The Real Brokerage, Inc.

Good morning, ladies and gentlemen, and welcome to the Real Brokerage second 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. 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 second 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 second quarter, ended in June 30th, 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 would like to remind everyone that the company may make 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 would like to turn the call over to Chairman and Chief Executive Officer Tamir Pollock. Tamir, please proceed.

Thanks, Jason, and thank you to everyone joining the call today, including many listeners from our community of agents. We are excited by the progress we have made over the quarter, which is highlighted by continued rapid agent growth. We consider this a testament to the strong value proposition that REIT offers, which we believe is particularly attractive in more challenging macroeconomic environments as agents look for platforms that will allow them to be more productive. With 129% agent growth year-over-year in Q2, to just over 5,600 agents, we believe we are still continuing to see incredibly strong market share penetration by current economic headwinds. However, we remain alert and cautious and are continuing to monitor movements in the mortgage rates among other key economic factors, which have resulted in recent sharp decline in home sale transaction volumes in the market. Given the economic uncertainty, we are focused on strategic execution while navigating the current environment. Firstly, we are focused on capturing market share. As I previously mentioned, we witnessed phenomenal agent growth over the quarter. In addition, subsequent to the end of the quarter, we announced that we have exceeded the 6,000 agent milestone. Importantly, as we continue to navigate a shifting industry, we remain focused on the quality of our existing agent base and closely monitor agent productivity. As such, we have been identifying and filtering out non-producing agents from our platforms. This is an important piece of managing costs and expenses as we continue to pave the way for a successful path ahead. Additionally, we have witnessed voluntary self-churn at a higher rate than at the end of last year, which has been common across the industry. Similar to other trends we have witnessed across the space, the agents that have left our platform tend to be non-producing or low productivity agents. We expect this trend to continue given the current market dynamics, and aggregate transactions volume wane in the region where we operate. Again, despite the shift in the market, we continue to expand our net agent count growth at a tremendous rate, which leaves us optimistic about the agent proposition and the ability of our business model to perform through cycle. As part of our growth strategy, we recently brought a new VP of sales, Rob Kim, who, in addition to being a 20-year real estate veteran, comes from NOC, a B2C real estate startup where he managed strategic business partnerships. Rob has already made strong headway in building our agent and team pipeline, and we are excited for him to help further our expanding footprint. On the expansion front, we expanded to Mississippi over the quarter. This brings our total footprint to 44 states, DC, and two Canadian provinces. We're also focused on new ways of monetizing our existing platform. In Q4 of 2021, we launched our Instant Payment program, which gives agents the option to be paid at the time a transaction is executed rather than at closing. While revenue from the program currently remains a small contributor overall, it grew 172% on a dollar basis from Q1 as adoption continues to increase. Additionally, we renegotiated our partnership with Chime, a real estate CRM tool that assists agent productivity while allowing for future revenue opportunities for real. We were able to capture upgraded features at a steep discount off the retail price to offer a compelling package to real agents. We appreciate the partnership and believe this will add significant value to agents' production goals. In addition, We are excited to announce that we are officially expanding our relaunch early career mentoring program to 12 additional states, in addition to the initial successful pilot program in Texas and California, which was also launched during the quarter. This program is geared towards our agents that are new to the field, as well as those looking to reboot their existing careers through coaching. It represents an incredible opportunity for real to help develop a pipeline of high-producing agents in a quicker fashion while receiving a 50% commission split on transactions completed during the eight-month program. The bottom line is that it represents an important new revenue stream for the company while elevating our top-producing agent force. This is only phase one in a holistic overall of our existing agent training programs. We have a number of exciting new revenue-generating opportunities in development, including a mid-career coaching program to help agents take their business to the next level. More information on our coaching program to come at our upcoming inaugural One Real Conference. In October of this year, we plan to host an agent-focused conference in San Antonio, Texas. The event will be attended by both current and prospective agents and will feature world renowned real estate experts, Brian Serhant as our keynote speaker. The conference allows agents to learn from industry experts and showcase new ways to maximize real estate potential through