Q1 2025 Fathom Holdings Inc Earnings Call
We will open the floor for your questions and comments after the presentation.
Speaker Change: It is now my pleasure to turn the floor over to your host Paul Koonce, Sir the floor is yours.
Speaker Change: Thank you and good afternoon, welcome to Fathom Holdings first quarter 2025 conference call. Joining us today is the company's CEO, Marco <unk> and VP of finance, Daniel Weinmann before I turn the call over to management I want to remind listeners that today's call may include forward looking statements within the meaning of the private Securities Litigation Reform Act of 1000.
Marco Fregenal: Sure. Yeah. Hey, Darren. Thank you for your questions. So, because we're charging 20%, and because of the efficiencies of IntelliAgent, we are going to see a higher gross profit margin per transaction. I think we can see gross profit margins grow by 3 to 4x compared to our traditional gross profit margin. And that's really because of the efficiency of our platform and what we can deliver.
Speaker Change: 95, such forward looking statements are subject to numerous conditions, many of which are beyond the company's control, including those outlined in the risk factors section of the company's Form 10-K, and other company filings made with the SEC copies of which are available on the Sec's website at www Dot SEC Dot Gov.
Speaker Change: As a result of those forward looking statements actual results could differ materially fathom undertakes no obligation to update any forward looking statements. After today's call except as required by law. Please note that during the call. We will discuss adjusted EBITDA, a non-GAAP financial measure as defined by SEC regulation G. Reconciliations of this non-GAAP financial measure to the most directly comparable GAAP.
Marco Fregenal: Second, we launched this internally about four weeks ago, and it really was a soft launch. And pretty quickly, there were about 120 agents that signed up. We are already onboarding them into the program, and starting, I think, next week, we'll start marketing externally, even though we already have some external agents joining the program. And we think we'll continue to ramp up with the ultimate goal of the end of the year onboarding about 100 agents. We want to be careful about the growth. It is a complex program, and so we want to make sure that we are firing all cylinders.
Speaker Change: Measures included in today's press release, which is now posted on <unk> website.
Mark: That I will now turn the call over to Fathom CEO Mark <unk>. Please proceed.
Speaker Change: Thank you Paul.
Speaker Change: Good afternoon, everyone and thank you for joining us on today's call I am pleased to welcome you to Fathom Holdings first quarter 2025 earnings conference.
Speaker Change: Before diving into the numbers I want to begin by recognizing the continued dedication and perseverance of our entire fathom team our agents employees and leadership.
Marco Fregenal: But we think that by the end of the year, we can be at about 100 new agents a month, and then, of course, into next year, growing that even further. And so, given the financial results of the program thus far, we feel incredibly positive about the impact it's going to have in gross profit and adjusted EBITDA.
Speaker Change: Our first quarter bra ongoing economic headwinds from elevated mortgage rates, the shifting global economic uncertainty all impacting buyer behavior.
Speaker Change: Through it all our team remains focused in our strategy remains clear. The results were sharing today are a direct reflection of that discipline and execution.
Darren Aftahi: That's helpful.
Marco Fregenal: There's one more if I may, outside of my home group, have you guys held discussions with similar sized agent teams to join Fathom? And has any of that accelerated post the launch of Elevate? And you talked about some teams and partners in the pipeline. Yeah, actually, once we launched Elevate, we absolutely had a lot more conversations with different brokerages, not only brokerages, but technology partners, brokerages, and we're having, you know, a great deal of a number of conversations in terms of about Elevate. So I do think going forward, we're going to see, you know, potentially, you know, you know, more walkovers.
Speaker Change: We enter 2020, which matched our optimism and I'm proud to say, we exceeded public expectations revenue growth was strong transaction volume increase agent count continues to rise and we'd be analyst estimates by a meaningful margin.
Speaker Change: We also continue our cost cutting initiatives, reducing expenses by approximately 750000 per quarter going forward.
Speaker Change: Efforts are helping us build what we believe will be a more efficient and scalable business.
