The Real Brokerage Reports Q2 2020 Results

Revenue for Q2 2020 of $2.6 million and H1 2020 of $5.5 million

TORONTO and NEW YORK, Aug. 26, 2020 /PRNewswire/ — The Real Brokerage Inc. (TSXV: REAX) (OTCQX: REAXF[1]) (“Real”), a national, technology-powered real estate brokerage in the United States of America (“U.S.”), announced it 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 (“MD&A”) for the three and six months ended June 30, 2020, can be found at[2]. Unless otherwise stated, all dollar amounts are in thousands of U.S. dollars.

Q2 2020 highlights include:

  • Q2 2020 revenue of $2,594 represented a 25% decrease compared to Q2 2019 due to factors including a decrease in Q2 home buying activity in the major urban areas where Real is concentrated due to COVID19.
  • Net operating loss in the quarter was $(458) compared to $(356) in Q2 2019 due to decreased revenue as a result of COVID19.
  • On June 12, 2020 Real commenced trading on the TSX-V following a June 5, 2020 completion of a qualifying transaction with ADL Ventures Inc. (“ADL”), 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 August 12, 2020, Real closed a non-brokered private placement of 1,900 common shares at a price of $0.35 (CAD) per common share for aggregate gross proceeds of $665 (CAD) less customary expenses.
  • Real exited the quarter with a cash balance of $1,748 compared to $54 at the end of Q1.

CEO 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 US market for home buying looks favorable with the consensus among economists that interest rates will remain under 4% in 2020 and the National Association of Realtors reports a June 2020 increase of 16.6% 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 US,” said Tamir Poleg, co-founder and CEO of Real.

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