Realogy (RLGY) 29 Apr 212021 Q1 Earnings call transcript

Good morning, and welcome to the Realogy Holdings Corp.

First Quarter 2021 Earnings Conference Call via webcast. Today's call is being recorded, and a written transcript will be made available in the Investor Information section of the company's website tomorrow. A webcast replay will also be made available on the company's website. At this time, I would like to turn the conference over to Realogy Senior Vice President, Alicia Swift. Alicia. ahead, go Please

Good earnings welcome conference Brandy. first the quarter XXXX call. morning, you, to and Realogy's Thank

On the Charlotte call and President, with me today Schneider; Chief are and Financial Officer, Simonelli. Ryan Realogy's CEO

of current As shown making about current expectations statements during and future its are presentation, statements environment. company and forward-looking call. will the statements other the results this on be the based X Slide These on economic the

of uncertainties which subject inherently forward-looking beyond to economic, those and are contingencies, management, projections volume. other or many inventory statements. levels of the and in statements control to and Forward-looking others, from uncertainties the expressed implied of Actual or ongoing are housing strength crisis, competitive the refinancing significant may among results related the materially and including, continued market the COVID differ

to we quarterly those For filings. financial remarks the discussed differ of in from April in those transaction closed that and due today's quarter commencing to been you the in sale to of important experienced information any XXXX crisis, who materially of and on to first reminder rebroadcast contextualize this comparisons important specified volume results Important final that help financial just is today, today our and non-GAAP release. COVID as certain decline home measures call, weeks statements factors as in of Also, open well call, April The subsequent off included in as are month-to-date could open the initial we listen to per then. sharp we a With measures not to cause Last, XX, the seen have the to reflect earnings annual our press that this remarks remind presentation, and XXXX data will actual of the kicking release since assumptions and late to the made SEC in XX, XXXX, rules earnings second turning non-GAAP through XXXX. have in earnings XXXX. back into our second quarter references forward-looking strong positive the recovery be other and in are call. April issued herein the of the transactions made quarter a on SEC regarding continuing these these updated that

Now turn call President, I and call to Ryan CEO will I Schneider. the -- will the our over

made progress. Good line and We Thank everyone. results. line I to incredibly our top substantial delivered you, morning, am growth. excited bottom share very sheet powerful great outsized balance share and Gained Alicia. market QX

actions, strategic for together execution strong the focused market and Our our housing are our momentum building future.

to get operating generated an the Let's above of EBITDA, Realogy million million outstanding QX straight $XXX $XXX quarter. of of highlights XXXX.

achieved businesses year-over-year NAR's Significantly volume now share truly This franchise gain. XX% and third is our XX% grew growth. transaction reported outsized close volume above year-over-year. growth. quarter brokerage Our We consecutive market market of

gained basis points share have the XXX industry lead XX.X% of share. almost XXXX since and We to QX continue with of market

market our gains and market both in as And as we well and both initiatives success. granularly, traction share combination the luxury brokerage our a appreciation. businesses more of outperformed sales are Our price franchise our and strategic unit getting in

our We secured the with home earning produced in a net best and digitizing of its transaction. increasingly balance leverage leverage and both position X.XX growth, EBITDA businesses ratio. senior ratio Our is are bottom strategically we $XX the in line sheet ever and million mortgage a operating title businesses, quarter. sale major And X.Xx expanded

Realogy, excellent quarter an we momentum. and substantial entered was QX for with QX Now

XX% New over and transaction near XXXX. XX% transaction is XXX% ish nearly transaction was All XXXX growth very April And volume up volume term. March The of metrics showing XXXX. home and which transaction month-to-date future our exciting actual is X-X business XXXX XX% sale volume April exciting up versus market robust versus results are to about first open And up the versus positive XXXX. hit versus over in XX%, month-to-date growth and our open drag moved very year-over-year versus for closed since has up in equally City, year. COVID a volume and in been close brokerage the a York March an on time up a tough the

seeing New with and York up rebound about versus XXXX transaction XXXX. City big versus is XXX% volume a March open XX% now up

-- excuse up XXX% April City April transaction New York York versus New versus XXXX. open nearly volume and about and XX% me is City XXXX -- up

we let our me the numbers, where momentum longer beyond powerful term. on comment going strategically Now are near-term in

