We are more than halfway through 2022, and real estate financial results for the second quarter have been released by many of the biggest companies in the industry.
Below are highlights of the financial results from Zillow, Anywhere, eXp, Offerpad, Opendoor, Redfin, Rocket Companies, RE/MAX, and Fathom.
Zillow Group Second Quarter 2022 Financial Results
Zillow Group released its Q2 financial results, as well as a new partnership, on August 4, 2022. Here are the highlights:
- Consolidated Q2 revenue was $1 billion, a decrease of 23% year-over-year, but above the midpoint of Zillow’s outlook range.
- Premier Agent revenue decreased 5% year over year to $333 million.
- Rentals revenue decreased 3% year over year to $71 million.
- IMT (Internet, Media, Technology) segment revenue stayed flat year over year at $475 million.
- Homes segment revenue was $505 million.
- Mortgages segment revenue was $29 million, a 49% decrease from Q2 2021.
- Consolidated GAAP net income was $8 million in Q2.
- Consolidated Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $164, exceeding Zillow’s midpoint outlook range.
In addition to the financial results, Zillow announced a multi-year partnership with former rival Opendoor to “transform how people start their move.” Zillow Group remains the top site for consumers, with mobile apps and websites continuing to grow in usage. In Q2, 234 million average monthly unique users opted for Zillow, a 2% increase year over year.
Zillow stands on solid ground and is well-positioned for long-term growth, with a healthy balance sheet, positive operating cash flow, and a trusted household brand. Despite the challenges of the macroeconomic environment, we’re making strides in key growth areas — including financing, touring and seller solutions — that get us closer to our vision of an integrated digital experience to help customers with all their real estate needs in our ‘housing super app.
Anywhere Second Quarter 2022 Financial Results
Anywhere Real Estate Inc., formerly known as Realogy, is the largest full-service real estate services company in the United States. The highlights from Anywhere’s Q2 2022 financial results include:
- Generated Revenue of $2.1 billion, a decrease of 6% year-over-year, was largely impacted by the absence of revenue from our former title underwriter business due to its sale in the first quarter of 2022 as well as lower homesale transaction volume.
- Reported Net income of $88 million and basic earnings per share of $0.76, a decrease of $61 million or $0.52 per share vs. the prior year.
- Generated Operating EBITDA of $202 million, a decrease of $108 million year-over-year
- Generated Free Cash Flow of $70 million vs. $243 million for the corresponding quarter last year
- Combined closed transaction volume decreased 6% year-over-year.
- Anywhere Advisors agent count grew 6% year-over-year (excluding the impact of an acquisition of a large franchisee in the second quarter of 2022), the eighth consecutive quarter of sequential growth, and continued to maintain strong retention levels.
Even in a much tougher housing market, Anywhere delivered the solid profitability and Free Cash Flow that we believe the market is increasingly valuing. Anywhere continues to invest in the business, especially our strategic focus on simplifying and reimagining the home buying and selling experience for consumers as we leverage our strong financial profile and demonstrated ability to deliver results.
eXp World Holdings Second Quarter 2022 Financial Results
It’s widely known that eXp ended 2021 debt-free. Now in 2022, the holding company for eXp Realty®, Virbela and SUCCESS® Enterprises continues to have a strong financial outlook. Here are eXp’s Q2 financial highlights:
- Revenue increased 42% to $1.4 billion year over year.
- Gross profit increased 34% to $107.3 million, as compared to Q2 2021.
- Net income of $9.4 million, compared to net income of $37.0 million in the year-ago quarter. Year over year tax expense increased $22.3 million due to one-time VA allowance release in 2021 and reduction in excess stock based compensation tax benefit.
- Adjusted EBITDA (a non-GAAP financial measure) of $26.9 million.
- As of June 30, 2022, cash and cash equivalents totaled $134.9 million, compared to $107.4 million as of June 30, 2021. The Company repurchased approximately $50 million of common stock during the second quarter of 2022.
During the second quarter, eXp continued to increase its market share and revenue to record levels, reinforcing that our model was built for all market conditions and that our agent value proposition resonates around the world. We are focused on strengthening our platform to provide even better support to our agents through technology, operations, training, coaching and community…. We are leveraging our core strengths of agent satisfaction and innovation as we continue to redefine the real estate industry.
Offerpad Second Quarter 2022 Financial Results
Offerpad Solutions Inc., the residential real estate tech-enabled platform, released its Q2 financial results. Here are the highlights:
- Net Income increased 26% to $11.6 million year over year.
- Adjusted Net Loss was $1.0 million, or $0.00 per share, compared to $9.2 million in Q2 2021.
- Adjusted EBITDA increased 5% to $13.7 million year over year.
- Gross Profit increased 83% to $93 million, compared to Q2 2021.
- Contribution Margin After Interest per home sold was $28,500, compared to $31,500 in the previous year’s second quarter.
I’m incredibly proud of the team. In the first half of this year, Offerpad already generated nearly $2.5 billion in Revenue and Net Income of $52.5 million. We are entering this temporary transition period from a position of strength. As the market moves from a sellers’ to a buyers’ market, we expect to have greater access to inventory and new opportunities as one of the largest home buyers in the country.
