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reAlpha Tech (AIRE) - 2025 Q2 - Quarterly Results
AIREreAlpha Tech (AIRE)2024-11-12 12:52

Revenue Performance - Revenue for Q3 2024 was approximately 339,000,representinga440339,000, representing a 440% increase from Q2 2024 and a 475% increase year-over-year[1][2] - Revenue exceeded the high end of the guidance by 274%[2] - Revenues for the three months ended September 30, 2024, were 339,227, compared to 59,022forthesameperiodin2023,representingagrowthof47459,022 for the same period in 2023, representing a growth of 474%[18] - For Q4 2024, revenue is expected to grow by 130% to 190% from Q3 2024[3] Financial Position - Cash and cash equivalents were approximately 7.07 million as of September 30, 2024[2] - Total assets as of September 30, 2024, were approximately 34.19million,upfrom34.19 million, up from 27.42 million as of December 31, 2023[17] - Cash at the end of the period on September 30, 2024, was 7,076,877,comparedto7,076,877, compared to 669,880 at the end of the same period in 2023[21] - Proceeds from the issuance of debt for the nine months ended September 30, 2024, amounted to 5,000,000[21]LossandExpenses−NetlossforQ32024wasapproximately5,000,000[21] Loss and Expenses - Net loss for Q3 2024 was approximately (2.10) million, with adjusted EBITDA at approximately (1.36)million,adecreaseof19(1.36) million, a decrease of 19% from Q2 2024 and an 86% decrease year-over-year[2] - Operating loss for the three months ended September 30, 2024, was (1,689,620), compared to (728,839)forthesameperiodin2023,reflectingadeteriorationof132(728,839) for the same period in 2023, reflecting a deterioration of 132%[18] - Net loss for the nine months ended September 30, 2024, was (4,995,931), compared to a net income of 3,011,936forthesameperiodin2023[21]−TotalcashusedinoperatingactivitiesfortheninemonthsendedSeptember30,2024,was3,011,936 for the same period in 2023[21] - Total cash used in operating activities for the nine months ended September 30, 2024, was (3,806,090), compared to (2,825,315)forthesameperiodin2023[21]−Thecompanyreportedasignificantincreaseinmarketingandadvertisingexpenses,totaling(2,825,315) for the same period in 2023[21] - The company reported a significant increase in marketing and advertising expenses, totaling 451,103 for the nine months ended September 30, 2024, compared to 177,645forthesameperiodin2023[18]AdjustedEBITDAandNetIncome−AdjustedEBITDAisusedbythecompanytoevaluateongoingoperations,althoughitisanon−GAAPfinancialmeasure[23]−AdjustedEBITDAforthethreemonthsendedSeptember2024was177,645 for the same period in 2023[18] Adjusted EBITDA and Net Income - Adjusted EBITDA is used by the company to evaluate ongoing operations, although it is a non-GAAP financial measure[23] - Adjusted EBITDA for the three months ended September 2024 was (1,253,907), an increase in loss from (731,700)intheprioryear[25]−Netincomepershare,diluted,fortheninemonthsendedSeptember2024was(731,700) in the prior year[25] - Net income per share, diluted, for the nine months ended September 2024 was (0.09), compared to (0.06)inthesameperiodof2023[25]−Thecompanyreportedanetincomeusedtocomputenetincomepershare,diluted,of(0.06) in the same period of 2023[25] - The company reported a net income used to compute net income per share, diluted, of (1,447,420) for the three months ended September 2024[26] Acquisitions and Investments - The acquisition of Be My Neighbor, a mortgage brokerage, was completed, expanding reAlpha's real estate services[5] - The acquisition of AiChat expanded reAlpha's global presence to 10 countries and enhanced user experience on the platform[8] - reAlpha AI Labs was established to invest in AI startups, with the first investment made in Xmore AI[7] - The company issued shares to settle notes payable in the myAlphie sale, totaling 150,000 shares[22] Other Financial Metrics - Share-based compensation for the three months ended September 2024 amounted to 113,037,comparedto113,037, compared to 356 in the same period of 2023[26] - Acquisition-related expenses for the three months ended September 2024 totaled 178,678,comparedto178,678, compared to 103,519 in the same period of 2023[26] - GEM commitment fee incurred was 125,000forthethreemonthsendedSeptember2024[26]−GainonpreviouslyheldequityforthethreemonthsendedSeptember2024was125,000 for the three months ended September 2024[26] - Gain on previously held equity for the three months ended September 2024 was 108,382, compared to a loss of (20,663)inthesameperiodof2023[26]−DepreciationandamortizationforthethreemonthsendedSeptember2024was(20,663) in the same period of 2023[26] - Depreciation and amortization for the three months ended September 2024 was 163,439, compared to $14,628 in the same period of 2023[25] Operational Performance - The company aims to provide a clearer view of ongoing operational performance by excluding certain non-cash expenses and non-operational items from GAAP financial measures[27][28]