Anywhere Real Estate, Redfin and Opendoor Report 3rd Quarter Financial Results

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Anywhere Real Estate has reported

A disappointing third-quarter earnings, missing both revenue and earnings estimates. For the quarter ending September 30, 2024, Anywhere Real Estate generated $1.5 billion in revenue, a slight 3% year-over-year decline. The company reported a net income of $7 million, a sharp drop from last year’s $122 million, largely due to the absence of debt extinguishment gains.

Anywhere Real Estate, which owns well-known brands like Coldwell Banker, Century 21, and Sotheby’s Realty, reported earnings of only 5 cents per share, well below analysts’ expectations of 23 cents. This marks a -78% earnings surprise compared to last year’s 15 cents per share.

CEO Ryan Schneider emphasized Anywhere Real Estate’s strong operating EBITDA and free cash flow, alongside strategic investments to drive growth, including its expansion in the luxury segment. Anywhere Real Estate’s Corcoran and Sotheby’s brands outperformed the market with a 5% growth in transaction volume, highlighting some bright spots amid a challenging quarter.

Additionally, Anywhere Real Estate announced $99 million in free cash flow, a modest increase over last year. The company also achieved $30 million in cost savings for the quarter, keeping Anywhere Real Estate on track to meet its goal of $120 million in savings for 2024. Anywhere Real Estate remains focused on optimizing operations and strengthening its portfolio to deliver future value for shareholders.

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Redfin’s Q3 Revenue Rises, Losses Persist

Redfin Corporation has reported mixed results for its third quarter, ending September 30, 2024. Revenue rose by 3% to $278 million, while gross profit increased 4%, totaling $101.9 million. However, the company posted a net loss of $33.8 million, compared to a net loss of $19 million in the same period last year.

Real estate services, which account for a significant portion of Redfin’s business, saw a decline in gross profit, falling 10% year-over-year. The company also reported a drop in gross margin, which stood at 28%, down from 30% in Q3 of 2023. Adjusted EBITDA came in at $3.9 million, down from $7.7 million last year.

Despite the losses, CEO Glenn Kelman expressed optimism, noting that Redfin is already seeing improvements from its shift to a commission-based agent model and expects market share and revenue growth in the fourth quarter. The company is also focused on expanding its digital tools, including its AI-powered home design feature and nationwide rental services.

Looking ahead, Redfin forecasts revenue between $237 million and $247 million for the fourth quarter, with a potential net loss between $32 million and $25 million.

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Opendoor’s Revenue Climbs Amid Market Challenges

Opendoor Technologies has reported strong third-quarter results, despite ongoing challenges in the housing market. For the quarter ended September 30, 2024, the e-commerce platform for real estate transactions posted revenue of $1.4 billion, marking a 41% increase year-over-year, although down 9% from the previous quarter. The company sold 3,615 homes, up 35% compared to last year.

While gross profit rose to $105 million, the company faced a net loss of $78 million, an improvement from last year’s $106 million loss. Opendoor’s adjusted EBITDA showed a loss of $38 million, but this was still an improvement over last year’s loss of $49 million.

CEO Carrie Wheeler noted that while the housing market continues to face headwinds, including high mortgage rates and low affordability, Opendoor exceeded its own financial guidance. The company is streamlining its operations and expects to save approximately $85 million annually starting in 2025.

Looking ahead, Opendoor projects revenue between $925 million and $975 million for the fourth quarter, with a contribution profit of $15 million to $25 million. The company remains focused on positioning itself for growth as market conditions improve.

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