Q4 2024 Reliance Global Group Inc Earnings Call
Joel Markovits: Editing by Joel Markovits Music by Joel Markovits Sound by Joel Markovits Director of Photography by Joel Markovits Production Designer by Joel Markovits
would heartfelt tribute to Herodotus Pius the Great.
[inaudible]
Joel Markovits: Do you have any questions after the call or would like any additional information about the company. Please contact crescendo communications at 2126711020.
Speaker Change: Before Mr. Baeten and review the company's operating results for the year ended December 31, 2024, we would like to remind everyone that this conference call may contain forward looking statements all statements other than statements.
Joel Markovits: The foxconn paint in Scotland.
Joel Markovits: Statements regarding our future results of operations and financial position strategy and plans and our expectations for future operations are forward looking statements. The words anticipate estimate expect project plan intend believe me they might well <expletive> could likely continue design.
Joel Markovits: And the negative of such tariffs and other words and terms and similar expressions are intended to identify forward looking statements.
Joel Markovits: These forward looking statements are based largely on the company's current expectations and projections about future events and trends that it believes it may affect its financial condition results of operations strategy short term and long term business operations and objectives and financial needs.
Joel Markovits: We're looking statements are subject to several risks and uncertainties.
Joel Markovits: Assumption is this.
Joel Markovits: And the company's Form 10-K filed with the U S Securities and Exchange Commission on March six 2025.
Joel Markovits: Both of these risks uncertainties and assumptions the forward looking events and circumstances discussed when he's got the call laid out of cart and actual results could differ materially and adversely from those anticipated or implied in the forward looking statement.
Joel Markovits: You should not rely upon forward looking statements as predictions of future events, although the company believes that the expectations reflected in the forward looking statements are reasonable it cannot guarantee future results level of activity performance or achievements. In addition, neither the company nor any other person responsibility for the accuracy and <unk>.
Joel Markovits: Please if any of these forward looking statements the company disclaims any duty to update any of these forward looking statements. All forward looking statements attributable to the company are expressly qualified in their entirety by these cautionary statement as well as others made on this conference call you should evaluate all forward looking statements made by the company in the context.
Joel Markovits: These risks and uncertainties.
Azure repayment: Said that I would now like to turn the call over to Azure repayment, Chairman and Chief Executive Officer of reliance Global group as well.
Azure repayment: Thanks, Ted and good afternoon, and thank you for everyone for joining US today. We are excited to share that 2024 has been a year of continued revenue growth and solid operational performance for reliance that's transformative year was fueled by our disciplined Cisco management strategic.
Azure repayment: Strategic investments in technology, and well targeted acquisition one firm strategy played a crucial role by seamlessly integrating our agency operations into a unified Tech driven platform. This approach not only boosted efficiency and cut costs, but also strengthen our net operating results. These efforts have greatly improved our profitability.
Azure repayment: And we believe positions us for long term scalable growth in the ever evolving insure tech landscape. In addition.
Azure repayment: We believe that the planned acquisition of <unk> Associates, which I am pleased to report it's now in the final stages and expect it to close in the near for its future and the ongoing expansion of rely on exchange AI powered quote and bind platform.
Azure repayment: Set to create substantial value for both the company and its shareholders are quote and bind platform has transformed the insurance purchasing experience by enabling agents to generate competitive competitive quotes and bond policies instantly by harnessing the power of AI automation and advanced data analytics, we are boosting efficiency.
Azure repayment: ANSI enhancing underwriting accuracy, and providing exceptional service to our agents and their clients.
Azure repayment: We have made substantial enhancements to rely exchange quote and bind platform reinforcing our position as a leader in the insurance Tech space since its initial beta launch at September the platform has rapidly expanded the feature a greater number of carriers and a wider selection of insurance product with even more upgrades on the horizon.
Azure repayment: Designed to simplify workflows for agents and enables them to generate close and bind policies instantly significantly boosting deficiency on speeding up the policy issuance process.
Azure repayment: Leveraging AI driven automation the platform enhances underwriting accuracy, while providing access to top tier carriers, which helps ensure our competitive pricing and a diverse range of coverage options.
Azure repayment: Alliance, we are committed to transforming the insurance industry through the strategic use of technology and automation by continuously expanding our quote and bind platform.
Azure repayment: We're clipping agents with advanced tools to improve efficiency close deals more quickly and drive profitability. This initiative is a key part of our strategy.
Azure repayment: <unk> realized <unk> as the most competitive and insurance friendly insured tech solution in the market looking ahead.
Azure repayment: We cannot be more excited about the future of reliance global group provide disciplined expansion strategy cutting edge technology and well planned acquisition. We are in a strong position to seize new opportunities in the rapidly evolving and insure tech space. The expected completion of the <unk> acquisition and the ongoing enhancements to our quote and bind platform.
Azure repayment: The start of what we believe will be a period of unprecedented growth we.
Azure repayment: We are committed to innovation operational excellence and delivering exceptional service to our agents and customers by staying true to our vision. We are confident that we can build realize into a multibillion dollar company highly profitable that create sustainable long term value for our shareholders.
