The Real Brokerage Inc. Announces Third Quarter 2024 Financial Results
The Real Brokerage Inc. (NASDAQ: REAX) released its Q3 2024 financials, showcasing robust growth. Key highlights include a 74% revenue increase to $372.5 million and a 71% rise in gross profit to $32.1 million. The company posted a net loss of $2.6 million, an improvement from a $4.0 million loss in Q3 2023. Adjusted EBITDA surged to $13.3 million from $3.5 million. Operationally, Real completed $14.4 billion in real estate transactions, up 78%, and closed 35,832 transactions, up 76%. The agent count grew by 79% to 21,770. Major product launches include Real Wallet and Leo AI, enhancing agent and client experiences. Despite a 52% increase in operating expenses to $34.6 million, adjusted operating expenses per transaction fell by 16% to $468. The company repurchased 2.7 million shares for $15.1 million and held $32.0 million in cash with no debt.
Real Brokerage Inc. (NASDAQ: REAX) ha pubblicato i risultati finanziari per il terzo trimestre del 2024, evidenziando una crescita robusta. I principali punti salienti includono un aumento del 74% dei ricavi a $372,5 milioni e un aumento del 71% del profitto lordo a $32,1 milioni. L'azienda ha registrato una perdita netta di $2,6 milioni, un miglioramento rispetto a una perdita di $4,0 milioni nel terzo trimestre del 2023. L'EBITDA rettificato è aumentato a $13,3 milioni rispetto ai $3,5 milioni precedenti. Operativamente, Real ha completato transazioni immobiliari per $14,4 miliardi, con un incremento del 78%, e ha chiuso 35.832 transazioni, con un aumento del 76%. Il numero di agenti è cresciuto del 79% raggiungendo 21.770. Tra i principali lanci di prodotti ci sono Real Wallet e Leo AI, che migliorano l'esperienza di agenti e clienti. Nonostante un aumento del 52% delle spese operative a $34,6 milioni, le spese operative rettificate per transazione sono diminuite del 16% a $468. L'azienda ha riacquistato 2,7 milioni di azioni per $15,1 milioni e ha mantenuto $32,0 milioni in contante senza debiti.
Real Brokerage Inc. (NASDAQ: REAX) publicó sus resultados financieros del tercer trimestre de 2024, mostrando un crecimiento robusto. Los puntos destacados incluyen un aumento del 74% en los ingresos a $372,5 millones y un aumento del 71% en la ganancia bruta a $32,1 millones. La compañía reportó una pérdida neta de $2,6 millones, una mejora con respecto a una pérdida de $4,0 millones en el tercer trimestre de 2023. El EBITDA ajustado se disparó a $13,3 millones desde $3,5 millones. Operativamente, Real completó transacciones inmobiliarias por $14,4 mil millones, un aumento del 78%, y cerró 35,832 transacciones, un incremento del 76%. La cantidad de agentes creció un 79% hasta llegar a 21,770. Los lanzamientos de productos más importantes incluyen Real Wallet y Leo AI, mejorando la experiencia de agentes y clientes. A pesar de un aumento del 52% en los gastos operativos a $34,6 millones, los gastos operativos ajustados por transacción cayeron un 16% a $468. La compañía recompró 2,7 millones de acciones por $15,1 millones y tenía $32,0 millones en efectivo sin deudas.
Real Brokerage Inc. (NASDAQ: REAX)가 2024년 3분기 재정 실적을 발표하며 견고한 성장을 보여주었습니다. 주요 하이라이트에는 74%의 매출 증가로 3억 7천 2백 5십만 달러와 71%의 총 이익 증가가 포함되어 있으며 3천 2백 1십만 달러입니다. 회사는 2백 6십만 달러의 순손실을 기록했으며, 이는 2023년 3분기 4백만 달러 손실에서 개선된 수치입니다. 조정 EBITDA는 3백 5십만 달러에서 1억 3천 3백만 달러로 급증했습니다. 운영 측면에서, Real은 1천 4백 4십억 달러의 부동산 거래를 완료하여 78% 증가했으며, 35,832건의 거래를 완료하여 76% 증가했습니다. 에이전트 수는 79% 증가하여 21,770명에 도달했습니다. 주요 제품 출시는 Real Wallet과 Leo AI로, 에이전트와 고객 경험을 향상시킵니다. 운영 비용이 52% 증가하여 3천4백 6십만 달러에 달했음에도 불구하고, 거래당 조정 운영 비용은 16% 감소하여 468달러가 되었습니다. 이 회사는 2백7십만 주를 1천5백1십만 달러에 재구매했으며, 부채 없는 3천2백만 달러의 현금을 보유하고 있습니다.
