Earnings call transcript Q4 2022

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Operator

Good day, everyone, and welcome to the Reliance Global Group Fourth Quarter and 2022 Year-End Financial Results and Business Update Conference Call. [Operator Instructions]

It is now my pleasure to turn the floor over to your host, Ted Ayvas. Sir, the floor is yours.

Theodore Ayvas

Thanks, Matthew. you and Reliance business thank year-end Group's and results financial update afternoon, for Global joining XXXX Good conference call.

with www.relianceglobalgroup.com. Officer XX, press on Group; operating results call and XXXX. Earlier today, Financial The the us the announced Ezra Reliance. company's are the On its company Beyman, Officer Chief of Executive posted Joel year of release and Global for is the Reliance website, Markovits, Chief today Chairman ended December

report annual which on XX-K] addition, accessed the at its In Exchange well today, filed U.S. www.sec.gov. the earlier on as and website can [Form Securities the website company with be SEC's as the Commission company's also

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

results the contain Beyman we this for Before everyone like to may conference call operating Mr. XXXX, reviews company's that remind forward-looking statements. would

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

You should events. statements future predictions rely not upon forward-looking of as

company reflected in the the statements the Although performance of future guarantee level achievements. or that expectations it reasonable, are results, forward-looking believes cannot activity,

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

forward-looking made and With in all the evaluate I will Ezra? company that, of Beyman. statements call by the uncertainties. turn to should Ezra the context over You these risks now

Ezra Beyman

as we April in upon the from XXXX, foundation Most completed in today. for as Good revenue by Ted. the for thanks afternoon, which Barra the overall we've well performance everyone year importantly, XXXX & RELI we us acquisitions you, increase transformative operating This was for company the joining as Thank XX% which the acquired to reflects Associates our evidenced Exchange. growth became subsidiaries. solid XXXX. a and built

RELI in has suite experienced The agency the fact by partners a well development of RELI platform fact its enabling XXX% that of business-to-business InsurTech is network most company the and business the is aware, partner and agencies. our for our platform a and to against illustrated effectively comprehensive independent in agencies increase is agency July and insurance InsurTech agencies RELI first-in-class so of complete that Exchange XXXX. tools, Exchange providing since Exchange agents are is platform As national industry. them you and game changer for an agents win launch resonating The almost

Additionally, platform added under the in life productive provide facilitate February minute the we of to policy and enables to example well we is as clients. XXXX, insurance A this our quickly prime conversations. introduce compare exclusive platform, options our value as quotation binding policy of which to and to pricing streamline regularly agents in more further new enhancing a products tool, a client

and transparency expected complete options cost. this on available With tool, the receive consumers coverage

Along goal in the the Moreover, accurate also partners, necessary to for that primary receive providing system improved while them CRM with in and are of process I'm enabling XX% which assist RELI with guides safeguard investment. a new a business quotes best fills out Exchange application, upgraded by to level agents asset, sales sell entire they smart the to an that possible artificial automatically -- was closing agents. insurance is coaching value customer accelerate more wherever and was The essential agent Our necessary. our platform and growth. obtaining customers through ensuring their more efficient engine, their policies custom to intelligent of this, their agency our to sorry, February leading process the launched, for customers' engagement, quick

industry. has and developed has is earlier partner exclusive free provided experience. being anything while and training instead a more independent AI-based growth we month, in to customer compare allowing aid else This being have our not tool strengthened platform of Exchange support leader agency these enhanced also RELI less agents industry charge insurance this our an in the sales of partners. elevated, These agency tracking providing RELI as The are to improvements communication unlike position partners. Despite specifically University, them the groundbreaking InsurTech unveiled enhancements, system to further overall directors support. prospect experiences in but replaced, that a training agency Furthermore, been and will and time,

also RELI informed of the products, range all success and RELI With productivity helps agency partners both industry. and wide through to increase their access The experience. developments platform has tools, service been their of agents latest offer services designed available the agents and insurance level keep of can This platform. our the of regardless maximize experienced a new in University, to Exchange

wrap I almost experienced of to launch in as it and of Moshe this thanks led an team. On effort. So, the its exceptional note, our Exchange who RELI special increase has Michael July since to XXX% and agency Fishman, Barra, commitment XXXX, have mentioned up, a Grant partners in unwavering Dobek efforts that mention to earlier,

unique placing of forefront at the business highly is Our model both us and scalable the industry.

Exchange a organic cash primary platform. anticipate continue potential well a sheet final to consolidated I are positive the with capitalized to forward. growth has RELI On We Meanwhile, platform's gratitude driver flow costs act we supportive as to and note, our subsidiaries we operating and to a offset basis, that associated expand want and will with going about express building as one for helped RELI excited our marketing growth are Exchange services future improve balance on which capabilities. the are strong all to out generating my and shareholders. We

term. been have pressure. own invested has within our We recognize stock that insurance a money market has have assure of the consistently aligned major Reliance are significant very market. I space shareholders micro-cap into committed company the can within are the that my we InsurTech business the I the stock as and I establishing volatile, and the especially shares completely am building force with interests and under management's open brought millions long in industry. to the for been

which begin We have for we another to shareholders. believe unlock I realize tremendous earnings believe of we've XXXX exciting date, year our value benefits be model as a will scalable investments the highly business with I help potential significant to will and made the

turn Financial the of Joel? Global, financial the to results for will review call who I Markovits, would like our to now Chief Reliance over Officer Joel XXXX.

