REAX - Earnings call transcript Q1 2024

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Operator

Good morning, ladies and gentlemen, and welcome to the Real Brokerage First Quarter 2024 Earnings Call. [Operator's Instructions]I will now turn the call over to Ravi Jani, Vice President of Investor Relations and Financial Planning and Analysis at the Real Brokerage. Sir, the floor is yours.

Ravi Jani

Thanks, and good morning. Thank you for standing by, and welcome to the Real Brokerage conference call and webcast for the first quarter ended March 31, 2024. joining for everyone appreciate us today. We on Chairman and me Michelle our the Srivatsaa, call our Poleg, Ressler, Officer. Financial Tamir are Chief Chief and today President; With Executive Sharran Officer; quarter press Real morning, our the XXXX. published earnings ended This release, XX, March an results including for first The press the with consolidated U.S. the with financial management's related filed and release, have analysis and been along discussion for unaudited statements the quarter with the Securities Canadian regulators and EDGAR Exchange Commission on and on CEDAR. securities

that future started, the call to get Before may I'd this historical remind everyone be statements. made like conference statements we that facts, to in including time deemed not are forward-looking statements constitute about periods

in or results factors required disclosure documents update our please turn and Chairman differ expressly Poleg. may disclaims Officer, statements, by these like except from call and Tamir the SEC law. actual reports. and over that obligation as forward-looking to intent these these I'd risk our to cause Real Executive the statements, that, detailed to forward-looking Chief Canadian proceed. With Our could any continuous materially are differences Tamir,

Tamir Poleg

a and and estate need firms, a technology morning, highlights. Real industry. real agents office financial is experience, recent you, traditional this we combination Good collaborative taking are will with closing our which company proprietary results is our our will culture agent that and actions a Michelle To before physical and provide Unlike an incentives, few to that the eliminates believe technology platform, provide financial and unmatched call Sharran provide remarks brokerage differentiated estate for is quarter. on the space software-based a in with unique begin, estate an for industry. we some real provide update opening business in-depth of Q&A. will real in up we of our discussion of drive Ravi. an overview agent I'll more start growth thank strategy I improve then a

Our encompass home to grow life's businesses In individuals, short complex all simplify includes the and as experience client could also experience ancillary they enhances the services of products, financial services. tools, transaction we of homebuyers as which term, technology term, of buyers app, of a both agents with most providing a that offering. mobile ecosystem the planning with and matures, by resources higher-margin avenue providing and generational is the sellers. delivering is seamless long sale our for the a payments believe to and and rollout streamlines vision to to agents need this build platform their wealth. In Real and purchase vision tools, or our breadth a One attachment while consumer-facing technology expect from an our home Ultimately, sellers the holistic platform investment we of benefit the

Our role in goal and our is the industry. of real estate brokerage in the to redefine housing the of broader agents lives

to in grow that value. our like company, everything we intent is with is also our just do why of long-term our shareholders are institutional Importantly, many and the agents investors, shareholder

first increase to first with to year Turning the to million, first adjusted results XXXX, reported by revenue the $XXX closed, of Real contributed quarter favorably $XX.X the first driven quarter the versus the ended year prior XXXX. to by average quarter. is quarter from an up of the Gross profit of record a end first quarterly versus quarter transactions overall quarter for of increase XX,XXX million in record a straight agents given quarter. the with This revenue EBITDA agents, of of XXXX. increase of XXXX the transaction. from XX% This and was our the the industry significant first the the year We a $X.X XX% in increasing X% X% negative the and and million morning, traditionally improvement during quarter marks decline industry. and is XX% number of quarter the transactions with in per prior a combined fourth of encouraging EBITDA in This lowest in $X.X the adjusted over particularly positive compares a of record X,XXX also in adjusted million, EBITDA

and driven discuss, will it than which makes has growth Real. part been high-performing launched acceleration private align Sharran brokerages As our and teams in year for easier in with ever label this recently proteins by independent to the initiatives,

