Real Matters (REAL) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 saw consolidated revenue rise 5% to $172.7M and net revenue up 8% to $46.4M, with Adjusted EBITDA improving to $1.9M from a $2.4M loss in 2023, driven by disciplined cost management and market share gains across all segments.

• Added 16 new clients and launched four new channels, achieving market share gains in all three segments.

• Ended fiscal year with $49.1M in cash and no debt, maintaining a strong balance sheet.

• Net income turned positive for fiscal 2024, up from a $6.2M loss in 2023; Q4 saw a net loss of $0.2M.

• Positioned for growth as pent-up demand in the U.S. mortgage market builds, with significant refinance potential and readiness to scale.

Financial highlights

• Fiscal 2024 consolidated revenue rose 5% year-over-year to $172.7M; net revenue up 8% to $46.4M.

• Adjusted EBITDA improved to $1.9M from a $2.4M loss in 2023.

• Q4 consolidated revenue and net revenue both up 8% year-over-year to $45.6M and $12M, respectively; Q4 Adjusted EBITDA of $0.6M.

• Fiscal 2024 net income was breakeven, compared to a net loss of $6.2M in fiscal 2023.

• Ended fiscal year with $49.1M in cash and no debt.

Outlook and guidance

• Optimistic for fiscal 2025, expecting growth from pent-up demand and a large pool of refinance candidates, with 40% of future buyers planning to purchase when rates decline.

• Anticipates margin and profitability expansion as transaction volumes increase, with significant capacity to absorb higher volumes without major OpEx increases.

• Plans for a few million dollars in technology investment in 2025 to enhance platform performance and maintain competitive edge.

• Plans to expand U.S. Title business and drive higher transaction volumes to improve margins and profitability.