The Real Brokerage Inc. (NASDAQ:REAX) Q4 2022 Earnings Call Transcript

Tamir Poleg: Sure. What we’re seeing on the Title side is that gross margins are in the range of 80% to 85%. On the mortgage side, we’re seeing gross margins of about 60%, 65%. We have a short-term strategy on Title, which is again creating those JVs and inviting our agents to participate in those JVs. And this is how we secure those transactions that our agents are processing because they have an incentive to send them to the JV. Long-term, again, we want to embed Title into the consumer experience on the app, and it’ll be part of the seamless experience that we’re building for our agents clients. On the mortgage side, what we are now doing is just introducing our mortgage business to our agents, having a lot of events, a lot of interactions with the agents, asking them to try the services, highlighting the success stories.

As I mentioned, we are working on a — an offering that will allow our agents clients to close within 14 days with a 100% certainty that the loan will close. So this is something that doesn’t really exist in the industry. So we’re trying a lot of things. But it takes time, as I mentioned, to ramp up ancillary services revenue. I believe that this year we will start seeing more meaningful revenue coming from Title, and probably towards the back half of the year, we will see more significant revenue coming from mortgage. But at the end of the day, long-term if we think five years ahead, 10 years ahead, everything lies in the consumer experience that, that we’re building. And again, Title mortgage services will be embedded into that experience.

Operator: Thank you very much. Mr. Lee, there appears to be no further questions.

Jason Lee: Thank you. And if you have any additional questions for today’s earnings release, please feel free to contact me directly. Operator, would you please give the conference call replay instructions once again, thanks.

Operator: Absolutely. In order to access the replay, you need to call 877-481-4010 with a confirmation code of 47478. Once again, the replay phone number is 877-481-4010 and the confirmation code 47478. The replay will be available today at 2:00 PM Eastern. Ladies and gentlemen, this does conclude the conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.