Josh Harley, CEO of Fathom Holdings, said the acquisition will allow the company to upgrade and license its IntelliAgent platform and launch a national portal.
Fathom Holdings’ subsidiary, IntelliAgent, has acquired the marketing and technology platform Naberly Solutions for an undisclosed amount. According to an announcement on Wednesday, the takeover will be completed by the end of the first quarter of 2021.
“The acquisition of Naberly’s technology platform should enable us to accelerate our vision of complete technology independence and better business intelligence while working towards increasing revenue per agent and per transaction,” said Joshua Harley, CEO of Fathom. “By integrating the Naberly platform with IntelliAgent, we should be able to further reduce costs over time by eliminating the need to license this technology from third parties.”
“We developed Naberly to provide real estate professionals with the tools to better serve their customers and get more business with world-class technology. We couldn’t be more proud or excited to be adding our platform to IntelliAgent, ”said Jeff LaCroix, Co-Founder of Naberly.
Founded in 2015, Naberly Solutions provides front-end and back-end technology solutions for real estate agents, including IDX websites, lead generation, video marketing for emails and texts, and a year-long CRM (Customer Relationship Management) platform that draws Inman’s attention to retired-house tech guru, Craig Rowe.
“In 2016, Naberly focused on website marketing add-ons and lead capture tactics. It was fine, ”Rowe said in a 2020 tech round-up. “In 2020, it entered the competitive CRM space and did so with a sharp, effective solution. Naberly 2.0 is now a serious CRM player with a powerful, spartan user interface that can meet all of the modern needs of today’s digital agent. “
According to Harley, Naberly Solutions also has extensive API (Application Programming Interface) functions that make it easy to integrate Naberly with the IntelliAgent transaction management platform. In addition, Harley said the acquisition will allow its Fathom Holdings team to set up a national real estate portal.
“As large third-party portals collect and control more and more data from our agents, it becomes increasingly important to regain control,” said Harley Inman in a statement sent via email. “Our agents spend huge sums of money every month buying leads from companies that aren’t interested in them best.”
“It is time to redirect these funds internally and take control of our own destiny. As a technology-based company, Fathom is in a unique position to do just that, ”he added.
Harley said the national portal will be “independent of Fathom Realty” as IntelliAgent is owned by Fathom Holdings, the parent company of Fathom Realty. The CEO said this will allow Fathom and non-Fathom agents to use the IntelliAgent platform and portal, and be sure that IntelliAgent is not accessing their data.
“This allows us to generate buyer and seller leads for Fathom agents in the markets we serve and provide leads for non-Fathom agents in the markets we do not operate in,” he said. “We’re not so naive as to believe that we can compete at the level of portals like Zillow, but neither do we need to to really help our agents stop paying for leads from companies that are actively looking for opportunities to to place this closed. “
“We are a firm believer in privacy … When IntelliAgent begins licensing the platform to brokers, no one outside of that broker will be able to access their data, not even IntelliAgent’s CTO,” he added. “We’ll also make it easy for a broker to take their data with them if they decide to switch to another platform.”
In addition to integrating Naberly into IntelliAgent and launching a national real estate portal, Fathom will license the new and improved platform to smaller brokers, according to Harley.
“As a stock corporation, we are not in a position to provide schedules or prices [on licensing]But I can say that we are actively working towards and building our goals to support the small and medium-sized independent brokers, not the deep pocket franchises, ”he said. “The independent brokers and mom and pop companies are the heart and soul of real estate. We want to help them thrive, not just survive. “
Since Fathom Holding went public in July, the company’s revenue has grown 74 percent year-over-year to $ 55.8 million. This is due to the double digit growth in transactions, the average revenue per transaction, and the number of agents. Fathom’s latest earnings call revealed that the company is getting closer to profitability with its generally accepted accounting principles (GAAP) closing from $ 239,000 in Q3 2019 to $ 184,000 in Q3 2020.
In November, Harley said strategic acquisitions, expanding its proprietary technology, adding additional markets, and increasing the number of agents were keys to increasing transaction volume in order to achieve profitability.
“One of the operational advantages of our model is the ability to break even on a much lower number of transactions than our competition,” he said after the IPO. “With 9,000 transactions per quarter, we were able to reach an adjusted EBITDA breakeven point and at the same time increase sales by over 50 percent.”
“Our strength lies in our technology and our operational efficiency.”
Email Marian McPherson