Q4 2024 Fathom Holdings Inc Earnings Call Transcript
Key Points
- Total revenue grew approximately 24% in Q4 2024, reaching $91.7 million, up from $74.1 million in Q4 2023.
- Gross profit increased by 25%, with a significant rise of 59% when excluding the sold Dagley insurance business.
- Agent count increased by 21%, from approximately 11,795 to 14,300 agent licenses by year-end.
- Fathom Holdings Inc (FTHM) has one of the lowest direct costs per transaction at $264, compared to peers averaging $1,200 to $1,800.
- The company anticipates achieving sustainable, positive adjusted EBITDA potentially as early as Q2 2025.
- GAAP net loss for Q4 2024 was $6.2 million, or $0.29 per share, despite improvements from the previous year.
- Adjusted EBITDA loss remained unchanged at $2.9 million for Q4 2024, indicating ongoing profitability challenges.
- Rising mortgage rates and a $1.3 million one-time expense impacted the company's ability to move into positive EBITDA territory.
- The broader real estate market faced challenges with high home prices and mortgage rates, leading to a 3% decrease in total revenue for 2024 compared to 2023.
- The company experienced higher turnover, particularly among zero or low-producing agents, reflecting industry-wide challenges.
Greetings. Welcome to the Fathom Holdings Inc. 4th quarter 2024 conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press 0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Paul Koontz. You may begin.
Thank you and good afternoon. Welcome to Fathom Holdings, 4th quarter and full year 2024 conference call. Joining us today is the company's CEO, Marco Fresno.
Before I turn the call over to management, I want to remind listeners that today's call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1,995. Such forward-looking statements are subject to numerous conditions, many of which are beyond the company's control, including those outlined in the risk factor section of the company's Form 10K and other company filings made with the SEC, copies of which are
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