Achieves 885% year over year revenue growth in Q3 2021 to
US $39 million
132% agent growth to 2,975 agents at the end of Q3
2021
TORONTO and NEW YORK, Nov. 16,
2021 /CNW/ -- The Real Brokerage Inc. ("Real" or
the "Company") (TSXV: REAX) (NASDAQ: REAX), an
international, technology-powered real estate brokerage, is pleased
to announce that it has filed its financial results for the three
and nine months ended September 30, 2021.
Additional information concerning Real's consolidated financial
statements and related management's discussion and analysis for the
three and nine months ended September 30,
2021 can be found at www.sedar.com.
Q3 Financial Highlights (unaudited) (US dollars)
- Revenue increased 885% in the third quarter of 2021 to
$38.79 million, compared to
$3.9 million in the third quarter of
2020.
- Gross profit grew 348% to $3.32
million in the third quarter of 2021, compared to
$741 thousand in the third quarter of
2020.
- Net operating loss was $1.06
million in the third quarter of 2021, compared to a net loss
of $422 thousand in the third quarter
of 2020.
- Adjusted EBITDA loss for the third quarter or 2021 was
$744 thousand compared to Adjusted
EBITDA loss of $261 thousand in the
third quarter of 2020.
- Cash flow from operations increased approximately 581% to
$1.03 million compared to the third
quarter of 2020.
"Our third-quarter run-rate is more than $150 million, as we continue to experience growth
through the combination of increases in number of agents and
revenue per agent," said Tamir
Poleg, co-founder and CEO of Real. "As we build out
technology not only for our agents, but for a consumer experience,
we expect to be competing in the future not just with traditional
and tech brokerages but to expand our total addressable market by
competing with online real estate companies."
Q3 and Recent Operating Highlights (unaudited)
- Surpassed 3,000 agents October
2021, a 134% increase since October
2020.
- The value of completed real estate transactions grew 879% to
$1.44 billion in Q3 2021, compared to
1.47 million in the third quarter of 2020.
- Revenue per agent grew to $13
thousand, which represents an increase of 325% compared to
$3 thousand in to the third quarter
of 2020.
- Transactions per agent grew to 0.9 which represents an increase
of 86% compared to 0.5 in the third quarter of 2020.
- Bolstered its management team with the additions of
Katharine Mobley as Chief Marketing
Officer and Raj Naik as Chief Operating Officer
- As of September 30, 2021, Real
offered real estate brokerage services in 35 U.S. states the
District of Columbia in the US and
Alberta, Canada and had 50
full-time employees.
- As of September 30, 2021, Real's
efficiency ratio (Full Time Employees : Agents) was 1:60, with a
long term target of 1:75 . Real views this as a competitive
advantage as the industry standard is a ratio of approximately
1:25.
- Real ended Q3 2021 with $45
million in cash and investments compared to total cash on
hand of $1.9 million at the end of Q3
2020.
The Company will discuss the results on a conference call and
live webcast today at 11:00 a.m. EST.
Date:
|
November 16,
2021
|
Time:
|
11:00 a.m.
EST*
|
|
|
Dial-in
Number:
|
North American Toll
Free: 888-506-0062
|
|
International:
973-528-0011
|
|
https://www.webcaster4.com/Webcast/Page/2699/43422
|
|
|
Replay
Number:
|
North American Toll
Free: 877-481-4010
|
|
International:
919-882-2331
|
Passcode:
|
42380
|
Webcast
Replay
|
https://www.webcaster4.com/Webcast/Page/2699/43422
|
|
|
|
*Participants are
encouraged to dial in 5 to 10 minutes before the beginning of the
conference call.
|
About Real
Real (www.joinreal.com) is a technology-powered real estate
brokerage operating in 37 U.S. states, the District of Columbia and Canada. Real is building the future, together
with more than 3,000 agents and their clients. Real creates
financial opportunities for agents through better commission
splits, best-in-class technology, revenue sharing and equity
incentives.
Contact Information
For additional information, please contact:
The Real Brokerage Inc.
Caroline Glennon
caroline@thunder11.com
1-201-564-4221
Investors, for more information, please contact:
Hayden IR
James Carbonara
james@haydenir.com
646-755-7412
Non-IFRS Measures
This news release includes reference to "Adjusted
EBITDA", which is a non-International Financial Reporting
Standards ("IFRS") financial measure. Non-IFRS measures are
not recognized measures under IFRS, do not have a standardized
meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies.
Adjusted EBITDA is used as an alternative to net income by removing
major non-cash items such as amortization, interest, stock-based
compensation, current and deferred income tax expenses and other
items management considers non-operating in nature. Adjusted EBITDA
has no direct comparable IFRS financial measures. The Company has
used or included this non-IFRS measures solely to provide investors
with added insight into Real's financial performance. Readers are
cautioned that such non-IFRS measure may not be appropriate for any
other purpose. Non-IFRS measures should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS.
