Marcus & Millichap, Inc. (MMI) Bundle
A Brief History of Marcus & Millichap
As of 2024, Marcus & Millichap, Inc. continues to hold a significant position in the commercial real estate brokerage sector. The company reported total revenue of $168.5 million for the three months ended September 30, 2024, compared to $162.0 million for the same period in 2023, marking an increase of approximately 4.0%.
Financial Performance
For the nine months ended September 30, 2024, the company reported total revenue of $455.98 million, down from $479.68 million in the same period in 2023, representing a decrease of 4.9%.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $168.5 million | $162.0 million | +4.0% |
| Net Loss | ($5.385) million | ($9.240) million | +41.7% |
| Operating Loss | ($11.465) million | ($15.431) million | +25.7% |
| Net Loss Per Share (Basic) | ($0.14) | ($0.24) | +41.7% |
Key Revenue Sources
Revenue from real estate brokerage commissions was $142.0 million for Q3 2024, an increase from $139.8 million in Q3 2023, reflecting a rise of 1.5%. Financing fees also saw a significant increase, totaling $20.6 million for Q3 2024 compared to $17.3 million in Q3 2023, marking a growth of 19.3%.
Operating Expenses
The total operating expenses for the three months ended September 30, 2024, were $180.0 million, up from $177.5 million in the same period of 2023. This increase was largely attributed to a rise in selling, general, and administrative expenses.
| Operating Expense Category | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Services | $104.7 million | $104.6 million | +0.1% |
| Selling, General and Administrative | $70.7 million | $69.2 million | +2.1% | Depreciation and Amortization | $4.5 million | $3.6 million | +25.1% |
Market and Operational Metrics
In terms of operational efficiency, during the three months ended September 30, 2024, the average number of investment sales professionals was 1,589, down from 1,733 in Q3 2023. The firm closed 1,331 transactions in Q3 2024, compared to 1,361 in Q3 2023.
| Operational Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Average Number of Investment Sales Professionals | 1,589 | 1,733 |
| Total Number of Transactions | 1,331 | 1,361 |
| Total Sales Volume (in millions) | $8,527 | $7,433 |
As of September 30, 2024, the company reported total assets of $833.71 million, down from $878.41 million at the end of 2023. The decrease in assets correlates with the reduction in total revenue and operational adjustments made in response to market conditions.
Overall, Marcus & Millichap's financial performance in 2024 reflects its resilience in navigating a challenging commercial real estate environment, with strategic adjustments aimed at maintaining growth and operational efficiency amidst fluctuating market dynamics.
A Who Owns Marcus & Millichap, Inc. (MMI)
Current Ownership Structure
As of September 30, 2024, Marcus & Millichap, Inc. (MMI) has approximately 38,823,704 shares of common stock outstanding. This figure includes unvested restricted stock awards issued to non-employee directors.
Major Shareholders
The major shareholders of Marcus & Millichap, Inc. include institutional investors and company executives. The following table outlines the ownership distribution among significant shareholders:
| Shareholder Type | Number of Shares | Percentage of Ownership |
|---|---|---|
| Institutional Investors | ~ 16,000,000 | ~ 41.2% |
| Company Executives | ~ 7,000,000 | ~ 18.0% |
| Retail Investors | ~ 15,823,704 | ~ 40.8% |
Stock Performance and Financial Data
Marcus & Millichap reported total revenue of $456.0 million for the nine months ended September 30, 2024, compared to $479.7 million for the same period in 2023. This reflects a decrease of $23.7 million, or 4.9%.
Revenue from real estate brokerage commissions for the nine months ended September 30, 2024 was $386.9 million, down from $415.2 million in the same period in 2023, marking a decline of 6.8%. Financing fees rose to $53.3 million from $51.0 million, an increase of 4.5%. Other revenue also increased to $15.8 million from $13.5 million, a growth of 17.4%.
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024 were $495.6 million, compared to $521.9 million in 2023, a decrease of $26.3 million, or 5.0%. The breakdown is as follows:
| Expense Type | Amount (in millions) | Percentage of Total Revenue |
|---|---|---|
| Cost of Services | $279.7 | 61.3% |
| Selling, General and Administrative | $204.6 | 41.5% |
Net Loss and Earnings Per Share
Net loss for the nine months ended September 30, 2024 was reported at $20.9 million, compared to a net loss of $23.8 million in 2023. The basic loss per share was $(0.54) for the nine-month period in 2024, compared to $(0.61) in 2023.
Market Capitalization
The market capitalization of Marcus & Millichap, Inc. as of September 30, 2024, is approximately $579 million based on a stock price of approximately $14.90 per share.
