Business
Fathom Holdings Inc. Reports Third Quarter 2022 Financial Results; Enhances Agent Referral Incentive, Increases Agent Fees
-- Company Targets Adjusted EBITDA Breakeven in First Half of 2023, Cash Flow Breakeven in Q3 of 2023 -- CARY, N.C., Nov. 7, 2022 /PRNewswire/ -- Fathom
About this update from Fathom Holdings Inc.
[{"type":"text","content":"-- Company Targets Adjusted EBITDA Breakeven in First Half of 2023, Cash Flow Breakeven in Q3 of 2023 --\nCARY, N.C., Nov. 7, 2022 /PRNewswire/ -- Fathom Holdings Inc. (Nasdaq: FTHM), a national, technology-driven, end-to-end real estate services platform integrating residential brokerage, mortgage, title, insurance, and SaaS offerings for brokerages and agents, today announced financial results for the 2022 third quarter and nine months ended September 30, 2022. The Company also announced an enhanced agent referral incentive program, increased agent transaction fees and caps, and deeper cost cutting measures.\n\n \n \n \n \n \n \n\n \nThird Quarter 2022 Financial ResultsTotal revenue grew 10.2% for the third quarter of 2022 to $111.3 million, up from $100.9 million for last year's third quarter. Against the backdrop of a challenging macro environment, Fathom completed 12,077 real estate transactions for the 2022 third quarter, an increase of approximately 5% from the same quarter last year. Fathom's real estate agent network grew approximately 33% to 9,991 agents on September 30, 2022, up from 7,536 one year ago.\nBusiness line revenue for the 2022 third quarter, compared with the 2021 third quarter was as follows:\nThree Months Ended\n(Revenue $ in millions)\nSept. 30, 2022\nSept. 30, 2021\nReal Estate Brokerage\n$105.0\n$95.3\nMortgage\n$2.8\n$2.6\nTechnology\n$0.7\n$0.7\nOther*\n$2.8\n$2.3\n*Other primarily includes revenue generated from Fathom's title and insurance businesses.\n\"Fathom's revenue grew by more than 10 percent and our agent network grew 33 percent to nearly 10,000 agents, even amidst the backdrop of a challenging residential real estate market,\" said Fathom CEO Joshua Harley. \"Our commission structure puts more money in agents' pockets by charging a small fraction of what traditional brokerages charge, making it a highly attractive value proposition. In fact, our enhanced agent referral program, which we began beta testing on September 1 of this year, resulted in the best referral month in our Company's history. At the same time, the leverage we've built into our model should allow us to enhance margins as we right size expenses and drive more agents and transactions through our network.\n\"Our priority right now, even in today's market environment, remains achieving total company Adjusted EBITDA profitabi...