Mission Statement, Vision, & Core Values (2024) of Fathom Holdings Inc. (FTHM)

An Overview of Fathom Holdings Inc. (FTHM)

General Overview of Fathom Holdings Inc. (FTHM)

Fathom Holdings Inc., founded in 2010, is a national, technology-driven real estate services platform. The company integrates residential brokerage, mortgage, title, and software-as-a-service (SaaS) offerings to brokerages and agents. As of 2024, Fathom operates under several brands, including Fathom Realty, Encompass Lending, and Verus Title, leveraging its proprietary cloud-based software, intelliAgent.

As of September 30, 2024, Fathom's real estate agent network grew to approximately 12,383 agent licenses, a 9% increase from 11,333 licenses a year earlier. The company completed 9,331 transactions in the third quarter of 2024, though this marked a decrease of approximately 9% compared to the prior year due to high home prices and mortgage interest rate uncertainties. The company's total revenue for the third quarter of 2024 was $83.7 million, a decrease of 10% from $93.5 million in the same quarter of 2023.

Company's Financial Performance in Latest Financial Reports

Fathom Holdings reported a total revenue of $83.7 million for the third quarter of 2024, down from $93.5 million in the third quarter of 2023. This decline was primarily driven by an 11% decrease in brokerage revenue, attributed to fewer transactions. However, there was a significant 44% increase in revenue from ancillary businesses, mainly due to improved performance in the mortgage and title sectors. The company's segment revenue for the third quarter was as follows:

Fathom's gross profit percentage improved to 5.7% in Q3 2024 from 5.1% in Q3 2023, excluding the insurance business, which was sold on May 3, 2024. The overall gross profit percentage, excluding insurance, increased to 9% from 7% in the same period.

Despite these improvements, the company reported a GAAP net loss of $8.1 million, or $0.40 per share, compared to a loss of $5.5 million, or $0.34 per share, in the prior year. The net loss increase was largely due to a $3.0 million settlement contingency related to litigation.

Introduction to Fathom Holdings as an Industry Leader

Fathom Holdings Inc. has established itself as a leader in the real estate services industry by leveraging technology and an agent-focused model. The company has been proactive in expanding its footprint through strategic acquisitions, such as the recent acquisition of My Home Group, which added over 2,200 agents and enhanced Fathom's presence in key markets like Arizona and Washington.

The company's commitment to innovation is evident in its introduction of new commission plans aimed at enhancing agent recruitment and retention, thereby driving sustainable growth. Fathom's focus on technology integration and providing comprehensive services to real estate professionals positions it favorably within a competitive landscape.

Mission Statement of Fathom Holdings Inc. (FTHM)

Mission Statement Overview

Fathom Holdings Inc. (FTHM) articulates its mission to be a national, technology-driven, end-to-end real estate services platform that integrates residential brokerage, mortgage, title, and SaaS offerings for brokerages and agents. This mission underpins the company's strategic direction and operational focus, guiding its long-term goals and commitment to delivering high-quality services.

Core Component 1: Technology-Driven Solutions

Fathom emphasizes the integration of technology within its offerings. The company leverages proprietary cloud-based software, intelliAgent, to enhance operational efficiency and provide superior service delivery. As of September 30, 2024, Fathom's real estate agent network grew by 9% to approximately 12,383 agent licenses, demonstrating the effectiveness of its technology-driven approach in attracting and retaining talent.

Core Component 2: Comprehensive Service Offerings

The mission statement reflects Fathom's commitment to providing comprehensive real estate services. This includes not only brokerage services but also mortgage and title services, which are crucial for a seamless customer experience. In the third quarter of 2024, Fathom completed 9,331 transactions, although this represented a 9% decrease compared to the previous year due to market challenges. The company aims to address these challenges through strategic recruiting and innovative revenue share models.

Core Component 3: Focus on Agent Success

Fathom's mission underscores its dedication to supporting agents. The introduction of new commission plans, such as Fathom Max and Fathom Share, aims to enhance agent recruitment and retention. The company's gross profit percentage for its brokerage business improved to 5.7% in Q3 2024 from 5.1% in Q3 2023, indicating improved profitability and operational efficiency. Additionally, Fathom's ancillary businesses saw a 44% increase in revenue, largely due to enhanced performance in mortgage and title services.

Fathom's mission statement not only defines its operational ethos but also reflects its strategic initiatives aimed at fostering agent success, leveraging technology, and providing comprehensive services to navigate the evolving real estate landscape. The company's ability to adapt to market conditions while maintaining its core mission positions it for future growth and resilience.

