Fathom Provides Business Update and Introduces Bitcoin (BTC) Payments and Treasury Strategy, Redefining Real Estate Innovation
Fathom Holdings (NASDAQ: FTHM) has announced two major updates: a new Bitcoin strategy and preliminary Q4 2024 results. The company will allocate up to 50% of its excess cash to Bitcoin, with plans to purchase up to $500,000 in Bitcoin or Bitcoin ETFs within two weeks. The company also aims to enable Bitcoin payments for agents and customers in the future.
The integration of recently acquired My Home Group is progressing as planned, expected to contribute over $110 million in revenue for 2025. Q4 2024 preliminary results show revenues between $89.7-91.7 million, up 21-24% year-over-year, with gross profit increasing 28-30%. The company reported an expected GAAP net loss of $7.3-7.4 million and adjusted EBITDA loss of $2.8-3.0 million. Agent count grew 23% to 14,500, while brokerage transactions increased 16.5% compared to Q4 2023.
Fathom Holdings (NASDAQ: FTHM) ha annunciato due importanti aggiornamenti: una nuova strategia per Bitcoin e i risultati preliminari per il quarto trimestre del 2024. L'azienda destinerà fino al 50% delle sue liquidità eccedenti a Bitcoin, con piani di acquisto fino a 500.000 dollari in Bitcoin o ETF su Bitcoin entro due settimane. L'azienda mira anche a consentire pagamenti in Bitcoin per agenti e clienti in futuro.
L'integrazione del recentemente acquisito My Home Group sta procedendo come previsto e si prevede che contribuirà con oltre 110 milioni di dollari di fatturato nel 2025. I risultati preliminari del quarto trimestre del 2024 mostrano ricavi tra 89,7 e 91,7 milioni di dollari, con un incremento del 21-24% rispetto all'anno precedente, mentre il profitto lordo è aumentato tra il 28 e il 30%. L'azienda ha riportato una perdita netta GAAP attesa di 7,3-7,4 milioni di dollari e una perdita di EBITDA rettificato di 2,8-3,0 milioni di dollari. Il numero degli agenti è cresciuto del 23%, raggiungendo 14.500, mentre le transazioni di intermediazione sono aumentate del 16,5% rispetto al quarto trimestre del 2023.
Fathom Holdings (NASDAQ: FTHM) ha anunciado dos actualizaciones importantes: una nueva estrategia de Bitcoin y resultados preliminares del cuarto trimestre de 2024. La compañía asignará hasta el 50% de su efectivo excedente a Bitcoin, con planes de adquirir hasta 500,000 dólares en Bitcoin o ETFs de Bitcoin en un plazo de dos semanas. La empresa también espera habilitar pagos en Bitcoin para agentes y clientes en el futuro.
La integración del recientemente adquirido My Home Group avanza según lo planeado, y se espera que contribuya con más de 110 millones de dólares en ingresos para 2025. Los resultados preliminares del cuarto trimestre de 2024 muestran ingresos entre 89.7 y 91.7 millones de dólares, lo que representa un aumento del 21-24% respecto al año anterior, con un aumento del 28-30% en la ganancia bruta. La compañía reportó una pérdida neta GAAP esperada de 7.3-7.4 millones de dólares y una pérdida de EBITDA ajustado de 2.8-3.0 millones de dólares. La cantidad de agentes creció un 23%, alcanzando 14,500, mientras que las transacciones de corretaje aumentaron un 16.5% en comparación con el cuarto trimestre de 2023.
Fathom Holdings (NASDAQ: FTHM)는 두 가지 주요 업데이트를 발표했습니다: 새로운 비트코인 전략과 2024년 4분기 예비 결과입니다. 회사는 과잉 현금의 최대 50%를 비트코인에 할당할 것이며, 2주 내에 비트코인 또는 비트코인 ETF를 최대 500,000달러까지 구매할 계획입니다. 회사는 또한 미래에 에이전트와 고객을 위한 비트코인 결제를 가능하게 하는 것을 목표로 하고 있습니다.
