In a Q1 2024 earnings call Apr. 25, Anywhere Real Estate reported a $101 million loss for the quarter, continuing a downward, though not as deep, trend for the last few quarters. Generated revenue was $1.1 billion, which follows revenue of $1.250 billion in Q4 2023, down 6% from Q4 2022, when it was $1.323 billion. For 2023 in full, the net loss overall was $97 million, which while not good, was at least much better than 2022’s $287 million.
The company also has over $100 million of one-time payments anticipated this year between the $73.5 million class action litigation payment and the $39 million legacy California tax matter.
“Anywhere continued to demonstrate powerful leadership in the face of a challenging housing market and industry landscape, and our results in the quarter reinforce our ability to execute with discipline and focus while propelling our strategy forward,” said Ryan Schneider, Anywhere president and CEO. “I appreciate how our great Anywhere affiliated agents, franchisees, and employees continue to deliver meaningful value to help consumers navigate the market as, together, we empower everyone’s next move.”
Anywhere expects operating free cash flow excluding one-time items to be modestly positive in 2024 as working capital, savings programs and cash management discipline will help counterbalance another tough year in housing.
“Anywhere delivered solid results in the first quarter despite a tough market environment,” said Charlotte Simonelli, Anywhere executive vice president, chief financial officer and treasurer. “We are excited about our financial octane when the housing market strengthens and continue to stay focused on controlling what we can control, maximizing our cost savings, prudently managing cash, and improving our capital structure to position Anywhere for long-term success.”
Anywhere includes franchise, brokerage, relocation, and title and settlement businesses, as well as mortgage and title insurance underwriter minority-owned joint ventures. The diverse Anywhere brand portfolio includes some of the most recognized names in real estate: Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, Corcoran, ERA and Sotheby’s International Realty.
Anywhere stock was at $5.32 after the report, down about 1.5%.
Q1 2024 highlights
- Generated revenue of $1.1 billion, flat year-over-year, impacted by combined homesale transaction volume increases versus prior year offset by declines in relocation revenue.
- This is the first quarter of transaction volume increases in two years. Combined closed transaction volume increased 2% year-over-year in the first quarter with units down about 4% and price up 7%.
- Anywhere’s strength in luxury continued to outperform with its Sotheby’s International Realty brand seeing closed transaction volume up 7% year-over-year with about half of that from unit growth as it again meaningfully outperformed the market and our portfolio.
- Reported net loss of $101 million and adjusted net loss of $88 million.
- Operating EBITDA loss of $17 million, $35 million improvement year-over-year with March Operating EBITDA solidly positive.
- Realized cost savings of approximately $30 million and on track to deliver at least $100 million for the full year.
- Commission splits in the first quarter were down 3 basis points year-over-year, continuing the six-quarter trend of more stable splits.
- Free Cash Flow of negative $145 million with the first quarter being a seasonal use quarter for the business.