Speaker Change: We now expect to achieve adjusted EBITDA profitability in the second quarter, a significant milestone and a testament to the progress we've made over the past year.
Now, let's take a little care or earnings for Q1.
Speaker Change: Total revenue rose $32 1 million.
Marco Fregenal: And then I think that within the next six months, you'll see some announcements in terms of potential partnerships of companies that want to not only partner with Elevate, but license Elevate. And so that has been a significant interest from a lot of different companies on what Elevate is. And, you know, we're looking forward to continue to expand the program, not only into other companies, but into other types of agents. For example, Teams is one in which that we are going to create an Elevate for Teams, for example. So I think there's a lot of opportunity around Elevate.
Speaker Change: 32, 1% to $93 1 million compared to $70 5 million the same period last year.
Speaker Change: The performance exceeded analyst expectations by roughly 12% demonstrating our ability to grow despite broader economic and industry uncertainty.
Speaker Change: Brokerage revenue declined nearly 36% to $88 9 million up from $65 $40 million last year, we entered the quarter with approximately 14715 licensed agents a 22, 8% increase over Q1 of 2024 transactions increased by 26.
Speaker Change: <unk>, which approximately 9715 closing this quarter.
Speaker Change: Gross profit improved to $8 1 million up 13% year over year.
Marco Fregenal: And I think we are in this very early stages. And I think they're going to have some significant results in the next 12 to 18 months.
Speaker Change: Excluding dagley insurance, which we divested in 2024 hour gross profit growth was 34% from $6 million in Q1 of 2024, highlighting the strength of our core brokers engine.
Darren Aftahi: Great, thank you. Best of luck. Okay, thank you. Thank you.
Operator: Once again, everyone, if you have any questions or comments, please press star then one on your phone. Please hold while we pull for questions. Thank you. There are no further questions in the queue.
Speaker Change: Now, let me shift to elevate our most significant strategic initiative to date.
Speaker Change: Elevate fire by a proper tire intelligent platform is a high margin growth program designed to enhance agent productivity.
Speaker Change: All our platform and drive long term profitability.
Operator: Okay, thank you everyone for joining us today. As always, I look forward to our next update. I hope everyone has a good evening. Thank you for joining. Thank you.
It is a concierge level octane offering that provides a comprehensive services, including robust marketing and lead generation lead conversion transaction coordination expert coaching recruiting support and much more.
Operator: Everyone, this concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.
Speaker Change: All of this is deliver by a dedicated team. So our agents can focus entirely on serving their clients.
Speaker Change: Agents, who enroll contribute 20% commission split along with the standard transaction fee.
Speaker Change: That's incredibly competitive when you consider that many agents already pay similar or higher split at traditional brokerages just to hang their license with limited support behind it.
Speaker Change: Our goal with elevate us to bridge the gap there. So many agents experience, while most want to reinvest in their own growth. Many simply don't have the time tools or the know how to do so.
Speaker Change: Elevate is designed to remove that friction by giving them the infrastructure marketing resources and business coaching they need to scale their businesses efficiently and affordably.
Speaker Change: Since our soft launch just four weeks ago, we have seen over 120 agents sign up for the program.
Speaker Change: Why will require then in Asia must have completed at least four transactions in the past 12 months to qualify for the program. The agents who have signed up so far have an average annual production of between nine to 10 closings per year.
Speaker Change: Participating agents are projected to generate a significant increase in gross profit per transaction and EBITDA per transaction.
Speaker Change: By the fourth quarter, we aim to be Onboarding around 100, new agents per month into the program.
Speaker Change: We're also developing targeted extensions of their programs such as elevate for teams and elevate for partners to meet growing demand.
Speaker Change: Additionally, we are in early stage conversations with external organizations interested in licensing elevate.
Speaker Change: Underscoring the industry wide potential of this program.
Speaker Change: By the fourth quarter, we aim to be Onboarding around 100, new agents for a month into the program.