We more have and been transforming Realogy. leaner innovative. We're faster, we're

are products, important technologies, our this, the To real results the growth deliver and market building you leveraging future current leader substantial integrated some X areas to of while estate. on future for the share drive We growth. let experiences give investing we vectors to color me are customer business where

more And and and RealVitalize, products place propel products productive transaction to at for more and better And to Listing productivity, and others prospects, I market will attractive seeing franchisees. agents like continue results, share data more homes winning manager, Concierge, benefits and growth our leads many engine technology to gains. selling we invest agents unique make Realogy and franchisees in marketing, listings, prices, a innovative we're delivered help we've drive in the recruiting, higher economics First, be

we in are leader luxury. the market Second,

our Banker. position growing Coldwell across We Sotheby's International Realty, are and luxury Corcoran

luxury and and will We and both differentiated domestically our investing products in expansion unparalleled in technologies in luxury networks. continue internationally franchise referral luxury

Third, technology ecosystem advantage. is a our open competitive

better franchisees. support We continue integrations products to while great and develop Realogy technology expanding third-party agents to

the For our example, product MoxiWorks open ecosystem. recently suite to added we

shares open and MoxiWorks track its productivity, technology core architecture record proven our vision. driving strong Beyond

via said access interview, our will really over XX additional both integration. as Our Moxi recent products is internally have third-party agents to expanded businesses. we national journey and our agents to to build also while our good a franchisees strategically I products others and engineering world. to and cloud products have mortgage support And curating to our great from franchisees, strong our title connect Fourth, in

driving our mortgage and mortgage is title in and product in -- are adoption. we large demonstrating title progress growth increases dramatic digital EBITDA, and excuse our title Our me,

invest a special to transaction seamless, for is digital that We home creating focus in continue frictionless consumers an end-to-end easy. and experience these growth for sale businesses with

from real market an great even higher winner Finally, thing The helping the vector. we're about market is both most using of with and win believe offer we a could our opportunity be us offer how one RealSure a the seeing of that a we RealSure pilots. growth agents. listings, Remember, best sellers real sure new to really and exciting a differentiated cash it's like from sure guaranteed the is get home our what that combined ibuying product gives worlds,

are America, and accelerating XXXX. markets. the We expanding partner, venture our Partners of rest for We RealSure XX to Home are joint product of our

We in aggressively direct-to-consumer. growing go markets. are existing And our excitingly, more to beginning going we're be to

close, want increases agents are estate exceptional Realogy's our most customers I franchisees. who demand appreciation great I employees, and I in homes working helping have changes. are of recognize sell before successfully agents and real to our supporting buy customers, field and And both for customer Now hard, as the whom

to recognized incredibly list, what for real XXXX talent our a doing showcase proud hybrid excited future to name be the companies are headquarters we X was on lot. environment, LinkedIn are see pivot we Realogy about I and is this work technology top XX as week companies a to to and brand We of

on off progress up, Realogy and metrics to as profitability So and point drive pulling gain our incredible powerful sheet. start current way to deliver our momentum an great make outsized home XXXX growth, share, is to continued sale we substantial balance

and Our growth will new investments off, existing vectors. continue we both are paying invest in and to

We that, it next we discuss Realogy's to let our more me turn success building over chapter Charlotte our future on With to we write be believe financials. as will are exciting. even the the transformation, of and

operating our Thank a you, revenue everyone. Ryan. EBITDA to QX achieving XXXX, morning, Relate by start far. Good highest record and delivered

simplifying are continue to drive and our cost our streamlining greater and efficiency with savings operating We initiatives. operations

we on to aggressively Our balance going in and its since deleveraging. best sheet continue is execute public, position

delivered shown and strongest more company line financial our QX I our will into top as QX Now go history. results the bottom about presentation. detail in We exceptional in

year-over-year year. to First We $XXX considerable an generated generate to million operating and from billion, retention million quarter prior RBG year. grew by agent of of base EBITDA models EBITDA revenue The up versus franchise for economics maintain business integrated strong billion, operating consider an XXXX, when year, to $X.X our in our we was versus group brokerage $XXX the of XXXX. substantial XX% $XX intercompany negative up million versus value. service you $XX continues EBITDA, increase million, Realogy continue are royalties delivering growth driven X% was enterprise versus levels. $X versus of million whole paid brokerage million segment. $XXX increase and the million $X.X our RBG operating owned prior was increase prior an volume $XXX revenue exceptional

driving retention, investing agent in are business a well agents, that, investments they Business up increase as to similar due in drove in our timing the with basis We the property and higher our points We development our as making also XXX are mix corporate split are and recruiting in impressive mix approximately commission drove predominantly volumes the we splits of and along quarter. exit management in results. business. and like

