Earnings statements for the third quarter of the year are rolling out and we’re diving in to examine the market slowdown’s impact on revenue and growth for some of the industries biggest companies.
RE/MAX Holdings has announced it generated revenue of $88.9 million in the third quarter of 2022, a decrease of $2.1 million, or 2.3 percent, compared to $91 million in the third quarter of 2021. Revenue excluding the Marketing Funds was $66.2 million in the third quarter of 2022, a decrease of 2.2 percent.
The decrease was attributable to negative organic revenue growth of 4.9 percent, lower broker fee revenue and an increase in recruiting incentives, partially offset by Motto growth and increased events-related revenue. The earnings report also points to rising interest rates that have adversely impacted affordability and weakened housing demand resulting in fewer transactions and, by extension, lower broker fee revenue.
“Our third-quarter results showed solid performance, driven by our 2021 RE/MAX INTEGRA acquisition and growing mortgage business, which helped offset the impact from increasingly difficult housing market conditions,” said Steve Joyce, RE/MAX Holdings Chief Executive Officer. “We expect our strategic growth initiatives to provide similar benefits in the coming quarters. While not immune to the impact of shifting housing conditions, we believe our 50-year track record amply shows we are insulated far better and are more resilient than most. Simply put, our business is built to last.”
Total operating expenses were $83.7 million for the third quarter of 2022, a decrease of $44.9 million, or 34.9 percent. The company’s total agent count increased 2.4 percent last quarter to 144,300 agents.