Speaker Change: Well it makes all of this possible is Intel agent as the engine behind elevated.
Speaker Change: Streamlines operations minimizes overhead and enable us to deliver high touch high impact services at a price point that most of additional brokers simply cannot match.
Speaker Change: We're also developing targeting extensions of their programs such as elevated for teams and elevate for partners to meet growing demand.
Speaker Change: Additionally, we are in early stage conversations with external organizations interested in licensing elevate further underscoring the industry wide potential of this program.
Speaker Change: Combined with our overall loss cost low cost business model, we believe that gives us a significant competitive edge and create a sustainable and scalable path for growth both for fathom and for our agents.
Speaker Change: Well it makes all of this possible is Intel agent as the engine behind elevate it.
Speaker Change: Although the program and it's in infancy. We believe the elevated may also have some positive impact in our ancillary businesses as we build a much closer relationship with agents participating in the program.
Speaker Change: Green lines operations minimize as overhead and enable us to deliver high touch high impact services at a price point than most traditional brokers simply cannot match.
Speaker Change: Now, let's turn briefly to review market conditions.
Speaker Change: Combined with our overall loss cost low cost business model, we believe that gives us significant competitive edge and create a sustainable and scalable path for growth both for fathom and for our agents.
Speaker Change: While our mortgage rates remained remain elevated they have begun to show signs of stabilizing as the housing market shift from a seller's market toward a more balanced or buyer's market.
Speaker Change: Although the program and it's in infancy. We believe the elevated may also have some positive impact in our ancillary businesses as we build a much closer relationship with agents participating in the program.
Speaker Change: One indicator of this shift is the increasing housing inventory across key markets. For example in March inventories rose by 16% in California, 20% in Utah, 28% in Colorado and 18% in Georgia.
Speaker Change: Now, let's turn briefly to review market conditions.
Speaker Change: While our mortgage rates remain elevated they have begun to show signs of stabilizing.
Speaker Change: Inventories levels climb, we're seeing a rise in the number of listings on price reductions and extended days on the market.
Speaker Change: Housing market shift from a seller's market toward a more balanced or buyers' market.
This has led to home prices flattening or experiencing modest year over year declines for instance, average home prices have dropped year over year by two 4% in Florida, 4% in Colorado, 8% in Kansas and 5% in Illinois.
One indicator of this shift is the increasing housing inventory across key markets. For example in March inventories rose by 16% in California, 20% in Utah, 28% in Colorado and 18% in Georgia.
While there are still many uncertainties, we believe fathom is well positioned to benefit from or even a modest improvement in market activity driven by our lean cost structure and compelling value proposition to our agents.
Speaker Change: Inventories levels climb, we're seeing a rise in the number of listings on price reductions and extended days on the market.
Speaker Change: This has led to home prices flattening or experiencing modest year over year declines for instance, average home prices have dropped year over year by two 4% in Florida, 4%, Colorado, 8% in Kansas and 5% in Illinois.
Now, let's review our ancillary businesses.
Speaker Change: Mortgage revenue increased 13% to $22 6 million for the first quarter of 2025 up from $2 3 million in the first quarter of 2024, we have seen and expect that increasing five stars for the month of April which typically indicates that the early stage of a seasonal increase in the market.
Speaker Change: While there are still many uncertainties, we believe fathom is well positioned to benefit from or even a modest improvement in market activity driven by our own lean cost structure and compelling value proposition to our agents.
Speaker Change: <unk> revenue increased 43% to 1 million for the first quarter of 2025 up from 700000 for the first quarter of 2024 <unk> for the month of April thus far have increased by over 45% year over year.
Speaker Change: Now, let's review our ancillary businesses.
Speaker Change: <unk> revenue increased 13% to $2 6 million for the first quarter of 2025 up from $2 3 million in the first quarter of 2024, we have seen and expect that increasing five stars for the month of April which typically indicates that the early stage of a seasonal increase in the market.
Speaker Change: Together, we believe these businesses are enhancing our margins increase agent retention and contributing to a more diverse and durable revenue stream.
