Fathom Holdings Inc (FTHM) 2023 Q3 法說會逐字稿

(Operator Instructions) Please note this event is being recorded.

（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Alex Kovtun with Gateway Group. Please go ahead.

我現在想將會議交給 Gateway Group 的 Alex Kovtun。請繼續。

Great. Thank you, operator, and welcome, everybody, to the Fathom Holdings' 2023 third quarter conference call. I'm Alex Kovtun with Gateway Group, Fathom's investor relations firm.

偉大的。謝謝業者，歡迎大家參加 Fathom Holdings 的 2023 年第三季電話會議。我是 Alex Kovtun，來自 Fathom 的投資者關係公司 Gateway Group。

Before I turn things over to the management team, I want to remind listeners that today's call may include forward-looking statements within the meaning of the Securities Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to numerous conditions, many of which are beyond the company's control, including those set forth in the Risk Factors section of the Company's Form 10 K for the year ended December 31, 2022, as well as our latest Form 10 Q and other Company filings made with the SEC, copies of which are available on the SEC's website, www.SEC.gov. as a result of those forward-looking statements. Actual results could differ materially. Fathom undertakes no obligation to update any forward-looking statements after this today's call, except as required by law.

在我將事情轉交給管理團隊之前，我想提醒聽眾，今天的電話會議可能包含1995 年《證券私人證券訴訟改革法案》含義內的前瞻性陳述。此類前瞻性陳述受到許多條件的約束，其中許多是其中超出了公司的控制範圍，包括公司截至 2022 年 12 月 31 日的 10 K 表格的風險因素部分中列出的因素，以及我們最新的 10 Q 表格和向 SEC 提交的其他公司文件、副本其中可在SEC 網站www.SEC.gov 上取得。這些前瞻性陳述的結果。實際結果可能存在重大差異。除法律要求外，Fathom 不承擔在今天的電話會議後更新任何前瞻性聲明的義務。

Please also note that during this call, we will be discussing adjusted EBITDA, which is a non-GAAP financial measure as defined by SEC Regulation G. A reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measures is included in today's press release, which is now posted on Fathom's website.

另請注意，在本次電話會議中，我們將討論調整後的EBITDA，這是根據SEC G 條例定義的非GAAP 財務指標。此非GAAP 財務指標與最直接可比較的GAAP 指標的調節表包含在今天的報告中。新聞稿，現已發佈在 Fathom 網站上。

With that, I'll turn the call over to Fathom's Founder, Chairman, and CEO, Josh Harley. Josh?

接下來，我會將電話轉給 Fathom 的創辦人、董事長兼執行長 Josh Harley。喬許？

Thanks, Alex. Good afternoon, and welcome, everyone, to our third quarter 2023 earnings call. We're pleased to share the recent progress we've made advancing our growth strategy despite the volatility in interest rates and the broader residential real estate market. I want to start by thanking our Fathom family across each of our businesses for their hard work and dedication as we continue to navigate the real estate market. This has been one of the most difficult years in finance history, but through the hard work of our team, we've been able to demonstrate that we can adapt and thrive even in the challenging economic times.

謝謝，亞歷克斯。下午好，歡迎大家參加我們的 2023 年第三季財報電話會議。儘管利率波動且住宅房地產市場更廣泛，但我們很高興與大家分享我們在推動成長策略方面取得的最新進展。首先，我要感謝我們各業務領域的 Fathom 家族，在我們繼續開拓房地產市場的過程中，他們的辛勤工作和奉獻精神。這是金融史上最困難的年份之一，但透過我們團隊的辛勤工作，我們已經能夠證明，即使在充滿挑戰的經濟時代，我們也能夠適應並蓬勃發展。

Before turning the call over to our President and CFO, Marco Fregenal for a detailed review of our financial results I'd like to touch on a few key highlights during the quarter and the steps we're taking to adjust to the current environment. During the third quarter, we witnessed continued pressure on transactions throughout our industry.

在將電話轉交給我們的總裁兼財務長 Marco Fregenal 詳細審查我們的財務業績之前，我想談談本季的一些關鍵亮點以及我們為適應當前環境而採取的步驟。第三季度，我們目睹了整個產業交易的持續壓力。

In September, the residential real estate market changed rapidly as mortgage rates exceeded 8%, and we experienced an increase in cancellations, which impacted our transactions during the quarter. Despite this volatility and the highest mortgage rates in 20 years, we were encouraged by performance in agent growth in a very difficult market environment.

9 月份，住宅房地產市場發生了迅速變化，抵押貸款利率超過 8%，取消訂單增多，影響了本季的交易。儘管存在這種波動性和 20 年來最高的抵押貸款利率，但在非常困難的市場環境中代理商的成長表現令我們感到鼓舞。

During the third quarter, we delivered revenue of $93.5 million, which was in line with our guidance range. We also completed approximately 10,303 real estate transactions and while down 15% from the prior year's third quarter transaction number of 12,077, we do feel good about this number when compared to the entire US residential real estate market we continue to take market share from legacy brokerage firms and even saw year-over-year transaction growth in several of our markets.

第三季度，我們實現了 9,350 萬美元的收入，符合我們的指導範圍。我們也完成了大約10,303 筆房地產交易，雖然比去年第三季的12,077 筆交易數量下降了15%，但與整個美國住宅房地產市場相比，我們確實對這個數字感到滿意，我們繼續從傳統經紀公司奪取市場份額公司甚至在我們的幾個市場中看到了同比交易成長。

We also increased our agent network 13% to over 11,333 agents at the end of the quarter, which compares favorably to all of one of our public peers domestic agent growth, while the residential real estate industry remains challenging. We continue to believe that our future remains bright and by continuing to grow our agent base, we are positioning Fathom for continued success once the industry rebounds. We are making meaningful progress in advancing our growth strategy, expanding our agent network, optimizing our business for profitable growth and taking market share with an industry leading commission model. But it continues to resonate well in this environment, and we believe we'll continue to do so going forward.

截至本季末，我們的代理網絡也增加了 13%，達到超過 11,333 名代理，這與我們所有上市同行的國內代理增長相比都表現良好，而住宅房地產行業仍然充滿挑戰。我們仍然相信，我們的未來仍然光明，透過繼續擴大我們的代理基礎，我們將讓 Fathom 在行業反彈後繼續取得成功。我們在推動成長策略、擴大代理商網絡、優化業務以實現盈利增長以及透過行業領先的佣金模式佔領市場份額方面取得了有意義的進展。但它在這種環境下繼續產生良好的共鳴，我們相信我們將繼續這樣做。

Elevated interest rates continue to put pressure on home affordability. So the recent decline in mortgage rates following the Federal Reserve's November rate pause is encouraging. While we don't have a crystal ball to predict, if we're if we reach the bottom of this current cycle of the industry or if rates will start to normalize in the near term, what we do know is that the industry will eventually recover and Fathom is well positioned to continue growing market share. Regardless of when that happens.

利率上升繼續給住房負擔能力帶來壓力。因此，聯準會 11 月暫停升息後，近期抵押貸款利率的下降令人鼓舞。雖然我們沒有水晶球可以預測，但如果我們到達當前行業週期的底部，或者利率是否會在短期內開始正常化，我們所知道的是，該行業最終將復蘇，Fathom 處於有利地位，可以繼續擴大市場份額。不管什麼時候發生。

Let me provide an update on our royalty business and why we remain well positioned today to grow our agent network and ultimately expand our reach during this difficult market environment. Fathom Realty continues to be among the fastest growing residential real estate brokerages in the U.S., and we're proud of our growth this year as we expand our presence nationwide to reach more buyers and sellers. Today, Fathom Realty operates in 37 states and the District of Columbia.

讓我介紹一下我們的特許權使用費業務的最新情況，以及為什麼我們今天仍然處於有利地位，可以發展我們的代理網絡，並最終在這個困難的市場環境中擴大我們的影響力。 Fathom Realty 仍然是美國成長最快的住宅房地產經紀公司之一，我們為今年的成長感到自豪，因為我們在全國範圍內擴大了業務範圍，接觸更多的買家和賣家。如今，Fathom Realty 在 37 個州和哥倫比亞特區開展業務。

We believe our model allows us to succeed irrespective of the market environment, and we're well positioned to attract an ever-increasing number of real estate agents from legacy firms during downturns in the industry when agents struggle to generate leads and close sales. We continue to believe that we are the most attractive home for agents long term as we help them ultimately earn more money with an industry leading flat fee commission split to agents.

我們相信，無論市場環境如何，我們的模式都能讓我們取得成功，並且在行業低迷時期，當代理商難以產生銷售線索和完成銷售時，我們處於有利位置，可以吸引越來越多的來自傳統公司的房地產經紀人。我們仍然相信，從長遠來看，我們是對代理商最具吸引力的家，因為我們透過業界領先的固定費用分配給代理商來幫助他們最終賺取更多的錢。

During the third quarter, we grew our agent network by 13%, which included the existing agent referral efforts underway. We also recently announced three walk over so far in Q4 in Louisiana, Massachusetts and California. We promise to grow across all 50 states as well as deeper in each state, and we continue to take steps to deliver on that promise our agent growth this quarter further validates that we're winning through innovation and a truly disruptive business model that continues to resonate among agents. Our new agents will have full access to thousands proprietary cloud-based software intelligent and will also benefit from having additional staffing services to offer their clients, including mortgage and insurance services as we continue to help all of our agents grow their business.