La Real Brokerage Inc. (NASDAQ: REAX) a publié ses résultats financiers pour le troisième trimestre 2024, mettant en avant une croissance robuste. Les faits saillants comprennent une augmentation des revenus de 74% à 372,5 millions de dollars et une hausse du bénéfice brut de 71% à 32,1 millions de dollars. L'entreprise a enregistré une perte nette de 2,6 millions de dollars, une amélioration par rapport à une perte de 4,0 millions de dollars au troisième trimestre 2023. L'EBITDA ajusté a grimpé à 13,3 millions de dollars contre 3,5 millions de dollars. Opérationnellement, Real a complété des transactions immobilières pour 14,4 milliards de dollars, en hausse de 78%, et a clos 35 832 transactions, soit une augmentation de 76%. Le nombre d'agents a augmenté de 79% pour atteindre 21 770. Les principaux lancements de produits comprennent Real Wallet et Leo AI, améliorant l'expérience des agents et des clients. Malgré une augmentation des dépenses opérationnelles de 52% à 34,6 millions de dollars, les dépenses opérationnelles ajustées par transaction ont diminué de 16% pour atteindre 468 dollars. L'entreprise a racheté 2,7 millions d'actions pour 15,1 millions de dollars et détenait 32,0 millions de dollars en espèces sans dettes.
Die Real Brokerage Inc. (NASDAQ: REAX) hat ihre Finanzzahlen für das 3. Quartal 2024 veröffentlicht und zeigt ein robustes Wachstum. Die wichtigsten Highlights umfassen einen Umsatzanstieg von 74% auf 372,5 Millionen Dollar und einen Anstieg des Bruttoertrags um 71% auf 32,1 Millionen Dollar. Das Unternehmen verzeichnete einen Nettverlust von 2,6 Millionen Dollar, was eine Verbesserung gegenüber einem Verlust von 4,0 Millionen Dollar im 3. Quartal 2023 darstellt. Das bereinigte EBITDA stieg auf 13,3 Millionen Dollar von 3,5 Millionen Dollar. Operativ hat Real Immobiliengeschäfte im Wert von 14,4 Milliarden Dollar abgeschlossen, was einem Anstieg von 78% entspricht, und 35.832 Transaktionen abgeschlossen, was einem Anstieg von 76% entspricht. Die Anzahl der Agenten wuchs um 79% auf 21.770. Zu den wichtigsten Produkteinführungen gehören Real Wallet und Leo AI, die die Erfahrungen für Agenten und Kunden verbessern. Trotz eines Anstiegs der Betriebskosten um 52% auf 34,6 Millionen Dollar fielen die bereinigten Betriebskosten pro Transaktion um 16% auf 468 Dollar. Das Unternehmen hat 2,7 Millionen Aktien für 15,1 Millionen Dollar zurückgekauft und hielt 32,0 Millionen Dollar in bar ohne Schulden.
- Revenue increased by 74% to $372.5 million.
- Gross profit rose by 71% to $32.1 million.
- Adjusted EBITDA increased to $13.3 million from $3.5 million.
- Total value of real estate transactions reached $14.4 billion, up 78%.
- Closed transactions increased by 76% to 35,832.
- Agent count grew by 79% to 21,770.
- Adjusted operating expenses per transaction decreased by 16% to $468.
- Repurchased 2.7 million shares for $15.1 million.
- Held $32.0 million in cash and no debt.
- Net loss of $2.6 million, though improved from $4.0 million.
- Operating expenses increased by 52% to $34.6 million.
- Revenue share expense rose by 47% to $11.7 million.
Insights
The Q3 results demonstrate remarkable growth with
- Transaction value reached
$14.4B , up78% YoY - Agent count grew to 21,770, up
79% YoY - Adjusted EBITDA of
$13.3M vs$3.5M last year - Net loss narrowed to
$2.6M from$4.0M
The company's strong operational efficiency is evident in the
The launch of Real Wallet and Leo AI represents a significant technological advancement in real estate fintech. The integration of instant earnings access, AI-powered assistance and client communication tools creates a comprehensive ecosystem that addresses key pain points in real estate transactions. The Leo CoPilot and Leo for Clients features demonstrate forward-thinking application of AI, potentially transforming agent-client interactions and operational efficiency. These innovations could create substantial competitive advantages in agent retention and productivity.
“Real delivered another exceptional quarter underpinned by industry-leading growth and innovation,” said Tamir Poleg, Real’s Chairman and Chief Executive Officer. “Our technology leadership was on full display at our recent RISE 2024 conference, with the official launch of Real Wallet, our first fintech product, and the announcement of Leo AI for clients. These innovations reflect our ongoing commitment to creating a seamless, technology-first real estate experience that empowers both agents and their clients.”
“Even with current market challenges, Real’s ability to attract high-performing agents highlights the strength of our value proposition,” said Sharran Srivatsaa, President of Real. “Our focus on providing agents with world-class tools, support, and training — evidenced by our preparation for the recent NAR practice changes — ensures they can navigate shifts in the industry and grow their businesses with confidence.”
