Reliance Global Group Reports Third Quarter 2024 Results and Provides Business Update
Reliance Global Group (NASDAQ: RELI) reported Q3 2024 financial results showing revenue growth and improved operational efficiency. Commission income increased 5% to $3.4 million, while total operating expenses decreased 16% to $3.9 million. The company achieved a 64% improvement in loss from operations and reported positive Adjusted EBITDA of $43,000, marking a 121% increase year-over-year. The company highlighted the success of its OneFirm strategy and announced progress on the Spetner Associates acquisition, which is expected to nearly double consolidated revenues. Additionally, RELI launched its AI-powered Quote & Bind solution on the RELI Exchange platform.
Reliance Global Group (NASDAQ: RELI) ha riportato i risultati finanziari del terzo trimestre 2024, mostrando una crescita dei ricavi e un miglioramento dell'efficienza operativa. Il reddito da commissioni è aumentato del 5% a 3,4 milioni di dollari, mentre le spese operative totali sono diminuite del 16% a 3,9 milioni di dollari. L'azienda ha registrato un miglioramento del 64% nelle perdite operative e ha riportato un EBITDA rettificato positivo di 43.000 dollari, segnando un incremento del 121% rispetto all'anno precedente. L'azienda ha evidenziato il successo della sua strategia OneFirm e ha annunciato progressi nell'acquisizione di Spetner Associates, che dovrebbe quasi raddoppiare i ricavi consolidati. Inoltre, RELI ha lanciato la sua soluzione Quote & Bind alimentata dall'AI sulla piattaforma RELI Exchange.
Reliance Global Group (NASDAQ: RELI) reportó los resultados financieros del tercer trimestre de 2024, mostrando un crecimiento en los ingresos y una mejor eficiencia operativa. Los ingresos por comisiones aumentaron un 5% a 3.4 millones de dólares, mientras que los gastos operativos totales disminuyeron un 16% a 3.9 millones de dólares. La empresa logró una mejora del 64% en las pérdidas de operación y reportó un EBITDA ajustado positivo de 43,000 dólares, marcando un aumento del 121% interanual. La compañía destacó el éxito de su estrategia OneFirm y anunció avances en la adquisición de Spetner Associates, que se espera casi duplique los ingresos consolidados. Además, RELI lanzó su solución Quote & Bind impulsada por IA en la plataforma RELI Exchange.
Reliance Global Group (NASDAQ: RELI)는 2024년 3분기 재무 결과를 발표하며 매출 성장과 운영 효율성 개선을 보여주었습니다. 수수료 수익은 5% 증가하여 340만 달러에 달했고, 총 운영 비용은 16% 감소하여 390만 달러로 줄었습니다. 이 회사는 운영 손실에서 64% 개선을 달성했으며, 1년 전 대비 121% 증가한 4만 3천 달러의 긍정적인 조정 EBITDA를 보고했습니다. 회사는 OneFirm 전략의 성공을 강조했으며, 통합 수익을 거의 두 배로 늘릴 것으로 예상되는 Spetner Associates 인수에 대한 진행 상황을 발표했습니다. 또한 RELI는 RELI Exchange 플랫폼에서 AI 기반 Quote & Bind 솔루션을 출시했습니다.
Reliance Global Group (NASDAQ: RELI) a rapporté les résultats financiers du troisième trimestre 2024, montrant une croissance des revenus et une amélioration de l'efficacité opérationnelle. Les revenus de commissions ont augmenté de 5% pour atteindre 3,4 millions de dollars, tandis que les dépenses d'exploitation totales ont diminué de 16% à 3,9 millions de dollars. L'entreprise a réalisé une amélioration de 64% des pertes d'exploitation et a signalé un EBITDA ajusté positif de 43 000 dollars, marquant une augmentation de 121% par rapport à l'année précédente. L'entreprise a souligné le succès de sa stratégie OneFirm et a annoncé des progrès sur l'acquisition de Spetner Associates, qui devrait nearly doubler les revenus consolidés. De plus, RELI a lancé sa solution Quote & Bind alimentée par l'IA sur la plateforme RELI Exchange.
