Fathom Holdings Inc. (FTHM) Q1 2021 Earnings Call Transcript

Fathom Holdings Inc. (FTHM -14.44%)
Q1 2021 Earnings Call
May 13, 2021, 5:00 p.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good afternoon and welcome to the Fathom Realty Holdings first-quarter 2021 earnings conference call. [Operator instructions] After today's presentation, there will be an opportunity to ask questions. [Operator instructions] Please note, this event is being recorded. I would now like to turn the conference over to Roger Pondel, investor relations for Fathom Holdings.

Please go ahead.

Roger Pondel -- Investor Relations

Thank you, Chad, and welcome everyone to Fathom Holdings 2021 first-quarter conference call. I'm Roger Pondel with PondelWilkinson, Fathom's investor relations firm. It's my pleasure to shortly introduce the company's founder and CEO, Josh Harley; and Fathom's president and chief financial officer, Marco Fregenal. Before I turn things over to Josh, I must remind everyone that today's call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Such statements are subject to numerous conditions, many of which are beyond the company's control, including adding new capabilities, the ability to reduce costs and drive sustainable growth, the type of new revenue-generating opportunities identified by the company, as well as the company's timing of identifying and completing them, and those set forth in the risk factors section of the company's annual report on Form 10-K for the year ended December 31, 2020, as filed with the SEC, and copies of which are available on the SEC's website at www.sec.gov, along with other company filings made with the SEC from time to time. As a result of those forward-looking statements, actual results could differ materially. Fathom undertakes no obligation to update any forward-looking statements after today's call, except as required by law. So please also note that during this call, we will be discussing adjusted EBITDA, which is a non-GAAP financial measure as defined by SEC Regulation G.

A regula -- a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure is included in today's press release, which is now posted on Fathom's website. And with that, it is my pleasure to turn things over to Josh Harley. Josh?

Josh Harley -- Founder and Chief Executive Officer

Thank you, Roger. And of course, thank you to everyone who's on today's call. You know, our entire team really appreciates your support and your faith in us. We're really proud that you're part of our Fathom family.

Now, our first-quarter results once again demonstrate the power of our truly disruptive model. And as you know, we recently acquired a mortgage company, an insurance company, and lead generation and lead nurturing call center, a technology company specializing in big data aggregation and content creation, as well as a technology company building homes search and CRM tools to help us attract more home buyers and sellers, which also helps us attract more agents. To say that we've been busy building Fathom to be an ultimate fighting machine with peer an understatement. On our very first earnings call, in fact, just eight months ago, I made the statement that we now had jet fuel to pour on the fire, and hope that we've proven that we're not just hype.

We're delivering on what we say we will. Add all of that on top of our entry into the title insurance sector back in November, and we now have all the pieces of the puzzle we need to make real and significant change in the real estate space. We may still be small, but we have an elite team and we're growing at a pace that will make people notice. On top of that, our cash position remains strong and we're committed to adding to that position by focusing on operational cash generation.

Now, since going public, we have substantially increased revenue, continued the expansion of our agent network, improved agent retention, entered new geographic markets, and completed strategic acquisitions that further solidify our market position. Plus, with our attractive agent commissions structure, we believe that we are in a unique position to grow even faster in a time where many investors are worried about possible headwinds in the real estate sector. I'd like to remind you, most of these possible headwinds can prove to be tailwinds for Fathom's growth. Now, I'll touch on that a little more later.

But for now, I'll just say that we're killing it. Now, yes, I know I'm a little biased, but I believe our numbers back me up. Now, before I go too much further, there are a lot of names in this call that I've never seen before and there's a lot of people watching us who don't really know our story. And I can't tell you how many times I take a call from a potential investor who doesn't want to hear the story, just wants to simply jump into questions.

But then by the end of the call, after I've shared the story along the way, they tell me that they went from interested to excited about Fathom. And I want to make sure that everyone here knows our story so that you too can be excited and not just interested. Now, to understand Fathom, it's important to understand that like many of our competitors, Fathom Realty is a full-service real -- residential real estate brokerage. However, and I think this is really the key, we leverage an innovative platform as a service model which is powered by a proprietary cloud-based technology called IntelliAgent.

This technology platform allows us to operate virtually while providing our agents with all the major functions that they could otherwise get from a traditional brick and mortar brokerage. Not only does our technology aid our agents, it also allows Fathom to streamline and automate our operations, significantly reduce our costs and personal requirements, and allows us to scale and expand the business into new markets without the excessive spending that usually accompanies growth. Now, with the addition of mortgage, title, insurance, and additional SaaS product offerings, we have the potential to significantly increase our revenue and profitability per transaction. I don't want to just grow our agents' transactions revenue, I also want to grow our profitability.

