The Real Brokerage Inc. (NASDAQ:REAX) Q1 2022 Earnings Conference Call May 9, 2022 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 Capital Partners

Tom White - D.A. Davidson

Operator

Good day, ladies and gentlemen. And welcome to The Real Brokerages First Quarter 2022 Earnings Call [Operator Instructions].

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

Jason Lee

Good morning, everyone, and thank you for joining us today for Real's First Quarter 2022 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 results as well as its management discussion and analysis for the first quarter ended March 31, 2022 on SEDAR and EDGAR. These documents, along with the accompanying 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 statements in this earnings call, which are not historical facts, may be forward-looking. 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

Thanks, Jason, and thanks, everyone, for joining today. I would like to start by thanking the hundreds of agents and large teams who joined Real in the past few months, and to our community of agents who have contributed to the growth we are experiencing. I will now continue by highlighting some top-level financial results. Then, I will provide some operational updates in turn before turning it over to our Chief Financial Officer, Michelle Ressler, to dive deeper into our financials. Let's start with the first quarter financial results. Q1 revenue was $61.6 million, an increase of 562% year-over-year. Driving that growth was a 140% increase in real estate agents joining Real, as well as the 176% increase in the revenue per agent to nearly $14,000. Now turning to operating highlights. In terms of geographical expansion, during the first quarter, we announced Real's expansion into New Mexico, Arkansas and Maine. And in Canada, we launched in Ontario. Subsequent to the end of the quarter, we announced our expansion into Mississippi, bringing our tally of states to 43 states, the District of Columbia and two provinces in Canada. We are pleased with our expansion efforts and plan to focus on growing deeper within our existing areas in North America.