The Real Brokerage Inc. Announces Third Quarter 2024 Financial Results

TORONTO & NEW YORK--()--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 third quarter ended September 30, 2024.

“Real delivered another exceptional quarter underpinned by industry-leading growth and innovation,” said Tamir Poleg, Real’s Chairman and Chief Executive Officer. “Our technology leadership was on full display at our recent RISE 2024 conference, with the official launch of Real Wallet, our first fintech product, and the announcement of Leo AI for clients. These innovations reflect our ongoing commitment to creating a seamless, technology-first real estate experience that empowers both agents and their clients.”

“Even with current market challenges, Real’s ability to attract high-performing agents highlights the strength of our value proposition,” said Sharran Srivatsaa, President of Real. “Our focus on providing agents with world-class tools, support, and training — evidenced by our preparation for the recent NAR practice changes — ensures they can navigate shifts in the industry and grow their businesses with confidence.”

“Our strong top- and bottom-line performance this quarter reflects a balanced approach of disciplined cost control and strategic investments in high-impact areas,” said Michelle Ressler, Real’s Chief Financial Officer. “We remain focused on executing our value-creation strategy and building on our recent momentum as we prepare for an even stronger 2025.”

Q3 2024 Operational Highlights1

  • The total value of completed real estate transactions reached $14.4 billion in the third quarter of 2024, an increase of 78% from $8.1 billion in the third quarter of 2023.
  • The total number of transactions closed was 35,832 in the third quarter of 2024, an increase of 76% from 20,397 in the third quarter of 2023.
  • The total number of agents on the platform increased to 21,770 at the end of the third quarter of 2024, an increase of 79% from the third quarter of 2023. As of November 7, 2024, approximately 22,500 agents are now on the Real platform.

Q3 2024 Financial Highlights

  • Revenue rose to $372.5 million in the third quarter of 2024, an increase of 74% from $214.6 million in the third quarter of 2023.
  • Gross profit reached $32.1 million in the third quarter of 2024, an increase of 71% from $18.8 million in the third quarter of 2023.
  • Net loss attributable to owners of the Company was $(2.6) million in the third quarter of 2024, compared to $(4.0) million in the third quarter of 2023.
  • Adjusted EBITDA2 was $13.3 million in the third quarter of 2024, compared to $3.5 million in the third quarter of 2023.
  • Operating expenses, which include General & Administrative, Marketing, and Research and Development expenses, totaled $34.6 million in the third quarter of 2024, a 52% increase from $22.7 million in the third quarter of 2023.
  • Revenue share expense, which is included in Marketing expenses, was $11.7 million in the third quarter of 2024, a 47% increase compared to $7.9 million in the third quarter of 2023.
  • Adjusted operating expenses, which reflect operating expenses less revenue share expense, stock-based compensation, depreciation, expenses related to the settlement of antitrust litigation, and other unique or non-cash expenses, were $16.8 million in the third quarter of 2024, an increase of 47% from $11.4 million in the third quarter of 2023. Adjusted operating expense per transaction was $468 in the third quarter of 2023, a decline of 16% from $558 in the third quarter of 2023.
  • Loss per share was $(0.01) in the third quarter of 2024, compared to a loss per share of $(0.02) in the third quarter of 2023.
  • The Company repurchased 2.7 million common shares for $15.1 million in the third quarter of 2024, pursuant to its normal course issuer bid.
  • As of September 30, 2024, Real held cash and cash equivalents of $32.0 million, consisting of $21.6 million of unrestricted cash and $10.4 million held in investments in financial assets.
  • Real continues to have no debt.