第三季度，我們的代理商網路成長了 13%，其中包括正在進行的現有代理商推薦工作。我們最近還宣布了第四季度迄今在路易斯安那州、馬薩諸塞州和加利福尼亞州的三場步行活動。我們承諾在所有50 個州以及每個州進行更深入的發展，我們將繼續採取措施兌現這一承諾，本季度我們的代理商成長進一步證明我們正在透過創新和真正顛覆性的商業模式取勝，這種模式將繼續引起代理商的共鳴。我們的新代理商將能夠完全存取數千個基於雲端的專有智慧軟體，並且隨著我們繼續幫助所有代理商發展業務，還將受益於為客戶提供的額外人力資源服務，包括抵押貸款和保險服務。

We see a strong pipeline of workover opportunities and believe that we will continue to attract high-quality agent teams and brokerages to our unique, low-cost and disruptive model. While most of our peers are experiencing flat or declining agent numbers domestically, our agent value proposition remains compelling and allows us to take share now to better position Fathom for a higher overall growth rate once the market recovers, our cost to acquire one agent during Q4 remained low at approximately $1,000, making our breakeven on each agent less than the $1,150 that we'll earn back on the first sale. We also maintained strong retention rates, which we believe exceptionally positive news.

我們看到了強大的修井機會，並相信我們將繼續吸引高品質的代理商團隊和經紀公司採用我們獨特、低成本和顛覆性的模式。雖然我們大多數同行的國內代理商數量持平或下降，但我們的代理商價值主張仍然引人注目，使我們能夠立即佔據份額，以便在市場復甦後更好地定位Fathom，從而實現更高的整體成長率（我們在第四季度收購一名代理商的成本）仍然保持在大約1,000 美元的低位，這使得我們在每個代理商身上的盈虧平衡點低於我們在第一筆銷售中賺取的1,150 美元。我們也保持了很高的保留率，我們認為這是非常積極的消息。

Given the backdrop of Asia's leading the industry as most of you have no doubt seen the National Association of Realtors, along with several of our country's largest brokerages, were found liable in a recent legal battle over agent commissions I have no doubt that we will see this go to the appeals court and even higher should it be necessary. It might be years before we see any changes in the real estate industry as a result of these lawsuits. But what I can say is that we might be one of the only real estate brokerages to be a beneficiary of any changes that compress agent commissions.

鑑於亞洲領先該行業的背景，你們中的大多數人無疑都看到全國房地產經紀人協會以及我國幾家最大的經紀公司在最近一場有關代理佣金的法律糾紛中被判負有責任，我毫不懷疑我們會看到如果有必要的話，可以上訴到上訴法院，甚至更高一級的法院。我們可能需要數年時間才能看到這些訴訟對房地產行業帶來的任何變化。但我可以說的是，我們可能是唯一受益於壓縮仲介佣金變動的房地產經紀公司之一。

Unlike our peers who are who were accused of conspiring, including the key commissions high, we did not put pressure on our agents to maintain higher commission percentages. The fact is our flat fee commission model does not change regardless of whether an agent charges, 3% or 2% or even 1%.

與被指控串謀（包括收取高額佣金）的同行不同，我們沒有向我們的代理商施加壓力，要求其維持較高的佣金比例。事實上，無論代理商收費是 3% 還是 2%，甚至 1%，我們的固定費用佣金模式都不會改變。

Lastly, let me briefly touch on our path to profitability profitable growth as we as in the steps that we're taking to optimize our business in the current environment.

最後，讓我簡要談談我們在當前環境下優化業務所採取的步驟，以實現獲利能力和利潤成長。

In Q2, we achieved our goal of adjusted EBITDA breakeven, and we've continued to make tremendous progress in reducing our cash burn. In Q3, we fell short of maintaining adjusted EBITDA due to the slower home sales in September as a result of further Fed rate increases.

第二季度，我們實現了調整後 EBITDA 盈虧平衡的目標，並且在減少現金消耗方面繼續取得巨大進展。第三季度，由於聯準會進一步升息導致 9 月房屋銷售放緩，我們未能維持調整後的 EBITDA。

But we have since identified additional opportunities to further rightsize our cost structure for the current environment and better position Fathom for improved operating leverage when the residential real estate market rebounds with current market conditions in mind, we're working with each of our business heads to reduce company-wide expenses by a total of $1.2 million per quarter going forward, which we expect to see the full benefit of in Q1 of next year.

但此後，我們發現了更多機會，可以根據當前環境進一步調整我們的成本結構，並在住宅房地產市場根據當前市場狀況反彈時更好地定位Fathom，以提高營運槓桿，我們正在與每個業務負責人合作未來每季公司範圍內的支出總共減少 120 萬美元，我們預計明年第一季將看到全部效益。

By further rightsizing the Company's expenses, we've set a target to achieve cash flow breakeven as early as Q2 of next year, while remaining committed to getting back to positive adjusted EBITDA in Q1 of next year and going forward, it's important to note that even though we are finding ways to cut costs, we will not sacrifice our ability to continue growing and attracting agents. As a matter of fact, we've increased the size of our recruiting team and plan to continue doing so by growing that recruiting team in 2024.

透過進一步調整公司的開支，我們設定了最早在明年第二季度實現現金流收支平衡的目標，同時仍致力於在明年第一季恢復正調整後的 EBITDA 並展望未來，值得注意的是，儘管我們正在尋找削減成本的方法，但我們不會犧牲繼續發展和吸引代理商的能力。事實上，我們已經擴大了招募團隊的規模，並計劃在 2024 年繼續擴大招募團隊規模。

In summary, we remain encouraged by the trends we're seeing across our business despite a challenging quarter for Fathom and the real estate industry.

總而言之，儘管 Fathom 和房地產行業面臨著充滿挑戰的季度，但我們對整個業務的趨勢仍然感到鼓舞。

With that, I'd like to pass it over to Marco for a financial update.

至此，我想將其轉交給 Marco，以了解最新的財務狀況。

Thank you, Josh. I'll start with a detailed review of our third quarter 2023 results, and then we'll finish with a discussion on guidance.

謝謝你，喬許。我將首先詳細回顧 2023 年第三季的業績，然後我們將討論指導意見。

Third quarter revenue declined 16% year over year to $93.5 million compared with $111.3 million for last year's third quarter. This decrease was primarily attributed to a 15% decrease in transaction volume, along with a 3% decrease in the average home prices during the quarter. GAAP net loss for the third quarter was $5.5 million or a loss of $0.34 per share compared with a loss $6 million or a loss of $0.38 per share for the 2022 third quarter.

第三季營收年減 16% 至 9,350 萬美元，去年第三季營收為 1.113 億美元。這一下降主要歸因於本季交易量下降 15%，以及平均房價下降 3%。第三季 GAAP 淨虧損為 550 萬美元，即每股虧損 0.34 美元，而 2022 年第三季的淨虧損為 600 萬美元，即每股虧損 0.38 美元。

Adjusted EBITDA loss, a non-GAAP measure was $253,000 in the third quarter versus adjusted EBITDA loss of $2.3 million for the third quarter of 2022. The $2 million improvement in adjusted EBITDA this quarter was largely driven by a reduction in expenses and additional agent fees that went into effect in January. Notably, this improvement was achieved despite the 16% decrease in revenue this quarter compared to Q3 of 2022. While we experienced an adjusted EBITDA loss this quarter, our goal is to reach adjusted EBITDA breakeven by Q1 of 2024. Bolivia going forward after Q1 will continue to deliver approximately 70% of the increase in gross profit to the adjusted EBITDA line.

以非公認會計準則衡量，第三季調整後EBITDA 損失為253,000 美元，而2022 年第三季調整後EBITDA 損失為230 萬美元。本季調整後EBITDA 增加200 萬美元，主要是因為費用和額外代理費用的減少該規定於一月生效。值得注意的是，儘管本季營收較2022 年第三季下降16%，但仍實現了這一改善。雖然本季我們經歷了調整後EBITDA 損失，但我們的目標是到2024 年第一季實現調整後EBITDA 損益平衡。玻利維亞在第一季之後將繼續將毛利成長的約 70% 貢獻給調整後的 EBITDA 線。

G&A expense was $9.8 million in the third quarter or 10.5% of revenue compared with $11.5 million or 10.4% of revenue for the same period a year ago. Again, to be noted, the G&A did not meaningfully increase as a percentage of revenue despite a 16% decrease in revenue. In total, our operations and support, technology and development and G&A expenses decreased by almost $2 million from $15.4 million in Q3 of 2022 to $13.4 million in Q3 of 2023.