And I believe that we're on the right path to do just that. Now, it was interesting to see one of the analyst who follows Fathom Holdings compare us in part to Shopify and how we attract real estate agents who act as a small business owners to our low-cost platform, and then generate more revenue from a host of excellent services that allows to better monetize our growing agent base and the transactions they bring with them. I couldn't agree more with this assessment. I'm glad that you said it so that I didn't have to, right? Because I don't want to be one of those companies who claim to be the Uber of this industry or the Shopify of that industry.

It gets a little silly. We are who we are, and we're poised to dominate in our own way. But we're constantly learning and -- by watching others. Now, as a result of our technology platform and streamlined operations, we're able to charge our agents a fraction of what other brokerages charge their agents, putting more money into agents' pockets to help them reinvest in and grow their businesses.

We believe this also gives us a faster path to profitability than many of our competitors who are charging monthly fees and large percentage commissions splits. We're excited about the advantages that IntelliAgent creates, including attracting new agents and helping them become more productive while adding even more robust technology to further reduce costs and improve our operational efficiency. Now, I want to reiterate that last point. Our focus is not just on adding more agents, but also helping our agents become more productive and close more sales.

We don't want to be just another brokerage hanging agents' licenses. We believe that we can accomplish that by providing more training and more technology to help our agents get in front of more buyers and sellers, as well as reduce the amount of time required to manage the transaction process, giving them more time to network themself. Now, as you saw from our acquisitions of Naberly, our home search technology platform; and Real Results, which is a lead generation and lead nurturing company we acquired, in time, we also intend to generate real estate leads for agents, which in turn will help our agents close more sales, help us further increase our revenue and profitability per transaction, attract even more agents who are looking for leads, and allow our current agent to stop spending their hard-earned money with these large portals who are actually their competition. Now, one of the unique things about Fathom that I alluded to earlier is the fact that we offer a small flat fee commission structure to our agents versus a large percentage split that our competition charges their agents.

In fact, that's what most agents focus on when thinking about joining Fathom. Our model allows our agents to make more money and reinvest those dollars into their marketing efforts to grow their sales. And as you can imagine, this makes us highly, highly attractive to real estate agents. In fact, for Q1, we saw 42% growth in agent count, ended the quarter with over 6,000 agents.

One of the beautiful things about our growth is that our cost to acquire one agent during that period is only $920, making our break even on each agent less than we make on just their first sale. And that's a tremendous claim that we're able to make and backup. I also want to point out that the lifetime value of an agent is over $18,000 to us. The ratio of that lifetime value to our cost of agent acquisition is over 20x, and that's just -- by the way, it's just the revenue that's generated on the real estate side of our business.

It doesn't take into account the revenue from our mortgage, our title, and insurance companies, or potential revenue from the lead that we can generate for our agents. Now, by the way, we expect that our cost of agent acquisition may increase as we devote additional resources investments to help drive our growth. But again, you know, at 20 times LTV to CAC, I think we've got plenty of room to work with. We often hear our agents say that they joined Fathom to earn more commission, but they stay for the culture.

And while I don't want to make too much of our Glassdoor rating, it does validate this feedback. Our incredibly high Glassdoor rating of 4.8 puts us at the very top of all large residential real estate brokerages. Although this is just one example that shines a light on a culture of service, it also pu -- I'm also proud that we have one of the lowest agent attrition rates in the industry. You know, Glassdoor is nice, but if you want a true representation of whether agents are happy? Our agent attrition rate is the best indicator.

And to that point, not only are we growing our agent base at a faster pace than ever before, I'm also extremely proud that our agent retention of higher producing agents improved greatly between 2019 and 2020. In fact, agents who closed less than one sale per year make up over 75% of our agent attrition, with only 1% of the agents who leave right off our agent attrition coming from agents who closed 20 sales per year. So it's tiny, very tiny. During our IPO, we talked about acquiring a mortgage company, title company, and insurance companies.

We accomplished that and then some, and we did it in just nine and a half months. These are not simple joint ventures like some real estate companies are structured. These are four companies where we control the quality, recognize the full revenue, and can build innovations into these companies to our technology to begin disrupting those [Inaudible] as well. And as you can probably hear my voice, I'm stoked.