businesses are becoming more typically apparent by mortgage organic. our are These and to are and that ancillary grew brokerage than XXX% brokerage business XXX% that mortgage addition to alone our margin, our expanded versus higher year. Notably, over all lines title combined our gross business implemented initiatives In X Xx gross a year-over-year, pleased impressive results, growth ancillary by margins average command prior our we the the we have results. in

the lines, are to on in of both the we we Importantly, Fed XXXX. our be interest environment the rate brokerage industry outpace to continue based volatile core in revenue business respect obviously, potential delayed. growth backdrop, With and business ancillary remains overall expect rate cuts broader in strength timing continues to significantly seeing growth to

ahead. charging However, full at are Real, we steam

to unique X quarter of years broader to grow rapidly, demonstrates indeed the business over value differentiated irrespective agent this thanks environment, macro past model proposition. Our our our results and the ability and

season, an we XX% prior the we outlook on year. versus based about currently which enter the enthusiastic open we year balance for transaction is high strong momentum are selling at over remain seeing all-time up in our the the peak and the the pipeline, of As

app, the to expect we completely we to rolled including a interface, make client continue out and On front, redesigned our enhancement the be coming One obligates to product further quarters. consumer-facing in

for our we expect we required such launch protocols product on product our over to rolling delay year we Sharran to soon regulatory initiatives. track wallet XXXX, remain to that, novel finalize necessary our we this and Regarding update a the as establish it banking wallet, in still turn our launch the With out agent for growth our work. real compliance the with for look although and an in a initial crucial as I'll as the on primary our base partner partner. We forward

Sharran Srivatsaa

Thank you, share a little agent different growth excited something simple try I'm to update and Today, Tamir. format. a our X top in

report continued X,XXX Canada. So so supports now a today, the let's quarter U.S. has start thrilled on I'm quarter. we increase as agents Tamir across of since did and As And how all this year. agents, of that to ended the one, an second in record dive the momentum Number in. growth? far first XX,XXX we agent mentioned, of do the with we agents XX,XXX

most realized XXXX, the you everyone brokerages in label the joining a number of four, no models who the brand. or independent future list many our through built recap and associations. of spent in economically curve. join commission wealth my media initiatives no-brainer number can It's from high This true January? gives belonging buckets: teams power I Number team to We their and what partner a them two, let various keep Where are year two, in for having their of current built or through on our over and This software is build I brands agents I plug affecting their X is regard. that brokerages agents. industry platform. So onto in private in I for advantage, This and fact, individual built And training learning announced on the to brokerages concept time calls an structure this the they each events hold we and application? receiving secure like technology, when I easy-to-use can sense Number also Real. XX an they and our that incredibly culture. agents, a because Real. financial can of Real. and to looking for this, to so groups fortunate one, successful even to label that that and and model. me in have earnings and my model, Private responsibility brands allows plug why country. and model especially excelling years allows the private because focus have special relationships a are market. the run into housing port cloud-based a time ProTeams be and question, messages agents Real's considering three, was team teams allows that has is software Tamir own to from can without there years lot over move that potential these fall the still and unique I we the with boost platform. real unique distribution to real why. physical They the I America, receive where business efficient position XX% just creates know of agents question and connected is go put compensation That unique do and for solution seamlessly, silos family. offers Number are hard. you. economic a and It mentoring. help, so keep groups distinct business brokerages proteins the challenging in in e-mail that about portability it's North a think the or the in economic we my network where teams agents of immediately given my the for estate with on allows label of sales. These this tools Proteins piloted typically ProTeam their independent either and end essence, some whereas to dynamics don't following when speaking ask had to us last the software these that can personally the brokerages three, spend and and allows my joining the competitive brands, reasons that lose in a without private been a number a over agent conversations, have I'd over joining solution a big can with its often Real Why label social an easy it platforms, integration a entire building are business privilege offerings or play to and integrate model for agents but really call that great the how huge In guidance is my So economics is

that is label sizzle. companies In label expertise white say offer it Number actually and essence, but for some an brokerages, has without further of think stake. I'm fines is private lot it It a solution there ProTeams, to complexities. may uncooked needs four. While like can are trying make truly that potential, what just they a to still

