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Anywhere posts declining revenue, losses in ‘incredibly tough housing market’



Earnings Anywhere 1536x681 1

The real estate brokerage and franchisor posted $5.6 billion in revenue during a grueling 2023 while losses improved to $97 million, according to a full-year earnings call on Thursday morning.

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Anywhere Real Estate, the massive franchisor whose brands include Coldwell Banker, Corcoran and Century 21, posted falling revenue in the fourth quarter of 2023, capping off what CEO Ryan Schneider called an “incredibly tough housing market.”

The company reported revenue of $1.250 billion, a 6 percent decrease from the fourth quarter of 2022, when it brought in $1.323 billion in revenue, according to an earnings report released Thursday morning.

Its losses improved year over year to $107 million for the fourth quarter, a far cry from the final quarter of 2022 when its losses ballooned 1,064 percent to $453 million as the market was hit hard by higher mortgage rates.

The brokerage giant reported a net loss of $97 million for its full-year 2023 results, driven by falling revenue as housing transaction volume remained low throughout the year, though its losses improved from 2022 when they hit $287 million. The New Jersey headquartered firm reported $5.6 billion in revenue, an 18 percent decrease from 2022.

“Anywhere demonstrated our leadership strength in 2023, driving meaningful results in a tough real estate market,” Anywhere President and CEO Ryan Schneider said in a statement. “In a potentially improving housing market, we are excited to build on our competitive advantages, accelerate our strategic agenda, and deliver even greater value to Anywhere affiliated agents, franchisees, and shareholders in the year ahead.”

The company finished 2024 with free cash flow of $67 million and earnings before interest taxes depreciation and amortization  (EBITDA) of $200 million — a 55 percent drop from 2022’s EBITDA. The company also reported that it reduced its debt by $308 million during 2023 through debt exchanges, open market bond repurchases and and repayment of a portion of its revolver balance.

Anywhere stock dropped on Thursday morning, falling from $7.64 on Wednesday’s close to $7 on Thursday’s open following the release of the earnings report. It dropped to $6.80 shortly after 10:00 am.

Schneider and other executives expressed optimism about 2024, buoyed by the company’s settling the Sitzer and Moehrl commission lawsuits which Schneider boasted at a recent Inman Connect interview gives the company’s agents “protection” from some of the chaos the industry is braced for following the National Association of Realtors loss in the commission lawsuit.

“Others have written that our position is a competitive advantage relative to the competition who face large judgments or lawsuits, and we agree with that and hope to capitalize on it going forward,” Schneider said during a call with investors on Thursday.

 

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