Achieves 790% year over year revenue growth in Q2 2021 to
US $23 million
126% agent growth to 2,451 agents at the end of Q2
2021
NEW YORK and TORONTO, Aug. 11,
2021 /CNW/ -- The Real Brokerage Inc. ("Real" or the
"Company") (TSXV: REAX) (Nasdaq: REAX), a national,
technology powered real estate brokerage in the United
States is pleased to announce that it has filed its financial
results for the three and six months ended June 30, 2021.
Additional information concerning Real's consolidated financial
statements and related management's discussion and analysis for the
three and six months ended June 30,
2021 can be found at www.sedar.com.
Q2 Financial Highlights (unaudited) (US dollars)
- Revenue increased 790% in the second
quarter of 2021 to $23 million,
compared to $2.5 million in Q2
last year.
- Gross profit grew 764% to $2.4 million in the second
quarter of 2021, compared to $281,000 in Q2 2020.
- Net operating loss was $2.9
million in the second quarter of 2021, compared to a net
loss of $1.2 million in the second
quarter of 2020.
- Adjusted EBITDA loss for the second quarter or 2021 was
$496 thousand compared to Adjusted
EBITDA loss of $795 thousand in the
second quarter of 2020.
- Cash flow from operations increased approximately 214% to
$706 thousand compared to Q2 last
year.
"During the second quarter, the combination of large increases
in number of agents and revenue per agent accounted for revenue
growth," said Tamir Poleg,
co-founder and CEO of Real. "In terms of outlook, on a monthly
basis we added agents that collectively generated $20 million in trailing 12-month revenue
recorded prior to joining Real. Based on these figures, we expect
strong growth to continue."
Q2 and Recent Operating Highlights (unaudited)
- Surpassed 2,550 agents July 2021,
a 135% increase since July 2020.
- The value of completed real estate transactions grew 853%
to $906 million in Q2 2021, compared to Q2 2020.
- Revenue per agent grew to $1.5
thousand, which represents an increase of 362% compared to
$326 in Q2 2021.
- As of June 30, 2021, Real offered real estate brokerage
services in 31 U.S. states and the District of
Columbia and had 41 full-time employees.
- As of June 30, 2021, Real's efficiency ratio (Full Time
Employees : Agents) was 1:61, with a long term target of
1:75. Real views this as a competitive advantage in
terms of how quickly and efficiently it can scale and provide
benefit in profit margins. The industry standard is a ratio of
approximately 1:25.
- On June 15, 2021, Real commenced
trading its common shares on the Nasdaq Capital Market.
- On June 28, 2021, Real received
C$32,845,011.20 in proceeds from
accelerated warrant exercises.
- Real ended Q2 2021 with a cash balance of $37.9 million and an additional $8.9 million held in investments in securities
compared to $1.7 million at the end
of Q1 2020.
The Company will discuss the results on a conference call and
live webcast today at 11:00 a.m. EDT.
Details of the conference call are listed below:
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Date:
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August 11,
2021
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|
Time:
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11:00 a.m.
EST*
|
|
|
|
Dial-in
Number:
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North American Toll
Free: 844-602-0380
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|
International:
862-298-0970
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|
Webcast:
https://www.webcaster4.com/Webcast/Page/2699/42380
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|
|
|
Replay
Number:
|
North American Toll
Free: 877-481-4010
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International:
919-882-2331
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Passcode:
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42380
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|
Webcast
Replay
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https://www.webcaster4.com/Webcast/Page/2699/42380
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|
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*Participants are
encouraged to dial in 5 to 10 minutes before the beginning of the
conference call.
The replay will be
available beginning approximately 1 hour after the completion of
the live event.
|
About Real
Real (www.joinreal.com) is a technology-powered real estate
brokerage operating in 31 U.S. states and the District of Columbia. Real is building the
brokerage of the future, together with agents and their clients.
Real creates financial opportunities for agents through better
commission splits, best-in-class technology, revenue sharing and
equity incentives.
