The Real Brokerage (REAX) 2024 RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference summary

Company overview and growth

• Founded in 2014, operates as a real estate technology platform with brokerage, mortgage, and title services.

• Public since 2020, with rapid agent growth from 800 in 2020 to nearly 23,000 currently.

• Revenue has grown 80%-100% year-over-year since 2020, despite a challenging housing market.

• Focuses on attracting high-producing agents from traditional brokerages, not newly licensed ones.

• Market share gains in key regions, such as 30% in San Diego and 15% in Calgary.

Agent economics and retention

• Agents pay a $249 joining fee, $750 annual fee, and split commissions 85/15 with a $12,000 annual cap.

• After reaching the cap, agents keep 100% of commissions, paying only a $350 transaction fee.

• About 12% of agents hit the cap; per-agent productivity is above industry average.

• Revenue churn is below 2% per quarter, much lower than the industry average of 10%.

• Equity incentive program allows agents to earn RSUs and purchase shares, with $16 million in stock bought last quarter.

Technology and operational efficiency

• Mobile-first platform with productivity tools, transaction management, and 24/7 support.

• Automated brokerage operations enable a 1:140 employee-to-agent ratio, far more efficient than industry norms.

• AI-powered document review system detects errors in seconds, reducing manual labor.

• Community features foster collaboration and mentorship among agents.

• New AI assistant, Leo, to launch in Q2 2025, will automate client interactions and task management via text.