Douglas Elliman Inc. Reports Third Quarter 2024 Financial Results
Executing strategic plan focused on growing and diversifying the business to deliver value
Created strategic M&A and business development unit to explore complementary acquisitions in ancillary businesses and bolster core brokerage business
Building a future-focused company based on a culture of integrity, connectivity and entrepreneurialism
“I am excited to be leading Douglas Elliman into a new era,” said
GAAP Financial Results
Three months ended
Nine months ended
Non-GAAP Financial Measures
Non-GAAP financial measures include adjustments for stock-based compensation, equity in losses from equity method investments, restructuring, change in fair value of derivatives embedded within convertible debt, non-cash amortization of debt discount on convertible debt (for purposes of Adjusted Net Loss) and other, net (for purposes of Adjusted EBITDA). Reconciliations of non-GAAP financial measures to the comparable GAAP financial results for the three and nine months ended
Three months ended
Adjusted EBITDA attributed to Douglas Elliman (as described in Table 2 attached hereto) were a loss of
Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment (as described in Table 2 attached hereto) were
Adjusted Net Loss attributed to Douglas Elliman (as described in Table 3 attached hereto) was
Nine months ended
Adjusted EBITDA attributed to Douglas Elliman (as described in Table 2 attached hereto) were a loss of
Adjusted EBITDA attributed to Douglas Elliman’s real estate brokerage segment (as described in Table 2 attached hereto) were a loss of
Adjusted Net Loss attributed to Douglas Elliman (as described in Table 3 attached hereto) was
Gross Transaction Value
For the three months ended
For the nine months ended
Consolidated Balance Sheet
Douglas Elliman maintained a strong balance sheet with cash and cash equivalents of
Conference Call to Discuss Third Quarter 2024 Results
As previously announced, the Company will host a conference call and webcast to discuss its third quarter 2024 results on
Investors may access the call via live webcast at https://join.eventcastplus.com/eventcastplus/Douglas-Elliman-Inc-Third-Quarter-2024-Conference-Call. Please join the webcast at least 10 minutes prior to the start time.
A replay of the webcast will be available shortly after the call ends on
Non-GAAP Financial Measures
Adjusted EBITDA attributed to Douglas Elliman, Adjusted Net Loss attributed to Douglas Elliman, and financial measures for the last twelve months (“LTM”) ended
The Company believes the Non-GAAP Financial Measures provide investors and analysts with a useful measure of operating results unaffected by differences in capital structures and ages of related assets among otherwise comparable companies.
Management uses the Non-GAAP Financial Measures as measures to review and assess operating performance of the Company’s business, and management does and investors should review both the overall performance (GAAP net income) and the operating performance (the Non-GAAP Financial Measures) of the Company’s business. While management considers the Non-GAAP Financial Measures to be important, they should be considered in addition to, but not as substitutes for or superior to, other measures of financial performance prepared in accordance with GAAP, such as operating income, net income and cash flows from operations. In addition, the Non-GAAP Financial Measures are susceptible to varying calculations and the Company’s measurement of the Non-GAAP Financial Measures may not be comparable to those of other companies. Attached hereto as Tables 2 and 3 is information relating to the Company’s Non-GAAP Financial Measures for the three and nine months ended
About
Investors and others should note that we may post information about Douglas Elliman on our website at investors.elliman.com or, if applicable, on our accounts on Facebook, Instagram, LinkedIn, TikTok, X, YouTube or other social media platforms. It is possible that the postings or releases could include information deemed to be material information. Therefore, we encourage investors, the media and others interested in Douglas Elliman to review the information we post on our website at investors.elliman.com and on our social media accounts.
Forward-Looking and Cautionary Statements
This press release includes forward-looking statements within the meaning of the federal securities law. All statements other than statements of historical or current facts made in this document are forward-looking. We identify forward-looking statements in this document by using words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may be,” “continue” “could,” “potential,” “objective,” “plan,” “seek,” “predict,” “project” and “will be” and similar words or phrases or their negatives. Forward-looking statements reflect our current expectations and are inherently uncertain. Actual results could differ materially for a variety of reasons.