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The Real Brokerage
Inc
|
|
Consolidated
Statement of Financial Position
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
June 31,
2021
|
December
31,
2020
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Cash
|
|
|
|
37,904
|
21,226
|
|
Restricted
cash
|
|
|
47
|
47
|
|
Investment securities
available for sale at fair value
|
8,857
|
-
|
|
Trade
receivables
|
|
|
209
|
117
|
|
Other
receivables
|
|
|
23
|
221
|
|
Prepaid expenses and
deposits
|
175
|
89
|
|
Current
assets
|
|
|
47,215
|
21,700
|
|
Intangible
assets
|
|
|
1,127
|
-
|
|
Property and
equipment
|
|
57
|
14
|
|
Right-of-use
assets
|
|
|
151
|
193
|
|
Non-current
assets
|
|
|
1,335
|
207
|
|
Total
assets
|
|
|
48,550
|
21,907
|
|
Liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
3,244
|
815
|
|
Other
payables
|
|
|
320
|
64
|
|
Lease
liabilities
|
|
|
87
|
85
|
|
Current
liabilities
|
|
|
3,651
|
964
|
|
Lease
liabilities
|
|
|
87
|
130
|
|
Accrued Stock-based
Compensation
|
327
|
15
|
|
Warrants
outstanding
|
|
276
|
-
|
|
Non-current
liabilities
|
|
690
|
145
|
|
Total
liabilities
|
|
|
4,341
|
1,109
|
|
Equity
(Deficit)
|
|
|
|
|
|
Share
premium
|
|
|
47,234
|
21,668
|
|
Stock-based
compensation reserve
|
7,376
|
2,760
|
|
Deficit
|
|
|
|
(25,219)
|
(18,448)
|
|
Equity (Deficit)
attributable to owners of the company
|
29,391
|
5,980
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
14,818
|
14,818
|
|
Total liabilities
and equity
|
|
48,550
|
21,907
|
|
The Real Brokerage
Inc
|
|
|
|
Consolidated
Statement of Loss and Comprehensive Loss
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|
|
|
2021
|
2020
|
2021
|
2020
|
|
Revenue
|
|
|
23,095
|
2,594
|
32,404
|
5,530
|
|
Cost of
sales
|
|
20,667
|
2,313
|
28,739
|
4,865
|
|
Gross
profit
|
|
2,428
|
281
|
3,665
|
665
|
|
General &
Administrative expenses
|
3,801
|
482
|
7,881
|
1,266
|
|
Marketing
expenses
|
|
942
|
209
|
1,385
|
361
|
|
Research and
development expenses
|
475
|
49
|
902
|
72
|
|
Other
income
|
|
-
|
(1)
|
-
|
(1)
|
|
Operating
loss
|
|
(2,790)
|
(458)
|
(6,503)
|
(1,033)
|
|
Finance
costs
|
158
|
15
|
268
|
17
|
|
Loss before
tax
|
(2,948)
|
(1,276)
|
(6,771)
|
(1,853)
|
|
Net
Loss
|
|
|
(2,948)
|
(1,276)
|
(6,771)
|
(1,853)
|
|
Total loss and
comprehensive loss
|
(2,948)
|
(1,276)
|
(6,771)
|
(1,853)
|
|
Earnings per
share
|
|
|
|
|
|
|
Basic and diluted
loss per share
|
(0.053)
|
(0.032)
|
(0.122)
|
(0.056)
|
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The Real Brokerage
Inc
|
|
Non-GAAP Net Income
(loss) to Adjusted EBITDA Reconciliation
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|
|
|
2021
|
2020
|
2021
|
2020
|
|
Net Income
(loss)
|
|
(2,948)
|
(1,276)
|
(6,771)
|
(1,853)
|
|
Non operating
expenses
|
|
|
|
|
|
Interest
|
|
|
158
|
15
|
268
|
17
|
|
Depreciation
|
|
44
|
22
|
86
|
49
|
|
Restructuring
expense
|
60
|
-
|
60
|
-
|
|
Nasdaq listing
expenses
|
145
|
-
|
145
|
-
|
|
Stock-based
compensation
|
2,045
|
(15)