Speaker Change: With that let me turn the call to Daniel Wyman, our VP of finance to review our results in greater detail Daniel.
Speaker Change: Final revenue increased 43% to 1 million for the first quarter of 2025 up from 700000 for the first quarter of 2024.
Daniel Wyman: Thank you Marco I will discuss our consolidated financial results before reviewing our business segment results in more detail.
Speaker Change: <unk> for the month of April thus far have increased by over 45% year over year.
Daniel Wyman: First quarter total revenue was $93 1 million, a 32, 1% increase year over year compared to $70 5 million for last year's first quarter. The increase in revenue was primarily due to a 36% increase in brokerage revenue as well as an increase in revenue from our accelerated businesses.
Speaker Change: Together, we believe these businesses are enhancing our margins increase agent retention and contributing to a more diverse and durable revenue stream with them.
Speaker Change: Let me turn the call to Dan you Wyman, our VP of finance to review our results in greater detail Daniel.
Dan Wyman: Thank you Marco I will discuss our consolidated financial results before reviewing our business segment results in more detail.
Daniel Wyman: Excluding the impact of the company's divested insurance business total gross profit increased by 34% in the first quarter of 2025 compared to the same period in 2024.
Dan Wyman: First quarter total revenue was $93 1 million, a 32, 1% increase year over year compared to $70 5 million for last year's first quarter. The increase in revenue was primarily due to a 36% increase in brokerage revenue as well as an increase in revenue from our accelerated businesses.
Daniel Wyman: Profit margins remained consistent at eight 7% year over year on the same basis.
Daniel Wyman: Technology and development expenses were approximately $1 9 million for the first quarter of 2025, compared with $1 6 million for the first quarter of 2020 for the approximate 300000 increase was primarily due to our continued investment in our technology platforms, including the build out of our new <unk>.
Dan Wyman: Excluding the impact of the company's divested insurance business total gross profit increased by 34% in the first quarter of 2025 compared to the same period in 2024 gross profit margin remained consistent at eight 7% year over year on the same basis.
Daniel Wyman: <unk> two <unk> program at live by and our elevate program.
Daniel Wyman: General and administrative expenses totaled $8 6 million for the first quarter of 2025, compared with $9 million for the first quarter of 2024. The decrease was primarily due to our cost cutting initiatives.
Dan Wyman: Technology and development expenses were approximately $1 9 million for the first quarter of 2025, compared with $1 6 million for the first quarter of 2024.
Dan Wyman: Approximate $300 and the increase was primarily due to our continued investment in our technology platforms, including the build out of our new direct to agency program had live by and our elevate program.
Daniel Wyman: Marketing expenses totaled $1 4 million for the first quarter of 2025, compared with $1 2 million for the first quarter of 2024. The increase was primarily due to investments in our ancillary businesses.
Dan Wyman: General and administrative expenses totaled $8 6 million for the first quarter of 2025, compared with 9 million for the first quarter of 2024. The decrease was primarily due to our cost cutting initiatives.
Daniel Wyman: GAAP net loss for the first quarter of 2025 totaled $5 6 million or <unk> 24 per share compared with a loss of $5 9 million or <unk> 31 per share for the first quarter of 2020 for the decrease in net loss was primarily due to our cost saving efforts adjusted EBITDA loss.
Dan Wyman: Marketing expenses totaled $1 4 million for the first quarter of 2025, compared with $1 2 million for the first quarter of 2024. The increase was primarily due to investments in our ancillary businesses.
Daniel Wyman: Our non-GAAP measure for Q1, 2025 remained unchanged at $1 5 million compared to Q1 2024.
Dan Wyman: GAAP net loss for the first quarter of 2025 totaled $5 6 million or 24 cents per share compared with a loss of $5 9 million or 31 cents per share for the first quarter of 2020 for the decrease in net loss was primarily due to our cost saving efforts adjusted EBITDA loss.
