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 ...

Financial Data and Key Metrics Changes - Revenue for Q3 2023 was $215 million, a 92% increase year-over-year, driven by an 82% increase in closed transactions, totaling over 20,000, and a 5% increase in average commission revenue per transaction [8][25] - Adjusted EBITDA was positive $3.5 million, a $3 million improvement from Q3 2022, marking the second consecutive quarter of positive adjusted EBITDA [16][30] - Gross profit increased to $18.8 million, a 119% increase year-over-year, with a gross margin of 8.7%, up approximately 100 basis points from the prior year [26][27] Business Line Data and Key Metrics Changes - Fee income and other revenue totaled $3.1 million, a 245% increase year-over-year, reflecting increased agent and transaction counts [26] - Title and mortgage revenue was $1.3 million, a 173% increase year-over-year, with organic growth for these services at approximately 100% excluding contributions from One Real Mortgage [26] Market Data and Key Metrics Changes - The total value of homes transacted over the platform increased to $8.1 billion, a 91% year-over-year increase [31] - The median sale price of properties sold was approximately $370,000, a 2.8% increase compared to the same quarter in 2022 [31] 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 [14][15] - The launch of the One Real mobile app is a significant step towards creating a seamless home buying and selling experience [17] - The company is focusing on expanding its Title and Mortgage businesses, which typically command higher gross margins than traditional brokerage [11][18] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the challenging housing market, with existing home sales down significantly and mortgage rates at multi-decade highs [34] - Despite the challenges, the company believes its unique business model and technology platform position it well to thrive [16][38] - The management expects continued growth in agent count and productivity, with optimism for the spring market despite anticipated seasonal declines in Q4 [59] Other Important Information - The company is now operational in all 50 states and 4 Canadian provinces, representing less than 1% of the total real estate agent population in North America, indicating significant growth potential [19] - The introduction of the Real Wallet and Real Retirement programs aims to enhance agents' financial stability and long-term wealth generation [21][22] Q&A Session Summary Question: Was the agent churn in the quarter all involuntary? - The churn was predominantly from agents who decided to leave the industry, with most being nonproductive agents [40] Question: How does Leo 2.0 impact productivity? - It is early to attribute productivity increases solely to Leo 2.0, but it is expected to help agents close deals faster and improve overall efficiency [41] Question: What adjustments are being made to the Mortgage and Title business? - The company is focusing on fewer markets to create a scalable model and is seeing traction in California for its Title business [43][61] Question: What functionalities will the One Real app have in the future? - The app will evolve to include features for home discovery, mortgage applications, transaction tracking, and more, aiming for a holistic home buying experience [46] Question: How does the company plan to capture smaller independent brokerages? - The company is building tailored products and systems to facilitate smoother transitions for smaller brokerages and is focused on creating conversations to attract them [66]

The Real Brokerage Inc. (NASDAQ:REAX) Q2 2023 Earnings Conference Call August 9, 2023 11:00 AM ET Company Participants Jason Lee - Vice President-Capital Markets and Investor Relations Tamir Poleg - Chairman and Chief Executive Officer Michelle Ressler - Chief Financial Officer Conference Call Participants Darren Aftahi - ROTH MKM Stephen Sheldon - William Blair David Marsh - Singular Research Thomas White - D.A. Davidson Operator Good day, everyone, and welcome to The Real Brokerage Second Quarter 2023 Ear ...

Exhibit 99.2 Building Your Future, Together The Real Brokerage Inc. (the "Company" or "Real") is a technology-powered real estate brokerage that uses its innovative approach to change the way people buy and sell homes. Real's model focuses on creating value and financial opportunity for agents, enabling them to deliver a better experience to their clients. Real creates financial opportunities for agents in four key ways: 1. Keep more commission Our unique compensation structure favors the agent, allowing th ...

