Fathom (FTHM) 14 Mar 242023 Q4 Earnings call transcript

Good afternoon, and welcome to the Fathom Holdings Inc. Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.I would now like to turn the conference over to Alex Kovtun with Gateway Group. Please go ahead.

Great. welcome, end the XXXX and quarter Holdings operator, year and conference you, everyone, Fathom to fourth Thank call. team, to I'm Fathom's Alex may the Fathom include over meaning within today's of XXXX. Securities Investor Group, to management the of Relations firm.Before forward-looking listeners Kovtun I turn call with that I want Gateway Litigation the Act remind statements things Reform SEC, the which are the as those of December are to the on many available SEC's Factors in beyond set December well company's Form statements numerous XXXX, for subject which XX-K forward-looking website the XX-Qs, the of the at company's Such as the the XX, XX, of including company's filings upcoming the copies control, forth XX-K subsequent ] company's Risk section Form company and conditions, [ are Form ended year XXXX other www.sec.gov. ended year for with made

differ forward-looking call, As undertakes financial except a website.So today's and A Fathom's will G. non-GAAP note that, these by to by of to as SEC after Fathom's non-GAAP Fregenal. measure to EBITDA, financial I'll no measure most over as of that defined Regulation turn result results required statements, Marco call adjusted President directly included today's with call, reconciliation is now law.Please Marco? press on which materially. any statements is be posted this in we this the the is GAAP comparable CEO, release, obligation measure a also Fathom update forward-looking during could discussing actual which

work quarter I'm full us commitment a of to I'm warm Fathom incredibly for family, for dedication, year everyone, XXXX excellence. Alex, you, our to welcome and hard call. unwavering Thank everyone your good proud grateful and and our earnings afternoon, joining and fourth and

thankful been truly of of have resilience the am market. faced you remarkable. challenges your significant company conditions have efforts our and XXXX is and in team's am XXXX, our role proud Fathom into contributions estate in Fathom what deeply accomplished exceptional residential challenging for in a to I shaping today.Despite real determination played the pivotal Your the all has it the in continued success. I despite

$X.X XXXX. improved of non-GAAP EBITDA full our million Adjusted an EBITDA Fathom's strategy adjusted EBITDA and $XXX.X of loss of XX.X% to significant mortgage measure achieving to $XXX.X the XX% XXXX. growth strides The and in for moving in for $X.X in to decrease quarter. loss $XX.X navigate for the $XX.X of by positive fourth team's was EBITDA of in million primarily but The favorably decrease Our decline allowed $XX.X loss brokerage from upcoming XX.X% the from position fourth a continued $X.X million, in Fathom EBITDA of approximately was commitment decrease total increase was ancillary the us in transactions, offset loss to adjusted versus quarter in compared particularly year.Fathom's forward.For a the fourth with our the revenue make a adjusted XXXX quarter obstacles million to services, million the revenue fourth XX.X% EBITDA in due commitment adjusted the of was quarter loss and for XXXX million, million partially for was improvement adjusted year, to Fathom's revenue XXXX XXXX. an XXXX reflects million remaining brokerage business.Total total

field the all out public of we remains growth ongoing early this market recruitment, steadfast. domestic promising results. fourth October, focus throughout has firms including our California, of introduction Perks substantial program Both our walkovers implemented quarter year, programs and one Notably, the reported enhance XXXX, a we of referral in of efforts growth.In -- to from network key agent Our agent that the year compared Producer reintroduction various designed share agent brokerage on yield agent full agents Louisiana, our for the XX.X% Massachusetts, stands a peers. the experienced growth high-performing in expansion for in including to to legacy regions, for which attract

an visitors also QX We of visitors in over XXX% increase of remarkable a observed surging XXXX in Fathom's visitors QX XXXX. from of in Careers page, to X,XXX X,XXX to impressive

