RE/MAX Holdings, Inc. (NYSE:RMAX), a prominent player in the global real estate market with a market capitalization of $315 million, has reaffirmed its financial guidance for the fourth quarter and full year of 2024, despite reporting a decline in U.S. agent count and the resignation of a key executive. According to InvestingPro analysis, the company appears undervalued at its current trading price of $10.02, suggesting potential upside opportunity.
On Monday, the company disclosed that Amy Lessinger, President of RE/MAX, LLC, a subsidiary of RE/MAX Holdings, will be stepping down from her role effective January 17, 2025. The search for her successor is currently underway. Despite this leadership transition, RE/MAX Holdings has maintained its previously stated revenue and Adjusted EBITDA projections for the upcoming financial results.
The company's agent count experienced a decrease in the United States by 7% year-over-year as of December 31, 2024, dropping from 55,131 to 51,286 agents. However, international growth remained robust with an 8.7% increase outside the U.S. and Canada. Despite these mixed trends, RE/MAX maintains strong fundamentals with a healthy gross profit margin of 74% and a current ratio of 1.37, indicating solid liquidity. InvestingPro has identified 12 additional key factors affecting RE/MAX's performance, available to subscribers.
For the fourth quarter of 2024, RE/MAX Holdings expects revenue between $71.0 million to $76.0 million, including Marketing Funds revenue ranging from $18.5 million to $20.5 million. Adjusted EBITDA is anticipated to be between $20.5 million and $23.5 million. For the full year, the company projects revenue in the range of $306.0 million to $311.0 million, with Adjusted EBITDA estimated at $95.0 million to $98.0 million.
Adjusted EBITDA is a non-GAAP financial measure that the company uses to provide transparency into its operating performance, excluding non-cash items and other non-recurring cash charges or items.
The company has not provided a reconciliation of its non-GAAP financial guidance to the corresponding U.S. GAAP measures, citing the preliminary nature of the information and the uncertainty and variability of future charges and costs. For deeper insights into RE/MAX's valuation metrics and financial health, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which provides detailed analysis of the company's performance indicators and growth prospects.
In other recent news, RE/MAX Holdings, Inc. reported mixed results for Q3 2024. The company experienced a slight increase in adjusted EBITDA to $27.3 million, despite a decline in revenue excluding marketing funds, due to a decrease in U.S. agent count. However, the company reported growth in international and Canadian agent counts, with particular growth seen in Brazil and Argentina.
In response to recent hurricanes, RE/MAX plans to provide financial relief to affiliates, which is expected to impact Q4 performance. Despite these challenges, the company remains focused on operational efficiency and technology enhancements. RE/MAX adjusted its Q4 revenue guidance down by $1 to $1.5 million due to hurricane impacts, with projected Q4 revenue between $71 million and $76 million. Full-year 2024 revenue is estimated to be between $306 million and $311 million.
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