Following the unexpected news Thursday that RE/MAX CEO Nick Bailey is leaving the company, which was released in tandem with the announcement of the company’s continued revenue declines for Q4, newly promoted RE/MAX LLC president Amy Lessinger said agent and brokerage growth is priority number one.
“I’m ready to hit the ground running – and I’m excited for the future,” Lessinger said Friday in a statement to RISMedia. “My immediate focus is to help RE/MAX agents close more sales and help RE/MAX brokerages grow.”
Regarding Bailey she added, “On a personal note, I’m grateful to Nick for bringing me into RE/MAX Headquarters – and for the opportunities that’s brought through the years.”
Earlier Friday on a webcast with investors, Lessinger said her longtime experience at the company as an agent will help support the firm’s overall goal to increase agent count. “Having been in the business for a very long time as an agent, a team leader, a broker/owner, I do see things from an entrepreneurial standpoint, from their standpoint. I have used that experience to help drive the initiatives forward, to help provide our network with what they need to excel,” Lessinger said. “Our foremost priority is to stabilize agent count and grow agent count in the U.S.”
In a release posted to the firm’s investor relations site Thursday afternoon, RE/MAX announced continued revenue declines along with Bailey’s departure, but provided no further details on his exit.
In her new role, Lessinger, former SVP of Region Development for RE/MAX and with the company for more than 25 years, will be responsible for overseeing the RE/MAX brand and network globally, a release stated.
In addition to Lessinger, RE/MAX also announced the promotions of Abby Lee, previously senior vice president of Marketing and Communications, who is being promoted to executive vice president of Marketing, Communications and Events. She will continue to lead advertising, marketing, communications, and public relations, in addition to managing the company’s events team.
“I want to take our brand strategy even higher – and help RE/MAX agents get even louder as they promote themselves,” Lee told RISMedia. “We want to help affiliates meet their clients where they are – and help deliver an even better customer experience.”
Susie Winders is also being promoted from senior vice president, general counsel, chief compliance officer, and secretary to executive vice president, general counsel, chief compliance officer, and secretary, the company noted.
“As we continue to leverage our industry-leading brands, attractive franchise model, and unique competitive advantages, I look forward to working with Amy, Abby, Susie, and our broader leadership team to drive forward our focus on providing our brands’ broker/owners, agents, and loan originators with the resources and services they need to help them thrive, which should benefit all of our stakeholders,” said Erik Carlson, RE/MAX Holdings chief executive officer.
Dave Liniger, chairman of the company’s Board and RE/MAX co-founder added, “I am delighted to recognize Amy, Abby, and Susie for their accomplishments. They are exceptional leaders who have each played a meaningful role in our Company’s success by tirelessly promoting our strong brands and supporting our highly productive networks.”
Recap of Q4 results
RE/MAX Holdings generated revenue of $76.6 million in the fourth quarter of 2023, a decrease of $4.7 million, or 5.7%, compared to $81.3 million in the fourth quarter of 2022. Revenue excluding the marketing funds was $56.0 million in the fourth quarter of 2023, a decrease of $3.4 million, or 5.8%, versus the same period in 2022. The decrease in revenue excluding the marketing funds was attributable to negative organic revenue growth of 5.6% and adverse foreign-currency movements of 0.2%. Organic growth decreased primarily due to a reduction in U.S. agent count and lower broker fee revenue, partially offset by mortgage segment growth.
Total operating expenses were $86.3 million for the fourth quarter of 2023, an increase of $13.5 million, or 18.5%, compared to $72.8 million in the fourth quarter of 2022. Fourth quarter 2023 total operating expenses increased primarily due to higher impairment charges and selling, operating and administrative expenses, partially offset by reduced marketing funds and depreciation and amortization expenses.
Looking forward, RE/MAX projects revenue between $75-80 million in Q1 2024 and an adjusted EBITDA between $16.5 million to $19.5 million.
The company made news last quarter amid the ongoing commission lawsuits saga, when it decided to settle, paying $55 million to resolve sweeping class action claims ahead of the landmark Burnett vs NAR decision. The company also reported losses the previous three quarters of 2023.
On the investor webcast Friday, Carlson proposed a positive outlook for the year ahead and reiterated the firm’s decision to settle in the class action suits. “We expect to steadily improve our franchise sales as the market stabilizes and we rebuild our pipeline. Lastly, (we settled) to protect our U.S. agents, franchisees and company from multiple class action lawsuits. While the settlement came at a significant financial cost we believe it was the right decision for all our stakeholders, affiliates, employees shareholders and debtholders alike.”
To read the full announcement and further details on the company’s Q4/full year earnings report, click here.
To listen to the webcast, click here.
