RE/MAX revenue ticks up in Q4 but profit sinks

For full year, brokerage benefited from surge in home sales; weighed down by acquisition expenses

National /
Feb.February 26, 2021 04:30 PM
RE/MAX CEO Adam Contos (Facebook)

RE/MAX CEO Adam Contos (Facebook)

RE/MAX reported a modest increase in revenue but a sharp drop in net income for the final three months of 2020. The company benefited from the surge in home sales that followed pandemic lockdown measures; it attributed the profit decline to rising broker and other personnel costs related to acquisition expenses.

RE/MAX reported $72.4 million in revenue in Q4, roughly 6 percent over the $68.2 million in the same period the year before. The quarterly revenue growth came as home prices continued to rise amid strong demand and historically low inventory.

For the year, revenue was $266 million, down from $282 million in 2019.

In a statement, CEO Adam Contos said “despite the pandemic, we delivered good organic growth, resulting in better-than-expected fourth-quarter revenue and profit.” He called the surge in home sales and price growth “a nice tailwind heading into 2021.”

Net income from October through December was $1.29 million, down 55 percent from $2.88 million in 2019. For the year, net income was $10.9 million, down from $25 million in 2019.

“Selling, operating and administrative expenses increased primarily due to higher equity-based compensation expense, discretionary bonuses, and increased personnel costs largely from acquisitions,” the company noted. It said some of those costs were offset by belt-tightening measures implemented throughout 2020.

Near the end of the third quarter, the brokerage acquired two companies: Wemlo, a 20-month-old mortgage processing startup, and Gadberry Group, a location intelligence data firm that RE/MAX has worked with since 2019.

RE/MAX agent headcount in the U.S. stood at 62,303 last year. That was about 800 fewer agents than it had in 2019. But with growth in Canada and other markets outside the U.S., global headcount increased to 137,792, from 130,889 in 2019.





    Related Articles

    arrow_forward_ios
    Steve Cohen and One Beacon Court at 151 East 58th Street (Corcoran, Getty)
    Manhattan luxury market sees best week since 2013
    Manhattan luxury market sees best week since 2013
    Solow Building Company chairman Stefan Soloviev, CEO Michael J. Hershman and vice chairman Hayden Soloviev (Solow Residential, Fairfax, LinkedIn)
    Stefan Soloviev, Sheldon Solow’s son, reorganizes family firm
    Stefan Soloviev, Sheldon Solow’s son, reorganizes family firm
    This Brooklyn Heights home went into contract at $2,184 per square foot. (Compass)
    $14M house topped Brooklyn’s luxury listings last week
    $14M house topped Brooklyn’s luxury listings last week
    Ai Weiwei with 708 New Forge Hallow (Getty, Compass)
    Ai Weiwei–designed home sells for $5M
    Ai Weiwei–designed home sells for $5M
    Assemblyman N. Nick Perry and Sen. Brian Kavanagh (Getty, iStock, NY State Assembly)
    New bill would force co-op boards to explain rejections
    New bill would force co-op boards to explain rejections
    The state has opened 52 more investigations into potential fair-housing law violations tied to the Newsday report (iStock)
    Agents named in discrimination exposé face discipline from state
    Agents named in discrimination exposé face discipline from state
    Vorea's Peter Papamichael. (Google Maps, Vorea Group)
    LIC development site under contract
    LIC development site under contract
    Celebrity broker Ryan Serhant is renting his Hudson Square penthouse. (Serhant)
    Ryan Serhant rents Lower Manhattan penthouse for $15K
    Ryan Serhant rents Lower Manhattan penthouse for $15K
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...