“Our strong top- and bottom-line performance this quarter reflects a balanced approach of disciplined cost control and strategic investments in high-impact areas,” said Michelle Ressler, Real’s Chief Financial Officer. “We remain focused on executing our value-creation strategy and building on our recent momentum as we prepare for an even stronger 2025.”
Q3 2024 Operational Highlights1
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The total value of completed real estate transactions reached
in the third quarter of 2024, an increase of$14.4 billion 78% from in the third quarter of 2023.$8.1 billion -
The total number of transactions closed was 35,832 in the third quarter of 2024, an increase of
76% from 20,397 in the third quarter of 2023. -
The total number of agents on the platform increased to 21,770 at the end of the third quarter of 2024, an increase of
79% from the third quarter of 2023. As of November 7, 2024, approximately 22,500 agents are now on the Real platform.
Q3 2024 Financial Highlights
-
Revenue rose to
in the third quarter of 2024, an increase of$372.5 million 74% from in the third quarter of 2023.$214.6 million -
Gross profit reached
in the third quarter of 2024, an increase of$32.1 million 71% from in the third quarter of 2023.$18.8 million -
Net loss attributable to owners of the Company was
in the third quarter of 2024, compared to$(2.6) million in the third quarter of 2023.$(4.0) million -
Adjusted EBITDA2 was
in the third quarter of 2024, compared to$13.3 million in the third quarter of 2023.$3.5 million -
Operating expenses, which include General & Administrative, Marketing, and Research and Development expenses, totaled
in the third quarter of 2024, a$34.6 million 52% increase from in the third quarter of 2023.$22.7 million -
Revenue share expense, which is included in Marketing expenses, was
in the third quarter of 2024, a$11.7 million 47% increase compared to in the third quarter of 2023.$7.9 million -
Adjusted operating expenses, which reflect operating expenses less revenue share expense, stock-based compensation, depreciation, expenses related to the settlement of antitrust litigation, and other unique or non-cash expenses, were
in the third quarter of 2024, an increase of$16.8 million 47% from in the third quarter of 2023. Adjusted operating expense per transaction was$11.4 million in the third quarter of 2023, a decline of$468 16% from in the third quarter of 2023.$558 -
Loss per share was
in the third quarter of 2024, compared to a loss per share of$(0.01) in the third quarter of 2023.$(0.02) -
The Company repurchased 2.7 million common shares for
in the third quarter of 2024, pursuant to its normal course issuer bid.$15.1 million -
As of September 30, 2024, Real held cash and cash equivalents of
, consisting of$32.0 million of unrestricted cash and$21.6 million held in investments in financial assets.$10.4 million - Real continues to have no debt.
Business Highlights and Recent Updates
Subsequent to the end of the quarter, in October, Real unveiled an array of innovative products and features at its annual RISE agent conference in
-
Real Wallet – Real announced the official launch of its cutting-edge fintech product. Real Wallet was built specifically for Real agents. Real Wallet allows
U.S. agents to access their earnings instantly, eliminating delays caused by legacy banking systems, and provides financial insights that enable agents to manage their business finances more effectively, while also reinvesting in growth opportunities. Real Wallet is available to select agents in theU.S. andCanada .U.S. agents can open a business checking account with Thread Bank, Member FDIC, featuring a Real-branded debit card, while Canadian agents will be offered a credit line based on their earnings history with Real. Future phases of Real Wallet aim to unify these offerings into a comprehensive financial solution for all business banking needs. Banking services in theU.S. are provided by Thread Bank, Member FDIC, and the Canadian credit line will be offered directly by Real. - Leo CoPilot – The next evolution of Real’s AI-powered assistant, Leo CoPilot acts as an agent's personal command center. It anticipates individual agent needs, streamlines daily tasks, and serves as the primary interface for reZEN, Real’s proprietary agent software platform, enhancing productivity and simplifying business operations.
- Leo for Clients – Designed to transform client-agent interactions, Leo for Clients will enable direct communication between agents and clients through SMS and iMessage. Building on the same concept as Leo CoPilot, Leo for Clients will offer 24/7 access to property information and services through a dedicated phone line for each agent. At launch, clients will be able to interact with Leo for Clients enabling them to receive recommendations for available properties based on their search criteria, access open house information, schedule tours and initiate mortgage applications. This tool streamlines communication, enhances the client experience, and allows agents to focus their time on strategic efforts and relationship building, while maintaining seamless client engagement.
_________________________ |
1All dollar references are in |
2There are references to “Adjusted EBITDA” and “Adjusted Operating Expense” in this press release, which are non-IFRS measures. See accompanying note under the heading “Non-IFRS Measures” for an explanation of the composition of these non-IFRS measures. |
The Company will discuss the third quarter results on a conference call and live webcast today at 8:30 a.m. ET.
