In an earnings call on Wednesday, May 3, Ryan Schneider, Anywhere Real Estate president and CEO, put a positive spin on Q1 2023 losses, but while emphasizing that the brokerage giant “charged ahead to make meaningful progress on our strategic priorities,” Wall Street responded sharply.
With revenues down 31% year-over-year, and a $138 million first-quarter loss, the company’s stock fell 30% after the news, before recovering a bit in after-hours trading.
“Anywhere continues to set our business up for greater growth when the market rebounds, permanently streamline our cost base as we operate differently, and reimagine the agent and customer experience,” continued Schneider during the investor call. “We are seizing the moment to position Anywhere to capture the benefits of a better environment and lead into the future.”
“In the first quarter, we remained focused on what we can control and on our relentless commitment to execution,” said Charlotte Simonelli, Anywhere executive vice president, chief financial officer and treasurer. “This includes our $200 million full year cost savings program and ongoing operational efficiencies, combined with strategic innovation and industry leadership will set our business up to drive results and emerge from this market even stronger.”
First quarter 2023 highlights
- Generated revenue of $1.1 billion, a decrease of 31% year-over-year, largely impacted by homesale transaction volume declines of 31% and the sale of the Title Insurance Underwriter.
- Reported a net loss of $138 million and Adjusted net loss of $106 million.
- Operating EBITDA loss of $52 million, a decrease of $121 million year-over-year.
- Realized cost savings of approximately $50 million in the first quarter and are on track to deliver $200 million for the full year.
- Free cash flow of negative $120 million versus negative $275 million for the corresponding quarter last year, with the first quarter being a seasonal use quarter for the business.