I'm even more excited today than I've ever been. And I hope you are too. Now, I understand the real estate market is crazy right now and a few people have talked about a possible housing bubble. But most experts effectively demonstrate that this market is different, and we personally do not expect to see a bubble.

With that said, we do believe that crazy markets are to our advantage. In fact, I want to spend a minute on this point because I think it's more important than most people understand. I know I briefly touched on this in the beginning, but I can't stress this enough. While other real estate companies may begin to see strong headwinds as home prices rise, mortgage rates rise, and housing remains in low supply, I believe strongly that Fathom could benefit significantly.

You see, there's only two ways for an agent to make more money, increase their revenue by selling more homes or decrease their costs. And of course, the biggest cost of an agent is usually the brokerage fees and splits. In a market where it's hard to find homes to sell or buy, agents should be attracted to Fathom to make up for any lost income by decreasing the fees they pay. In fact, if an agent closes 20% fewer homes due to market conditions but moves over to Fathom from a brokerage who's charging them 30% split, they will actually earn around 9% more income.

And that sounds like a win to me, and I believe most agents would agree. I mean, do you believe that fact would be exciting for agents and convince them to get off the fence and join Fathom? I know I sure do. And if the market does indeed move in that direction, you can be sure that we're going to be marking that point heavily. We'll be shouting it from every rooftop and focusing even more on growing our agent base.

We should continue to cannibalize the real estate companies with the old traditional commission model at a faster rate. And as our agent base grows, those agents bring more transactions with them. And as we add more transactions, we have more opportunities to capture mortgage, title, and insurance revenue, turning a possible headwind into a tailwind for Fathom. Fathom's ability to attract an ever-increasing number of real estate agents by providing them a greater income potential, along with the technology, training, and support they need to grow their business is even more evident today, even during these unprecedented times.

The fact continues to drive our growth. As I mentioned earlier, for Q1, we slide 42% increase in our agent growth year over year. We also saw 60% transaction growth and 72% revenue growth. Clearly, Fathom is moving in a very positive direction, attracting higher pricing agents and selling more homes in higher-priced markets that we move into, which by the way, should significantly benefit our mortgage, title, and insurance companies, as well as the leads business even more than it benefits our real estate brokerage operation.

Now, speaking of markets, Fathom Realty is now in 29 states and we plan to open several more in the coming months. Encompass Lending, our mortgage company, is operating in 10 states. Dagley Insurance in 34 states. Verus Title in 18 states.

Our title business now includes Texas as of this month, one of the biggest real estate markets we have. Our virtual model and technology platform allows us to launch new markets quickly, efficiently, and for very low costs. Now, I love our technology platform because it also helps us eliminate our reliance on third-party tech providers which reduces our costs significantly while offering more robust tech to our agents to help them really grow their business. IntelliAgent gives us the power to control the full lifecycle of the home buyer and the seller, and gain a greater understanding of our data and how to use it to further improve our offering while generating leads for agents.

Plus, we can now begin to identify potential clients for our mortgage, insurance, and title [Inaudible] long before they're under contract and even before an agent has -- have made an introduction. And right, that's really the holy grail for these types of companies. Now, clearly, we've made a lot of acquisitions in a short period of time. At this point, we have all the puzzle pieces we need.

Now, we need time to put the puzzle together in the most effective way possible to ensure strong capture rates. Now, acquisitions will continue to play an instrumental role in Fathom's growth as we move forward, but we will be focusing our acquisitions on real estate agents, insurance agents, loan officers, and title personnel to help support our vision and grow even faster. This is not a rule of strategy by any means or any strategy imagination. I don't want to play that game, especially when we're able to grow organically and so effectively.

But acquisitions make a lot of sense in opening new markets, take critical mass faster, which also helps growth through name recognition and agent referrals. So while acquisitions are going to continue to play a role, I do want to assure you that we will continue to be good stewards of the money that you entrust us with. We intend to grow strategically and not overpay for growth, nor do we like dilution any more than you do, especially with my own family owning over 50% of Fathom stock. So we take dilution very seriously.

Now, I'm coming to an end, I promise. Some of you may ask about giving guidance. But as you know, newly public companies do not typically give guidance this early after an IPO, especially after making multiple acquisitions which are still being integrated. Therefore, we will not be giving guidance at this time.

However, we are extremely confident in our leadership team, in our vision, and in our ability to execute and feel incredibly optimistic for the future. So let me get off my soapbox and turn the call over to Marco Fregenal, our president and CFO. Marco, it's all yours, brother.