Daniel Wyman: Now I will spend some time reviewing our business segment results in more detail, we start with our brokerage business. We've closed approximately $9 715 real estate transactions during the first quarter, an increase of 26, 1% compared to $7 703 transactions during the first quarter of <unk>.
Dan Wyman: Our non-GAAP measure for Q1, 2025 remained unchanged at $1 5 million compared to Q1 2024 now.
Daniel Wyman: 24, the increase in real estate transactions is primarily attributed to the addition of my own group.
Dan Wyman: Now I will spend some time reviewing our business segment results in more detail, we start with our brokerage business. We've closed approximately $9 715 real estate transactions during the first quarter, an increase of 26, 1% compared to $7 703 transactions during the first quarter of 2000.
Daniel Wyman: We ended the first quarter with approximately.
Daniel Wyman: <unk> $14 715 agent licenses and increase of 22, 8% compared to 11986 agents at the end of the first quarter of.
Daniel Wyman: 2020 for revenue.
Daniel Wyman: Revenue for the real estate Division was approximately $88 9 million in the first quarter compared to $65 4 million for the same period last year, which represents an increase of 36% primarily attributed to the addition of my home group.
Dan Wyman: 24, the increase in real estate transactions is primarily attributed to the addition of my own group.
Dan Wyman: We ended the first quarter with approximately.
Dan Wyman: 14715 agent licenses and increase of 22, 8% compared to 11986 agents at the end of the first quarter of two.
Daniel Wyman: <unk> profit margin for our real estate division improved to seven 1% from six 5% in the first quarter of 2025 compared to the first quarter of 2024. This increase in margin was largely due to an increase in transactions from non cap patients and the impact of our <unk> annual fee increase.
Dan Wyman: 2020 for revenue.
Dan Wyman: Revenue for the real estate Division was approximately $88 9 million in the first quarter compared to $65 4 million for the same period last year, which represents an increase of 36% primarily attributed to the addition of my home group gross profit margin for our real estate Division improved.
Daniel Wyman: Adjusted EBITDA gain in the real estate Division was approximately $1 6 million in Q1 of 2025, an increase of 800000 compared to adjusted EBITDA of $800 and in Q1 of 2020 for the improvement was primarily driven by increased revenue and the continued execution of cost cutting initiatives.
Dan Wyman: Seven 1% from six 5% in the first quarter of 2025 compared to the first quarter of 2024. This increase in margin was largely due to an increase in transactions from non cap agents and the impact of our agents annual fee increase.
Daniel Wyman: Moving onto our mortgage business, our mortgage business generated revenues of $2 6 million in Q1 2025 compared to $2 3 million in Q1 of 2024 mortgage adjusted EBITDA for Q1, 2025 was a loss of 400000 compared to an adjusted EBITDA loss of 500000 for the <unk>.
Dan Wyman: Adjusted EBITDA gain in the real estate Division was approximately $1 6 million in Q1 of 2025, an increase of 800000 compared to adjusted EBITDA of 800000 in Q1 of 2020 for the improvement was primarily driven by increased revenue and the continued execution of cost cutting initiatives.
Daniel Wyman: Period last year adjusted EBITDA loss improved by 100000 due to continued strategic cost cutting measures.
Dan Wyman: Moving onto our mortgage business, our mortgage business generated revenues of $2 6 million in Q1 2025 compared to $2 3 million in Q1 of 2024 mortgage adjusted EBITDA for Q1, 2025 was a loss of 400000 compared to an adjusted EBITDA loss of 500000 for the same period.
Daniel Wyman: Moving to our title business various titled had revenues of $1 million for the first quarter of 2025 compared to $700 for the first quarter of 2024, an increase of 43%. The increase in revenue was driven by organic growth and work overs.
Daniel Wyman: Titles adjusted EBITDA for the 2020 for first quarter was a loss of 400000 compared to an adjusted EBITDA loss of 200000 for Q1 2024.
Dan Wyman: Last year.