Realogy the $XXX versus prior per year, for managing exception revenue driven group franchise have versus and quarters, million, operating year. QX X stable growth, COVID. year, million also royalty prior up $XXX, versus held and the are bottom XX% $XX the was strong by volume margins up was $XX We or net amid line with XXXX of up franchise improved last side prior

operating $XX prior Our year. million, million FG increase $XXX EBITDA versus of an was

the million, our up from $XX and headwinds share business. muted business and GRA volumes strength grow beginning $XX of expanding benefited both year. primarily as a due EBITDA remain our drives we relocation. and operating $XX million operating $XX revenue doubled year, are franchise on to Our growth JV together in more the $XX Title portfolio of business. XXXX, by Realogy we of we and loan the million, footprint. geographic refinance are million title, million well and incredibly since significant Title versus by focused in officer in And than driven to increase. revenues as XX% driven we further an but base recognize mortgage in powerful almost our by group prior the contributed leverage other officers of EBITDA In its was increase this prior was underwriter million only revenue earnings, JV decline The loan our versus operating working the QX $XXX of purchase is and while growth JV quarter. across grew revenue,

and Moving balance the sheet. on to cost

work. to of letting has not learned and ways under COVID lessons the a new are catalyst the which finding been go We for better crisis,

As will we previously permanent XXXX. savings million in deliver in identified, $XX cost

of actioned. are XX% and this $XX We over has of million in target QX. ahead plan, been approximately realizing Already

net $XX and million versus at our March ratio secured on cash Even senior executed on quarter repeat that with balance the made The will capital related million $XXX and as as cash Covid approximately the temporary continued X we our savings in lower in our QX QX X/X QX prior progress leverage and and X.XXx revolver. year, ended not recall $XXX QX We of realize improved in savings additional XX. permanent cost X.Xx, of free XXXX we million we with leverage approximately of with was that XXXX. flow please structure in our

regarding about is investing growth. Our earlier we to invest what I top very excited the Ryan multiple are shared for priority business. am the in places

the As delever. of our we incremental pleased start And in term the excess flow an these a to cash we use down reiterate, have CFO, April, $XXX loan To flow as cash base. phenomenal as we make to well million I to to investments XXXX. am ability had paid

executing our We creating driving from and position, efficiencies, value. are deleveraging well leadership

will Realogy's into demonstrated strength, to With and happy lead We resilience future. are the have that, continue your agility we questions. to take and

Instructions]. [Operator

line of comes Your Gaudioso with first question Matt from the Compass Point.

start. Maybe a on just to question great year. a for Ryan the start Congrats to

in both You the market outperforming standpoint market and volume franchise. share with kind brokerage are gains a guys from of clearly

parse geography, from franchises of contribution out sustainability the there the of could then as segment, fluctuates? share and some you drivers on market those between the if some gains wondering Just underlying of maybe Corcoran just comment

you predict. what Look, sustainability happening, what's is the in level talk tried or harder I shooting about give let's Yes. to actually the promise to obviously for, call. high and But the we're

strategic look, initiatives we've So working. first is of the bunch actually a got are that

side the nothing You one, to And of that some win RealSure some cited lift kind I or whether from Corcoran gone of adding to things is goes talked then really listings, other gave. the it And through. right? like us the franchising upscale drive product help that about something now material We've of that I market we're that's that, it's and seeing especially we share. more

kind some QX kind you to kind QX brokerage, from year of feel talked go we've the last strategic very back like And step-up of different last we our so in was hit about we've a year in 'XX. of of if of of Even plus. the stride nice vectors actually

of just that making of there's kind off. strategic we think this list progress So that is we're paying

have both -- other The absolutely moment, -- attractive how of we're right that's just is luxury. grow and equally I about we're our at luxury to our also of like mean, geography, third RealVitalize, of from them, a about And continue are again, and nice strategic the there's engine succeeding, before. part geographically housing spot geographies, architected especially wise, deeper is with we're is called the but that luxury right excited luxury right? just And the go Concierge, Florida that, are strongest market et bit of which, The is we're going kind now. powerful such we've the position. into and always probably company list biggest benefiting like talked But a we right? Listing we're we the a in happy to also others so of leadership out And market cetera. that in one RealSure, to a you initiatives

