Earnings call transcript Q1 2023

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Operator

Greetings, and welcome to the Reliance Global First Quarter 2023 Financial Results and Business Update Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. Please note this conference is being recorded.

the to turn Ayvas, host, now Relations. Investor will conference your over Ted I begin. may you Ted,

Theodore Ayvas

Thanks, and and Good XXXX call. Paul. afternoon, first Global joining quarter Group's Reliance financial results business conference thank update you for

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

at on company XX-Q Exchange In file can the the addition, the www.sec.gov. will well, website as as the its also and quarterly Securities website, report accessed on as company's Form U.S. be which with well Commission SEC's

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

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

operations results largely and strategy, statements about based terms its trends and expressions projections All operations statements. financial than statements condition, of expect, results operations expectations forward-looking conference future intended future this are anticipate, and regarding it the are forward-looking words intend, the expectations strategy in our objectives facts These should, business call, similar short-term other of may of historical that statements negative for contained likely, such needs. project, words will, forward-looking statements and operations, affect continue, financial plans, and plan, events long-term of could, terms including position, are and our to identify company's financial may, other and estimate, seek, believe, The future and in statements. of might, design, believes and on and current

of XXXX. uncertainties, These Commission company's this could risks, events States March XX-K XX, not and and as are circumstances the statements. Exchange in those Securities risks, in to subject actual on forward-looking in results materially forward-looking and the differ adversely these Form implied uncertainties, with discussed forward-looking Because may from call several assumptions the and or described conference and filed and United statements the assumptions, occur, anticipated

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

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

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

the You by should all the and in evaluate made company risks forward-looking uncertainties. these of context statements

to Executive will Ezra over the I of Global that, Ezra? Group. call Office Chairman turn Chief & now Reliance With Beyman,

Ezra Beyman

to you, Ted. joining for Thank Good afternoon, today. and us everyone thanks

to outperform are and pleased our revenue larger XXXX, attribute to effectively RELI of Exchange to XX% with ongoing our enabling agencies strong with in partner provided We range success platform, even the compete to forecast our over of and same performance subsidiaries’ XXX quarter agents, them continues the demonstrating period first compared grew independent to we on surpass presently insurance extensive agencies. business tools of the the national XXXX for the to expansion the operations. that announce

initial was centered experienced the rolling less recruiting our Exchange, newer, the partners to out strategy RELI of on During stages agency platform.

agents to platform's and more our focus with evolution seasoned growing to and we cater client have the However, we bases as robust out possess growth, continue who shifted the building platform.

offerings to rate that limited a presented, of XX% XX%. single carrier, product a to the due bound close to were only they we agents, insurance carrier most particular Traditionally, and achieved

of excess they believe we rate wider in their ability due variety XX% of On the platform, third-party offer exchange competitive RELI reach quotes. to can a to close a

clients. insurance on to provide RELI insurance seek present order exchange rates home We insured.com XXXX, RELI products policies platforms. one partners over This and showcases In five-minute necessary minute. companies technology the partners to XX agency a and insurance from our introduce to properly life tool agency compare exchange and our life can successful life that The than new less continually expands we in insurance quotes offerings. February, life company's tool both life integrated the quotation insurance capabilities insurance their into and our real-time with

agency quotation new enhance will BXC valuable The value improvement on and while bolsters platform. the to platforms, inclusion the communication their toolbox. of each client and the both up proposition resource tool speed adding a This for policy binding, BXB

regarding options most, the coverage pricing. mission Additionally, the the best their the it matters remain our dedicated to clients investment. transparency value guaranteeing receive in consumers assisting We while them expected obtaining insurance of to what for and available complete offers safeguard they appropriate to

engine in intelligence was artificial autonomously engagement, XX% February closing and by agents. implemented a customer it for smart upgrade new system a application, significant efficiency a CRM a experienced tailor-made out sales, through guiding platform agents of of Exchange as step RELI that increasing customer's providing Concurrently, rolled populates timely coaching. The state-of-the-art every

reinforced customer experiences, more instead, AI-based leading While These them, number greater a agents upgrades quickly amplifies distinguished to integration a enhance intended quotes and to of innovator. position an always significant, superior as these have This us. has in interTech a provide replace commitment they force are our the experience. InterTech arena aid-based they stature our are engage improvements latest as our assess to technologies not empower further cut agents' where

of RELI to latest business. an grow and services, via informed University In keeps training new and resource -- the the with This available learning educational March, industry our The independent insurance sorry, industry. as novice development, for both seasoned and them partners. empowers knowledge comprehensive Agency and platform and is RELI entire carrier them platform designed Exchange launched of technology regarding in unique their suite in-depth in-depth tools I'm equips agents an innovative RELI Exchange, products, we the and

