The Real Brokerage (REAX) FY Conference June 03, 2025 03:00 PM ET Speaker0 All right, we'll get started here. So good afternoon. Thank you for joining for the Real Brokerage session. I'm Stephen Sheldon, an analyst in the tech group at William Blair covering real estate, including coverage of real brokerage. Please visit our website at williamblair.com for a complete list of research disclosures and potential conflicts of interest. So we're thrilled to have REAL back at our conference once again. It's been ...

The Real Brokerage Inc. (REAX) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.05. This compares to loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 60%. A quarter ago, it was expected that this company would post a loss of $0.05 per share when it actually produced a loss of $0.03, delivering a surprise of 40%.Over the last four quarters, the company has surpas ...

The Real Brokerage (REAX) Q1 2025 Earnings Call May 08, 2025 08:00 AM ET Company Participants Alix Lumpkin - Chief Legal OfficerTamir Poleg - Chairman and CEOSharran Srivatsaa - PresidentRavi Jani - CFODillon Heslin - Research AssociateMatthew Erdner - Director Conference Call Participants Stephen Sheldon - Research Analyst - Technology, Media & Communications Operator Good morning, ladies and gentlemen, and welcome to the RealBrokerage first quarter two thousand twenty five earnings call. At this time, all ...

The Real Brokerage (REAX) Q1 2025 Earnings Call May 08, 2025 08:00 AM ET Company Participants Alix Lumpkin - Chief Legal OfficerTamir Poleg - Chairman and CEOSharran Srivatsaa - PresidentRavi Jani - CFODillon Heslin - Research AssociateMatthew Erdner - Director Conference Call Participants Stephen Sheldon - Research Analyst - Technology, Media & Communications Operator Good morning, ladies and gentlemen, and welcome to the RealBrokerage first quarter two thousand twenty five earnings call. At this time, all ...

The Real Brokerage (REAX) Q1 2025 Earnings Call May 08, 2025 08:00 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to the RealBrokerage first quarter two thousand twenty five earnings call. At this time, all participants have been placed on a listen only mode, and we will open the floor for your questions and comments after the presentation. I will now turn the call over to Alex Lumpkin. Ma'am, the floor is yours. Speaker1 Thanks, and good morning. Thank you for standing by, and welcome to Th ...

The Real Brokerage Inc. Investor Presentation May 2025 Nasdaq: REAX investors.onereal.com Disclaimer Certain statements herein relating to The Real Brokerage Inc. ("Realˮ or the "Companyˮ) constitute "forward-looking statementsˮ, within the meaning of applicable securities laws, including without limitation, statements regarding future estimates, business plans and/or objectives, sales programs, forecasts and projections, assumptions, expectations, and/or beliefs of future performance. Such "forward-looking ...

Group 1 - Real Brokerage (NASDAQ: REAX) is recognized as an impressive disruptor in the market, although it is currently trading at an expensive valuation due to its superior long-term growth prospects [1] - The stock has experienced a decline since the last analysis, indicating potential volatility in its market performance [1] Group 2 - The author expresses a focus on value investing, particularly in emerging markets, and admires renowned investors like Li Lu and Peter Lynch [1] - The investment philosophy emphasizes an owner-mindset while largely ignoring macroeconomic noise, suggesting a long-term investment strategy [1] - The author has been influenced by Austrian economic thinkers and highlights the importance of clear and logical economic reasoning in investment decisions [1]

Financial Data and Key Metrics Changes - The company reported record fourth quarter and full year 2024 results, with total transaction value reaching $49 billion, up 90% year over year, while revenue grew to $1.3 billion, marking an increase of 84% from $689 million in 2023 [12][13] - Gross profit in 2024 grew 82% year over year to $115 million, while adjusted EBITDA reached a record $40 million, up 188% from the prior year [13][49] - The company ended the year with a net loss attributable to owners of $26.5 million, compared to a net loss of $27.5 million in 2023 [48] Business Line Data and Key Metrics Changes - For the full year 2024, mortgage and title services grew by a combined 105%, with over 200% growth at One Real Mortgage and 60% growth at One Real Title [20][23] - Revenue from ancillary businesses totaled $2.5 million during the fourth quarter of 2024, an increase of 176% versus the fourth quarter of 2023 [50] Market Data and Key Metrics Changes - The total value of homes transacted over the platform increased to $14.6 billion in the fourth quarter of 2024, a 115% year over year increase [62] - The median sale price of properties sold by agents was $380,000 in the fourth quarter of 2024, representing a 7% year over year increase [62] Company Strategy and Development Direction - The company aims to redefine the role of a real estate brokerage by providing agents with a technology platform that eliminates the need for physical office space and enhances their ability to grow their businesses [8][11] - The long-term vision includes creating a holistic ecosystem of financial technology products and investment planning tools for agents [10] Management's Comments on Operating Environment and Future Outlook - Management noted that many in the broader real estate sector are waiting for a market recovery, but the company is focused on building for the future despite existing home sales remaining near historic lows [14] - The company expects to deliver significant year over year improvement in revenue, gross profit, and adjusted EBITDA in 2025, although the first quarter is expected to be the lowest of the year for revenue [45][49] Other Important Information - The company transitioned its financials to U.S. GAAP, which had no notable impact from prior periods [46] - The company has made changes to its business model, including increasing transaction fees and adjusting commission caps to better reflect operational costs [24][25] Q&A Session Summary Question: What contributed to the strong performance in Q4 despite seasonal trends? - Management attributed the strong performance to significant growth and market share gains, particularly in December [76] Question: What are the expectations for the ancillary business growth? - Management expressed confidence in the growth of the ancillary services, particularly with the new leadership in place for One Real Title [79][80] Question: What is the outlook for agent recruitment and team expansion? - Management indicated that the agent recruitment pipeline is strong, with expectations of continued momentum into 2025 [88] Question: How does the company plan to scale the Real Wallet product? - Management noted that they are in the process of hiring a general manager for Real Wallet and expect to see rapid adoption and revenue growth [104] Question: What are the unit economics of Title and Mortgage transactions? - Management highlighted that combining Title and Mortgage transactions with brokerage transactions significantly increases revenue and gross profit [114][116]

Core Insights - The Real Brokerage Inc. reported a quarterly loss of $0.03 per share, better than the Zacks Consensus Estimate of a loss of $0.05, and an improvement from a loss of $0.07 per share a year ago, representing a 40% earnings surprise [1] - The company achieved revenues of $350.63 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 16.67% and showing significant growth from $181.34 million in the same quarter last year [2] - The stock has increased approximately 7.6% since the beginning of the year, contrasting with a -0.7% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $301.18 million, and for the current fiscal year, it is -$0.08 on revenues of $1.51 billion [7] - The estimate revisions trend for The Real Brokerage is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Technology Services industry, to which The Real Brokerage belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Company Performance - The Real Brokerage Inc. reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.04, and improved from a loss of $0.02 per share a year ago, representing an earnings surprise of 75% [1] - The company posted revenues of $372.49 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 11.32%, and up from $214.64 million in the same quarter last year [2] - Over the last four quarters, The Real Brokerage has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - The Real Brokerage shares have increased approximately 252.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 24.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $292.23 million, and for the current fiscal year, it is -$0.18 on revenues of $1.17 billion [7] Industry Outlook - The Technology Services industry, to which The Real Brokerage belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]