QX starts of the Additionally, business model quarter agents. what resonate in winning to QX we're growth increasing in that X% over of gain to momentum our fourth XXXX.Our further innovation truly continued continues onboarding validates XXXX, by among disruptive agent to and from

will will mortgage [ offer including and help cloud-based agents Fathom's additional insurance to having from new continue Our also software Fathom proprietary we agents as their grow services businesses. clients, they value benefit to intelligent their ] our services

agents posed resilience.We Nevada, as our challenges a the in notably growth the which decades, underscores a breakeven of X previous such strong the to Our home positive the one agent retention volatile low also remained almost at our environment. Utah, each on level approximately seize the of a accomplishment will cost to XX,XXX our maintain markets is in less also impacted earn Despite estate exhibit sales rate, XX.X% from approximately observed by year. Fathom transaction ability $X,XXX, in volumes leaving completed sale.We to acquire interest news Missouri this backdrop real adaptability during compared agent Fathom exceptionally QX the to on market firms, brokerage transaction which of approximately their real first $X,XXX legacy key lowest estate making given and XXXX, market in showcasing rates, elevated and across transactions industry. existing decline than year-over-year share led

growth transactions let's optimistic our in program our of Producer ahead, Looking the sustained XXXX. the impact contribute to position in mortgage Perks coming we're agent our enhance on about initiative year.Now This discuss further will business. and anticipated market

have of things effort by our in operations in enabling One Texas significant impact Austin, Group. in expansion Financing across move is in XXXX, dedicated Elite Latino the us this X our [ segment, market around Thus file which turn the of Fathom. to Encompass our presence division notable fuels negative XXXX. division months to the and existing exerted our This XXXX. cater XX% by continued team mortgage our in to clientele its acknowledging compared business Group [ has first start stride the growth into we While in to our fortifies our at for positive for in in in performance our financial same our increase success Dallas reach established momentum showed Texas.Recognizing strategic Lending dedicated This acquiring and a mortgage we're the an within ] closely period increase impressive broader work in ] a ahead. optimism Austin-based extends tremendous encouraged demand months work to year, Latino with results for far,

months increase QX Texas the for joint challenging improve with Fathom X and While a is of the rate quarter year. pleased file expect agents the a venture attachment growth we're to regarding transactions encouraged environment. are that regarding EBITDA.During significantly Moreover, challenging first XX% our in in Verus continue in announcement and our we agent market XXXX, to many its peers given starts last for Title, compared we recent outperforming

success the our and remains to we're residential the continuing that our real bright remains by we once to future grow industry base, positioning Although difficult, rebounds. estate continue agent believe industry Fathom

briefly our for let's commission our to strategy, growth an creating that the meaningful so growth progress going our discuss business expanding current goals for network, in resonate making do agent advancing profitable are forward.Now continues and and well model real continue estate We to XXXX. environment in optimizing industry-leading will our

goal the remain agent historical focused growth growth returning we First, on Fathom's with of to of XX% agent rate accelerating XX%. our

long ahead, value and remains ultimately in We we'll commission agent. money earn our robust. to and we pipeline current of attractive environment, home teams an agents, the focus for remains help in the as high-quality our agents Moving term as believe industry-leading are more attracting more agent most we compelling with on split opportunities flat them fee proposition the brokerages

to we targets. every where X remains towards the of brands to operate progress those be or X one goal and continue top in market we Our

states, now XX by in striving and in we're are be end the to year. XX We of the states all

the breakeven various value and goal the achieve more early adjusted flow to greater returning enhancements them ultimately full second improving We and productivity marketing to also make for provide in second committed successful.Our operating to months agents, to remain we is year launch our plan cash as programs coming to positive the technology as while quarter to XXXX. of EBITDA XXXX, new in

agents our believe an on commission an We helping agent we the we million that $X.X our agent add slight our structure and for fees objectives fourth Fathom minimum will while XXXX. in During have an achieve agent ever-improving will increase a in EBITDA believe estimated offering. we provide this announced impact agents revised quarter, with

efficiency additional expenses.In million totaling of to in opportunities also reduce approximately further reductions will on focused cost remain operational which XXXX. We we QX per identifying our effect take quarter, full QX of implemented for $X XXXX,