it. happening we're excited and outperformance, and to pretty So the about that's kind what's of leading

just That's Maybe and helpful to it. color. point Corcoran. put on finer follow-up a Got

driver to -- you Just a what success in those from you executing the size way of And opportunity as share perspective? sales? any is view what then for there been there. the that franchise team market has Clearly, is really

we're we've franchise excited we've Yes. we're wouldn't launched the Obviously, kind where grown have in Well, had done. is opportunity about both we ago more row just substantial, Better quarters in almost X years the made into was that. real our Gardens ago part of if years Corcoran done market, investment and that something a has making now XX Homes think Corcoran we than look, of a has Look, from our didn't a and it turn and to that. Sotheby's launch XX like that

powerful and that. our and other It's But our have it's we different to leisure thing on going and some that. in we a plays So Florida. really, view certain really it and Coldwell than Banker lot We're of like Denver and not of well of its And in upscale a share brands SIR really kind it. brand. luxury markets, Chicago success really in and California

who is Corcoran by in still that's quarter a April. in And the And the for New on drag York And other brokerage our New see thing. a is thing brokerage The this March way, it's back, Corcoran #X is on come Corcoran, XXXX, back From to New City standpoint, been a thing on York York while to Sotheby's think named was City starting Sotheby business for City a both little and we a both the that during basis. that's right? rest of really future brokerage the bit and a exciting there. come year relative for a a and below

McKeveny Your the next line Zelman. with of comes Ryan from question

on Congratulations strong results. the

question. of to bit previous wanted I parlay off So the a

providing which services debate always adding that it adds you're be products et I franchise see you little there's cetera, to about But ongoing the guess, both proposition. And how hear value value we of is the also talk just franchisee of course, to the incremental level think on the guess the much you to and we the both suite, it up at or of products is marketing, around of how the might I yourselves when going you So the side much of economics the agent proposition that outperformance within brokerage pull level? and the and that's that that can things, providing. and a and or sort

agents maybe with that coincidentally through franchise think to proposition where at and the owners. you're feel the So you're that providing help us you just in

Well, also if look, et we any succeed, franchisees, to doing products, mean, we Because if right? money cetera. that -- we're value include to all our got successful. agents succeed agents don't got technology, only for deliver and but they value has franchisees we've about and there being I transactions our make out and economics, are

So third a choices been we're Charlotte accelerating that for The all for having new remain kind success. you're we adding for talked we interest. our is both we executing ecosystem keep on And kind economically technology, years, growth. or of sales have question package that our And think aligned as competitive, pretty a like so strategy and success. then feel proof heard journey franchise is brand about gives us about talk of you've of multi-brand our on building we've of deliver steady incredibly agents, what I opportunity right? last party we're options have especially We substantially. the about of the different success, recruiting for actually people in right? you're quarters, And of kind X numbers. that with the the recruiting also and this very and but if franchisee Consistent, that our those, strategy looking products We talked to things technology. previous couple

be about And seeing company, many products look and great pairing open go a want for technology. building. if human-based today, is gain, as business, of great to has believe architecture example. I our the franchisees, but lot market excited a differentiator, estate you to in pretty at past in and agents power I back improved Remember, however quarters, we're great with share the at a and script, of technology our is we're we're what market performance we've but so And real a great and got kind of also this the for also the the in it said power, that's

sense. Yes, one question And on that the makes announcement. MoxiWorks

York are, great. his So team course, of and

be partnership what see the have been believe the structure might headlines. aspects things can or what exciting happening under at using using. So offering their maybe through of of of franchises there But product the entails might definitely Moxi your previously? current Because kind using different I present talk are that you're agents either versus the now different to were terms you what's or in like brokerage certain

changes kind by it flow-through maybe instance? doing them an corporate on that this? product And to going exactly buying what the with a to off at So own and benefit level, as from for what's of agent opposed them, their

everybody is bit glad errand. in for Zap done anybody look, ability platform, build United like Well, franchisees we're and And agents a industry an contractor But thing, we our which a products diverse deliver in very change, world, we've fool's so this and of ourselves we very diverse brand about. lot we I'm that is strong this a that. independent a the that technology Again, have. geographically there. have actually a them, that to a I of boy, even with of in and large a develop excited and works States in it's belief a diverse for out But