第三季的一般管理費用為 980 萬美元，佔營收的 10.5%，而去年同期為 1,150 萬美元，佔營收的 10.4%。再次需要注意的是，儘管收入下降了 16%，但 G&A 在收入中所佔的百分比並沒有顯著增加。總的來說，我們的營運和支援、技術和開發以及一般管理費用從 2022 年第三季的 1540 萬美元減少到 2023 年第三季的 1340 萬美元，減少了近 200 萬美元。

This reduction reflects the benefit of our expense reduction initiatives implemented earlier this year and will continue to see a decrease next quarter into Q1 of 2024. As Josh mentioned earlier, we plan to reduce company-wide expenses by a total of $1.2 million per quarter going forward to further rightsize the company's expenses in the current market environment. Expenses related to marketing activities were $796,000 for the third quarter compared to $1.5 million for last year's third quarter. The decrease in marketing expenses related to leveraging internal resources and optimizing advertising expenditure.

這一減少反映了我們今年早些時候實施的費用削減計劃的好處，並將在下個季度到2024 年第一季繼續減少。正如喬希之前提到的，我們計劃每季減少全公司費用總計120萬美元在當前市場環境下進一步調整公司開支。第三季與行銷活動相關的費用為 796,000 美元，而去年第三季為 150 萬美元。行銷費用的減少與利用內部資源和優化廣告支出有關。

Now let's spend some time reviewing our business segment results in more detail. We closed 10,303 real estate transactions in the quarter, a 15% decrease from last year's third quarter, but below the 20% reduction in the overall market experience. We ended Q3 with 11,333 agents, which represents a 13% growth rate over Q3 of 2022, while the National Association of Realtors saw membership decline of approximately 1.6%, we have seen an increase of 25% in onboarding starts in Q3 over Q2, which should result in increase in number of agents joining pattern going forward.

現在，讓我們花一些時間更詳細地回顧一下我們的業務部門的表現。本季我們完成了 10,303 筆房地產交易，比去年第三季減少了 15%，但低於整體市場體驗 20% 的降幅。截至第三季度，我們有11,333 名經紀人，這比2022 年第三季度增長了13%，而全國房地產經紀人協會的會員人數下降了約1.6%，我們發現第三季度的新入職經紀人比第二季增加了25%，這應該會導致未來加入模式的代理商數量增加。

Revenue for the real estate division was $88.2 million compared to $105 million for the same periods last year, which represents a 16% decrease, of which about 3% is related to a decrease in prices of homes and 13% is attributed to decrease in transactions.

房地產部門的收入為8,820萬美元，較去年同期的1.05億美元下降16%，其中約3%與房價下降有關，13%與交易減少有關。

Adjusted EBITDA in our real estate division was approximately $1.6 million, an increase of $1 million compared to adjusted EBITDA of $566,000 in Q3 of 2022. This increase was achieved despite a 15% decrease in transactions this quarter compared to the same quarter last year and reflects our increasing fees and favorable impact of cost cutting measures.

我們房地產部門的調整後EBITDA 約為160 萬美元，與2022 年第三季調整後EBITDA 566,000 美元相比增加了100 萬美元。儘管本季交易量較去年同期下降15%，但仍實現了這一成長，反映出我們不斷增加的費用和削減成本措施的有利影響。

Our mortgage business generated revenues of $1.9 million in the third quarter compared to $2.8 million in the prior year period. Market adjusted EBITDA for Q3 was a loss of $293,000 compared to an adjusted EBITDA loss of $406,000 for the same period last year. Our team continues to identify opportunities to reduce expenses to rightsize our mortgage business going forward, as well as increase revenues by recruiting additional loan officers going forward, we do expect our mortgage business to increase given the addition of the Elite Financial Group and its 21 mortgage professionals.

我們的抵押貸款業務第三季的營收為 190 萬美元，而去年同期為 280 萬美元。第三季經市場調整的 EBITDA 虧損 293,000 美元，而去年同期調整後的 EBITDA 虧損 406,000 美元。我們的團隊將繼續尋找減少開支的機會，以調整我們未來抵押貸款業務的規模，並透過招募更多的信貸員來增加收入。鑑於精英金融集團及其21 抵押貸款業務的增加，我們確實預計我們的抵押貸款業務將會增加專業人士。

Moreover, recently, we've seen some positive movement in interest rates. This improvement allows borrowers to see rate options at par. This, combined with the additions we made to the team are resulted in an increase of 64% in mortgage applications in Q3 of 2023 versus Q3 of last year. BIA in our insurance business generated revenues of $1.7 million for the quarter compared to revenues of $1.8 million for the same period a year ago. This represents a decrease of approximately $100,000.

此外，最近我們看到利率出現了一些積極的變化。這項改進使借款人能夠看到平價利率選擇。再加上我們對團隊的補充，2023 年第三季的抵押貸款申請量比去年第三季增加了 64%。我們保險業務的 BIA 本季營收為 170 萬美元，而去年同期的營收為 180 萬美元。這意味著減少了大約 10 萬美元。

Adjusted EBITDA increased 50% from $370,000 in Q3 of 2022 to over $558,000 in Q3 of 2023. This reflects the great work our DIA team has done in Q3 for adjust expenses while still growing revenue. Their status of their side have had revenue of $883,000 for the quarter compared to about $958,000 revenues for Q3 of 2022. Adjusted EBITDA was a negative $22,000 compared to a negative $24,000 adjusted EBITDA in Q3 of 2022.

調整後的EBITDA 從2022 年第三季的370,000 美元增加到2023 年第三季的558,000 美元以上，成長了50%。這反映了我們的DIA 團隊在第三季在調整費用方面所做的出色工作，同時收入仍在成長。他們本季的營收為 883,000 美元，而 2022 年第三季的營收約為 958,000 美元。調整後 EBITDA 為負 22,000 美元，而 2022 年第三季調整後 EBITDA 為負 24,000 美元。

Now moving to our technology segment. Revenues increased 19% to $836,000 compared to $702,000 for last year's third quarter. Adjusted EBITDA loss for the quarter increased by 38% from a loss of $372,000 in Q3 of last year to a loss of $514,000 in the current quarter. This represents an increased investment in agent technologies.

現在轉向我們的技術部分。與去年第三季的 702,000 美元相比，營收成長了 19%，達到 836,000 美元。該季度調整後 EBITDA 虧損增加了 38%，從去年第三季的虧損 37.2 萬美元增至本季的虧損 51.4 萬美元。這代表著對代理技術的投資增加。

Our led by team continues to increase its footprint across the country to reach over 245 MLSs and 420,000 agents at the end of the quarter, followed by powers more than 4 million community pages with over 125,000 neighborhood reports being created.

我們領導的團隊繼續擴大其在全國的覆蓋範圍，到本季末已覆蓋超過 245 個 MLS 和 420,000 名代理商，隨後為超過 400 萬個社區頁面提供支持，並創建了超過 125,000 份社區報告。

We continue to focus on our balance sheet given the dynamic real estate market conditions. Our cash burn for the quarter was $2.5 million and was largely due to a $1.3 million decrease in accounts payable, $500,000 in additional investments in our SaaS platforms for our agents plus increases in prepaid and certain financing our base.

鑑於房地產市場的動態變化，我們將繼續關注我們的資產負債表。本季我們的現金消耗為250 萬美元，主要是因為應付帳款減少了130 萬美元、為我們的代理商對SaaS 平台進行了50 萬美元的額外投資，以及預付和某些基礎融資的增加。

We ended the quarter with a cash position of $6.6 billion. And given the aforementioned cost reductions of $1.2 million per quarter, combined with the increase in revenue from additional agent growth, we believe our cash position and overall liquidity provide us with the adequate runway to grow the business and execute our strategy through operating cash flow breakeven by Q2 of 2024. We did not purchase any shares in the third quarter under the stock repurchase plan and approximately [4 million], which remains under the authorization.

本季結束時，我們的現金部位為 66 億美元。鑑於上述每季120 萬美元的成本削減，再加上代理商額外成長帶來的收入增加，我們相信我們的現金狀況和整體流動性為我們提供了足夠的跑道來發展業務並透過營運現金流盈虧平衡來執行我們的策略到2024年第二季。第三季我們沒有根據股票回購計劃購買任何股票，大約[400萬]，仍在授權範圍內。

Before turning the call back to Josh on, let me briefly touch on guidance. Given the continued uncertainty in the macro environment, and we will not be providing guidance for the fourth quarter ending December 31, 2023. We will revisit guidance expectations next year.

在重新打電話給喬許之前，讓我簡單談談指導。鑑於宏觀環境持續存在不確定性，我們將無法提供截至 2023 年 12 月 31 日的第四季指引。我們將在明年重新檢視指引預期。

With that, I'll turn the call back to Josh for closing remarks.

之後，我將把電話轉回給喬什，讓他作結束語。

Thank you, Marco. We remain focused on execution and are taking necessary steps to better position fab in the current environment and once the market recovers, I want to thank the entire Fathom team on their hard work as we navigate this market and continue to serve our clients.

