TORONTO & NEW YORK - The Real Brokerage Inc. (NASDAQ: REAX), a technology platform reshaping the real estate landscape, announced its fourth quarter financial results, surpassing analyst revenue expectations.
The company reported a significant revenue beat, with Q4 earnings showing $181.3 million, a substantial 89% increase from $96.1 million in the same quarter last year, and well above the consensus estimate of $161.14 million. However, the company reported a Q4 EPS of -$0.07, which was $0.03 below the analyst estimate of -$0.04.
The company's stock responded positively to the news, jumping 5.63%.
Real's Chairman and CEO, Tamir Poleg, attributed the strong performance to the company's unique agent value proposition, scalable technology platform, and efficient operating model. He emphasized the company's commitment to innovation and enhancing the Real experience for agents and clients with the introduction of the One Real consumer-facing app and the Real Wallet financial ecosystem.
The company's growth was also reflected in the total value of completed real estate transactions, which reached $6.8 billion in the fourth quarter, up 92% YoY, and the number of transactions closed, which increased by 82% YoY to 17,749. The agent base grew to 13,650 by the end of the fourth quarter, a 66% increase YoY, and as of March 7, 2024, the platform boasts approximately 16,000 agents.
Despite the revenue outperformance, the company did report a net loss attributable to owners of $12.0 million in the fourth quarter of 2023, compared to $6.8 million in the previous year's quarter. The adjusted EBITDA was $8.5 million for the quarter, a significant improvement from the negative $0.1 million in the fourth quarter of 2022.
Michelle Ressler, Real's CFO, expressed optimism about the company's financial health and its ability to deliver YoY growth across key metrics in 2024. The company also highlighted its operational efficiency, with operating expense per transaction excluding revenue share decreasing by 2% from the fourth quarter of 2022.
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