Joel Markovits

million very excited million. Ezra financial be today, from you It's was XXXX. and that year $X.X XX% in afternoon, XX, good results with Thank represents as company's approximates. mentioned, ended $XX.X note for all. Please This following wonderful all Ezra, increase, a The to figures you. XXXX, are I'm share much, December the and presented here revenue phenomenal to the

attributable is as growth acquired new we increase as the organic substantial This in XXXX. to primarily well agencies

amounted totaled the wages General million advertising side, year. the totaled administrative in $X.X totaled Salaries million $XXX,XXX and compared versus in $X.X million they year. prior XXXX. million XXXX. expense prior $X.X in and expense million expenses, versus to commission million $X.X and $X.X Marketing $X.X to in to $X.X On compared million the

both from With regards to full their and in and $X.X management during our amortization, increased The depreciation XXXX the [$XX,XXX] to acquired in fixed assets. Property, $X.X expanded primarily plant Increase growth tangible XXXX. to we fixed to Increases million equipment compared million are acquisitions. business assets expenses reported in from agency in intangible driven stems activity intangible assets XXXX. our and due and combinations by increased our XXXX additional million. and $X.X primarily assets operations, organic resulting is within company's by and

We year net compared stems of swing reported The the of the the of the our the fluctuation prior other of liquidity during million year. value has a or performed impact primarily net the $XX.X $XX.X current warrant of million $X of company. in reported goodwill from impairment expense, we $XX.X to on income regards $XX.X With versus cash result previous other The a goodwill a in million [charge] other charge fair million year. the was derivative or This liabilities. P&L by company. income in loss evaluation to no of

swing narrative Net $X.X basis. XXXX, The the compared positive provided $XX.X P&L net million million to just is prior December on income a was year the by a explained the in line-by-line for of XX, ended year. loss

This remarks. discuss have. comments open answer may the any kindly We'll questions please. to lines, concludes be or our you Operator, prepared happy

Operator

Reily question from from Hutton. is Your coming Instructions] [Operator Ed first EF

Edward Reily

strong Congrats during break on agencies wondering what year. the you're I'm to down organic growth growth during rate the the year. able top the was if the line

Ezra Beyman

we by If think can agency maybe... agency, I go

Edward Reily

total... just Or

Ezra Beyman

not all, at know I it but I XX%. hearing think was I'm is to about every agency, I single -- XX%? numbers, not I but remember on in think round have I'm growth, I going least the think organic believe, -- I ones, The sure main it

Edward Reily

partners growth on some us Exchange and on on to color the platform? strategy grow could provide then you you're the that on the how with platform, And partnership able maybe marketing

Ezra Beyman

Right.

we're going -- share that. that's to to So, proud

of relatively whether it's able captives working, to and the our nothing cost and typical going dollars, hundreds -- targeted XXX As spending XXX millions tens, or tens, opposed audience. marketing Americans we're very And very that build. actually. the agents marketing InsurTech have agents, after that's after targeted way we is almost exactly X going existing or a independent not have fortunes, we're because We're audience to on we're of to or so, million why really close existing so of remember, spend to sometimes very that's they not companies are

given from go actually directive so which recruiting and given We've it's staff, to or want we go up almost to cost, agents the the revenue immediately. the bring X after who -- we've add recruiting XX a approval that to to added we've on to only emphasis experienced table the big now, recruiters like

concept spend -- the And of recruiting of of and working. And are, as doing we're they going is we're marketing, that. in get So, that of doing, really it's proud -- they're proud see, compared concept ahead they're very just they having fortunes the jumping. not once we're we're to you what wherever to we're wind what once,

be the go to to hope we Now, line. the reap bottom -- to able

barrier of have or franchise we that joining so There -- we'll fees no don't is threshold us. have

quickly. pretty So, join they could

Edward Reily

And top then for you the of if to great. the Exchange share you you strategic recently. add life that And year, the in products fiscal a would to maybe future? types your What insurance you could if added are could -- priorities looking some of as product maybe XXXX other be

