And it’s a market where the best agents generally gain market share. And so we’re thankful that we’re a company that has historically been focused on the best agents and will continue to be because they’re going to ride out this storm and gain market share through it.
Ryan McKeveny: Got it. Thank you very much.
Operator: We’ll take our next question from Mike Ng with Goldman Sachs.
Michael Ng: Hey, good afternoon. Thank you for the question. Robert, Kalani, it was encouraging to see the cost initiatives and commitment to maintain $900 million of OpEx in 2024 and 2025. I just have two related questions. First, I was just wondering if you could talk a little bit about the confidence level in that $900 million of OpEx. Are there other areas where you can continue to cut if needed to fund inflation or respond to competition? And then second, I can appreciate the free cash flow outlook as macro dependent, but is it also your current assumption that free cash flow will be positive in ’24 and ’25? Thank you.
Kalani Reelitz: Hey, Mike, it’s Kalani. Let me start with the first one, I think. We are we are confident that we are going to be exiting this year at a $900 million run rate. Again, I’ve mentioned on a prior question. I think we’ve — importantly, we’ve actioned much of the work to get to $900 million. And we continue to focus on opportunities to drive efficiencies and to make sure that we’re delivering on the best platform with the right cost. I think as we think about ’24, we continue to see opportunities like low-cost labor. We continue to see the opportunities of just operating efficiencies transformation in the way that we service our agents to give them better service but at a more efficient opportunity. And so I think in 2024, we do see — and we have created a path to get to and stay at that $900 million.
And as we see ’25, I think, we continue to look at opportunities around very similar things again, low-cost labor, continue to look at vendor expenses and even look at occupancy and how we can make sure that we are using our offices to bring the best energy through us. And sometimes that means the ability to consolidate. And so we’ll continue to look at those options overall. I think as we think about free cash flow for the next year, I think what you’re seeing is we’re focused on controlling what gets us there, which is cost. And our ability to stay at $900 million, I think the big variable will be revenue for next year and how fast the market recovers. I think as we’ve talked about, the $900 million is both opportunistic to set us up for the future, but it also allows us to be ready for a market that continues to stay at that level.
So we’ll continue to drive that cost and continue to work to free cash flow. But I’m really feeling good about where we are at with our cost base for 2024.
Michael Ng: Great. Thank you, Kalani.
Operator: We’ll take our next question from Lloyd Walmsley with UBS.
Lloyd Walmsley: Thanks. Two questions. First is, appreciate the color on California. Can you share any color on other big markets where you guys over-indexed geographically or maybe by price point, like what are some things going on in those markets or at those price points relative to the broader market that impact the business, positive or negative, I guess, especially with rates doing what they’re doing? And then, second one, just you guys have been, I think, exploring some more asset-light sort of deals and potential for technology licensing, anything moving on that front that could help bring in new high-margin revenue streams without a lot of investment? Anything you could share there would be great.