Conference Call Details: |
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Date: |
Thursday, November 7, 2024 |
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Time: |
8:30 am ET |
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Dial-in Number: |
North American Toll Free: 888-506-0062 International: 973-528-0011 |
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Access Code: |
345905 |
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Webcast: |
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Replay Information: |
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Replay Number: |
North American Toll Free: 877-481-4010 International: 919-882-2331 |
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Access Code: |
51300 |
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Replay Link: |
Non-IFRS Measures
This news release includes references to “Adjusted EBITDA”, and “Adjusted Operating Expense”, which are non-International Financial Reporting Standards (“IFRS”) financial measures. Non-IFRS measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies.
Adjusted EBITDA is used as an alternative to net income by removing major non-cash items, such as depreciation, amortization, interest, stock-based compensation, current and deferred income tax expenses and other items management considers unique and/or non-operating in nature.
Adjusted Operating Expense is used as an alternative to operating expenses by removing major non-cash items such as stock-based compensation, depreciation, and other unique or non-cash expenses, while retaining ongoing fixed operating expenses and excluding variable cash expenses associated with revenue share.
Adjusted EBITDA and Adjusted Operating Expense have no direct comparable IFRS financial measures. The Company has used or included these non-IFRS measures solely to provide investors with added insight into Real’s financial performance. Readers are cautioned that such non-IFRS measures may not be appropriate for any other purpose. Non-IFRS measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Our Adjusted EBITDA is reconciled to the most comparable IFRS measure for the three months and nine months ended September 30, 2024 and 2023 and is presented in the table below labeled Reconciliation of Total Comprehensive Loss Attributable to Owners of the Company to Adjusted EBITDA. Our Adjusted Operating Expense reconciled to the most comparable IFRS measure is presented for the three months ended September 30, 2024 and on a quarterly basis for the prior two fiscal years in the table below labeled Reconciliation of Operating Expense to Adjusted Operating Expense.
THE REAL BROKERAGE INC. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONS
(Expressed in thousands of Unaudited |
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As of |
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September 30, 2024 |
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December 31, 2023 |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
$ |
21,580 |
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$ |
14,707 |
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Restricted cash |
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27,516 |
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|
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12,948 |
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Funds held in restricted escrow account |
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9,250 |
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|
|
- |
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Investments in financial assets |
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10,398 |
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|
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14,222 |
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Trade receivables |
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17,305 |
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|
|
6,441 |
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Other receivables |
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43 |
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|
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63 |
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Prepaid expenses and deposits |
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2,391 |
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2,132 |
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TOTAL CURRENT ASSETS |
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88,483 |
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50,513 |
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NON-CURRENT ASSETS |
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Intangible assets |
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2,788 |
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3,442 |
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Goodwill |
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8,993 |
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8,993 |
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Property and equipment |
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2,209 |
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|
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1,600 |
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TOTAL NON-CURRENT ASSETS |
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13,990 |
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|
14,035 |
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TOTAL ASSETS |
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102,473 |
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64,548 |