謝謝你，馬可。我們仍然專注於執行，並正在採取必要的措施，以便在當前環境中更好地定位晶圓廠，一旦市場復甦，我要感謝整個Fathom 團隊在我們駕馭這個市場並繼續為我們的客戶提供服務的過程中所做的辛勤工作。

With that, operator, let's open the call up for questions.

那麼，接線員，讓我們開始提問。

(Operator Instructions) Tom White, D.A. Davidson.

（操作員說明）Tom White，D.A.戴維森。

Hey, this is Wyatt on for Tom. Thanks for taking our questions. My first one is for Josh. Curious whether you guys think this latest round of lawsuits targeting the NAR and more recently a broader set of brokerages might result in any meaningful shakeup and where agents decide to hang their license or which platforms they migrate to.

嘿，這是湯姆的懷亞特。感謝您回答我們的問題。我的第一個是給喬希的。很好奇你們是否認為針對 NAR 以及最近更廣泛的經紀公司的最新一輪訴訟可能會導致任何有意義的重組，以及代理商決定在哪裡懸掛他們的許可證或他們遷移到哪些平台。

And that's, of course, a fantastic question. I had been on top of the lawsuits actually long before you guys started seeing in the news and watching and monitoring it. The first thing I would say is that I think we're a long time away from any changes actually happened I think as I've mentioned in the call, I think it's going to be a while we know we're going to go into appeals. And if we lose there, we're going to take over the next the next level.

當然，這是一個很棒的問題。實際上，早在你們開始看到新聞、觀看和監控它之前，我就已經在處理訴訟了。我要說的第一件事是，我認為我們距離實際發生的任何變化還有很長一段時間，我想正如我在電話中提到的，我認為我們需要一段時間才能知道我們將進入上訴。如果我們在那裡輸了，我們將接管下一個級別。

But what I think about this, I mean, when you look at sort of the claims that were made, there was a lot of bias and in this lawsuit that unfortunately the places were allowed to share things that they probably should, I believe a lot of a lot of share and the defense was not allowed to share things that were a little strange. I mean things that were gone, for example, with our partners when the claims was the idea that sharing commissions was unethical and unfair and yet in the state of Missouri, which is where the lawsuits were completely legal, it's actually in the books is being allowed and yet the judge would not allow our defense attorneys to share that with the juries. So I thought that was incredibly strange.

但我對此的看法是，當你看看所提出的各種主張時，你會發現存在著許多偏見，在這場訴訟中，不幸的是，這些地方被允許分享他們可能應該分享的東西，我相信很多大量的分享，而防守方不允許分享一些有點奇怪的東西。我的意思是，那些已經消失的事情，例如，與我們的合作夥伴一起，當時的主張是分享佣金是不道德和不公平的，但在密蘇裡州，訴訟是完全合法的，它實際上在書中正在被允許，但法官不允許我們的辯護律師與陪審團分享這一點。所以我覺得這非常奇怪。

I think there's a lot of a lot of things that happened in the trial that I think if we're able to we do it get a redo, then I think things will turn out differently. But even if they don't at the end of the day, what I think is going to ultimately happen is we're going to see a couple of changes one. And if you look at the listing agreements between the agent, the listing agent and the sellers and it actually says already basically that the commissions are negotiable and has a block of shares how much we're going to pay the buyer's agent. And that's negotiable.

我認為審判中發生了很多事情，如果我們能夠重做，那麼我認為事情會有所不同。但即使他們最終沒有這樣做，我認為最終會發生的是我們將看到一些變化。如果你看一下代理人、上市代理人和賣家之間的上市協議，它實際上基本上已經說明了佣金是可以協商的，並且我們將向買方代理人支付多少股份。這是可以協商的。

I think the differences in those already there, the differences would probably need to make it very clear to the sellers that listen, my commissions are negotiable. You do not have to pay the buyer's agents. So I think if we make some of those changes, then I will satisfy a lot of what this loss. It's about number one.

我認為那些已經存在的差異，這些差異可能需要讓傾聽的賣家非常清楚，我的佣金是可以協商的。您無需向買方代理人付款。所以我認為如果我們做出一些改變，那麼我會彌補很多損失。這是關於第一名的事情。

Number two, the idea of commission sharing I think that I think if the industry goes away from that, I think it's going to shame. I think it actually hurts the consumer from China to be biased here. But I do think it hurts the consumers. I think it's very easy to be very careful and very thoughtful on the laws and rules were changed to make sure we're protecting consumer on the way down. So at the end of the day, though, if that happens, if the services are waiting and I don't have to pay 2% to 2.5% or 3% or whatever number is to the buyer's agents. They're not going to pay less for right now.

第二，佣金分享的想法，我認為如果行業放棄這一點，我認為這將是恥辱。我認為這裡的偏見實際上傷害了中國消費者。但我確實認為這傷害了消費者。我認為很容易對法律和規則進行非常謹慎和深思熟慮的修改，以確保我們在下降過程中保護消費者。因此，歸根結底，如果發生這種情況，如果服務正在等待，我就不必向買方代理支付 2% 到 2.5% 或 3% 或任何數字。他們現在不會花更少的錢。

The way it has always worked the way it currently works is the buyer's agent actually signed an agreement with the buyer that says if the seller does not pay me, this agreed upon an agreed upon amount that you agree with when you're going to be liable for that commission and often by the way that tourism has always been negotiable. I think the difference is people has got so used to the idea that that's just the way things are, but a lot of it though, trying to negotiate. So I think that will change if that changes.

它一直以來的運作方式和目前的運作方式是買方的代理人實際上與買方簽署了一份協議，其中規定如果賣方不付款給我，則雙方同意您在付款時同意的金額。對該佣金負責，並且通常透過旅遊業一直是可以談判的方式。我認為不同之處在於人們已經習慣了事情就是這樣的想法，但很多時候都在試圖進行談判。所以我認為如果情況發生變化，情況也會改變。

If a buyer realizes oh, crap, I've got to pay the buyer's agents because the seller is not going to pay. There might be some steering that happens. But sorry, DOJ, it's not agent steering. The consumer may steer them soon might look at two properties and say, well, this properties will have to pay my agent and this was not going to pay my agent. Therefore, I'm going to go at that one because under the on the hook for paying that commission so that the client may decide to steer dividends based on what's going to ultimately cost them less. So I think there might be some steering.

如果買家意識到哦，糟糕，我必須向買家的經紀人付款，因為賣家不會付款。可能會發生一些轉向。但抱歉，司法部，這不是特務指導。消費者可能很快就會引導他們查看兩處房產，然後說，好吧，這處房產將必須向我的經紀人付款，而這不會向我的經紀人付款。因此，我之所以會這樣做，是因為在支付佣金的情況下，客戶可能會決定根據最終降低他們成本的方式來引導股息。所以我認為可能會有一些指導。

So you might see sellers come back and say, okay, we'll pay some more regards regarding, let's say that none of that even happens, I don't mean to go on too long, but I will say is that if there is a compression for buyers' agents because buyers are just now to have to get paid directly from the buyer and the buyer may not have as much money because at the pace of closure costs and everything else that we may see compression happened on the buyer's agent commission. If that happens, this has been our thesis since the beginning.

所以你可能會看到賣家回來說，好吧，我們會多加一些關心，假設這一切都沒有發生，我不想說太久，但我會說，如果有對買方代理人的壓縮，因為買方現在必須直接從買方那裡獲得付款，而買方可能沒有那麼多錢，因為按照成交成本和我們可能看到的其他一切因素，買方代理人佣金會受到壓縮。如果發生這種情況，這從一開始就是我們的論點。

This has been the thesis that I started Fathom, where does that agent go to recoup that lost income? I said this before, I mean, it same idea of their commissions down 20%. Simply, the active movement of Fathom means that they'll actually make 9% more income will the same thing's true of their commission is down 20%. They can decide and they can recoup that. So it's work smarter, not harder. So I do think that long term, there will be a fab that would be a beneficiary of this change. I don't want to see those changes made. So I do think it will hurt the buyers and our clients. But if they do, I think the Fathom ends up being a beneficiary of those changes.

這就是我創辦 Fathom 的論文，那個代理人去哪裡彌補收入損失？我之前說過，我的意思是，他們的佣金下降了 20%，這也是同樣的想法。簡單來說，Fathom 的活躍趨勢意味著他們的收入實際上會增加 9%，而佣金下降 20% 也是如此。他們可以做出決定，也可以彌補損失。因此，工作要更聰明，而不是更辛苦。因此，我確實認為，從長遠來看，將會有一家晶圓廠成為這項變革的受益者。我不想看到這些改變。所以我確實認為這會傷害買家和我們的客戶。但如果他們這樣做了，我認為 Fathom 最終將成為這些變化的受益者。

Got it. Thank you for the detail. I really appreciate it. And just one follow-up. There's been some chatter about how some of these smaller independent brokerages out there faced with the prospect of another year of low total sales turnover may finally decide to move their businesses over to some of the virtual or lower-cost offerings like Fathom and others? And how do you guys make sure that that maximizes the capture of these smaller independent thirteens if in fact, that does happen?