for our with can We cost XXXX a positive current XXXX by in It parties mind the growth should support, our team with navigate plan our ancillary to that do growth week, ventures, believe our environment manner that quarters, a agent opportunities improve confident coming increase recruiting positive and Verus recruiting balance core we forging be and in for indicators to opportunities challenging to and and We new to are and our levers creating business the This XXXX called to increased and Title execute initiatives the this that our to strategy corner to support sheet our Texas results. joint subdued others and elevate We QX the merging We our a substantial believe are continue announced months.Finally, productivity, operating few involved. enhance Fathom of augment encouraged profitability our that our market smaller further positive the Early in growing in turning long-term look team Elite, forward breakeven. businesses to venture, with business. runway to and consolidation reinforces seeing show going XXXX. venture despite estate in creating last conditions, current should our promising, quarter by time. importantly, grow a our and position to trend per for number interested in economic both and summary, with in have forward. continue in coming the platform between be Title lucrative This cash rates real approach attention trajectory agent our profitability belief ultimately business a these profitability in outpace we're also a enhancing strategic real beyond.This increase By significant our joint in all starting year we implemented mortgage uncertainty flow in in joint bolster through success business with and businesses. agents revenue in believe in for of and foster turn profitability. we More EBITDA industry. the recognize we Elite contribute the a subsidiary our Fathom to acquiring yield the we towards will top more title while size XXXX. in aims file This estate growth cash ancillary brokerages transaction Realty's focus long we'll remain reduction and aligns the we market smaller producers expect have us enhance sacrifice Fathom earnings. businesses companies. the will business' our the to and provide we increase objectives larger viability. brokerage operating are estate our strategic collaboration quarters, provides suggesting ahead, potential productivity not and Even elevated trends witnessing and this for growth across seen for first the as that to growth of with and starts our such Verus is in we of brokerages.In In an runway agent has Fathom presents attach significantly we're position over the for starting increased we we today's continue to to XXXX liquidity in businesses. and efforts.Now the real Notably, expect opportunistic overall

front in in discuss XXXX I'd are results strength of Vice a she entering We of opportunities over optimism the of can pass position financial to Zach, more detail. and in Joanne call the our like that, us.With Senior our Finance, for to so President

primarily of This review $XX quarter a year-over-year was detailed revenues $XX brokerage ancillary XXXX $XXX I'll and benefited a to increase declined million from fourth which in the year, fourth million quarter. in XXXX with in start revenue business, with last XX% mortgage compared to Marco. rates year. that Thanks, expansion Fourth year's which year in our XX% due part related by revenues, XX% prior to primarily mortgage $XXX total interest results. offset later quarter partially a were to from of the the strategic million for declining in and XX% million our full our decreased Texas.For of QX decrease compared decline to total revenue slightly was operations

affordable net compared XXXX loss loss the the $X.XX rising made XXXX of the $X.X a prices surging million declined to XXXX Overall of that a in was $X.X and for declined XXXX XX% For per the a year, compared transaction million are home attributable loss lower to by revenues ancillary quarter $X.XX market year, or revenues share to for per fourth loss rates, quarter. or brokerage and least share fourth lower decades.GAAP by 'XX due much for XX%. of in of the mortgage revenues with volumes

to an loss income cost-saving our in for $XX began income 'XX management tax Our XXXX efforts included compensation compensation the in headcount, partially EBITDA of to transactions amortization or per stock in per a in net in third-party of million for January efforts was reductions and offset to carried XXXX brokerage loss of or net that $X.X increases costs margins year loss savings of and with and costs to a This was assets EBITDA full million interest primarily improved our $X.X stock and reduction cost quarter increases $X due by expense loss, reduction and for partially in million the net 'XX, our all 'XX on an and $X.X offset in was 'XX increase in net adjusted in increase due compared in the in which lower a $X.X share million a increase of loss an stock respectively. non-GAAP fourth increase attributable team, loss net in fourth forward QX share expenses.GAAP and to 'XX, initiated an which GAAP and and loss tax in payroll in non-cash our million by in costs compensation $X.XX interest attributable areas, $XX.X increase million a of income versus and reductions million, was $X.XX strategic vendor XXXX. fee the reductions included for interest in expenses.Adjusted measure, of quarter $X.X and intangible in tax cost expense loss, million loss

of our in in to for compensation million million a of million increase costs $X.X offset year G&A a 'XX, due stock $XX.X EBITDA due full a EBITDA million cost-cutting for $XX.X stock with increased to million $XXX,XXX, loss administrative year increase XXXX. amortization in XXXX compared net of the due by adjusted $X.X marketing for versus XXXX non-cash quarter related the General in by of related year, was depreciation and 'XX and an basis, compared included of $X.X a of for the decrease and were of compared full activities XX.X% to additional sequential For 'XX. of with the loss $XX.X by expenditures the compared $X.X million quarter G&A totaled million XXXX $XX.X adjusted expense an million a an fourth in the X.X% reduction to and operations totaled a primarily fourth for 'XX the on full million in which agent to $X.X expenses decrease the increase fourth costs 'XX to million fourth million expansion partially to for Texas quarter, initiatives, loss, On mortgage compensation million.G&A in to quarter $X.X $XX.X recruiting.Expenses non-cash increased brought $X.X 'XX.