Dan Wyman: That EBITDA loss improved by 100000 due to continued strategic cost cutting measures.
Moving to our title business various titled had revenues of 1 million for the first quarter of 2025 compared to $700 for the first quarter of 2024, an increase of 43%. The increase in revenue was driven by organic growth and work overs.
Daniel Wyman: Moving to our technology segment third party revenues decreased to 600000 in Q1 2025 compared to 800000 in Q1 2024, adjusted EBITDA income for the first quarter of 2025 or 50000 compared to an adjusted EBITDA loss of $30 for the first quarter of 2002.
Dan Wyman: Those titles adjusted EBITDA for the 2020 for first quarter was a loss of 400000 compared to an adjusted EBITDA loss of 200000 for Q1 2024.
24 adjust.
Daniel Wyman: Adjusted EBITDA income improved by 80000 due to continued strategic cost cutting measures.
Dan Wyman: Moving to our technology segment third party revenues decreased to 600000 in Q1 2025 compared to 800000 in Q1 2024, adjusted EBITDA income for the first quarter of 2025 was 50000 compared to an adjusted EBITDA loss of $30 and for the first quarter of 2000.
Mark: We continue to keenly focus on our balance sheet, given the dynamic real estate market conditions. We ended the quarter with a cash position of $8 million, which includes the $2 7 million in net proceeds from the public offering in March we did not purchase any shares in the first quarter under the stock repurchase plan Mark go back to you for final remarks.
Dan Wyman: 24 adjust.
Dan Wyman: Adjusted EBITDA income improved by 80000 due to continued strategic cost cutting measures.
Daniel Wyman: Mark's.
Mark: Thank you Daniel before I close I want to reiterate that we remain focused on three core drivers of long term profitability first.
Mark: We continue to keenly focus on our balance sheet, given the dynamic real estate market conditions. We ended the quarter with a cash position of $8 million, which includes the $2 7 million in net proceeds from the public offering in March we did not purchase any shares in the first quarter under the stock repurchase plan Mark go back to you for final remarks.
Daniel Wyman: Pending revenue through strategic growth.
Daniel Wyman: And enhancing gross margins through agent programs, such as elevate and then ciliary services and third continued cost discipline across all areas of the business. In summary, Q1 was a strong start of the year with outperform analysts' expectations grew across every key metric launch a high.
Dan Wyman: ARX <unk>.
Speaker Change: Thank you Daniel before I close I want to reiterate that we remain focused on three core drivers of long term profitability first <unk>.
Daniel Wyman: New program and elevate and continue executing against our plan to reach adjusted EBITDA profitability by Q2.
Speaker Change: Expanding revenues through strategic growth second enhancing gross margins through agent programs, such as elevate and then ciliary services and third continued cost discipline across all areas of the business. In summary, Q1 was a strong start of the year with outperform analyst expectations grew across.
Daniel Wyman: While we remain cautious about broader market volatility and global economic uncertainties. We are encouraged by the momentum we are seeing and confident in our ability to adapt and thrive regardless of what the rest of the year brings thank.
Daniel Wyman: Thank you again for your continued support and belief in Fathom and operator, we're now ready to take any questions.
Speaker Change: Every key metric launch a high potential new program and elevate and continue executing against our plan to reach adjusted EBITDA profitability by Q2.
Daniel Wyman: Certainly.
Daniel Wyman: Everyone. At this time, we'll be conducting a question and answer session. If you have any questions or comments. Please press star one on your phone at this time.
Speaker Change: While we remain cautious about broader market volatility and global economic uncertainties. We are encouraged by the momentum we are seeing and confident in our ability to adapt and thrive regardless of what the rest of the ear brings.
Daniel Wyman: We do ask that while posing your question. Please pickup your handset if you're listening on speaker phone to provide optimum sound quality.
Daniel Wyman: Once again, if you have any questions or comments. Please press star one on your phone.
Speaker Change: Thank you again for your continued support and belief in Fathom and operator, we're now ready to take any questions.