an those field and partner. specifically experienced new RELI of University the catering resources University boost success the is to offers optimize partners to of agency array insurance designed productivity of each to agency agents the extensive our to both RELI

encouraged on collaborative RELI agents, atmosphere. share improving for is a Agency partner a are than agency of proud Global. Reliance cornerstone It Exchange spirit partners are the can so of Exchange short extremely each partners business. fellow very genuinely time write that feedback all Agency agents cooperative they other more help what in we RELI Additionally, such to call Growing at to fostering span productivity a is more something XXX watch is This their of community. satisfying to we that

in that I turn I over $X.X the converted price of RELI a quarter, discuss to a into $XXX,XXX company that of for market Before to that to price a February, XXXX shares call at first like the above loan I held Global closing Joel the results our was would million highlight that beneficiary time. significantly I financial at

our utmost was a demonstrated ahead market the a provided to alignment significantly loan at RELI shareholders order the confidence note and complete portion favorable growth further in original above company the extremely then for by the all my of to terms of the Exchange, shareholders price, in business. converting accelerate market at to it bright the with I The price future protecting interest of while

in of industry. previously conclusion, at RELI inception a tremendous Exchange was and July forefront its Attributable of scalable, dedication since in agency outstanding our to the growth us has seen the XXXX. unique and our steadfast business partners stated, highly as commitment, model In team's both placing

year. cost quarter while first time strong to our We of the forward we is with operating of operating believe company to to continuing results, performing well flow proud on revenues. note positive position to the margins. by are basis at that become our a success same efforts will management's look which this We and which operations growing healthy standalone reduce in It are later demonstrates cash the agencies and important profitably trajectory, streamline the

Financial at I Reliance would Joel now like to call the turn Chief Officer Markovits, Global. to over

the review results will financial quarter XX, March for we the XXXX. So, Joel? ended

Joel Markovits

excited presented revenue a year. be the This March months much, results present first in approximates. here same Ezra, today. that the company’s primarily you We're are increase ended quarter company's XXXX second period $X.X Thank acquisition all. afternoon for is the Great quarter and three Note prior XXXX. financial million. good figures Exchange. growth to XXXX, The to very for from Increase the in million RELI the of XX% $X.X represents XX, driven in was by organic for

XXXX. totaled in months XXXX, for million QX for March Marketing period. comparable XXXX and the this XX, from commission $XXX,XXX Depreciation quarter, was prior XXXX. months the the administrative for QX totaled $XX,XXX for wages million totaled March $XXX,XXX period. for the $X.X G&A versus Salaries the $X.X XXXX QX in XXXX $X.X ended the compared $XXX,XXX XXXX, $X.X and 'XX million of in for expense and versus three ended expense the For of year. for million period same $XXX,XXX to amortization period in versus advertising general $X.X expenses, down was million and XX, or QX three comparable

to other XXXX, for XXXX. attributable value a of warrant million prior we reported approximately and net of for income of March million to is XX, in liabilities quarter loss expense. compared million the $X.X a the compared regards With $X.X ended other offset loss to was the the net March of expense, year. for income of million three income for ended interest in same $X.X period fair $X.X XX, or the by the months change three primarily Net other XXXX income Loss first months

proceeds provide and the receiving, and XXXX briefly with company. investor company's million Before securities selling closed on balance liquidity March to with a respectively, let's the highlight mix shares we capital additional the and a call net sheet. of institutional favorable and open single questions, $X Proceeds terms gross warrants private a placement for $X.X raise. purchase and through million of our strengthen agreement a Company

questions With Happy comments, kindly or that, open conclude may prepared conversation. our for remarks. lines Operator, to have. participants any the answer we

Operator

Instructions]. you. Thank [Operator

EF line is today Edward, Reily coming live. question Edward Hutton. from First is your from

Edward Reily

positive the be in that Hey guys. cash Nice hear later year. you to will flow

of Just the have? business of to needs the to the to end by expect specifically number what year for be the within you partners you to happen Exchange wondering relating and RELI cash-flow-positive

Joel Markovits

can you and I for the Ed, first, question. Yes, go thank

implementing, are efficiencies we mix as of So, I well it's think and measures revenue. cost-cutting growing as that a

privy with company plan things there's now, these see may the not in be in you that plan we future. grow the fiscal year. to but strong works to this we here right the in do in results continue As that discuss And we to other QX,

I about Ezra a could Exchange, speak RELI to maybe little that. bit have Regarding

