Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.3
Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company identifies an operating segment as a component: (i) that engages in business activities from which it may earn revenues and incur expenses; (ii) that has available discrete financial information; and (iii) whose operating results are regularly reviewed by the Chief Operating Decision Maker (“CODM”) to allocate resources and to assess the operating results and financial performance of each operating segment.
Our Chief Operating Decision Maker makes operating decisions and assesses performance based on the services of identified operating segments and has identified three reportable segments: Real Estate Brokerage; Mortgage; and Technology. Through its Real Estate Brokerage segment, the Company provides real estate brokerage services. Through its Mortgage segment, the Company provides residential loan origination and underwriting services. Through its Technology segment, the Company provides SaaS solutions and data mining for third party customers and continues to develop its intelliAgent platform for current use by the Company’s real estate agents.
Revenue and Adjusted EBITDA are the primary measures used by the CODM to evaluate financial performance of the reportable segments and to allocate resources. Adjusted EBITDA represents the revenues of the operating segment less operating expenses directly attributable to the respective operating segment. Adjusted EBITDA is defined by us as net income (loss), excluding other income and expense, costs related to acquisitions, income taxes, depreciation and amortization, and stock-based compensation expense. In particular, the Company believes the exclusion of non-cash stock-based compensation expense related to restricted stock awards, restricted stock units, and stock options and transaction-related costs provides a useful supplemental measure in evaluating the performance of our operations and provides better transparency into our results of operations. The Company’s presentation of Adjusted EBITDA might not be comparable to similar measures used by other companies.
The Company does not allocate assets to its reportable segments as they are not included in the review performed by the CODM for purposes of assessing segment performance and allocating resources. The balance sheet is managed on a consolidated basis and is not used in the context of segment reporting.
Key operating data for the reportable segments for the three and nine months ended September 30, 2023 and 2022 are set forth in the tables below (amounts in thousands):
Revenue
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2023 2022 2023 2022
Real Estate Brokerage $ 88,247  $ 104,977  $ 256,050  $ 311,074 
Mortgage 1,921  2,839  5,404  8,345 
Technology 836  702  2,385  2,003 
Corporate and other services (a) 2,520  2,746  7,315  8,104 
Total revenue $ 93,524  $ 111,264  $ 271,154  $ 329,526 
Adjusted EBITDA
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2023 2022 2023 2022
Real Estate Brokerage $ 1,582  $ 576  $ 5,450  $ 3,311 
Mortgage (293) (406) (1,097) (1,726)
Technology (514) (372) (1,144) (1,091)
Total Segment Adjusted EBITDA 775  (202) 3,209  494 
Corporate and other services (a) (1,028) (2,123) (4,373) (6,801)
Total Company Adjusted EBITDA (253) (2,325) (1,164) (6,307)
Depreciation and amortization 1,599  1,436  4,466  3,839 
Other expense (income), net 106  115  332  804 
Income tax expense 18  —  55  185 
Stock based compensation 3,320  2,123  9,325  6,470 
Other non-cash items and transaction costs 200  13  200  73 
Net loss $ (5,496) $ (6,012) $ (15,542) $ (17,678)
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(a)Transactions between segments are eliminated in consolidation. Such amounts are eliminated through the Corporate and other services line.