The following is a summary of the Reliance Global Group, Inc. (RELI) Q1 2024 Earnings Call Transcript:
Financial Performance:
Reliance Global Group reported a 4% revenue increase in Q1 2024 to $4.1 million, attributed to ongoing organic growth.
The company experienced increases in commission expense to $1.3 million and general and administrative expenses to $1.4 million.
Q1 2024 saw a significant net loss of $5.3 million as a result of a non-cash impairment charge of $3.9 million.
Adjusted EBITDA was slightly negative at $74,000, but the metric is expected to improve as the fiscal year progresses.
Business Progress:
Throughout Q1 2024, Reliance Global Group initiated the integration of its own nine agencies across the US into a single entity, aiming to increase revenue and profitability.
The company expects a significant revenue boost towards a total of $28 million with the anticipated acquisition of Spetner Associates, a benefits enrollment company which predicts a $14 million revenue for 2024.
The Spetner acquisition also projects to add $4 million to Reliance's EBITDA for 2024.
In addition to immediate financial benefits, the strategic integration and acquisition will aim at positioning Reliance Global Group as a technological frontrunner in the $436 billion global insurance agency brokerage market, driving profitability and shareholder value.
More details: Reliance Global Group IR
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