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Cloud-based real estate agency The Real Brokerage posted a sharp increase in revenue during the first quarter while setting a new quarterly record for recruitment, according to earnings data released Tuesday morning.
The Real Brokerage reported revenue of $200.7 million during the first quarter of 2024, an increase of 86 percent from the first quarter of the prior year, while gross profit reached $20.8 million, a 92 percent increase from a year earlier. At the same time, the brokerage saw more than 3,000 new agents, according to the data, bringing its total agent count to 16,680, a 67 percent annual increase.
“Real delivered exceptional results in what is traditionally the lowest revenue quarter of the year, while setting a new quarterly record for net agent additions, which surpassed 3,000,” Real CEO Tamir Poleg said in a statement. “Despite higher interest rates and tight inventory impacting overall housing market activity, our strong start to 2024 and our robust transaction pipeline — currently at an all-time high — position Real well for continued significant revenue growth and improved profitability, irrespective of how the end market recovers.”
According to the earnings data, the total value of real estate transactions completed by the brokerage reached $7.5 billion by the end of the first quarter, an increase of 88 percent from the $4.0 billion reported a year earlier. The firm reported a total of 19,032 transactions, a 74 percent annual increase.
Net losses incurred by the owners of the company reached $16.1 million during the quarter, which includes $9.25 million of litigation expenses incurred by the company through the settlement of commission lawsuits. Total operating expenses reached $36.5 million for the quarter, a 104 percent increase from a year earlier when they were $17.8 million.
The first quarter saw Real formally launch its ProTeams and Private Label affiliation initiatives, both of which aim to make it easier for independent brokerages and team leaders to join Real. The initiatives give new affiliates access to Real’s internal software solutions and its cascading efficiencies while allowing them to sustain their existing consumer-facing brand. According to the earnings report, over 200 agents joined Real during the first quarter through the Private Label program, and executives project that that number will more than double during the second quarter.
The brokerage recently welcomed Atlanta-based Village Premier Collection into its ranks, the largest minority and women-owned independent brokerage in the United States.