Ezra Beyman

this experienced XXX biggest, of up, we mentioned really us. largest, goal -- quotes the Farm, customer, goes think it's ramp going very we a gives is agents way that was unbelievable not typically, getting a spoke from and but it's his right line biggest in he existing of really with We're about it's I when one a whatever -- tiny I relationship, in one to have to before, chance experienced their the now pretty also and out when in relationships carriers, have you would But the has going we're metric we've as to customer. note existing ways, and think go important that, XX agents happy a the In giving to captive rookies, who go a them he beyond one to mentioned to the maybe has X,XXX quote we're our of State our whether really two Allstate, But in captive before, step agents. who the our a many -- for you much agents. case, that have simple, the doing, XX before are we the going difference. to whoever, after bottom

chance. We're talking of out about eight XX to XX

they we and So, unbelievable. give labeling and see see when place. that see the response them with white is infrastructure in we quick tech and technology independence they the our The

just scaling already spent we're cost. And going really. now really forward, we've the So, technology

of it's So, forward, agents -- experience conservative just us to X,XXX goes going number the go. has pretty and the lot we as told and is just add here runway a line, a add it much agents number. bottom to very we there's The have

Edward Reily

line the for Curious the as of X,XXX to hitting maybe goal that internal mark. your -- time

Ezra Beyman

can't within to a but within the recruiters. about -- the ramping that, say commit that -- to I is to would with up to like I say -- more part year of but that now. I from I'd have like

So, we're of -- we and recruiters. more in haven't the hiring more process

to So, know, I XX a don't months. year

Operator

is Friedman Your next Capital]. coming from from question VKC [Elon

Unidentified Analyst

growth. on Congratulations revenue the

be a basis? in should say the flow is that investment to of should SaaS generating upfront end and be would pretty it correct RELI Exchange that incremental imagine largely I most Given start cash the stand-alone Would business this was high. meaningful on a model, the margin

Ezra Beyman

operation also done. smart is Barra is an the we & existing assumption. operation. much infrastructure that already already cost technology the -- Associates existing We've Yes, pretty from with very bought Remember, a good and there. is The

on It's we wheel. a didn't added place. runway, taking off we And done we're in So, just the we've the technology everything that a to reinvent now we're done, stuff. the have now now way. is with in What and kid just big we've --

major you and realize time. correct just cost. and you're grow recruiter minimal to go most right. the not, is yes, And should look can to the That's bottom here, no line. really marketing for we is the [indiscernible], except potential it's cost, compared the Now, there's part. which there's growth The recruiting to for

Operator

Englander]. question [James is next Your from coming

Unidentified Analyst

original reverse do and the the and I'm possible price the on I now strike back warrant if with to a stock holder. it's the can to company [$X,XXX]? reverse if bring shareholder wanted ask a warrants split, a you the down

Joel Markovits

counsel we're what are it's would that something see way active question. the are But do in that most we I considering yes, can, for Sure. thanks be It's to efficient we a and considering that. it. and with discussions to yes, great question,

Unidentified Analyst

the in if an advantages have And then and don't you holders. then all money, the go there's have street we're raise you because to you then then warrant exercise the to money to to understand once incentive

on it. working you appreciate Okay,

Joel Markovits

be We money. get and to on you're the it, money, and we the want in

-- you So, that. for we're so with good

Operator

next Your coming question from Kramer]. is [Emmanuel

Unidentified Analyst

for the and quarter good any for that's guidance ending? just have you Do Thank current year ending. you quarter

Ezra Beyman

a guess that's Joel I question.

Joel Markovits

potentially as information. And But say -- give great non-material as question. we to overall. we're substantively, hesitant non-public a guidance I good give we're yes, having I'd a will. that guess quarter soon to It's Yes. able I'm material

Unidentified Analyst

they It that Street question. affect follow-up pause Wall will slow in you? to important A Journal want was down. today the How and that AI,

Ezra Beyman

something helping technology. came just like AI. we're recently the the ourselves think humans. doesn't we affect, mentioned out in I not Much pride we're getting actually humans. really And of helping rid AI expecting the -- that comments, in of of that, -- could of just That I my humans beauty know of reiterate in should we're already population AI, our XX% use impact We actually I the they're place. that We're not

our with empowered phone we're more. them. the really not out. -- filled -- information to about So, and done. we We've they're not very of already would for has other, just is done too have AI breathe the into Right waiting against We're worried would that we're minimal have make giving essentially all. it agents be instead In using we customer rest at to if it the AI and easy, yes. And not the the call now,

win-win a it's everyone. -- for everyone it's So,

Unidentified Analyst

get warrants $X the do raised to do million? $X full recently $X million. Did with you have you to Or full get just close on million? the got the that, You you the exercising

Joel Markovits

any offering, funds. Yes, raise were minus to the overall million no, to but received we that warrants the $X cash when there impact cost we closed. got the the But attached didn't that we

Ezra Beyman

Yes. do with Nothing to received. the we cash

Operator

conference to remarks. closing concludes back That session. our the hand will for I now Q&A management

Joel Markovits

all. you Thank

Ezra and this and entire Reliance XXXX team, call. your I thank financial of would on for So, in update behalf like results the to business participation conference you

its excited very developments day. to future forward as Thank great the a about updates and are the unfold. prospects. further you. rest look company's Have growth providing We We of

Operator

This concludes today's event.

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

Reliance Global (RELI) 30 Mar 232022 Q4 Earnings call transcript