Re/Max reported revenue of $54.3 million in the second quarter of 2018, a year-over-year increase of 11.4 percent and a slight uptick from last quarter revenue.
Revenue increased 6 percent from acquisitions, 4.9 percent from organic growth, and 0.5 percent from foreign-currency movements, according to a release. That organic growth was primarily driven by agent by increased revenue from agent count increases, rising home prices, and Motto expansion.
“We are seeing solid performance in our business, driven by multiple organic growth sources, recent acquisitions and robust home sales,” said Adam Contos, Re/Max Holdings CEO. “In the second quarter, we grew our worldwide network by almost 7,000 agents year-over-year, we accelerated Motto office openings and we made great progress integrating booj, our recent technology acquisition.”
Net income attributable to Re/Max Holdings was $7.6 million for the second quarter, an increase of $0.2 million or 2.5 percent from the second quarter of 2017. Selling, operating and administrative expenses were at $28.3 million, up 37 percent from the second quarter of 2017.
“The increase in SOA is primarily due to the acquisition of booj, investments in technology Motto and Northern Illinois [expansion], as well as other increases in personnel cost,” said Karri Callahan, Re/Max’s chief financial officer, during a call with investors.
Contos told investors that Re/Max – leveraging the existing platform of booj, the real estate technology company it acquired – is building a single digital suite of various products and services for Re/Max agents around the country. The platform will include a customer relationship management tool integrated with agent office and team websites, lead generation, marketing resources and social integration.
“Development work – fueled by input from Re/Max affiliates – is already underway on what will become a full ecosystem of products on a single platform,” Contos told investors. “Everything is being designed to help Re/Max brokerages, agents and teams grow their businesses, connect with clients and operate more efficiently and strategically.”
The total agent count of the real estate franchisor increased 5.9 percent year-over-year to 123,082 – 85,861 of which are located in the United States and Canada. To date, more than 90 Motto Mortgage franchises have been sold and more than 60 have opened.
In the first quarter of 2018, Re/Max posed a revenue of $52.6 million and a net income of $50 million. Its total agent count was at 120,821, with 84,829 agents in the U.S. and Canada.