is it support alone, you program, second and be the in we and working? So Real quarter And private over Real seek the brokerages the provides. opportunities this must what quarter than to wondering, joined to XXX expect double label more agents launch capitalize impact? in on this under tools, is Well, more that as number the

pipeline we Now and ahead numerous to regulatory when concerned into These NER are is agent on label potential have private about we X But plus with what and over the in impact about a that like Village agents some requires comes across And our brings mean what broker private at practices, the will considered expectations Real's settlement XXX are us in does changes is industry Premier skilled when training settlement Real and brokerages we company. an high, we label, conversations have me Collection states independent and agent for ProTeam high approached before which growth converting are XXX board. Real the entirely or agent means to were brokerages we it any industry affect have retention. for have NAR explore of would many That XX:X. ProTeam. never didn't how first this private be training. agents designing differentiating outperform have driven for would are and Number our leap the a five, we unskilled to by along making all-time outlook to over with independent California modern visibility settlement the liability with that our mechanical XXX The infrastructure that factor NAR coming label. considering believe the to agent pipeline. teams found a Consequently, an agents, who to

the proprietary our world. now, tools in serve to mastery help with buyer have NER year agents the settlement our and a training they over for clients So been we program, on materials post equipping skills, need them

be X-day later X hosting In going to workshop, special biomaskery I'm today, live I'm where seminar a to fact, into a compress going virtual hours.

have the We a of be have free. this only Not the gift personally training thousands entire agents for I product-based how in a the but a serve shifting expect opened their to on and solution am our we that and agents up teaching for give training to to we're for at the will new also to playbook going buyers agents launching sneak industry as peak clients. market,

in records robust, many a technology transactions this mega agents have who hours to by to spare aided leading brokerages more is join to turn at our us With that, personally industry, agents, to quarters our Michelle. thank settling love in we'd welcome tirelessly to us. we influx are teams X that joined expect in teams I'll and afternoon, platform. processing the and pace have I'd transaction you the pipeline over worked like ahead. have this our the call who and and unparalleled setting this The if that, year have to you is manage operations onboarding and new who So teams of With

Michelle Ressler

quarter a X% quarter strategic million, in XX% quarter of Sharran, XX% revenue. XXXX. of which million a XXXX totaled an in businesses growth One growth of in and and in an first you, driven an of increase brokerage from $XX.X XX% quarter real first This the by for new reached increase the you, Thank for Revenue in an a real our of one was driven profit million, during increase quarter closed, which and was $XXX XXX% mortgage title Gross business $XX.X quarter first the $X.X margins, first XX,XXX transaction. the increase XXXX per margin versus of first from ancillary in the joining to of rose year-over-year in basis Gross higher point of by represents increase XXXX with the first from XXXX, the XX% topped of prior thank quarter attributed our of Revenue ancillary transactions from record. XX% a revenue in average and to our of year. both quarterly XXXX, number increase actions is business million us. everyone, primarily saw versus revenue, increase XX% the of the the XX.X% quarter contribution a improvement taken The increase first combined XXXX XX lines. in to

adjusted our our quarter totaled agents cost to sold compensation stock and from goods As of where equity, a certain of to reminder, in our include Real in vesting stock-based the This commissions $X.X compensation to in opt subject program, tied part requirements. calculation amount is their can purchase line. agent EBITDA the excluded stock-based receive million

fewer of of XX.X% settlement. include XXXX. of $X.X million $XX.X Operating the ancillary administrative, lines marketing, was recently in continue class third with the expenses expenses incurred their in cap. during of the XXXX With quarter, we of proportion business improvement $XX.X reached Typically, as operating our agents include seasonality in revenue first that have R&D expenses, driving scale. announced margin commission there influenced the quarter on by of who remain generated cap year. increasing during by with litigation first agents to million and our Additionally, basis, quarter reached margin quarterly or is always litigation-related which rate XX.X% and acutely or of the annual our revenue to an annual during connection particularly percentage quarter gross revenue first the year-over-year second this and quarters action number gross focused on general said, million expenses, Total the its compared

