reAlpha Tech Corp. Announces Over 440% Increase in Revenue for the Quarter Ended September 30, 2024
DUBLIN, Ohio, Nov. 12, 2024 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (NASDAQ:AIRE) (the "Company," "reAlpha,"), a real estate technology company developing and commercializing artificial intelligence ("AI") technologies, today announced financial results for the quarter ended September 30, 2024.
Third Quarter 2024 Financial Highlights:
Revenue was approximately $339,000 for the three months ended September 30, 2024, an increase of approximately 440% from the quarter ended June 30, 2024, and a 475% increase year-over-year ("YoY").
Revenue exceeded the high end of the revenue growth guidance provided in the Company's second quarter earnings release by 274%.
Cash and cash equivalents of approximately $7.07 million as of September 30, 2024.
Net loss was approximately $(2.10) million for the three months ended September 30, 2024.
Adjusted EBITDA was approximately $(1.36) million, a decrease of 19% from the quarter ended June 30, 2024, and an 86% decrease YoY.
Outlook for Quarter Ending December 31, 2024
reAlpha's revenue for the quarter ended September 30, 2024, exceeded the high end of the revenue growth guidance provided in reAlpha's second quarter earnings release by 274%, and reAlpha expects to achieve the following results for the quarter ending December 31, 2024:
Revenue to grow 130% to 190% from the quarter ended September 30, 2024.
Completion of integration of Be My Neighbor (acquired September 2024) into reAlpha's business.
Mike Logozzo, President and Chief Operating Officer of reAlpha, commented: "Our acquisition-led growth strategy continues to drive positive results, as demonstrated by an over 440% quarter-over-quarter revenue increase. We're excited to build on this momentum by further investing in AI technology and acquisitions to further accelerate our growth trajectory."
reAlpha intends to continue investing in technologies to commercialize them for the general public, and to target and acquire companies to fuel additional growth.
Business Highlights
Completed reAlpha's 5th acquisition: Be My Neighbor, a mortgage brokerage licensed in 27 U.S. states. Since inception in 2018, they have achieved an aggregate of $566 million in total loan volume across 1,760 loans. This acquisition expanded reAlpha's real estate services by adding the ability to get a mortgage or refinance through the platform.
Launched the reAlpha Super App for mobile devices, bringing an end-to-end, commission-free real estate homebuying experience to mobile users.
Launched reAlpha AI Labs, a research and development investment initiative to foster partnerships and potentially invest in AI startups. reAlpha AI Labs made its first investment this quarter into Xmore AI, a cybersecurity AI company. This initiative seeks to support the growth of early-stage AI companies, creating technology that aligns closely with reAlpha's long-term vision.
Acquired AiChat Pte. Ltd. ("AiChat"), an award-winning AI-powered chat solution provider. This scaled the Company's global presence to 10 countries, including Singapore and Malaysia. AiChat's capabilities are also being integrated into the reAlpha platform to enhance its user experience.
Completed the integration of AiChat and Hyperfast.
About reAlpha Tech Corp.
reAlpha Tech Corp. (NASDAQ:AIRE) is a real estate technology company developing an end-to-end commission-free homebuying platform. Utilizing the power of AI and an acquisition-led growth strategy, reAlpha's goal is to offer a more affordable, streamlined experience for those on the journey to homeownership. For more information, visit www.realpha.com.
About the reAlpha Platform
reAlpha (previously called "Claire"), announced on April 24, 2024, is reAlpha's generative AI-powered, commission-free, homebuying platform. The tagline: No fees. Just keys.™, reflects reAlpha's dedication to eliminating traditional barriers and making homebuying more accessible and transparent.
reAlpha's introduction aligns with major shifts in the real estate sector after the National Association of Realtors agreed to settle certain lawsuits upon being found to have violated antitrust laws, resulting in inflated fees paid to buy-side agents. This development is expected to result in the end of the standard six percent sales commission, which equates to approximately $100 billion in realtor fees paid annually. The reAlpha platform offers a cost-free alternative for homebuyers by utilizing an AI-driven workflow that assists them through the homebuying process.
Homebuyers using the reAlpha platform's conversational interface will be able to interact with Claire, reAlpha's AI buyer's agent, to guide them through every step of their homebuying journey, from property search to closing the deal. By offering support 24/7, Claire is poised to make the homebuying process more efficient, enjoyable, and cost-efficient. Claire matches buyers with their dream homes using over 400 data attributes and provides insights into market trends and property values. Additionally, Claire can assist with questions, booking property tours, submitting offers, and negotiations.
Currently, the reAlpha platform is under limited availability for homebuyers located in 20 counties in Florida, but reAlpha is actively seeking new MLS and brokerage licenses that will enable expansion into more U.S. states.
For more information, please visit www.reAlpha.com.
