The Real Brokerage, Inc. · NASDAQ:REAX
The Real Brokerage — Investor Summit Group's Q4 Conference 2022
17 slides from The Real Brokerage's conference presentation, Nov 17, 2022
Slide 1: Investor Presentation November 2022
Investor Presentation November 2022
Slide 2: Legal Disclosure
Legal Disclosure Certain statements herein relating to The Real Brokerage Inc. (“Real” or the “Company”) constitute “forward-looking statements”, within the meaning of applicable securities laws, including without limitation, statements regarding future estimates, business plans and/or objectives, s
Slide 3: The Real Brokerage
The Real Brokerage The Real Brokerage is revolutionizing the residential real estate industry by pairing best-in-class technology with the trusted guidance of the agent-led experience. We provide a digital brokerage platform for agents, while working to build a better end-to-end experience for consu
Slide 4: Substantial Market Opportunity
Substantial Market Opportunity To build a big business, you must solve a big problem. U.S. TAM - $215B Recently purchased a nascent technology title company. Plans Other Real Estate Services - $30B for further expansion into other ancillary services. Title Insurance & Escrow - $35B U.S. Residential
Slide 5: A Large Industry Redistributed
A Large Industry Redistributed As of October 2022, there are 1.6 million agents in the U.S., ~90% are with legacy brokerages that have had a dominant market share since the mid-1900s . We are beginning to see the market shift to a new model… (1) PAST FUTURE Still own ~90% of the market today Tech pl
Slide 6: Capturing Market Share: Agent Growth Strategy
Capturing Market Share: Agent Growth Strategy 1. Agent referrals Real agents earn revenue share through five tiers of referrals, creating a network growth effect. 2. Geographic expansion Real is rapidly adding new states and territories based on demand from productive agents. 3. Current market penet
Slide 7: Q3 '22 Highlights
Q3 ‘22 Highlights Agent Productivity Corporate Development Growth Despite Tough Market Canada Expansion o Industry largely reported lower/flat growth but o Ontario was fastest growing region in Q3 Real continues to grow (+188% y/y revenue (+91% q/q transaction growth) growth) o Subsequent to the end
Slide 8: Rapid Growth
Rapid Growth Agent Count Transaction Count 126% 197% Y/Y Growth Y/Y Growth 6,700 11,233 2,975 3,779 Q3 '21 Q3 '22 Q3 '21 Q3 '22 Revenue Gross Profit 188% 158% Y/Y Growth Y/Y Growth $111.6m $8.6m $38.8m $3.3m Q3 '21 Q3 '22 Q3 '21 Q3 '22 8
Slide 9: The Real Platform
The Real Platform THE PLATFORM TODAY Cloud-based app solution to manage pipeline, transaction, and commission — a nearly fully automated process in the U.S. which is the first of its kind in the industry, allowing for incredible scale. In Q3 ‘22, our 8-member transaction team processed over 11,000 t
Slide 10: Future Focus: Fixing a Broken Home Buying Experience
Future Focus: Fixing a Broken Home Buying Experience An outdated process riddled with problems that lack a technologically-enhanced end-to-end solution Unpredictable Chaotic Nontransparent From a buyer's perspective, Requires interactions with multiple No clear understanding of where you unforeseen
Slide 11: The Real Solution
The Real Solution Building a better product and a better customer experience. OUR VISION FOR THE FUTURE Real is looking to build a one-stop shop solution to provide homebuyers with more: ✓ Predictability ✓ Organization ✓ Transparency We believe that building a simplified and technology-enhanced cons
Slide 12: Conclusion: Real Recap
Conclusion: Real Recap We believe Real benefits as a disruptor during an industry transformation AND is positioned to benefit from fixing the homebuying process Agent Consumer Shift from Fixing homebuying Archaic Brokerages experience to Tech Brokerages 12
Slide 13: Appendix
red APPENDIX
Slide 14: Income Statement
Income Statement The Real Brokerage Inc. Consolidated Statement of Loss and Comprehensive Loss (In thousands) UNAUDITED Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Revenue 111,633 38,798 285,638 71,202 Cost of sales 103,057 35,477 261,908 64,216 Gross profit
Slide 15: Balance Sheet
Balance Sheet real The Real Brokerage Inc. Consolidated Statement of Financial Position (In thousands) UNAUDITED September 30, 2022 December 31, 2021 Assets Cash and cash equivalents 21,943 29,082 Restricted cash - 47 Investment securities available for sale at fair value 9,786 8.811 Trade receivabl
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 16
Slide 17: Statement of Cash Flows
Statement of Cash Flows real The Real Brokerage Inc. Consolidated Statement of Cash Flows (In thousands) UNAUDITED Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Loss for the period (6,169) (1,064) (13,576) (7,835) Adjustments for: — Depreciation 87 42 225 129 —
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