Business Highlights and Recent Updates

Subsequent to the end of the quarter, in October, Real unveiled an array of innovative products and features at its annual RISE agent conference in Las Vegas. Highlights included:

  • Real Wallet – Real announced the official launch of its cutting-edge fintech product. Real Wallet was built specifically for Real agents. Real Wallet allows U.S. agents to access their earnings instantly, eliminating delays caused by legacy banking systems, and provides financial insights that enable agents to manage their business finances more effectively, while also reinvesting in growth opportunities. Real Wallet is available to select agents in the U.S. and Canada. U.S. agents can open a business checking account with Thread Bank, Member FDIC, featuring a Real-branded debit card, while Canadian agents will be offered a credit line based on their earnings history with Real. Future phases of Real Wallet aim to unify these offerings into a comprehensive financial solution for all business banking needs. Banking services in the U.S. are provided by Thread Bank, Member FDIC, and the Canadian credit line will be offered directly by Real.
  • Leo CoPilot – The next evolution of Real’s AI-powered assistant, Leo CoPilot acts as an agent's personal command center. It anticipates individual agent needs, streamlines daily tasks, and serves as the primary interface for reZEN, Real’s proprietary agent software platform, enhancing productivity and simplifying business operations.
  • Leo for Clients – Designed to transform client-agent interactions, Leo for Clients will enable direct communication between agents and clients through SMS and iMessage. Building on the same concept as Leo CoPilot, Leo for Clients will offer 24/7 access to property information and services through a dedicated phone line for each agent. At launch, clients will be able to interact with Leo for Clients enabling them to receive recommendations for available properties based on their search criteria, access open house information, schedule tours and initiate mortgage applications. This tool streamlines communication, enhances the client experience, and allows agents to focus their time on strategic efforts and relationship building, while maintaining seamless client engagement.

_________________________ 

1All dollar references are in U.S. dollars.
2There are references to “Adjusted EBITDA” and “Adjusted Operating Expense” in this press release, which are non-IFRS measures. See accompanying note under the heading “Non-IFRS Measures” for an explanation of the composition of these non-IFRS measures.

The Company will discuss the third quarter results on a conference call and live webcast today at 8:30 a.m. ET.

Conference Call Details:

 

 

Date:

Thursday, November 7, 2024

 

 

Time:

8:30 am ET

 

 

Dial-in Number:

North American Toll Free: 888-506-0062

International: 973-528-0011

 

 

Access Code:

345905

 

 

Webcast:

https://www.webcaster4.com/Webcast/Page/2699/51300

 

 

Replay Information:

 

 

Replay Number:

North American Toll Free: 877-481-4010

International: 919-882-2331

 

 

Access Code:

51300

 

 

Replay Link:

https://www.webcaster4.com/Webcast/Page/2699/51300

Non-IFRS Measures

This news release includes references to “Adjusted EBITDA”, and “Adjusted Operating Expense”, which are non-International Financial Reporting Standards (“IFRS”) financial measures. Non-IFRS measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies.

Adjusted EBITDA is used as an alternative to net income by removing major non-cash items, such as depreciation, amortization, interest, stock-based compensation, current and deferred income tax expenses and other items management considers unique and/or non-operating in nature.

Adjusted Operating Expense is used as an alternative to operating expenses by removing major non-cash items such as stock-based compensation, depreciation, and other unique or non-cash expenses, while retaining ongoing fixed operating expenses and excluding variable cash expenses associated with revenue share.

Adjusted EBITDA and Adjusted Operating Expense have no direct comparable IFRS financial measures. The Company has used or included these non-IFRS measures solely to provide investors with added insight into Real’s financial performance. Readers are cautioned that such non-IFRS measures may not be appropriate for any other purpose. Non-IFRS measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Our Adjusted EBITDA is reconciled to the most comparable IFRS measure for the three months and nine months ended September 30, 2024 and 2023 and is presented in the table below labeled Reconciliation of Total Comprehensive Loss Attributable to Owners of the Company to Adjusted EBITDA. Our Adjusted Operating Expense reconciled to the most comparable IFRS measure is presented for the three months ended September 30, 2024 and on a quarterly basis for the prior two fiscal years in the table below labeled Reconciliation of Operating Expense to Adjusted Operating Expense.

