The following is a summary of the Real Matters Inc. (RLLMF) Q2 2024 Earnings Call Transcript:
Financial Performance:
Real Matters reported a 12% YoY increase in consolidated revenues to $42.2 million for Q2 2024, largely due to growth in the U.S. Appraisal and Canadian segments.
The company earned a positive consolidated adjusted EBITDA of $0.7 million for the quarter, attributing this to strong operating leverage.
U.S. appraisal revenues stood at $32.6 million, up 16% from Q2 2023, leading to a net revenue increase from $7.7 million to $9.2 million YoY.
U.S. Title revenues saw a decline of 9% YoY to $2 million, while Canadian revenues increased slightly by 2% YoY to $7.6 million.
Real Matters ended Q2 2024 without any debt and a healthy cash balance of $44.4 million.
Business Progress:
The company recorded a 19% and 23% sequential increase in U.S. Appraisal purchase and refinance revenues respectively in Q2.
A new lender was launched in the quarter, along with YoY market share increases with four of its top seven U.S. Appraisal clients.
U.S. Appraisal net revenue margins reached a new record of 28.3%, marking an increase of 40 basis points from Q1.
Venturing into new businesses, the company launched two new clients in U.S. Title and another three (including one new channel) in Canada during Q2.
Real Matters aims to add new clients to its Title platform throughout 2024 to achieve long-term targets.
The company indicated movement in their pipeline and projections for new orders from Tier 1 companies by year-end. They continue to invest in operating expenses to boost operating efficiencies.
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