- Earnings call transcript Q3 2022

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Reliance Global Group Third Quarter 2022 Business Update Conference Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question-and-answer session. to call like Waldman, to now Relations. Investor would turn over the David I ahead. go Please

David Waldman

Good you. Reliance XXXX third the thank Global quarter call. Thank conference and Group's afternoon, you for joining

Ezra on September the its for Beyman, posted of On release operating company’s Global William Reliance. results Officer and XXth, the www.relianceglobalgroup.com. press Chief Group; us is the Earlier with today this Reliance Chairman Chief morning, XXXX. Executive website, call The and the Officer Financial of ended Lebovics, quarter is company announced

addition, company XX-Q well as XXXX, on and on In the report accessed filed on website, XXth, with Exchange as its Form the November which quarterly be company’s Securities can SEC’s also the website US the www.sec.gov. Commission at

questions additional the like contact after would please company, any information the Communications or any at Crescendo XXX-XXX-XXXX. call you If about have

forward-looking company’s statements the our that our operations statements. words seek, negative similar forward-looking are such are remind Beyman results These statements this All statements. estimate, future words terms financial events and for plans, could call materially events Mr. strategy other quarter US call The may or Before in including operations and occur financial conference historical several company’s could, these of risks, expectations the this in results operations plan, expectations intended might, conference uncertainties to position, current company’s believes and projections of to Exchange from this assumptions operations the conference statements. described operating with actual condition, the forward-looking like intent, and subject adversely trends call, XXXX, Commission its objectives those expressions of and regarding are everyone contained circumstances statements long-term and expect, facts financial business Because results design, of may forward-looking other project, will, as are statements it Securities may, that and risks, short-term differ reviews March forward-looking and results and needs. in of than and statements XX, the forward-looking the we’d forward-looking filed anticipated and contain XXXX. future the assumptions uncertainties about of discussed for the strategy, and third anticipate, affect believe, in XX-K to should, not statements. on largely Form and may in continue, on These future likely, implied terms based and and identify and

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statements. company this attributable forward-looking responsibility their well addition, entirety neither by nor forward-looking as other these and of to in for those completeness forward-looking update made statements. are duty cautionary qualified to the any these of as any of The person company the company assumes any any call. disclaims statements, In accuracy statements conference expressly these All in

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Ezra Beyman

reduces immediately agents compare agent it networks David. now increase the helping quarter by Good In their XX% capable is third platform, that you, a its We casualty by can in significant to an own have more Associates, faster on of of and built Since our time property versatility foreseeable premier is than quotes The their ever for the simple uncertainty, of agents stood industry solution with best Exchange. back-office year-over-year or that of offering shareholder the we into to relaunched XXXX, partners and as today. agency one of with future. test provides The carrier platform business-to-business policies the who achieved realize believe that value which the Barra our efficient. of strong Exchange driven XXXX Exchange of been allows focus successful quarter prudent economic these an match Using in country. streamlining highly is Thank agency revenue RELI platform report their simplifies to open full and their captive and previously third Exchange and worked beauty has InsurTech another growth, paperwork, & scalable for the ensure agent's owning a can RELI acquisition joining there they become in customers. eliminating the environments. time, driving to thus even that marks This and insurance option RELI part in a partner quarter. I'm very providing and also clients. their that to their RELI were including launch, benefits to identifying in operations that thanks of business more partner year-over-year makes Exchange the RELI us revenue at RELI network business. entrepreneurs platform, of other periods pleased appealing and costs has the and inflationary agencies. their no platform before, Exchange afternoon value generate we and insurance rapidly large the compared agents everyone bureaucratic speed agency within best-in-class, for in the are the is

so, referral partnership agency retailers the in to add partnership merchant platform. increasing providing of type RELI win-win our we the is most clients now Exchange cash on streams opportunity a merchant was existing explore the services during the their of their with our further are We NRS proposition. a new that existing Once make revenue continue of a and believe for more referral stream to and Exchange Funding, offer of with will agents which and partners, We new quarter the third a advance to such believe both to our independent for advance profitability of RELI growth this into we entered And customers. agents even provider Through able importantly, revenue partnership, accelerate this nation-wide. value prospective services, an opportunities agents businesses. cash doing compelling