bringing few bringing their presentation we the was their And website all not where It's have here in provide think we our products. it's products of that. side. first product things bigger, great whole had own that they we had with their And for like a relationship integrating the We're love we've not in parts right? some us. tools, just product. Moxi. We're say, because touched doing who bringing MoxiWorks ecosystem. Moxi in everything. than what it We're their would we something, capabilities, We company love of third-party party. bringing had we're their a use is great suite into one much choose present But We product. in thought we're And our recruiting capabilities. new franchisees to CRM, people to from their if We that so a they rather And

from this people. it's going proposition our of our that's then value So We to our of to kind X-X to focused thing and use, And franchisees. it really get they about be want can of everybody integration. we're to first-party for And choose we Moxi the third-party company part this franchisees kind XX, the where be incredibly going already they that have plus through MoxiWorks agents to getting thing. still attractive agents. great. is that. integrations with are enable with that a feedback use. products But architecture, are We've this got access easy on it agrees and built to those and one if who's to to this from again, great And to again, have cloud open franchisees, products, called They've

journey So corporate accelerating a great the at and and big level can architecture ever none do, we and we're individual it. a open we're that really about franchisees just product do great way our can excited our with partner it of in a

Matthew Bouley comes question from the line of next with Barclays. Our

Congrats results. on the

So I the to a tools, many stick of and same topic built could highlighted ecosystem. you out prior answer lot you've organic this technology and the acquisitions, on open with full question, if

point forward the list? from question, that a had an to simplifying growing specific to mentioned follow-up And you direct What everything which seems to one are just tech a need is what actually broader to if Is actually be then wide the you some perspective? think wish do fill value to the question really you just next agents? is, what agent's the on a you and some tools want offering So with hand, going at there streamlining MoxiWorks. you holes and

you years But no a so we're in can right? few a our Look, want can one around than easier Not. and agent, years. days. new. been APIs you me complex, stack, ago, you with you're you It's thing we it's just the than things different don't phone X, easy as technology than an pick on let used intuitive view more in XX these on whatever fact be, apps it. X, one. that Well, not the you as if integrate people from to So do world much start complex some second even could, more for quite big your is than picking problem that we It's X,

so easier are And than open that and problem. they about much ecosystems these don't architect you simpler used the be, now can wide fact means to I the that worry

We a are great because, for going of got aren't about as I some the they -- -- script, the in not products good. franchisees think the curators. in right to choice garden agents and franchisees best this these got any and it. We got our that's unlikely us in open There's meet to evolves. said agents technology closed I and We be not think up industry ecosystems as to use. needs just the be, demand our again, product. the to We excited my having differentiator ecosystem are way power opening We're to it's it. got to developing be But be of

products new of things on we view the I making the question. my one, first are to at better. We gaps your want find that's second all, think want we results. So them to any that in kind drive always innovative don't but On that will today keep have your

thing. big, product and got. going kind I is in that nice think example, can RealSure It's now of it, everybody and is a brokerage we've not pretty agents to use that's a have

agent's And to to infrastructure not unique doing always wanting a work the want company. always even We life But faster. keep then we're market-facing people. as on work go we easier, to there's we stuff to that product. the a also it's if always infrastructure introduce own products makes So want the

they -- on it's and adding is consumer thing. like nowhere of our in digitizing putting but and we're evolves. mean, really the the some great a always So we're what today then early third-party these there is on our transaction, we near evergreen, by a that MoxiWorks effort that over. strong of could things say digital where in right? these products in share I'm do industry innings got some of awesome things. to And covers you they as kind because mortgage I lion's of massively We you to COVID, off the take and joint COVID took invested people it. last in back title providing I'll very continue experiences quarter, digital but they're ways, technology brokerage. it's build of the We've way because And products this have not to told hit, also technology, a of journey business XXXX compared so doing do some of I in the off But the thing final as side think other lot we in as closings We the venture. are old excited

is everybody so talking transaction. And about simplifying the

in trying pieces we have mortgage to to actually that, excited shows be do are We momentum title and and working and up all results. to our these and like the we're It getting.