Vision Statement of Fathom Holdings Inc. (FTHM)

Vision Statement Overview

The vision of Fathom Holdings Inc. (FTHM) as of 2024 focuses on transforming real estate services through technology and innovative solutions, aiming to create a seamless experience for agents and clients alike. Key components of the vision statement include:

• Empowering Agents: Fathom is committed to providing agents with the tools and resources they need to succeed.
• Technological Integration: Leveraging technology to enhance service delivery and operational efficiency.
• Market Expansion: Aiming for growth in key markets through strategic acquisitions and partnerships.

Empowering Agents

Fathom Holdings places a strong emphasis on empowering its agents by providing comprehensive support and competitive commission structures. In 2024, the company introduced two new commission plans: Fathom Max and Fathom Share, designed to enhance agent recruitment and retention. This initiative reflects Fathom's goal of achieving a 25% annual growth rate in agent licenses, which increased by 9% to approximately 12,383 agents as of September 30, 2024.

Technological Integration

Fathom's vision includes a commitment to leveraging technology in its operations. The company utilizes a proprietary cloud-based platform, intelliAgent, which integrates various services including residential brokerage, mortgage, and title offerings. This technological framework is crucial for enhancing service delivery and operational efficiency. In the third quarter of 2024, Fathom reported total revenue of $83.7 million, reflecting a 10% decrease compared to the previous year, primarily due to fewer transactions.

Market Expansion

Strategic acquisitions are central to Fathom's vision for market expansion. On November 1, 2024, Fathom acquired My Home Group, adding over 2,200 agents to its network, thus strengthening its presence in Arizona and Washington. This acquisition is part of a broader strategy to enhance the company's footprint in growing markets and to integrate additional talent and resources into Fathom's operations.

Commitment to Innovation

Fathom's vision is also characterized by a strong commitment to innovation. The introduction of the new revenue share models aims to optimize profitability and cash flow, ensuring that the company remains competitive in a challenging real estate market. Additionally, the company reported an Adjusted EBITDA loss of $1.4 million for Q3 2024, compared to a loss of $0.3 million in Q3 2023, highlighting the ongoing investment in growth strategies despite current financial challenges.

Core Values of Fathom Holdings Inc. (FTHM)

Integrity

Integrity is fundamental to Fathom Holdings Inc., underpinning all company operations and interactions. The company emphasizes ethical practices and transparency in every facet of its business.

Fathom has demonstrated its commitment to integrity through its adherence to compliance regulations and its proactive approach in addressing legal matters. For example, in September 2024, Fathom Realty reached a nationwide settlement regarding claims related to Burnett v. The National Association of Realtors, paying a total of $2.95 million over multiple years to resolve the issue. This action reflects the company's commitment to ethical standards and accountability.

Innovation

Innovation drives Fathom's growth strategy, focusing on delivering cutting-edge services and technology solutions to its agents and clients. The introduction of new commission plans, such as Fathom Max and Fathom Share in August 2024, exemplifies this core value.

Fathom's proprietary cloud-based software, intelliAgent, enhances operational efficiency and service delivery. As of September 30, 2024, the company's real estate agent network grew by 9%, reaching approximately 12,383 agent licenses, showcasing the effectiveness of its innovative approaches in agent recruitment.

Collaboration

Collaboration is at the heart of Fathom's operational ethos, fostering teamwork among employees, agents, and partners to achieve common goals. The recent acquisition of My Home Group, which added over 2,200 agents, is a strategic move aimed at enhancing collaborative efforts across regions.

Fathom actively promotes a culture of collaboration through its integrated service offerings, which combine residential brokerage, mortgage, title, and SaaS services. This holistic approach not only improves service delivery but also strengthens relationships with agents and clients alike.

Service Excellence

Fathom is dedicated to providing exceptional service to its agents and clients. By implementing new revenue share models and support structures, the company aims to enhance agent satisfaction and performance.

In the third quarter of 2024, Fathom completed 9,331 transactions, despite a decrease compared to the previous year. The company is focused on returning to growth by improving service offerings and agent support.

Community Engagement

Community engagement is a vital component of Fathom's values, reflecting its commitment to social responsibility. The company actively participates in local initiatives and supports its agents in community involvement.

Fathom's ongoing efforts to foster community relationships are crucial as it expands its footprint, particularly following the acquisition of My Home Group, which enhances its presence in Arizona and Washington.

Updated on 16 Nov 2024

Resources:

1. Fathom Holdings Inc. (FTHM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Fathom Holdings Inc. (FTHM)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Fathom Holdings Inc. (FTHM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.