Dividend Information
On February 8, 2024, the Board of Directors declared a semi-annual dividend of $0.25 per share, with a payment date of April 5, 2024. A second semi-annual dividend of $0.25 per share was declared on August 1, 2024, with a payment date of October 4, 2024. The total dividend payable as of September 30, 2024, was $12.2 million.
Marcus & Millichap, Inc. (MMI) Mission Statement
Overview of Mission Statement
The mission of Marcus & Millichap, Inc. is to provide superior real estate investment services to its clients, leveraging extensive research and a deep understanding of the commercial real estate market. The company aims to maximize value for its clients by delivering innovative solutions and fostering long-term relationships.
Key Components of the Mission Statement
- Client Focus: Prioritizing client needs and delivering exceptional service.
- Market Leadership: Maintaining a leadership position in commercial real estate investment sales.
- Integrity and Professionalism: Upholding the highest ethical standards in all transactions.
- Innovation: Continuously adapting and innovating to meet changing market demands.
Financial Performance as of September 30, 2024
Marcus & Millichap reported a total revenue of $168.5 million for the three months ended September 30, 2024, compared to $162.0 million for the same period in 2023. The company’s revenue sources are diversified as follows:
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Real Estate Brokerage Commissions | $142.0 | $139.8 | 0.9% |
| Financing Fees | $20.6 | $17.3 | 19.9% |
| Other Revenue | $5.9 | $5.0 | 20.2% |
| Total Revenue | $168.5 | $162.0 | 2.9% |
Brokerage Performance
During the three months ended September 30, 2024, the company completed 1,331 transactions, with a total sales volume of $8.5 billion. The breakdown of transactions by market segment is as follows:
| Market Segment | Number of Transactions | Sales Volume (in millions) | Revenue (in millions) |
|---|---|---|---|
| Properties priced <$1 million | 203 | $109 | $5.2 |
| Private Client Market ($1 – <$10 million) | 957 | $3,037 | $87.5 |
| Middle Market ($10 – <$20 million) | 88 | $1,229 | $19.4 |
| Larger Transaction Market (≥$20 million) | 83 | $4,152 | $29.9 |
| Total | 1,331 | $8,527 | $141.9 |
Market Position and Competitive Advantage
Marcus & Millichap operates over 80 offices across the United States and Canada, reinforcing its position as a leading real estate services firm. The company specializes in:
- Commercial real estate investment sales
- Financing services
- Research and advisory services
Recent Financial Results
For the nine months ended September 30, 2024, Marcus & Millichap reported:
| Financial Metric | 2024 (in millions) | 2023 (in millions) | Change (%) |
|---|---|---|---|
| Total Revenue | $456.0 | $479.7 | -4.9% |
| Net Loss | $20.9 | $23.8 | -12.2% |
| Net Loss per Share | $0.54 | $0.61 | -11.5% |
Conclusion on the Mission Statement and Financial Health
Marcus & Millichap continues to solidify its mission of delivering exceptional service and innovative solutions in the commercial real estate sector while navigating a challenging economic environment, as reflected in its recent financial performance and strategic positioning.
How Marcus & Millichap, Inc. (MMI) Works
Company Overview
Marcus & Millichap, Inc. operates as a commercial real estate brokerage firm, specializing in investment sales, financing, research, and advisory services. The company primarily generates revenue through real estate brokerage commissions, financing fees, and other real estate-related services.
Financial Performance
As of September 30, 2024, Marcus & Millichap reported the following financial results:
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change |
|---|---|---|---|
| Total Revenue | $168,511,000 | $162,026,000 | +4.0% |
| Real Estate Brokerage Commissions | $141,970,000 | $139,817,000 | +1.5% |
| Financing Fees | $20,582,000 | $17,257,000 | +19.3% |
| Other Revenue | $5,959,000 | $4,952,000 | +20.3% |
| Total Operating Expenses | $179,976,000 | $177,457,000 | +1.4% |
| Net Loss | $(5,385,000) | $(9,240,000) | +41.7% |
Revenue Breakdown
For the nine months ended September 30, 2024, the revenue breakdown was as follows:
| Revenue Source | Amount | Percentage of Total Revenue |
|---|---|---|
| Real Estate Brokerage Commissions | $386,868,000 | 84.8% |
| Financing Fees | $53,303,000 | 11.7% |
| Other Revenue | $15,811,000 | 3.5% |
| Total Revenue | $455,982,000 | 100% |
Operating Results
In terms of operational efficiency, the company reported:
| Operating Metrics | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Operating Loss | $(39,613,000) | $(42,167,000) |
| Adjusted EBITDA | $(8,662,000) | $(15,126,000) |
| Net Loss | $(20,910,000) | $(23,802,000) |
Transaction Metrics
For the three months ended September 30, 2024, key transaction metrics included:
| Metric | Value |
|---|---|
| Total Number of Transactions | 1,331 |
| Total Sales Volume | $8,527,000,000 |
| Average Commission per Transaction | $106,664 |
| Average Transaction Size | $6,407,000 |
Market Segmentation
Marcus & Millichap categorizes its commercial real estate market into four segments:
- Properties priced less than $1 million
- Private client market: properties priced from $1 million to less than $10 million
- Middle market: properties priced from $10 million to less than $20 million
- Larger transaction market: properties priced at $20 million and above
Investment Sales Professionals
The average number of investment sales professionals for the three months ended September 30, 2024 was 1,589, compared to 1,733 for the same period in 2023.
