Reliance Global Group Inc (RELI) Q3 2024 Earnings Call Highlights: Revenue Growth and Strategic ...

GuruFocus.com11-08

Revenue: Increased by 5% to $3.4 million for Q3 2024. Total Operating Expenses: Decreased by 16% to $3.9 million. Net Loss: Approximately $837,000, improved by 54% from the previous year's comparable ...

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Warrant","start_time":0,"source_url":"https://finance.yahoo.com/news/reliance-global-group-inc-reli-073056064.html","article_id":"2481892146","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/gTUvNg3L72dCjnlue1XrAQ--~B/aD0xODA7dz0xODA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/871ddf96fc7a460f56a33d682ce8f961"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481892146","pubTimestamp":1731051056,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: Increased by 5% to $3.4 million for Q3 2024.Total Operating Expenses: Decreased by 16% to $3.9 million.Net Loss: Approximately $837,000, improved by 54% from the previous year's comparable quarter.Adjusted EBITDA: Positive $42,000, representing a 121% increase from the same period in the prior year.Commission Expense: Increased by 13% due to higher first-year commissions.Intangible Asset Impairment Charge: $3.2 million for the nine-month period ended 9/30/2024.GuruFocus has detected 5 Warning Signs with RELI.Reliance Global Group Inc  reported a 5% increase in revenue for the third quarter, reaching $3.4 million.Total operating expenses decreased by 16%, reflecting effective cost management.The company achieved a positive adjusted EBITDA of approximately $42,000, marking a 121% increase from the previous year.Despite improvements, Reliance Global Group Inc  reported a net loss of approximately $837,000 for the quarter.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"RELIW":"Reliance Global Group, Inc. Warrant","RELI":"Reliance Global Group, Inc."},"translate_title":"Reliance Global Group Inc(RELI)2024年第三季度收益看涨期权亮点：收入增长和战略……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RELI":1,"RELIW":0.9},"content_text":"Revenue: Increased by 5% to $3.4 million for Q3 2024.\nTotal Operating Expenses: Decreased by 16% to $3.9 million.\nNet Loss: Approximately $837,000, improved by 54% from the previous year's comparable quarter.\nAdjusted EBITDA: Positive $42,000, representing a 121% increase from the same period in the prior year.\nCommission Expense: Increased by 13% due to higher first-year commissions.\nGeneral and Administrative Costs: Decreased by 23%.\nMarketing and Advertising Costs: Decreased by 15%.\nSalaries and Wages Efficiency: Improved by 5%.\nIntangible Asset Impairment Charge: $3.2 million for the nine-month period ended 9/30/2024.\n\n\nWarning! GuruFocus has detected 5 Warning Signs with RELI.\n\nRelease Date: November 07, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nReliance Global Group Inc (NASDAQ:RELI) reported a 5% increase in revenue for the third quarter, reaching $3.4 million.\nTotal operating expenses decreased by 16%, reflecting effective cost management.\nThe company achieved a positive adjusted EBITDA of approximately $42,000, marking a 121% increase from the previous year.\nThe OneFirm strategy has successfully unified geographically dispersed insurance agencies, enhancing cross-selling and collaboration.\nThe anticipated acquisition of Spetner Associates is expected to double consolidated revenues and accelerate growth.\n\n Negative Points \n\nDespite improvements, Reliance Global Group Inc (NASDAQ:RELI) reported a net loss of approximately $837,000 for the quarter.\nCommission expenses rose by 13% due to higher first-year commissions, impacting overall financial results.\nThe company faced a $3.2 million intangible asset impairment charge, affecting year-to-date operating costs.\nThe integration of Spetner Associates, while promising, presents potential challenges in merging operations and realizing synergies.\nMarket perception issues related to previous warrant overhang may have impacted the company's share price.\n\n Q & A Highlights \nQ: Congrats on achieving positive adjusted EBITDA. Can you provide more details on the synergies and cost savings from the Spetner acquisition? A: Ezra Beyman, CEO: The potential for cross-selling is phenomenal, with over 85,000 employees needing various types of insurance. Our testing showed substantial savings, which could attract many customers. Spetner's advanced technology will help streamline expenses and back-office support. Joel Markovits, CFO: Spetner has strong revenue, around $14-$15 million annually, with a healthy EBITDA margin of 40%. This will significantly benefit us as we merge.\nQ: Following the acquisition, what are your plans for the excess cash flow? Would you consider buying back stock? A: Ezra Beyman, CEO: Buying back stock is a possibility, as we believe it's a bargain. I've previously bought significant blocks of stock. We aim to deploy capital smartly, whether through stock buybacks, growing the company, advancing technology, or acquisitions.\nQ: Can you elaborate on the financial improvements this quarter? A: Joel Markovits, CFO: Revenues increased by 5% to $3.4 million, and operating expenses decreased by 16%. This led to a 64% improvement in loss from operations. Adjusted EBITDA showed a $43,000 gain, a 121% improvement from last year. These results reflect our OneFirm strategy's success in cross-utilizing talent and consolidating vendor contracts.\nQ: How does the AI-powered commercial quote and buying solution impact your business? A: Ezra Beyman, CEO: The AI solution accelerates the quoting process, offering faster, more competitive quotes and seamless policy binding. This enhances client satisfaction and empowers agents to unlock new revenue streams, benefiting RELI Exchange through its commission-sharing model.\nQ: What are your expectations for the Spetner acquisition's impact on revenue and market position? A: Ezra Beyman, CEO: We expect the acquisition to nearly double our consolidated revenues and enhance our market position. Spetner's voluntary benefits program and market reach will create substantial synergies, accelerating our growth trajectory and expanding our personal insurance offerings through the RELI Exchange platform.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481892146"}