for the year XXXX full expenses XX.X% The marketing $X.X in marketing decreased expenses to in the million XX.X% compared $X.X XXXX. For million million to year, XXXX reduction by full $X.X full and in and the time 'XX business of segment in our for the respectively, implemented early more reviewing in year, our reflect late benefits some XXXX.Now I'll QX reductions detail. spend expense results and

year's was companies, As an real difficult QX real division. in estate with decrease real for estate X,XXX fourth a approximately estate closed all last quarter transactions from quarter, XX% our We quarter. the

real fourth rate growth while agents, XX,XXX a National approximately estate We XX.X% we fourth the full decrease membership over For saw year, with of represented quarter relative of Association X.X%. Realtors 'XX, a closed decline quarter ended XX.X% XX,XXX which to transactions, prior the the approximately the a the of year.

year, We represents an increase in in a joining Adjusted increase transactions million QX the $X.X an XX% of Estate forward.Revenue Estate have decrease to price income 'XX, was the of in Real period onboarding should number EBITDA EBITDA attributable agents $X.X seen QX, compared division of fourth result an which in Real year-to-date approximately going XXXX. the a adjusted division of approximately $XX.X loss same $X.X over in which homes. of the quarter for $XX.X last compared million in to increase in XX.X% million in starts in QX the Fathom was million decrease to million of the in for

adjusted XXXX generated an For QX to decrease of were a million These XXXX January income period. the reflect in the EBITDA $X.X Mortgage the for period the in XXXX in million business of and $X year. to mortgage measures.Our implemented for EBITDA $X.X was QX in transactions XXXX compared million increase of achieved $X.X adjusted the our for in adjusted XXXX. fees impact year for in $X.X year full despite compared loss to improvements favorable loss the of QX XXXX the $X.X for million was our and last year same million year, full revenues 'XX continued compared prior cost-cutting million and

For in improved compared to a the prior This EBITDA revenues $X.X in strategic million, the XXXX $X.X year, to loss is EBITDA business our million $X.X year, million continued declined adjusted $X.X compared loss by million to although to XXXX. million to due measures. $X.X XXXX cost-cutting adjusted mortgage for

the reduce million $X.X well of to a year in for and to from million $X.X to of negative ventures Adjusted Our XXXX XXXX quarter approximately increased additional recruiting continues insurance million our adjusted million adjusted and for agents loss of negative million our Title in a the compared $X.X fourth producing going to was to of forward business to adjusted EBITDA Verus of EBITDA by million income year's revenues our our expenses and in million mortgage adjusted quarter last positive increased opportunities $X.X generated platform. of estate million full EBITDA identify for to joint year for quarter, add a for the loss that quarter as the had for a EBITDA XXXX revenues loss revenues fourth will XXXX 'XX. EBITDA fourth technology DIA year. $X.X quarter $X.X the $X.X enhancing Technology reflecting increased our with million XXXX for million to million joint $X.X team and million scheduled quarter for for our segment, in our current business.Moving and managing business year and full of title quarter revenues compared and for rightsize $X.X top business $X.X loan similar adjusted Verus Title's officers.DIA, the the in $X.X last investment EBITDA venture meaningful our early as real had the the loss the for $X.X XX% anticipate million year. $X.X a for $X.X of QX and revenues to increased the We the Texas year. new approximately the million full quarter. commence revenues of total

the MLSs X XXX team quarter. to the its significantly increased XXX,XXX million with reach powers community reports over neighborhood the LiveBy created. over than pages across agents country and more Our at has LiveBy XXX,XXX end footprint of

purchase to the to under any approximately not market proceeds with in continue the and given did from the balance under I focused remains real We that for We which $X.X over a $X.X ended estate turn be shares quarter conditions.We Marco remarks. repurchase stock keenly dynamic plan closing sheet the includes million, $X fourth of December. cash in position call offering the the million net the quarter on completed will authorization.With million in our that, back we

to work to for market remain focused let's on We the the questions. Joanne. on as when executing I steps clients.With Fathom necessary entire you, open our navigate Fathom for in in and team better Thank recovers. want that, and market preparation environment, the its to taking the serve continue current we position call operator, hard thank this