Marco Fregenal -- Chief Financial Officer

Thank you, Josh. I'll start by discussing some of our key financial results for the quarter. Our Q2 revenues grew 72% year over year to $49.6 million, from $28.8 million last year same quarter. The increase resulted from growth in real estate transactions, average revenue per transaction, and the contribution from their recital, which is part of the Fathom family for the full quarter, supported by our ongoing strong residential real estate market and continual rising home prices that we've seen.

As a reminder, our home sales in Q4 and Q1 are seasonally lower during the entire thing compared to the rest of the year. GAAP net loss for the quarter was $3.4 million, or a loss of 20 -- $0.25 per share, compared with a GAAP net loss of $43,000 or break-even per share for the same period last year. Our weighted average outstanding share count increased 35% between the pe -- the two periods, primarily due to the impact of our IPO and acquisition. Adjusted EBITDA loss, a non-GAAP measure, was $2.5 million for the first quarter, versus an adjusted EBITDA profit of $135,000 last year.

G&A expense increased to $6.2 million, compared with $1.8 million last year, due mainly to the complete acquisitions, costs related to being a public company, and an ongoing marketing effort to support our growth. G&A expense is expected to increase going forward for the same reasons as we continue to scale and integrate all the business that we've just acquired. Expenses related to marketing activities increased to $402,000 from 230 -- $230,000 in last year's first quarter, mostly driven by growth in our account talent acquisition team and higher levels of investment in advertising and in PR. We believe these efforts have been very fruitful.

We closed approximately 6,900 real estate transactions this quarter, a 60% increase from the same quarter last year. This increase is a great example of the power of the truly disruptive model that we have. The fact that our transaction growth is higher than the agent growth proves the point that we have made in the past that agents will come to Fathom will close more transactions after they joined Fathom because they invest their savings into their business, and therefore, creating more transactions. Q1 average home prices increased approximately $284,000 from $241,000 thousand Q1 of last year.

As we discussed earlier, our agent network increased to just over 6,000 agents, an increase of 42% from the 4,250 agents a year ago. Our balance sheet remains strong. It bears repeating that we will always be a good steward over your investment in Fathom. Reiterating what Josh has said, we're not believers in growth simply for the sake of growing.

Now, our first quarter was a fantastic quarter. It was actually the best combined showing of our KPIs ever in the history of the company. For the second quarter, we expect to see significant year-over-year revenue growth, primarily as a result of the contributions from the acquired companies. In fact, our financial statements will look very different next quarter as we work to provide you with additional transparency in all the different businesses.

It is important to remember, however, that as I said earlier, the G&A costs will continue to increase as a result of other acquisitions, public company costs, and of course, further investments in our growth. We do believe the future remains extremely bright, especially as we continue to integrate those acquired businesses and identify new opportunities to continue our growth. Now, I'll turn the call back over to Josh and he would -- and then we'll take your questions.

Josh Harley -- Founder and Chief Executive Officer

Thank you, Marco. As you can tell, we're incredibly excited about our prospects. And we've been working hard to deliver on our promises and grow Fathom in an accelerated and yet sustainable fashion for the long term. All right.

This is not a short game. This is a long-term operation and we're excited about it. For those of you who are our shareholders, thank you for your trust and being part of our Fathom family. Now, operator, we're now ready to open up the call to questions.

Questions & Answers:

Operator

Thank you, sir. We will now begin the question-and-answer session. [Operator instructions] And the first question will come from Darren Aftahi with ROTH Capital Partners. Please go ahead.

Dillon Heslin -- ROTH Capital Partners -- Analyst

Hi, this is Dillon on for Darren, thanks for taking my questions. First one, with all the acquisitions that you've been working on and completed, could you talk a little about the timeline for when you expect all these to be integrated into the markets you currently covered? I think you said there's like twe -- you're up to 29?

Marco Fregenal -- Chief Financial Officer

Hey, Dillon, that's a great question. Thank you for asking. It's going to take some time, right? So if you recall, we're now in 29 -- just real estate -- Fathom, the real estate company is in 29 states. And then we are already -- Verus Title is already operational in about four or five states which Fathom is there operating.

So we're rolling out Verus already. We have one quarter of Verus. And we are quickly already implementing Encompass and DII into the other market. So if you think about the rollout, right, it's going to take some time to roll out all these businesses in every state, right? It is going to take some time to do that.

