NYSE$MMI

Marcus & Millichap · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Marcus & Millichap reported its second quarter results, showing a decrease in total revenue but an increase in Middle Market and Larger Transaction Market brokerage revenue and financing fees compared to the same period last year.

Marcus & Millichap reported a decrease in total revenue for the second quarter of 2024, with a net loss of $5.5 million. However, there was an increase in Middle Market and Larger Transaction Market brokerage revenue and financing fees. The company remains optimistic about the long-term outlook due to pent-up buyer demand and record capital on the sideline.

  • Total revenue decreased by 2.8% to $158.4 million compared to the second quarter of 2023.
  • Brokerage commissions decreased by 3.5% to $135.4 million compared to the same period last year.
  • Private Client Market brokerage revenue decreased by 11.9%, while Middle Market and Larger Transaction Market brokerage revenue increased by 14.8%.
  • Net loss was $5.5 million, or $0.14 per common share, diluted, compared to a net loss of $8.7 million, or $0.23 per common share, diluted, for the same period in the prior year.

Headline financials

Total Revenue

$158M

Previous: $163M-2.8%
EPS (adj)

-$0.14

Previous: -$0.23+39.1%
Capital Expenditures

-$4.3M

Previous: -$5.47M+21.4%
Free Cash Flow

-$9.83M

Previous: -$14.2M+30.7%
Net Income

-$5.54M

Previous: -$8.73M+36.6%
Operating Income

-$8.05M

Previous: -$10.7M+24.6%
Gross Profit

$0.00

Previous: -$23K+100.0%
Stock-Based Comp

$5.89M

Previous: $5.35M+10.1%

Revenue & EPS history

Marcus & Millichap · Revenue · Quarterly

$158M

Q2 2024-2.8%vs Q2 2023
Beat estimate in 9 of 14 quarters(64%)
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 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.

Headwinds

  • Volatility in transactional activity and investor sentiment driven by the elevated cost of debt capital
  • Volatility in transactional activity and investor sentiment driven by interest rate uncertainty and the heightened bid-ask spread between buyers and sellers
  • Risks of a potential recession and its unfavorable impact to commercial real estate space demand
  • Possible impact to market sentiment related to the presidential election, potential tax and other policy changes which may influence transaction velocity and/or future fluctuations in sales and financing activity
  • 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 Q2 2024

Historical avgQ2 2024

+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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