 

THE REAL BROKERAGE INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONS

(Expressed in thousands of U.S. dollars)

Unaudited

 

 

As of

 

September 30, 2024

 

December 31, 2023

ASSETS

 

 

 

CURRENT ASSETS

 

 

 

Cash and cash equivalents

$

21,580

 

 

$

14,707

 

Restricted cash

 

27,516

 

 

 

12,948

 

Funds held in restricted escrow account

 

9,250

 

 

 

-

 

Investments in financial assets

 

10,398

 

 

 

14,222

 

Trade receivables

 

17,305

 

 

 

6,441

 

Other receivables

 

43

 

 

 

63

 

Prepaid expenses and deposits

 

2,391

 

 

 

2,132

 

TOTAL CURRENT ASSETS

 

88,483

 

 

 

50,513

 

NON-CURRENT ASSETS

 

 

 

Intangible assets

 

2,788

 

 

 

3,442

 

Goodwill

 

8,993

 

 

 

8,993

 

Property and equipment

 

2,209

 

 

 

1,600

 

TOTAL NON-CURRENT ASSETS

 

13,990

 

 

 

14,035

 

TOTAL ASSETS

 

102,473

 

 

 

64,548

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

CURRENT LIABILITIES

 

 

 

Accounts payable

 

1,133

 

 

 

571

 

Accrued liabilities

 

30,991

 

 

 

13,374

 

Customer deposits

 

27,516

 

 

 

12,948

 

Other payables

 

12,843

 

 

 

302

 

Warrants outstanding

 

-

 

 

 

-

 

TOTAL CURRENT LIABILITIES

 

72,483

 

 

 

27,195

 

NON-CURRENT LIABILITIES

 

 

 

Warrants outstanding

 

-

 

 

 

269

 

TOTAL NON-CURRENT LIABILITIES

 

-

 

 

 

269

 

TOTAL LIABILITIES

 

72,483

 

 

 

27,464

 

 

 

 

 

EQUITY

 

 

 

EQUITY ATTRIBUTABLE TO OWNERS

 

 

 

Share premium

 

67,683

 

 

 

62,567

 

Stock-based compensation reserves

 

61,255

 

 

 

52,937

 

Deficit

 

(98,103

)

 

 

(78,205

)

Other reserves

 

195

 

 

 

(167

)

Treasury stock, at cost

 

(1,228

)

 

 

(257

)

EQUITY ATTRIBUTABLE TO OWNERS

 

29,802

 

 

 

36,875

 

Non-controlling interests

 

188

 

 

 

209

 

TOTAL EQUITY

 

29,990

 

 

 

37,084

 

TOTAL LIABILITIES AND EQUITY

 

102,473

 

 

 

64,548

 

 

THE REAL BROKERAGE INC.

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

(Expressed in thousands of U.S. dollars, except for per share amounts)

Unaudited

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenues

$

372,488

 

 

$

214,640

 

 

$

914,009

 

 

$

507,817

 

Commissions and other agent-related costs

 

340,359

 

 

 

195,865

 

 

 

829,253

 

 

 

460,475

 

Gross Profit

 

32,129

 

 

 

18,775

 

 

 

84,756

 

 

 

47,342

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

16,301

 

 

 

9,234

 

 

 

42,452

 

 

 

27,526

 

Marketing expenses

 

15,261

 

 

 

11,577

 

 

 

43,779

 

 

 

29,527

 

Research and development expenses

 

3,045

 

 

 

1,931

 

 

 

8,115

 

 

 

5,034

 

Settlement of litigation

 

 

 

 

 

 

 

9,250

 

 

 

 

Operating Loss

 

(2,478

)

 

 

(3,967

)

 

 

(18,840

)

 

 

(14,745

)

 

 

 

 

 

 

 

 

Other income

 

151

 

 

 

38

 

 

 

381

 

 

 

106

 

Finance expenses, net

 

(214

)

 

 

(10

)

 

 

(1,289

)

 

 

(587

)

Net Loss

 

(2,541

)

 

 

(3,939

)

 

 

(19,748

)

 

 

(15,226

)

Net income attributable to noncontrolling interests

 

45

 

 

 

85

 

 

 

150

 

 

 

311

 

Net Loss Attributable to the Owners of the Company

 

(2,586

)

 

 

(4,024

)

 

 

(19,898

)

 

 

(15,537

)

Other comprehensive income/(loss):

 

 

 

