real brokerage It did not put the brakes on its rapid expansion.
During its second-quarter 2024 earnings call on Wednesday, the company said it added nearly 3,000 agents from April to June, a 70% increase year over year and a 250% increase compared to the second quarter of 2022.
The expanding number of brokers pushed brokerage revenue to $340 million, an 84% annual increase. Gross profit was US$31.9 million, an increase of 79.4% from a year ago. Real tallied a net loss of $1.2 million in the second quarter of 2024, although that was an improvement from the $4.1 million net loss in the second quarter of 2023.
The company believes adding more agents will help it combat the freezing housing market and rising mortgage rates that have hampered the industry’s growth.
“We are fairly macro-agnostic because we have proven that we can grow regardless of market conditions,” Real founder and CEO Tamir Poleg said on the earnings call. “Our model relies heavily on Our agents attract their friends, and because we rely on our agents to attract agents, that also means that each new agent that joins the company has the potential to attract one to five to ten other agents. So, we have. The more agents there are, the greater the opportunity.
The company’s ancillary services revenue continues to grow. Its equity income more than doubled year over year to $1.3 million, while mortgage income nearly tripled to $949,000.
“We are investing [in title and mortgage] driving revenue growth and enhancing the customer experience,” said Chief Financial Officer Michelle Ressler. “So we know these are high-margin businesses and expect them to be profit contributors in the near future.”
The call included updates on the company’s new divisions and technology offerings.
Its private label division, launched in January, allows independent brokerages to maintain their brands while also allowing them to leverage Real’s technology platform. The company said the program has attracted 20 independent brokerages and 700 agents so far this year.
In August 2023, Real launched Leo, an artificial intelligence chatbot, to provide brokers and agents with 24-hour assistance, contextualized communication and personalized marketing. The company expects the model to improve over time and plans to provide more information about the model at its October meeting.
