Fathom Holdings Inc. recently announced financial results for the 2021 first quarter ended March 31, 2021.
Revenue for the 2021 first quarter grew approximately 72% to $49.6 million, from $28.8 million for the comparable period last year. Fathom completed approximately 6,900 real estate transactions for the first quarter of 2021, an increase of approximately 60% from the same period last year. Fathom’s real estate agent network increased approximately 42% to 6,045 agents at March 31, 2021, up from 4,258 agents at March 31, 2020.
G&A expense was $6.2 million for the 2021 first quarter, compared with $1.8 million one year ago, when Fathom was not a public company. The increase in G&A related primarily to acquisitions, public company costs and continued investment in growth. G&A is expected to increase going forward driven by acquisitions, public company costs, and costs related to scaling and integrating the company’s vertical business lines.
GAAP net loss for the 2021 first quarter was $3.4 million, or a loss of $0.25 per share, compared with a GAAP net loss of approximately $43,000, or a loss of less than $0.01 per share, for last year’s first quarter. Weighted average shares outstanding increased approximately 35% for the 2021 first quarter, versus the same quarter last year.
Adjusted EBITDA loss, a non-GAAP measure, was $2.5 million for the 2021 first quarter, compared with an Adjusted EBITDA profit of $135,000 one year ago.
“Our first quarter results once again demonstrate the power of our truly disruptive model. We’ve been working hard to deliver on our promises and to grow Fathom in an accelerated, yet sustainable fashion for the long-term, and our results demonstrate our ability to do just that,” said Fathom CEO Joshua Harley. “We have not slowed down since going public, acquiring several strategic businesses aimed at enhancing our capabilities and supercharging our vision to revolutionize the residential real estate market.
“Now, with the addition of mortgage, title, insurance and additional SaaS product offerings through intelliAgent, we have the potential to significantly increase our revenue and profit per transaction, and I believe we’re on the right path. Plus, our cash position remains strong, and we are committed to adding to that position by focusing on cash generation through operations. We now have all the pieces of the puzzle we need to make real and significant change in the real estate space.
“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. With our attractive agent commission structure, we believe we’re in a unique position to grow even faster at a time when many investors are worried about possible headwinds in the real estate sector. I truly believe that most of these possible headwinds could prove to be tailwinds for Fathom’s growth.
“I also want to point out that the lifetime value of our cost of agent acquisition remains over 20x, and that’s just the revenue generated on the real estate brokerage side of our business. It doesn’t take into account the revenue from our mortgage, title, and insurance companies, potential revenue from the leads we can generate for our agents, or future SaaS revenue.
“I couldn’t be prouder of all that we have accomplished, especially on an accelerated timeframe, and I’m more excited today than I have ever been,” added Harley. “As a result, we believe our long-term prospects are strong, and we are planning for continued growth ahead. Our culture of service remains one of my most rewarding accomplishments, and we will continue to focus on enhancing value for our agents, associates, customers, and of course, our shareholders.”
The company had cash and cash equivalents of $24.9 million as of March 31, 2021, compared with $28.6 million at Dec. 31, 2020. The decline primarily reflected completed acquisitions.
“The strength of our balance sheet has allowed us to complete several strategic acquisitions, while building our team and enhancing our marketing efforts to capture future growth opportunities,” said Fathom President and CFO Marco Fregenal. “Our financial results clearly demonstrate Fathom’s ability to grow our key performance indicators, even during what is typically a seasonally weaker quarter for residential real estate. We believe the real estate market remains strong, and we look forward to continuing to work hard to build out our offerings to further enhance Fathom’s real estate services platform.”
For more information, please visit www.fathomrealty.com.