Ezra Beyman

think important. I Yes, that's and

it increase go. is and focus agents we're not to opposed our it's a immediately, it As much to experienced zeroing We mentioned the expenses have set else, really in we actually except and we agents really commissions ready is bring the in scalability because Those the now that being we on has doesn't as on earlier different platform and have do would the up for expenses. coming my revenue pay or increase been primarily have in base revenue rookies, in out. remarks, not -- we much But agents. everything almost XXXX, be whether set, XXX set when

get So, as added nicely. take way geared up team and much and we've able should line and that the we're corporate really does line XXXX cross the be we -- being team we to adding else, recruiters everything to talks cross with and all We and ramp before the and not with agents. it's had it up the to are extensive the

Edward Reily

increase Okay, maybe great. the I should revenue year? throughout experienced modeling sequentially more for per expect based on purposes, strategy the of shifting towards And to partners, just agent kind

Ezra Beyman

whole of of mean, That's agents Definitely. coming, remember the them point. have XX, substantially, they're business. XX be some these five, should I when years

a definitely about they can talking significant when revenue in you increase very but about some experienced the take, Some not, we're agents. talking

Edward Reily

could might then Yes. Exchange. if was affect talk partner and maybe that Got RELI it. acquisition And within measures about wondering how I you cost-cutting the

Joel Markovits

Yes.

So, to impact we acquisitions. or it exchange don't RELI partner expect

that I of there's believe a think already to cost. very much date. minimal we've cost invested, And I

impact measures cost-cutting have overall So, think will the for that we I planned the year. that, don't that

Ezra Beyman

I a expenses far of zeroing between the certain as Grant, who and sharing was we agencies are And our executive really But experience. his team, is -- of looking say and also that's instrumental. Grant streamlining lot Doak a that how as a well he role at I Michael running, of part different will and been very in, because with now part we've comes been mainly exchange has

mind -- and other you things efficiencies are already which So, we've could in there some seen is very see we cut, have the as substantial.

about things So more talking about with other somewhat and couldn't adding speak that, adding some said, that even of as we the Joel not and the combined agents, tremendous, yet.

looking willing, We to forward really strongly. the God line. are very crossing

Edward Reily

much. Okay, great. very Thank you,

Operator

from And Instructions]. your live. question the Elon from coming is next is line VKC [Operator Elon Friedman Funds.

Elon Friedman

How Thank RELI national larger Exchange the outperform the even does business you. on and help agents tools agencies? with compete

Ezra Beyman

I'm your time. sorry, of part question. I wasn't One clear the last more

Elon Friedman

How agents even business RELI larger on do exchange outperform the the tools compete agencies? and with help national

Ezra Beyman

have Okay. basis. in involved was Actually, be daily He's RELI here on [indiscernible] going very you. I to exchange answering a

Joel Markovits

tens that you of national with which We're really one a are. for client agent agencies, different to we to that only coming catering question. captive options question to That's Thank is a very The the common carrier, client. one when than dealing a product, we're with independent for selling ask. the table is

married of value that competitive in at a particular much to agents competition not a looking providing not it's price. that's a regard. carrier. are They're People So, for

Ezra Beyman

I've always extreme giving their really we're coverage. emotionally said saving policy gets competitive. competitiveness, cases, if no insurance And the some basically that one same to we've And seen attached limited. when in is -- make XX%. take more the only sale, but particular carrier, from cases, it much In people sell they that it like they're some whatever can doesn't to much they're

we've So, success that. with good seen

Elon Friedman

question. Thank company XXX,XXX you decision Reliance on to shares of one share convert a last million Can $X.X you. into Global? -- And your of to elaborate

Joel Markovits

public, private by mean done I a confidence in way. the and in guess could the before anyone becoming of I it's million say the have my have knows company -- company, into I that I pretty besides big the things we've world straightforward I successful lot confidence who you invested and company I the X$ was that's that

the and my executives just that. I put comes all So, money is big very my to very the a do [ph], committed guess take company lot of I to we I'm milks true typical street. street I I the my didn't NASDAQ here, of it's salary. I've show the I a I where and my confidence. don't think a growth and is, my don't money, -- None do. put We can cliché We're mouth mouth been that think, simple

Operator

the remarks. you. Thank questions in team queue like other hand for management were to There the back would time. I this closing now at no call to the

Joel Markovits

joining Reliance Thank and quarter of conference On first behalf we financial business us update you team, this very for Edra results XXXX and much. call. entire the appreciate you

staying We new you. potential. that have day. rest and much enthusiasm and the in for informed great the company's Have future touch you growth informed. Thank We look developments a forward to of keeping

Operator

you. conference. conclude today's does Thank This

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

Reliance Global (RELI) 18 May 232023 Q1 Earnings call transcript