Anywhere touts ‘resiliency’ as revenue plateaus
A $20 million payment on its commissions litigation settlement takes a bite out of cash flow but cost-cutting efforts yield $30 million in savings.
Anywhere Real Estate said it's "well positioned for success" as it reported steady second-quarter results, with revenue flat and sales volume increasing slightly.
The company generated $1.669 billion in revenue during the second quarter, which represents a slight decline from the $1.671 billion it reported at this time last year.
However, Anywhere's free cash flow fell by 40% to $63 million, partly due to a $20 million partial payment made to satisfy its ground-breaking settlement of commissions litigation. The company does not expect to pay any of the remaining $53.5 million it owes in this settlement during 2024.
What Anywhere had to say: CFO Charlotte Simonelli said the company's earnings "demonstrate our continued resiliency" despite overall softness in the real estate market.
"We believe our unique strengths and continued holistic financial discipline drive differentiated performance versus our competition and will enable Anywhere to emerge even stronger when the housing market improves," she said.
Ongoing cost-cutting efforts amounted to a savings of $30 million during Q2. Anywhere expects to save around $120 million for the full year.
The Corcoran brand emerged as a strength for Anywhere during the quarter as it increased its year-over-year unit count. Overall, the total number of Anywhere listings declined by 5%.
Key numbers
Revenue: $1.669 billion vs. the $1.671 billion recorded in Q2 2023.
Cash and cash equivalents: $63 million, including a $20 million payment for its commissions litigation settlement. In Q2 2023, the company had $105 million in cash.
Net income: $30 million, up 57% compared to the $19 million recorded in Q2 2023.
Operating EBITDA (earnings before interest, taxes, depreciation and amortization): $139 million versus the $126 million figure posted last year.
Transactions: Anywhere's franchise group — which includes Corcoran, Century 21, Sotheby's International Realty, Coldwell Banker, ERA and Better Homes and Gardens brands — closed 194,372 transactions in Q2 2024. That's down 5% from the 203,928 transactions from the same time frame in 2023.
Agent count: In the U.S., the number dropped to 182,900 in Q2 from 184,800 last quarter. In the 117 other countries and territories where Anywhere operates, agent count increased from 133,100 from 132,100 in 2023.