 

 

 

 

Cumulative (gain)/loss on investments in debt instruments classified as FVTOCI reclassified to profit or loss

 

3

 

 

 

79

 

 

 

97

 

 

 

214

 

Foreign currency translation adjustment

 

(230

)

 

 

(52

)

 

 

265

 

 

 

10

 

Total Comprehensive Loss Attributable to Owners of the Company

 

(2,813

)

 

 

(3,997

)

 

 

(19,536

)

 

 

(15,313

)

Total Comprehensive Income Attributable to NCI

 

45

 

 

 

85

 

 

 

150

 

 

 

311

 

Total Comprehensive Loss

 

(2,768

)

 

 

(3,912

)

 

 

(19,386

)

 

 

(15,002

)

Loss per share

 

 

 

 

 

 

 

Basic and diluted loss per share

 

(0.01

)

 

 

(0.02

)

 

 

(0.11

)

 

 

(0.09

)

Weighted-average shares, basic and diluted

 

196,668

 

 

 

180,611

 

 

 

188,864

 

 

 

180,158

 

 

THE REAL BROKERAGE INC.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Expressed in thousands of U.S. dollars)

Unaudited

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net Loss

$

(2,541

)

 

$

(3,939

)

 

$

(19,748

)

 

$

(15,226

)

Adjustments for:

 

 

 

 

 

 

 

Depreciation and amortization

 

358

 

 

 

277

 

 

 

1,024

 

 

 

830

 

Equity-settled share-based payment

 

15,417

 

 

 

7,144

 

 

 

37,797

 

 

 

18,980

 

Finance costs

 

(33

)

 

 

(143

)

 

 

638

 

 

 

156

 

Changes in operating asset and liabilities:

 

 

 

 

 

 

 

Funds Held in Restricted Escrow Account

 

-

 

 

 

-

 

 

 

(9,250

)

 

 

-

 

Trade receivables

 

1,326

 

 

 

(614

)

 

 

(10,864

)

 

 

(992

)

Other receivables

 

13

 

 

 

(23

)

 

 

20

 

 

 

(1

)

Prepaid expenses and deposits

 

(850

)

 

 

(266

)

 

 

(259

)

 

 

(796

)

Accounts payable

 

(63

)

 

 

(493

)

 

 

562

 

 

 

179

 

Accrued liabilities

 

(2,638

)

 

 

2,654

 

 

 

17,617

 

 

 

12,068

 

Customer deposits

 

(5,608

)

 

 

(13,247

)

 

 

14,568

 

 

 

8,852

 

Other payables

 

1,815

 

 

 

718

 

 

 

12,541

 

 

 

1,684

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

 

7,196

 

 

 

(7,932

)

 

 

44,646

 

 

 

25,734

 

 

 

 

 

 

 

 

 

INVESTING ACTIVITIES

 

 

 

 

 

 

 

Purchase of property and equipment

 

(367

)

 

 

(197

)

 

 

(964

)

 

 

(448

)

Investment Deposits in Debt Instruments held at FVTOCI

 

(1,134

)

 

 

(3,037

)

 

 

(2,847

)

 

 

(6,766

)

Investment Withdrawals in Debt Instruments held at FVTOCI

 

1,014

 

 

 

-

 

 

 

6,766

 

 

 

845

 

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

 

(487

)

 

 

(3,234

)

 

 

2,955

 

 

 

(6,369

)

 

 

 

 

 

 

 

 

FINANCING ACTIVITIES

 

 

 

 

 

 

 

Purchase of common shares for Restricted Share Unit (RSU) Plan

 

(15,110

)

 

 

(350

)

 

 

(30,336

)

 

 

(1,761

)

Shares withheld for taxes

 

(736

)

 

 

-

 

 

 

(1,477

)

 

 

-

 

Proceeds from exercise of stock options

 

1,994

 

 

 

380

 

 

 

5,617

 

 

 

592

 

Payment of lease liabilities

 

-

 

 

 

-

 

 

 

-

 

 

 

(96

)

Payment of contingent consideration

 

-

 

 

 

-

 

 

 

-

 

