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Fathom Holdings Inc. (Nasdaq: FTHM) is a national, technology-driven real estate services platform. The company integrates residential brokerage, mortgage, title, insurance, and Software as a Service (SaaS) offerings for brokerages and agents through its proprietary cloud-based software, intelliAgent. This comprehensive suite of services is designed to provide unparalleled support to real estate professionals, helping them streamline operations and enhance productivity.
The company operates through three main segments: Real Estate Brokerage, Mortgage, and Technology. Key brands under its umbrella include Fathom Realty, Dagley Insurance, Encompass Lending, LiveBy, Real Results, and Verus Title. These brands work cohesively to offer a full spectrum of services, from brokerage and insurance to lending and SaaS solutions.
Fathom Realty is known for its agent-centric approach, providing exceptional support, superior technology, effective training programs, and competitive commission plans. Their leadership philosophy, inspired by the principle “whoever wants to be great must become a servant” (Matthew 20:26), emphasizes a servant-first mindset.
Recent achievements include the expansion of Fathom Realty's operations in California through the addition of Divine Properties Group, a San Francisco-based real estate team, which aligns with Fathom's mission to foster collaboration and provide top-notch support to agents nationwide.
Financially, Fathom Holdings has shown resilience despite industry challenges. The company reported a 13.7% growth in its real estate agent network in 2023, with a notable increase in ancillary services revenue, particularly from its mortgage segment. Despite a decline in total revenue due to market conditions, Fathom has implemented strategic cost-saving measures and continues to focus on achieving profitable growth.
One of the latest strategic moves includes the establishment of Verus Title Elite Texas LLC, a joint venture aimed at enhancing the closing experience for agents and clients in Texas. This model is expected to expand across more states, increasing revenue and profitability for Verus and Fathom.
In addition to its business operations, Fathom recently sold Dagley Insurance to its founder Nathan Dagley for $15 million, a move that will strengthen the company's financial position and support further growth initiatives. Despite the divestiture, Dagley Insurance will continue to support the Fathom Realty agent network, ensuring continued high-quality service offerings.
Fathom Holdings continues to innovate and expand its services, positioning itself as a leader in the real estate services industry. For more information, visit FathomInc.com.
Fathom Holdings Inc. (NASDAQ: FTHM) announced a $3.5 million senior secured convertible promissory note through a securities purchase agreement with an institutional investor. The note, with a conversion price of $6.00 per share, aims to enhance operating liquidity and provide financial flexibility. Interest will be paid quarterly, based on the Secured Overnight Financing Rate (SOFR) plus 5%, with a minimum rate of 8%. The company projects achieving adjusted EBITDA breakeven in Q2 2023 and cash flow breakeven in Q3 2023. The proceeds will be utilized for working capital and general corporate purposes. Roth Capital Partners acted as the sole agent for the offering. The note matures on April 12, 2025, unless repurchased or converted earlier.
Fathom Realty, a subsidiary of Fathom Holdings Inc. (NASDAQ: FTHM), ranked second in the RealTrends 500 Top Movers for 2022, showing significant growth in closed transactions. With a total of 44,707 closed transactions, Fathom reported a 14% year-over-year growth.
CEO Joshua Harley emphasized the effectiveness of their flat fee commission model, appealing to agents aiming for higher income amidst increasing inflation and interest rates. The report also highlighted Fathom's strong performance among low-cost brokerage firms, validating its business strategy.
Fathom Holdings reported a 12.7% decline in Q4 2022 revenue to $83.4 million, down from $95.5 million in Q4 2021. The company aims for Adjusted EBITDA breakeven in Q2 2023 and positive cash flow in Q3 2023, supported by $3 million quarterly expense reductions. Despite a net loss of $9.9 million in Q4 2022, Fathom's agent network grew by 28% to approximately 10,370 agents. For the full year, total revenue increased 25% to $412.9 million, but net losses widened to $27.6 million. Fathom completed about 44,700 transactions in 2022, a 14% increase from 2021.
Fathom Holdings (FTHM) reported preliminary financial results for 2022, showing a total revenue between $411.0 million and $413.0 million, up 24% to 25% from $330.2 million in 2021. The company completed approximately 44,700 transactions, a 14% increase, while its agent network grew by 28% to 10,370 agents. However, the GAAP net loss for 2022 is projected at $28.6 million to $27.6 million, up from $12.5 million in 2021, largely due to rising interest rates. Fathom aims to reach breakeven Adjusted EBITDA in Q2 2023 and generate positive cash flow by Q3 2023.
Fathom Realty, LLC, a subsidiary of Fathom Holdings (Nasdaq: FTHM), has improved its ranking in RISMedia's annual Power Broker Report, moving from 16th to 12th in sales volume among the nation's top 100 residential brokerage firms for 2022. The company also ranked 10th in total transactions, closing 44,707 deals, reflecting a 16% year-over-year growth.
Despite a challenging market marked by high inflation and rising interest rates, Fathom Realty's performance indicates resilience and adaptability. The real estate sector reported over $110 billion in reduced sales volume collectively for 2022, highlighting a significant market contraction.
Fathom Holdings Inc. (NASDAQ: FTHM) announced a conference call to discuss its fourth quarter and full year financial results for 2022 on March 22, 2023, at 5:00 p.m. ET. The results will be released prior to the call. Interested parties can join the call by dialing 833-685-0908 (U.S.) or 412-317-5742 (international). A live audio webcast will be available on the company's investor relations website. The replay will be accessible until March 29, 2023. Fathom Holdings integrates multiple real estate services, leveraging its proprietary technology platform, intelliAgent.
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