Business
The Real Brokerage Inc. Announces Fourth Quarter and Full Year 2022 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 fourth quarter and full year ended December 31, 2022.\n\n“2022 was another momentous year of growth for Real that saw us significantly increase our agent base, capture additional market share and expand our geographic presence despite a challenging housing backdrop in the second half of the year,” said Tamir Poleg, Chairman and Chief Executive Officer. “We continue to expect to be adjusted EBITDA profitable in the back half of the year driven by the important changes we made to our agent fee model. Looking ahead, our top priorities are building an industry-changing consumer experience, continued acceleration of platform growth and market share and executing on additional monetization opportunities.”\n\nFull Year 2022 Financial Highlights\n\n\nRevenue increased 214% year-over-year to $381.8 million.\n\n\nGross profit grew 188% year-over-year to $32.0 million.\n\n\nOperating expense as a percentage of revenue of 13.5%, compared to 18.4% in 2021.\n\n\nNet loss attributable to owners of the Company of $20.6 million, compared to a $11.7 million loss in 2021.\n\n\nLoss per share of $0.12, compared to a loss per share of $0.07 in 2021.\n\n\nAdjusted EBITDA loss of $8.9 million, compared to a loss of $5.1 million in 2021.\n\n\nAs of December 31, 2022 the Company held $10.8 million in cash, not including $7.5 million of restricted cash associated with customer deposits, and an additional $7.9 million held in investments in financial assets.\n\n\nThe Company repurchased 3.8 million common shares for $8.1 million pursuant to its normal course issuer bid.\n\n\nQ4 2022 Financial Highlights\n\n\nRevenue increased 90% year-over-year to $96.1 million.\n\n\nGross profit increased 100% year-over-year to $8.2 million.\n\n\nOperating expense as a percentage of revenue of 15.8%, compared to 15.6% in Q4 2021.\n\n\nNet loss attributable to owners of the Company of $6.8 million, compared to a $3.8 million loss in 2021.\n\n\nLoss per share of $0.04, compared to a loss per share of $0.02 in Q4 2021.\n\n\nAdjusted EBITDA loss of $3.0 million, unchanged from Q4 2021.\n\n\nQ4 and Full Year 2022 Operational Highlights\n\n\nSurpassed 8,200 agents at the end of 2022, a 113% year-over-ye...