Slide 1: The Future of Real Estate
THE FUTURE OF REAL ESTATE Nasdaq: FTHM
Slide 2: Disclaimer: Forward Looking Statements
Disclaimer Forward Looking Statements This presentation contains forward - looking statements about Fathom Holdings Inc . based on management’s current expectations, which are subject to known and unknown uncertainties and risks . Our actual results could differ materially from those discussed due t
Slide 3: Who is Fathom?
Fathom Holdings is a fast - growing residential real estate brokerage that offers real estate agents the opportunity to keep more of their hard - earned commission dollars through a differentiated commission model . Our unique, low - cost, and disruptive model has allowed Fathom to attract high qual
Slide 4: Technology-driven real estate services platform
National, technology - driven, real estate services platform integrating residential brokerage, mortgage, title, insurance, and SaaS offerings to brokerages and agents by leveraging proprietary cloud - based software 4
Slide 5: Investment Highlights
Proven Success • 7 , 536 agents in 34 states and DC in 3 Q 21 , 50 % growth YOY • 11 , 498 transactions in 3 Q 21 , 42 % growth YOY • $ 100 . 9 M in revenue in 3 Q 21 , 81 % growth YOY • 2022 Guidance of $ 410 M to $ 420 M in Revenue • 2022 Guidance of adjusted EBITDA* of ( - $ 1 M) to Breakeven Dis
Slide 6: Disrupting Real Estate Brokerage Model
Disrupting Real Estate Brokerage Model Traditional “Brick and Mortar” Real Estate Brokerage model is broken • High fixed cost (offices, personnel, and infrastructure) • Low agent income due to higher splits to broker; 30% split on average • Agents may invest less in marketing due to lower income • D
Slide 7: Fathom's Simple Flat Fee Model
Fathom’s Simple Flat Fee Model Our Agents Earn More $350,000 x 3% $10,500 - $3,150 $7,350 Sale Price Commission % Total Commission Split to Broker (30%) Total to Agent TRADITIONAL BROKERAGE $350,000 x 3% $10,500 - $450 $10,050 Sale Price Commission % Total Commission Flat - fee to Fathom Total to Ag
Slide 8: Turnover by Agent Productivity
TURNOVER BY AGENT PRODUCTIVITY 20+ sales 1% 10 - 19 sales 1.5% 5 - 9 sales 5% 2 - 4 sales 15% 0 - 1 sales 77.5% Total 100% Fathom Agents Have Low Turnover 92.5% of the agents who leave sell <4 homes 8 1.34% /mth Fathom Realty Agent Attrition 3%+ /mth Industry Average Agent Attrition* Only 2.5% of ag
Slide 9: Proprietary Software Benefits
Benefits • Additional SaaS revenue • Streamline and automate business operations • Faster expansion to new markets • Eliminate external tech costs • Reduce costs per agent w/agent growth • Improve communication with agents and clients • Integrate core businesses • Improve attach rates for mortgage,
Slide 10: Potential Future Upside for intelliAgent
• White - label intelliAgent | “Brokerage in a box” • License iA to small to mid - size brokerages and teams • Mortgage and title joint ventures with these brokerages • Upsell additional services Potential Future Upside for iA 10 Benefits • Generate SaaS revenue from brokerages and agents who would
Slide 11: Potential Future Upside: National Real Estate Portal
POTENTIAL FUTURE UPSIDE National Real Estate Portal National brand - agnostic home search portal 11 Benefits • Helps attract more buyers and close more sales • Lead generation and lead nurturing services • Increase revenue per transaction • Higher attach rate for mortgage, title, and insurance • Att
Slide 12: Low Agent Acquisition Cost
Low Agent Acquisition Cost 3Q21 Cost to Acquire One Agent $985 12 Quick Break - even Annual Fee on 1 st Sale + $500 Transaction Fee per/Sale + $450 Gross Profit on 1 st Sale = $950 Cost to Acquire Agent - $985 Break - even Close to First Sale • Recruiting teams • Agent referrals • Acquisitions Sourc
Slide 13: National Coverage & Fast Expansion
National Coverage & Fast Expansion Fathom HQ: Cary, NC 13 34 states and D.C. Expansion Plans to All 50 States & Canada
Slide 14: National Coverage & Fast Expansion
National Coverage & Fast Expansion 14 Expansion Plans to All 50 States & Canada 41 states & D.C. 27 states & D.C. 47 states & D.C.