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LIABILITIES AND EQUITY |
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CURRENT LIABILITIES |
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Accounts payable |
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1,133 |
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571 |
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Accrued liabilities |
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30,991 |
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13,374 |
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Customer deposits |
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27,516 |
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12,948 |
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Other payables |
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12,843 |
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302 |
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Warrants outstanding |
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- |
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- |
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TOTAL CURRENT LIABILITIES |
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72,483 |
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27,195 |
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NON-CURRENT LIABILITIES |
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Warrants outstanding |
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- |
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269 |
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TOTAL NON-CURRENT LIABILITIES |
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- |
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269 |
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TOTAL LIABILITIES |
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72,483 |
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27,464 |
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EQUITY |
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EQUITY ATTRIBUTABLE TO OWNERS |
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Share premium |
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67,683 |
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62,567 |
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Stock-based compensation reserves |
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61,255 |
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52,937 |
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Deficit |
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(98,103 |
) |
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(78,205 |
) |
Other reserves |
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195 |
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(167 |
) |
Treasury stock, at cost |
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(1,228 |
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(257 |
) |
EQUITY ATTRIBUTABLE TO OWNERS |
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29,802 |
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36,875 |
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Non-controlling interests |
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188 |
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209 |
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TOTAL EQUITY |
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29,990 |
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37,084 |
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TOTAL LIABILITIES AND EQUITY |
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102,473 |
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64,548 |
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THE REAL BROKERAGE INC. INTERIM CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(Expressed in thousands of Unaudited |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenues |
$ |
372,488 |
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$ |
214,640 |
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$ |
914,009 |
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$ |
507,817 |
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Commissions and other agent-related costs |
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340,359 |
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195,865 |
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829,253 |
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460,475 |
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Gross Profit |
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32,129 |
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18,775 |
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84,756 |
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47,342 |
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General and administrative expenses |
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16,301 |
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9,234 |
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42,452 |
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27,526 |
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Marketing expenses |
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15,261 |
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11,577 |
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43,779 |
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29,527 |
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Research and development expenses |
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3,045 |
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1,931 |
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8,115 |
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5,034 |
