Purplebricks, a flat-fee brokerage, doubled its revenue for the fiscal year 2018 ending late April. The UK-based brokerage is part of a recent movement among new brokerages to charge a flat-fee for their services, as opposed to a varying commission.
Purplebricks began their expansion into the U.S. late last year in the Los Angeles market. Since then, its California presence has expanded into Sacramento, Fresno, and San Diego. As of April, the brokerage launched in New York as well.
- Purplebricks’ group revenue more than doubled from $61.8 to $123.9 million for the fiscal year 2018 ending late April
- Purplebricks charges U.S. sellers a flat-fee of $3,200 for a full-service agency
- The brokerage moved up its New York launch after a $177 million equity investment from German media giant Axel Springer
Group revenue for the fiscal year 2018 ending in late April was $123.9 million, a 101 percent increase from $61.8 million year-over-year, the U.K.-based company reported Thursday. U.S. revenue accounted for $2.6 million.
Purplebricks said it continues to recruit agents in the U.S. Its footprint in California has expanded to Sacramento, Fresno and San Diego. The company is also in the New York market and, in June, launched in Arizona and Nevada. The company is also entering Canada with its recent $38 million acquisition of DuProprio/ComFree, a “commission-free” real estate company.
“Market share growth is a key objective within the U.S.,” CFO James Davies said on the earnings call.
The brokerage just launched in New York in April, arguing against consumers paying a 6 percent fee to sell their home. Purplebricks charges sellers in the U.S. a flat $3,200 fee. It moved up the New York launch after a $177 million equity investment from German media giant Axel Springer.
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