Annual report pursuant to Section 13 and 15(d)

Segment Reporting

Segment Reporting
12 Months Ended
Dec. 31, 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 share-based compensation expense. In particular, the Company believes the exclusion of non-cash share-based compensation expense related to restricted stock awards 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 years ended December 31, 2023 and 2022 and are set forth in the tables below (amount in thousands). The Company has included the results of the acquisitions from the acquisition date.
Year Ended
December 31,
Revenue 2023 2022
Real Estate Brokerage $ 325,405  $ 390,616 
Mortgage 7,251  9,637 
Technology 3,172  2,709 
Corporate and other services (a) 9,398  10,002 
Total revenue $ 345,226  $ 412,964 
Year Ended
December 31,
Adjusted EBITDA 2023 2022
Real Estate Brokerage $ 5,674  $ 2,025 
Mortgage (1,866) (2,902)
Technology (1,644) (1,440)
Total Segment Adjusted EBITDA 2,164  (2,317)
Corporate and other services (a) (6,275) (9,910)
Total Company Adjusted EBITDA (4,111) (12,227)
Depreciation and amortization (5,947) (5,346)
Other expense (income), net (580) (903)
Income tax expense (benefit) (148) 54 
Stock based compensation (12,994) (9,131)
Other non-cash items and transactions costs (201) (73)
Net loss $ (23,981) $ (27,626)
(a)Transactions between segments are eliminated in consolidation. Such amounts are eliminated through the Corporate and other services line.