Having said that, we will quickly see results of the rollout, right? So clearly, Q -- Q2, we'll see so -- we'll see an increase in revenue from the -- these businesses as they are existing businesses. And then we'll go ahead and see additional revenue coming in from the integration with that. So think of it as layers to the increase in the financial statement. So the first one is, of course, just aggregating the revenue from all the businesses.

And then the second will be the additional revenue coming in from the integration and the attach rates that we'll see going forward. So it will take some time to roll this out across all the states. And then on top of that, you know, Fathom needs to continue to add another 21 states to our rollout. So this rollout will take different multiple phases, but we already see early signs of great results.

And I think when we show our Q2 numbers, we feel very good about those. And I think we'll begin to be able to show how we are rolling out these acquisitions and how well they integrate with the Fathom Realty division of our company.

Josh Harley -- Founder and Chief Executive Officer

Yeah, one thing I'll add to that, Marco, is the fact that as we roll out our technology more and start fully integrating those tech -- those companies into our technology to our real estate operation, we'll start to see the attach rates and the growth were even faster we believe. So it takes some time, number one, get those markets open. Get the -- you know, get the licenses for those markets. Get them introduced to our agents.

And then once we get in -- you know, integrate the technology, then we'll be able to start capturing leads in other ways as well. So not just purely reliant on our agents to send business over, but also capturing it on our own as well.

Dillon Heslin -- ROTH Capital Partners -- Analyst

Great. Thank you. What is the current cash balance as of today? I mean, post all the acquisitions. And then how much revenue did title amount for in Q1 of the 49.6?

Josh Harley -- Founder and Chief Executive Officer

Marco, I think you're muted.

Marco Fregenal -- Chief Financial Officer

I apologize. Our cash position as we stated on March 31, our financials, is approximately $25 million. And then to some -- actually, almost $26 million with about a $1 million reserved to cash. The Verus percentage of revenue for Q1, it was about $400,000 or so.

Q1, again, is the lowest revenue quarter. So it's about $400,000 in terms of Q1.

Dillon Heslin -- ROTH Capital Partners -- Analyst

Are you willing to share what like cash is in currently?

Marco Fregenal -- Chief Financial Officer

Not at this point.

Dillon Heslin -- ROTH Capital Partners -- Analyst

Gotcha. One more for me and then I'll turn it over. How should we think about some of the add-on businesses going forward in terms of them being a little bit more profitable, and your thought process between slowing that profit down to the bottom line and investing for more growth?

Marco Fregenal -- Chief Financial Officer

That's a great question, and I think each business is a little different, right? So -- and keep in mind, again, that we are going into the two busiest quarters of the -- all right, Q2 and then Q3 being the busiest quarter, right? So -- and so we look at each business in a very different manner. We have to make some investments in the mortgage business. But from mortgage and title, we will see an impact to the bottom lining in probably by Q3. Q2, we're still making some investment.

So probably by Q3, we'll start seeing an impact -- a positive impact in the cash flow of the business from those two businesses. From the IntelliAgent, which is currently delivered by -- we're still evaluating how quickly we're going to grow the business as there is enormous potential for that business as well. And as you know, that's a fast business. It's a recurring revenue businesses.

And we will see how that affects our business. And then from the insurance perspective, the insurance business is a very interesting business because it's also a recurring revenue business. And at this point, we're probably running that business at a break even going forward. But we'll see.

And that's just a matter of controlling the growth of that business. That business can grow significantly for us when we start seeing an attach rate coming in from the Fathom real estate division. But again, I -- from a mortgage and title, we will start seeing a cash flow impact in Q -- Q3.

Josh Harley -- Founder and Chief Executive Officer

Yeah, I want to -- cause -- I know the question you're asking, Dillon. I know we didn't quite give you what you're looking for and I apologize for that. But I will say that, look, our cash position remains really strong and we're committed to actually adding to that position by focusing on the other cash generation. So one thing you'll remember is that this industry is cyclical.

It's seasonal rather. And so, you know, as we go from Q1, which tends to be the lowest, and we start moving to Q2, Q3, and so forth, we're able to generate more revenue and possibly to add to that cash position. So we feel really good about it.

Dillon Heslin -- ROTH Capital Partners -- Analyst

Great, appreciate it, guys. Thank you.

Operator

[Operator instructions]

Josh Harley -- Founder and Chief Executive Officer

You know, Chad, I'm just -- we're so good on our call that there -- no one has question because we just -- we've answered them all ahead of time.

Operator

Thank you, sir. And we do have a question, and it's from Will Hamilton with Manatuck Hill. Please go ahead.