Speaker Change: Thank you. Your first question is coming from Darren <unk> from Roth Capital Partners. Your line is live.
Speaker Change: Certainly.
Speaker Change: At this time, we'll be conducting a question and answer session. If you have any questions or comments. Please press star one on your phone at this time.
Hey, guys. Thanks for taking my questions nice to see the growth here.
Speaker Change: We do as well posing your question. Please pick up your handset if you're listening on speaker phone to provide optimum sound quality.
Mark I'll, just two if I may.
Speaker Change: I guess can you just talk a little bit more in depth about how.
Speaker Change: Once again, if you have any questions or comments. Please press star one on your phone.
Speaker Change: Elevate enhances the profitability on both gross profit and adjusted EBITDA per transaction with elevated versus some of your traditional programs and then I know you kind of laid out the goal of the 100 agents for months exiting.
Speaker Change: Thank you. Your first question is coming from Darren <unk> from Roth Capital Partners. Your line is live.
Hey, guys. Thanks for taking my questions nice to see the growth here.
Speaker Change: Fourth quarter or into the fourth quarter.
Speaker Change: Mark I'll, just two if I may.
Speaker Change: Just trying to understand kind of the cadence.
Speaker Change: I guess can you just talk a little bit more in depth about how.
Speaker Change: On boarding pipeline of agents that I know you had made a commentary that there could be a positive impact on ancillary business I'm kind of curious to learn more about that.
Speaker Change: Elevate enhances the profitability on both gross profit and adjusted EBITDA per transaction with elevated versus some of your traditional.
Speaker Change: Yes.
Speaker Change: Thank you for your questions.
Speaker Change: Programs, and then I know you've kind of laid out the goal of a 100 agents for months exiting.
Speaker Change: So the because we are targeting 20%.
Speaker Change: And because of the efficiencies of Intel agent, we are going to see a higher gross profit margin per transaction.
Fourth quarter or into the fourth quarter.
Speaker Change: I'm, just trying to understand kind of the cadence of the <unk>.
Onboarding pipeline of agents and then I know you've made a commentary that there could be a positive impact on ancillary business I'm kind of curious to learn more about that.
Speaker Change: I think we can see gross profit margin will grow by.
Three to four acts compared to our traditional gross profit margin and that's really because of the efficiency of our platform.
Speaker Change: Yeah, Hey, Darren Thank you for your questions.
Speaker Change: So the because we're targeting 20%.
Speaker Change: And while we can deliver.
Speaker Change: Second.
Speaker Change: And because of the efficiencies of Intel I agent, we are going to see a higher gross profit margin per transaction.
We launched this internally about four weeks ago and it really was a soft launch and pretty quickly. There were about 120 agents that signed up we are already onboarding them into the program.
Speaker Change: I think we can see gross profit margin will grow by.
Speaker Change: Three to four acts compared to our traditional gross profit margin and that's really because of the efficiency of our platform.
Speaker Change: And starting I think next week, we'll start marketing external even though we already had some external agents joining the program anything we'll continue to ramp up with the ultimate goal.
Speaker Change: And while we can deliver.
Second.
Speaker Change: We launched this internally about four weeks ago and it really was a soft launch and pretty quickly. There were about 120 agents that signed up we are already onboarding them into the program.
At the end of the year Onboarding about 100 agents, we want to be careful about the growth. It is a complex.
Speaker Change: Program.
Speaker Change: And so we want to make sure that.
Speaker Change: We are firing on all cylinders, but we think that by the entity or we can be at about 100, new agents a month and then of course into next year growing that even farther.
Speaker Change: And starting I think next week, we'll start marketing external even though we already had some external agent joining the program anything we'll continue to ramp up with the ultimate goal.
Speaker Change: And so given that.
Speaker Change: The financial results of the program thus far.
Speaker Change: <unk> of the end of the year Onboarding about 108 as you know we want to be careful about the growth. It is a complex.
Speaker Change: We feel incredibly positive about the impact thats going to have in gross profit and adjusted EBITDA.