In believe addition, to more we'll similar be pipeline, opportunities several RELI which type have out in agency able the shortly. we to roll we Exchange partners

a up on the continue our excellent an month has are Exchange ago. quickly agents partners experiencing RELI platform which now We receive join feedback from business. platform to for the network, has agency than anticipated to the that already we few platform agency as a effects from independent XXX had The continue on the partners, is their partners just scaled of than increase that XX more the more positive having were

largest into date we Exchange And heading As we our in have network demonstrates goal the is US. the are agency growth to build in believe partner network previously stated, right that the that direction. to the we RELI the of rapid

do that repurchase drive addition, at by authorized the history. the current we future. share is note, up of shareholder stock, one common under shareholders the in conditions. scalability share to cost In significant which partners not value program, time in of entry the repurchase its is Directors We agency We the in a of business believe the which believe believe the for the reflected shares. may share Board will position any outstanding drive the outstanding model, we in market for a company company three in with combined will of reducing given price our million this than low value help expect stronger the On September, final

do not we're of the stock I have liberty the repurchases, program open we at with While on addition opportunistically. timing to which specific the this $XXX,XXX amount in market comment to personally an over important It's note also plan company. the or use invested future I purchased in to previously to million, share the of that

like the our review the turn period and September underway. call further stock Reliance financial Officer RELI the to we of who confidence of for significant where those would XX, forward instills put hopefully, Financial by the it Lebovics, initiatives business the cannot three-month willing over William price, encouraged now We further of to you ending are be Global the that and Group, to that more William? details Exchange For XXXX. will money outlook Chief this look results share on our with I providing to matters. frustration other

William Lebovics

months or in $X.X compared driven expenses acquisitions ended for is result September months The Thanks, increase agencies and year company ago acquired of totaled for insurance as brand $XXX,XXX September in three XX, three recorded company's Ezra, and expense increased by XX, XX, leader the the ended XX, compared ended to is XXXX, $X.X the The million million XX% largely was for three three and increase XXXX September the compared XX, XXXX. is primarily XXXX. the compared year. September months $XXX,XXX commission to prior growth, operations and increase growth the and the June establish million in the $X.X to expense increase ended ended for was a XX, and General company's we in totaled quarter months three through or insurance due insurance The the thought The quarter industry XX% the in company growth quarter. due XXXX. XXXX. XXXX. September XXX,XXX totaled and million the Salaries million administrative the is $X.X for quarter XXXX, acquisitions revenues $X.X increase the organic for XXXX, XX, to Total the both the and agencies the to million wages three The ended the of to September to XXXX, the XX, for Marketing the ended $X.X increase for made XX, afternoon. ended itself XXXX. good and XXXX. to The ended months result compared $XX,XXX additional compared for of expense organic advertising and September efforts awareness of for acquired XXXX. primarily to organic of September months as additional $XXX,XXX $XXX,XXX

for assist of remarks. for three $X.X income $X.XX XXXX, company of of the XX, or increase million through to months XXXX. September million you costs direct-to-consumer months Medigap's concludes is for went million attributable Net $XXX,XXX $X.XX platforms. XXXX, ended The the to us to per Kelly, a value $X.X our September XX, liabilities. three $X.X expense model, that? $X.X are of ended other recognition warrant answer to and prepared media XX, marketing Additionally, compared questions. with which three in please totaled social out share. September the a deployed ended compared income for happy other can per The months This primarily various reported share million We're change $XXX,XXX or fair loss any

Operator

with Riley The Hutton. Certainly. EF your open Edward floor for question Instructions] [Operator Your coming questions. is is now Please first post from question.

Your line is live.

