NYSE$MMI

Marcus & Millichap · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported all-time record quarterly revenues, net income, and earnings per share.

Marcus & Millichap reported a strong second quarter in 2021, with total revenues increasing by 142.7% to $284.9 million and net income increasing to $31.5 million, or $0.78 per common share, diluted. The company's success was driven by increases in real estate brokerage commissions and financing fees, as well as contributions from recent acquisitions and investments in technology.

  • Total revenues increased by 142.7% to $284.9 million compared to Q2 2020.
  • Net income increased to $31.5 million, or $0.78 per common share, diluted, compared to $106,000, or $0.00 per common share, diluted in Q2 2020.
  • Brokerage commissions and financing fees more than doubled to $252.9 million and $28.2 million, respectively, compared to Q2 2020.
  • Private Client brokerage revenue grew over 100% to $158.1 million compared to Q2 2020.

Headline financials

Total Revenue

$285M

Previous: $117M+142.7%
EPS (adj)

$0.78

Previous: $0.00+29113.5%
Capital Expenditures

-$2.77M

Previous: -$4.19M+33.9%
Free Cash Flow

$28.8M

Previous: -$4.08M+804.3%
Net Income

$31.5M

Previous: $106K+29647.2%
Operating Income

$41.6M

Previous: -$2.61M+1691.6%
Gross Profit

$19K

Previous: $89K-78.7%
Cash & Equivalents

$230M

Previous: $155M+48.8%
Total Assets

$818M

Previous: $671M+21.9%
Stock-Based Comp

$2.66M

No prior period

Revenue & EPS history

Marcus & Millichap · Revenue · Quarterly

$285M

Q2 2021+142.7%vs Q2 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 believes it is positioned to achieve long-term growth, benefiting from its experienced management team, infrastructure investments, industry-leading market research and proprietary technology.

Tailwinds

  • Experienced management team
  • Infrastructure investments
  • Industry-leading market research
  • Proprietary technology
  • Size and fragmentation of the Private Client Market segment continues to offer long-term growth opportunities through consolidation

Headwinds

  • Volatility in market sales and investor sentiment driven by 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
  • Changes to investor sentiment and sales activity based on favorable interest rates and economic initiatives which may increase real estate investor demand, for the remainder of 2021
  • Possible impact to investor sentiment related to regulatory and tax law changes which maybe causing trading acceleration and/or future fluctuations in sales and financing activity
  • Potential higher cost of services resulting from more experienced investment sales and financing professionals closing a larger share of revenue and surpassing revenue thresholds earlier in the year
  • Volatility in each of the Company’s market segments

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 Q2 2021

Historical avgQ2 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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