Reliance Global (RELI) 7 Nov 242024 Q3 Earnings call transcript

Good day, and welcome to the Reliance Global Group Third Quarter Business Update Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Ted Ayvas, Investor Relations at Reliance Global. Sir, the floor is yours.

Thanks, Tom. Good afternoon, and thank you for joining Reliance Global Group's 2024 Third Quarter Financial Results and Business Update Conference Call.

us of Ezra Joel Reliance Financial of with Chief Chairman Markovits, call Officer Officer Executive Global Reliance. the today Beyman, are and Chief On Group; and quarter its results announced company the XX, XXXX. today, for Earlier the ended September operating on release www.relianceglobalgroup.com. company's press The the website, posted is

the can as the its www.sec.gov. also website on company's website with be as addition, and the Exchange at on Form quarterly accessed In Securities report Commission well SEC's company XX-Q filed U.S. today, which the

the after information questions or would please any Crescendo additional have you (XXX) call like any about contact If company, the XXX-XXXX. Communications at

regarding strategy, on These intended likely, operations, identify may, it words terms could, such are short-term will, events similar expectations should, needs. and Before believes terms and Mr. largely The the results plan, and this the than estimate, historical Beyman statements like forward-looking and quarter operating plans and in statements. business design and conference based intend, call believe, expressions reviews we future remind statements and condition, XX, and that financial position, of negative current of seek, long-term to future operations forward-looking results statements other future words and may conference statements. for for and including ended the financial trends company's would call, are strategy the our financial statements contained projections statements. XXXX, forward-looking the about may might, results affect objectives anticipate, company's that its our other and forward-looking everyone operations of contain project, are September facts continue, of operations of expect, expectations All to

Exchange company's to and risks, on adversely from are described Commission these U.S. statements and and April Form forward-looking Securities forward-looking actual assumptions the in implied could those assumptions, and as several the forward-looking in XXXX. events occur, and anticipated uncertainties of this X, with statements. circumstances filed the results Because may XX-K differ the call in not subject These or materially and discussed uncertainties conference risks,

as You statements forward-looking should not rely of upon future predictions events.

believes activity, in the it of achievements. expectations company forward-looking performance level cannot the statements reasonable, or future guarantee that results, Although are reflected the

others any accuracy the these conference completeness nor of assumes attributable responsibility statements. call. for expressly duty addition, cautionary any forward-looking this qualified In their other of as company statements well of these these All neither statements. person on disclaims company and forward-looking to the entirety to made statements any The update by forward-looking company the in are any as

the all should forward-looking context made You these statements and by evaluate of company risks in the uncertainties.

said over to to would Chairman of now Reliance and Global like Executive call the I turn Chief Officer that, Ezra? Beyman, Ezra Group. Having

afternoon. joining this Ted. everyone Thanks, thank to you afternoon, for us and Good

pleased a quarter, improved our to are We revenue revenue by robust significantly cost financial to to driving growth marked third highly and This effective while reflects commitment successful expenses, report leading reducing results. net sustained management.

to when $X.X million. XXXX, expense For operating loss fair from or $XXX,XXX compared XX% to by prior significantly quarter first quarter year gain million from positive to million XXXX. operations the the around commissions. approximately warrant XX% $X.X of this declined liability was to as for million, largely was This Net grew third liquidated $X.X due X% exclude net of ended $XXX,XXX higher September while value the adjusted commission loss to by total in loss XX, the year's in quarter $X.X a shift expenses rise our revenue improved XX% despite by instrument the refreshing when

positive adjusted over approximately that insurance and this efficient to our reflects costs strategy are our sustained quarter and comparable revenue the collaboration collaborative in capital. this very agencies $X or million report reduced loss of and creation of year's We shifts net the use pleased strongly quarter's are feel of we previous This brings net quarter. benefits XX% an improvement EBITDA Furthermore, coming XXX% positive our results. same a in results and the OneFirm prior human financial representing into for paves way approach period OneFirm foundation which This underscore gain, operation. shareholders. success so geographically cross-selling, for evident The quarter's in optimized that dispersed our approach strengthens unifies financial a These the enables of from disciplined operating year, cohesive, strategy. and highly in value growth growth, owned the long-term at the approximately positive positive. increase $XX,XXX

