CARY, N.C. - Fathom Holdings Inc. (NASDAQ:FTHM), a technology-driven real estate services company, has announced the promotion of Joanne Zach to the position of Chief Financial Officer (CFO). Zach, who has been with the company since February 2021 as Senior Vice President of Finance, steps into her new role with over 25 years of diverse finance experience.
During her tenure as Senior Vice President, Zach worked closely with CEO Marco Fregenal, participating in strategic planning and financial decisions. This collaboration has provided her with a comprehensive understanding of Fathom's financial strategy and operational goals. With Zach's promotion, Fregenal will focus on his responsibilities as CEO.
Zach's background includes significant roles in initial public offerings (IPOs) and capital raising efforts. She began her career as an auditor at Arthur Andersen and has since held senior finance leadership positions in various industries, from life sciences to manufacturing. Zach is a Certified Public Accountant (CPA) and holds a bachelor's degree in accounting from Fairfield University.
Fregenal expressed confidence in Zach's abilities, citing her strategic acumen and commitment to the company's growth. Zach also shared her enthusiasm for the new role, emphasizing her dedication to enhancing Fathom's financial strategies and leveraging technology for growth and value creation.
Fathom Holdings operates a national real estate services platform that includes residential brokerage, mortgage, title, and Software (ETR:SOWGn) as a Service (SaaS) offerings, utilizing its proprietary cloud-based software, intelliAgent. The company's portfolio includes Fathom Realty, Encompass Lending, intelliAgent, LiveBy, Real Results, and Verus Title.
This announcement is based on a press release statement and contains forward-looking statements, which are subject to risks and uncertainties. Fathom Holdings has outlined potential risks in its most recent Form 10-K filed with the SEC, acknowledging factors such as economic conditions and litigation risks that may affect its business. The company does not intend to update these statements for future revisions or changes post-release.
In other recent news, Fathom Holdings has made several significant developments. The company has acquired Arizona-based brokerage My Home Group, expanding its agent network to over 14,500. The acquisition enhances Fathom's market position in Arizona, particularly in the Phoenix area. Furthermore, Fathom reported a decrease in total revenue for a recent quarter, despite a 12% growth in its real estate agent network and significant expansion in its mortgage business. The company also secured $5 million in funding through the issuance of senior secured convertible promissory notes.
Fathom has made notable changes to its executive team, with Monica Schroeder appointed as the new President of Verus Title, and Penelope Vockel promoted to Chief Operating Officer. Additionally, Fathom expanded Verus Title's operations into Rhode Island, increasing its footprint to 29 states.
In legal developments, Fathom agreed to pay $2.95 million to settle a lawsuit involving the National Association of Realtors. The company maintains that this settlement is not an admission of liability or wrongdoing. On the strategic front, Fathom announced a significant amendment to its 2019 Omnibus Stock Incentive Plan, increasing the share reserve by 1.6 million shares. The company also plans to reassess financial guidance in Q4 2024 due to new revenue share models.
InvestingPro Insights
As Fathom Holdings Inc. (NASDAQ:FTHM) promotes Joanne Zach to CFO, investors may find additional context from recent financial data and expert insights. According to InvestingPro, Fathom's market capitalization stands at $53.15 million, reflecting its current position in the real estate services sector.
The company's revenue for the last twelve months as of Q2 2023 was $327.31 million, with a revenue growth rate of -12.09% over the same period. This decline in revenue aligns with one of the InvestingPro Tips, which notes that Fathom is "quickly burning through cash." This financial metric underscores the importance of Zach's role in managing the company's finances and potentially reversing this trend.
Another relevant InvestingPro Tip indicates that Fathom "suffers from weak gross profit margins." Indeed, the data shows a gross profit margin of 8.95% for the last twelve months as of Q2 2023. This relatively low margin suggests that improving operational efficiency could be a key focus for the new CFO as she works to enhance Fathom's financial performance.
Despite these challenges, it's worth noting that Fathom's stock has shown a "strong return over the last three months," with a 24.63% price total return. This recent positive momentum could provide Zach with a more favorable market environment as she steps into her new role.
For investors seeking a more comprehensive analysis, InvestingPro offers 16 additional tips for Fathom Holdings, providing a deeper understanding of the company's financial health and market position.
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