Douglas Elliman Inc. · NYSE:DOUG
Douglas Elliman — Q1 2023 Earnings Presentation
23 slides from Douglas Elliman's earnings presentation, May 11, 2023
Slide 1: Investor Presentation May 2023
June 2021 / Confidential Investor Presentation May 2023
Slide 2: Disclaimer
2 Disclaimer This document and any related oral presentation does not constitute an offer or invitation to subscribe for, purchase or otherwise acquire any securities or other instruments of Douglas Elliman Inc. (“Douglas Elliman Inc.”, “DOUG” or “the Company”) or its subsidiaries and nothing contai
Slide 3: Investment Highlights
3 Investment Highlights Unique Investment Opportunity in Tech-Enabled Residential Real Estate Brokerage with Comprehensive Suite of Real Estate Solutions, Industry-leading Brand Name and Talented Team of Employees and Agents Cutting-edge property technology supportive of agent recruitment, retention
Slide 4: Founded in 1911 as a pioneer in the real estate industry
4 Founded in 1911 as a pioneer in the real estate industry that has continued to challenge the status quo through innovation and high- quality service provided by best-in-class real estate agents Leading brand associated with service, luxury and forward thinking operating in markets that are pri
Slide 5: Douglas Elliman's Geographical Footprint
5 Douglas Elliman’s Geographical Footprint ~6,900 affiliated agents across approximately 120 U.S. offices Alliance with Knight Frank provides an international network of an additional 367 offices across, 52 countries and approximately 17,000 agents #5 Nationally One of the Largest in New York Califo
Slide 6: Comprehensive Solution Provides for Multiple Revenue Streams
6 Comprehensive Solution Provides for Multiple Revenue Streams • DEDM offers expertise in sales, leasing and marketing for new developments throughout key markets in the United States and internationally New Sales and Development Marketing Platform • Advising sellers: Assist in pricing a property an
Slide 7: Industry-leading Brand Name with a Strong Presence in U.S. Luxury Markets
7 LTM 3/31/2023 Average(8): $1,616.2 Industry-leading Brand Name with a Strong Presence in U.S. Luxury Markets $1,616.3 $1,088.7 $699.0 $365.9 Douglas Elliman Compass Anywhere eXp Realty Highest Transaction Values in the Industry Average Selling Price (2022)(7) ($ thousands) Leading Presence in Larg
Slide 8: Cutting-edge Technology Supportive of Agent Recruitment, Retention and Productivity
8 Cutting-edge Technology Supportive of Agent Recruitment, Retention and Productivity Powered by industry leading technology capabilities developed by innovative PropTech leaders and start-ups • Premier, customizable, mobile-friendly and cloud-based agent portal that integrates all agent resources i
Slide 9: MyDouglas | Complete Set of Capabilities
9 * New Valley Ventures PropTech Investee Company MyDouglas | Complete Set of Capabilities Capabilities Solutions Artificial Intelligence (“AI”) and Predictive Analytics Team Management Agent Social Media • Learning Management System • MyDouglas Team Views • Team Deal Management Agent Brand Manageme
Slide 10: Open Architecture Technology Infrastructure
10 Open Architecture Technology Infrastructure Open Architecture Technology Infrastructure, Kept State-of-the-art Through Strategic Investments in Early Stage PropTech Companies with Technology Purpose-built for the Real Estate Industry Key Benefits of Our Technology Strategy Recent PropTech Investm
Slide 11: Strong Platform for Continued Long-Term Growth
11 • Further grow leadership position in New York while entering and expanding into adjoining markets where the Douglas Elliman brand has strong awareness and brand equity, including Florida, California, Colorado and Texas • Recent entry into the DC Metro, Las Vegas, Austin, Dallas and St. Petersbur
Slide 12: Strong Platform for Long-Term Continued Growth (Cont.)