energized We Inc., also Associates, provider acquisition a agency close of and XX,XXX employees insurance benefits leading nationally. the over months coming the focused to in announced highly of voluntary Spetner a remain in of anticipation previously

of and are position our catalyst integration expanded a additional way as for success. service our revenues enhancing confident We Spetner sustained the longer-term of that for close revenue to will paving range serve profitability and double growth market by offerings, an consolidated having and the combined accelerated

growth, Since industry insurance benefit By goals, a to we the we innovative the significant future today. have we driving has planned even announced audience. acquisition. originally segment setting than are a we for transaction about services standard to more the excited not experienced from aligning XX,XXX just when Spetner with bringing more more broader solutions new are than employees growth, strategic we serve of Spetner's initially and announced the our XX,XXX our enhanced managed become number they doubling prospects plans, covered voluntary benefit

We establishing that as profitability. to enterprise technology-driven are committed a Reliance powerful prioritizes sustainable

-- Spetner Associates with our Reliance's substantial growth insurance RELI sorry, personal as acquisition at platform. the offerings benefits its reach our highly This beginning of significantly unique to marks synergies we acquisition market program Reliance, the profitable and I'm extensive building trajectory returns the game-changing create on increase shareholders. for a Our transformative period and of we substantial voluntary believe mission continues to business and enterprise multibillion-dollar, focus sustainable and significantly Exchange through will accelerate a expand

we insurance policies. quarter RELI By quotes launched Additionally, buying the and competitive broad buying This time-sensitive in our transforms the commercial faster, bonding. commercial of cutting-edge quote a on and solution enabling and seamless encompasses agents platform the AI-powered leveraging XXXX, an platform AI, solution spectrum clients commercial to offer process, Exchange quote more quoting policy traditionally schedule. of ahead third of

accelerated benefiting not sharing workflow and only its enhances This streams commission new client also Exchange but to satisfaction, unlock directly agents through model. commission revenue potential, empowers increase RELI

is and mentioned consistently to in I our delivers earlier, highly Reliance exceptional our As the multibillion-dollar transform enterprise shareholders. I've profitable past, a into returns for goal stated that

growth disciplined to strengthening and management. committed are strategic position market driving our innovation through and sustained We fiscal initiatives,

this to ability are confident in we financial our success. to excited on path, advance are and achieve We

discussed Series capital adversely we call, warrants, we in and exercise significantly publicly to our may all believe As overhang outstanding traded simplified our we which that our has pursuant G warrant the have Series share of B price. eliminated potentially impacted second significant conference quarter perceived structure

on unlock we continue capital value growth enhanced As significant us for structure believe enable including shareholders. strategy, the executing our to planned will we acquisitions, our

September I turn results review would Markovits, to the call Reliance XXXX. Chief Joel? who quarter now the of like the financial Financial ended XX, Global, over for Joel Officer will to

pleasure you approximates. September XX, and good quarter presented afternoon. some be financial you for all All Ezra, are to a highlights key much, It's to XXXX. figures share with very ended be you today. here with to the It's going Thank great third

to line vastly it's decreases costs operating with mentioned, improved been quarter Ezra a net As top revenues, to increases great results. and

million to let's for or $X.X details. from quarter from the at a Revenues increase. X% million XXXX ended So increased in get $X.X the represents $XXX,XXX into rounded, period the by X/XX/XX same which

about our or These improved organic for very Total future quarter. increased or company. prospects For to XX% the year-to-date for indicator loss strong resulted or is XX% growth, $XXX,XXX. operating ] primarily period around prior a million. X% positive the are the and quarter X/XX/XXXX, ending expenses compared change attributed [ the to good invigorating from operations, trends growth which by revenues close $XXX,XXX telling a by by which This the $X in decreased to year's to

utilize the salaries provide contracts wages, decrease and and as decrease and doing quarter's administrative costs. efficiency marketing in is and financial talent in and approach OneFirm by in X% results, the shine and vendor costs and to consolidate results to advertising illustrated XX% XX% Our proving returns we through general strategy significant rate as cross business

