The Real Brokerage Inc (REAX) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic ...

In This Article:

  • Revenue: $1.3 billion for full year 2024, up 84% from $689 million in 2023.

  • Gross Profit: $114.7 million for full year 2024, an increase of 82% from $62.9 million in 2023.

  • Adjusted EBITDA: $40 million for full year 2024, up 188% from $13.9 million in 2023.

  • Net Loss: $26.5 million for full year 2024, compared to $27.5 million in 2023.

  • Total Transactions: 120,601 for full year 2024, an increase of 81% year over year.

  • Agent Count: 24,140 agents at year-end 2024, up 77% from the prior year.

  • Transaction Value: $49 billion for full year 2024, up 90% year over year.

  • Cash Flow from Operations: $49 million for full year 2024.

  • Fourth Quarter Revenue: $351 million, up 93% from $181 million in Q4 2023.

  • Fourth Quarter Gross Profit: $30 million, up 93% from $15.5 million in Q4 2023.

  • Fourth Quarter Adjusted EBITDA: $9.1 million, up from $8.5 million in Q4 2023.

  • Real Wallet Revenue: $42,000 in its launch quarter, with an annualized run rate over $500,000.

  • Ancillary Business Revenue: $2.5 million in Q4 2024, up 176% year over year.

  • Operating Expenses: $140 million for full year 2024, up from $88.9 million in 2023.

  • Revenue Share Expense: $42.7 million for full year 2024.

  • Unrestricted Cash and Investments: $32.8 million at the end of Q4 2024.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • The Real Brokerage Inc (NASDAQ:REAX) reported record 4th quarter and full year 2024 results, with revenue growing to $1.3 billion, marking its first-ever billion-dollar revenue year.

  • The company closed over 120,000 transactions in 2024, an increase of 81% compared to 2023, demonstrating strong growth in transaction volume.

  • Agent count increased by 77% year-over-year, ending 2024 with 24,140 agents and reaching approximately 26,200 agents by early 2025.

  • The Real Brokerage Inc (NASDAQ:REAX) launched innovative products like Leo CoPilot, an AI-powered agent assistant, and Real Wallet, a fintech platform, enhancing agent productivity and financial services.

  • The company achieved a significant improvement in adjusted EBITDA, reaching $40 million in 2024, up 188% from the previous year, indicating strong financial performance.

Negative Points

  • The Real Brokerage Inc (NASDAQ:REAX) reported a net loss attributable to the owners of the company of $26.5 million for the full year 2024.

  • Operating expenses increased to $140 million in 2024, including $10.4 million related to antitrust litigation, which impacted profitability.

  • Despite growth in ancillary services, mortgage and title contributed less than 1% of total revenue, highlighting the need for further expansion in these high-margin areas.

  • The company anticipates a sequential decline in revenue for the first quarter of 2025 due to seasonality in the existing home sales market.

  • The Real Brokerage Inc (NASDAQ:REAX) is still in a period of investment, which may delay achieving positive net margins in the near term.