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]

Core Viewpoint - The sustainability of a trend is crucial for successful short-term investing, and confirming fundamental factors is essential to maintain momentum in stocks [1][2]. Group 1: Stock Performance - The Real Brokerage Inc. (REAX) has shown a solid price increase of 19.7% over the past 12 weeks, indicating strong investor interest [4]. - In the last four weeks, REAX has maintained a price increase of 12.7%, suggesting that the upward trend is still intact [5]. - REAX is currently trading at 94.9% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - REAX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like REAX that have the fundamental strength to maintain their recent uptrend [3]. - There are additional stocks that meet the criteria of the "Recent Price Strength" screen, providing further investment opportunities [8].

Financial Data and Key Metrics Changes - Revenue for Q2 2024 increased by 84% year-over-year to $341 million, driven by a 73% increase in closed transactions and a 6% increase in average revenue per transaction [6][18] - Gross profit reached a record $31.9 million, up 79% from $17.8 million in Q2 2023, with adjusted EBITDA improving to $14 million from $2.6 million in the prior year [7][22] - Net loss narrowed to $1.2 million in Q2 2024 compared to a net loss of $4.1 million in Q2 2023 [22] Business Line Data and Key Metrics Changes - Ancillary businesses, including mortgage and title services, grew by 68% year-over-year, with One Real Mortgage experiencing a 160% increase [8][18] - The number of agents increased by 70% year-over-year to 19,500, with an additional 1,000 agents added since the start of Q2 2024 [7][24] Market Data and Key Metrics Changes - The total value of homes transacted over the platform increased to $12.6 billion, an 80% year-over-year increase, while the median sales price of properties sold was $384,000, representing a 4% increase [24] - Canada accounted for 12% of commission revenue in Q2 2024, down from 15% in the same quarter of the previous year [24] Company Strategy and Development Direction - The company aims to redefine the role of real estate brokerage by providing agents with financial incentives, a proprietary technology platform, and a collaborative culture [4][5] - The long-term vision includes developing a holistic ecosystem of financial technology products and enhancing the consumer experience through the One Real mobile app [5][6] - The company is focused on agent growth and improving agent experience through innovative programs and training initiatives [11][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment, with existing home sales declining year-over-year, but emphasized the company's strong performance in this context [8][9] - The company remains optimistic about growth prospects and is committed to innovation and enhancing agent support [17][30] Other Important Information - The company ended Q2 2024 with approximately $33.6 million in unrestricted cash and investments, maintaining a strong balance sheet with no debt [23] - The company is preparing agents for upcoming NAR rule changes through extensive training programs [16][50] Q&A Session Summary Question: What is the focus on agent churn rate? - Management noted that a significant portion of churn is due to agents doing one or fewer transactions, and they are closely monitoring churn metrics while providing operational support to agents [33][34] Question: What is the strategy to increase attach rates for ancillary services? - Management highlighted the focus on creating joint ventures with large teams and embedding title services into the consumer app to enhance the overall experience [36] Question: Are there opportunities for acquisitions? - Management remains open to acquisitions but believes they currently have the necessary components to build their tech roadmap without significant new investments [40] Question: How does Real Brokerage's value proposition compare to competitors? - Management emphasized their entrepreneurial-centric model, technology platform, and favorable economics as key differentiators that attract agents [52][54] Question: How is the company preparing for the NAR settlement changes? - Management is conducting extensive training to ensure agents are aligned with the new practices required by the settlement [50][51]

Group 1: Earnings Performance - The Real Brokerage Inc. reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.02, representing a 50% earnings surprise [1] - The company posted revenues of $340.78 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 29.06%, compared to $185.33 million in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - The Real Brokerage shares have increased approximately 241.3% since the beginning of the year, significantly outperforming the S&P 500's gain of 9.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.02 on revenues of $293.68 million, and for the current fiscal year, it is -$0.17 on revenues of $1.02 billion [7] - The estimate revisions trend for The Real Brokerage is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Technology Services industry, to which The Real Brokerage belongs, is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook [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]

The Real Brokerage Inc. [REAX] Q1 2024 Earnings Conference Call May 7, 2024 8:00 AM ET Company Participants Tamir Poleg - Chairman and CEO Sharran Srivatsaa - President Michelle Ressler - CFO Ravi Jani - VP, IR, Financial Planning and Analysis Conference Call Participants Darren Aftahi - ROTH MKM Stephen Sheldon - William Blair Matthew Erdner - JonesTrading Operator Good morning, ladies and gentlemen, and welcome to The Real Brokerage first quarter 2024 earnings call. At this time, all participants have bee ...

Overview of Real Brokerage - Real Brokerage is a software-based real estate brokerage aiming to streamline the home buying process and empower agents [11, 22] - The company focuses on organic agent growth and increasing the use of ancillary services [33] - Real's mission is to empower each agent through innovation, enhancing efficiency, and fostering a culture of shared success and wealth creation [19] Agent Value Proposition - Real offers agents attractive financial incentives, including high commission splits, revenue sharing, and equity opportunities [22] - Agents typically receive 85% of gross commissions before reaching an annual cap [143] - Revenue sharing allows agents to earn income from commissions generated by agents they refer to Real [54] - Real provides a wealth plan with fully-integrated wealth planning tools for agents to envision their future and accomplish their goals [58] Technology and Platform - Real's proprietary software platform, reZEN, offers tools tailored for real estate agents, including transaction management and a production dashboard [60] - Leo AI, an AI-powered personal concierge, provides 24/7 support to agents and brokers [63] - The company launched the One Real app in October 2023 to simplify the mortgage application process [5] Financial Performance and Growth - Real has experienced significant revenue growth, with revenue increasing by over 400% from 2021 to 2023 [9] - The company has grown agent count significantly, reaching 16,680 agents in Q1 2024 [33] - In Q1 2024, Real's quarterly revenue was $200.743 million [174] - The company's headcount efficiency ratio reached 1:143 in Q1 2024 [184]

Revenue share expense was $6.8 million in the fourth quarter of 2023, up from $4 million in the prior year period and improved as a percentage of sales to 3.8%, down 40 basis points from 4.2% in the prior year period. This cost is entirely variable and reflects Real commission shares paid to agents for recruiting new agents to the Brokerage. Revenue shares categorized as a marketing expense as our sponsorship structure aids in attracting and retaining new agents, while also enhancing productivity across our ...

The Real Brokerage Inc. Announces Fourth Quarter and Full Year 2023 Financial Results TORONTO and NEW YORK, March 7, 2024 - (BUSINESS WIRE) - The Real Brokerage Inc. (NASDAQ: REAX) ("Real" or the "Company"), a technology platform reshaping real estate for agents, home buyers, and sellers, announced today financial results for the fourth quarter and year ended December 31, 2023. "Real delivered another record year in 2023, despite a challenging industry backdrop. Our performance both in the quarter and for t ...