Q3 2018 Quarterly Report

Company News|3–4 MIN READ

Q3 2018 Quarterly Report

by Clint Fiore

It’s time for a quarterly update on our company.

Q3 2018 (July – September) highlights:

  • Pleased with our financial performance despite no new deals closing. Although our revenue numbers were a little down this quarter versus our last two quarters, we managed for the first time ever to make money with a profitable quarter even though no deals closed. This was historic. We brought in over 200K in revenue this quarter largely due to A) a large earnout on a previous deal we brokered generating a good second fee B) continued strong performance by our Bookkeeping division and C) a surge in business Appraisal work. We are very pleased to have done as well as we did, and feel like our business is turning a corner with robustness and its ability to not be as deal-to-deal dependent on its cash needs.
  • Made lots of Buyer matches! A major push of Q2 was getting more engagements (companies we represent) signed up with us. We succeeded in that mission, then in Q3 we needed to take the next logical step and make Buyer matches for them. We are pleased to announce we ended the quarter with five deals under contract, more than we’ve ever had at once, which makes us believe we will have very strong round of closings in Q4 and into Q1 2019.
  • Important hire made. We are pleased to announce that near the end of this quarter, we hired our first full-time, in-house Marketer, Michael Ryder at our Kerrville Headquarters. Michael moved from Kerrville to Houston for the last few years, and we were delighted to help move him back to the community where he and his family feel most at home. Michael brings extensive experience to the team in videography and content marketing, and you can expect drastic improvements to our company’s video strategy, social media, and storytelling with him on board.

 

Now let’s jump into some stats and charts!

Financial Results:

As mentioned above, although we didn’t close a deal this quarter, we still brought in an impressive $215,882 in revenue, and absolutely crushed Q3 of 2017. At the end of Q3 we are already 25% higher in revenue than we were all four quarters of 2017.

Here’s a look at our cumulative transaction volume over time. We are now well above $15M and $20M may be within reach within the next few months based on our contracts for businesses we are receiving.

 

Here’s a Pie Chart showing Q3’s revenue stream mix. As you can see brokerage fees continued to be our top income stream, but both appraisals and bookkeeping had solid contributions to our revenue mix.

Other Interesting Stats

Our VIP e-mail subscriber count increased this quarter from 1242 to 1276. This is our captive list of profiled buyers and referral sources, which is where about half of our buyers come from. We continue to enjoy an incredible 32% open rate on our VIP blast e-mail (Industry normal is 12%) by not over-emailing and sending quality deals out first to the VIP’s, then to the marketplaces.

Q3 2018 bookkeeping revenue held steady and was  20% ahead of the same period last year with previous ownership – which continues to be a very important data point we are keeping our eye on our first year in this business.

As a company, we worked like crazy this month communicating with our clients – sending out 889 unique e-mails, having 725 phone conversations, and 60 client meetings in Q3.

 

Team

As mentioned above we added our Marketer, Michael, to the mix, but also lost an Inside Sales person, so our head count remained the same.

Total Team Members: 12

  • Producers: 2
  • Financial Analyst/Appraiser: 1
  • Executive Administrator: 1
  • HQ Operations: 1
  • Marketer: 1
  • Bookkeepers: 4
  • Independent Affiliates: 2

 

Looking Ahead

Q4 will be all about closing some deals, and setting ourselves up for success in 2019 with some re-vamps to our marketing and service offerings- as well as potentially adding another Producer or Salesperson to the mix on the Brokerage.

October 23rd we will have our 2nd annual Hill Country Pitch Day (A Shark-Tank-Like event we’re hosting) and we’re presently looking for teams that want to pitch their business ideas to a room full of millionaires.

 

End of Report

This is the 3rd quarter we’ve done this and hope you find it useful and our transparency refreshing for a small private company. If you have any questions about it or have anything you’d like to see included in the next report, feel free to e-mail your suggestions to [email protected]

Published November 16, 2018

Topics: Company News

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