quarter, operating quarter was Excluding increase new in $X.X would expense percentage is of basis from million the expense, an leverage from first of the as demonstrating prior litigation improved XXXX, expenses, million revenue Revenue the our $X.X in first points marketing expense, a inherent in over XXX platform. which XXXX. in operating the total have quarter share included of first by year

prior strong cash in help makeup in from X.X% operating to net the $X.X nonvariable year. of operating driven million the of of that share depreciation a is in improvement to first the point X.X% unique or intended quarter operating commission share in $X.X and improved of We our in that Real's a changes expenses. entirely first the uric of to XXXX, new and first million significant totaled million variable to Adjusted loss revenue, agents stock-based XXXX. is from second Real's expense the to non-IFRS a XXXX portion Adjusted of million quarter $XX.X share, declined split was first growth, announced is litigation paid the compared compensation, who increase XXXX. to items Note profit the recruit a due noncash net XXXX. of operating revenue expenses X% that reflects in revenue, investors $XXX,XXX of growth first outpaced the In a agents model XXXX revenue in understand quarter the $X.X expense, cash our the and revenue As of Adjusted quarter EBITDA roughly brokerage. quarter which X.X% to the XXXX, half XXX $XX.X last was expense expenses of revenue our of part first in which share quarter reflects of revenue operating or basis percentage in year. including million of less gross by improvement from fixed quarter in is of the loss first negative ongoing other expenses. total we

unrestricted Cash million $XX.X from cash of increase operating $X.X compared $X.X of and quarter in approximately million $XX.X investments flow. We end of activities was quarter first XXXX. from cash sheet in XXXX with balance flow the an the of and the of quarter XXXX. million first our to to Turning million, the ended

During We to with remain $X.X to well capitalized continued return fund capital the quarter, our share repurchases. to to liquidity million shareholders. we growth while allocated ample continuing

price manage will platform As we total always, $X.X along about. value to a in capital billion which close costs of To of The our home transaction increase. acted first agents KPIs he focus test technology quarter to of with an expense XX% $XXX sale year-over-year recap commonly to effectively, the in of asked a X% represents platform. XX% are few from or commit over continue median XXXX, to we Adjusted our by long-term and operating The XXXX, diligently a year-over-year properties first increased shareholder value $XXX. on allocate the sold creation. was quarter the declined increase. and by was $XXX,XXX our enabled per efficiencies year-over-year

cohort the of As of first first commission their of XXXX XXXX. annual quarter the the represented cap, This XXXX, exceeded of XX% X.X% of end from quarter. accounted commission Canada X.X% during XXXX. approximately to of agents the had compared revenue quarter first first XX% down the the in XX% in commission quarter for of slightly revenue during of quarter of

that as to efficiency be of productive. significant on agents agent turning given divided and first employees, platform X ability X and ratio, X at onboarding said, well they to support significant a to XXXX Real excluding add agent our mortgage acetic all from the a making we the the and count, necessary which count. head the improvement expectations, full-time hires our headcount number the experience require the demonstrates reached Our agents ensure adding of at without are growth select quarter full-time most XXX our to define which significant teams the employees real X agents has end to receive quarter, of their in With first to end our platform exceeded of XXX real title the for record by and new we new

release adjusted call. Lastly, and results earnings in expect in while and it gross can are my turn that year-over-year concludes be EBITDA presentation press I details investor now not back we providing improvements found financial This to in to profit continue significant our XXXX. metrics guidance, formal on revenue, Tamir. the deliver key More will remarks. this and we operating accompany to

Tamir Poleg

our Michell. $X.XX we and you, allowing our We action decision company and Thank to April, believe settlement pay building best litigation interest into in agreement the agreeing In us resolve time a resources million. our was entered of shareholders, lawsuit pending on class the future. to to a this focus

settlement to While changes an impending for from opportunity we but to emerge practice resulting that brokerage impact We sparked NAR several developments reassure have about their the this for much stronger. everyone the view real challenges, as believe even these on not want the as speculation I instead reasons. industry,

in in real First agents clients' believe and role which the to role and if our significant firmly will foremost, we both high-producing the estate like most agents this transactions represents available ones buying industry, lives. transaction. our a productive play for affiliated selling and the home continue process, the sides of complex valuable play the in often estate less We biggest real to know And leave were agents more with on Real. agents leave would transaction

