Business
The Real Brokerage Inc. Announces First Quarter 2023 Financial Results
TORONTO & NEW YORK--(BUSINESS WIRE)-- The Real Brokerage Inc. (TSX: REAX) (NASDAQ: REAX), the fastest-growing publicly traded real estate brokerage,
About this update from The Real Brokerage, Inc.
[{"type":"text","content":" TORONTO & NEW YORK--(BUSINESS WIRE)--\nThe Real Brokerage Inc. (TSX: REAX) (NASDAQ: REAX), the fastest-growing publicly traded real estate brokerage, announced results for its first quarter ended March 31, 2023.\n\n\n“Real continues to deliver industry-leading growth in a challenging market with the largest quarterly net agent addition in our company’s history,” said Tamir Poleg, Chairman and Chief Executive Officer. “Our open transaction volume is at an all-time high. And with a number of transformative technology innovations to be released over the next several quarters, including a new GPT-powered AI virtual assistant and the pilot version of our comprehensive consumer experience, we are incredibly excited at the trajectory of the business going forward.”\n\n\nQ1 2023 Financial Highlights\n\n\n\nRevenue increased 75% year-over-year to $107.8 million.\n\n\n\nGross profit increased 84% year-over-year to $10.8 million.\n\n\n\nNet loss attributable to owners of the Company of $7.4 million, compared to a $4.3 million loss in Q1 2022.\n\n\n\nLoss per share of $0.04, compared to a loss per share of $0.03 in Q1 2022.\n\n\n\nAdjusted EBITDA loss of $792 thousand, compared to a $577 thousand loss in Q1 2022.\n\n\n\nAs of March 31, 2023 the Company held $11.0 million in cash, not including $15.4 million of restricted cash associated with customer deposits, and an additional $8.5 million held in investments in financial assets.\n\n\n\nThe Company repurchased 462 thousand common shares for $601 thousand pursuant to its normal course issuer bid.\n\n\n\nQ1 2023 Operational Highlights\n\n\n\nSurpassed 10,000 agents at the end of the first quarter, a 120% year-over-year increase. During the quarter nearly 1,800 agents joined our platform on a net basis, the largest single-quarter addition in company history.\n\n\n\nThe number of transactions executed in Q1 2023 grew 75% year-over-year to 10,963, and the total value of completed real estate transactions grew 66% year-over-year to $4.0 billion.\n\n\n\nCommission revenue per productive agent was $26,000, a slight decrease from $29,400 in Q1 2022. These agents on average closed 2.7 transactions during the quarter, compared to 3.0 in Q1 2022.\n\n\n\nOperating expenses per transaction, excluding revenue share, declined 5% year-over-year to $1,132.\n\n\n\nAs of March 31, 2023, Real’s headcount effi...