Stars Align For Fathom To Outsource Data Services To Constellation1

Key Takeaways:

– Fathom Holdings has hired Constellation1 as its primary data partner to outsource its use of industry data.
– The data partnership will cover Fathom Holdings’ operations including residential sales, mortgage, title, insurance, and transaction software.
– The partnership with Constellation1 will improve Fathom Holdings’ ability to leverage industry data for its products and strategic direction.
– Data is becoming crucial in the real estate industry, supporting AI initiatives and understanding consumers.
– Fathom Holdings compared its data processes with Constellation1 and found that the latter had superior data richness, saturation, update frequencies, and update times.
– Fathom Holdings posted a net loss in Q3 2023 but saw growth in its agent network.
– Constellation1 has previously partnered with luxury brokerage Engel & Völkers Americas and New York City-based brokerage SERHANT.
– Constellation1 is excited to work with Fathom Holdings and supports its continued growth.

inman:

Fathom Holdings (Fathom) has hired Constellation1 as its primary data partner with the intent of outsourcing its widespread use of industry data.

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Fathom Holdings (Fathom) has hired Constellation1 as its primary data partner, a Feb. 6 press release said, with the intent of outsourcing its widespread use of industry data.

The data partnership will spread across the entirety of the NASDAQ-traded company’s operations, which, along with its residential sales arm, Fathom Realty, includes services in mortgage, title, insurance and data aggregation, and transaction software. The company believes the Constellation1 hire will improve its ability to leverage the critical industry data that powers its products and strategic direction, as well as “simplify MLS management and build long-term data quality and reliability,” the release said.

Data is becoming the currency of productivity in the real estate industry. From its use in supporting AI initiatives to how it helps better understand the consumer, finding ways to extract value from information has become a compelling new business need for brokerages.

“In seeking a provider that could take over data management, we conducted a thorough analysis comparing our data aggregation and normalization processes to that of Constellation1 – field by field,” said Marco Fregenal, CEO of Fathom Holdings, in a statement. “Constellation1’s foundation in data services and nearly three decades of experience in managing comprehensive data services, MLS relationships and complex compliance requirements were the deciding factors.”

Fregenal said his team found more reasons to outsource the work by comparing its new partner’s data richness, data saturation, update frequencies and update times with its own.

For Q3 2023, parent company Fathom Holdings Inc. posted a $5.5 million third-quarter net loss and a 16 percent decline in revenue from a year ago, to $93.5 million. That’s an improvement from the $6 million net loss the company posted in Q3 2022, but up only slightly from a $4.3 million net loss in Q2 2023. While Fathom Realty’s Q3 transactions were down 15 percent from a year ago, to 10,303, that was significantly less than an industry-wide decline of 20 percent, Fathom noted on its November earnings call.

Fathom said its flat fee commission split model is helping it attract agents, growing its agent network by 13 percent from a year ago to 11,333 agents as of Sept. 30.

Constellation1 partnered with luxury brokerage Engel & Völkers Americas in April last year to provide website development services across North America. In August, it signed New York City-based brokerage, SERHANT.

Constellation1 is “thrilled to be working with the team at Fathom,” according to President Brant Morwald.

“This partnership reinforces the investments we’ve dedicated to our data services business — cloud infrastructure, serverless architecture, data normalization — and the level of support Constellation1 dedicates to its customers,” Morwald said. “We look forward to supporting Fathom’s continued growth.”

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Property Chomp's Take:

Fathom Holdings has recently announced its partnership with Constellation1, a leading data provider in the real estate industry. This move is aimed at outsourcing Fathom's extensive use of industry data, with the goal of improving its products and strategic direction.

The partnership will cover all operations of Fathom Holdings, including its residential sales arm, Fathom Realty, as well as its mortgage, title, insurance, data aggregation, and transaction software services. By hiring Constellation1 as its primary data partner, Fathom believes it can simplify MLS management and enhance the quality and reliability of its data.

In today's real estate industry, data has become a valuable currency for productivity. From supporting AI initiatives to understanding consumer behavior, brokerages are increasingly looking for ways to extract value from information. Fathom Holdings recognized the need for a provider that could handle data management efficiently and conducted a thorough analysis before choosing Constellation1. The company's expertise in data services, MLS relationships, and compliance requirements were crucial factors in the decision-making process.

Fathom Holdings reported a net loss of $5.5 million in the third quarter of 2023, along with a 16 percent decline in revenue compared to the previous year. However, the company's flat fee commission split model has helped attract agents, resulting in a 13 percent growth in its agent network. Despite the challenging market conditions, Fathom Realty's transactions only decreased by 15 percent, outperforming the industry-wide decline of 20 percent.

Constellation1 has established itself as a reliable partner in the real estate industry, having previously partnered with luxury brokerage Engel & Völkers Americas and New York City-based brokerage SERHANT. The company's president, Brant Morwald, expressed excitement about working with Fathom Holdings and highlighted the investments made in data services, cloud infrastructure, and data normalization.

The partnership between Fathom Holdings and Constellation1 reflects the growing importance of data in the real estate industry. By leveraging the expertise and resources of a dedicated data partner, Fathom aims to strengthen its position in the market and support its continued growth.

In conclusion, Fathom Holdings' decision to outsource its data services to Constellation1 demonstrates the company's commitment to leveraging industry data effectively. By partnering with a trusted data provider, Fathom aims to improve its products, simplify MLS management, and enhance the quality and reliability of its data. This move reflects the increasing importance of data in the real estate industry and highlights Fathom's dedication to staying ahead of the curve.

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