By Second, than economics. our direct we math, highest of in revenue best-in-class the XXXX, share agent percentage paid commission in we'll public revenue offers out and peers. of any splits our

any could agents would be brokerage missing Given future business out about motivated other with those find owners, significant that earnings. commission real affiliating economically that rates than concerned are on

high-cost we in in more our the from likely trend seeing robust out efficient high-value ours this such, growth brokerages traditional already accelerate years of migrating thesis the play anticipate to models like will numbers. As agent agents We're ahead.

proprietary competitive our technology Third, a driver to be of will continue advantage.

over traditional our investing experience catch predominantly Meanwhile, on the intensive years. physical office with On a we and to significant who order been software and us on us for majority vast recent technology. up human our consumer traditional time to automating would the the in client resources enhance of and invest side, need advantage have operations brokerages to the space scale and technology processes. in front, to significant rely transaction management who with by This allows cost efficiently provides rapidly agent-facing

transaction the app seamless, the and deserve a that one that the built principle clients experience modern digital enriches streamlines on was client Our journey. process real

already overhaul we agent, As concerned we innovations our in our the cost about company such automating bio programs to Moreover, coming to user process with executing who on mortgage value buy-side as of lending real decrease one additional of out-of-pocket scenarios provides that where potential clients, homebuyers working its partners the not costs will increased those one months, agreement. attachment the the digital broker This use agency are business complete also retaining significantly is clients interface but line. real of opt closing drive could only tangible of be introducing in mortgage. of this the high-margin

consolidator, Lastly, we organically Real positioned across anticipate brokerages via drive consolidation being that disruptions is industry. be share traditional than will strategic rather M&A ideally or consolidated. within to a greater the either

seen of looking by their like inquiries Real. future from aligning inbound to traditional increasing innovative We with brokerages number an players have secure

decisions. journey. pleased forward partners forward always, extremely As versus build high agents, from look propel to conclusion, we a navigating in our ahead hurdle In our our us to evaluating continue and industry and will on in disciplined buy this I'm rate employees who position opportunities, our Thank strength. with to you applying be a of quarter changes extremely such results the

to the Q&A move let's Now session.

Operator

Aftahi first is Instructions] Your Roth Darren from from [Operator's question coming MKM.

Darren Aftahi

of in cause of is to on bit how -- little kind more the you handicap the bit Like on little agents little -- and can impact an prospective I just of love appreciate question on very in the this? conversations, just a regarding pipeline the settlement. big results. of But a of you Sean means on it, to I'm job Nice touched opportunity trying effect impact cycle. teams. kind a it's and from on terms this trying the new color. NAR understand have I a but what if bit touched give early really your just

Sharran Srivatsaa

Then early -- high of This baked us happening. what's of things. Darren, the implementation NAR this because is reason, of inbound XX so Darren, main One, a are all happening that have baked until impact future the fully what not one has us this with exact conversations is with X level, settlement of very have -- brokerages are Absolutely. August on given seeing the the several out. been regulatory for to at has the headwinds out.

is visibility So we'll which and all happening lot but over next proteins have one are inquiries and think happening, major offering. quarter, this more where inbound private label into for independent I a the brokerages these they're reason,

independents have all they a feel can So that have home. built something the like better

So on what one in on landscape they're trying end. hand, is out other to the figure the happening

We the feel are the early -- like we're the destination for least conversations. at we

forward this as the quarter. looking with you bakes of over more kind to next sharing So in

