RE/MAX reported total revenue in the third quarter of $71.1 million, a decrease of $0.5 million, or 0.7%, compared to $71.5 million in Q3 2019. In Q2, total revenue was $52.2 million.
The company said that total revenue decreased “primarily due to previously announced agent recruiting initiatives that reduced both continuing franchise fees and Marketing Funds fees, largely offset by increased broker fees stemming from higher existing home sales, incremental revenue from acquisitions, and Motto growth.”
Net income attributable to RE/MAX Holdings, Inc. was $3.6 million and earnings per diluted share (GAAP EPS) of $0.19.
The brokerage said that in Q3, total agent count increased 5.1%, to 134,769 agents. Combined with Canada, agent count decreased 0.3%, to 83,802.
“The continued execution of our strategy, coupled with the U.S. housing market’s remarkable run, drove our very encouraging results for the third quarter,” Adam Contos, RE/MAX Holdings CEO said in a statement. “RE/MAX agent count in both the U.S. and Canada increased sequentially on a month-to-month basis during the third quarter, particularly in Company-owned regions, after stabilizing at the end of the second quarter.”
“Agent count outside the U.S. and Canada surpassed the 50,000 mark during the quarter, and has now doubled in just five years. Many of our RE/MAX agents and brokers are reporting their best years ever, and our Motto Mortgage business also continues to show impressive growth, as its franchise sales through the first nine months of 2020 nearly matched the full-year total for 2019.”
RE/MAX’s Motto Mortgage recorded its franchises grew again by 27.9%, to 133 operating offices.
During Q3, RE/MAX’s Motto Mortgage acquired fintech startup wemlo and RE/MAX Holdings acquired location intelligence data company Gadberry Group.
“The strategic acquisitions of wemlo and Gadberry Group during the third quarter both tie directly into our strategy of adding value for the RE/MAX and Motto Mortgage networks while broadening and diversifying our revenue and growth opportunities,” Contos said. “These acquisitions benefit our memberships, strengthen our technology and data core, and create promising commercial possibilities beyond our networks.”
Looking toward Q4, RE/MAX said it expects agent count to increase 4.25% to 5.25% year over year and expects revenue in a range of $69 million to $72 million.