Reliance Global Group (NASDAQ: RELI) hat die Finanzergebnisse für das dritte Quartal 2024 veröffentlicht, die ein Umsatzwachstum und eine verbesserte Betriebseffizienz zeigen. Die Provisionseinnahmen stiegen um 5% auf 3,4 Millionen US-Dollar, während die gesamten Betriebsausgaben um 16% auf 3,9 Millionen US-Dollar sanken. Das Unternehmen erzielte eine Verbesserung von 64% im Verlust aus dem operativen Geschäft und berichtete von einem positiven Adjusted EBITDA in Höhe von 43.000 US-Dollar, was einem Anstieg von 121% im Jahresvergleich entspricht. Das Unternehmen hob den Erfolg seiner OneFirm-Strategie hervor und gab Fortschritte beim Erwerb von Spetner Associates bekannt, was voraussichtlich die konsolidierten Einnahmen nahezu verdoppeln wird. Darüber hinaus hat RELI seine KI-gesteuerte Quote & Bind-Lösung auf der RELI Exchange-Plattform eingeführt.
- Commission income grew 5% to $3.4 million
- Operating expenses reduced by 16% to $3.9 million
- 64% improvement in loss from operations
- Positive Adjusted EBITDA of $43,000, up 121% YoY
- Upcoming Spetner acquisition expected to double revenues
- Successful launch of AI-powered Quote & Bind solution
- Net loss increased to $837,314 from $139,004 year-over-year
- Commission expenses increased 13%
- Still operating at a loss despite improvements
Insights
The Q3 2024 results show mixed signals for this micro-cap insurance company. While revenue grew
The planned Spetner Associates acquisition could be transformative, potentially doubling consolidated revenues. However, investors should note the company's small market cap of
The launch of AI-powered Quote & Bind solution on RELI Exchange platform represents a strategic technological advancement. This automation tool for commercial insurance policy processing could provide competitive advantages through improved operational efficiency and faster customer service. The system's ability to handle multiple insurance lines (general liability, cyber liability, workers compensation) suggests potential for revenue diversification and scalability. However, the actual impact on revenue and market share remains to be proven in subsequent quarters.
Reports Continued Revenue Growth and Significant Improvements to Net Results
Company to Host Conference Call Today at 4:30 PM Eastern Time
LAKEWOOD, N.J., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance”, “we” or the “Company”) today provided a business update and reported financial results for the three and nine months ended September 30, 2024.
Ezra Beyman, Reliance’s Chairman and Chief Executive Officer, commented, “We are very pleased to report a highly successful third quarter, both in growing our revenues, as well as in controlling our operating costs, which has resulted in sustained revenue growth, decreased expenses and improved net financial results.”
The following presents some key financial highlights for the third quarter ended September 30, 2024:
| Financial Highlights | Three Months Ended | $ Change | % Change | |||||||
| September 30, 2024 | September 30, 2023 | |||||||||
| Commission income | $ | 3,441,458 | $ | 3,275,583 | $ | 165,875 | ||||
| Commission expense | $ | 902,246 | $ | 796,001 | $ | 106,245 | ||||
| Salaries and wages | $ | 1,707,737 | $ | 1,803,698 | $ | (95,961 | ) | - | ||
| General and administrative expenses | $ | 821,510 | $ | 1,068,778 | $ | (247,268 | ) | - | ||
| Marketing and advertising expenses | $ | 100,183 | $ | 117,752 | $ | (17,569 | ) | - | ||
| Total operating expenses | $ | 3,953,435 | $ | 4,710,637 | $ | (757,202 | ) | - | ||
| Loss from operations | $ | (511,977 | ) | $ | (1,435,054 | ) | $ | 923,077 | - | |
| Recognition and change in fair value of warrant liabilities – gain (loss) | $ | - | $ | 1,715,397 | $ | (1,715,397 | ) | - | ||
| Net loss | $ | (837,314 | ) | $ | (139,004 | ) | $ | (698,310 | ) | |
| AEBITDA | $ | 42,508 | $ | (200,602 | ) | $ | 243,111 | |||
Mr. Beyman continued, “As illustrated above, for the quarter ended September 30, 2024, as compared to the quarter ended September 30, 2023, revenues continued to grow by
“These highly positive financial results are a testament to the success of our OneFirm strategy, which brings together our owned and operated, but geographically dispersed, insurance agencies, to operate as one cohesive unit, allowing for efficient and effective cross-selling, cross-collaboration, and human capital cross utilization. The OneFirm enhancements are clearly evident and demonstrated by the quarter’s promising revenue growth, shrinkage in operating costs and positive changes to net results. We feel strongly that our disciplined approach strengthens our financial position and sets the stage for continued sustained growth and long-term value creation for our shareholders.”
