NYSE$MMI

Marcus & Millichap · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported financial results, reflecting market disruption from the Fed's actions and interest rate volatility.

Marcus & Millichap reported a decrease in revenue and a net loss for Q4 2023, impacted by market disruption and interest rate volatility. The company is focusing on attracting professionals, strategic investments, and technology enhancements to position itself for market recovery.

  • Total revenue decreased by 36.7% to $166.2 million compared to Q4 2022.
  • Brokerage commissions decreased by 38.7% to $144.6 million compared to Q4 2022.
  • Net loss was $10.2 million, or $0.27 per common share, diluted, compared to net income of $7.9 million in Q4 2022.
  • Adjusted EBITDA was $(4.5) million, compared to $14.1 million for the same period in the prior year.

Headline financials

Total Revenue

$166M

Previous: $262M-36.7%
EPS (adj)

-$0.27

Previous: $0.20-235.0%
Total Sales Volume

$11.9B

Previous: $13.1B-9.1%
Avg Commission per Transaction

$102K

Previous: $115K-11.4%
Capital Expenditures

$1.68M

Previous: $3.1M-45.8%
Net Income

-$10.2M

Previous: $7.91M-229.4%
Operating Income

-$17.2M

Previous: $5.86M-393.7%
Gross Profit

$57.5M

Previous: $81.7M-29.6%
Stock-Based Comp

$8.34M

Previous: $4.64M+79.8%

Revenue & EPS history

Marcus & Millichap · Revenue · Quarterly

$166M

Q4 2023-36.7%vs Q4 2022
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 commercial real estate transaction market is poised over the long-term to overcome near term challenges which are currently expected to extend for the first half of 2024. Company believes it remains well-positioned to achieve long-term growth.

Tailwinds

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

Headwinds

  • Volatility in transactional activity and investor sentiment driven by the elevated cost of debt capital
  • Interest rate uncertainty and the heightened bid-ask spread between buyers and sellers
  • Risks of a potential recession and its unfavorable impact to CRE 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
  • Increase in operating expenses driven by labor costs, insurance, taxes and construction materials

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 Q4 2023

Historical avgQ4 2023

+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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