Speaker Change: Grants and so we want to make sure that you know we are firing all cylinders, but we think that by the entity or we can be at about 100, new agents a month and then of course into next year growing that even farther.
Speaker Change: That's helpful. Theres, one more if I may outside of my Hope group have you guys.
Speaker Change: Held discussions with similar size.
Agent teams to join Fathom and is any of that accelerated post the launch of elevated I know you talked about some teams.
Speaker Change: And so given that.
Speaker Change: The financial results of the program. Thus far are we we feel incredibly positive about the the impact thats going to have in gross profit and adjusted EBITDA.
Speaker Change: Thanks Mhm.
Speaker Change: Yeah actually once we launch elevate.
Speaker Change: Absolutely have a lot more conversations with different brokerages.
Speaker Change: That's helpful. Just one more if I may.
Speaker Change: Not only brokerages with technology partners brokerages.
Speaker Change: My Hope group have you guys.
Speaker Change: And we're having a go.
Held discussions with similar size.
Speaker Change: They deal a number of conversations.
Speaker Change: Agents teams to join Fathom and is any of that accelerated post the launch of elevated that we talked about some teams and partners in the pipeline.
Speaker Change: In terms of elevated so I do think going forward.
Speaker Change: We're going to see.
Speaker Change: Potentially.
Speaker Change: Yeah actually once we launch elevate.
Speaker Change: Perhaps into more into Q3.
Speaker Change: We absolutely have a lot more conversations with different brokerages.
More work overs.
Speaker Change: And then I think that within the next six months.
Speaker Change: Not only brokerages with technology partners Brokerages are and we're having a you know a great deal of a number of conversations.
Speaker Change: You will see some analysis in terms of potential partnerships of companies that want to not only partner with elevate the license elevate and so that has been a.
Speaker Change: In terms of thinking about elevated so I do think going forward, we're going to see potentially a perhaps into more into Q3.
Speaker Change: Significant interest from a lot of different companies on what our elevators and we're looking forward to to continue to expand the program.
Speaker Change: More work overs.
Speaker Change: Not only into other companies bought into other types of agents for example teams.
Speaker Change: And then I think that within the next six months.
Speaker Change: You'll see some announcements in terms of potential partnerships are of companies that want to not only partner with elevate the license validate and so that has been a significant interest from a lot of different companies on what a elevate is a and we're looking forward to to continue to expand.
Speaker Change: Is one a M.
Speaker Change: In which that we are going to create a elevate for teams. For example, so I think theres a lot of opportunity around elevate and I think we are in is very early stages and I think they're going to have some significant results in the next 12 to 18 months.
Speaker Change: The program.
Speaker Change: <unk> not only into other companies bought into other types of agents. For example teams Ah is is is one.
Speaker Change: Great. Thank you and best of luck.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you once again, everyone. If you have any questions or comments. Please press star then one on your phone. Please hold while we poll for questions.
Speaker Change: In which that we are going to create a L. O V. For teams for example, so I think there's a lot of opportunity around elevate and I think we are in is very early stages and I think they're going to have some significant results in the next 12 to 18 months.
Speaker Change: Thank you there are no further questions in the queue.
Speaker Change: Okay. Thank you everyone for joining us today as always I look forward to our next update that I hope everyone has a good evening. Thank you for joining us.
Great. Thank you and best of luck.
Speaker Change: Thank you.
Speaker Change: Thank you once again, everyone. If you have any questions or comments. Please press star then one on your phone. Please hold while we poll for questions.
Speaker Change: Thank you everyone. This concludes today's event you may disconnect at this time and have a wonderful day. Thank you for your participation.
Speaker Change: Thank you there are no further questions in the queue.
Speaker Change: Okay. Thank you everyone for joining us today as always I look forward to our next update that I hope everyone has a good evening. Thank you for joining us.
Speaker Change: Thank you everyone. This concludes today's event you may disconnect at this time and have a wonderful day. Thank you for your participation.