Edward Riley

guys. much terms to dwindling you timing, cash? looks left? for like taking the to Its my Thanks up alternatives position profitability the Hey, maybe of cash show bit. any maybe talk in how cash Could question. taking maybe a path is do And some you're runway you have down about

Ezra Beyman

Yeah.

as truth that a is any the of we So elaborate on, and could time non-cash had and expenses – non-recurring. the on moves of the if lot –

– So not really burn now. is much of what of right a much have we had don't that during year the we

a with cash, have And Some in of up we're the okay, on, weigh eye the need we is is longer now them, one-time think basically, now, we you are past. And, fine. what brakes getting are shape company stepped no we on -- an had recurring. we’re we're – corporate stabilizing But I've with, expenses we as in were, I course, expenses the keep okay -- the -- whatever profitable. lot of -- the as we goes they actually, on agencies but right And that. themselves because cash time the of more, when know, and

Edward Riley

it looks any in well. other is like that the like really highlight? is performing And Exchange your performance you. of from quarter notable RELI Got you'd subsidiaries to Okay. Any that

Ezra Beyman

that? Joel, if do answer to maybe want -- believe, you I

Joel Markovits

Of course.

this year, point and one Altruis they doing growth that year-over-year. really were subsidiaries, significant I'll well our So of and out

only ones. the not they're yes, So,

wide. Some Montana of Kush the sitting ones, really other and

there the XX% a I something board, was think growth across organic to like that.

growth Kush I've I mean, on really is that zeroing Altruis, a flying. that around. them of big were then seen doing operation think organic it, Without in I and have which are do doing -- but some and they well. we really

Edward Riley

Okay, great. Thanks.

Ezra Beyman

Okay.

Operator

question. question [ph]. Elan FKC next from coming Freeman [ph] with pose is your Capital Your Please,

is line Your live.

Unidentified Analyst

the do Yes. Congratulations going next amount growth XX the in you Thanks RELI have on where impressive been question. it in see to continue the of months? for taking Exchange of What's a the and your The to time. plan short growth quarter. XX

Ezra Beyman

the that, focus, have I'm even you it shooting extrapolates about year into because in I been as few some discussions put to now, from all for the that's we months, that really to the It's X,XXX doubling don't done major if only QX think we're size. Okay. until hadn’t What agents. technology because by things the agent ready. little we've glad last asked time. drilling a know XXXX, a and place the of go of than revenue get And have But a planned. I now significant really if to end more of

to gearing Grant what the that? as in that's phone. I if Grant up. as So the like on give well efforts really He as think, far you’d to shooting fill color we're for. is us We're and improvement. the some could, us

Grant Barra

Absolutely.

the numbers we're working in on count is that So field agent with. a primary focus the

sales working branding. that It InsurTech able process we the space. are partnership opportunity with They our platform. in their hands the Global in agency of like, They logo, full enhanced We to own platform agents, were these with a onboarding Group. underneath succeed independent owned down, operate in really the underneath gives directors best have to currently the Reliance create partners

really is that that hit that an agents believe for option will and exceed X,XXX target. attractive target. potentially do XX it's I December them. Hitting So by we target our

I what look the is, starting that's So at point.

productive. agents, So of onboarding I are making talk don't about the sure when of forget to these want agents about highly each these I

competitive with in to our This we possible. agency on able And with. success platform meet after they the very retention, as sales and have it helps the and which after working are a specific as with So being onboarding thriving in our become process, just success as productive allows offering to how have partners success. trainers works, nature directors every they have agency they about just to our to order quickly a of our by continue with partners platform keep client

norm isn't to quotes is of our running the that lot have few So, the very close. norm because agreement, you're carrier and industry to in single opportunities a

So, who join an keeping just in presence wants in field that the in having agency are Again, competitive as higher best a who the the in insurance have better agents created what independent insurance retention, platform our more agents that industry they're our we experience a today results for our business, to option wants agency. is partners on the and way with often.

Unidentified Analyst

Thank you.

Operator

no further this are at would questions to closing turn to in over time. I management There like for queue now remarks. the floor back any

William Lebovics

Kelly. Thanks

thank the continue will independent further to for everyone new partners third with the RELI we We the quarter about like the agency in excited have agents US are we call. short XXXX in we by additional traction are and in that as opportunities in experienced We participating that we solid to accelerate to revenue to across conference I growth add and believe revenue our time the encouraged Platform growth achieve. continue Exchange the would observing a such platform.

we of we forge We our to progress on as ahead forward updating Thank and enthusiasm look you. quarter. you are next full

Operator

and call. Thank Ladies conference conclude this you. gentlemen, does today's

your this You phone and a for time may Thank at have participation. wonderful disconnect you day. your lines

Ezra Beyman

you. Thank

Reliance Global (RELI) 15 Nov 222022 Q3 Earnings call transcript