The following is a summary of the The Real Brokerage Inc. (REAX) Q1 2024 Earnings Call Transcript:
Financial Performance:
Real reported an 86% increase in Q1 2024 revenue, totalling $201 million, primarily driven by a 74% increased volume of closed transactions, and a 7% increase in average revenue per transaction.
Gross profit for Q1 2024 recorded a significant high of $20.8 million, dramatically improving the adjusted EBITDA to $3.6 million, compared to the negative adjusted EBITDA of $0.8 million in Q1 2023.
Ancillary mortgage and title business lines witnessed a remarkable 104% growth in comparison to previous year, with Real's mortgage business line witnessing over 400% growth year-on-year.
Agent count increased to 16,680 at the end of Q1 2024, up 67% from previous year and over 3,000 agents from the end of 2023.
Business Progress:
Real continues its investment in mobile platform 'One Real' to enhance client experience and improve profitability of ancillary services.
Long-term goal includes creation of a platform encompassing an ecosystem of fintech products, payments, and investment planning tools.
The Private Label and ProTeams Initiative have boosted agent numbers, hence facilitating alignment for high-performing teams and independent brokerages.
Despite potential volatility due to interest rate fluctuations, Real is bullish about its growth trajectory, its strong agent proposition and unique business model serving as key enablers.
Real perceives potential disruptions in traditional brokerages as an opportunity for industry consolidation, particularly with growing number of traditional brokerages aligning with innovative players like Real.
Consistently low churn rate of 1.9% in Q1 2024 indicates strong agent retention.
Real's Mortgage business is operating in 20 states with strategy to deepen presence, geared at positively impacting the bottom line.
More details: The Real Brokerage IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.