Founded in 2014, The Real Brokerage Inc. (Nasdaq: REAX, “Real”) is disrupting the traditional real estate brokerage model by providing agents with a higher value offering at a lower cost. Combining a unique culture, attractive financial incentives, and a proprietary software-based technology stack, Real has rapidly grown revenue and agent count without the need for cost-heavy physical office space. With a focus on organic agent growth and increasing attachment of ancillary services, such as mortgage and title, our vision is to redefine the home buying and selling process, while providing an avenue for real estate agents to build generational wealth. During the twelve months ended September 30, 2023, Real generated $604 million in revenue and $5.2 million in adjusted EBITDA. Today Real supports more than 14,000 real estate agents throughout the U.S. and Canada who use its digital brokerage platform and tight-knit professional community to power their own forward-thinking businesses.
The Real Brokerage is one of the many featured companies slated to present at The Microcap Conference 2024, set for Jan. 30-Feb. 1 at Caesars Atlantic City Hotel and Casino. This three-day conference presented by DealFlow Events features technical programming designed for microcap investors and a presenting company track for pitching and socializing.
Earlier this month Real announced the launch of two initiatives that make it easier for the nation’s 100,000+ independent brokerages and team leaders to join Real, while maintaining the brands and compensation structures that are right for their businesses. Already the fastest-growing, publicly traded real estate brokerage as measured by agent growth, both programs are designed to clear the path for independent brokerages and fast-growing teams to benefit from the technology, tools, training and culture of collaboration and performance that Real provides.
- Private Label Program: Allows independent brokerages to retain and continuing growing their local brand, while leveraging Real’s proprietary transaction management technology platform. This initiative has already shown success in pilot markets, contributing to nearly $2 billion in sales volume.
- ProTeams Program: Available for select teams currently, and set to be fully available by the end of the first quarter, ProTeams offers unprecedented flexibility. It enables team leaders to customize financial models for each team member, ensuring they can maintain the structures that best suit their needs while still benefiting from all of Real’s technology and support resources, as well as our comprehensive agent-centric benefits.
“Real is a platform of possibilities. We are focused on providing agents and team leaders with the best platform from which to serve clients and build long-term wealth,” said Real President Sharran Srivatsaa. “In today’s market, independent brokerage owners and team leaders need a platform that gives them the ability to scale. Our Private Label and ProTeams programs give owners and team leaders the power to overlay the Real model – and all of the benefits associated with being a part of the fastest-growing, publicly traded brokerage firm – without losing their brand or having to alter their economic plan.”
Real Chairman and CEO Tamir Poleg said, “We’ve kicked off 2024 on a strong note, with over 500 agents joining Real in the first week alone, pushing our network past the 14,000 agent mark. With the launch of these new programs, we’re set to further accelerate our growth, providing unparalleled opportunities for independent brokerages and teams to expand their businesses with unmatched flexibility and support.”
Recent financial highlights:
The third quarter of 2023 marked a significant milestone for Real, with the company generating record revenue and a second consecutive quarter of positive adjusted EBITDA. Key highlights from the quarter include:
- Revenue increased 92% year-over-year to $214.6 million.
- Gross profit increased 119% year-over-year to $18.8 million.
- Adjusted EBITDA profit of $3.5 million, a $3.0 million improvement from the third quarter of 2022, and our second consecutive quarter of positive adjusted EBITDA.
- Operating expenses, including Revenue Share, increased 77% year-over-year to $22.7 million. ● Revenue share expense increased 105% year-over-year to $7.9 million.
- Net loss attributable to owners of the Company was $4.0 million, compared to a $5.2 million loss in the third quarter of 2022.
- Unrestricted cash and investments increased by $5.0 million during the quarter to $33.0 million
- In January 2024, Real announced its agent count exceed 14,000, an increase from 12,175 at the end of 3Q 2023.
- In October 2023, Real unveiled the “One Real” consumer-facing mobile app —The initial version gives agents the ability to invite clients to be pre-approved and cleared to close on a home mortgage from the palm of their hand in as little as 14 days.
- In April 2024 Real will launch the Real Wallet — a first-of-its-kind fintech product designed specifically for Real agents that centralizes the functionality of a debit card, credit card, reward points and an array of perks. This new suite of products will open new monetization opportunities within the vast amount of commission dollars already transacted on Real’s platform.
Tickets to the inaugural Microcap Conference 2024 are going fast. Reserve your seat now for three days of unsurpassed networking and technical discussions of the microcap sector with some of the best names in the business – institutional investors, finance-focused law firms, venture and private equity fund managers, deal advisors, PIPE funds, brokerage firms, investor relations professionals, accredited retail investors and many more. The conference schedule is also packed with entertainment and exciting activities set against the backdrop of Atlantic City’s bright lights.
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