The company saw total revenue slide
RE/MAX Holdings, Inc. has announced operating results for the quarter that ended September 30, 2024, where the company saw a 3.4% total revenue decrease.
"We continue to drive operational efficiency across the enterprise, which helped generate better-than-forecasted third-quarter financial results," said Erik Carlson, RE/MAX Holdings CEO. "Our team is developing new revenue opportunities while working to run our core business better each day. That effort has contributed to our strong margin performance the past two quarters, which is an encouraging trend."
The company generated $78.5 million in revenue in Q3 2024, which is a decrease of $2.7 million (3.4%) from the $81.2 million generated in Q3 2023. In the third quarter of 2024, revenue excluding the marketing funds totaled $58.4 million, down $2.0 million, or 3.3%, compared to the same period in 2023. The decline was due to negative organic revenue growth of 3.0% and adverse foreign currency movements of 0.3%. The decrease in organic revenue was linked to reduced US agent count and reduced revenue from previous acquisitions, partially offset by an increase in broker fee revenue.
Recurring revenue streams that consist of continuing franchise fees and annual dues, decreased by $1.5 million compared to the third quarter of 2023. In Q3 2024, these streams accounted for 66.4% of revenue excluding the marketing funds, down from 66.7% in the same period last year.
Carlson continued: "Business optimization, having a growth mindset, and delivering the absolute best customer experience possible are the cornerstones of our playbook. We are making measurable progress on each of these. With increasing optimism about the trajectory of future interest rates, our growing global agent count, and our bold new initiatives – including providing innovative and enhanced technology products to our RE/MAX affiliates, improving the agent-customer experience by cultivating leads, and starting to monetize our digital assets – we are well-positioned to finish the year with positive momentum."
For the full year 2024, the company now expects revenue in the range of $306 million to $311 million. This range includes revenue from marketing funds, projected to be between $78.5 million and $80.5 million. The previous forecast was for total revenue between $305.0 million and $315.0 million, with marketing funds revenue estimated between $78.0 million and $82.0 million.