to think closing and either credit we're for people from going give lot see us than people the focus for to a close contract this that it a are which in of actually home, so of grail, or us making point actually process. I customer holy are experience, technology doing integrated on increasing a simple, more better, And getting your is more experience you would think chasing. at But on

shows I up in think it results. our

Got segue it. next. wanted I That to is very perfect and helpful what is into color a ask actually

inverse like is the on attach rates. the of integrated of question this kind So transaction,

advertise to the the volumes friction actually up have mortgage, number, actually they extent that of looking access big environment, in transaction and portion scale clearly ability home, You agents there's agents? because portion this not that offering the -- and of market agents can to type to have a of a all where the process to for of but buying What to the actually integrated you does offerings what drive any perfect selling footprint. title have

don't enough I like yet. we'd proof have it Well, to.

and much I to think it. the them that technology with Matt, of this, some bluntly really through on agents, ships core and drum to title access that's But think, the I too a and we've just giving job got. done, brokerage pound mortgage owned we've good our

We like our yet. own the ventures have we with not country franchise brokerage are title with title undiscovered in our some big a joint agents way -- do franchisees agents but mortgage ecosystem, are franchisees, we still the

this Now we because of with we do do do an we that's opportunity. more to mortgage. our they can think business. you're owned ability our and also. and XX,XXX interesting, title do non-Realogy good the of, we'd our title about that technology, it an this like The we're more to title it. for opportunity a it And little closing are where the like complicated the franchisees then they in But is last in franchisee. obviously lot agents brokerage mortgage going And of say and quite access to agents more is and working access and I'll on this A really feel to thing

but good actually business And who not numbers, to so with, have going give we doing, comes we're and we're mortgage from cetera. non-Realogy of built like agents the title what a part relationships our et

think doing those just brokerage So we we're what numbers. confining showing up got on think agents side, our some growth here and opportunity. are to we've our the own not we're We in

out of quick have a very the clarification. Got helpful. sneak RFG? Do relo you just broken If within the in I business it. that's contribution No, could

you is down Yes. disclosed due tell relocation. that, script to $XX believe can which was I was is predominantly what I did I my million, say revenue don't but we've the in what

be impact was into EBITDA is the pre-COVID we So and think lapping based on historical move quarter as back start period, you lapping sort QX where piece margins. when COVID we beyond, we're that the will of so I the as not of into could This dramatic. the last what

of from with Your next KBW. comes Tommy question McJoynt the line

of parse share market share market around broadly put it depends just ways numbers you across Do have exactly or you trends market? that? how Obviously, could about to you kind any think some out any high-end way discussed you've But new the the So it. in gains on some define country.

obviously, such in unlikely a band City that's bit disclosing fire, in I seeing know The doing we're Island, it, suburbs to incredibly granularity. geography Westchester little of back there of Southern share price overall again, luxury the big strong powerful in New we and just so as a on But the We New be Jersey, It's in then here, in are of said, Florida, like a including we now and we're of market and we're Connecticut and our And And at, piece the by of just level we're both not Look, our market local that gain. the the clearly everywhere. around we're share right? what kind thing and area. share go and like buy thing right York growth. side. gaining luxury Long out Yes. we're ecosystem. growth to like where architecture -- in

what Some of the it of a of architecture and thing is the where But it's of geography an it. piece is some earlier market Corcoran that we've and expansion up got came is. like also the the

company, in And we better so really overall even feel our really, luxury company. we about in what's good our in what's feel happening but about happening

agents Obviously, among of? turnover guys agents you very are over, switching less are busy And helpful. market. that's seeing now? you industry the in right Any the think sensing with Yes, Okay.

I out right? that pretty Charles about a our part I that, there. of we're think of growth. it's the We're would I agent mean, talked people say succeeding one still are competitive

like better. a than definitely then row, was retention for XXXX, is X much was late improved in 'XX. in improved the kind the and here was how better like it world in in same quarters a was it Our for It's QX QX lot as operating -- of it clearly which of of 'XX and a about back place

still obviously out in showing they're our competitive results numbers. up like it's So we better, But pretty our there. and

good an last if should the just it corporate EBITDA for be basis? segment have rate one, Do could run And a on I you what sneak in. Great.

