, it from our remove order the front some lawsuits noted settle felt of

a more maybe So I little the think there. bit funnel it's top of

I On mean, is side, high us. the look, all-time for XX,XXX international an

So entrepreneurs just opportunity We've are that over that running agent XXX countries. strong just seeing to base, -- are is There's that. year-over-year, hungry. not XX% good got regions huge internationally, only to up brokerages just under grow monetize brand internationally, the right, awesome and our but

who lean we got a for the agent those And we've experience. it's although roll that's come value have have that's I want And that I out against top it's and way. the think we the so experience, of improving customer for if good some us opportunities probably of for that issue. broker to a only focus proposition, next I the us. U.S. stay but we I agent the of and the the who stability, monetization to very good about do been and ability to I'm And position. do experience be, And the the and strategies network true week believe also agent building that, growth, we'll industry, foundation, on the we're in with talked today. And U.S. little in, a primary and to in I'll to support and a things Nick, going return focusing to we'll our along us top And optimistic be funnel think bit issue items -- back a count, the think churn -- not funnel and I about

Ronald Kamdem

in I there on Canadian quick then Canada. was think -- And just another substantial Great. update a agreement

settlement. I process appeals company think still on million is the waiting $XX for the the

of in XX-K? sort stuff we're curious sort is -- waiting other litigation does that on? the address that's are X, Just mentioned Or there of those after of the all of sort sort that

Karri Callahan

other I U.S. we any as think we think and with all else did respect our we a lot of both really absolutely the perspective. respect interest Ron, the work and as done a we're XX-K everything with from those of best to happy that's night Canadian stakeholders. well with outlined litigation, to perspective in is been file the where It of removes last you And it's in of as a that the noted, uncertainty, are just disclosures.

Operator

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

John Campbell

So Erik, start with maybe let's RX.

sleeve that guys remax.com corner. it present you've sounded the these the got bit hinted on obviously envisioning hold upcoming this the It tying changes. a that have at appreciate got CCP, just line maybe the kind topic to way the you to maybe You've consumers. there. around around some to But battleground a and days. different the little stuff commentary that's of to back you some sounds I of like of like big up But kind

like a about and of latest hoping maybe us time. doubled RE/MAX's how you kind your over can, of One things. public They've be last realtor.com gotten on portal. Stock can with of you the their figure what and people They've stance maybe could side month. with and looks kind then board over of of the access you're extent whatnot investors kind compete a on CCP board public anti-CCP competitors is they strategy. it's of leading talk obviously, on kind the refresh and gotten Zillow on with consumer I'm view direct envisioning on that

W. Carlson

you. for from sell So RX network you for was John, waiting patient I also. thanks you the appreciate I question. about it announcements know I being because that

first. what to customers dear means for what's them on the tell know you So table our it

last about like excited is pro think since I and today. kind CCP just with we're But think world and of there in RE/MAX. look, And share, has to brand, a explore. Look, great not our I middle our of look, our there fight quarter. changed that with the week, timing think mean, So anti market with nobody there lot necessarily in more sells position do I real we're on count. estate position you than for and it's that a an agent guys a next ground I is don't great global our presence happening.

think I that way. so And we're either prepared

let So me first. talk about that

and So business about public we market how meaning our compete, we ready would different way. got that to to other I technology mean, their we if our practices that wishes, in like go potentially thought competitor would a be and

it is? the be exactly and what's in believe I would mean, that generally, in not. the what customer. anti-approach interest transparency of best Probably we Now like

are and way. So off individuals. as kind work get may a customers price of that know, unique there for obviously pockets certain you being a a And in some doing in cases, that private that better from feel they listing things of

community, I or the think we're focus business have see is will about customer sellers really for that in win players. the the price whether certain within you that's We've what try see can't make but long more to XX term. try to transparency term, think a doesn't short-term think customer experience buyers to have profit worldwide, property, going your gotten things the mean state, in short years. to out been not And and what better in most overall, do when to that that going and otherwise. But you is shows you and experience what because to best be data take to could what think within is that people and important heart is your what that their I and wants if and get do that country better I though, your within you and going we're you're we're potentially than really what's your needs, on you

expect be another in to years. XX We business in

doing agent so that bring financial got agents And by on and work or decision buyer buying that to the experience, followed very closely a unbelievable and selling we've the of we're really And that to experience and are to life. home every going experience. day XXX,XXX emotional seller focus

tools better trusted And customer and some like our more and doing group. productive they because this so a it going win support to in network great save money and make a value provide and great time can more experience and we listings we're lean and have so proposition professional with unbelievable

So today, than that I with end in think where little more public Pro do the in would there bit probably another up flexibility. out that there company are anti-camp be a John. CCP camp it That's we more some the

John Campbell

a Okay. That's great response.