And first Instructions] Campbell [Operator our question from will of John come Stephens.

the I'm Marco, bit margin with does agent moving on of direction for seem there's on little year It services revenue. year. provide going could ancillary I be you're pieces mean, you fees. for gross to in better a like hoping the some a

of some you maybe just -- impact from So would increases? kind growth But I there, that's to flat as would going year-over-year, what assuming it impact. gross an point, to held fee from And frame the expect margin degree however from scenario. you then you any if starting know up revenue of a of want what rev have just kind

absolutely. Yes,

really, is really the X is that And us increase realty growth points by give of the the side, year, mortgage we then starts margin, right? to going that's, just So excited okay? the title, JV. in file -- fees And on for great on as one X.X about the and question, things we to over gross course, of about especially are itself

significant we margin mentioned the -- I margin. in going outpace mortgage to profit we therefore, as drive title that and is gross in So increase think call, the growth of as and brokerage

XX% business sure, a combined of want And our the mortgage businesses, XX%. look things XX%, of gross could see make by in depending see or our well profit So business.And the as high to we probably not so the mortgage north much when how at -- margins it's as growth, one year, of growing, officers. we're rate. double really adding of why loan interest in therefore, the counting and able our business number really The growing is we've is on a so not to Under more doing a of reason into well business. the Sean the leadership we're decrease Paul because end Marsh, you could been almost I mortgage LOs and Varin

then see So the down in half, second if come increase significant a rates can we mortgage our really business.

in about turning in margins, later very when rates we're then and could as how excited combined the you XX% So look that. XX%. of But we change as the the depending terms high to see XX% XX%, year, businesses at

mean, additions, macro a kind net far the had best since of that that better adds a the the in on then agent guys standpoint, was from backdrop. Obviously, you I quarter sequential have of And was second XXXX.

roughly attrition much the you and how hoping if looked unpack strength can that can And to you was how just prior maybe underlying then just that's the starting there versus rate I'm and periods? of So maybe off talk inorganic.

Yes, Great absolutely. question.

it sequential several key XXXX. for factors basis best yes, on are a the So month there. is There

higher significantly or about of in our starts first have that We X% basically So increased. starts QX. all, QX onboarding onboarding than talked

said adding than turnover so we to higher And the actually of company, had then attracting are terms And more expected. the is of gross now, definitely highest having in that, agents. right? we And number number

everyone like especially non-producing else, agents more losing are We agents.

if will And started different that had that be They of definitely, we have really including about variety agent a programs good that variety that going a so of so But part programs forward.We the highest part of growth QX formula, our And higher very part feel on you to is QX, -- will. are of adds. the number in on Producer marketing is going gross agents. producing we of we focused Perks. that late our focused in QX, continue more of

results. some very have of And good early, some yield them really

Fathom good a about with we it feel traffic And growth. our has come increased yes, bidders of increase Careers. significantly to So agent our lot in. that We to in coming significant do

And our going XX% so come that back to to why of XX% year growth. one for goals historical this is all agent to agent higher that's And to of is to a the growth. contribute

The Aftahi of ROTH next question comes MKM. from Darren

follow onboarding they -- first is I through Darren. to year-to-date on don't Dillon the being This commentary you what made for bulk Could case, do on first was think clarify to the up just is QX then so that XX%. to And on up about that? the the that I of number do execute it you wanted you slip if have cracks?

is that Careers Actually, Yes. has visitors. was increased X,XXX was this significantly that of traffic early to It is onboarding realized the QX the team. page right? the execution our in things one X,XXX in Fathom from over We we growth Look, the QX, the onboarding recurring -- -- was growth key that onboarding on visitors that. why increase our

therefore, follow Giuggio recurring bigger execute a does really So be go of comes the execution ability from right? the recruiters that, to having a clarify the we to to So job she on up And -- so able hire but on more having growth that that, is sure just making the right?And that, that in QX. is Samantha under happens, team phenomenal to that. team,

continued Now has in that QX.