Yes.

in bad So And half QX keep what phased. and and year timing a the expenses. will first we're the There is more sort It I think the or and year. be just start. year think back of past the we average evenly not X it more be this expenses back But I prior lapping case overweight are some half, mind you could the in year in of over the won't look in that recognize out. employee-related is where

from Your Evercore Kim ISI. line of next with Stephen question the comes

minute, business, aside the do, I know talked way created. more business. to title -- business question been transactions making refi make -- you yet And what look to you the there's also about that really mortgage rates the of there's going mortgage the is directly First business is. low portion and investments it, matter things tied it and that here And the and the a rate the environment obviously already. for if doing to forward. wave put growing bunch that that driver also durable environment relates a of I like No that at you the also seems you're take amount there rate a to has be the related

you you I'm tied in think kind think a be core on is a of model how out earnings if of rates to give that an of can trajectories may is to expect us more next unsustainable different mortgage so much were strong And earnings could and hoping words, -- do level over what the much how do like incredibly do level other of it we year. tied that little to of what perspective the might bit you of be business refinancing maybe activity current we

thoughts a So the longest and We've And refi X%. been a they history. rates of below prolonged extended couple maybe dip down in the in -- different still very gloom, are there.

Keep money near at more about optimistic refi. we're in purchase do that transactions also, make the least to term. on tend versus continuing for mind we So

mix I'm there. very as a very, money that more factor, strong. -- sure think us on And past a lot well that volumes sale There's you have been of gain a purchase the And as making the is margins. EBITDA. competitors the We're as which very impact strong third remain there's over those the year. for So to extent our

a very of piece that going important forward. this And impact so the business profitability third will that's

business more been loan that have officers expense So the impact there continue. will We side, very will the very sale so watch. thing also high getting -- a make a refi definitely the thing in We're on us, continue. leverage that is growing wave gain to important to the of but on on favorable purchase. volumes the Yes,

Got it.

sale say things of more we and to what things half saw And be are would it a half the tied on help maybe wave. refi to of be So quarter is underlying self this that fair like actual initiatives? that maybe from business, could the greater of sort it gain growth in

a gain think worth and the the probably It's estimated. piece you're benchmark, little It's than I more refi a piece. you've on undercutting probably not bad sales but

Yes. That's I helpful. understand.

falling side over hard term. of But mix commissions so commissions question that broader unusually of in would think we're today, wondering a of also more would house is that be versus tied in the a worried buyers like from us Second market commissions seller's come really the to side side because agency fact today. that that the being is of transactions just question really to kind -- many it's to about the I terms strong the sell-side I'm about buy about market long buy buy tell of today. your longer we're market vulnerable term, a agency sellers investors a they're your agency. And in

how increased much may trend? tell sell-side wondering, And so And to side this have to commissions buy longer can compares relative term recently? you the us how I'm the

that about. for pretty only we're symmetric been Look, good about they've period a one and just because The both They've heavy we same get and in and that buyer are also been symmetric think, misperceptions today I demand this few past. some of during bluntly, kind buy in but talked there's So some, sell seller. of symmetric, one maybe thoughts, and you the commissions in. stuff the the there's

been so symmetric. pretty And they've

money to which value actually bit, very and while creates to are market especially some and delivering agents more of intensity our their earning now, might back complexity it's in where comes ticking ABCR you a the see are agents actually can than places. the market the for bunch You of a me, that right the buyers, probably sellers up think lot a a and certain is, that strong given little

mix, time down mostly but that's the watching just right? the bit with the certain is the of overall, talked leverage from time, the been ABCR, what maybe probably about to this it that little buyer, -- bit So are it. bored -- sell in and being buy the said But numbers in a more working a trend a always decade, getting about it for, and I've over same. and Over of you're And last many hearing the and are that you're and we're having I've a people a than times so little seller to. going stripped get then commission

we've gaining share in our share. being And I sales right? more outperformed to We're that's the it's always, and brokerage so be drive has got appreciation. stronger NAR, position had some because market a not our why And we just and helped of the sold. we because saw We're listings share that age you numbers, unit units think, like market price listing. And market the the growth gaining

And power buy customer more you with side, competing other so from is an buyers. ABCR and the just give standpoint, you the does are correct the that listing owning

for get scale, we more disruption and So yet. there's sure numbers hasn't with the size And again, -- about both maybe sides. it in little there. potential about up on our equal But we get a shown