difficult answer. sorry of But that kind with position to the it's RX around okay. corner, And to

So about appetite Karri, let's talk buybacks. for the

first, just then that how Hoping do what you dislocation. like limitations for guys? are be you your impactful revisit can You think commentary. we covenant much guess can capacity from buyback mentioned the a I standpoint? how stock a have, you And

Karri Callahan

Yes.

generation John, generated said obviously, quarter, had the year a strong of nature is cash of into our And flow half. as scripted flow and a cash in the think, remarks, year. free more than I this X/X the on we we free about our turned franchise earnings The fantastic. little So business --

bit with close -- into right settlement year. as thing now X.Xx, we down dislocation lawsuits, the It earlier, XXXX, with priority we're which, was our little absolutely, which move the Canadian uncertainty of said getting us. But remove of looking up is the bit. the a to a the as if under do in the get stock, behind I of about some and just right So as the think, we're and it now, put X.XX to can the that at right tick did the we little maintaining leverage first we end

restrictions -- at from all would a have perspective. buyback Looking we things would perspective, agreement a credit remove from we

-- So in Erik allocating a and back the as get price very very return really on look drive good think shares value continue as reinvesting line. back delever. to the the capital business, to good buying stock the from do focused said, the that with perspective, into a top is to I proposition, that 'XX And dislocation on, that we'll then here a we

John Campbell

tack And helpful. maybe ] [ That's Okay. then on. this just to

the the now, buybacks dividend? So potentially in priorities eventually right business, then reinvestments and

Karri Callahan

a looking everything think, and Erik strategic perspective as a said -- simple having enhancing to is what then right we're of and as of return we I looking from always now products terms relates could perspective, well. developing new and our scripted So looking current have at then in from in his opportunities. capital, opportunities that as those it John, remarks, perspective, looking pretty capital other relate other return of from strategy at at to conversations And

Operator

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

Thomas Mcjoynt-Griffith

the around questions Just guidance. a of couple

to brokerage number? revenues looking like help us revenue, excluding about points for recurring you So more the down up in the there funds, maybe in to X%. think the fees that what's Could volume-sensitive the at first anywhere versus marketing guidance it guidance from the contemplated looks X% off,

Karri Callahan

Sure.

of outsized in that we perspective of growth. From to count geography. just and bit kind Canadian it driven and by count of more at there, to given that out network about housing had market more the in perspective, we share uncertainty little from that have kind similar 'XX, breaking as for relates trends a like a some implied perspective just overall brand a up year, and the from perspective, given for the that we would we strength think the looking of global obviously, kind And next some of U.S. mid-single-digit were flat agent a we're agent to on seeing From more we're up about and be pressure XXXX, bit an that the So improvement. right really in impactful would we're little now. do X%. kind a but the Still from we decline, up more were kind and performance, expect as of Canada. be of some and excited recurring and That what's muted which perspective, be looking a then path a -- just the see of about the fees -- trajectory

in right low negative. And fees from geographies. a at count next fee looking little single lot then perspective improvement perspective, broker on it's left a across all digits some of be agent of but basis still to kind percentage So up year, now. early year, from year-over-year obviously, U.S. broker golf the bit a a But a played

Thomas Mcjoynt-Griffith

there that end or build-outs number? ] separately, in product in any EBITDA program one-off Appreciate the we new associated and contemplated should margin some are these that XXXX that. are Great. costs of mind keep headwinds [ And that then with are

Karri Callahan

is a of network, I a it's perspective the great of on the not perspective. those financial move terms one that risk lot in focused of think but And really a we're value from really we revenue needle diversification for a creating Tommy, things think can where our we taking from question. looking opportunities at

cover that to significant of tried think a testament as items said, kind one-time So row focus the and because we've judicious lay just where not because it and how we've we a haven't is the fourth a the we quarter is profit I otherwise overperformance structure given third some the we've quarter been to been foundation cost really able perspective, that from seen in side. on the to

And so consequence. think that of I something that's

other think I The just is consolidation. trend an around perspective that thing we just from think about industry

One our talked mergers of and that is acquisition about we've years the the over of the course initiatives initiatives. conversions, last couple of

not industry as area just cost, as necessarily one-time -- something given initiatives just about that's else another focused overall that trend. think we growth think about a in we future, that's so that capital but it's allocating And just to the on, we're

Operator

back will and gentlemen, closing that our to conference I comments. turn Schulz Andy And does question-and-answer now session. conclude Ladies for over the

Andy Schulz

you, to everyone for our a the today. thanks concludes event. great joining Have and Thank operator, weekend. call This

Operator

Ladies call. today's and and gentlemen, you this for you conclude disconnect. your may now conference does Thank participation,

RE/MAX (RMAX) 21 Feb 252024 Q4 Earnings call transcript