TORONTO & NEW YORK–(BUSINESS WIRE)–The Real Brokerage Inc. (NASDAQ: REAX), 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 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. |
|||||||||||||||||||||||||||||||||||||||||
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.
