Anywhere CEO: Private listings push is ‘short-sighted’
Ryan Schneider reaffirmed Anywhere’s "relax, not repeal" position on Clear Cooperation and reassured investors the company has the tech and people to compete.
During its Feb. 13 earnings call, Anywhere Real Estate executives highlighted the company's strong core earnings and luxury brand performance while reiterating that the real estate giant seeks a middle ground in the Clear Cooperation debate.
Anywhere reported revenue of $1.4 billion for the fourth quarter and $5.7 billion for all of 2024 while posting a net loss of $64 million for the quarter and $128 million for the year. The company was laser-focused on cost cutting in 2024 and indicated that it aims to achieve an additional cost savings of approximately $100 million in 2025.
The company's brands and brokerages closed more than 950,000 deals in 2024, reporting 700,589 transaction sides for its franchise business, Anywhere Brands (Corcoran, Century 21, Sotheby's International Realty, Coldwell Banker, ERA and Better Homes and Gardens) and 249,421 closed transactions for the Anywhere Advisors (company-owned brokerages).
What Anywhere had to say
On Clear Cooperation: Anywhere CEO Ryan Schneider mentioned a recent op-ed from Sue Yannaccone, president and CEO of Anywhere Brands and Anywhere Advisors, and he highlighted the company's "relax, not repeal" position on the ongoing Clear Cooperation debate, saying that the two opposing sides that seek to either totally repeal the policy or keep it as is "have some issues."
"We've been telling people to relax mandatory rules for a number of years, and since people didn't listen to us on a participation rule, we all paid dearly for that," Schneider said. "But on the flip side, a total repeal and moving the world to private listings networks — I don't think it's good for the consumer."
On private listing networks: Schneider elaborated on his concern over private listings but told investors that the company is prepared should the Clear Cooperation Policy be repealed, highlighting Anywhere's market position and the strength of its luxury brands.
"If the world goes to private listings, we will not let our agents be disadvantaged — we have more listings to make into private listings than anybody does," he said. "I think that's a short-sighted way for our industry to go, but we've got the technology ready, we have the people ready. We've thought through all the issues with it, and we're ready, but it's not our recommendation."
On buyer agreements: Schneider conceded that he "was a little bit wrong" on Anywhere's strategy of offering five different buyer agreements for various purposes. Instead, more consumers are opting to go with the typical six-month exclusivity agreement versus other, shorter term agreements or ones that are property specific.
"North of 80% of our buyers are signing that agreement," he said of the six-month exclusive contract. "And that just blows me away. And it's awesome. And so, frankly, we're probably going to end up discontinuing some of the other ones that just don't get much usage or much traction because consumers aren't really interested in them."
Key numbers
Revenue: $1.4 billion, an increase of $112 million year-over-year but down from $1.5 billion in Q3. Anywhere posted revenue of $5.7 billion for the full year, an increase of $56 million year-over-year, the company said.
Cash and cash equivalents: $118 million in Q4, up from $102 million in the previous quarter. Anywhere also noted that it expects its free cash flow — excluding one-time items — to be similar to 2024.
Net income/loss: Anywhere reported a net loss of $64 million for the quarter (or adjusted net loss of $49 million) and a net loss of $128 million for the year — a drop of $31 million.
Operating EBITDA (earnings before interest, taxes, depreciation and amortization): $52 million, up $24 million year-over-year, and $290 million, a $35 million increase year-over-year.
Transactions: For Q4: 171,609 closed transaction sides for Anywhere Brands and franchise groups (Corcoran, Century 21, Sotheby's International Realty, Coldwell Banker, ERA and Better Homes and Gardens), and 59,388 sides for Anywhere Advisors, its owned brokerage group. 2024 year-end: 700,589 closed transaction sides for Anywhere Brands and franchise groups and 249,421 closed sides for Anywhere Advisors. Anywhere Title Group reported 103,612 purchase title and closing units and 10,225 refinance transactions for the full year.