Darren Aftahi

you teams been and Great. if teams your And more just longer and are on and KPI. about some on of the like longer of time. agents churn for like of the that seems if get that what Obviously, one in producing of material amount was, sense a some agents just of be for X time, one curious, projection I'm have trying joined to sure your to last forward? I around that sticking and had going guys is I'm just you to been looked two, levels of one more, look those lowest kind maybe what I vintages, could longer It just productive for then kind highest talk a expected platform could. agent cohorts with the is understand for a a they And like think, churn, it but quarters. the revenue it's

Sharran Srivatsaa

Sure.

low. is the X.X% was extremely churn revenue quarter, yes, which So for

to sometimes that a What we agents that individual team years. lowest it's is leave. we seen that Real. rate the platform. think I extremely typically are we've rare in And see what for the teams seeing is It's rarely lead leave

We been little bit a pleased are it's Historically, higher with than that. very the X.X%.

the also productive that the our overall, expect have built teams. And fluctuate this to in we're a compelling that mind agents, second, the a into think that work for future. productive team there embedded are we economics takes enough well to fact large not retaining model number I of that good teams. especially brokerages. that really to the retaining a the is change job in the But most there, and out at in platform our typically fact We testament Bear high-performing case And doing alternatives the all also, a, teams. while

the does ones and of would a enjoy a to the compelling and exist. benefits here order opportunity the that switch outside really that currently on opportunity make need So are platform in not all

we a job So at good do retention.

Operator

is William Blair. Sheldon from next coming question Your Stephen from

Stephen Sheldon

the proposition confident like testing base? your really with you Starting It results I a in value at out to of agents you But you away pushing you're this monetization think recruiting are on had Because how gross full and with side. along And it? real to how could thinking being be regulatory and all are of here. about it ensure agent about the thinking impactful nice Tamir, March. back least source agent with you're another the changed retention, launch sounds some few the profit? about your wallet at squared to started has How

Tamir Poleg

not the at with start of the our due expect end next launching and somewhat earlier, as partner side. the to testing maybe on testing mentioned of delay of even one. to have some banking Stephen, this the do quarter, I if wallet the a beginning we of delays We

view reinforced. Our maybe even changed, not has

more that joined are wallet. So conversations we or excited a the the ones lot extremely more now with about agents, teams pipeline conversations recently the that teams, have had with the in of are

before. than even are more bullish we So

attraction build all that agents again, I attraction testing the as But that we're wallet point, own it attract the but started teams for do their an agents haven't just individual and the the we we point of around kind and teams huge wallet. scratching think It's can to we to for team. possibilities theory, see both of in yet. a surface

to starting that and us So receiving forward take looking everybody it use couple is it, and months. product will to more a

Stephen Sheldon

how And and Sharran, what where of XXX-plus momentum pipelines context those to to year for large maybe take the team switch to to on Real. of about the hear said? is we some could about it of seeing generally, agent pipeline teams that given looking how teams additions about great large And the over. is agent currently over rest think trends, and pipeline thinking get Any the the just you're join

Sharran Srivatsaa

pipeline varies especially have the same you, teams process independent Thank the minute. at inbound takes just and are sharing, teams. if Yes. Real as was of or they Steve. you for brokerages a the and as moving fact operations, Stephen It's The the team

varied, the the last highest of given probably is the offering. So very years, opportunity and that X this seen we especially it kind have is in inbound

line time models, rail. out figuring conversations is their happening they of driven but the say keep what pipeline, of folks, things. most have brands. one we've given they is big importantly brokerage what's X the the on on are extremely proteams, teams their we're will conversion But their idea them where by who one existing private move, this about have in the the lot One, to label, integrate but that of is this the this metric offering there's Now can just can don't is and part of and I side that on teams had exactly move. have of serious I which a is X a that which sets

board, as a X bake mentioned, fit the come it super early. think private of it's the the are quarter to out in. them, time right takes on the offerings I label offering, for teams learn So figure proteins Tamir kind for good and these it And by or still

are that's So entire process. we in where this

Michelle Ressler

Stephen, seasonality. also just as to mention, you're I probably there's want aware,

the quarters? movement when down slowed agent the the the then typically, a and of So sort or busy QX of highest bit? and season QX end are And selling starts, QX like QX movement

Operator

coming Jones Trading. question next Instructions]Your Matthew from from Erdner [Operator's is

Matthew Erdner

know onboarding? but is Following to vary, inquiry teams get I from line little And what pipeline. it onboarded. your up bit some average the lot the over a take time teams and proteins How and these for to guess, switch of fully on of I a just long, does

Tamir Poleg

I'll take that.