최근에 인수한 My Home Group의 통합은 계획대로 진행 중이며, 2025년에는 1억 1천만 달러 이상의 수익을 기여할 것으로 예상됩니다. 2024년 4분기 예비 결과는 수익이 8,970만에서 9,170만 달러 사이이며, 전년 대비 21-24% 증가했으며, 총 이익은 28-30% 증가했습니다. 회사는 730만에서 740만 달러의 예상 GAAP 순손실과 280만에서 300만 달러의 조정된 EBITDA 손실을 보고했습니다. 에이전트 수는 23% 증가하여 14,500명이 되었으며, 중개 거래는 2023년 4분기 대비 16.5% 증가했습니다.
Fathom Holdings (NASDAQ: FTHM) a annoncé deux mises à jour majeures : une nouvelle stratégie Bitcoin et des résultats préliminaires pour le quatrième trimestre 2024. L'entreprise allouera jusqu'à 50 % de ses liquidités excédentaires au Bitcoin, avec des plans d'achat allant jusqu'à 500 000 dollars en Bitcoin ou en ETF Bitcoin dans les deux semaines à venir. L'entreprise vise également à permettre les paiements en Bitcoin pour les agents et les clients à l'avenir.
L'intégration du My Home Group récemment acquis progresse comme prévu, et devrait contribuer à plus de 110 millions de dollars de revenus pour 2025. Les résultats préliminaires du quatrième trimestre 2024 montrent des revenus compris entre 89,7 et 91,7 millions de dollars, en hausse de 21 à 24 % par rapport à l'année précédente, avec un bénéfice brut en augmentation de 28 à 30 %. L'entreprise a annoncé une perte nette GAAP attendue de 7,3 à 7,4 millions de dollars et une perte d'EBITDA ajusté de 2,8 à 3,0 millions de dollars. Le nombre d'agents a augmenté de 23 %, atteignant 14 500, tandis que les transactions de courtage ont augmenté de 16,5 % par rapport au quatrième trimestre 2023.
Fathom Holdings (NASDAQ: FTHM) hat zwei wichtige Updates angekündigt: eine neue Bitcoin-Strategie und vorläufige Ergebnisse für das vierte Quartal 2024. Das Unternehmen wird bis zu 50% seiner überschüssigen Zahlungsmittel in Bitcoin investieren und plant, innerhalb von zwei Wochen bis zu 500.000 US-Dollar in Bitcoin oder Bitcoin-ETFs zu kaufen. Das Unternehmen beabsichtigt auch, zukünftig Bitcoin-Zahlungen für Agenten und Kunden zu ermöglichen.
Die Integration der kürzlich erworbenen My Home Group verläuft planmäßig und soll 2025 über 110 Millionen US-Dollar Umsatz beitragen. Die vorläufigen Ergebnisse für das vierte Quartal 2024 zeigen Umsätze zwischen 89,7 und 91,7 Millionen US-Dollar, was einem Anstieg von 21-24% im Vergleich zum Vorjahr entspricht, während der Bruttogewinn um 28-30% gestiegen ist. Das Unternehmen meldete einen erwarteten GAAP-Nettoverlust von 7,3-7,4 Millionen US-Dollar und einen angepassten EBITDA-Verlust von 2,8-3,0 Millionen US-Dollar. Die Anzahl der Agenten stieg um 23% auf 14.500, während die Brokerage-Transaktionen im Vergleich zum vierten Quartal 2023 um 16,5% zunahmen.
- Revenue growth of 21-24% YoY in Q4 2024
- Gross profit increase of 28-30% YoY in Q4 2024
- Agent count growth of 23% YoY to 14,500
- My Home Group acquisition expected to add $110M revenue in 2025
- 16.5% increase in brokerage transaction count YoY
- Q4 2024 GAAP net loss of $7.3-7.4M
- Adjusted EBITDA loss of $2.8-3.0M in Q4 2024
Insights
The latest update from Fathom Holdings presents a complex mix of strategic initiatives and financial results that warrant careful analysis. The company's Q4 2024 performance shows encouraging top-line momentum, with revenue growth of
The My Home Group acquisition integration appears to be proceeding according to plan, with projected revenue contribution of
However, the persistent net losses (Q4 2024 expected loss of
The most intriguing development is Fathom's Bitcoin treasury strategy. While innovative for the real estate sector, this move carries significant risks: 1) BTC's notorious volatility could impact financial stability 2) The
However, the strategy could provide several advantages: 1) Potential hedge against inflation 2) First-mover advantage in real estate crypto payments 3) Enhanced appeal to tech-savvy agents and clients. The decision to limit Bitcoin allocation to 50% of excess cash provides some risk management framework.