Recent Developments
As of September 30, 2024, the company reported total assets of $833,714,000 and total liabilities of $215,986,000.
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $833,714,000 |
| Total Liabilities | $215,986,000 |
| Total Stockholders' Equity | $617,728,000 |
Stockholder Information
As of September 30, 2024, the total shares of common stock outstanding were 38,823,704.
How Marcus & Millichap, Inc. (MMI) Makes Money
Revenue Streams
Marcus & Millichap generates revenue primarily through three key streams:
- Real Estate Brokerage Commissions: 84% of revenue, totaling $386.9 million for the nine months ended September 30, 2024.
- Financing Fees: 12% of revenue, totaling $53.3 million for the nine months ended September 30, 2024.
- Other Real Estate Related Services: 4% of revenue, totaling $15.8 million for the nine months ended September 30, 2024.
Real Estate Brokerage Commissions
The company earns commissions by facilitating sales transactions for commercial real estate. The revenue from these commissions for the three months ended September 30, 2024 was:
| Market Segment | Number of Transactions | Sales Volume (in millions) | Revenue (in millions) |
|---|---|---|---|
| Less than $1 million | 203 | $109 | $5.2 |
| Private Client Market ($1 – <$10 million) | 957 | $3,037 | $87.5 |
| Middle Market ($10 – <$20 million) | 88 | $1,229 | $19.4 |
| Larger Transaction Market (≥$20 million) | 83 | $4,152 | $29.9 |
| Total | 1,331 | $8,527 | $141.9 |
For the nine months ended September 30, 2024, revenue from real estate brokerage commissions was $386.9 million, a decrease of 6.8% from $415.2 million for the same period in 2023. This decline was attributed to a 3.4% decrease in total sales volume and a reduction in the average commission rate.
Financing Fees
Marcus & Millichap also generates revenue through financing fees, which increased to $53.3 million for the nine months ended September 30, 2024, from $51.0 million in the previous year, reflecting a 4.5% increase. The breakdown for the three months ended September 30, 2024 is as follows:
| Metric | Value |
|---|---|
| Total Financing Volume (in millions) | $2,134 |
| Total Number of Transactions | 318 |
| Average Fee per Transaction | $50,351 |
| Average Fee Rate | 0.75% |
Other Revenue
Other revenue sources include leasing, consulting, and advisory services, which contributed $15.8 million for the nine months ended September 30, 2024, up from $13.5 million in 2023, marking a 17.4% increase.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 totaled $495.6 million, down from $521.9 million in 2023. The major components include:
| Expense Type | Amount (in millions) |
|---|---|
| Cost of Services | $279.7 |
| Selling, General, and Administrative Expenses | $204.6 |
| Depreciation and Amortization | $11.3 |
The cost of services decreased by $21.5 million, or 7.1%, primarily due to lower commission expenses linked to decreased revenue.
Net Loss
For the nine months ended September 30, 2024, Marcus & Millichap reported a net loss of $20.9 million compared to a net loss of $23.8 million in the same period of 2023. The net loss per share was $0.54 for the nine months ended September 30, 2024.
Key Financial Metrics
Key financial metrics for the three months ended September 30, 2024 include:
| Metric | Value |
|---|---|
| Total Revenue | $168.5 million |
| Operating Loss | $(11.5) million |
| Adjusted EBITDA | $(21,000) |
Overall, Marcus & Millichap's revenue generation is heavily reliant on its brokerage commissions, with additional contributions from financing activities and other services, all of which are influenced by market conditions and transaction volumes.
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Resources:
- Marcus & Millichap, Inc. (MMI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Marcus & Millichap, Inc. (MMI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Marcus & Millichap, Inc. (MMI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.