Market headwinds push Anywhere Q2 revenue down 6% to $2.1 billion

It’s Friday July 29, and today begins another fast-paced installment of earnings season with Anywhere, neé Realogy, up first to report. The earnings fever dream will peak next Thursday, when seven companies in the residential real estate space all report on the same day —?a day which also happens to be the second full day of Inman Connect Las Vegas. Fear not: we’ll be here, there and Anywhere to cover it all.?

Market headwinds push Anywhere Q2 revenue down 6% to $2.1 billion

THE NEWS: The headwinds multiple real estate leaders warned of in the first quarter of 2022 have come to fruition for Anywhere Real Estate, with the real estate holding company’s Q2 revenue declining 6 percent year over year to $2.1 billion. Despite the negative impact of lower transaction volume and the absence of underwriting earnings due to the $210 million sale of Title Resources Guaranty on revenue, the Madison, New Jersey-based company still managed to remain profitable.

Anywhere drew in a net income of $88 million and a basic earnings per share of $0.76 — both of which were below last year’s $141 million net income and EPS of $1.28. The company’s operating earnings before interest taxes depreciation and amortization (EBITDA) also declined 34 percent from $310 million in Q2 2021 to $202 million in Q2 2022.

BEHIND THE NEWS: Even as CEO Ryan Schneider highlighted the silver linings in Anywhere’s performance amid a major rebrand and restructuring, the leader said the upcoming quarters will be challenging and unpredictable as mortgage rates, inflation, recession fears and other headwinds slow the market.

“The biggest change since we last spoke has been the shift in the housing market record increases in mortgage rates to nearly double the levels they were a few months ago, combined with rising inflation and broader macroeconomic concerns has substantially changed buyer affordability, buyer demand and seller expectations,” Schneider said. Read the full story here.

>> NUMBER OF THE DAY: $20 million settlement with Berkshire Hathaway-owned mortgage lender Trident Mortgage over redlining claims in three states ?<<

Ribbon slashes one-third of workforce to adjust to ‘new reality’

THE NEWS: After expanding into eight new states and more than doubling its market footprint this year, Power Buyer Ribbon said Thursday it’s laying off 136 employees, or about one-third of the company’s workforce. In remarks to Ribbon employees, company co-founder and CEO Shaival Shah cited the need to adapt to a “very significant shift in the market,” and said the company had “reduced all unnecessary non-salary expenses to minimize team impact” before resorting to layoffs.

“How long this market volatility continues is uncertain,” Shah told Ribbon employees. “We need a financial plan that provides a clear achievable path to profitability.”

BEHIND THE NEWS: Ribbon, which announced a $150 million Series C raise in September, has a presence in 15 states after this year’s launches in? Kentucky , Colorado , Ohio , Arkansas , Oklahoma , Virginia , Missouri and Indiana . Ribbon partners with real estate agents and lenders to allow homebuyers to waive mortgage, appraisal and home sale contingencies by making cash offers of up to $1 million with Ribbon’s backing.

The company, which often enters new markets by partnering with a real estate brokerage or lender as an initial launch partner, had planned to be operational in 25 states by the end of the year. Asked if that’s still a goal, Shah told Inman via email that Ribbon plans to continue expanding into an unspecified number of new markets. Read the full story here.