 

 

(800

)

Cash disbursements for non-controlling interest

 

(119

)

 

 

(303

)

 

 

(171

)

 

 

(303

)

NET CASH USED IN FINANCING ACTIVITIES

 

(13,971

)

 

 

(273

)

 

 

(26,367

)

 

 

(2,368

)

 

 

 

 

 

 

 

 

Net change in cash, cash equivalents and restricted cash

 

(7,262

)

 

 

(11,439

)

 

 

21,234

 

 

 

16,997

 

Cash, cash equivalents and restricted cash, beginning of period

 

56,440

 

 

 

46,745

 

 

 

27,655

 

 

 

18,327

 

Fluctuations in foreign currency

 

(82

)

 

 

33

 

 

 

207

 

 

 

15

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE

$

49,096

 

 

$

35,339

 

 

$

49,096

 

 

$

35,339

 

 

THE REAL BROKERAGE INC.

RECONCILIATION OF TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO OWNERS OF THE COMPANY TO ADJUSTED EBITDA

(Expressed in thousands of U.S. dollars)

Unaudited

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2023

Total Comprehensive Loss Attributable to Owners of the Company

 

(2,813

)

 

 

(3,997

)

 

 

(19,536

)

 

 

(15,313

)

Add/(Deduct):

 

 

 

 

 

 

 

Finance Expenses, net

214

 

 

10

 

 

1,289

 

 

587

 

Net Income Attributable to Noncontrolling Interest

 

45

 

 

 

85

 

 

 

150

 

 

 

311

 

Cumulative (Gain)/Loss on Investments in Debt Instruments Classified as at FVTOCI Reclassified to Profit or Loss

 

(3

)

 

 

(79

)

 

 

(97

)

 

 

(214

)

Depreciation and Amortization

 

358

 

 

 

277

 

 

 

1,024

 

 

 

830

 

Stock-Based Compensation

 

15,417

 

 

 

7,144

 

 

 

37,797

 

 

 

18,980

 

Restructuring Expenses

 

-

 

 

 

80

 

 

 

-

 

 

 

165

 

Expenses related to Anti-Trust Litigation Settlement

 

33

 

 

 

-

 

 

 

10,259

 

 

 

-

 

Adjusted EBITDA

 

13,251

 

 

 

3,520

 

 

 

30,886

 

 

 

5,346

 

 

THE REAL BROKERAGE INC.

BREAKOUT OF REVENUE BY SEGMENT

(Expressed in thousands of U.S. dollars)

Unaudited

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

September 30, 2024

 

September 30, 2023

 

September 30, 2024

 

September 30, 2023

Main revenue streams

 

 

 

 

 

 

 

Commissions

369,890

 

 

213,319

 

 

907,716

 

 

504,456

 

Title

 

1,400

 

 

964

 

 

3,450

 

 

2,510

Mortgage Income

 

1,198

 

 

 

357

 

 

 

2,843

 

 

 

851

 

Total Revenue

 

372,488

 

 

 

214,640

 

 

 

914,009

 

 

 

507,817

 

 

THE REAL BROKERAGE INC.

RECONCILIATION OF OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE BY QUARTER

(Expressed in thousands of U.S. dollars)

Unaudited

 

 

2022

 

2023

 

2024

 

Q2

 

Q3

 

Q4

 

 

Q1

 

Q2

 

Q3

 

Q4

 

 

Q1

 

Q2

 

Q3

Operating Expense

13,496

 

12,886

 

15,184

 

 

17,846

 

21,499

 

22,742

 

26,796

 

 

36,477

 

32,512

 

34,607

 

Less: Revenue Share Expense

 

4,376

 

 

3,876

 

 

4,020

 

 

 

5,434

 

 

7,684

 

 

7,946

 

 

6,840

 

 

 

9,064

 

 

12,475

 

 

11,651

 

Revenue Share Expense (% of revenue)

 

3.9

%

 

3.5

%

 

4.2

%

 

 

5.0

%

 

4.1

%

 

3.7

%

 

3.8

%

 

 

4.5

%

 

3.7

%

 