Forward-Looking Information
This press release contains forward-looking information
within the meaning of applicable Canadian securities laws.
Forward-looking information is often, but not always, identified by
the use of words such as "seek", "anticipate", "believe", "plan",
"estimate", "expect", "likely" and "intend" and statements that an
event or result "may", "will", "should", "could" or "might" occur
or be achieved and other similar expressions. These statements
reflect management's current beliefs and are based on information
currently available to management as at the date hereof.
Forward-looking information in this press release includes, without
limiting the foregoing, statements regarding the addition of agents
to Real's business, expectations regarding Real's growth and the
business and strategic plans of the Company.
Forward-looking information is based on assumptions that may
prove to be incorrect, including but not limited to Real's business
objectives, expected growth, results of operations, performance,
business projects and opportunities and financial results. Real
considers these assumptions to be reasonable in the circumstances.
However, forward-looking information is subject to known and
unknown risks, uncertainties and other factors that could cause
actual results, performance or achievements to differ materially
from those expressed or implied in the forward-looking information.
These factors should be carefully considered and readers should not
place undue reliance on the forward-looking statements. Although
the forward-looking statements contained in this press release are
based upon what management believes to be reasonable assumptions,
Real cannot assure readers that actual results will be consistent
with these forward-looking statements. These forward-looking
statements are made as of the date of this press release, and Real
assumes no obligation to update or revise them to reflect new
events or circumstances, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release, and the NASDAQ has neither approved nor disapproved
the contents of this press release.
The Real Brokerage
Inc
|
Consolidated
Statement of Financial Position
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
September
30,
2021
|
December
31,
2020
|
Assets
|
|
|
|
|
|
Cash
|
|
|
|
36,077
|
21,226
|
Restricted
cash
|
|
|
47
|
47
|
Investment securities
available for sale at fair value
|
8,893
|
-
|
Trade
receivables
|
|
|
275
|
117
|
Other
receivables
|
|
|
23
|
221
|
Prepaid expenses and
deposits
|
|
560
|
89
|
Current
assets
|
|
|
45,875
|
21,700
|
Intangible
assets
|
|
|
1,107
|
-
|
Property and
equipment
|
|
71
|
14
|
Right-of-use
assets
|
|
|
130
|
193
|
Non-current
assets
|
|
|
1,308
|
207
|
Total
assets
|
|
|
47,183
|
21,907
|
Liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
5,955
|
815
|
Other
payables
|
|
|
1,048
|
64
|
Lease
liabilities
|
|
|
82
|
85
|
Current
liabilities
|
|
|
7,085
|
964
|
Lease
liabilities
|
|
|
71
|
130
|
Accrued Stock-based
Compensation
|
1,084
|
15
|
Warrants
outstanding
|
|
|
310
|
-
|
Non-current
liabilities
|
|
1,465
|
145
|
Total
liabilities
|
|
|
8,550
|
1,109
|
Equity
(Deficit)
|
|
|
|
|
Share
premium
|
|
|
59,236
|
21,668
|
Stock-based
compensation reserve
|
5,680
|
2,760
|
Deficit
|
|
|
|
(26,283)
|
(18,448)
|
Equity (Deficit)
attributable to owners of the company
|
38,633
|
5,980
|
Non-controlling
interests
|
|
-
|
14,818
|
Total liabilities
and equity
|
|
47,183
|
21,907
|
The Real Brokerage
Inc
|
Consolidated
Statement of Loss and Comprehensive Loss
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended September 30,
|
Nine months
ended September 30,
|
|
2021
|
2020
|
2021
|
2020
|
Revenue
|
38,798
|
3,939
