Looking back on real estate services stocks' Q4 earnings, we examine this quarter's best and worst performers, including The Real Brokerage (NASDAQ:REAX) and its peers.

Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage.

The 11 real estate services stocks we track reported a weak Q4; on average, revenues beat analyst consensus estimates by 1.6%. while next quarter's revenue guidance was 26.2% below consensus. Stocks have been under pressure as inflation (despite slowing) makes their long-dated profits less valuable, but real estate services stocks held their ground better than others, with share prices down 1.6% on average since the previous earnings results.

The Real Brokerage (NASDAQ:REAX)

Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.

The Real Brokerage reported revenues of $181.3 million, up 88.7% year on year, topping analyst expectations by 12.4%. It was a mixed quarter for the company, with a miss of analysts' earnings estimates. On the other hand, revenue and adjusted EBITDA exceeded expectations.

"Real delivered another record year in 2023, despite a challenging industry backdrop. Our performance both in the quarter and for the full year is a testament to our unique agent value proposition, our scalable technology platform, and our efficient operating model," said Tamir Poleg, Real’s Chairman and Chief Executive Officer.

The Real Brokerage achieved the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is up 53.8% since the results and currently trades at $4.4.

Read our full report on The Real Brokerage here, it's free.

Best Q4: JLL (NYSE:JLL)

Founded in 1999 through the merger of Jones Lang Wootton and LaSalle Partners, JLL (NYSE:JLL) is a company specializing in real estate advisory and investment management services.

JLL reported revenues of $5.88 billion, up 4.9% year on year, outperforming analyst expectations by 1.5%. It was a decent quarter for the company, with revenue and EPS outperforming expectations thanks to better-than-expected results in its Capital Markets segment ($537 million vs estimates of $462 million).

The stock is up 7.4% since the results and currently trades at $198.34.

Is now the time to buy JLL? Access our full analysis of the earnings results here, it's free.

Weakest Q4: Anywhere Real Estate (NYSE:HOUS)

Formerly known as Realogy Holdings, Anywhere Real Estate (NYSE:HOUS) is a residential real estate company with a network of brokerages, franchises, and settlement services.

Anywhere Real Estate reported revenues of $1.25 billion, down 5.5% year on year, falling short of analyst expectations by 2.1%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.

The stock is down 24.7% since the results and currently trades at $5.76.

Read our full analysis of Anywhere Real Estate's results here.

Compass (NYSE:COMP)

Fueled by its mission to replace the "paper-driven, antiquated workflow" of buying a house, Compass (NYSE:COMP) is a digital-first company operating a residential real estate brokerage in the United States.

Compass reported revenues of $1.10 billion, down 1% year on year, falling short of analyst expectations by 3%. It was a mixed quarter for the company, with a miss of analysts' revenue estimates. On the other hand, next quarter's revenue guidance came in higher than Wall Street's estimates.

Compass had the weakest performance against analyst estimates among its peers. The stock is up 10.1% since the results and currently trades at $3.77.

Read our full, actionable report on Compass here, it's free.

Redfin (NASDAQ:RDFN)

Founded by a former medical school student, electrical engineer, and Amazon data engineer, Redfin (NASDAQ:RDFN) is a real estate company offering brokerage services through an online platform.

Redfin reported revenues of $218.1 million, down 54.5% year on year, falling short of analyst expectations by 1%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' revenue estimates.

The stock is down 13.5% since the results and currently trades at $6.19.

Read our full, actionable report on Redfin here, it's free.

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