3.1

%

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Stock-Based Compensation - Employees

 

897

 

 

281

 

 

608

 

 

 

1,019

 

 

1,214

 

 

285

 

 

6,543

 

 

 

1,493

 

 

2,265

 

 

3,139

 

Stock-Based Compensation - Agent

 

547

 

 

1,776

 

 

2,614

 

 

 

1,541

 

 

1,640

 

 

2,769

 

 

1,830

 

 

 

2,137

 

 

2,335

 

 

2,665

 

Depreciation Expense

 

135

 

 

87

 

 

108

 

 

 

269

 

 

284

 

 

277

 

 

298

 

 

 

326

 

 

340

 

 

358

 

Restructuring Expense

 

 

 

62

 

 

160

 

 

 

41

 

 

44

 

 

80

 

 

58

 

 

 

 

 

 

 

 

Expenses Related to Anti-Trust Litigation Settlement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,857

 

 

369

 

 

33

 

Subtotal

 

1,579

 

 

2,206

 

 

3,490

 

 

 

2,870

 

 

3,182

 

 

3,411

 

 

8,729

 

 

 

13,813

 

 

5,309

 

 

6,195

 

Adjusted Operating Expense1

 

7,541

 

 

6,804

 

 

7,674

 

 

 

9,542

 

 

10,633

 

 

11,385

 

 

11,227

 

 

 

13,600

 

 

14,728

 

 

16,761

 

Adjusted Operating Expense (% of revenue)

 

6.7

%

 

6.1

%

 

8.0

%

 

 

8.8

%

 

5.7

%

 

5.3

%

 

6.2

%

 

 

6.8

%

 

4.3

%

 

4.5

%

1Adjusted operating expense excludes revenue share, stock-based compensation, depreciation and other non-recurring or non-cash expenses.

 

THE REAL BROKERAGE INC.

KEY PERFORMANCE METRICS BY QUARTER

(Dollar amounts expressed in U.S. dollars)

Unaudited

 

 

2022

 

 

2023

 

 

2024

 

Q2

 

Q3

 

Q4

 

 

Q1

 

Q2

 

Q3

 

Q4

 

 

Q1

 

Q2

 

Q3

Transaction Data

 

 

 

 

 

 

 

 

 

 

 

 

Closed Transaction Sides

 

10,224

 

11,233

 

9,745

 

 

10,963

 

17,537

 

20,397

 

17,749

 

 

19,032

 

30,367

 

35,832

Total Value of Home Side Transactions ($, billions)

 

4.2

 

 

4.2

 

 

3.5

 

 

 

4.0

 

 

7.0

 

 

8.1

 

 

6.8

 

 

 

7.5

 

 

12.6

 

 

14.4

 

Median Home Sales Price ($, thousands)

$

375

 

$

360

 

$

348

 

 

$

350

 

$

369

 

$

370

 

$

355

 

 

$

372

 

$

384

 

$

383

 

Agent Metrics

 

 

 

 

 

 

 

 

 

 

 

 

Total Agents

 

5,600

 

 

6,700

 

 

8,200

 

 

 

10,000

 

 

11,500

 

 

12,175

 

 

13,650

 

 

 

16,680

 

 

19,540

 

 

21,770

 

Agent Churn Rate (%)

 

7.2

 

 

7.3

 

 

4.4

 

 

 

8.3

 

 

6.5

 

 

10.8

 

 

6.2

 

 

 

7.9

 

 

7.5

 

 

7.3

 

Revenue Churn Rate (%)

 

2.1

 

 

2.5

 

 

2.4

 

 

 

4.3

 

 

3.8

 

 

4.5

 

 

4.9

 

 

 

1.9

 

 

1.6

 

 

2.0

 

Headcount and Efficiency Metrics

 

 

 

 

 

 

 

 

 

 

 

 

Full-Time Employees

 

121

 

 

122

 

 

118

 

 

 

127

 

 

145

 

 

162

 

 

159

 

 

 

151

 

 

231

 

 

240

 

Full-Time Employees, Excluding One Real Title and One Real Mortgage

 

91

 

 

87

 

 