interactive training sessions. It is also an opportunity for us to build a sense of community amongst existing agents and strengthen their affinity for the real brand. At RIO, we continue to invest in our agents, giving them the resources needed to build and weatherproof their business. In June, we launched our agent success program, which is an early life cycle management program that creates communication touch points with recently onboarded agents to connect with all of our resources to help them establish a path of success. We believe this program will not only help integrate agents onto our platform and help them become productive more quickly, but it will also improve retention and reduce agent support tickets, which ultimately results in greater agent and platform efficiency. In June, we also launched Knowledgebase, a new self-service support portal that enables agents to get their questions answered around the clock. Since implementing this tool, our support ticket per agent dropped significantly and enabled our support team agents to address support tickets faster and more effectively. That's the benefit of leveraging technology to do more with less. We also implemented Real Design Center, a platform of customizable marketing assets that will enable agents to increase their production. These real branded assets are integrated with MLS data, including property photos and descriptions, so agents can automatically create social media and print assets. Agents can even print and ship to prospects directly through the tools. This is a game changer for agents looking to increase brand awareness in their respective areas. In late June, we launched OneReal.com, a consumer-focused website that showcases real estate listings and provides agents and brokerage information directly to consumers. The site features in-depth search functionality that allows users to find properties to buy, sell, or rent based on the following criteria. location, price, home type, number of bedrooms, number of bathrooms, and amenities. This website acts as our corporate site and is part of our consumer-facing efforts. I want to clarify that this is not the consumer portal strategy that we have previously been discussing. We are on track to touch more on this strategy at the OneWheel conference in October. On the technology front, we are excited to have launched a new addition to our tech stack, which represents a transformational enhancement to our agent software. We think about this sea change in innovation as a real app 2.0 moment, as it affects how we are able to operate on the backend, replacing our need to industry standard third-party vendor Skyslope for documentation management. Our new proprietary software enables the ability to have more control over our processes to enhance agent productivity and allows for further customization. Real Software is an all-in-one app for transaction entry, document storage, brokerage review, compliance approval, communication, transaction document generation, payment processing, and account reconciliation. Real Agents now have enhanced visibility into the progress of their transactions through status updates, a sleek commenting system, and a road to success program bar that tracks the journey of the transaction from entry to settlement. Agents can upload their documentation directly into the real app, enabling not only a more streamlined process, but also complete visibility into and control over agent transactions. The software is intuitive and easy to use, allowing agents to enter a deal so to finish in under 10 minutes. As a test run, I was personally able to input a deal in just a few minutes and without instructions as our development team created an experience that is incredibly user-friendly and intuitive. To emphasize what we have created, this proprietary technology is a game changer in our industry. No other brokerage has anything close. We have received extremely positive feedback from our Canadian agents and we will be rolling it out in individual states throughout August and September, leading up to a company-wide launch at our One Wheel Conference in October. As we look ahead to the remainder of 2022 and beyond, we remain focused on assessing key building blocks to fulfill our vision of a one-stop shop company to better elevate the home buying experience. As we have previously mentioned, the next important step on the build-out roadmap is owning mortgage capabilities. We are still in the process of searching for a business that best fits the criteria and mortgage company valuations continue to look increasingly attractive. Separately, with regards to progress at RealTitle, we continue to make inroads having formed a JV in Texas in Q2 and one in Florida subsequent to the end of the quarter, which partner with top real agents. We believe that through enhancements to our app, as well as rolling out the consumer facing strategy, we will be able to drive higher tax rates in the future. And before I conclude my remarks, I would like to know that in July, we graduated to the Toronto Stock Exchange from the TSX Venture Exchange. This marks an important next step in increasing our global visibility and expanding our investor base. According to the exchange, only 32% of TSX-V listed companies successfully graduate to Toronto Stock Exchange, and those that do, on average, take four years to uplist. We are proud of having been able to achieve the stricter listing requirements to graduate and for accomplishing this goal in half the average time. At this point, I will now turn it to Michelle for a more in-depth view of our financial results. Michelle?