Matthew. as question, teams be can So great fast as want. as or the It slow

offering, the keep if things move which do is that to what So we we have their these only is private necessary when them for label time. state teams delay the that to brand, over in the takes regulatory that see is

on can agents wanted turn move it's XX XXX-plus However, on end probably XXX-plus made we it they that in a team could always hours to because if their wanted turn when if a decision, almost to. -- we say, over time from on to a the today, Real, team we we have wants is let's to agents,

the So on transition right. the good well. And a it's well does communicate it's the it what team the so works time, getting team most of plan, of side thing because is that they they

to says, a I'd onboarded for the X-week X-day them, a they're So ready period to actually a time when it's period go team time, us. and yes, the for say probably they're from generally,

generally the the most the they're that's XX- the they But between So until team, a probably XX-day period. on you're conversation kind line talking the of time size a time somewhere speaking. from start and teams you're depending onboarded, -- of time

Matthew Erdner

Got then further guys as does put at charge? you helpful. you risk on for teams, you. additional Yes. And bring settlement That's guys that

Tamir Poleg

you to related settlement? No. I NAR mean, the are

Matthew Erdner

Yes, to the NAR.

Tamir Poleg

If with has Whatever on, obviously, not, covered prime obviously, our the or that regardless does covered all did reached their join broker to from or also a not. settlement they of affiliation. that covered prior will they their brokerage whether It individually under agents their brokerage settlement. at moment do and they're settlement prior determine not. And has whether they're brokerage NOR their Real,

risk more in teams. agents So there is no more adding or

Matthew Erdner

your rate to through a going Do you. or, And into of to happen there? turning you capture as be get that business? Got then And Okay. know mortgage capture to what the transactions is grows, needs guess, count I then percentage business. you lift the guys that head guys there mortgage

Tamir Poleg

Yes.

with mortgage. pleased on So are one the extremely progress real we

year-over-year, meaningful that over still this they obviously, a next make do I numbers, will our anticipate contribution As grew small to but year year. mentioned, they gross profit XXX% and we

X% terms very to looking impressively. very attach day, real end obviously, -- at those one in more real we and numbers of the scale And they're we the rates, invest still are on title below but we growing they're But will as businesses, hiring the In in. the need of in states mortgage that are operating to both responsibly. scale

companies want very So into breakeven and this to year. we turn soon profit later those both

Operator

in from you. There no queue. questions analysts the Thank further are

Ravi Jani

Great.

of portion opened address we the have we Technologies received some the say last week. that portal the a was Now received the questions number of from shareholders will questions. concluded we call, that excellent of We on analyst Q&A

you participate. to all so And who thank

you First efforts question, retaining while what attracting new one? already are agents do important, that and is want allocate board. to who Sharran, agents take towards do you on certainly priority

Sharran Srivatsaa

and them, they to that's connection that education around on agent thinking and say continuously broader and us focused is over the our doing X a the in very because agent our And will should those us an innovating obviously and and like are probably important. events, the important retention recruiting longer. that to with is about need change ensure providing we've which building platforms summit I made we which When in-person the agency Realex, that supported -- and and all good succeed community business results. in have tools report hundreds we're this they stay Real, tools resources have of essentially and valued estate specialized our thrive real they the a our is months, we're doing we our current numerous get and AI in and because great they to bio-matter and our agents as investments why virtual connection words we've we organization done platform, need we're programs me image, like platform, attraction agent training the which So market. personally. last seminar they and uplifting just is of the it's with to our and today, strengthening But is connection where are results, for that this relationship Through for technology all

both of the focused and piece. traction So we're on connection really kind

Ravi Jani

questions That includes title several had strategy. CTO all Damani, Sharran whether group our together. about that a podcast about could do Pritesh business We and Great. our title our

potential you want also title opportunity title how work discussing a moment strategy, services. business, our Tamir, a So from do the structures to the the automating spend JV savings and just growth cost