seeing and So significant traffic. in starts growth onboarding we a are

growth pattern that for our agent QX one XXXX. to that seen is And XX% will why, go as goals to key think through this the XX% of we've So XXXX. in want again, back we to I continue

side, like? idea as XQ, QX so to on can million the better savings, cost like realize how $X And what we sort the guess, that of with cost you get in I much did of might a look

Great we'll [ ] meal full see be almost The QX. very QX. that question, in little will in --

will QX. in -- to be QX, In And QX XXX%. to from see you you went XX% so XX% I so as X% think look QX, to XX%

quarters, So entire the when you comparing can almost as reduction. compare cost $X million

The Davidson. White of question Tom from next comes D.A.

is initiatives quick that you a result of just the corporate-led Marco, of commentary. a just sort curious, follow-up attraction agent the would say I'm most growth I'm or Maybe kind on of of agents curious main file them follow-ups. of kind whether of rank a the of doing is the couple I and existing got some And of recruiting then driver? a the yours, more bit

Yes. Tom, you. good to talk

really So agents. is there referring to Careers, be That office sort a to roughly and across our agent continue of -- to District Fathom do that. visitors agent our growth, recruiters as continues Directors our the home right? our One to those okay? the we both, drive is happens of we factors, right? combination country. are X XX% what to And of Because the It we across so key that agents are other come distributed they from as country registering, is

they go are talking country, the those drive and agents our Also, right? in hand recruiters hand, District to Fathom So Careers. agents, to they across and Directors the organically

collaborative the money office home So traffic, that Fathom process, to little XX% very historically. effort to it's between companies, fairly XX%, you than and compare has grow a fee and a really say collaborative continues a would nothing continue had right? really that our continue it's cohesive And marketing to flat together working compared the to so to bit get be make drive good sure everybody and place growth the changed as to spend back to commission land really right?So the and we when it's can viewed of a we to agent other I more between field on other sort us

and I'm lawsuits guys you But just growth of kind question comfortable it there's feel feeling of And guess offense liquidity the you kind recover? the sort maybe around where the still in curious, still the position you around in like little that? commission go that. I into like like of position, after looming stuff agent like to of a are of then a guys the kind mark of like, guess you defensive can you're a leaning on offering are on quarter. a kind like sounds your is posture? slowish of market housing bit kind more fourth I And Or bit a Like just and

that significant in in look burn increase in money Fathom From QX, we when QX, a and and traffic title, into we're That's for the the a in to for standpoint, should file and for the both and No, of definitely Careers, results liquidity that on to cash QX at fees you offensive. positive those right. cost a increasing reduction, described why in bit combined EBITDA you effect which terms starts little take effect the spent revenue have with we mortgage seen then combined more businesses. marketing of

cash more flow is all so when cash significantly, those invest you for feel recruiting of feel two aggressive very to our good continue combine put when we going in to burn goal and be that, things together, in So marketing and positive.And our and that is QX to position be you operational agents. QX improve we to about

So we position. our feel very good about

feel great the that One because, business, mortgage significant you really about the of profitable. we very know, increase, things is terms right, those of can as the really be just in the and title business turnaround,

highlights the of the updates one the giving is sort is significant increase those we're to businesses. this of QX And of then some the in of and QX so

with the XXXX. that beginning feel together recipe those for and so successful combine growth and and business then very And technology, of about brokerage a our the it's excited put insurance we to very

Maybe last if could. just one I one,

significant year, of broader assuming status for any kind of positive adjusted or targets and cash are quo? flow housing the kind in around mean, just improvement Your of market EBITDA operating positive I kind you the

It's great question.

Really our model, a of to we're stay okay. up is growth in percentage go improvement modeling real equation, any estate We a of, terms may year we are the this business points the we in our do few market flat. internal in not not think significant market, growth, but combination -- factor into the that

very if from significant fantastic. cost mortgage that good the combined upside up improves, When But for operational We'll business reduction, EBITDA flow cash in our efforts and are the fees about of looking And and together, flow improvement cash all improvement pick so title positive that. increasing XXXX. the from we feel we in and put businesses. you the at

The of comes Riley. next from question Raj B. Sharma

your growth, year-on-year or year. come individual. the growth to now, XX% is So, is to from for you're of to the having there trying acquisition XX% gap right of agent acquisition I'm going an the reconcile groups just

come from And that referrals? follow-on question. of much how So got then I've will another

Yes, absolutely.

