Andy Florance: Sure. I don’t know, there’s probably 80 portals operating in Europe with a market cap very roughly, because some are private, some are private, $30 billion-plus. Some of them trade extremely high multiples, some of them trade at lower multiples. It’s a very fragmented market. And I do believe I think there’s two different camps. There’s some camps that feel that technology does not play a meaningful role in the digitization of real estate. And there’s some people that think that technology will play a big role in the digitization of real estate. We fall in the camp of thinking that technology is important, and that having — and that scale, there’ll be greater scale in individual countries over time. And that fundamentally what these companies are doing is very similar.
They’re basically putting placards, maps, SEO strategy, SEM strategy, branding strategy. They’re serving up digital twins, they’re serving up videos. It’s all very similar. And there is the opportunity to differentiate one brand from another with technology. And so believe there will be significant consolidation. And there will be a little bit of a musical chairs occurring, and that there’ll be winners and losers in it. And we want to keep a careful eye on it. And I just would say that it reminds me very much of the United States maybe 10 years ago, before a lot of the consolidation occurred. So, I think it’s an exciting opportunity. Again, the scale of the opportunity both in the revenue potential in the $10 billion to $20 billion range, and the market caps in the $30 billion-plus, it’s great to have a seat at the table.
And we believe that our technology is competitively advantaged in the market. And so, we’re operating on that premise.
Ryan Tomasello: And as a follow-up to just the residential opportunity in the U.S., regarding the commission lawsuits, you’ve talked about the potential outcomes there that could pose a risk to the legacy portals focused on buyer, agent, region. But from the perspective of Homes.com, is there an opportunity where that brand could more directly benefit from structural changes there over time? Would unbundling commissions help unlock the under-monetized home advertising TAM that you’ve spoken about in the U.S.?
Andy Florance: I think we can succeed, regardless of what the outcome is in those cases, but I think it would likely, if the plaintiffs prevail, it will likely create rapidly changing conditions that might favor a company like Homes.com, which is not focused on monetizing buyer agent leads. And as things get turned upside down, if you’re not in the blast radius of that change, you’re much better off to compete the next day. So, I think that’s where it really matters.
Ryan Tomasello: Thanks for taking the questions.
Operator: Our next question comes from Stephen Sheldon with William Blair. Please go ahead.
Stephen Sheldon: Hey, thanks for taking my questions. So, I wanted to dig on resi spend a little bit more sounds like you’re committed to continue spending on Homes.com. So, just kind of curious at a high level, more qualitatively how the areas of spend could change as we head into 2024. So, when do you think brand marketing spend for Homes.com could pick up? Could the budget for that be covered from reduced spend on SEM this year, reallocations from brand marketing on other assets. And then, on the content side, will you be building out different content next year versus a lot of a neighborhood and community content been building up over the last year or so. Just curious where your areas of investments might be changing?
Andy Florance: Sure, on the content side, we will be continuing to build out and evolve neighborhood content well into 2024. We will be initiating more general blog content, part content, more school content. So, it’ll be a shifting mix with some of the same in the first-half of the year and then some evolutions in the year out. In terms of the mix of what is on branding versus what is on SEM versus what is on content that will absolutely shift from quarter-to-quarter. Clearly, we have to build the unaided brand awareness. So, we’ve got a great site, we’ve got some great traffic, we have some great return visitors, we feel very strong, we feel very confident about our roadmap going forward. But you have to have that unaided awareness number grow. So, there will be some shifting and changes in what we’re doing. But we have not done, we certainly have not done our 2024 budgets, we can’t really comment specifically.
Stephen Sheldon: Great, thank you.
Andy Florance: And we can get your copy of that William Blair report if you want.
Stephen Sheldon: Sounds good.
Operator: We’ll take our next question from John Campbell with Stephens Inc.
John Campbell: Hi, guys, good evening. Congrats on the Homes.com traffic gains, and depending OnTheMarket deal, those are pretty exciting developments. I’ve got just — sure, I’ve got two questions that follow-up to, two other questions you guys already received. But first one, though is the resi investment spend. If you can maybe just kind of put us, just pinpoint this just for now. But I’m curious about what the kind of breakout or the mix of spend looks like today for content versus marketing or software?
Andy Florance: I can give you a directional marketing is going to be the top category. Content generation will be the second and technology would be the third. But that’s probably as much information and I’ll probably give on the components for now, John.
John Campbell: Okay, that’s helpful.
Andy Florance: Yes, they’re all pretty big.
John Campbell: Okay. And then, on the marketing side, I’m hearing you correctly, it sounds like the majority of that’s probably SEM, performance marketing this year, and then the softer brand side the TV, radio, print, all that’s going to be what essentially ramped into next year?
Andy Florance: It’s a combination of a number of things for marketing. So, we’re doing a lot of industry marketing as well. So, it’s a mix and but yes, moving into next year, there will be more brand development, which will be important. So, you will see a mix of the marketing change as we go forward.
John Campbell: Okay, that’s helpful. And then, the other question on the resi strategy. I mean, clearly it seems to me that the chess pieces are kind of put in place where you would benefit from, the kind of the happenings or potential ripple effects from the Commission suits. So, Andy I’m curious if you can — yes, exactly. So, if you could maybe talk to how you envision, particularly how you envision excuse me Ten-X kind of fitting into the mix, it seems like it might have a place in helping field offers or organized offers or maybe even serving as that final kind of cash register in the late stages of the transaction?
Andy Florance: Sure. I mean, I think the best, I mean we are very focused right now. We’re working very hard on many, many fronts on building out the site and our monetization strategy, our brand development strategy, this quarter, next quarter, 2024. Ten-X will not enter into the residential mix in the next 12 to 18 months, but I wouldn’t say that it won’t ever enter into the mix. When various players moved into asset heavy participation and basically, I buying, it struck me that there’s an asset light version of that where it’s more like a Ten-X and less actually putting on your balance sheet, but facilitating transactions. Certainly, there’s inefficiencies in the market when 20 people show up to bid on an asset and it’s not digitized.
