The Real Brokerage, Inc. · NASDAQ:REAX
The Real Brokerage — D.A. Davidson Big Sky Technology Summit 2022
18 slides from The Real Brokerage's conference presentation, Aug 22, 2022
Slide 1: Investor Presentation
Investor Presentation August 2022
Slide 2: Legal Disclosure
Legal Disclosure Certain statements herein relating to The Real Brokerage Inc. (“Real” or the “Company”) Appendix A constitute “forward-looking statements”, within the meaning of applicable securities laws, This presentation may be considered an offering memorandum (the “Offering Memorandum”) thereb
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. REAX $174M 16,000+ Dual listed on YTD '22 Revenues1 YTD '22 Transactions1 NASDAQ and TSX $340M 6,000+ 44 + DC + Alb
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 July 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 platf
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: Q2 '22 Highlights
Q2 ‘22 Highlights Growth Initiatives Agent Productivity Hired VP of Sales, Rob Kim Renegotiated partnership with Chime o Targeting high-producing teams o CRM tool to boost agent productivity, with revenue opportunities for Real Launched operations into Mississippi o Now in 44 states, D.C. and 2 prov
Slide 8: Rapid Growth
Rapid Growth Agent Count Gross Profit 129% 283% Y/Y Growth Y/Y Growth $9.3m 5,600 2,450 $2.4m Q2 '21 Q2 '22 Q2 '21 Q2 '22 Revenue Cash Flow from Operations 386% 86% Y/Y Growth $112.4m Y/Y Growth $1.3m $0.7m $23.1m Q2 '21 Q2 '22 Q2 '21 Q2 '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 Q2 ‘22, our 9-member transaction team processed over 10,000 t
Slide 10: Future Focus: Fixing a Broken Homebuying Experience
Future Focus: Fixing a Broken Homebuying 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 i
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 Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Revenue 112,356 23,095 174,005 32,404 Cost of Sales 103,064 20,667 158,851 28,739 Gross Profit 9,292 2,428 15,154 3,665 General and administrative expenses 6,116 2,819 11,490 5,124 Marketing expenses 5,700 1,2
Slide 15: Balance Sheet
Balance Sheet June 30, 2022 December 31, 2021 Assets Cash 32,520 29,082 Restricted cash - 47 Investment securities available for sale at fair value 4,429 8,811 Trade receivables 240 254 Other receivables 66 23 Prepaid expenses and deposits 1,299 448 Current assets 38,554 38,665 Intangible assets 395
Slide 16: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Net Income (loss) (4,134) (2,948) (8,520) (6,771) Non operating expenses Finance costs 377 158 879 268 Depreciation 135 44 138 86 Stock-based compensation 1,446 2,045 3,231 4,793 NASDAQ listing e
Slide 17: Statement of Cash Flows
Statement of Cash Flows Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Cash flows from operating activities Loss for the period (4,155) (2,948) (8,407) (6,771) Adjustments for: Depreciation 135 44 138 86 Equity-settled share-based payment transactions 274 1,868 1,211 4,616
Slide 18: Statement of Cash Flows (cont.)
Statement of Cash Flows (cont.) Three months ended June 30, Six months ended June 30, 2022 2021 2022 2021 Cash flows from investing activities Purchase of property and equipment (249) (29) (625) (43) Acquisition of subsidiary - - (7,445) (1,100) Net cash provided by (used in) investing activities (2
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