Josh Harley -- Founder and Chief Executive Officer

Yes. Hey, Will.

Will Hamilton -- Manatuck Hill -- Analyst

Hey, guys. Just a question on SG&A. I apologize if I missed this. But can you break down the 6.2 a little bit more in the sense of maybe what was related to the acquisitions versus other growth investments? Didn't look like in EBITDA breakdown that had anything's broken out.

Marco Fregenal -- Chief Financial Officer

Yeah. Hey, Will, good to hear from you. So the -- when you look at the 6.2 mil -- $6.3 million is G&A, $6.2 million, sorry, in G&A, about -- we spent about between $1 million and $1.2 million in acquisitions and related acquisition costs. Some of those costs are legal fees that are actually for the acquisition there that happened in Q2 as well.

So when you look at the total cost in G&A related to -- everything related to acquisitions, it was about $1.2 million. And then you can also see there's an increase in stock compensation also related to -- which is the majority of the increase relates to acquisitions as well for another four -- $500,000 or so. So when you put all that together, you're looking at about $1.6 million between all the costs related to the acquisitions, not only in Q1 but in Q2 -- that closed in Q2, as well all the compensation for stock related to the acquisitions. Having said that, we also invested -- because, as you know, this is a seasonal business, right? And then Q2 and Q3 are the busiest months for us.

We also made investments in staff preparing for that increase in business. We also made investments in staff preparing for the aggregate of having all the other businesses us as part of Fathom. So there are investments made also in staff and then preparing the company for having these multiple divisions so we can benefit from the attach rate as quickly as possible. So the increase in G&A was related to the acquisitions, as well as an increase in staff preparing us for having all these additional businesses, so we can benefit from them as quickly as possible.

Will Hamilton -- Manatuck Hill -- Analyst

OK. That's helpful. So it is like on a go-forward basis, like 4.5 million to 5 million maybe a reasonable -- I know you don't like take guide, but just yet in terms of a real raise?

Marco Fregenal -- Chief Financial Officer

That's a great question. So keep in mind that once we add all the other businesses, they have G&A cost as well, right?

Will Hamilton -- Manatuck Hill -- Analyst

Yeah.

Marco Fregenal -- Chief Financial Officer

And so the number will be larger than that because, you know, we have an insurance business, a mortgage business, the more -- the title business is going to increase as well. So the number will be bigger than that just because we're increasing and adding all those businesses. But you also get the revenue, right? And so there will be a significant revenue added as well that will correlate to the G&A. As a percentage of -- when we look at G&A as a percentage to the revenue that's going to increase in the next two quarters significantly compared to this, the G&A percentage will decrease, right, because you don't have these additional costs related to the acquisition.

But there -- but as a whole, the number will increase because, again, we're adding all these other businesses that have G&A expenses as well. But, again, over time, the G&A percentage will decrease. And again, keep in mind that Q2 and then Q3 have much stronger revenue numbers for us. And I think that's when we start seeing, again, the benefit of having all these businesses, as well as the increase in the attach rate.

And so Josh and I are very excited about how -- by having all the companies that we always wanted to have as part of our family, how this is going to affect the bottom line of the business. And so I think that once we're done with Q2 and Q3, I think everyone will be very pleased about the results.

Will Hamilton -- Manatuck Hill -- Analyst

OK. Thank you.

Marco Fregenal -- Chief Financial Officer

Thank you.

Operator

[Operator instructions] Ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to Josh Harley for any closing remarks.

Josh Harley -- Founder and Chief Executive Officer

Thank you, Chad. I really appreciate it. And of course, thanks to all of you for joining our call today and for your continued support. You know, 2020 was a watershed year for so us.

So Q1 proved that we're just getting started. We're extremely proud of what we've accomplished and we look forward to taking additional actions that will add even more value to our company and then benefit all of our stakeholders. We're excited about the long-term prospects for our company and we anticipate even more growth ahead. Now, with our culture of service and everything that we do at Fathom, we will also and always focus on enhancing value to our agents, and of course, to our shareholders.

So have a wonderful evening and thank you again.

Operator

And thank you, sir. [Operator signoff]

Duration: 35 minutes

Call participants:

Roger Pondel -- Investor Relations

Josh Harley -- Founder and Chief Executive Officer

Marco Fregenal -- Chief Financial Officer

Dillon Heslin -- ROTH Capital Partners -- Analyst

Will Hamilton -- Manatuck Hill -- Analyst

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