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
    Exterior and amenities of 85 Jay Street in Dumbo. (Front & York)
    Two Brooklyn deals inked for $8M last week
    Two Brooklyn deals inked for $8M last week
    740 Park Avenue and 24 Leonard Street (Google Maps)
    Steven Mnuchin’s Park Avenue pad tops Manhattan contracts last week
    Steven Mnuchin’s Park Avenue pad tops Manhattan contracts last week
    (Getty)
    Where the lawsuits challenging NY’s 2019 rent law stand
    Where the lawsuits challenging NY’s 2019 rent law stand
    Steven Mnuchin and 740 Park Avenue (Getty, Google Maps)
    Steven Mnuchin’s $26M home finally finds a buyer
    Steven Mnuchin’s $26M home finally finds a buyer
    Robert Millard and 9 East 88th Street (MIT Corp, Google Maps)
    Former Lehman exec lists Carnegie Hill mansion for $38M
    Former Lehman exec lists Carnegie Hill mansion for $38M
    April’s occupancy levels climbed to 61.6 percent, above March’s 60.9 percent. (iStock)
    Demand for short-term rentals surges past pre-pandemic levels
    Demand for short-term rentals surges past pre-pandemic levels
    Cape Cod and the Jersey Shore suffered among the sharpest inventory declines. (iStock)
    Here’s where homes virtually sold out in the pandemic
    Here’s where homes virtually sold out in the pandemic
    1384 Meadow Lane
    The 20 priciest Hamptons sales this year
    The 20 priciest Hamptons sales this year
    arrow_forward_ios

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

    Loading...