NYSE$MMI

Marcus & Millichap · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Marcus & Millichap's financial performance remained strong in Q1 2021, with net income increasing despite a slight decrease in total revenues.

Marcus & Millichap reported a decrease in total revenues by 3.5% to $184.0 million compared to a record first quarter of 2020. However, net income increased by 14.9% to $15.0 million, and Adjusted EBITDA increased by 14.8% to $25.7 million.

  • Total revenues decreased by 3.5% to $184.0 million compared to the first quarter of 2020.
  • Net income increased by 14.9% to $15.0 million, or $0.37 per common share, diluted.
  • Adjusted EBITDA increased by 14.8% to $25.7 million.
  • Revenue from financing fees increased by 16.2% to $17.8 million.

Headline financials

Total Revenue

$184M

Previous: $191M-3.5%
EPS (adj)

$0.37

Previous: $0.33+12.1%
Investment Sales Professionals

2.0K

No prior period
Capital Expenditures

-$1.1M

Previous: -$2.4M+54.2%
Free Cash Flow

$13.9M

Previous: $10.7M+30.4%
Net Income

$15M

Previous: $13.1M+14.9%
Operating Income

$20.2M

Previous: $19.6M+2.9%
Gross Profit

$33K

Previous: $77K-57.1%
Cash & Equivalents

$222M

Previous: $190M+16.8%
Total Assets

$751M

Previous: $670M+12.0%
Stock-Based Comp

$2.29M

Previous: $2.63M-13.1%

Revenue & EPS history

Marcus & Millichap · Revenue · Quarterly

$184M

Q1 2021-3.5%vs Q1 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Marcus & Millichap · $163M total across 4 segments · Q1 2021

  • Private Client Market
    $105M
  • Larger Transaction Market
    $30.6M
  • Middle Market
    $20.6M
  • Less than $1 million
    $6.14M

Forward guidance

The Company anticipates continued growth across all business segments, albeit at varying degrees, with pandemic-impacted sectors requiring more time for price discovery. Stable sectors like apartments and single-tenant net-lease are approaching pre-COVID pricing and demand in many markets.

Tailwinds

  • Leading national brand and market position within the Private Client Market segment.
  • Growth opportunities in the Middle Market and Larger Transaction Market segments.
  • Significant growth potential in our financing division, Marcus & Millichap Capital Corporation.
  • Supplementing our organic growth through incremental strategic acquisitions.
  • Further expansion of investment brokerage services in office, industrial and various specialty property types such as hospitality, self-storage and seniors housing.

Headwinds

  • Uneven recovery among markets we operate in and certain real estate asset types
  • Slowdown in market sales of asset types impacted by COVID-19, interest rate fluctuations, increasing bid-ask spread between buyers and sellers and economic trends
  • Possible impediment to investor sentiment related to regulatory and tax law changes at the local, state and national level
  • Experienced sales and financing professionals’ larger share of revenue production in a more challenging market environment, resulting in a higher cost of services
  • Global geopolitical uncertainty, which may cause investors to refrain from transacting

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.5%

Avg return

Earnings day

-0.1%

Avg return

5 days after

-0.7%

Avg return

30 days after

66%

33 / 50 earnings

Positive

+16.9%

Q1 2015

Best reaction

-29.3%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.2%+3.6%+3.7%
Q4 2025+3.4%+2.9%+1.6%
Q3 2025-0.5%+2.8%-1.9%
Q1 2025+2.6%+4.2%+1.1%
Q4 2024+5.4%+3.6%-7.2%
Q3 2024+4.3%+2.5%+2.4%
Q2 2024-0.5%-5.6%-1.9%
Q1 2024+2.0%+1.0%-8.3%
Q4 2023-3.4%-7.5%-17.4%
Q3 2023+8.7%+3.9%+17.9%
Q2 2023+0.5%-2.8%-9.8%
Q1 2023-4.9%-8.7%-0.0%
Q4 2022-2.2%-1.8%-12.8%
Q3 2022+2.3%-1.9%+7.9%
Q2 2022+0.1%-2.3%-9.4%
Q1 2022-5.2%-9.4%-8.4%
Q4 2021+5.4%+0.4%+3.3%
Q3 2021+6.5%+1.9%-2.4%
Q2 2021-1.1%-1.2%+0.1%
Q1 2021+3.0%-0.1%+6.3%
Q4 2020+4.2%+4.0%-10.4%
Q3 2020+2.1%+10.7%+17.1%
Q2 2020-0.1%+3.0%+8.2%
Q1 2020+9.5%-5.4%+21.2%
Q4 2019+1.0%-9.5%-34.9%
Q3 2019-7.3%-4.1%+1.9%
Q2 2019+10.0%+12.5%+15.7%
Q1 2019-15.1%-18.0%-28.7%
Q4 2018+1.0%-2.3%-4.2%
Q3 2018+5.1%+5.4%-0.8%
Q2 2018-3.0%-3.8%-10.2%
Q1 2018+6.6%+6.0%+9.9%
Q4 2017+9.3%+10.1%+5.9%
Q3 2017+5.5%+3.7%+7.8%
Q2 2017+5.4%-0.6%+0.5%
Q1 2017-3.7%-6.4%-0.7%
Q4 2016-1.0%-2.4%-8.7%
Q3 2016+2.0%+4.4%+18.0%
Q2 2016+5.2%+4.9%-1.7%
Q1 2016+10.5%
Q4 2015+2.9%
Q3 2015-29.3%
Q2 2015-4.3%
Q1 2015+16.9%
Q4 2014-6.1%
Q3 2014+2.1%
Q2 2014+8.2%
Q1 2014+11.0%
Q4 2013-3.0%
Q3 2013+1.6%
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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