Forward-Looking Statements
The information in this press release includes "forward-looking statements". Any statements other than statements of historical fact contained herein, including statements as to future results of operations and financial position, expected revenue in future periods, planned acquisitions, business strategy and plans, objectives of management for future operations of reAlpha, market size and growth opportunities, competitive position and technological and market trends, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "could", "might", "plan", "possible", "project", "strive", "budget", "forecast", "expect", "intend", "will", "estimate", "anticipate", "believe", "predict", "potential" or "continue", or the negatives of these terms or variations of them or similar terminology. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: reAlpha's ability to pay contractual obligations; reAlpha's liquidity, operating performance, cash flow and ability to secure adequate financing; reAlpha's limited operating history and that reAlpha has not yet fully developed its AI-based technologies; whether reAlpha's technology and products will be accepted and adopted by its customers and intended users; reAlpha's ability to integrate the business of its acquired companies into its existing business and the anticipated demand for such acquired companies' services; reAlpha's ability to successfully identify and acquire companies that are complementary to its business model; reAlpha's ability to commercialize its developing AI-based technologies; the inability to maintain and strengthen reAlpha's brand and reputation; any accidents or incidents involving cybersecurity breaches and incidents; the inability to accurately forecast demand for short-term rentals and AI-based real estate-focused products; the inability to execute business objectives and growth strategies successfully or sustain reAlpha's growth; the inability of reAlpha's customers to pay for reAlpha's services; the inability of reAlpha to obtain additional financing or access the capital markets to fund its ongoing operations on acceptable terms and conditions; the outcome of any legal proceedings that might be instituted against reAlpha; changes in applicable laws or regulations, and the impact of the regulatory environment and complexities with compliance related to such environment; and other risks and uncertainties indicated in our U.S. Securities and Exchange Commission ("SEC") filings. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Although reAlpha believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. reAlpha's future results, level of activity, performance or achievements may differ materially from those contemplated, expressed or implied by the forward-looking statements, and there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements. For more information about the factors that could cause such differences, please refer to reAlpha's filings with the SEC. Readers are cautioned not to put undue reliance on forward-looking statements, and reAlpha does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Relations
Media Contactirlabs on behalf of reAlphaFatema
REALPHA TECH CORP.Condensed Consolidated Balance SheetSeptember 30, 2024 and December 31, 2023
September 30,2024
December 31, 2023
(unaudited)
ASSETS
Current Assets
Cash
$
7,076,877
$
6,456,370
Accounts receivable
171,781
30,630
Prepaid expenses
49,535
242,795
Other current assets
687,287
670,499
Total current assets
7,985,480
7,400,294
Property and Equipment, at cost
Property and equipment, net
105,980
328,539
Other Assets
Investments
215,000
115,000
Other long term assets
31,250
406,250
Intangible assets, net
4,082,925
997,962
Goodwill
21,410,467
17,337,739
Capitalized software development - work in progress
359,720
839,085
TOTAL ASSETS
$
34,190,822
$
27,424,869
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts payable
$
614,512
$
461,875
Related party payables
5,539
-
Short term loans - related parties -current portion
128,225
-
Short term loans - unrelated parties -current portion
675,400
190,095
Notes payable, net of discount -current portion
3,330,000
-
Accrued expenses
1,190,273
817,114
Deferred consideration - current portion
1,805,525
-
Total current liabilities
7,749,474
1,469,084
Long-Term Liabilities
Deferred liabilities
1,000,000
1,000,000
Mortgage and other long term loans - related parties - net of current portion
67,671
-
Mortgage and other long term loans - unrelated parties - net of current portion
276,371
247,000
Note payable, net of discount and current portion
1,458,125
-
Other long term liabilities
1,086,000
-
Total liabilities
11,637,641
2,716,084
Stockholders' Equity (Deficit)
Preferred stock, $0.001 par value; 5,000,000 shares authorized, 0 shares issued and outstanding as of September 30, 2024 and December 31, 2023
-
-
Common stock ($0.001 par value; 200,000,000 shares authorized, 45,570,967 shares outstanding as of September 30, 2024; 200,000,000 shares authorized, 44,122,091 shares outstanding as of December 31, 2023)
45,572
44,123
Additional paid-in capital
39,770,353
36,899,497
Accumulated deficit
(17,233,742
)
(12,237,885
)
Accumulated other comprehensive loss
(33,917
)
-
Total stockholders' equity (deficit) of reAlpha Tech Corp.
22,548,266
24,705,735
Non-controlling interests in consolidated entities
4,915
3,050
Total stockholders' equity (deficit)
22,553,181
24,708,785
TOTAL LIABILITIES AND STOCKOLDERS' EQUITY
$
34,190,822
$
27,424,869
REALPHA TECH CORP.Condensed Consolidated Statements of Operations and Comprehensive (Loss) IncomeFor the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30,2024
September 30,2023
September 30,2024
September 30,2023
Revenues
$
339,227
$
59,022
$
422,006
$
225,300
Cost of revenues
113,361
30,360
139,687
149,518
Gross Profit
225,866
28,662
282,319