The combination of growing revenue, expanding agent base and strategic initiatives suggests a company actively pursuing growth and innovation. However, the path to profitability and the execution of the Bitcoin strategy will be critical factors to monitor in 2025.
My Home Group Integration Advances on Track, Poised to Add
Fathom Holdings can now allocate up to
Fathom made this change to allow it to diversify its treasury holdings, which previously consisted solely of
"The growing acceptance of Bitcoin as a decentralized store of value and the increasing demand for alternative digital currencies are evident, supported by significant global capital allocations toward Bitcoin in 2024," said Fathom CFO Joanne Zach. "The integration of Bitcoin into commercial and financial strategies has accelerated across financial markets, positioning it as both a hedge against inflation and a safeguard against economic and currency risks in the global economy. Our Bitcoin strategy diversifies our treasury holdings, and we believe positions Fathom at the forefront of digital currency transactions in the real estate industry."
Fathom CEO Marco Fregenal added: "Fathom has always been an innovator in the digital economy. Establishing a Bitcoin treasury strategy and our plans to enable Bitcoin as a payment option align perfectly with our core mission of driving efficiencies in real estate transactions through our software platform. Our digital platform, intelliAgent, integrates residential brokerage, mortgage and title functions, streamlining processes, improving accuracy, and reducing the frictional costs of real estate transactions. We believe Bitcoin has the potential to extend these efficiencies and cost benefits, and that Fathom is well positioned to capitalize on the advantages of digital currency in the real estate market. Furthermore, we are seeing growing demand for digital currency solutions from buyers, sellers, agents, and partners within our ecosystem."
Additional details about Fathom Holdings' Bitcoin treasury strategy will be included in the Company's Current Report on Form 8-K, to be filed with the
Business Update
The following preliminary financial information for the three months ended December 31, 2024 is based upon our estimates and subject to completion of our financial closing procedures. Moreover, these data have been prepared solely on the basis of currently available information by, and are the responsibility of, management.
Our independent registered public accounting firm, Deloitte & Touche LLP, has not audited, reviewed, compiled or performed any procedures with respect to this preliminary financial information and, accordingly, Deloitte & Touche LLP does not express an opinion or any other form of assurance with respect thereto.
This summary is not a comprehensive statement of our financial results for this period, and our actual results may differ materially from these estimates due to the completion of our financial closing procedures, final adjustments, completion of the review of our financial statements and other developments that may arise between now and the time the review of our financial statements is completed. There can be no assurance that these estimates will be realized, and estimates are subject to risks and uncertainties, many of which are not within our control.
As previously announced, on November 4, 2024, Fathom Holdings acquired My Home Group, a premier
The integration of My Home Group into the Fathom platform is progressing as planned. The Company remains confident that the acquisition will contribute over
Despite a significant rise in mortgage rates following the Federal Reserve Bank's lowering of the overnight rate in December 2024, Fathom estimates that revenues for the fourth quarter of 2024 were between
Total gross profit dollars for the fourth quarter of 2024 is expected to increase within a range of
GAAP net loss for the fourth quarter of 2024 is expected to total between
Adjusted EBITDA for the fourth quarter of 2024 is expected to be a loss in the range of
Agent count increased by
As we move into 2025, our primary focus is to leverage our increasing revenue and gross profit to achieve positive Adjusted EBITDA for full year 2025.
About Fathom Holdings Inc.
Fathom Holdings Inc. is a national, technology-driven real estate services platform integrating residential brokerage, mortgage, title, and SaaS offerings to brokerages and agents by leveraging its proprietary cloud-based software, intelliAgent. The Company's brands include Fathom Realty, Encompass Lending, intelliAgent, LiveBy, Real Results, and Verus Title. For more information, visit www.FathomInc.com.