Risks and uncertainties that could cause our actual results to differ significantly from our current expectations are described in our Annual Report on Form 10-K for the year ended
[Financial Tables Follow]
|
TABLE 1
|
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenues: |
|
|
|
|
|
|
|
||||||||
|
Commissions and other brokerage income |
$ |
254,074 |
|
|
$ |
239,255 |
|
|
$ |
714,652 |
|
|
$ |
703,780 |
|
|
Property management |
|
8,960 |
|
|
|
8,697 |
|
|
|
27,701 |
|
|
|
26,849 |
|
|
Other ancillary services |
|
3,282 |
|
|
|
3,596 |
|
|
|
9,953 |
|
|
|
10,813 |
|
|
Total revenues |
|
266,316 |
|
|
|
251,548 |
|
|
|
752,306 |
|
|
|
741,442 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Expenses: |
|
|
|
|
|
|
|
||||||||
|
Real estate agent commissions |
|
199,133 |
|
|
|
185,845 |
|
|
|
564,606 |
|
|
|
546,749 |
|
|
Sales and marketing |
|
19,240 |
|
|
|
20,770 |
|
|
|
62,691 |
|
|
|
64,170 |
|
|
Operations and support |
|
18,774 |
|
|
|
17,121 |
|
|
|
55,572 |
|
|
|
53,338 |
|
|
General and administrative |
|
28,659 |
|
|
|
28,817 |
|
|
|
80,530 |
|
|
|
92,371 |
|
|
Technology |
|
6,025 |
|
|
|
5,602 |
|
|
|
17,301 |
|
|
|
17,777 |
|
|
Depreciation and amortization |
|
1,898 |
|
|
|
1,999 |
|
|
|
5,808 |
|
|
|
6,031 |
|
|
Litigation settlement |
|
— |
|
|
|
— |
|
|
|
17,750 |
|
|
|
— |
|
|
Restructuring |
|
18 |
|
|
|
215 |
|
|
|
616 |
|
|
|
1,932 |
|
|
Operating loss |
|
(7,431 |
) |
|
|
(8,821 |
) |
|
|
(52,568 |
) |
|
|
(40,926 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Other income (expenses): |
|
|
|
|
|
|
|
||||||||
|
Interest expense |
|
(1,461 |
) |
|
|
(4 |
) |
|
|
(1,475 |
) |
|
|
(22 |
) |
|
Interest income |
|
1,551 |
|
|
|
1,789 |
|
|
|
3,989 |
|
|
|
4,282 |
|
|
Equity in earnings (losses) from equity-method investments |
|
62 |
|
|
|
10 |
|
|
|
49 |
|
|
|
(143 |
) |
|
Change in fair value of derivative embedded within convertible debt |
|
(20,166 |
) |
|
|
— |
|
|
|
(20,166 |
) |
|
|
— |
|
|
Investment (loss) and other gains |
|
(4 |
) |
|
|
27 |
|
|
|
625 |
|
|
|
109 |
|
|
Loss before provision for income taxes |
|
(27,449 |
) |
|
|
(6,999 |
) |
|
|
(69,546 |
) |
|
|
(36,700 |
) |
|
Income tax (benefit) expense |
|
— |
|
|
|
(1,869 |
) |
|
|
1,368 |
|
|
|
(8,552 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Net loss |
|
(27,449 |
) |
|
|
(5,130 |
) |
|
|
(70,914 |
) |
|
|
(28,148 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Net loss attributed to non-controlling interest |
|
269 |
|
|
|
264 |
|
|
|
595 |
|
|
|
439 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net loss attributed to |
$ |
(27,180 |
) |
|
$ |
(4,866 |
) |
|
$ |
(70,319 |
) |
|
$ |
(27,709 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Per basic common share: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net loss applicable to common shares attributed to |
$ |
(0.33 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.84 |
) |
|
$ |
(0.34 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Per diluted common share: |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
Net loss applicable to common shares attributed to |
$ |
(0.33 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.84 |
) |
|
$ |
(0.34 |
) |
|
TABLE 2
|