知道了。謝謝你的詳細資料。對此，我真的非常感激。只有一個後續行動。有人討論，面對又一年低總銷售營業額的前景，一些規模較小的獨立經紀公司可能最終決定將業務轉移到一些虛擬或低成本產品，如 Fathom 等？如果事實確實如此，你們如何確保最大限度地捕獲這些較小的獨立十三人？

Yes, it's a fantastic question. So I think you probably saw a recent press release, we put out three press releases just in the last week or so. The a number of what we call walk oversight, work overs, kind of like an acquisition, but instead of actually acquiring their business, the broker owners, especially shutting down their operations, is moving their agents over. Sometimes they'll end up being the managing broker and sell them. Sometimes they'll just end up running a team and the rest of Asia at this 0.7, we're starting to see more and more of these small broker owners coming to us.

是的，這是一個很棒的問題。所以我想你可能看到了最近的新聞稿，我們在上週左右發布了三份新聞稿。許多我們所說的步行監督、輪班，有點像收購，但經紀商所有者並沒有真正收購他們的業務，而是將他們的經紀人轉移，尤其是關閉他們的業務。有時他們最終會成為管理經紀人並出售它們。有時他們最終會以這個 0.7 的價格來運營一個團隊和亞洲其他地區，我們開始看到越來越多的小型經紀商老闆來到我們這裡。

Now we are reaching out to a lot as well. We've got just an ever-increasing number of opportunities now, obviously it comes down to what was opportunity cost as it makes sense from some of these opportunities. We don't have to pay a single dollar for some of them. We do, but they're a little bit larger operations and moving the business over and we don't have the cost to feed the actual operating other acquisition. There's a lot of a lot less and we've got to do with regards to making $2 billion-plus kind of legal matter that there's a lot less we have to in that process.

現在我們也正在接觸很多東西。我們現在擁有的機會數量不斷增加，顯然這取決於機會成本，因為其中一些機會是有意義的。我們不需要為其中一些支付一美元。我們確實這樣做，但它們的業務規模更大，並且正在將業務轉移，我們沒有成本來滿足實際營運的其他收購。事情少了很多，我們必須處理價值 20 億美元以上的法律事務，在這個過程中我們要做的事情就少了很多。

So our costs are a little bit lower there as well. But to your point, that is happening and we're seeing a lot more people come to us and to make sure that we are one of the biggest recipients of it. As Marco and I indicated earlier, we've actually been investing more in our recruiting team. We built part one and part of our team is actually dedicated to just small broker owners with 20 agents, 70 agents, 100, 100 city agents and so on. And that that's all they do is they're reaching out to small brokers and saying, listen, we've been where you are. We know what you're going through.

所以我們在那裡的成本也低一些。但就你而言，這種情況正在發生，我們看到越來越多的人來找我們，並確保我們成為最大的受益者之一。正如馬可和我之前指出的，我們實際上對招募團隊進行了更多投資。我們建立了第一部分，我們團隊的一部分實際上專門為小型經紀商所有者提供服務，其中包括 20 名代理商、70 名代理商、100 名、100 名城市代理商等。他們所做的就是聯繫小型經紀人並說，聽著，我們一直在和你一樣。我們知道你正在經歷什麼。

You don't have to do this alone come over to thousands of students together. And so that message resonates with a lot of people who right now are struggling, who forget thriving forget surviving, they're barely making it and they're they're probably they probably see the writing on the wall. So they either have to do something. There's close up shop and by moving a file that allows us to continue to keep their family together, allows them to actually make money if they're coming over as a managing broker force. And so it can be a real win-win for them if they move over to FAB.

你不必單獨做這件事，可以一起去幫助成千上萬的學生。因此，這一訊息引起了許多現在正在掙扎的人的共鳴，他們忘記了繁榮，忘記了生存，他們勉強成功，他們可能看到了不祥之兆。所以他們要么必須做點什麼。有一個關閉的商店，透過移動文件，使我們能夠繼續讓他們的家人在一起，如果他們作為管理經紀人隊伍過來，就可以讓他們真正賺錢。因此，如果他們轉到 FAB，這對他們來說可能是真正的雙贏。

That's really helpful. Thank you.

這真的很有幫助。謝謝。

John Campbell, Stephens Inc.

約翰坎貝爾，史蒂芬斯公司

Hi. Good afternoon.

你好。午安.

Good afternoon. How are you?

午安.你好嗎？

I am well here. I'm doing well. Thank you and look forward to seeing you guys next week. On the brokerage additions. Let's stay on that topic grow faster. Obviously, your print your press machine has been on fire lately. You've had a flurry of those additions, Josh, you refer to those as walk overs. I'm assuming at least the ones of late. Those are all organic additions and no cash or equity fails.

我在這裡很好。我很好。謝謝你們，期待下週見到你們。關於經紀業務的補充。讓我們繼續討論這個話題，成長得更快。顯然，您的印刷機最近著火了。喬什，你已經添加了一系列的內容，你將這些內容稱為「walk-over」。我猜至少是最近的那些。這些都是有機的補充，沒有現金或股權失敗。

So I'll let Mark speak to that part of it.

所以我會讓馬克談談這部分內容。

Yeah, so it depends -- Jon, great question. And it depends on the size. In some cases, there are some more cash part and some stock, but for the but again, we are not making acquisitions or we can we do implement some signing bonuses for some of the larger ones to make the move, but it is a significant lower amount compared to a full acquisition. And so the cost is very advantageous for both sides for them and for us. And so we're beginning as I mentioned early, we've seen our onboarding starts increased by 25% this quarter. And so it's a combination of just single agents as well as a combination of smaller company. So I do we both Josh and I do believe that this is going to significantly increase, and we've seen that already from the interest in having conversations. And this is pretty much across the country.

是的，所以這取決於——喬恩，很好的問題。這取決於尺寸。在某些情況下，會有更多的現金部分和一些股票，但同樣，我們不會進行收購，或者我們可以為一些較大的公司實施一些簽約獎金來採取行動，但這是一個重要的舉措與完全收購相比，金額較低。因此，成本對於他們和我們雙方來說都是非常有利的。正如我之前提到的，我們已經開始，本季的入職啟動次數增加了 25%。因此，它是單一代理商和較小公司的組合。所以我和喬希都相信這種情況將會顯著增加，而且我們已經從對話的興趣中看到了這一點。這幾乎是全國各地的情況。

Okay. Makes sense. You guys are, I'm sure, given the conditions probably a little bit more of a price maker at this point, but I wanted to touch also on the agent count additions. I think I think in the press release you might have outlined a couple of those, but maybe if you could shortcut us how much of those agent additions hit in the third quarter versus those agents coming over into 4Q?

好的。說得通。我確信，考慮到目前的條件，你們可能更多是價格製定者，但我還想談談代理數量的增加。我想我認為在新聞稿中您可能已經概述了其中的一些內容，但也許您可以縮短我們的時間，與進入第四季度的代理商相比，第三季度增加的代理商數量有多少？

Now since we made and those press releases were all Q4.

自從我們發布這些新聞稿以來，這些新聞稿都是第四季度的。

All Q4. Okay. So that's coming. Okay, great. And then, Josh, you hit on this a couple of different ways, but as far as the trigger point, what is it what exactly would you point to is that mostly a macro-driven, you know, just prolong pressures where people are seeking ways to help grow their business and maybe find ways to reduce costs, you know, get better technology or is it maybe a little bit also of kind of growing fears around the legal landscape and potential in March skilled industry changes?

所有第四季。好的。所以這就來了。好的，太好了。然後，喬什，你用了幾種不同的方式來解決這個問題，但就觸發點而言，你到底要指出的是，主要是宏觀驅動的，你知道，只是延長人們尋求的壓力幫助他們發展業務的方法，也許找到降低成本的方法，你知道，獲得更好的技術，或者可能是對法律環境和三月份技術行業變化的潛力日益增長的擔憂？

Are you referring specifically to the walk over say like the chicken, right, why they would move over, right? It really comes down to it knows there's a lot of these broker owners. If we're going to be real love your broker owners that are and the broker owner themselves have to be producing agent as well. So they may close 2030 homes a year on their own and they've got 20 or 30 agents that are on their in their company, leads close five, 10, 15 homes per year each site.

你特意指的是像雞一樣走過來的人，對吧，為什麼他們會走過去，對吧？這實際上取決於它知道有很多這樣的經紀人所有者。如果我們要真正愛你的經紀人所有者，那麼經紀人所有者本身也必須是生產經紀人。因此，他們每年可能會自行關閉 2030 個房屋，並且他們的公司有 20 或 30 個代理，負責每個站點每年關閉 5、10、15 個房屋。

And so unfortunately, the agents that they have in their team don't close enough business for them to pay their bills. So that means they have to continue to also produce. And if their business down 20% and our agent business down 20%. A lot of them find themselves in a position where they were making some pretty decent money and now they're actually losing money because of having to pay for an office space to have to pay for technology for other agents.

