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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.”