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Settlement of litigation |
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— |
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— |
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9,250 |
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— |
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Operating Loss |
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(2,478 |
) |
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(3,967 |
) |
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(18,840 |
) |
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(14,745 |
) |
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Other income |
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151 |
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38 |
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381 |
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106 |
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Finance expenses, net |
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(214 |
) |
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(10 |
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(1,289 |
) |
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(587 |
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Net Loss |
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(2,541 |
) |
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(3,939 |
) |
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(19,748 |
) |
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(15,226 |
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Net income attributable to noncontrolling interests |
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45 |
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85 |
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150 |
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311 |
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Net Loss Attributable to the Owners of the Company |
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(2,586 |
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(4,024 |
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(19,898 |
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(15,537 |
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Other comprehensive income/(loss): |
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Cumulative (gain)/loss on investments in debt instruments classified as FVTOCI reclassified to profit or loss |
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3 |
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79 |
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97 |
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214 |
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Foreign currency translation adjustment |
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(230 |
) |
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(52 |
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265 |
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10 |
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Total Comprehensive Loss Attributable to Owners of the Company |
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(2,813 |
) |
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(3,997 |
) |
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(19,536 |
) |
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(15,313 |
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Total Comprehensive Income Attributable to NCI |
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45 |
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85 |
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150 |
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311 |
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Total Comprehensive Loss |
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(2,768 |
) |
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(3,912 |
) |
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(19,386 |
) |
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(15,002 |
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Loss per share |
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Basic and diluted loss per share |
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(0.01 |
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(0.02 |
) |
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(0.11 |
) |
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(0.09 |
) |
Weighted-average shares, basic and diluted |
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196,668 |
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|
180,611 |
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|
188,864 |
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|
180,158 |
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THE REAL BROKERAGE INC. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Expressed in thousands of Unaudited |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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OPERATING ACTIVITIES |
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Net Loss |
$ |
(2,541 |
) |
|
$ |
(3,939 |
) |
|
$ |
(19,748 |
) |
|
$ |
(15,226 |
) |
Adjustments for: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
358 |
|
|
|
277 |
|
|
|
1,024 |
|
|
|
830 |
|
Equity-settled share-based payment |
|
15,417 |
|
|
|
7,144 |
|
|
|
37,797 |
|
|
|
18,980 |
|
Finance costs |
|
(33 |
) |
|
|
(143 |
) |
|
|
638 |
|
|
|
156 |
|
Changes in operating asset and liabilities: |
|
|
|
|
|
|
|
||||||||
Funds Held in Restricted Escrow Account |
|
- |
|
|
|
- |
|
|
|
(9,250 |
) |
|
|
- |
|
Trade receivables |
|
1,326 |
|
|
|
(614 |
) |
|
|
(10,864 |
) |
|