12 FloridaTexasCalifornia • High profile recruitment of teams in Naples, Vero Beach, Fort Lauderdale and Ponte Vedra Beach in 2021 and 2022 • Purchased interest in Texas brokerage in 2021 • Purchased Teles Properties in 2017 Overview • Ability to expand in luxury markets in southwest and north Flori
Slide 13: Strong Platform for Long-Term Continued Growth (Cont.)
13 $201.5 $197.7 $15.2 $23.5 $35.4 $42.0 $15.3 2019 LTM 3/31/2023 Other OpEx Technology Activity Driven Operating Expenses Acquisitions Strong Platform for Long-Term Continued Growth (Cont.) Invest in Compelling PropTech Opportunities that Facilitate Growth and Differentiation Relentlessly Pursue Op
Slide 14: Douglas Elliman Financial Overview
DOUGLAS ELLIMAN FINANCIAL OVERVIEW
Slide 15: Attractive Financial Profile
15 Attractive Financial Profile 1) As of March 31, 2023. Please see page 21, “Consolidated Balance Sheet" of Douglas Elliman Inc. Disciplined expense management drives significant operating leverage Strong performance across KPIs Operating leverage and limited capital expenditure requirements drive
Slide 16: Financial Summary
16 Financial Summary 1) Operating (loss) income for the real estate brokerage segment was $(3.5) million, $(49.3) million, $102.1 million and $22.0 million for the years ended December 31, 2019, 2020, 2021 and 2022. Please refer to Page 22 for a reconciliation from Net Income to Adjusted EBITDA attr
Slide 17: Business Mix
17 Business Mix $18.2 $22.4 $24.6 $25.4 $28.1 $28.8 $29.1 $51.2 $42.9 $38.6 2014 2015 2016 2017 2018 2019 2020 2021 2022 LTM 3/31/23 LTM 3/31/2023 Revenue Gross Transaction Value ($ billions) $936.6M $70.3M $35.6M $15.8M $1.058B Commissions and Other Brokerage Income – Existing Home Sales Commission
Slide 18: Investment Highlights
18 Investment Highlights Unique Investment Opportunity in Tech-Enabled Residential Real Estate Brokerage with Comprehensive Suite of Real Estate Solutions, Industry-leading Brand Name and Talented Team of Employees and Agents Cutting-edge property technology supportive of agent recruitment, retentio
Slide 19: Appendix
AB |: UPLUI]]-]SLIS APPENDIX
Slide 20: Combined Consolidated Statement of Operations
20 Combined Consolidated Statement of Operations Three Months EndedYear Ended LTM 3/31/20233/31/20223/31/202312/31/202212/31/202112/31/2020 Revenues: $1,006,812$295,109$202,036$1,099,885$1,292,416$733,751 Commissions and other brokerage income 35,6009,199 8,77736,022 37,345 35,115 Property managemen
Slide 21: Consolidated Balance Sheet
21 Consolidated Balance Sheet December 31,March 31, 20222023 ASSETS: Current assets: $163,859 $123,662 Cash and cash equivalents 23,243 24,227 Receivables 12,82619,507 Agent receivables, net 6,4667,647Income taxes receivable, net 4,9855,404 Restricted cash and cash equivalents 13,68617,613Other curr
Slide 22: Adjusted EBITDA Reconciliation
22 1) Represents equity in (earnings) losses recognized from Douglas Elliman’s investment in equity method investments that are accounted for under the equity method and are not consolidated in Douglas Elliman’s financial results. 2) Represents restructuring related to Douglas Elliman Realty, LLC’s
Slide 23: Adjusted Operating Expenses Reconciliation
23 Adjusted Operating Expenses Reconciliation LTMThree Months Ended Three Months endedYear EndedYear Ended 3/31/20233/31/20223/31/202312/31/202212/31/2019 $1,094,487$301,021$237,790$1,157,718$787,588Total Operating Expenses(1) Items excluded from total expenses to determine Real Estate Brokerage Seg