84

 

 

 

88

 

 

102

 

 

120

 

 

118

 

 

 

117

 

 

142

 

 

155

 

Headcount Efficiency Ratio

 

1:62

 

 

1:77

 

 

1:98

 

 

 

1:114

 

 

1:113

 

 

1:101

 

 

1:116

 

 

 

1:143

 

 

1:138

 

 

1:140

 

Revenue Per Full Time Employee ($, thousands)

$

1,235

 

$

1,283

 

$

1,144

 

 

$

1,226

 

$

1,817

 

$

1,789

 

$

1,537

 

 

$

1,716

 

$

2,400

 

$

2,403

 

Operating Expense Excluding Revenue Share ($, thousands)

$

9,120

 

$

9,010

 

$

11,164

 

 

$

12,412

 

$

13,815

 

$

14,796

 

$

19,956

 

 

$

27,413

 

$

20,037

 

$

22,956

 

Operating Expense Per Transaction Excluding Revenue Share ($)

$

892

 

$

802

 

$

1,146

 

 

$

1,132

 

$

788

 

$

725

 

$

1,124

 

 

$

1,440

 

$

660

 

$

641

 

Adjusted Operating Expense ($, thousands)

$

7,541

 

$

6,804

 

$

7,674

 

 

$

9,542

 

$

10,633

 

$

11,385

 

$

11,226

 

 

$

13,600

 

$

14,728

 

$

16,761

 

Adjusted Operating Expense Per Transaction ($)

$

738

 

$

606

 

$

787

 

 

$

870

 

$

606

 

$

558

 

$

632

 

 

$

715

 

$

485

 

$

468

 

1Defined as the ratio of full-time brokerage employees (excludes One Real Title and One Real Mortgage employees) to the number of agents on our platform.
2Reflects total company revenue divided by full-time brokerage employees (excludes One Real Title and One Real Mortgage employees).
3Adjusted operating expense excludes revenue share, stock-based compensation, depreciation and other non-recurring or non-cash expenses.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management as at the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, information relating to Real’s expectation regarding increasing the number of agents, revenue growth and profitability and the business, strategic plans of Real and expectations regarding Real Wallet, Leo CoPilot and Leo for Clients, including their anticipated features.

Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to Real’s business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. Important factors that could cause such differences include, but are not limited to, slowdowns in real estate markets, economic and industry downturns, Real’s ability to attract new agents and retain current agents, Real’s inability to successfully launch new products and features, including Real Wallet, Leo CoPilot and Leo for Clients and those risk factors discussed under the heading “Risk Factors” in the Company’s Annual Information Form dated March 14, 2024, and “Risks and Uncertainties” in the Company’s Quarterly Management’s Discussion and Analysis for the period ended September 30, 2024, copies of which are available under the Company’s SEDAR+ profile at www.sedarplus.ca.

These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

About Real

Real (NASDAQ: REAX) is a real estate experience company working to make life’s most complex transaction simple. The fast-growing company combines essential real estate, mortgage and closing services with powerful technology to deliver a single seamless end-to-end consumer experience, guided by trusted agents. With a presence in all 50 states throughout the U.S. and Canada, Real supports over 22,000 agents who use its digital brokerage platform and tight-knit professional community to power their own forward-thinking businesses. Additional information can be found on its website at www.onereal.com.

The Real Brokerage is a real estate technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC. The Real Wallet Visa debit card is issued by Thread Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa cards are accepted.

Contacts

For additional information, please contact:
Ravi Jani
Vice President, Investor Relations and Financial Planning & Analysis
investors@therealbrokerage.com
908.280.2515

For media inquiries, please contact:
Elisabeth Warrick
Senior Director, Marketing, Communications & Brand
elisabeth@therealbrokerage.com
201.564.4221

Contacts

For additional information, please contact:
Ravi Jani
Vice President, Investor Relations and Financial Planning & Analysis
investors@therealbrokerage.com
908.280.2515

For media inquiries, please contact:
Elisabeth Warrick
Senior Director, Marketing, Communications & Brand
elisabeth@therealbrokerage.com
201.564.4221