Opendoor Second Quarter 2022 Financial Results
- Revenue of $4.2 billion, up 254% versus Q2 2021; with 10,482 total homes sold, up 201% versus Q2 2021.
- Gross profit of $486 million, a 206% increase over prior year.
- Net loss of $(54) million, versus $(144) million in Q2 2021.
- Adjusted Net Income of $122 million, versus $3 million in Q2 2021.
- Contribution Profit of $422 million, a 230% increase over prior year.
- Adjusted EBITDA of $218 million, versus $25 million in Q2 2021.
- Inventory balance of 17,013 homes, representing $6.6 billion in value, up 143% versus 2Q21
- Purchased 14,135 homes, up 66% versus 2Q21
We are proud of how we served our customers and of our financial performance in the second quarter. Revenue grew over 250% year-over-year, with gross profit of $486 million and Contribution Profit of $422 million—the highest of any quarter. These results enabled us to deliver a record first half of 2022.
Redfin Second Quarter 2022 Financial Results
Redfin Corporation’s Q2 2022 financial highlights include:
- Revenue was $606.9 million, an increase of 29% year over year.
- Gross profit was $118 million, a decrease of 6% compared to Q2 2021.
- Real estate services gross profit was $74.1 million, a 16% decrease year over year.
- Real estate services gross margin was 29%, compared to 35% the previous year.
- Net loss was $78.1 million, compared to $27.9 million in Q2 2021.
- Adjusted EBITA loss was $28.6 million, compared to adjusted EBITDA incomes of $2.8 million in the second quarter of 2021.
The housing market took a turn for the worse in the second quarter. But I have never been more proud of how this company has responded: we cut costs, grew traffic, accelerated share gains and loyalty sales, lowered voluntary attrition and, for the first time since April 2020, improved the rate at which people buying homes stuck with a Redfin agent. Our rentals business recorded its first quarter-over-quarter revenue gain since 2017, and re-launched itself across every platform as Rent. Best of all, the rate at which Redfin homebuyers got a Redfin mortgage hit 15% in July, a near doubling of the all-time high before 2022. For the quarter, title attach rates more than doubled year over year. There will be more market ups and downs in the road ahead, but our whole engine to drive traffic, brokerage share, customer value and monetization is running more efficiently than ever.
Rocket Companies Second Quarter 2022 Financial Results
Rocket Companies, Inc, which includes Rocket Mortgage, Rocket Homes, Rocket Money and Rocket Auto, announced financial results for Q2 2022. Highlights include:
- Generated Q2 net revenue of $1.4 billion and net income of $60 million.
- Delivered strong gain on sale margin of 292 basis points.
- Over 2,000 Rocket team members deployed to accelerate build-out of Rocket platform.
- Unified Rocket brand, rebranding Truebill to Rocket Money, and Edison Financial to Rocket Mortgage.
- Signed new agreements with Santander and Q2 digital banking platform.
As the mortgage market continues to transition, we are actively investing in our business and transforming the Rocket services and engagement platforms to better serve our clients. In the second quarter alone, Rocket Companies introduced new lending programs, forged new mortgage partnerships, officially launched our solar business and expanded our brand deeper into Canada. These moves provide us immediate opportunities today, and a tremendous runway for growth and expansion well into the future.
RE/MAX Second Quarter 2022 Financial Results
RE/MAX Holdings, Inc. released the following Q2 2022 financial highlights:
- Total Revenue increased 19.3% to $92.2 million, compared to Q2 2021.
- Revenue excluding the Marketing Funds increased 17.0% to $69.3 million year over year.
- Net income attributable to RE/MAX Holdings, Inc. of $5.8 million and income per diluted share (GAAP EPS) of $0.30.
- Adjusted EBITDA increased 14.4% to $35.1 million, compared to Q2 2021.
- Total agent count increased 2.7% to 143,939 agents
Our strong second-quarter results demonstrate the strength and resilience of our 100%-franchise model, particularly amid shifting housing market conditions. RE/MAX INTEGRA’s North American regions again contributed meaningfully to both our top-line and bottom-line performance. Motto, which opened its 200th franchise during the quarter, continues to grow and RE/MAX agent count reached another record high driven by Canadian and global growth.
Fathom Second Quarter 2022 Financial Results
Fathom Holdings Inc., a national platform integrating residential brokerage, mortgage, title, insurance, and SaaS offerings, announced financial results for Q2 2022. Highlights include:
- Total revenue increased 52% to $128.2 million compared to Q2 2021.
- GAAP net loss totaled $5.7 million, compared with $2.1 million the previous year.
- Adjusted EBITDA loss was $1.9 million, compared to $2.3 million in Q2 2021.
- Fathom completed over 13,200 transactions, a 32% increase year over year.
Growth in our key metrics this quarter, even with less-than-ideal market conditions, reflects our ability to provide agents with the opportunity to keep significantly more of their hard-earned commission dollars. We believe that competitive advantage should serve us well over the long-term….While Fathom is not immune to this unprecedented market, and there possibly will be additional challenges to manage through, we strongly believe that the value we provide to our agents, our model and our execution will continue to drive growth into the future.
Now that we have entered the second half of the year, we’ll continue to keep you updated on how industry giants fare in this new market.