Marcus & Millichap · Q1 2024 earnings

Briefing

Marcus & Millichap reported a decrease in revenue and net loss compared to the same quarter last year, reflecting a challenging market environment and strategic investments.

Marcus & Millichap reported a decrease in total revenue by 16.6% to $129.1 million compared to Q1 2023. The company experienced a net loss of $10.0 million, or $0.26 per share, compared to a net loss of $5.8 million, or $0.15 per share in the prior year. The results were impacted by a reduction in the number of transactions due to a challenging market environment.

• Total revenue decreased by 16.6% year-over-year to $129.1 million.
• Brokerage commissions decreased by 18.9% year-over-year to $109.5 million.
• Net loss was $10.0 million, or $0.26 per share, compared to a net loss of $5.8 million, or $0.15 per share in the prior year.
• The company repurchased 16,900 shares of common stock at an average price of $32.77 per share for a total price of $0.6 million.

Headline financials

Revenue & EPS history

The market is still working through the ongoing price discovery, wider than normal bid/ask spreads, and a prolonged downturn in transaction volume due to the Federal Reserve’s decision to delay interest rate reductions. While these conditions are likely to persist through much of 2024, price adjustments, distressed situations and maturing loans could drive additional transactions in the quarters ahead. Over the long term, real estate demand is expected to return sales and financing volumes to higher than current levels given the record capital on the sideline and key advantages of real estate investments. Accordingly, the Company believes it remains well-positioned to achieve long-term growth.