Tamir Poleg

Sure.

that our teams. a joint title as productive inviting Title are some of we title early those transactions one What Think it just story ventures growth Tile most X.X exciting things operates. So what states we're more call with per the are -- where is year is in of innings to XXX that form really means in about we real the closing us that strategy. or

begins the to JV benefit stake in as most a the flow, agents JV, positive while employees So income. regulatory provide transaction hold distributions generating compliance each allowing from majority manage will the one owners real to title minority and and title infrastructure, productive venture required once our

JVs has JV to and tied earnings across the a each income a that numerous and As have we result, -- country distributions specific scheme. of level different

relates in we As high-margin XX% it automation, with that to already a mind the is over margins. to keep business plus have fact title gross

is as opportunity and year gross later -- opportunity title real savings meaningful to cost one obviously a couple And basis, mean, transaction, line, about I margin said but bottom talking of will large scales. we're per on both this our our especially previously, provide in bottom and which when still to per the I range and line I meaningful remortgage think on that of contribution XXXX. hundreds a transaction in So it's likely the of represents meaningful is a dollars

Ravi Jani

the for about you could on mortgage mean of expansion question impact one our line? mortgage talk the Similar Great. bottom of it real and Michelle, just business. the could what

Michelle Ressler

Sure.

So mortgage XX one is currently real states. operating in

but into really Our on we on focused nationwide, where -- strategy operate. not hasn't really is already the deeper focused states going going it's

line. productive and officers really driven more the on Mortgage XXX% in front tell So to can are and of than of Tamir, margins Today, one and our more the who's agents by gross around title real mortgage having results how close can average. get we our tremendous transaction quarter, this company growth profits the obviously, add higher you are that's experience. bottom our bringing more CEO show that and for Similar as real more loan as business, to more transactions, And to the one our mortgage to significantly of by value room client team they're mortgage in success, XX%.

Ravi Jani

Great.

Sharran. for question Next

structures alternative of within and any pro you identified private have private offerings, team compensation attractive label customizable the proteins With the sandbox? nature and/or label the

Sharran Srivatsaa

of private to truly But different definitely centric out long like a to and because these doing way It's team dynamics offerings label offerings. lot we've term. work we these for an of been this It's their see our there. economics and a honest, interesting permutations proteins approach see be through entrepreneur

happy and the that certainly still we how now, And label explore improve agents, to so with nothing in seen far, we're just of and we But haven't just traction keep the to seen are teams, we've model our identify there's for ways them. we private course, looking our that before, it. days. we early will, benefits pro and we will But of that if integrate both

Ravi Jani

to real wallet Sheldon. We question Stephen that his answer in about had addressed Tamir one

we'll Tamir.What question So just investors? go last for our plans to the institutional are attract more to

Tamir Poleg

line exceptional IR is spend and Well, of significantly results, team we Michelle in did bottom investors. And attracting that and still the myself platform. a growing employees of agents, line with key what to our more reality by our delivering the technology top exactly lot this and quarter, investing while them time our doing is and

and executing compounds So our resilient strategy company value cash share, we substantial then build create shareholders. long-term long as continue earnings our and to sustainably that will we that an think per for as innovative flow I

for after quarter. years. And we'll focusing And on so after what doing that's day, at focusing what This quarter continue we're that's day is on been the moment. we've what

Ravi Jani

Great.

way I up. to think that's wrap a it great

contact earnings any Thank the have you please to conference again? please you feel would call directly. today's questions additional free instructions release, on me If replay Matthew, once you. give

Operator

replay be replay phone number XXX code replay Once is replay. XXX XX. (XXX) the The and The is is for XXX-XXXX. replay Certainly. XXX-XXXX conference Today's again, phone will is the (XXX) XX. available number code

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

The Real Brokerage Inc. (REAX) 7 May 242024 Q1 Earnings call transcript