New
Real Brokerage loses $458,000 (U.S.) in Q2 2020
2020-08-26 10:44 ET - News Release
Mr. Tamir Poleg reports
REVENUE FOR Q2 2020 OF $2.6 MILLION AND H1 2020 OF $5.5 MILLION
The Real Brokerage Inc. has filed its financial results for the three and six months ended June 30, 2020.
Additional information concerning Real's consolidated financial statements and related management's discussion and analysis for the three and six months ended June 30, 2020, can be found on SEDAR. Unless otherwise stated, all dollar amounts are in thousands of United States dollars.
Q2 2020 highlights include:
- Q2 2020 revenue of $2,594 represented a 25-per-cent decrease compared with Q2 2019 due to factors including a decrease in Q2 home-buying activity in the major urban areas where Real is concentrated due to COVID-19.
- Net operating loss in the quarter was $458 compared with $356 in Q2 2019 due to decreased revenue as a result of COVID-19.
- On June 12, 2020, Real commenced trading on the TSX Venture Exchange following a June 5, 2020, completion of a qualifying transaction with ADL Ventures Inc., a capital pool company.
- With the qualifying transaction, Real raised $1,588 by way of a private placement.
- On June 24, Real welcomed Peter Nobel and Erinn Nobel to the company's leadership team as chief strategy officer and chief culture officer, respectively, with the goal of accelerating long-term growth.
- Subsequent to the period end, on Aug. 12, 2020, Real closed a non-brokered private placement of 1,900 common shares at a price of 35 Canadian cents per common share for aggregate gross proceeds of $665 (Canadian) less customary expenses.
- Real exited the quarter with a cash balance of $1,748 compared with $54 at the end of Q1.
Chief executive officer comments
"The past few months have brought uncertainty, anxiety and grief to people across the world. COVID-19 is facing the global economy with unprecedented challenges. The overall U.S. market for home buying looks favourable with the consensus among economists that interest rates will remain under 4 per cent in 2020 and the National Association of Realtors reports a June, 2020, increase of 16.6 per cent in pending home sales. We believe that our technology-driven model is now more relevant and appealing than ever and we are upbeat by the encouraging signs of resilience of the real estate market in the U.S.," said Tamir Poleg, co-founder and chief executive officer of Real.
About The Real Brokerage Inc.
Real is a technology-powered real estate brokerage in 20 states of the United States and Columbia. Real is on a mission to make agents' lives better, creating financial opportunities for agents through higher commission splits, best-in-class technology, revenue sharing and equity incentives.