The Real Brokerage Inc. (NASDAQ:REAX) Q2 2023 Earnings Conference Call August 9, 2023 11:00 AM ET

Company Participants

Jason Lee - Vice President-Capital Markets and Investor Relations

Tamir Poleg - Chairman and Chief Executive Officer

Michelle Ressler - Chief Financial Officer

Conference Call Participants

Darren Aftahi - ROTH MKM

Stephen Sheldon - William Blair

David Marsh - Singular Research

Thomas White - D.A. Davidson

Operator

Good day, everyone, and welcome to The Real Brokerage Second Quarter 2023 Earnings Call. At this time all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation.

It is now my pleasure to turn the floor over to your host, Jason Lee. Sir, the floor is yours.

Jason Lee

Morning, everyone, and thank you for joining us today for Real's Second Quarter 2023 Earnings Call. With me on the call today are Tamir Poleg, our Chairman and Chief Executive Officer; and Michelle Ressler, our Chief Financial Officer. Morning, we'll file this financial statements and management discussion and analysis for the second quarter ended June 30, 2023, on SEDAR and EDGAR. These documents along with the accompanying earnings press release to be found on both SEDAR and EDGAR.

Before I turn the call over to Tamir, I'd like to remind everyone that the company will be making statements about its future results and other forward-looking statements during this call. Actual results may differ materially from these forward-looking statements and the risk factors that could cause these differences are detailed in our Canadian continuous disclosure documents and SEC reports. It disclaims any intent or obligation to update these forward-looking statements, except as expressly required by law.

Now with that, I'd like to turn the call over to Chairman and Chief Executive Officer, Tamir Poleg. Tamir, please proceed.

Tamir Poleg

Good morning, and thank you, Jason. During the second quarter, Real once again delivered best-in-class growth with our agents closing a record number of transactions, translating through record revenue and adjusted EBITDA profitability. This comes despite the challenging market backdrop that has resulted in many other brokerages posting year-over-year declines. Meanwhile, we see our agent productivity stabilizing and believe there is further upside as the market volume rebounds. We are pleased to have achieved the important adjusted EBITDA profitability milestone as communicated last quarter.

This is the direct result of the impressive agent growth we've experienced, our hard focus on maximizing our already-efficient cost structure over the past year and the revenue-generating changes we made to our model earlier this year. Due to the strong results this quarter and the strength of our platform, we anticipate remaining adjusted EBITDA positive in the back half of the year. To provide context to our operating performance during the quarter, let's review the state of the market.