The Real Brokerage Inc. (NASDAQ:REAX) Q1 2023 Earnings Conference Call May 11, 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

David Marsh – Singular Research

Wyatt Swanson – D. A. Davidson

Operator

Good morning, ladies and gentlemen, and welcome to the Real Brokerage First Quarter 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.

I will now turn the call over to Jason Lee, Vice President of Capital Markets and Investor Relations at The Real Brokerage. Sir, the floor is yours.

Jason Lee

Good morning, everyone, and thank you for joining us today for Real’s first 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. This morning, Real filed its financial statements and management discussion and analysis for the first quarter ended March 31, 2023, on SEDAR and EDGAR. These documents, along with the accompanying earnings press release can 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. Our 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. Real 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. Q1 of 2023 was a tough quarter for our industry once again, with elevated mortgage rates continuing to weigh on affordability for buyers and U.S. existing home sales down 26% year-over-year and 16% quarter-over-quarter. Against this difficult backdrop, we’re pleased to announce that Real continued to see exceptionally strong growth.

Our revenue for the quarter was $108 million, a 75% year-over-year increase and 12% sequential growth from the prior quarter. January tends to be the slowest month in real estate, and we are pleased to report a strong consecutive revenue increase in both February and March.