不幸的是，他們團隊中的代理商沒有完成足夠的業務來支付帳單。所以這意味著他們必須繼續生產。如果他們的業務下降 ​​20%，我們的代理商業務下降 ​​20%。他們中的許多人發現自己原本賺了一些相當可觀的錢，但現在他們實際上正在賠錢，因為必須支付辦公空間的費用，而必須支付其他代理商的技術費用。

And they realize that cash. I've got 20 agents on my team, third agent, my team and I are actually losing money and having to provide them with leads and provide them with technology provides us with training rather than office space. And so if they can shutter, if they can shed all of those expenses and move over 1,000, and we can now compensate them to be the managing broker for those agents, especially in markets where we don't already have a presence like in Stockton, that group that came over starting. We've got a presence nearby, but we're not in Stockton.

他們意識到了現金。我的團隊中有 20 名特工，還有第三名特工，我和我的團隊實際上都在賠錢，必須為他們提供線索並為他們提供技術，這為我們提供了培訓而不是辦公空間。因此，如果他們能夠關閉，如果他們能夠擺脫所有這些費用並搬遷超過 1,000 人，我們現在可以補償他們成為這些經紀人的管理經紀人，特別是在我們尚未在斯托克頓等市場開展業務的市場，那一組過來開始。我們在附近設有辦事處，但不在斯托克頓。

So now we've got a great a great operation there so that it's really been coming down to the money they take, they just can't make it on their own. And the option is in the most case to shut down or join forces and join forces just makes more sense versus giving up something they worked so many years to build.

所以現在我們在那裡有一個很棒的運作，所以這實際上取決於他們拿的錢，他們只是無法自己賺錢。在大多數情況下，選擇是關閉或聯合起來，聯合起來比放棄他們多年來努力建立的東西更有意義。

Makes sense. I feel like you've preached this message for the last couple of years. And unfortunately, it takes a fallout in the macro to see some of those come out. But I think a lot of it's playing out as you kind of called out on the gross margin. Maybe this is for Marco, but you've got a lot of moving parts there below the surface, you get the fee increases and whatnot. I was hoping you could help us and kind of piece out why it sequentially declined as much as it did. And then I know again, a lot can change as you look out the next year, but maybe if you could give some kind of indication just broadly of what you're expecting out of gross margins for next year.

說得通。我覺得你在過去幾年一直在宣揚這個訊息。不幸的是，只有在宏觀層面產生影響才能看到其中一些結果的出現。但我認為，當你呼籲毛利率時，很多事情都會發生。也許這是為了馬可，但你在表面之下有很多移動部件，你會得到費用增加等等。我希望你能幫助我們，並找出為什麼它會連續下降這麼多。然後我又知道，當你展望明年時，很多事情都可能發生變化，但也許你可以大致說明你對明年毛利率的預期。

Sure. On gross margin for us is a little bit more complex than other companies because of all the ancillary businesses. And because if you recall, when agents reach a certain volume, they cap and then transactions go down to $150 from five 50. So typically, Q3 and Q4, you're going to see a little bit of reduction in gross profit per fab right now. We've said that before there over time, because agents are joining us throughout the year that work itself out, right?

當然。由於有所有輔助業務，我們的毛利率比其他公司稍微複雜一些。因為如果您還記得的話，當代理商達到一定數量時，他們會設定上限，然後交易量會從5 50 美元降至150 美元。因此，通常情況下，在第三季度和第四季度，您會看到每個晶圓廠的毛利略有下降，對吧現在。我們之前已經說過，隨著時間的推移，因為代理商全年都會加入我們，這會自然而然地解決，對吧？

So we will either we think the gross spot gross pipe at the market, but it goes back to normal rising and we can see going back to maybe 5 million transactions a year across the country and seven continues to grow. We should see gross profit margin in the 13, 14%. That's kind of our goal to get to that number. If you look at gross margins now we're looking around 10.5 11%, but we would like to get to 1314% gross margins. Now that will help once we also get at our mortgage company and title company to adjusted EBITDA positive.

因此，我們要么認為市場上的現貨總管道總量，但它會恢復正常增長，我們可以看到全國每年的交易量可能回升至 500 萬筆，其中 7 筆交易還在繼續增長。我們應該會看到毛利率在13%、14%左右。這就是我們達到這個數字的目標。如果你看一下現在的毛利率，我們的目標是 10.5% 到 11% 左右，但我們希望達到 1314% 的毛利率。現在，一旦我們的抵押貸款公司和產權公司調整後的 EBITDA 為正值，這將會有所幫助。

Right, because what happens is once that gets adjusted EBITDA positive, as we mentioned earlier, we're going to get we're going to be able to drive $0.7 on the dollar down to the bottom line, right? And so our gross profit continues to increase. So we think longer term, couple of years, we can get to the 14 of between 14, 15, something like that and we'll be really careful about that. We might be able to get higher than that for that candidate when we budget and we forecast that's the number we're looking for 14%, 15%.

是的，因為一旦調整後的 EBITDA 為正值，正如我們之前提到的，我們將能夠將美元匯率推低 0.7 美元至底線，對吧？因此我們的毛利不斷增加。所以我們認為從長遠來看，幾年後，我們可以達到 14 到 15 之間的 14 個，類似的事情，我們會非常小心。當我們預算時，我們可能會得到比該候選人更高的數字，我們預測這就是我們正在尋找的數字 14%、15%。

Okay, very helpful. Thank you.

好的，非常有幫助。謝謝。

(Operator Instructions) Darren Aftahi, Roth MKM.

（操作員說明）Darren Aftahi，Roth MKM。

Hey, this is Dylan for Darren. Thanks for taking my questions. And Oren, to sort of start with the with the commentary on about guidance and not not giving guidance. So So just sort of walk us through how you get to your other outlook of cash from operations being positive as early as 2Q of next year and turn to adjusted EBITDA in 1Q when sort of seasonally Q1 transactions are typically lower than they are in 4Q, just sort of where the puts and takes. You talked about a $1.2 million in cost savings?

嘿，這是達倫的迪倫。感謝您回答我的問題。奧倫，首先是關於指導而不是不給予指導的評論。所以，請向我們介紹如何從明年第二季度開始獲得積極的營運現金預期，並在第一季度的季節性交易通常低於第四季度時轉向調整後的 EBITDA，只是放置和取出的地方。您談到節省 120 萬美元的成本？

Yes, okay. So let's start Q1, if you recall key. While our adjusted EBITDA for Q1 of 2023 is approximately a negative $1.4 million. And so that's number one. And second, we are implementing cost cuttings of $1.2 million per quarter. And so when you look at the negative $1.4 million combined with the cost cutting of $1.2 million, combined to keep in mind that Q1 of this year already had seen a reduction in transactions right now that we added agents throughout 2023, we should see a increase in revenue in 2024.

是的，好的。如果你還記得關鍵的話，讓我們開始 Q1。而我們 2023 年第一季調整後的 EBITDA 約為負 140 萬美元。所以這是第一。其次，我們每季削減 120 萬美元的成本。因此，當你看到負140 萬美元加上120 萬美元的成本削減時，請記住，由於我們在2023 年增加了代理，今年第一季的交易量已經減少，我們應該會看到交易量的增加2024 年的收入。

So the combination of adjusted EBITDA and negative $1.4 million for Q1 of this year, combined with the reduction in expenses were $1.2 million, combined with the improvement in our mortgage business and our outlook of each insurance business and title business and the increase in agents that gives us confidence that we will hit adjusted EBITDA positive in Q1 of 2023.

因此，今年第一季調整後的 EBITDA 和負 140 萬美元，再加上費用減少 120 萬美元，再加上我們抵押貸款業務的改善、每項保險業務和產權業務的前景以及代理人的增加，讓我們有信心在2023 年第一季實現調整後EBITDA 為正值。

And then if you continue that progress out of Q2 and then you looked at in Q2 of 2023, our adjusted EBITDA was $462,000, right, and then you implement a $1.2 million. Then that gives us the certainty and to hit operational cash flow breakeven.

然後，如果您在第二季度繼續取得這一進展，然後您查看 2023 年第二季度，我們調整後的 EBITDA 為 462,000 美元，對吧，然後您實施 120 萬美元。那麼這給了我們確定性並實現營運現金流損益平衡。

Now, having said all that, this is how we view today. The market is still somewhat uncertain. We have seen some progress in the last week or so in interest rates. And they said, you know, the if you look at futures, the bond market and futures, I think you're projecting out cuts in April, May of next year. Our mortgage business that we said are beginning to see par rates, which is a big indication of that compared to the increase in our mortgage business. And we put all this together efficient our business, what we've done in Q1 cuts, when you put it altogether, we feel fairly confident that we can achieve the goals of adjusted EBITDA breakeven in Q1 and cash flow breakeven, operational cash flow breakeven.