|
(992 |
) |
Other receivables |
|
13 |
|
|
|
(23 |
) |
|
|
20 |
|
|
|
(1 |
) |
Prepaid expenses and deposits |
|
(850 |
) |
|
|
(266 |
) |
|
|
(259 |
) |
|
|
(796 |
) |
Accounts payable |
|
(63 |
) |
|
|
(493 |
) |
|
|
562 |
|
|
|
179 |
|
Accrued liabilities |
|
(2,638 |
) |
|
|
2,654 |
|
|
|
17,617 |
|
|
|
12,068 |
|
Customer deposits |
|
(5,608 |
) |
|
|
(13,247 |
) |
|
|
14,568 |
|
|
|
8,852 |
|
Other payables |
|
1,815 |
|
|
|
718 |
|
|
|
12,541 |
|
|
|
1,684 |
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
7,196 |
|
|
|
(7,932 |
) |
|
|
44,646 |
|
|
|
25,734 |
|
|
|
|
|
|
|
|
|
||||||||
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
Purchase of property and equipment |
|
(367 |
) |
|
|
(197 |
) |
|
|
(964 |
) |
|
|
(448 |
) |
Investment Deposits in Debt Instruments held at FVTOCI |
|
(1,134 |
) |
|
|
(3,037 |
) |
|
|
(2,847 |
) |
|
|
(6,766 |
) |
Investment Withdrawals in Debt Instruments held at FVTOCI |
|
1,014 |
|
|
|
- |
|
|
|
6,766 |
|
|
|
845 |
|
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES |
|
(487 |
) |
|
|
(3,234 |
) |
|
|
2,955 |
|
|
|
(6,369 |
) |
|
|
|
|
|
|
|
|
||||||||
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
Purchase of common shares for Restricted Share Unit (RSU) Plan |
|
(15,110 |
) |
|
|
(350 |
) |
|
|
(30,336 |
) |
|
|
(1,761 |
) |
Shares withheld for taxes |
|
(736 |
) |
|
|
- |
|
|
|
(1,477 |
) |
|
|
- |
|
Proceeds from exercise of stock options |
|
1,994 |
|
|
|
380 |
|
|
|
5,617 |
|
|
|
592 |
|
Payment of lease liabilities |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(96 |
) |
Payment of contingent consideration |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(800 |
) |
Cash disbursements for non-controlling interest |
|
(119 |
) |
|
|
(303 |
) |
|
|
(171 |
) |
|
|
(303 |
) |
NET CASH USED IN FINANCING ACTIVITIES |
|
(13,971 |
) |
|
|
(273 |
) |
|
|
(26,367 |
) |
|
|
(2,368 |
) |
|
|
|
|
|
|
|
|
||||||||
Net change in cash, cash equivalents and restricted cash |
|
(7,262 |
) |
|
|
(11,439 |
) |
|
|
21,234 |
|
|
|
16,997 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
56,440 |
|
|
|
46,745 |
|
|
|
27,655 |
|
|
|
18,327 |
|
Fluctuations in foreign currency |
|
(82 |
) |
|
|
33 |
|
|
|
207 |
|
|
|
15 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE |
$ |
49,096 |
|
|
$ |
35,339 |
|
|
$ |
49,096 |
|
|
$ |
35,339 |
|
THE REAL BROKERAGE INC. RECONCILIATION OF TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO OWNERS OF THE COMPANY TO ADJUSTED EBITDA
(Expressed in thousands of Unaudited |
|||||||||||||||
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
||||||||
Total Comprehensive Loss Attributable to Owners of the Company |
|
(2,813 |
) |
|
|
(3,997 |
) |
|
|
(19,536 |
) |
|
|
(15,313 |
) |
Add/(Deduct): |
|
|
|
|
|
|
|
||||||||
Finance Expenses, net |
214 |
|
|
10 |
|
|
1,289 |
|
|
587 |
|
||||
Net Income Attributable to Noncontrolling Interest |
|
45 |
|
|
|
85 |
|
|
|
150 |
|
|
|
311 |
|
Cumulative (Gain)/Loss on Investments in Debt Instruments Classified as at FVTOCI Reclassified to Profit or Loss |
|
(3 |
) |
|
|
(79 |
) |
|
|
(97 |
) |
|
|
(214 |
) |
Depreciation and Amortization |
|
358 |
|
|
|
277 |
|
|
|
1,024 |
|
|
|
830 |
|
Stock-Based Compensation |
|
15,417 |
|
|
|
7,144 |
|
|
|
37,797 |
|
|
|
18,980 |
|
Restructuring Expenses |
|
- |
|
|
|
80 |
|
|
|
- |
|
|
|
165 |
|
Expenses related to Anti-Trust Litigation Settlement |
|
33 |
|
|
|
- |
|
|
|
10,259 |
|
|
|
- |
|
Adjusted EBITDA |
|
13,251 |
|
|
|
3,520 |
|
|
|
30,886 |
|
|
|
5,346 |
|
THE REAL BROKERAGE INC. BREAKOUT OF REVENUE BY SEGMENT
(Expressed in thousands of Unaudited |
|||||||||||||||
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||||||
|
September 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
||||||||
Main revenue streams |
|
|
|
|
|
|
|
||||||||
Commissions |
369,890 |
|
|
213,319 |
|
|
907,716 |
|
|
504,456 |
|
||||
Title |
|
1,400 |
|
|
964 |
|
|
3,450 |
|
|
2,510 |
||||
Mortgage Income |
|
1,198 |
|
|
|
357 |
|
|
|
2,843 |
|
|
|
851 |
|
Total Revenue |
|
372,488 |
|
|
|
214,640 |
|
|
|
914,009 |
|
|
|
507,817 |
|
THE REAL BROKERAGE INC. RECONCILIATION OF OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE BY QUARTER
(Expressed in thousands of Unaudited |
|||||||||||||||||||||||||||||||||||||||||
|
2022 |
|
2023 |
|
2024 |
||||||||||||||||||||||||||||||||||||
|
Q2 |
|
Q3 |
|
Q4 |
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
|
Q1 |
|
Q2 |
|
Q3 |
||||||||||||||||||||
Operating Expense |
13,496 |
|
12,886 |
|
15,184 |
|
|
17,846 |
|
21,499 |
|
22,742 |
|
26,796 |
|
|
36,477 |
|
32,512 |
|
34,607 |
|
|||||||||||||||||||
Less: Revenue Share Expense |
|
4,376 |
|
|
3,876 |
|
|
4,020 |
|
|
|
5,434 |
|
|
7,684 |
|
|
7,946 |
|
|
6,840 |
|
|
|
9,064 |
|
|
12,475 |
|
|
11,651 |
|
|||||||||
Revenue Share Expense (% of revenue) |
|
3.9 |
% |
|
3.5 |
% |
|
4.2 |
% |
|
|
5.0 |
% |
|
4.1 |
% |
|
3.7 |
% |
|
3.8 |
% |
|
|
4.5 |
% |
|
3.7 |
% |
|
3.1 |
% |
|||||||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Stock-Based Compensation - Employees |
|
897 |
|
|
281 |
|
|
608 |
|
|
|
1,019 |
|
|
1,214 |
|
|
285 |
|
|
6,543 |
|
|
|
1,493 |
|
|
2,265 |
|
|
3,139 |
|
|||||||||
Stock-Based Compensation - Agent |
|
547 |
|
|
1,776 |
|
|
2,614 |
|
|
|
1,541 |
|
|
1,640 |
|
|
2,769 |
|
|
1,830 |
|
|
|
2,137 |
|
|
2,335 |
|
|
2,665 |
|
|||||||||
Depreciation Expense |
|
135 |
|
|
87 |
|
|
108 |
|
|
|
269 |
|
|
284 |
|
|
277 |
|
|
298 |
|
|
|
326 |
|
|
340 |
|
|
358 |
|
|||||||||
Restructuring Expense |
|
— |
|
|
62 |
|
|
160 |
|
|
|
41 |
|
|
44 |
|
|
80 |
|
|
58 |
|
|
|
— |
|
|
— |
|
|
— |
|
|||||||||
Expenses Related to Anti-Trust Litigation Settlement |
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
9,857 |
|
|
369 |
|
|
33 |
|
|||||||||
Subtotal |
|
1,579 |
|
|
2,206 |
|
|
3,490 |
|
|
|
2,870 |
|
|
3,182 |
|
|
3,411 |
|
|
8,729 |
|
|
|
13,813 |
|
|
