Fathom Holdings Reports Fourth Quarter and Full Year 2022 Results.

CARY, N.C: Fathom Holdings Inc. (Nasdaq: FTHM) ("Fathom" or the "Company"), a national, technology-driven, end-to-end real estate services platform integrating residential brokerage, mortgage, title, insurance, and SaaS offerings for brokerages and agents, today reported financial results for the fourth quarter and full year ended December 31, 2022.

"Fathom delivered solid results in year-over-year revenue growth, agent growth, and transaction growth, and despite the current difficult market conditions, we remain optimistic about the year ahead. Our results validate our belief that our model offers the greatest value to agents in all market conditions," said Fathom CEO Joshua Harley. "Even with today's economic uncertainty and subdued real estate market conditions, we believe that Fathom has a long and positive runway ahead and we expect to turn the corner towards profitable growth in the coming quarters while starting to really show the operating leverage in our business. We remain focused on reaching total company Adjusted EBITDA breakeven in the second quarter of 2023 and generating positive cash flow in the third quarter of 2023."

"We continue to maintain a strong balance sheet, that should facilitate our growing the business and executing our strategy through profitability," stated Fathom President and CFO Marco Fregenal. "As of December 31, 2022, we had reduced expenses by approximately $3.0 million per quarter. We should see the full benefit of these reductions in the first quarter of 2023. It is important to note that we believe these cost reductions were made without sacrificing our ability to continue growing our business. These reductions are far ahead of our initial plan to reduce expenses by $1.5 million per quarter."

"We believe that these cost-reduction initiatives, combined with the increase in agent transaction fees that became effective in January of this year, have positioned our business for profitable growth and we remain on track to reach Adjusted EBITDA breakeven in the second quarter of 2023," added Harley

Fourth Quarter 2022 Financial Results

Total revenue decreased 12.7% for the 2022 fourth quarter to $83.4 million, from $95.5 million for 2021's fourth quarter. Fathom completed approximately 9,250 real estate transactions for the 2022 fourth quarter, a decrease of 14% from the 2021 fourth quarter. Fathom's real estate agent network grew 28% to approximately 10,370 agents at December 31, 2022, up from approximately...