Re/Max Holdings Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Anthony Paolone - JPMorgan Chase & Co - Analyst : Thanks, and good morning. First question is, with regards to some of the personnel changes you've made and some of the initiatives you've talked about like lead concierge and the media efforts, like what are the sort of additional revenue opportunities that you see? Do any of them rise to say the size of a motto? Just trying to understand how much of the effort here is around. New revenue streams versus just the overall customer experience around what you have currently.

Question: Anthony Paolone - JPMorgan Chase & Co - Analyst : Yes, that's great, and we'll look out for the headlines, I guess. And then just my follow up is really on broker commissions. Can you give us just your thoughts on what you're seeing in the system right now in terms of how buyers are approaching the new rules and any change in rates you're seeing?

Question: Anthony Paolone - JPMorgan Chase & Co - Analyst : Okay, thank you.

Question: Nick McAndrew - Zelman & Associates - Analyst : Hey guys, this is Nick from [Ryan]. Thanks for taking my questions. Carrie, maybe one for you just to start, obviously being very diligent on the cost side of things, wondering if you can just touch on some of the major buckets that you've been able to strip out costs from over the last year, but also how you're thinking about any incremental opportunity into 2025 for further savings.

Question: Nick McAndrew - Zelman & Associates - Analyst : Got it. That's helpful. Thank you. And then maybe switching gears for the follow up on the US agent side of things, are there any trends to call out kind of beneath the headline numbers, whether that's by geography or agent segments of at least kind of are you seeing any shift in the demographic of agents joining the network? Are they newer agents? Do they come over from teams or independent brokerages, just any colour to add there? Thanks.

Question: Nick McAndrew - Zelman & Associates - Analyst : He's around here somewhere.

Question: Nick McAndrew - Zelman & Associates - Analyst : Great thanks Eric.

Question: Ronald Kamdem - Morgan Stanley & Co LLC - Analyst : Hey, just two quick ones. One is just on the both on the US agent count and the outside of the US agent count, just curious if you could provide just a little bit more colour on sort of what's driving the attrition. I is there anything new versus the past 12 months that's driving some of the downside on the US and actually the upside on the international, and is there sort of a different tact or strategy that You guys have taken or planned to take to continue the trends outside of the US and sort of improve the trends in the US if that makes sense.

Question: Ronald Kamdem - Morgan Stanley & Co LLC - Analyst : Great. And then just another quick update on, I think there was a Canadian substantial agreement in Canada. I think the company is still waiting on the appeals process for the USD55 million settlement. Just curious after sort of those two, does that address sort of all the litigation that's sort of mentioned in the 10K or are there other sort of stuff that we're waiting on? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 21, 2025 / 1:30PM, RMAX.N - Q4 2024 Re/Max Holdings Inc Earnings Call

Question: Ronald Kamdem - Morgan Stanley & Co LLC - Analyst : Great, that's it for me. Thanks so much.

Question: John Campbell - Stephens Inc - Analyst : Hey guys, good morning. maybe, let's start, with our four. I know you've got that around the corner. I appreciate you've got to hold the line a little bit on the commentary around some upcoming changes. Sounds like you guys have some stuff up the sleeve there, but. it sounds like you kind of hinted at Remax.com and maybe envisioning a different way to maybe present that to consumers, but just kind of tying this back to CCP, that's obviously the big battleground topic these days. 11 of your public competitors is kind of the. Public figure, on the anti-CCP side of things, they've gotten obviously investors on board with their strategy, they, they're kind of got people on board with the view that they can compete with Zillow and Real.com and whatnot and kind of be a portal. That looks like it's doubled over the last month. I'm hoping, you can maybe refresh us on Re/Max's latest stance on CCP and then what extent you can, maybe talk about how, you're envisioning, that kind of direct consumer access over time.

Question: John Campbell - Stephens Inc - Analyst : Okay, that's a great response and sorry to position that with our four around the corner. I know it's kind of difficult to answer, but, okay, so, Kerry, let's talk about the appetite for buybacks, you mentioned the stock dislocation, hoping we can revisit that commentary. I guess just first, what are your limitations from a covenant standpoint and then how much capacity do you have like how back we can, a buyback can be for you guys?

Question: John Campbell - Stephens Inc - Analyst : Okay, that's helpful and then I maybe just to act this on so priorities right now reinvestments in the business, buybacks, and then eventually potentially the dividends.

Question: John Campbell - Stephens Inc - Analyst : Okay, Thank you

Question: Tommy McJoynt - Keefe, Bruyette, & Woods, Inc - Analyst : Hey, Good morning guys. Thanks for taking my questions. Just a couple questions around the guidance, so first off, looking at the revenue, excluding the marketing funds, it looks like the guidance points to anywhere from down 4% to up 3%. Could you help us maybe, think about what's contemplated in there for the more volume sensitive brokerage fees versus the recurring revenues in in that guidance number.

Question: Tommy McJoynt - Keefe, Bruyette, & Woods, Inc - Analyst : Great, appreciate that. And then separately, are there any one-off costs or margin headwinds that are associated with some of these new product and program build out that we should keep in mind that that are contemplated in the 2025 Ebi number?

Question: Tommy McJoynt - Keefe, Bruyette, & Woods, Inc - Analyst : Makes sense. Thanks.