Cautionary Note Concerning Forward-Looking Statements
This press release contains "forward-looking statements" that involve risks and uncertainties which we expect will or may occur in the future and may impact our business, financial condition and results of operations. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including risks associated with general economic conditions, including rising interest rates; risks associated with the Company's Bitcoin strategy, including to volatility; its ability to generate positive operational cash flow; risks associated with the Company's ability to continue achieving significant growth; its ability to continue its growth trajectory while achieving profitability over time; risks related to ongoing and future litigation; and other risks as set forth in the Risk Factors section of the Company's most recent Form 10-K as filed with the SEC and supplemented from time to time in other Company filings made with the SEC, including the Company's Current Report on Form 8-K filed on or around January 23, 2025. Copies of Fathom's Form 10-K and other SEC filings are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release except as required by law.
Investor Contact:
Dave Gentry, CEO
RedChip Companies, Inc.
1-407-644-4256
FTHM@redchip.com
Note about Non-GAAP Financial Measures
To supplement Fathom's consolidated financial statements, which are prepared and presented in accordance with GAAP, the Company uses Adjusted EBITDA, a non-GAAP financial measure, to understand and evaluate our core operating performance. This non-GAAP financial measure, which may be different than similarly titled measures used by other companies, is presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
Fathom defines the non-GAAP financial measure of Adjusted EBITDA as net income (loss), excluding other income and expense, income taxes, depreciation and amortization, share-based compensation expense, NAR related and other litigation claim and settlement costs, and transaction-related cost.
Fathom believes that Adjusted EBITDA provides useful information about the Company's financial performance, enhances the overall understanding of its past performance and future prospects, and allows for greater transparency with respect to a key metric used by Fathom's management for financial and operational decision-making. Fathom believes that Adjusted EBITDA helps identify underlying trends in its business that otherwise could be masked by the effect of the expenses that the Company excludes in Adjusted EBITDA. In particular, Fathom believes the exclusion of share-based compensation expense and transaction-related costs associated with the Company's acquisition activity, provides a useful supplemental measure in evaluating the performance of its operations and provides better transparency into its results of operations. Adjusted EBITDA also excludes other income and expense, net which primarily includes nonrecurring items, such as, professional fees related to investigating potential financing and acquisition opportunities, if applicable.
Fathom is presenting the non-GAAP measure of Adjusted EBITDA to assist investors in seeing its financial performance through the eyes of management, and because the Company believes this measure provides an additional tool for investors to use in comparing Fathom's core financial performance over multiple periods with other companies in its industry.
Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. There are several limitations related to the use of Adjusted EBITDA compared to net income (loss), the closest comparable GAAP measure. Some of these limitations are that:
- Adjusted EBITDA excludes share-based compensation expense related to restricted stock and restricted stock unit awards and stock options, which have been, and will continue to be for the foreseeable future, significant recurring expenses in Fathom's business and an important part of its compensation strategy;
- Adjusted EBITDA excludes transaction-related costs primarily consisting of professional fees and any other costs incurred directly related to acquisition activity, which is an ongoing part of Fathom's growth strategy and therefore likely to occur; and
- Adjusted EBITDA excludes certain recurring, non-cash charges such as depreciation and amortization of property and equipment and capitalized software, and acquisition related intangible asset costs, however, the assets being depreciated and amortized may have to be replaced in the future.
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA | ||||||||
(UNAUDITED) | ||||||||
(In thousands) | ||||||||
Three Months Ended December 31, 2024 | ||||||||
Low | High | |||||||
Net loss | $ (7,400) | $ (7,300) | ||||||
Stock based compensation | 1,700 | 1,750 | ||||||
Litigation contingency | 50 | 100 | ||||||
Depreciation and amortization | 1,400 | 1,400 | ||||||
Other expense, net | 750 | 750 | ||||||
Income tax expense (benefit) | 50 | 50 | ||||||
Other non-cash items and transaction related costs | 450 | 450 | ||||||
Adjusted EBITDA | $ (3,000) | $ (2,800) | ||||||
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SOURCE Fathom Holdings Inc.
FAQ
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