"We also remain focused and highly energized in anticipation of a close in the coming months on the previously announced acquisition of Spetner Associates Inc. (“Spetner”), a leading voluntary benefits insurance agency/provider to over 85,000 employees nationally, and we are confident that the integration of Spetner will close to double our consolidated revenues and serve as a catalyst for additional accelerated revenue growth, by having an expanded combined range of service offerings, enhancing our market position and paving the way for sustained profitability and longer term success."
"Additionally, in the third quarter of 2024, we were thrilled to launch our AI-powered Quote & Bind solution on the RELI Exchange platform ahead of schedule, offering our agents a transformative tool that significantly accelerates the quoting and binding process for commercial insurance policies. This cutting-edge technology is now live, enabling agents to provide faster, more competitive quotes and bind policies instantly, meeting client needs in real time. The solution not only enhances operational efficiency for our partners but also creates new revenue opportunities by capitalizing on high-demand commercial lines, such as, general liability, cyber liability, and workers compensation.”
Mr. Beyman concluded, “Our mission at Reliance remains to build a multi-billion dollar, highly profitable business enterprise, through the execution of our strategic business initiatives, including, expansion, innovation and disciplined fiscal management, which will drive sustained growth, strengthen our market share, and consistently provide substantial returns and long-lasting value for our shareholders.”
Conference Call
Reliance Global Group will host a conference call today at 4:30 PM Eastern Time to discuss the Company’s financial results for the quarter ended September 30, 2024, as well as the Company’s corporate progress and other developments.
The conference call will be available via telephone by dialing toll-free +1 877-545-0320 for U.S. callers or +1 973-528-0002 for international callers and entering access code 442767. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2381/51535 or on the investor relations section of the Company’s website, https://relianceglobalgroup.com/events-and-presentations/.
A webcast replay will be available on the investor relations section of the Company’s website at https://relianceglobalgroup.com/events-and-presentations/ through November 7, 2025. A telephone replay of the call will be available approximately one hour following the call, through November 21, 2024, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 51535.
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (NASDAQ: RELI) is an InsurTech pioneer, leveraging artificial intelligence (AI), and cloud-based technologies, to transform and improve efficiencies in the insurance agency/brokerage industry. The Company’s business-to-business InsurTech platform, RELI Exchange, provides independent insurance agencies an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies, whilst reducing back-office cost and burden. The Company’s business-to-consumer platform, 5minuteinsure.com, utilizes AI and data mining, to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance. In addition, the Company operates its own portfolio of select retail “brick and mortar” insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products. Further information about the Company can be found at https://www.relianceglobalgroup.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions and include statements such as the Company having built a best-in-class InsurTech platform, making RELI Exchange an even more compelling value proposition and further accelerating growth of the platform, rolling out several other services in the near future to RELI Exchange agency partners, building RELI Exchange into the largest agency partner network in the U.S., the Company moving in the right direction and the Company’s highly scalable business model driving significant shareholder value. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere and risks as and uncertainties related to: the Company’s ability to generate the revenue anticipated and the ability to build the RELI Exchange into the largest agency partner network in the U.S., and the other factors described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as the same may be updated from time to time. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, the Company’s Quarterly Reports on Form 10-Q, the Company’s Current Reports on Form 8-K and other subsequent filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contact:
Crescendo Communications, LLC
Tel: +1 (212) 671-1020
Email: RELI@crescendo-ir.com
INFORMATION REGARDING A NON-GAAP MEASURE