Slide 15: Mortgage Company
MORTGAGE COMPANY • Increases revenue per real estate transaction • Capture additional revenue from refinance • Licensed in 41 states and D.C.
Slide 16: Title Company
16 16 • Increases revenue per real estate transaction • Strong relationships with leading underwriters • Licensed in 29 states AND D.C. • Industry - wide, online notarization up 547% in 2020 TITLE COMPANY
Slide 17: Insurance Agency
• Enhances revenue per transaction • 43% of the insurance quotes convert into policies • Licensed in 47 states and D.C. • Full U.S. rollout planned HOME, AUTO, & CASUALTY INSURANCE AGENCY 17
Slide 18: Data Aggregation & Content Platform
18 • Generates additional SaaS Revenue • Helps attract more agents and close more sales • Assists in build - out of national real estate portal • Currently provide tech and/or data to over 750 companies and over 100,000 agents o Customers include CoreLogic, Berkshire Hathaway Home Services, Sotheby’
Slide 19: Strong Growth
$55 $77 $109 $177 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2017 2018 2019 2020 REVENUE 9350 13000 17866 26440 0 5000 10000 15000 20000 25000 30000 2017 2018 2019 2020 TRANSACTIONS 1733 2724 4006 5471 0 1000 2000 3000 4000 5000 6000 2017 2018 2019 2020 AGENTS Strong Growth 19 (in Millions) 7,
Slide 20: Hypothetical Revenue Model
Hypothetical Revenue Model 20 REVENUE BREAKDOWN PER BUSINESS LINE (excludes SaaS) REAL ESTATE LEAD GEN MORTGAGE TITLE INSURANCE GROSS REVENUE $9,000 $9,000 $10,000 $2,000 $450 GROSS PROFIT $450 $4,500 $8,000 $1,200 $400 GROSS PROFIT MARGIN 5.0% 50.0% 80.0% 60.0% 88.9% OPERATING PROFIT $150 $1,500 $2
Slide 21: 2022 Guidance
2022 Guidance 21 REVENUE $410 to $420 Million ADJUSTED EBITDA - $1 Million to Break - even These are forward - looking statements subject to numerous risks and uncertainties, including those detailed under “risk factors” in our form 10 - K and other SEC filings. See important disclosures regarding n
Slide 22: Management and Board
Glenn Sampson Board Member Held various senior level positions at Exxon Mobil; Original investor in Fathom David Hood Audit Chair Past Audit partner at Ernst & Young; Past Vice President, Finance at Quintiles Americas Jeff Coats Compensation Chair Past Chief Executive Officer of AutoWeb; Past Managi
Slide 23: Awards & Recognition
Awards & Recognition glassdoor 4.8 98% 98% Recommend a Friend Approve of CEO Josh Harley 23 SP200 Most Powerful Leaders In Real Estate Josh Harley Fathom Realty CEO, #80 # 9 # 15 2017 #3 2019 #2 2018 #1 2020 #2 2021 #3 Awards & Recognition
Slide 24: Agents Win Business, Not Brands
*Source – National Association of Realtors 2020 Profile of Home Buyers and Sellers, pg. 133 24 Why Clients Chose Their Agent Over 95% of clients chose an agent based on their abilities Only 1% of clients chose an agent due to what brokerage they were with Agents Win Business, NOT BRANDS 1% 1% 2% 2%
Slide 25: Reconciliation of GAAP to Non-GAAP Forward Looking Guidance
25 RECONCILIATION OF GAAP TO NON - GAAP FORWARD LOOKING GUIDANCE (Unaudited) (in thousands) Three Months Ended December 31, 2021 Twelve Months Ended December 31, 2022 Low High Low High Net loss $ (3,960) $ (3,760) $ (11,640) $ (10,640) Depreciation and amortization 1,010 1,010 4,540 4,540 Income tax
Slide 26: Note about Non-GAAP Financial Measures
Note about Non - GAAP Financial Measures To supplement its consolidated financial statements, which are prepared and presented in accordance with U . S . Generally Accepted Accounting Principles ("GAAP"), the Company uses Adjusted EBITDA, a non - GAAP financial measure, to understand and evaluate it
Slide 27: The Future of Real Estate
The content of this presentation is proprietary and confidential information. It is not intended to be copied, distributed or reproduced in whole or in part to any third party without the written consent of Fathom Holdings INC THE FUTURE OF REAL ESTATE