|||||||||||||||||||||||
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Net loss attributed to |
$ |
(85,162 |
) |
|
$ |
(42,552 |
) |
|
$ |
(27,180 |
) |
|
$ |
(4,866 |
) |
|
$ |
(70,319 |
) |
|
$ |
(27,709 |
) |
|
Interest expense |
|
1,481 |
|
|
|
28 |
|
|
|
1,461 |
|
|
|
4 |
|
|
|
1,475 |
|
|
|
22 |
|
|
Interest income |
|
(5,548 |
) |
|
|
(5,841 |
) |
|
|
(1,551 |
) |
|
|
(1,789 |
) |
|
|
(3,989 |
) |
|
|
(4,282 |
) |
|
Income tax (benefit) expense |
|
(5,133 |
) |
|
|
(15,053 |
) |
|
|
— |
|
|
|
(1,869 |
) |
|
|
1,368 |
|
|
|
(8,552 |
) |
|
Net loss attributed to non-controlling interest |
|
(770 |
) |
|
|
(614 |
) |
|
|
(269 |
) |
|
|
(264 |
) |
|
|
(595 |
) |
|
|
(439 |
) |
|
Depreciation and amortization |
|
7,803 |
|
|
|
8,026 |
|
|
|
1,898 |
|
|
|
1,999 |
|
|
|
5,808 |
|
|
|
6,031 |
|
|
EBITDA |
$ |
(87,329 |
) |
|
$ |
(56,006 |
) |
|
$ |
(25,641 |
) |
|
$ |
(6,785 |
) |
|
$ |
(66,252 |
) |
|
$ |
(34,929 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Equity in (earnings) losses from equity-method investments |
|
(24 |
) |
|
|
168 |
|
|
|
(62 |
) |
|
|
(10 |
) |
|
|
(49 |
) |
|
|
143 |
|
|
Change in fair value of derivatives embedded within convertible debt |
|
20,166 |
|
|
|
— |
|
|
|
20,166 |
|
|
|
— |
|
|
|
20,166 |
|
|
|
— |
|
|
Stock-based compensation expense |
|
14,126 |
|
|
|
13,075 |
|
|
|
3,887 |
|
|
|
3,442 |
|
|
|
10,717 |
|
|
|
9,666 |
|
|
Litigation settlement |
|
17,750 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,750 |
|
|
|
— |
|
|
Restructuring |
|
1,061 |
|
|
|
2,377 |
|
|
|
18 |
|
|
|
215 |
|
|
|
616 |
|
|
|
1,932 |
|
|
Other, net |
|
(1,149 |
) |
|
|
(633 |
) |
|
|
4 |
|
|
|
(27 |
) |
|
|
(625 |
) |
|
|
(109 |
) |
|
Adjusted EBITDA |
|
(35,399 |
) |
|
|
(41,019 |
) |
|
|
(1,628 |
) |
|
|
(3,165 |
) |
|
|
(17,677 |
) |
|
|
(23,297 |
) |
|
Adjusted EBITDA attributed to non-controlling interest |
|
607 |
|
|
|
326 |
|
|
|
182 |
|
|
|
138 |
|
|
|
344 |
|
|
|
63 |
|
|
Adjusted EBITDA attributed to |
$ |
(34,792 |
) |
|
$ |
(40,693 |
) |
|
$ |
(1,446 |
) |
|
$ |
(3,027 |
) |
|
$ |
(17,333 |
) |
|
$ |
(23,234 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating loss by Segment: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Real estate brokerage |
$ |
(48,305 |
) |
|
$ |
(36,769 |
) |
|
$ |
454 |
|
|
$ |
(1,992 |
) |
|
$ |
(31,885 |
) |
|
$ |
(20,349 |
) |
|
Corporate and other |
|
(27,834 |
) |
|
|
(27,728 |
) |
|
|
(7,885 |
) |
|
|
(6,829 |
) |
|
|
(20,683 |
) |
|
|
(20,577 |
) |
|
Total |
$ |
(76,139 |
) |
|
$ |
(64,497 |
) |
|
$ |
(7,431 |
) |
|
$ |
(8,821 |
) |
|
$ |
(52,568 |
) |
|
$ |
(40,926 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Real estate brokerage segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating loss (income) |
$ |
(48,305 |
) |
|
$ |
(36,769 |
) |
|
$ |
454 |
|
|
$ |
(1,992 |
) |
|
$ |
(31,885 |
) |
|
$ |
(20,349 |
) |
|
Depreciation and amortization |
|
7,803 |
|
|
|
8,026 |
|
|
|
1,898 |
|
|
|
1,999 |
|
|
|
5,808 |
|
|
|
6,031 |
|
|
Stock-based compensation |
|
4,795 |
|
|
|
4,539 |
|
|
|
1,258 |
|
|
|
1,175 |
|
|
|
3,611 |
|
|
|
3,355 |
|
|
Litigation settlement |
|
17,750 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,750 |
|
|
|
— |
|
|
Restructuring |
|
1,061 |
|
|
