There was no getting around the fact that Anywhere Real Estate president and CEO Ryan Schneider, in a July 25 earnings call, could not sugar-coat a $1.7 billion revenue drop, but at least there was a modicum of good news, as for the first time since Q3 2022 there was a profit, $19 million, to report for Q2 2023.
“In the midst of a challenging housing market, we delivered results in line with our expectations and continue to invest to set Anywhere up for an even stronger future,” said Ryan Schneider, Anywhere president and CEO. “We are accelerating our strategy, which includes growing our high-margin franchise business, expanding our luxury leadership, simplifying and integrating the consumer transaction experience, and further transforming our cost base as we position Anywhere to lead real estate to what’s next.”
Compared with Q1 2023 highlights, which included a $138 million loss, the news was much brighter this time around.
“Anywhere delivered impressive results in the second quarter despite a tough real estate market,” said Charlotte Simonelli, Anywhere executive vice president, chief financial officer, and treasurer. “We continue to be laser focused on what is in our control, including driving meaningful cost savings, making progress on our agent commission costs, and opportunistically reducing our debt.”
The brokerage giant, which includes Better Homes and Gardens Real Estate, Century 21, Coldwell Banker, Corcoran, ERA and Sotheby’s, expects third quarter 2023 transaction volume to be down around 10% versus prior year. It expects quarterly transaction volume comparisons to 2022 to improve throughout 2023, but expects full-year 2023 transaction volumes to decline about 15-20% year-over-year and likely towards the better part of that range.
Anywhere stock gained 12.47% on the day to finish at $8.61. Its 52-week range is $4.33 – $12.96.
Second quarter 2023 highlights:
- Generated revenue of $1.7 billion, a decrease of 22% year-over-year, largely impacted by homesale transaction volume declines versus prior year of 23%.
- Reported a net income of $19 million and adjusted net income of $27 million.
- Operating EBITDA of $126 million, a decrease of $76 million year-over-year.
- Commission splits in the second quarter were only up 32 basis points year-over-year, driven by an improved competitive environment and proactive company actions.
- Realized second quarter cost savings of approximately $50 million and approximately $100 million year-to-date, and hoped to be on track to deliver $200 million for the full year.
- Free cash flow of $105 million vs. $70 million for the corresponding quarter last year.