說了這麼多，這就是我們今天的看法。市場仍存在一定的不確定性。過去一周左右，我們看到利率方面取得了一些進展。他們說，你知道，如果你看看期貨、債券市場和期貨，我認為你會預測明年四月、五月的削減。我們所說的抵押貸款業務開始看到平價利率，與我們抵押貸款業務的成長相比，這是一個重要的跡象。我們將所有這些放在一起，以提高我們的業務效率，我們在第一季的削減中所做的事情，當你把它們放在一起時，我們非常有信心我們能夠實現第一季度調整後的EBITDA 損益平衡與現金流損益平衡、營運現金流損益平衡的目標。

Thank you. And that is the second question. Obviously, the transaction numbers down sequentially, but could you provide any color on sort of the attach rates or take rates everyone behind them on until your ancillary services, are you at lease being able to see more interest throughout some consumers being talked into using some of your services from agents. Were those where those are live?

謝謝。這是第二個問題。顯然，交易數量連續下降，但是您能否提供有關附加費率的任何顏色，或者在您的輔助服務之前提供每個人背後的費率，您是否至少能夠看到一些消費者被說服使用某些服務產生更多興趣代理人為您提供的服務。那些地方是現場的嗎？

But there's no question that especially the end of September, we had a bump in interest rates that went all the way to over 8% or a variety of buyers got stuck in and had to terminate transactions resolved. You know, they start again in in October on the mortgage business is it's tough on the attach rate right now because buyers are shopping every possible one, eight of a point. So there's no question that attach rate in the mortgage business has become more difficult as we've seen the increase in the interest rate.

但毫無疑問，尤其是 9 月底，我們的利率一路飆升至 8% 以上，或者許多買家陷入困境，不得不終止交易。你知道，他們在十月再次開始抵押貸款業務，現在的附加利率很困難，因為買家正在購買每一個可能的點，八點。因此，毫無疑問，隨著利率的上升，抵押貸款業務的額外利率變得更加困難。

So one eight of a point, actually, you know, Ken can be the deciding factor, whether someone can close a house or not. We continue to see, as you know, decent attach rates for various and certainly for DA. If you look at VA or mortgage business, they've been able to increase profits adjusted EBITDA by 50% while keeping their revenues the same. So it's operationally and what happens is because we're getting more business from them.

所以八分之一，實際上，你知道，肯可以成為決定因素，決定一個人能否關閉一棟房子。如您所知，我們繼續看到各個領域，尤其是 DA 的附加費率都不錯。如果你看看 VA 或抵押貸款業務，他們已經能夠將調整後的 EBITDA 利潤提高 50%，同時保持收入不變。所以這是在營運上，發生的事情是因為我們從他們那裡獲得了更多的業務。

We don't have to spend additional dollars in regeneration, right? And so the attach rate in our insurance business has really have benefited from that. So I would say a very good attach rate on insurance, a good attach rate on on DIA. I'm sorry on theirs, but mortgage is tough. It's very tough right now on the attach rate because everyone is shopping around one eight of a point, and it's just the reality of 8% mortgages once interest rates can decline to the sixes. I think that will that will help us in terms of attach rates.

我們不必花額外的錢來重建，對吧？因此，我們保險業務的附加費率確實從中受益。所以我想說保險的附加費率非常好，DIA 的附加費率也很好。我對他們感到抱歉，但抵押貸款很困難。現在附加利率非常困難，因為每個人都在八分之一左右購物，一旦利率下降到六分之一，這就是 8% 抵押貸款的現實。我認為這將有助於我們提高附加費率。

Thank you. That's it for me. I'll pass it on.

謝謝。對我來說就是這樣。我會把它傳遞下去。

Thanks, Dylan.

謝謝，迪倫。

(Operator Instructions) Raj Sharma, B. Riley.

（操作員說明）Raj Sharma、B. Riley。

Hi. Thank you for taking my questions. How are you guys doing?

你好。感謝您回答我的問題。你們最近還好嗎？

good, Raj. How are you?

很好，拉傑。你好嗎？

Hope you're doing well as well.

希望你也過得很好。

Yes, thank you. I am -- I had a couple of questions which have already been answered. And then on the referral rates, can you talk about your referral programs and how well they're doing and how you kind of measuring them? And what percentage of the 17% agent growth can be attributed to referrals? And also, can you comment on churn that will limit.

是的，謝謝。我——我有幾個問題已經得到解答。關於推薦率，您能談談您的推薦計劃以及它們的效果如何以及您如何衡量它們嗎？ 17% 的代理商成長中有多少比例可以歸因於推薦？另外，您能否評論一下會限制的流失情況。

I will touch on the kind of the program itself. Electrolux, Marco, I'm not sure how much we were. We had something we haven't shared publicly as far as what the actual what percentage was rather what the numbers are, other referrals, but I'm not sure Marcos is willing to go into that detail as we have that detail in front of them. But the program, as you know, is designed to encourage our agents to refer more agents the company, right, we got the first three agents that they refer to like a terrific year in stock grants. And then from there, once they get to that forced agent as long as all four agents when I came to the Company close at least at least two transactions, they become capitalized. So their transaction fees go down from $550 per transaction down to $100 per transaction. How they start to pay their annual fee when they've got any other fees that may come up as well, the commercial and the rest. But once they get to a transaction or eight referrals, again, each one closing at least two transactions before they joined and in a year, then they go to free for life. Now that's that's no fees whatsoever. The idea was we want to encourage more agents to trying to. We have a big group of agents that were already following at least one agent per year, we thought, okay, if we roll a program like this, how many will actually achieve the capital life in the free for life compared to how many will Alista trial, how many will go from one to two from one to three that may never have referred more than one or how many people will would have never referred even before and now at least trying to get to capitalize them and we'll add one to buy. So the idea is that for every one person that actually achieves capitalize, we may have 100 more people who actually and we'll refer to someone who would have never referred someone before and may never action end up achieving capitalize. I want them to encourage them to accept. Again, it's a win for them and a win for us. But unfortunately, the nature as they get excited about the program, some will refer one two and then give up and others will push through and end up getting to capture like we've got quite a few agents have achieved capitalize a few Hoover's who've achieved free for life, but not that many. But if you look at the number of referrals that have happened. It's gone up dramatically. I don't know the exact number is I don't have a top my head. I know market share has been not too long ago that I'm not sure if Mark or has to share. So I'll turn that over to Marcus to speak to it.

我將談談程序本身的類型。伊萊克斯、馬可，我不知道我們花了多少錢。我們有一些尚未公開分享的內容，例如實際百分比是什麼，而不是數字，其他推薦，但我不確定馬可斯是否願意詳細說明，因為我們已經在他們面前提供了這些細節。但正如您所知，該計劃旨在鼓勵我們的代理商向公司推薦更多代理商，對吧，我們得到了他們所說的前三名代理商，就像股票授予的出色一年一樣。然後從那裡開始，一旦他們到達那個強制代理人，只要當我來到公司時所有四個代理人完成至少兩筆交易，他們就會被資本化。因此，他們的交易費用從每筆交易 550 美元降至每筆交易 100 美元。當他們還有可能出現的任何其他費用（廣告費和其他費用）時，他們如何開始支付年費。但是，一旦他們完成一筆交易或八次推薦，每人在加入之前和一年內完成至少兩筆交易，然後他們就可以終身免費。現在就是不收取任何費用。我們的想法是希望鼓勵更多的代理商嘗試這樣做。我們有一大群代理人，他們每年至少關註一名代理人，我們想，好吧，如果我們推出這樣的計劃，有多少人會真正實現終身免費的資本生活，而有多少人會成為阿利斯塔審判，有多少人會從一到二，從一到三，可能永遠不會提到超過一個，或者有多少人以前從未提到過，現在至少試圖將它們資本化，我們將添加一個買。因此，我們的想法是，對於每一個真正實現資本化的人，我們可能會有另外100 個人實際上並且我們會指那些以前從未推薦過某人的人，並且可能永遠不會採取行動最終實現資本化。我希望他們鼓勵他們接受。再說一次，這對他們來說是一場勝利，對我們來說也是一場勝利。但不幸的是，當他們對這個計劃感到興奮時，有些人會推荐一兩個然後放棄，而另一些人會堅持到底並最終獲得捕獲，就像我們有相當多的特工已經實現了利用一些胡佛的人一樣。我已經實現了終身免費，但數量並不多。但如果你看看已經發生的推薦數量。已經大幅上漲了。我不知道確切的數字，因為我沒有頭腦。我知道市場佔有率不久前就已出現，我不確定馬克是否也有分享。所以我會把這個問題交給馬庫斯來討論。

Yes, prior to implementing the program, we were getting between 30% and 33% referral rate and after implementing the program or over 40% referral rate. So we have seen a significant increase in recruiting due to the due to implemented a program on the left here?

是的，在實施該計劃之前，我們的推薦率在 30% 到 33% 之間，而在實施該計劃之後，我們的推薦率超過了 40%。那麼，由於實施了左側的計劃，我們看到招募人數顯著增加嗎？

Yes, yes, yes, an increase about 25% to 35% higher than what we were seeing before. So it's been effective. I'd love to see it be more effective. But I think we're very pleased with the effective, Chad. So far, it's definitely well worth the squeeze, as I say.