For intangible asset total million a period operating charge. X/XX/XXXX, impairment ended primarily due the costs $X.X X-month to increased by XX%

versus However, when loss million. net no company, removing which had in the impairment, from or operating with total in X% improved impact XX% by lower of analysis, the comes of operations $X.X this this period the year. Staying same or bearing million the $X.X actually by also operations around expense prior on

'XX, of which from indicator, measure, Turning effectively key at XXX% our a or $XX,XXX EBITDA a $XXX,XXX performance to for EBITDA, XXXX. non-GAAP gain QX but adjusted came in a improvement metric, company

results year And versus improved XX%. also by EBITDA for around year-to-date this year, last

prepared out process the share EBITDA. of M&A, home our to and Honestly, and and value with, financial So to hopefully, our the and further to highlights really our thrilled tail our business a and profitable our to Spetner remarks, highly close with mission acquisition these organically And increase market execution let's revenues long-lasting are shareholders. conclude deal, we're of expansion M&A meaningful helpful. enterprise drives at this strengthen is for expected both the end innovation, the be build provide returns through which absolutely to

any the to questions, kindly open or hand other may we'll Operator? feedback line back that, operator have. comments With the for reins participants to the

[Operator Capital. from Instructions] a ] Nick And from Pincus Morris we question [ have

big to could very with on that adjusted you Congrats, and flow. achieving additional savings come everyone, EBITDA, cost positive synergies on could cash appears acquisition. provide some Spetner strong be the wondering also a more generating color I if was the just milestone. very

But potential Thank this we much. employees. with as that it's phenomenal, types we're over program need as the all ago, almost in benefits through XX%, insurance, customers little exciting of the actually think going of through Joel substantial, those -- we insure auto savings They dealing is aside changes. we insurance on to could And in interested XX% are some cases, for really well. they making the when share need so -- this they're decent testing with, other -- it's ratio part you while sell. we of the the our to all, X-minute from mentioned, a all Spetner, the getting I'm cross-selling. very insurance, Remember, home first pretty a of have did we XX,XXX

be and streamlining way exciting And back could people already but we've could office using that back-office, average. the above We phenomenal amount is when as technology mentioned, we the trimming, of really in us which been Spetner's really course, expenses with that help you're also of think here. utilizing support. dealing So --

its fourth growing. It's all win-win. company is that's has So that this a business a in generation. it's a before, around, I strong think mentioned been ready very We

I it's So excited, anything? is. we're all think Joel, -- really

sure. Yes,

was very And million very Just EBITDA that. that. even on thank Spetner, to for what saying, a close to build $XX healthy our or of margin Ezra is year. you There's at revenue strong around north at XX% or $XX million

one revenues almost So our we that have merge we We doubling should limited to costs essentially provide benefits increase are going together company. that significant to as the definitely assume. as and

So about excited that. we're

especially problem your you really you would or cap plans the to back amazing, cash it buying consider excess company. be the market be current Would a flow? things? all wondering, That's other what acquisition, following just but that of good the stock will put I'm of when the for in have, perspective

it's people most feel That's the the feel a we We certainly in the bargain century. industry possibility. -- a stock of

in we past, already stock. think want I of bought blocks that. And take the to So advantage of significant I've would

-- to So using of that may the And also yes. it's growing horizon, rebuying. be cash getting on growing definitely lines, acquisitions. that's course, the advancing the the and/or technology company whether company, company extra and the new

So smartly. the -- to we be deploy want capital

And would at Instructions] management call no now like the turn I for in are queue to further [Operator closing remarks. there back time. to questions this

shareholders the energized We're much. very and valued by very of you Ezra rest next On prospects and the wish sharing participation in truly update. of behalf happy Reliance's very business to onward Reliance team, good interested time, the very parties. best. your with Until and you and a journey entire Thank all other be and our excited this day this we you, we appreciate

Thank does today's conference call. conclude you. This

you day. may participation. phone for a You have lines disconnect time, this your and Thank your wonderful at