|
71,202
|
9,469
|
Cost of
sales
|
35,477
|
3,198
|
64,216
|
8,063
|
Gross
profit
|
3,321
|
741
|
6,986
|
1,406
|
General &
Administrative expenses
|
2,170
|
988
|
10,051
|
2,254
|
Marketing
expenses
|
1,675
|
88
|
3,060
|
449
|
Research and
development expenses
|
497
|
75
|
1,399
|
147
|
Other
income
|
-
|
-
|
-
|
(1)
|
Operating
loss
|
(1,021)
|
(410)
|
(7,524)
|
(1,443)
|
Listing
expenses
|
-
|
-
|
-
|
803
|
Finance
costs
|
43
|
12
|
311
|
29
|
Loss before
tax
|
(1,064)
|
(422)
|
(7,835)
|
(2,275)
|
Net
Loss
|
(1,064)
|
(422)
|
(7,835)
|
(2,275)
|
Total loss and
comprehensive loss
|
(1,064)
|
(422)
|
(7,835)
|
(2,275)
|
Earnings per
share
|
|
|
|
|
Basic and diluted
loss per share
|
(0.006)
|
(0.013)
|
(0.05)
|
(0.026)
|
The Real Brokerage
Inc
|
Non-GAAP Net Income
(loss) to Adjusted EBITDA Reconciliation
|
(In
thousands)
|
|
|
|
|
|
|
Three months
ended September 30,
|
Six months
ended September 30,
|
|
2021
|
2020
|
2021
|
2020
|
Net Income
(loss)
|
(1,064)
|
(422)
|
(7,835)
|
(2,275)
|
Non operating
expenses
|
|
|
|
|
Interest
|
43
|
12
|
311
|
29
|
Depreciation
|
44
|
10
|
130
|
59
|
Restructuring
expense
|
3
|
-
|
63
|
-
|
Listing
Expenses
|
-
|
-
|
-
|
459
|
Nasdaq listing
expenses
|
310
|
-
|
455
|
-
|
Stock-based
compensation
|
(80)
|
139
|
4,713
|
336
|
Adjusted
EBITDA
|
(744)
|
(261)
|
(2,163)
|
(1,392)
|
|
|
|
Three months
ended
September 30
|
Nine months
ended
September 30
|
|
|
|
|
|
|
2021
|
2020
|
2021
|
2020
|
Cash flows from
operating activities
|
|
|
|
|
Loss for the
period
|
|
(1,064)
|
(422)
|
(7,835)
|
(2,275)
|
Adjustments
for:
|
|
|
|
|
|
–
Depreciation
|
|
42
|
17
|
129
|
66
|
– Equity-settled
share-based payment transactions
|
(1,696)
|
139
|
2,920
|
336
|
– Listing
expenses
|
|
(36)
|
-
|
(3)
|
459
|
– Finance costs
(income), net
|
43
|
32
|
311
|
28
|
|
|
|
(2,711)
|
(234)
|
(4,478)
|
(1,386)
|
Changes
in:
|
|
|
|
|
|
--Restricted
cash
|
|
-
|
-
|
-
|
-
|
– Trade
receivables
|
|
(66)
|
(88)
|
(158)
|
(114)
|
– Other
receivables
|
|
-
|
9
|
198
|
(12)
|
– Related
parties
|
|
-
|
-
|
-
|
-
|
– Prepaid expenses
and deposits
|
(385)
|
(27)
|
(471)
|
(27)
|
– Accounts payable
and accrued liabilities
|
2,711
|
105
|
5,140
|
705
|
– Stock Compensation
Payable (RSU)
|
757
|
-
|
1,069
|
-
|
– Other
payables
|
|
728
|
20
|
984
|
18
|
Net cash provided
by (used in) operating activities
|
1,034
|
(215)
|
2,284
|
(818)
|
Cash flows from
investing activity
|
|
|
|
|
Investments in
securities
|
-
|
-
|
(8,890)
|
-
|
Change in restricted
cash
|
-
|
-
|
-
|
-
|
Purchase of property
and equipment
|
(22)
|
(7)
|
(65)
|
(7)
|
Acquisition of
subsidiaries consolidated for the first time (a)*
|
-
|
-
|
(1,100)
|
-
|
Net cash
provided by (used in) investing activity
|
(14)
|
(7)
|
(10,047)
|
(7)
|
Cash flows from
financing activities
|
|
|
|
|
Proceeds from private
placement
|
-
|
443
|
-
|
2,031
|
Additional proceeds
from Qualifying Transaction
|
-
|
-
|
-
|
321
|
Proceeds from
exercise of Warrants
|
-
|
-
|
26,475
|
-
|
Proceeds from
issuance of convertible debt
|
-
|
-
|
-
|
250
|
Proceeds from loans
and borrowings
|
-
|
-
|
-
|
172
|
Purchases of Common
Shares for Restricted Share Unit (RSU) Plan
|
(2,853)
|
-
|
(3,772)
|
-
|
Proceeds from
exercise of stock options
|
37
|
-
|
47
|
-
|
Payment of lease
liabilities
|
(21)
|
(31)
|
(62)
|
(64)
|
Net cash provided
by financing activities
|
(2,837)
|
412
|
22,688
|
2,710
|
Net change in cash
and cash equivalents
|
(1,817)
|
190
|
14,925
|
1,885
|
Cash, beginning of
period
|
37,951
|
1,748
|
21,226
|
53
|
Fluctuations in
foreign currency
|
(49)
|
(2)
|
(66)
|
(2)
|
Cash, end of
period
|
|
36,077
|
1,936
|
36,077
|
1,936
|
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SOURCE The Real Brokerage Inc.