是的，是的，是的，比我們之前看到的增長了約 25% 到 35%。所以這是有效的。我很樂意看到它更加有效。但我認為我們對效果非常滿意，查德。到目前為止，正如我所說，這絕對是值得的。

Great. And then the and then the churn number, is that sequentially lower or higher same just realize we didn't actually start that in this scripted with.

偉大的。然後是流失數，是依次降低或更高，只是意識到我們實際上並沒有在這個腳本中開始它。

Yes, that chart turnaround at trend lower for the quarter was 1.9%, so a little higher, but the significant increase came from agents that is zero and one transactions. We saw an increase of 73% of agents that in Q3 of this year compared to Q2 of this year stages that closer to one prior in our prior one leaving. So the increase in churn from typically 1.31 0.4. So about 1.9, 74% of that really came in that increase into zero to one. And if we go to zero to three transactions, it's probably close to 85% increase. So the message is yes, we lost a few more agents for the agents that we lost or typically lower producing agents, which was gone away it's right in line with what was happening industry or industry year over year.

是的，該季度趨勢較低的圖表週轉率為 1.9%，因此略高一些，但顯著的增長來自於零筆交易和一筆交易的代理商。我們發現，與今年第二季相比，今年第三季的代理商數量增加了 73%，接近我們之前離開的代理商數量。因此，流失率通常從 1.31 增加到 0.4。所以大約 1.9，其中 74% 確實是從 0 到 1 增加的。如果我們將交易量減少到 0 到 3 筆，增幅可能接近 85%。因此，資訊是肯定的，我們失去了更多的代理商，或者通常減少了生產代理商，這些代理商的消失與行業或行業逐年發生的情況一致。

So 1.6% decrease in agent population from end of September to September 2023 and so you can imagine that obviously, we're not immune to that. So we thought we probably saw that same 1.6% decrease while at the same time we've been grew by 13%. That number could have been much higher if we didn't have that pressure and right on then, thank you.

因此，從 9 月底到 2023 年 9 月，代理人數減少了 1.6%，因此您可以想像，顯然我們也無法倖免。因此，我們認為我們可能會看到同樣的 1.6% 下降，而同時我們卻成長了 13%。如果我們沒有那麼大的壓力的話，這個數字可能會更高，謝謝。

And then and then I know that you're not you're not giving guidance and it's a term volatile period to give guidance. I know it's tough to tell, but is there any sort of some sense? And I know you also close these workovers, which you said happened in Q4, but any sense on what we should assume as ongoing agent growth in this environment? Is it is it is it okay to assume and think that it would be mid 10s for the next foreseeable few quarters?

然後我就知道你不是沒有提供指導，這是一個提供指導的術語不穩定時期。我知道這很難說，但有什麼意義嗎？我知道您也結束了這些修井工作，您說這是在第四季度發生的，但在這種環境下我們應該假設持續的代理成長有什麼意義嗎？是否可以假設並認為在接下來的可預見的幾個季度中這一數字將達到 10 多歲？

I think it's safe and we continue to I mean, we look at last quarter a 14% this quarter, 13%. I think it's safe to assume that we're going to we can continue to maintain at least that obviously our goal is to push beyond that. I mean, I'm I've been working harder and harder with the team to see if I can help move those numbers higher through these walk overs. But them, we feel very confident we can at least maintain what we've been sharing. But our goal of ultimately the goal is to increase that dramatically because we're not satisfied with 13% growth findings and a lot of brands would be very happy with it.

我認為這是安全的，我們繼續我的意思是，我們看到上季度為 14%，本季為 13%。我認為可以肯定的是，我們將繼續至少保持這一目標，顯然我們的目標是超越這一目標。我的意思是，我一直在與團隊一起更加努力地工作，看看我是否可以透過這些步行來幫助提高這些數字。但我們非常有信心至少可以維持我們一直在分享的東西。但我們的最終目標是大幅增加這個數字，因為我們對 13% 的成長結果並不滿意，許多品牌都會對此感到非常滿意。

But we're not yet we tried to be as transparent as possible, and that's why we shared the number that all boarding stars have increased by 25%. And so that hopefully also give you some indication. That doesn't mean they joined the ad. I mean, they're starting the onboarding process. But where you know, and I think we're trying to share, even though we're not giving guidance, we're trying to share as much as we can in order to help you continue to model the business and that's why we shared that 25% increase in onboard and start. And this is for the month of October or that's Q that's Q3 compared to Q2.

但我們還沒有嘗試盡可能透明，這就是為什麼我們分享了所有寄宿明星都增加了 25% 的數字。希望這也能給您一些指示。這並不意味著他們加入了廣告。我的意思是，他們正在開始入職流程。但你知道，我認為我們正在努力分享，即使我們沒有提供指導，我們也在嘗試盡可能多地分享，以幫助你繼續建立業務模型，這就是我們分享的原因25% 的增加在船上和啟動。這是 10 月的數據，或者說是第三季與第二季相比的第三季。

Got it sequentially and come. Yes, that's and that's the Asian growth in transactions, the number of transactions done or is that purely a function of the market? Or are you trying to solve for that in the in the workovers you accept in the in the agents you acquire or and as your referral rate go up, is it safe to assume that you also need some more productive or you have a bigger share of spend, the transactions will go up. Any sort of help in that would be good.

依次得到它並來。是的，這就是亞洲交易量的成長，完成的交易數量，還是純粹是市場的函數？或者您是否試圖在您獲得的代理商中接受的修整中解決這個問題，或者隨著您的推薦率上升，是否可以安全地假設您還需要一些更有效率的工作，或者您擁有更大的份額消費了，交易量就會上升。任何形式的幫助都會很好。

So typically, Q4, as you know, Q4 is a lower quarter, right? And so you have the you have the seasonality of the industry, which is there's a reduction in Q4 and roughly it's 20% or so few for a Q3 to Q4. Having said that, one of the things that makes this year kind of interesting is that we are throughout the throughout the year, seasonality did not play as much factor this year because of interest rates. So I think what you can look at the typical seasonality of the industry, you can discount some of that as well. And for us, we are adding more agents. If you look at the net number of agents quarter over quarter for this whole year, the number keeps increasing, right.

所以通常情況下，第四季度，如您所知，第四季度是較低的季度，對吧？因此，你可以看到該行業的季節性，第四季度有所減少，第三季到第四季大約減少了 20% 左右。話雖如此，今年有趣的事情之一是，我們全年都處於這種狀態，由於利率的原因，今年季節性因素並沒有發揮那麼大的作用。所以我認為你可以看看這個行業的典型季節性，你也可以對其中的一些進行折扣。對於我們來說，我們正在增加更多的代理商。如果你看一下全年每季的代理淨數量，你會發現這個數字一直在增加，對吧。

And so we'll see greater transactions coming in from these other agents with joining us, right? So but there definitely will be a reduction in transactions from Q4 from Q3 to Q4. But we hope that it will be in par or perhaps even flat to last year. And that's kind of the indication that we have right now. But I think it's very important to know that this market is very fluid right now. Anything can happen in this market. And there are a lot of other factors that are happening in the world right now that can affect the market as well, right? And so that's why it's very difficult to give guidance because it's not so much that we're running the business. We have visibility into our business.

因此，我們會看到加入我們的其他代理商帶來更多交易，對吧？因此，從第三季度到第四季度，第四季度的交易量肯定會減少。但我們希望與去年持平，甚至持平。這就是我們現在所掌握的跡象。但我認為了解這個市場目前的流動性非常重要，這一點非常重要。在這個市場上任何事情都可能發生。現在世界上正在發生的許多其他因素也會影響市場，對吧？這就是為什麼很難提供指導，因為我們經營的業務並不是那麼重要。我們對我們的業務有清晰的了解。

There's so many other factors going on besides even interest rate rise, what's happening in the world overall that that we just sell more prudent, not to give guidance.

除了利率上升之外，還有很多其他因素正在發生，全球正在發生什麼，我們只是更謹慎地出售，而不是提供指導。

Right. Fair enough. Thank you again for answering my questions. I will take this offline. Thank you.

正確的。很公平。再次感謝您回答我的問題。我會將其離線。謝謝。

Thank you.

謝謝。

(Operator Instructions) There are no further questions at this time. This concludes our question and answer session. I would like to turn the conference back over to Josh Harley for closing remarks.

（操作員說明） 目前沒有其他問題。我們的問答環節到此結束。我想將會議轉回由喬許·哈雷（Josh Harley）發表閉幕詞。

Thank you for joining our call today and for your interest in Fathom Holding. For those of you who are sadly shareholders, thank you for your trust. We'll continue to work hard and look forward to sharing future updates with you. So with that, have a wonderful week.

感謝您今天加入我們的電話會議以及對 Fathom Holding 的興趣。對於那些不幸成為股東的人，感謝你們的信任。我們將繼續努力，並期待與您分享未來的更新。就這樣，祝你有個愉快的一周。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。