Fathom Holdings Inc., a holding company that primarily operates through its wholly owned subsidiary, Fathom Realty, LLC, recently announced financial results for the 2020 fourth quarter and full year ended Dec. 31, 2020.
Fourth Quarter 2020 Financial Results
Revenue for the 2020 fourth quarter increased 61% to $53.4 million, from $33.2 million for the prior-year period. Fathom completed approximately 7,500 real estate transactions for the fourth quarter of 2020, an increase of 50% from the same period last year. Fathom’s real estate agent network grew 37% to 5,471 agents at December 31, 2020, up from 4,006 compared with the year prior.
GAAP net loss for the 2020 fourth quarter was $1.3 million, or a loss of $0.09 per share, compared with a GAAP net loss of $1.3 million, or a loss of $0.14 per share, for last year’s fourth quarter. Weighted average shares outstanding increased 36% for the 2020 fourth quarter, versus the same period last year.
Adjusted EBITDA loss, a non-GAAP measure, narrowed to $850,000 for the 2020 fourth quarter, from an adjusted EBITDA loss of $1.2 million a year ago.
“Our fourth quarter and full-year results reflect the power of our unique model and Fathom’s ability to attract real estate agents by providing them with greater income potential along with the technology and tools they require to grow their businesses even further, which, in turn, drives our growth. Moreover, I’m extremely proud that our retention of higher producing agents, or agents closing more than 10 transactions per year, improved significantly from 10% of the overall attrition in 2019 to only 2.5% of the overall attrition in 2020,” said Fathom CEO Joshua Harley. “Since going public, we have substantially increased revenue, continued the expansion of our agent network, improved agent retention, entered new geographic markets and completed strategic acquisitions that further solidify our market position.
“We are continuing to identify additional revenue-generating opportunities to accelerate,” Harley said. “These opportunities, including adding mortgage and insurance, expanding our geographic footprint, launching a national real estate portal, improving our technology offerings and acquiring smaller residential real estate brokerages, will allow us to continue providing a growing number of Fathom agents with everything they need to succeed, while becoming advocates for Fathom and helping us accelerate our organic growth through their agent referrals.
“2020 was a watershed year for us, and we are extremely proud of all we have accomplished. We look forward to taking additional actions that will add value to our Company and benefit all of our stakeholders.”
2020 Full-Year Financial Results
Total revenue for 2020 increased 59% to $176.8 million, from $111.2 million for 2019. GAAP net loss for 2020 was reduced to $1.3 million, or a loss of $0.12 per share, compared with a GAAP net loss of $4.1 million, or a loss of $0.42 per share, for the previous year. Weighted average shares outstanding increased 16% in 2020 from 2019. Adjusted EBITDA loss totaled $381,000 for the 2020 full year, an improvement over an adjusted EBITDA loss of $2.3 million for the 2019 full year.
The company had cash and cash equivalents of $28.6 million at Dec. 31, 2020, up from $579,000 at Dec. 31, 2019, primarily reflecting the completion of the company’s initial public offering on Aug. 4, 2020, which resulted in the issuance and sale of approximately 3.4 million shares at an offering price of $10.00 per share, providing proceeds of $31.1 million, net of offering costs.
“We have built a strong balance sheet that allows us to fund additional growth as we execute on our long-term strategy,” added Fathom President and CFO Marco Fregenal. “Despite normal fourth quarter seasonality, we generated solid total revenue growth and increased revenue per transaction. The residential real estate market remains strong, and we believe Fathom will continue to play a significant role well into the future.”
– Acquired Verus Title Inc., expanding Fathom’s residential real estate offerings to include title insurance services.
– Entered Michigan market. Fathom now operates in 27 states and 113 local markets, with plans to expand to additional states and Canada.
– Partnered with zavvie to provide residential real estate services to consumers.
– Introduced an expanded referral program to reward Fathom agents for bringing new agents to the company. Approximately one-third of all agents joining Fathom come through referrals.
Subsequent to the end of the fourth quarter:
– Acquired the technology platform of Naberly Solutions, through Fathom’s intelliAgent subsidiary.
– Added to the company’s Board of Directors with the appointment of Ravila Gupta.
– Acquired the real estate brokerage business of Red Barn Real Estate, a growing Atlanta metro area brokerage with approximately 230 agents.
For more information, please visit www.fathomrealty.com.