Loading...
01/09 19:53
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call indicates strong financial performance with significant growth in transactions, revenue, and gross profit. Although there are challenges like litigation expenses and increased operating costs, the company is managing these well. The share repurchase program is a positive indicator for shareholder returns. Despite not providing formal guidance, the focus on profitability and agent benefits suggests confidence in future growth. The market's reaction is likely to be positive, driven by strong financials and strategic initiatives.
Total Transactions 120,601 transactions, an increase of 81% from 2023.
Total Transaction Value $49 billion, up 90% year over year.
Revenue $1.3 billion, marking an increase of 84% from $689 million in 2023.
Gross Profit $114.7 million, an increase of 82% from $62.9 million in 2023.
Adjusted EBITDA $40 million, up 188% from $13.9 million in 2023.
Operating Expenses $140 million, including $10.4 million related to antitrust litigation, compared to $88.9 million in 2023.
Net Loss $26.5 million, compared to a net loss of $27.5 million in 2023.
Cash Flows from Operations $49 million generated in 2024.
Revenue in Q4 2024 $351 million, an increase of 93% from $181 million in Q4 2023.
Gross Profit in Q4 2024 $30 million, an increase of 93% from $15.5 million in Q4 2023.
Adjusted EBITDA in Q4 2024 $9.1 million, a $600,000 increase from $8.5 million in Q4 2023.
Operating Loss in Q4 2024 $6.4 million, compared to an operating loss of $11.3 million in Q4 2023.
Net Loss in Q4 2024 $6.6 million, compared to a net loss of $12 million in Q4 2023.
Revenue Share Expense in Q4 2024 $9.5 million, a 39% increase from $6.8 million in Q4 2023.
Cash and Investments at End of Q4 2024 $32.8 million, compared to $32 million at the end of Q3 2024.
Total Value of Homes Transacted in Q4 2024 $14.6 billion, a 115% year over year increase.
Median Sale Price in Q4 2024 $380,000, representing a 7% year over year increase.
Adjusted Operating Expense per Transaction in Q4 2024 $565, a decline of 11% year over year from $632.
Agent Count at End of 2024 24,140 agents, up 77% from the prior year.
Agent Count as of Q1 2025 Approximately 26,200 agents, an increase of 2,000 since the start of 2025.
Leo Copilot: AI powered agent assistant integrated across the brokerage platform, handling over 2,000 daily agent interactions.
Real Wallet: Fintech platform for agents, offering business checking accounts and credit lines, with 2,500 accounts opened and $7 million in deposits.
One Real Mortgage and One Real Title: Combined growth of 105% in 2024, with significant contributions to gross profit despite low revenue share.
Agent Growth: Added over 10,000 net agents in 2024, reaching 24,140 agents, with a strong pipeline for future growth.
Private Label Program: Welcomed approximately 40 independent brokerages, adding nearly 1,200 agents, including a significant addition of 550 agents from Harvest Realty.
Luxury Market Presence: Launched Real Luxury division, closing over $1 billion in luxury transactions with 230 certified agents.
Operational Efficiency: Adjusted operating expense per transaction declined 11% year over year, reflecting improved efficiencies.
Agent Retention: Revenue churn remained steady at 1.8% in Q4 2024, indicating strong retention of productive agents.
Business Model Changes: Increased transaction fees and adjusted commission caps in the U.S. and Canada to manage costs and enhance agent experience.
Market Conditions: Existing home sales remain near historic lows and mortgage rates are higher for longer, which could impact transaction volumes and revenue.
Regulatory Changes: Changes in the business model include increased transaction fees and adjustments to the stock purchase plan, which may affect agent satisfaction and retention.
Operational Costs: Increased operating costs and inflation are challenges that the company is managing through adjustments in fees and commissions.
Competition: The real estate industry is highly competitive, and the company must continuously innovate to maintain its market position.
Agent Retention: While the company has a low revenue churn rate of 1.8%, some level of churn is inevitable due to diverse agent business models and personal circumstances.
Litigation Expenses: The company incurred approximately $10.4 million in expenses related to antitrust litigation, which could impact financial performance.
Agent Growth: In 2024, Real added over 10,000 net agents, closing the year with more than 24,000 agents, reflecting a strong appeal of the company's model.
Leo Copilot: An AI-powered agent assistant integrated into the brokerage platform, handling over 2,000 daily interactions to enhance productivity.
Real Wallet: A fintech platform for agents, with 2,500 agents opening business checking accounts and an annualized revenue run rate of over $500,000.
One Real Mortgage and One Real Title: These high-margin ancillary business lines grew by a combined 105% in 2024, with expectations for continued growth in 2025.
Real Luxury Division: Launched in May 2024, it has closed over $1 billion in luxury transaction volume, with another $1 billion in the pipeline.
2025 Revenue Expectations: While formal guidance is not provided, significant year-over-year improvement in revenue, gross profit, and adjusted EBITDA is expected.
First Quarter Outlook: Revenue is expected to decline sequentially compared to Q4 2024, consistent with seasonal trends.
Gross Margin Expectations: First quarter gross margin is expected to be in the mid 9% range, with a focus on driving gross margin improvement.
Agent Retention: Revenue churn was only 1.8% in Q4 2024, indicating strong retention of productive agents.
Share Repurchase Program: Allocated $36 million to share repurchases in 2024, including $6 million in Q4 2024.
The earnings call reveals mixed signals: positive revenue growth and strong product adoption, but challenges like expected revenue decline, increased operating expenses, and unclear guidance on key metrics. The Q&A highlights confidence in agent growth and ancillary service improvements, yet lacks concrete timelines for monetization and profitability. These factors suggest a balanced outlook, leading to a neutral stock price prediction.
The earnings call summary presents a mixed outlook. While there are positive developments like agent productivity growth, technology and AI advancements, and positive EPS, there are concerns about declining margins and unclear timelines for ancillary services and Real Wallet. The Q&A session reveals ongoing challenges and uncertainties, particularly in achieving growth targets. Without market cap information, the overall sentiment is neutral, as positive and negative factors balance each other.
The company demonstrates strong financial performance with significant revenue and profit growth, alongside a substantial increase in agent count and transactions. The strategic initiatives, including AI integration and ancillary services growth, indicate future potential. Despite some legal and regulatory challenges, the positive impact of share repurchases and a strong market position bolster the outlook. The Q&A reveals confidence in market share gains and operational improvements, though some caution is warranted due to the lack of formal guidance on net margins. Overall, the sentiment is positive, with potential for a stock price increase.
The earnings call indicates strong financial performance with significant growth in transactions, revenue, and gross profit. Although there are challenges like litigation expenses and increased operating costs, the company is managing these well. The share repurchase program is a positive indicator for shareholder returns. Despite not providing formal guidance, the focus on profitability and agent benefits suggests confidence in future growth. The market's reaction is likely to be positive, driven by strong financials and strategic initiatives.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