5,309 |
|
|
6,195 |
|
|||||||||
Adjusted Operating Expense1 |
|
7,541 |
|
|
6,804 |
|
|
7,674 |
|
|
|
9,542 |
|
|
10,633 |
|
|
11,385 |
|
|
11,227 |
|
|
|
13,600 |
|
|
14,728 |
|
|
16,761 |
|
|||||||||
Adjusted Operating Expense (% of revenue) |
|
6.7 |
% |
|
6.1 |
% |
|
8.0 |
% |
|
|
8.8 |
% |
|
5.7 |
% |
|
5.3 |
% |
|
6.2 |
% |
|
|
6.8 |
% |
|
4.3 |
% |
|
4.5 |
% |
|||||||||
1Adjusted operating expense excludes revenue share, stock-based compensation, depreciation and other non-recurring or non-cash expenses. |
THE REAL BROKERAGE INC. KEY PERFORMANCE METRICS BY QUARTER
(Dollar amounts expressed in Unaudited |
|||||||||||||||||||||||||||||||||||||||||
|
2022 |
|
|
2023 |
|
|
2024 |
||||||||||||||||||||||||||||||||||
|
Q2 |
|
Q3 |
|
Q4 |
|
|
Q1 |
|
Q2 |
|
Q3 |
|
Q4 |
|
|
Q1 |
|
Q2 |
|
Q3 |
||||||||||||||||||||
Transaction Data |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Closed Transaction Sides |
|
10,224 |
|
11,233 |
|
9,745 |
|
|
10,963 |
|
17,537 |
|
20,397 |
|
17,749 |
|
|
19,032 |
|
30,367 |
|
35,832 |
|||||||||||||||||||
Total Value of Home Side Transactions ($, billions) |
|
4.2 |
|
|
4.2 |
|
|
3.5 |
|
|
|
4.0 |
|
|
7.0 |
|
|
8.1 |
|
|
6.8 |
|
|
|
7.5 |
|
|
12.6 |
|
|
14.4 |
|
|||||||||
Median Home Sales Price ($, thousands) |
$ |
375 |
|
$ |
360 |
|
$ |
348 |
|
|
$ |
350 |
|
$ |
369 |
|
$ |
370 |
|
$ |
355 |
|
|
$ |
372 |
|
$ |
384 |
|
$ |
383 |
|
|||||||||
Agent Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Total Agents |
|
5,600 |
|
|
6,700 |
|
|
8,200 |
|
|
|
10,000 |
|
|
11,500 |
|
|
12,175 |
|
|
13,650 |
|
|
|
16,680 |
|
|
19,540 |
|
|
21,770 |
|
|||||||||
Agent Churn Rate (%) |
|
7.2 |
|
|
7.3 |
|
|
4.4 |
|
|
|
8.3 |
|
|
6.5 |
|
|
10.8 |
|
|
6.2 |
|
|
|
7.9 |
|
|
7.5 |
|
|
7.3 |
|
|||||||||
Revenue Churn Rate (%) |
|
2.1 |
|
|
2.5 |
|
|
2.4 |
|
|
|
4.3 |
|
|
3.8 |
|
|
4.5 |
|
|
4.9 |
|
|
|
1.9 |
|
|
1.6 |
|
|
2.0 |
|
|||||||||
Headcount and Efficiency Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Full-Time Employees |
|
121 |
|
|
122 |
|
|
118 |
|
|
|
127 |
|
|
145 |
|
|
162 |
|
|
159 |
|
|
|
151 |
|
|
231 |
|
|
240 |
|
|||||||||
Full-Time Employees, Excluding One Real Title and One Real Mortgage |
|
91 |
|
|
87 |
|
|
84 |
|
|
|
88 |
|
|
102 |
|
|
120 |
|
|
118 |
|
|
|
117 |
|
|
142 |
|
|
155 |
|
|||||||||
Headcount Efficiency Ratio |
|
1:62 |
|
|
1:77 |
|
|
1:98 |
|
|
|
1:114 |
|
|
1:113 |
|
|
1:101 |
|
|
1:116 |
|
|
|
1:143 |
|
|
1:138 |
|
|
1:140 |
|
|||||||||
Revenue Per Full Time Employee ($, thousands) |
$ |
1,235 |
|
$ |
1,283 |
|
$ |
1,144 |
|
|
$ |
1,226 |
|
$ |
1,817 |
|
$ |
1,789 |
|
$ |
1,537 |
|
|
$ |
1,716 |
|
$ |
2,400 |
|
$ |
2,403 |
|
|||||||||
Operating Expense Excluding Revenue Share ($, thousands) |
$ |
9,120 |
|
$ |
9,010 |
|
$ |
11,164 |
|
|
$ |
12,412 |
|
$ |
13,815 |
|
$ |
14,796 |
|
$ |
19,956 |
|
|
$ |
27,413 |
|
$ |
20,037 |
|
$ |
22,956 |
|
|||||||||
Operating Expense Per Transaction Excluding Revenue Share ($) |
$ |
892 |
|
$ |
802 |
|
$ |
1,146 |
|
|
$ |
1,132 |
|
$ |
788 |
|
$ |
725 |
|
$ |
1,124 |
|
|
$ |
1,440 |
|
$ |
660 |
|
$ |
641 |
|
|||||||||
Adjusted Operating Expense ($, thousands) |
$ |
7,541 |
|
$ |
6,804 |
|
$ |
7,674 |
|
|
$ |
9,542 |
|
$ |
10,633 |
|
$ |
11,385 |
|
$ |
11,226 |
|
|
$ |
13,600 |
|
$ |
14,728 |
|
$ |
16,761 |
|
|||||||||
Adjusted Operating Expense Per Transaction ($) |
$ |
738 |
|
$ |
606 |
|
$ |
787 |
|
|
$ |
870 |
|
$ |
606 |
|
$ |
558 |
|
$ |
632 |
|
|
$ |
715 |
|
$ |
485 |
|
$ |
468 |
|
|||||||||
1Defined as the ratio of full-time brokerage employees (excludes One Real Title and One Real Mortgage employees) to the number of agents on our platform.
|
Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, information relating to Real’s expectation regarding increasing the number of agents, revenue growth and profitability and the business, strategic plans of Real and expectations regarding Real Wallet, Leo CoPilot and Leo for Clients, including their anticipated features.
Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to Real’s business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. Important factors that could cause such differences include, but are not limited to, slowdowns in real estate markets, economic and industry downturns, Real’s ability to attract new agents and retain current agents, Real’s inability to successfully launch new products and features, including Real Wallet, Leo CoPilot and Leo for Clients and those risk factors discussed under the heading “Risk Factors” in the Company’s Annual Information Form dated March 14, 2024, and “Risks and Uncertainties” in the Company’s Quarterly Management’s Discussion and Analysis for the period ended September 30, 2024, copies of which are available under the Company’s SEDAR+ profile at www.sedarplus.ca.
These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
About Real
Real (NASDAQ: REAX) is a real estate experience company working to make life’s most complex transaction simple. The fast-growing company combines essential real estate, mortgage and closing services with powerful technology to deliver a single seamless end-to-end consumer experience, guided by trusted agents. With a presence in all 50 states throughout the
The Real Brokerage is a real estate technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC. The Real Wallet Visa debit card is issued by Thread Bank, Member FDIC, pursuant to a license from Visa
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107115357/en/
For additional information, please contact:
Ravi Jani
Vice President, Investor Relations and Financial Planning & Analysis
investors@therealbrokerage.com
908.280.2515
For media inquiries, please contact:
Elisabeth Warrick
Senior Director, Marketing, Communications & Brand
elisabeth@therealbrokerage.com
201.564.4221
Source: The Real Brokerage Inc.
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