It’s earnings report time! Real estate and mortgage giants have begun publishing their wins and losses for the first quarter of 2023 and we’re tracking all the numbers for you.
Zillow Posts New Loss Of $22 Million In Q1
Zillow lost $22 million between January-March of the year, according to its latest earnings report. Residential revenue decreased 14 percent year-over-year to $361 million, driven primarily by lower Premier Agent revenue as a result of weakness in the overall housing market that saw total industry transaction dollars decline 27 percent annually.
Premier Agent revenue decreased 16 percent year-over-year, outperforming the company’s expectation of a 23-28 percent decrease in Q1.
“We’re starting to see our investments pay off, with Q1 financial results that outperformed the top end of our outlook,” said Zillow co-founder and CEO Rich Barton. “We’re capturing more customer demand and connecting more of that demand to our strengthening partner network, and these numerous incremental improvements have added up to make a real impact on our business. Our powerful brand and strong balance sheet put us on solid footing as we build the housing super app and help get more and more people home.”
Rentals revenue increased 21 percent to $74 million, compared to Q1 of 2022, as the company continued to see strong traffic and growth in multifamily properties. Mortgages revenue was $26 million, down 43 percent.
Anywhere Sees Homesale Volume Sink By 31 Percent
“Tough market” seems to be the tone coming out of brokerages this week as execs post their Q1 earnings—and Anywhere is no exception.
The company has reported quarterly revenue of $1.1 billion, a 31 percent decrease compared to the first quarter of 2022. Homesale transaction volume declined by 31 percent.
As a whole, Anywhere posted a net loss of $138 million and adjusted net loss of $106 million.
“In the first quarter, we remained focused on what we can control and on our relentless commitment to execution,” said Charlotte Simonelli, Anywhere executive vice president, chief financial officer, and treasurer. “This includes our $200 million full year cost savings program and ongoing operational efficiencies, combined with strategic innovation and industry leadership will set our business up to drive results and emerge from this market even stronger.”
Looking ahead to the second quarter of 2023, Anywhere expects second quarter transaction volume to be down around 25 percent versus the prior year. Consistent with industry forecasts, Anywhere expects quarterly transaction volume to improve throughout 2023, but expect full year 2023 transaction volumes to decline about 15-20 percent year-over-year.
Offerpad Sells 99 Percent Of Legacy Inventory
How do you improve your losses following a tough end of the year? If you’re Offered, you sell, sell, sell!
The iBuyer reports that it either sold or currently has under contract some 99 percent of its legacy inventory, helping to improve the company’s bottom line. Per its latest earnings report, gross profit (loss) was $7.3 million compared to $44.9 million in Q1 of 2022. Net loss was $59.4 million compared to $121.1 million
Offerpad’s Q1 revenue was $609.6 million compared to $677.2 million at the end of Q1 last year.
“We are pleased to see the expected sequential improvement in our quarterly results materialize,” said Brian Bair, Chairman and CEO of Offerpad. “Net Loss improved 51 percent and Adjusted EBITDA improved 57 percent over the fourth quarter 2022. Acquisition volume has also steadily increased each month in 2023, with homes acquired after the market shift showing positive performance. During the last three quarters we have acted decisively to responsibly sell through our legacy inventory. We are now focused entirely on our go forward plans to simplify residential real estate and build an extensive suite of solutions.”
eXp World Holdings Reports 16 Percent revenue Decline
Real estate powerhouse eXp leaned into the company’s operational wins during Q1 in its latest earnings report, likely hoping to soften the financial blow.
According to the report, eXp World Holdings saw its revenue decrease by 16 percent to $850.6 million. Gross profit decreased 12 percent to $73.1 million. For the whole of Q1, net income came to just $1.5 million.
“During the first quarter, the financial benefits of our variable cost model were apparent as we generated positive net income and over $39 million of operating cash flow despite the global residential real estate market downturn,” said Jeff Whiteside, CFO and Chief Collaboration Officer of eXp World Holdings. “Our International Realty segment had a record revenue quarter with 52 percent year-over-year growth, and we remain focused on driving durable, profitable growth across the eXp World Holdings portfolio.”
Of the aforementioned operational wins, eXp managed to increase its agent and broker count by 12 percent to 87,327 as of March 31, 2023.
As a whole, closed real estate transactions decreased 10 percent to 102,305, while volume decreased 20 percent to $33.2 billion.