Business
The Real Brokerage Inc. Announces Second 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 second quarter ended June 30, 2023.\n\n\n“The second quarter was an inflection point for our company, with the achievement of adjusted EBITDA profitability earlier than anticipated, and I’m enormously proud of the work that our employees and agents have put in to get us here,” said Tamir Poleg, Chairman and Chief Executive Officer. “Real now has an agent base that is more than twice the size it was a year ago, placing us in a strong position in the back half of the year. We are focused on executing Real’s mission to reinvent the way that consumers purchase homes, and I am excited to announce that we plan to release the first version of our new consumer app at our annual RISE conference in October later this year.”\n\n\nQ2 2023 Financial Highlights\n\n\n\nRevenue increased 65% year-over-year to $185.3 million.\n\n\n\nGross profit increased 91% year-over-year to $17.8 million.\n\n\n\nAdjusted EBITDA profit of $2.6 million, compared to a $583,000 loss in Q2 2022.\n\n\n\nNet loss attributable to owners of the Company of $4.1 million, compared to $4.2 million from Q2 2022.\n\n\n\nLoss per share of $0.02, unchanged from Q2 2022.\n\n\n\nUnrestricted cash and investments increased by $8.6 million during the quarter. As of June 30, 2023 the Company held $17.2 million in cash and an additional $10.9 million held in investments in financial assets, not including $29.6 million of restricted cash associated with customer deposits.\n\n\n\nThe Company repurchased 601,000 common shares for $806,000 pursuant to its normal course issuer bid.\n\n\n\nQ2 2023 Operational Highlights\n\n\n\nReached nearly 11,500 agents at the end of the second quarter, a 105% year-over-year increase.\n\n\n\nThe number of transactions executed in Q2 2023 grew 72% year-over-year to 17,537, and the total value of completed real estate transactions grew 66% year-over-year to $7.0 billion.\n\n\n\nCommission revenue per productive agent was $34,700, below $41,400 in Q2 2022 but significantly improved from $26,000 in Q1 2023. These agents on average closed 3.4 transactions during the quarter, compared to 3.8 in Q2 2022 and 2.7 in Q1 2023.\n\n\n\nOperating expenses per transaction, excluding revenue sh...