various of a it's factors. combination So

try brokerages, X a for that looking approached certainly should our call right. months, of to companies, we opportunities been last So by we've lot small move, X large illustrate in in or the teams, to

of number the in so engagements terms of And really increased, significantly right. conversation we has had

a And more Fathom The of to to we Careers refer primarily introduce, drive back people so for factors. programs. to marketing through X to we're we'll other bigger going by as our Perks continue to Producer be XX% incentives very agents opportunistic. get We growth agents. variety think One, XX%, offering that

the what it, be in is do to happen We've year, this last those several next like We So but doing process days. of taking of We'll several in XX the walkovers. some typically walkover XXX been or done the agents. cases of these XXX these opportunistic sort we've basically XX, because can in in of level.Second year. some to

be that the a that enter Raj, both. XXX level, a taking next walkovers, so, in do is be it's a it a have about things a that has into way basically to in can XXX enjoy being to have we with that of someone we that going And year just we presence.That's markets strong don't agents especially company combination really agents, and market the It then into we it walkover don't presence, of when market. a did great and of will last will combination strategic, we one a with taking strong what a

walkovers move of these of on opportunistic And done of right level your so But to now. sort question and it going have will take in a a a activity be conversations and increasing acquisitions. the we variety some is and combination being of of answer

not I I are question. answering just you heard then And mean if, you another

agent a be So for productive to in going the going more you're agents you're not new far transactions the to per more or have assuming pickup the productivity. rest year. The of are

modeling it's in that be much market. the more up, transactions so I'm we're there'll much that not it's So not picking so

going a standpoint make number think assumption things again, number focusing We're we're really helping as some our is let's of will the going macro So a we're also agents from to increase higher first. market doing we're one transactions. increase of on the to From is if that not transactions, significantly a macro, macro the to we of standpoint, because agents. increase of producing the going

So two our we'll helping need clarify probably as those of want increase to see, maybe as more to productivity I producing from some factors.Recruiting because my, well and agents, higher agents we'll our an probably agents. in see of

days programs of That's to to days. next then on marketing the are, if variety advantage. out help depending our agents, XXX the coming they a have they our going XX of We some agents, market take

the probably no then budgeting combination have that's standpoint, whether But And macro so think, this But I almost are it'll a believe we we upside. a a macro see from a that. let looking of not, X-hour we can in modeling way, or going standpoint market. flat If to second down the a conversation at interest we'll and probably we happen an come rates are me put from be don't growth a modeling half, market. and standpoint,

so -- clarifies that And the hopefully that answer.

come and mortgage quantify the to title three positive going improvement improvement It's [indiscernible] I'm going the come for talking and and fees, EBITDA. the of, Can from it's to from terms of cost flow that example, this in understand I an fees, a in about these you combination the reductions, do. to and areas cash business. So looking

a quarter across reduction board. is cost $X per the million Well, the

do if file business If that starts that implemented said, we mortgage the grew, by you XXX%, almost and continue numbers January, think already continues, we February like the So just to about that. will I right.

at about we roughly can last year, will last year that in by you was believe, mortgage, have mortgage percentage XX%, to go a right. so if If -- total $X.X business year, XX%, sorry the to by that XXX%, revenue this it significant $X.X can in right.So revenue effect, bottom to increase that we're able take that a a And in total we I will last look mortgage, line. did million the year, continue million grow And the then XX%, significant revenue.

part that's so thing Same with of it. And title.

ones.So of the about in goes EBITDA business will we're title joint that certainly the million mortgage the right. percentage will $X.X we then We of come the in the a increase well doing. do venture in carefully other really and again from increase significant reductions cost in are title, in and come from the because fees, this opportunistic now next and few increase months, If

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[Operator conference back Instructions] I to would to remarks. turn for like This closing our over session. any concludes the Fregenal question-and-answer Marco

joining you all our for in call your interest Fathom. you, operator. you of Thank Thank and

shareholders, thank trust. are your for you you of those For

Fathom thank week. makes that's I And a what their and and continue And I We I'm future hard the their family It with a company.And rest updates be to entire passionate grateful And thank I great of you. and group of work really a takes has really work sharing Thank commitment. everyone great very the great you. with especially times. in hard for hard to that, and focused for in individuals want executing, dedication. to to everyone all forward very work all look hope difficult Fathom

now The attending today's Thank presentation concluded. conference you you for now may has disconnect. and