RE/MAX Holdings, Inc, parent company of RE/MAX and Motto Mortgage, recently provided the company’s third quarter 2020 operational and financial outlook in advance of the company’s quarterly earnings release expected to be issued on Nov. 5, 2020.
Operating Statistics as of Aug. 31, 2020
(Compared to August 31, 2019)
– Total RE/MAX agent count increased 4.4 percent to 133,454 agents
– U.S. and Canada combined agent count decreased 0.9 percent to 83,352 agents
-Total open Motto Mortgage franchises increased 23.3 percent to 127 offices
Outlook
For the third quarter of 2020, RE/MAX Holdings expects:
– Agent count to increase 4.0 percent to 4.5 percent over third quarter 2019
– Revenue in a range of $69.0 million to $71.0 million (including revenue from the marketing funds in a range of $16.5 million to $17.5 million)
– Adjusted EBITDA in a range of $28.0 million to $30.0 million
The company’s third quarter 2020 Outlook includes the wemlo and Gadberry Group acquisitions and assumes no further currency movements, acquisitions or divestitures.
Gadberry Group Acquisition
RE/MAX Holdings recently announced the acquisition of the Gadberry Group. Gadberry Group is a location intelligence data company whose products have been instrumental in the success of the newly launched www.remax.com consumer website. Founded in 2000, Gadberry Group’s team is comprised of a total of 16 employees including engineers, data scientists and customer success experts who specialize in building products that help clients solve geospatial challenges through accurate and precise location data. Gadberry Group will continue to serve non-RE/MAX clients while maintaining their contributions to the RE/MAX technology stack.
“The acquisition of Gadberry Group is another building block in the RE/MAX quest to become the worldwide leader in real estate technology,” said Adam Contos, RE/MAX Holdings CEO. “For our RE/MAX brand, Gadberry Group is highly complementary to both our First app and booj platform, further strengthens our overall technology infrastructure, and bolsters our formidable data and analytic capabilities. For RE/MAX Holdings, Gadberry Group further broadens our revenue mix and represents another attractive avenue for growth.”
Earlier this month, RE/MAX Holdings announced the acquisition of wemlo—a 20-month-old, Florida-based startup in the mortgage broker channel. Wemlo developed the first “Service Cloud” for mortgage brokers, combining third-party loan processing with an all-in-one digital platform. Wemlo will become integrated within the Motto Mortgage product ecosystem and be available to independent mortgage brokerages to retain their services as well.
Both additions are tuck-in acquisitions aimed to diversify RE/MAX Holdings’ revenue and growth opportunities, said the company, while reinforcing the company’s acquisition strategy of adding innovative companies that deliver value and improve the customer experience.
For more information, please visit www.remax.com.