We exclude the following items when calculating AEBITDA, and the following items define our non-GAAP financial measure AEBITDA:
| ● | Interest and related party interest expense: Unrelated to core Company operations and excluded to provide more meaningful supplemental information regarding the Company’s core operational performance. | |
| ● | Depreciation and amortization: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company’s core operational performance. | |
| ● | Goodwill and/or asset impairments: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company’s core operational performance. | |
| ● | Equity-based compensation: Non-cash compensation provided to employees and service providers, excluded to provide more meaningful supplemental information regarding the Company’s core cash impacted operational performance. | |
| ● | Change in estimated acquisition earn-out payables: An earn-out liability is a liability to the seller upon an acquisition which is contingent on future earnings. These liabilities are valued at each reporting period and the changes are reported as either a gain or loss in the change in estimated acquisition earn-out payables account in the consolidated statements of operations. The gain or loss is non-cash, can be highly volatile and overall is not deemed relevant to ongoing operations, thus, it’s excluded to provide more meaningful supplemental information regarding the Company’s core operational performance. | |
| ● | Recognition and change in fair value of warrant liabilities: This account includes changes to derivative warrant liabilities which are valued at each reporting period and could result in either a gain or loss. The period changes do not impact cash, can be highly volatile, and are unrelated to ongoing operations, and thus are excluded to provide more meaningful supplemental information regarding the Company’s core operational performance. | |
| ● | Other income (expense), net: Includes non-routine income or expenses and other individually de minimis items and is thus excluded as unrelated to core operations of the company. | |
| ● | Transactional costs: This includes expenses related to mergers, acquisitions, financings and refinancings, and amendments or modification to indebtedness. These costs are unrelated to primary Company operations and are excluded to provide more meaningful supplemental information regarding the Company’s core operational performance. | |
| ● | Non-recuring costs: This account includes non-recurring non-operational items, related to costs incurred for a legal suit the Company has filed against one of the third parties involved in the discontinued operations and was excluded to provide more meaningful supplemental information regarding the Company’s core operational performance. | |
| ● | Loss from discontinued operations before tax: This account includes the net results from discontinued operations, and since discontinued, are unrelated to the Company’s ongoing operations and thus excluded to provide more meaningful supplemental information regarding the Company’s core operational performance. | |
The following table provides a reconciliation from net loss to AEBITDA for the periods ended September 30, 2024, and September 30, 2023:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net loss | $ | (837,314 | ) | $ | (139,004 | ) | $ | (7,673,373 | ) | $ | (2,982,827 | ) | ||||
| Adjustments: | ||||||||||||||||
| Interest and related party interest expense | 391,122 | 419,037 | 1,204,902 | 1,251,385 | ||||||||||||
| Depreciation and amortization | 421,759 | 652,839 | 1,425,700 | 1,962,066 | ||||||||||||
| Asset impairment | - | - | 3,922,110 | - | ||||||||||||
| Share-based compensation to employees, directors and service providers | 62,790 | 201,181 | 551,598 | 396,938 | ||||||||||||
| Change in estimated acquisition earn-out payables | - | 271,569 | 47,761 | 1,291,494 | ||||||||||||
| Other (income) expense, net | (65,785 | ) | 310 | (65,807 | ) | (3,650 | ) | |||||||||
| Transactional costs | 21,813 | 97,700 | 394,909 | 101,500 | ||||||||||||
| Nonrecurring costs | 48,124 | 11,162 | 139,087 | 58,675 | ||||||||||||
| Recognition and change in fair value of warrant liabilities | - | (1,715,397 | ) | (156,000 | ) | (4,389,120 | ) | |||||||||
| (Income) loss from discontinued operations before tax | - | - | - | 1,845,904 | ||||||||||||
| Total adjustments | 879,822 | (61,598 | ) | 7,464,259 | 2,515,192 | |||||||||||
| AEBITDA | $ | 42,508 | $ | (200,602 | ) | $ | (209,114 | ) | $ | (467,635 | ) | |||||
FAQ
What was Reliance Global Group's (RELI) revenue growth in Q3 2024?
How much did RELI reduce its operating expenses in Q3 2024?
What was RELI's Adjusted EBITDA for Q3 2024?
What is the expected impact of the Spetner Associates acquisition on RELI's revenue?