Financial Data and Key Metrics Changes - Revenue for Q1 2023 was $108 million, representing a 75% year-over-year increase and a 12% sequential growth from the prior quarter [4][45] - The total value of homes transacted over the platform reached $4 billion, a 66% increase compared to Q1 2022 [16] - Adjusted EBITDA loss for the quarter was $792,000, compared to a $577,000 loss in Q1 2022 [26] - The company had $11 million in unrestricted cash and $8.5 million in short-term investments, totaling $19.5 million in liquidity as of March 31, 2023 [27] Business Line Data and Key Metrics Changes - The total number of transactions on the platform increased to 10,963, a 75% year-over-year increase [16] - The median sale price of properties sold was $350,000, reflecting a 1.4% increase compared to Q1 2022 [16] - Commission revenue per productive agent moderated to $26,000 in Q1 from $27,200 in Q4 2022 [20] - The number of agents grew to over 10,000, a 120% year-over-year increase, with a net addition of nearly 1,800 agents [37] Market Data and Key Metrics Changes - U.S. existing home sales were down 26% year-over-year and 16% quarter-over-quarter, indicating a challenging market environment [8] - Canadian residential sales activity in Q1 was 38% lower year-over-year, with average sale prices down 17% [18] - Canada represented 9% of the agent base and 11% of commission revenue in Q1, a decline from 14% in Q4 2022 [47] Company Strategy and Development Direction - The company is focused on becoming a tech-powered brokerage, enhancing agent attraction and retention through innovative tools and services [5][12] - Plans to launch a consumer-facing app and a program called Fast14 to streamline the mortgage application process [40] - The company aims to reach adjusted EBITDA profitability in Q2 2023, earlier than previously expected [43][78] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment has stabilized, with expectations for a strong Spring season in real estate [81] - The company is optimistic about its growth trajectory, citing strong demand in many markets despite broader industry challenges [81] - Management emphasized the importance of operational efficiencies and the impact of new fee structures on financial performance [43][78] Other Important Information - The company launched Real Signature, an electronic signature tool, to enhance transaction efficiency for agents [41] - The headcount efficiency ratio improved to around 1 to 114, indicating better operational efficiency [24] - Revenue churn increased to 4.3%, attributed to fee increases and seasonal factors [51] Q&A Session Summary Question: How does the company view productivity per agent as it scales from 10,000 to 50,000 agents? - Management believes that productivity metrics are sustainable and will continue to improve as the agent base grows [29] Question: Has the banking sector pulled back on lending? - Management indicated that there has been no significant pullback from major lenders, and the mortgage side remains stable [68] Question: Were there any nonrecurring items in SG&A for the quarter? - Management confirmed that there were no nonrecurring items reported in SG&A [66] Question: What is the expectation for capital expenditures for the remainder of the year? - Management expects capital expenditures to remain low, primarily reflecting capitalized R&D expenses [69] Question: How does the company plan to attract struggling independent brokerages? - Management is engaged in conversations with small and medium-sized brokerages, emphasizing the value proposition of joining Real [75]

Exhibit 99.2 TABLE OF CONTENTS | Interim Condensed Consolidated Financial Statements (Unaudited): | | | --- | --- | | Interim Condensed Consolidated Statements of Financial Positions | 2 | | Interim Condensed Consolidated Statements of Loss and Other Comprehensive Loss | 3 | | Interim Condensed Consolidated Statements of Changes in Equity | 4 | | Interim Condensed Consolidated Statement of Cash Flows | 5 | | Notes to the Interim Condensed Consolidated Financial Statements | 6-24 | | 1 | | Page THE REAL BROK ...

Exhibit 99.1 The Real Brokerage Inc. Announces Fourth Quarter and Full Year 2022 Financial Results TORONTO and NEW YORK – (BUSINESS WIRE) – The Real Brokerage Inc. (TSX: REAX) (NASDAQ: REAX), the fastest- growing publicly traded real estate brokerage, announced results for its fourth quarter and full year ended December 31, 2022. "2022 was another momentous year of growth for Real that saw us significantly increase our agent base, capture additional market share and expand our geographic presence despite a ...

(Expressed in thousands of U.S. dollars) UNAUDITED | | Unaudited | | Audited | | | --- | --- | --- | --- | --- | | | September 30, 2022 | | December 31, 2021 | | | ASSETS | | | | | | CURRENT ASSETS | | | | | | Cash and cash equivalents | $ | 21,943 | $ | 29,082 | | Restricted cash | | - | | 47 | | Investments in available-for-sale securities at fair value | | 9,786 | | 8,811 | | Trade receivables | | 783 | | 254 | | Other receivables | | 74 | | 23 | | Prepaid expenses and deposits | | 782 | | 448 | | TOTAL ...