The Real Brokerage, Inc.

Good day, ladies and gentlemen, and welcome to the Real Brokerage's first quarter 2022 earnings call. At this time, all participants have been placed on a listen-only mode, and the floor will be open 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.

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 Polig, our Chairman and Chief Executive Officer, and Michelle Ressler, our Chief Financial Officer. This morning, REEL filed its financial results as well as its management discussion and analysis for the first quarter ended March 31, 2022, on Cedar and Edgar. These documents, along with the accompanying press release, can be found on both Cedar 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.

Thanks, Jason, and thanks everyone for joining today. I would like to start by thanking the hundreds of agents and large teams who joined us 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 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 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. Moving to agent referrals, a principal factor driving our growth. We believe we appeal to agents by providing the best tools, incentives, and more importantly, culture. I'd like to reiterate that agents are highly social individuals and they're attracted to like-minded people. They're attracted to our culture. We managed to build a culture of working hard and being kind and collaborating. We have events across the country throughout the year to develop this culture. We also have a director of culture who is rolling out programming to maintaining these important values. We feel that this is attracting a lot of agents who not only see the opportunity, they also see the opportunity of belonging to something greater that resonates with their values. Just as an example, this is what attracted NVIDIATA, a team of 35 years of success in real estate, onto our platform in February. With a focus on luxury homes, NVIDIATA has sold more than $4 billion in residential real estate since 1985 and has been named the number one REMAX team in Canada 15 times. It is also what attracted the North Group, which continues to expand its network of over 40,000 clients. investors, and realtors in early March. Additionally, our platform attracted the Perry Group this quarter, which ranked as the top team in Utah on RealTrend's mega teams list for 2021. We are proud to say that NVIDIADA, the North Group, and the Perry Group are now part of the Real Team and look forward to having them play an important role in our growth. Moving to retention. Agents enjoy the benefits at Real. It's an element of why they come, and why they stay. These benefits include equity incentives, most opting to our equity benefits. I'm pleased to share that consistency in retention continues as agents are enjoying taking advantage of everything we have to offer. Now turning to product focus. I'm glad to update that in Q1, we continued increasing the product offering of infant payments to more and more agents. As you may recall, This is a product we launched last October, and it is progressively increasing in adoption, providing an increased benefit to agents. Other product highlights include the acquisition of Expert Title Inc. in January of this year, which in April has been rebranded as Real Title. Real Title simplifies the paper-intensive and time-intensive title and SQL process, reducing errors and saving time. Tools such as title orders and ranking, title information, contracts and document storage that were a part of the original Expatitle app will now be integrated into Reels app. Full integration is expected to be completed in a few short months. In terms of Q1, March was the highest revenue month for Reels title since the company started. So we are seeing progress in revenue growth monthly. Finally, in terms of product, development continues on our consumer-facing technology. As I've previously mentioned, this will enable Real to grow beyond traditional brokerage into a large online real estate company that aims to change the way people buy and sell homes, fixing an outdated and broken process. Finally, moving on to the efficiency of our team, we continue to grow headcount and real estate transactions efficiently. In fact, as of March 31st, 2022, our efficiency ratio, which is the full-time employee divided by the number of agents that are currently on our team, remains high right around 1 to 55. We believe this continues to be a competitive advantage. To conclude, Q1 was another successful period for the company. We are growing rapidly and adding ancillary services to our core brokerage offerings. We are operating sustainably with a sturdy balance sheet and positive cash flow. At this point, I will now turn it to Michelle for a more in-depth view of our financial. Michelle?