|
4,793
|
197
|
|
Adjusted
EBITDA
|
|
(496)
|
(1,254)
|
(1,419)
|
(1,590)
|
|
The Real Brokerage
Inc
|
|
|
|
Consolidated
Statement of Cash Flows
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
June 30
|
Six months
ended
June 30
|
|
|
|
|
|
|
|
|
2021
|
2020
|
2021
|
2020
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Loss for the
period
|
|
|
(2,948)
|
(1,276)
|
(6,771)
|
(1,853)
|
|
Adjustments
for:
|
|
|
|
|
|
|
|
–
Depreciation
|
|
|
44
|
22
|
86
|
49
|
|
– Equity-settled
share-based payment transactions
|
1,868
|
(15)
|
4,616
|
197
|
|
– Listing
expenses
|
|
|
-
|
459
|
-
|
459
|
|
– Finance costs
(income), net
|
|
158
|
1
|
268
|
(4)
|
|
|
|
|
(878)
|
(809)
|
(1,801)
|
(1,152)
|
|
Changes
in:
|
|
|
|
|
|
|
|
– Trade
receivables
|
|
|
518
|
131
|
(92)
|
(26)
|
|
– Other
receivables
|
|
|
1
|
(21)
|
198
|
(21)
|
|
– Prepaid expenses
and deposits
|
(12)
|
1
|
(86)
|
-
|
|
– Accounts payable
and accrued liabilities
|
622
|
73
|
2,429
|
595
|
|
– Stock Compensation
Payable (RSU)
|
205
|
-
|
312
|
-
|
|
– Other
payables
|
|
|
250
|
8
|
256
|
(2)
|
|
Net cash provided
by (used in) operating activities
|
706
|
(617)
|
1,216
|
(606)
|
|
Cash flows from
investing activity
|
|
|
|
|
|
Change in restricted
cash
|
|
-
|
1
|
-
|
-
|
|
Purchase of property
and equipment
|
(29)
|
-
|
(43)
|
-
|
|
Acquisition of
subsidiaries consolidated for the first time (a)*
|
-
|
-
|
(1,100)
|
-
|
|
Net cash
provided by (used in) investing activity
|
(29)
|
1
|
(1,143)
|
-
|
|
Cash flows from
financing activities
|
|
|
|
|
|
Investments in
securities
|
|
(8,857)
|
-
|
(8,857)
|
-
|
|
Proceeds from private
placement
|
-
|
1,588
|
-
|
1,588
|
|
Additional proceeds
from Qualifying Transaction
|
-
|
321
|
-
|
321
|
|
Proceeds from
exercise of Warrants
|
26,475
|
-
|
26,475
|
-
|
|
Proceeds from
issuance of convertible debt
|
-
|
250
|
-
|
250
|
|
Proceeds from loans
and borrowings
|
-
|
172
|
-
|
172
|
|
Purchases of Common
Shares for Restricted Share Unit (RSU) Plan
|
(919)
|
-
|
(919)
|
-
|
|
Proceeds from
exercise of stock options
|
10
|
-
|
10
|
-
|
|
Payment of lease
liabilities
|
|
(21)
|
(18)
|
(41)
|
(33)
|
|
Net cash provided
by financing activities
|
16,688
|
2,313
|
16,668
|
2,298
|
|
Net change in cash
and cash equivalents
|
17,365
|
1,697
|
16,741
|
1,692
|
|
Cash, beginning of
period
|
|
20,527
|
53
|
21,226
|
53
|
|
Fluctuations in
foreign currency
|
|
59
|
(1)
|
(16)
|
3
|
|
Cash, end of
period
|
|
37,951
|
1,749
|
37,951
|
1,748
|
Contact Information
For additional information, please contact:
James Carbonara
Hayden IR
646-755-7412
james@haydenir.com
Press, for more information, please contact:
The Real Brokerage Inc.
Caroline Glennon
caroline@thunder11.com
201-564-4221
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.
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content:https://www.prnewswire.com/news-releases/the-real-brokerage-inc-announces-second-quarter-2021-financial-results-301353163.html
SOURCE The Real Brokerage Inc.