Fathom reports Q3 GAAP EPS (34c), consensus (26c)

Reports Q3 revenue $93.5M, consensus $94.96M. “Our results this quarter continue to demonstrate Fathom’s ability to navigate challenging market conditions with a truly disruptive business model that is resonating among agents,” said Fathom CEO Joshua Harley. “While the residential real estate market remains challenging, we continue to believe that our future remains bright and are positioning Fathom for continued success once the industry rebounds. We’re continuing to grow our agent network and believe we’ll continue to attract high quality agent teams and brokerages going forward as our agent value proposition remains compelling in the current environment and our pipeline of opportunities remains strong. We believe that Fathom is 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. By further rightsizing the Company’s expenses, we’ve set a target to achieve operating cash flow breakeven as early as Q2 of 2024 while remaining committed to getting back to positive Adjusted EBITDA in Q1 2024 and going forward.” “We remain focused on execution and are taking necessary steps to better position Fathom in the current environment and once the market recovers,” stated Fathom President and CFO Marco Fregenal. “During the third quarter, we continued to see the benefits from the cost-reduction measures we’ve already implemented. We have continued to further right-size the Company’s expenses and implement management salary reductions for a combined expected savings of approximately $1.2 million per quarter. We believe we are positioned for profitable growth ahead where we can start to show the operating leverage in our businesses.”