In a combined Q4 and full-year 2023 earnings call Feb. 15, Anywhere Real Estate reported falling revenue of $1.250 billion in Q4, down 6% from Q4 2022, when it was $1.323 billion. For 2023 in full, the net loss overall was $97 million, which while not good, was at least much better than 2022’s $287 million. The company reported $5.6 billion in 2023 revenue, an 18% decrease from 2022.
In remarks during the report, President and CEO Brian Schneider acknowledged the negatives while promoting positives.
“Anywhere demonstrated our leadership strength in 2023, driving meaningful results in a tough real estate market,” he said. “In a potentially improving housing market, we are excited to build on our competitive advantages, accelerate our strategic agenda, and deliver even greater value to Anywhere affiliated agents, franchisees and shareholders in the year ahead.
“It was an incredibly difficult year in the housing market with the fewest home sale transactions since 1995, combined with unprecedented industry litigation challenges. All the while the Anywhere team stayed focused on our strategic agenda, and we continued our track record of delivering meaningful results.”
Schneider also acknowledged that the company’s settlement of the Burnett trial, totaling $83 million, also impacted earnings.
“Our EBITDA (earnings before interest, taxes, depreciation and amortization) would’ve been meaningfully higher without our litigation reserves, and our free cash flow would’ve been above $100 million,” he said. “Without litigation payments and taxes related to debt transactions, the ability to generate these levels of EBITDA and free cash flow even in such a challenging year for housing demonstrates our financial octane, which is a clear competitive differentiator.”
Anywhere includes franchise, brokerage, relocation, and title and settlement businesses, as well as mortgage and title insurance underwriter minority-owned joint ventures. The diverse Anywhere brand portfolio includes some of the most recognized names in real estate: Better Homes and Gardens Real Estate, CENTURY 21, Coldwell Banker, Coldwell Banker Commercial, Corcoran, ERA and Sotheby’s International Realty.
Anywhere stock dropped after the report, falling from $7.64 on Wednesday’s close to $6.87.
Full-year 2023 highlights
- Generated revenue of $5.6 billion, a decrease of 18% year-over-year, largely impacted by homesale transaction volume declines versus prior year of 19%.
- Reported net loss of $97 million.
- Operating EBITDA of $200 million, meaningfully impacted by approximately $50 million of litigation reserves.
- Reduced debt by $308 million through successful debt exchanges, open market bond repurchases and repayment of a portion of our revolver balance.
- Realized cost savings of approximately $220 million.
- Free cash flow of $67 million.
- Entered into a nationwide settlement agreement in the seller antitrust class action litigation.
- Anywhere was recognized as one of America’s 2023 Most Innovative Companies by Fortune and named on the Forbes list of World’s Best Employers for the third year in a row, in addition to continuing its consistent track record for 12 years as a World’s Most Ethical Company and six years as a Great Place to Work.
