Celebrating a decade in operation this year, the cloud-based brokerage saw revenue skyrocket by 89 percent in the fourth quarter and its agent count soar by 66 percent, according to earnings data on Thursday.
The moment has arrived — the moment to take charge. This summer, at Inman Connect Las Vegas, July 30-Aug 1, 2024, experience the complete reinvention of the most important event in real estate. Join your peers and the industry’s best as we shape the future — together. Learn more.
The Real Brokerage, a cloud-based company that grew aggressively in 2023, mowed down analyst expectations Thursday, posting a dramatic 89 percent rise in revenue in Q4 while drawing thousands of new agents into the fold last year.
The cloud-based brokerage’s revenue rose to $181.3 million in the fourth quarter, a whopping 89 percent increase from the same period last year, according to an earnings report released Thursday. For 2023, the decade-old brokerage posted $689 million in revenue, an 81 percent uptick from 2022 when it clocked in at just $381.8 million, according to the data.
“Real delivered another record year in 2023, despite a challenging industry backdrop,” Real Chairman and CEO Tamir Poleg said in a statement. “Our performance, both in the quarter and for the full year, is a testament to our unique agent value proposition, our scalable technology platform, and our efficient operating model.”
Net losses in the fourth quarter rose to $12 million, almost double its fourth-quarter losses of $6.8 million in 2022. Losses for 2023 increased as well, with a net loss of $27.5 million compared to $20.6 million for 2022.
The firm closed a total of 17,749 transactions during the fourth quarter, an 82 percent increase from the 9,745 closed during the fourth quarter of 2022. For the full year, the firm closed 66,646 transactions, a 78 percent increase from the 37,45o it closed in 2022.
While its transaction volume increased, so did the value of those transactions combined. The total value of Real’s completed transactions reached $6.8 billion in the fourth quarter — a 92 percent increase from the fourth quarter of 2022. Throughout the full year, Real closed $25.9 billion in real estate transactions, an 80 percent jump from the $14.4 billion recorded throughout 2022.
The total number of agents using Real’s platform increased to 13,650 at the end of the fourth quarter, a 66 percent increase from the fourth quarter of 2022.
Real executives touted its newly launched Private Label recruitment program during the earnings call, which, since its launch in January, has helped grow Real’s agent count to approximately 16,000. The program allows independent brokerages to join the Real platform without being forced to rebrand their brokerage, allowing them to retain their local brand recognition.
“We are thrilled by the momentum we’re seeing across our agent base, which has now reached the 16,000 agent milestone,” Real Brokerage President Sharran Srivatsaa said. “With the formal launch of our Private Label and ProTeams programs in January, it is now easier than ever for independent brokerages and teams to join Real — and experience all of the benefits associated with being a part of the fastest-growing, publicly traded brokerage firm.”
Shares for Real jumped after the better-than-expected earnings report, with shares increasing by as much as 19 percent on Thursday to a 52-week high of $3.60. The company’s stock has more than doubled over the past 12 months.
The company did not provide exact guidance for its full-year 2024 earnings, but projected that, based on agent count growth, it expects continued year-over-year improvement in revenue, gross profit and adjusted EBITDA.
Email Ben Verde
Credit: Source link