Azure repayment: The momentum we have built in 2024 is just the beginning we are truly excited about what's in store for 2025 and beyond.
Speaker Change: Like to turn the call over to Joe Margaret Our Finance Chief Financial Officer, I've realized global through a few of the financial results for the year ended December 31, 2020 for Joe.
Speaker Change: Thank you Andrea and good afternoon.
Speaker Change: Pleasure share some key financial highlights for the year ended December 31st 2024.
All figures presented are approximates.
Speaker Change: You mentioned 2024 has been another year of sustained revenue growth and solid operational performance.
Speaker Change: Oh, Yeah for the year ended December 31, 2024 and 2023.
Speaker Change: Revenue increased by zero point $3 million.
Speaker Change: The 2% to $14 1 million.
Speaker Change: Compared with $13 7 million.
Speaker Change: This upward trend is attributed to sustained organic growth of our current in place operations.
Speaker Change: Commission expense increased by <unk> 5 million or 12%.
Speaker Change: Primarily driven by swings in the Companys Commission income revenue mix and organic revenue growth.
Speaker Change: Salaries and wages decreased 4% zero point $2 million, demonstrating the company's ability to effectively and efficiently utilize its human capital and still continue to organically grow revenues and operations.
Speaker Change: General and administrative expenses expense increased nominally facility and $1 million or 3% driven in part by general inflation and acquisition related costs, however, offset by onetime cost efficiency enhancements.
Speaker Change: Total operating expenses decreased by 21% or $5 9 million.
Speaker Change: This resulted in positive movement in our loss from operations, which improved at 45% or $6 2 million.
Speaker Change: Net loss decreased by <unk> million dollars or 24% to $91 million versus $12 $1 million.
Speaker Change: These positive swing results from amongst other things lower intangible asset impairment charges and more importantly, the company successfully simplifying its balance sheet decreasing eliminating previous encumbrances, resulting from southern fair value contingent warrant liabilities.
Those positions were liquidated or substantially reduced during 2024, thus minimizing adverse impacts from fair value swings testing of the company's profitability.
Speaker Change: Turning to EBITDA, our adjusted EBITDA metric, a non-GAAP measure, but key company performance indicator.
Speaker Change: EBITDA improved significantly during 2024 by 39% or zero point $2 million from a loss from Europe, and $5 million to a loss of $3 million.
Speaker Change: What about through the implementation of our one firm strategy.
Speaker Change: <unk> disciplined fiscal management and exciting organic operational growth.
Speaker Change: The 39% EBITDA improvements demonstrate the company's continued trend towards sustained EBITDA profitability.
Speaker Change: Hopefully these financial highlights were helpful and to close out our formal remarks.
Speaker Change: I want to reiterate Adam's comments were excited to be nearing a closing on a statin at M&A deal.
Speaker Change: And we remain laser focused on continuing to build a highly profitable business enterprise through expansion and innovation.
Speaker Change: Strengthening our market share and providing substantial returns and long lasting value to our shareholders.
Let me now turn the call back over to the operator to open the lines for questions comments or feedback operator.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen at this time, we will be conducting our question and answer session.
Speaker Change: If you would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: Confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue.
Speaker Change: Participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment, please while we poll for questions.
Speaker Change: Thank you.
Speaker Change: We have a question from Nicole Kaufman with Black Ridge capital Your line is nice.
Nicole Kaufman: Hi, Good afternoon, guys and thank you for taking my question.
Speaker Change: That acquisition seems to be on track, but can you provide any additional color or elaborate further on the status.
Speaker Change: So we would technically can tell you that much about it but I'll tell you. We're very excited we're getting close.
Speaker Change: Some other finishing touches are being done whatever had to be done.
Speaker Change: And we're excited as ever because.
Speaker Change: We're going to have great communication with Jonathan's bedner the numbers that we're seeing it in our Aurora developing phenomenon the growth has been beautiful.
Speaker Change: So excited about not on its business have with meshes with our business the cross selling abilities. The recognition that gives us the exposure to weather as we said on our announcements over 85000 employees.
Speaker Change: We couldnt be more excited it's really and is really heading in the right direction. We look forward to suing soon making that beautiful announcement.
Speaker Change: Well. Thank you for asking the question and I'm looking forward to the announcement as well I'll hop back in the queue. If I have an additional question. Thank you. Thank you. Thank you Nicole.
Speaker Change: Thank you once again, ladies and gentlemen, if you have any questions or comments. Please press star one on your telephone keypad at this time.
Speaker Change: Okay.
Speaker Change: As we have no further questions on the lines at this time I would like to hand, it back over to management for any closing remarks, they may have.
Speaker Change: Thank you.
Speaker Change: And welcome Angela and the entire reliance team. Thank you all for your participation in this business update.
Speaker Change: We're excited and energized by the Companys future and our incredibly happy Michelle respond with Johnny with you our valued shareholders and other interested parties.
Speaker Change: Next time, we wish you all the very best Thank you.
Speaker Change: Thank you. This does conclude today's conference you may disconnect. Your lines at this time and we thank you for your participation.