NYSE$MMI

Marcus & Millichap · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported results for the third quarter of 2022, with diluted earnings per share of $0.53, including a $0.03 foreign currency exchange loss.

Marcus & Millichap reported a decrease in total revenues by 2.6% to $323.8 million and a decrease in net income to $21.4 million, or $0.53 per common share, diluted, for the third quarter of 2022, compared to the same period in the prior year. The results were impacted by aggressive monetary policy tightening.

  • Net income was $21.4 million, or $0.53 per common share, diluted, including $0.03 of foreign currency exchange loss.
  • Total revenues were $323.8 million, compared to $332.4 million.
  • Adjusted EBITDA was $36.6 million, compared to $51.0 million.
  • Closed 3,034 total transactions in the quarter.

Headline financials

Total Revenue

$324M

Previous: $332M-2.6%
EPS (adj)

$0.53

Previous: $0.84-36.9%
Total Sales Volume

$17.9B

Previous: $20.8B-13.8%
Avg Commission per Transaction

$130K

Previous: $122K+6.8%
Average Commission Rate

1.6%

Previous: 1.8%-10.4%
Capital Expenditures

-$8.56M

Previous: -$4.24M-102.1%
Free Cash Flow

$12.8M

Previous: $29.7M-56.9%
Net Income

$21.4M

Previous: $33.9M-37.0%
Operating Income

$30.6M

Previous: $45.7M-33.1%
Gross Profit

$106M

Previous: $206K+51589.3%
Cash & Equivalents

$271M

Previous: $281M-3.6%
Total Assets

$1B

Previous: $875M+14.3%
Stock-Based Comp

$4.54M

Previous: $2.7M+68.1%

Revenue & EPS history

Marcus & Millichap · Revenue · Quarterly

$324M

Q3 2022-2.6%vs Q3 2021
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

Short-term macroeconomic forces have become increasingly challenging, particularly ongoing inflationary pressures, recent interest rate increases and the potential for further interest rate increases in 2022 and 2023. All of these forces have the potential to adversely influence economic growth and investor sentiment.

Tailwinds

  • Experienced management team
  • Recent infrastructure investments
  • Industry-leading market research
  • Proprietary technology
  • Size and fragmentation of the Private Client Market segment

Headwinds

  • Volatility in sales and financing activity and investor sentiment
  • Potential higher cost of services
  • Volatility in each of the Company’s market segments
  • Reduced institutional activity in the Larger Transaction Market segment
  • Increase in costs related to inflation and the return of in-person events, client meetings, and conferences

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 Q3 2022

Historical avgQ3 2022

+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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