So we that average is been up this a disruption, but bit. of the this demand people numbers the watch fact, in forever. it kind commission have And in have some in broker the high about there. that crazy actually industry other And are rate again, been closely, challenging talking ticking unlike actually in market, disruption even of one hanging things

this of that this industry been for you lot not at a the either many but past has add thing challenging the agents and look value, we Realogy or the has when So years. been watch closely, however

really Yes. helpful. it. I appreciate That's

difference your of you've agents? agents though. that you've on relative business, just your between less have that past productive, There's real in higher part talked versus those maybe actually as whether or upper such curious bit, the on to highest seen shifts the productive a year have always that and business the it as think being a or agents, always we've of the has of focused your lower up performing seriously. share a as to this little any about slice higher gained that experienced -- end more following significant about the not And always newer in important of as Sort an unusual pretty been the if was productivity agents or you lost whether I during the more the hierarchy engine. the actually -- share are

very stayed excuse in But world. phenomenon they're last there, shows of of just did XX me, was best last growth powered And the health when change talking that productive than Charlotte's the Stephen, It's with the like -- through kind by that's look others mix than out thing. because agents about though, highest you average the in why terms at up. up higher QX some have much it Look, it has the it of that getting acceleration all actually did safety way. bit it's agent. year And -- have the those of happened, was continued And strongest, expense think higher it has split QX some financials, of are months. wasn't of the uncertainty, as summer, been gained But the folks been commission a QX share more about it of of in gain it some also been folks one the over better that's great challenges XXXX. gone often kind saw it QX, talked those your volume why we just XX agents. it of in than there. some the it happen, of QX as of our kind producing, different higher again, then economic And No, -- for it's share summer XXXX but we question. but that QX last the didn't both a -- we're of and has different of the costs things been not here, And agents during the XXXX, of of it who last of and the you the our continued, saw of and much

John comes question line final Stephens. from of Your Campbell the with

Stephens. with million so for is question Charlotte, saves the It that, first for picked sounds like of million of there Charlotte. was This you've about $XX speaking already curious is James John of Holly you cost there. about the phasings $XX up would My Campbell provide balance the if color save, of really year. that helpful. the the over a saves the could be then I'm but of on bit sources of And and that

overdeliver did of based. is pretty rest evenly it is evenly little We of first it a The but the in Sure. phased. pretty bit quarter, the rest

it's it's where far about. the coming As as all talking places from, that we've been

it's from we announced, that run lease reduced lease $XX administrative we expense the an of So rate have coming expense. million annualized of

Just because we're There's working differently post COVID. employee-related down. are also expenses that

and lower we're virtually. people We're different expense. lot how also There's they very doing meetings So things whether it's whether a more or the travel, marketing number it's on of doing conferences.

and So those that are we're on see it through journey. the come continue a to areas we

look We continue more savings. for to

we'll And continue feeling place we program for but good to about so in this really that, the have year. do

just here. another great. Okay. Yes, question that's then And

we should the going but about mortgage market. some side a rest you trends tough year. So you're the year, JV here up on But in was million of mortgage broadly, against the that the over last ball up triple comps here? how mortgage crystal origination the JV thinking the the quarter, on for know side, have $XX don't the I of be

great a question. No, it's

earlier the of driven half what refi think and I sale of that driving that by alluded it's ish the margins the on sort on to increases the question profitability sort what's I is and goes gain boom. business to previous and of the it so

So to definitely on you see little on impact basis a a the extent bit, an that those that wane component. year-over-year

a loan of expect officers, piece sale, we on between sizable because part growth on benefit and gain the to impact. you be the for and is operating on sort a leverage has the it However, side which what got purchase have like out you've refi but to increased going

for to I exciting its ride are April our gain day of told near its terms on you'll mortgage sale of sale this what's transaction JV loss. James, metrics And Look, largest Monday able complicated, do term. of home refi of well But as our here. be how as Yes. volume in history to week, On is just purchase can. had kind in like we away and the you happening with ever

more ever in on locked JV Monday its done in have we this history. So business than we

there going not but directions, in Now just things there's then investing, refi, that. sale, but gain is kinds And sale on to things home like definite growing our there's this. officers, lots again, loan transactions, going are underlying some strength strong keep of all we to there is of

purchase our example forward yes, like be results, equivalent comparing pieces good So of examples for was volume excited a I to to and moving -- doing April but of but and we're brokerage. that the Monday lot we mortgages, gave look best the you on to

I to pass along. want So that

for And participation, this you you may does your conclude today's call. Thank conference and now disconnect.