NYSE$RMAX

RE/MAX Holdings · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

RE/MAX Holdings reported a decrease in total revenue and adjusted EBITDA, but saw growth in agent count in Canada and global regions.

RE/MAX Holdings reported a decrease in total revenue by 10.6% to $82.4 million and a decrease in adjusted EBITDA by 24.2% to $26.6 million. The company's net income attributable to RE/MAX Holdings, Inc. was $2.0 million, with earnings per diluted share (GAAP EPS) of $0.11. Total agent count increased slightly by 0.4% to 144,510 agents.

  • Total revenue decreased by 10.6% to $82.4 million.
  • Net income attributable to RE/MAX Holdings, Inc. was $2.0 million, with GAAP EPS of $0.11.
  • Adjusted EBITDA decreased by 24.2% to $26.6 million, with an Adjusted EBITDA margin of 32.3%.
  • Total agent count increased by 0.4% to 144,510 agents.

Headline financials

Total Revenue

$82.4M

Previous: $92.2M-10.6%
EPS (adj)

$0.40

Previous: $0.68-41.2%
Total agent count

144.5K

Previous: 143.9K+0.4%
Free Cash Flow

$2.01M

Previous: $5.83M-65.5%
Net Income

$2.01M

Previous: $5.83M-65.5%
Operating Income

$13.2M

Previous: $16.9M-22.2%
Gross Profit

$1.14M

Previous: $159K+617.6%
Cash & Equivalents

$96.8M

Previous: $118M-18.1%
Total Assets

$655M

Previous: $747M-12.3%

Revenue & EPS history

RE/MAX · Revenue · Quarterly

$82.4M

Q2 2023-10.6%vs Q2 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

RE/MAX · $92.2M total across 5 segments · Q2 2022

  • Continuing franchise fees
    $34.1M
  • Marketing Funds fees
    $22.9M
  • Broker fees
    $19.3M
  • Annual dues
    $9.02M
  • Franchise sales and other revenue
    $6.8M

Forward guidance

The Company's third quarter and full-year 2023 Outlook assumes no further currency movements, acquisitions, or divestitures.

Tailwinds

  • Agent count to change 0.0% to 1.0% over third quarter 2022
  • Revenue in a range of $78.5 million to $83.5 million (including revenue from the Marketing Funds in a range of $20.0 million to $22.0 million)
  • Adjusted EBITDA in a range of $23.5 million to $26.5 million
  • Agent count to change 0.0% to 1.0% over full year 2022, changed from -1.0% to 1.0%
  • Revenue in a range of $320.0 million to $332.0 million (including revenue from the Marketing Funds in a range of $82.5 million to $86.5 million), changed from $315.0 million to $335.0 million (including revenue from the Marketing Funds in a range of $83.5 million to $87.5 million)

Headwinds

  • Adjusted EBITDA in a range of $92.0 million to $98.0 million, changed from $95.0 million to $105.0 million
  • Changes in the real estate market or interest rates and availability of financing
  • Changes in business and economic activity in general
  • The Company's ability to attract and retain quality franchisees
  • The Company's franchisees' ability to recruit and retain real estate agents and mortgage loan originators

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 2023

Historical avgQ2 2023

+0.1%

Avg return

Earnings day

-1.4%

Avg return

5 days after

-2.2%

Avg return

30 days after

55%

28 / 51 earnings

Positive

+13.0%

Q2 2024

Best reaction

-13.7%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%-13.0%-10.0%
Q4 2025-2.2%-7.5%-16.1%
Q3 2025-3.3%-6.8%-0.6%
Q2 2025-9.2%-11.9%+10.6%
Q1 2025+3.4%+2.6%-3.1%
Q4 2024-10.2%-7.8%-12.3%
Q3 2024-7.7%+0.7%+7.0%
Q2 2024+13.0%+17.6%+26.2%
Q1 2024+7.1%+12.1%+12.4%
Q4 2023-3.5%-5.0%-11.5%
Q3 2023+2.7%-12.9%-14.7%
Q2 2023-1.6%+2.8%-16.1%
Q1 2023+2.6%-1.3%+1.9%
Q4 2022-13.7%-18.3%-25.9%
Q3 2022+1.0%-5.7%+12.2%
Q2 2022+2.4%+5.4%-12.8%
Q1 2022-2.4%+0.3%+2.2%
Q4 2021+1.5%+1.1%-4.5%
Q3 2021-6.3%-11.4%-0.1%
Q2 2021+2.3%+2.2%-0.3%
Q1 2021-1.6%-3.7%-6.3%
Q4 2020+1.3%-1.9%-5.2%
Q3 2020-3.8%-5.0%-2.6%
Q2 2020+6.5%+11.2%+5.7%
Q1 2020+3.3%+9.8%+39.4%
Q4 2019-12.8%-19.6%-54.4%
Q3 2019+9.6%+9.5%+13.7%
Q2 2019-2.9%-6.8%-11.7%
Q1 2019-6.0%-9.5%-30.4%
Q4 2018-1.2%-3.9%-9.3%
Q3 2018-6.0%-8.7%-11.8%
Q2 2018+1.5%+0.3%-0.5%
Q1 2018+0.1%+0.2%-3.4%
Q3 2017+8.6%+10.0%+12.8%
Q4 2017+8.6%+10.0%+12.8%
Q2 2017+9.4%+5.2%+7.2%
Q1 2017-1.9%-2.8%-7.5%
Q4 2016-3.2%-4.9%-6.1%
Q3 2016+5.9%+9.4%+23.3%
Q2 2016+1.4%+1.1%+0.1%
Q1 2016+1.8%
Q4 2015-1.2%
Q3 2015+2.9%
Q2 2015-0.7%
Q1 2015+6.0%
Q4 2014+3.9%
Q3 2014+1.1%
Q2 2014+5.0%
Q1 2014-4.3%
Q4 2013-4.7%
Q3 2013+3.5%
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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