|
2,377 |
|
|
|
18 |
|
|
|
215 |
|
|
|
616 |
|
|
|
1,932 |
|
|
Adjusted EBITDA |
|
(16,896 |
) |
|
|
(21,827 |
) |
|
|
3,628 |
|
|
|
1,397 |
|
|
|
(4,100 |
) |
|
|
(9,031 |
) |
|
Adjusted EBITDA attributed to non-controlling interest |
|
607 |
|
|
|
326 |
|
|
|
182 |
|
|
|
138 |
|
|
|
344 |
|
|
|
63 |
|
|
Adjusted EBITDA attributed to |
$ |
(16,289 |
) |
|
$ |
(21,501 |
) |
|
$ |
3,810 |
|
|
$ |
1,535 |
|
|
$ |
(3,756 |
) |
|
$ |
(8,968 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Corporate and other segment |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating loss |
$ |
(27,834 |
) |
|
$ |
(27,728 |
) |
|
$ |
(7,885 |
) |
|
$ |
(6,829 |
) |
|
$ |
(20,683 |
) |
|
$ |
(20,577 |
) |
|
Stock-based compensation |
|
9,331 |
|
|
|
8,536 |
|
|
|
2,629 |
|
|
|
2,267 |
|
|
|
7,106 |
|
|
|
6,311 |
|
|
Adjusted EBITDA attributed to |
$ |
(18,503 |
) |
|
$ |
(19,192 |
) |
|
$ |
(5,256 |
) |
|
$ |
(4,562 |
) |
|
$ |
(13,577 |
) |
|
$ |
(14,266 |
) |
|
TABLE 3
|
|||||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
||||||||||||
|
Net loss attributed to |
$ |
(27,180 |
) |
|
$ |
(4,866 |
) |
|
$ |
(70,319 |
) |
|
$ |
(27,709 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Restructuring |
|
18 |
|
|
|
215 |
|
|
|
616 |
|
|
|
1,932 |
|
|
Change in fair value of derivatives embedded within convertible debt |
|
20,166 |
|
|
|
— |
|
|
|
20,166 |
|
|
|
— |
|
|
Non-cash amortization of debt discount on convertible debt |
|
487 |
|
|
|
— |
|
|
|
487 |
|
|
|
— |
|
|
Litigation settlement |
|
— |
|
|
|
— |
|
|
|
17,750 |
|
|
|
— |
|
|
Total adjustments |
|
20,671 |
|
|
|
215 |
|
|
|
39,019 |
|
|
|
1,932 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Tax expense related to adjustments |
|
— |
|
|
|
(66 |
) |
|
|
— |
|
|
|
(589 |
) |
|
Adjusted net loss attributed to |
$ |
(6,509 |
) |
|
$ |
(4,717 |
) |
|
$ |
(31,300 |
) |
|
$ |
(26,366 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Per diluted common share: |
|
|
|
|
|
|
|
||||||||
|
Adjusted net loss applicable to common shares attributed to |
$ |
(0.08 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.32 |
) |
|
TABLE 4
|
|||||||||||||||||
|
|
LTM |
|
Year Ended |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||
|
|
|
|
|
|
|
|
|
||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Commissions and other brokerage income |
$ |
916,941 |
|
$ |
906,069 |
|
$ |
254,074 |
|
$ |
239,255 |
|
$ |
714,652 |
|
$ |
703,780 |
|
Property management |
|
36,394 |
|
|
35,542 |
|
|
8,960 |
|
|
8,697 |
|
|
27,701 |
|
|
26,849 |
|
Other ancillary services |
|
13,107 |
|
|
13,967 |
|
|
3,282 |
|
|
3,596 |
|
|
9,953 |
|
|
10,813 |
|
Total revenues |
$ |
966,442 |
|
$ |
955,578 |
|
$ |
266,316 |
|
$ |
251,548 |
|
$ |
752,306 |
|
$ |
741,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Statistical Measures (Non-GAAP): |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Gross transaction value (in billions) |
$ |
35.5 |
|
$ |
34.4 |
|
$ |
9.8 |
|
$ |
9.3 |
|
$ |
27.6 |
|
$ |
26.5 |
|
Total transactions |
|
21,466 |
|
|
21,606 |
|
|
6,081 |
|
|
5,913 |
|
|
16,444 |
|
|
16,584 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106235277/en/
917-902-2503
212-687-8080
J. Bryant Kirkland III,
305-579-8000
Source:
