(NASDAQ: LRHC) La Rosa Reports 117% Year-Over-Year Increase in Revenue to $13.1 Million for the First Quarter of '24

BREAKING NEWS \(NASDAQ: LRHC) La Rosa Holdings Reports 117% Year-Over-Year Increase in Revenue to $13.1 Million for the First Quarter of 2024 Hi “FDR” Member, Breaking News out this morning on LRHC, please see entire release and link below. [La Rosa Reports 117% Year-Over-Year Increase in Revenue to $13.1 Million for the First Quarter of 2024]( Successfully Acquires Ten Brokerages Since Company’s IPO in October 2023 Residential Real Estate Services Revenue Increased 211% to $10.2 Million in Q1 2024 vs Q1 2023 CELEBRATION, Fla., May 16, 2024 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) (“La Rosa” or the “Company”), a holding company for five agent-centric, technology-integrated, cloud-based, multi-service real estate segments, today provided a business update and reported financial results for the first quarter ended March 31, 2024. Q1 2024 Key Financial Highlights - Total revenue increased 117% year-over-year to $13.1 million for the first quarter ended March 31, 2024 from $6.0 million for the first quarter ended March 31, 2023 - Residential real estate services revenue increased $6.9 million to $10.2 million, or 211%, for the first quarter ended March 31, 2024, versus the comparable prior year period - Increased transaction fees, monthly agent fees, and annual fees effective September 1, 2023, which, if volume remains consistent, are expected to contribute to increased real estate brokerage services revenue in 2024 on top of growth in the broker network Q1 2024 Operational Achievements and Subsequent Events - Acquired three real estate brokerage franchisees in the first quarter of 2024 - [Opened]( office in the Tampa Bay Area in January - [Officially]( launched Final Offer, a transparent negotiation platform, in Florida and Georgia in March with plans to expand the offering across the organization - [Acquired]( tenth real estate brokerage franchisee in April with revenue of $4.7 million and positive net income in 2023 Joe La Rosa, CEO of the Company, commented, “We continue to execute on our roll-up strategy, primarily focused on acquiring profitable franchisees. In the first quarter of 2024, we successfully acquired three real estate brokerage franchisees, building upon the six acquisitions made in the fourth quarter of 2023. As a result, we achieved a 117% year-over-year increase in revenue compared to the same period in 2023. Last month, we completed our acquisition of the tenth real estate brokerage franchisee, with revenue of $4.7 million and positive net income in 2023. With 162 agents, this brokerage solidified its position as the second largest in agent count and the third largest in real estate sales in Polk County, Florida in 2023. As we continue to acquire profitable franchisees, we expect them to meaningfully contribute to our revenue throughout 2024. Our target is to achieve an annualized revenue run rate of $100 million by the end of 2024, with profitability anticipated in 2025. Through the integration of these acquisitions, we anticipate benefitting from improved operating efficiencies and economies of scale to further enhance our margins. “We believe we are disrupting the real estate industry by offering agents the option of a revenue share model or an annual fee-based model with 100% agent commissions. As we continue to expand and open new offices nationwide, such as our new Tampa office, we anticipate that our distinct brokerage model will draw in more agents, thus reinforcing our competitive standing in the market and propelling us towards sustainable long-term growth and profitability,” concluded Mr. La Rosa. Financial Results Total revenue for the first quarter ended March 31, 2024, was $13.1 million compared to $6.0 million for the first quarter ended March 31, 2023. Residential real estate services revenue increased $6.9 million to $10.2 million, or 211%, in the first quarter ended March 31, 2024, versus the comparable prior year period. The increase was driven by $7.6 million of revenue from the six acquisitions completed in the fourth quarter of fiscal year 2023 and the three acquisitions completed in the first quarter of fiscal year 2024, offset by a 36% decrease in total transaction volume. We increased our transaction fees, monthly agent fees, and annual fees effective September 1, 2023, which, if volume remains consistent, we anticipate our real estate brokerage services revenue will increase in 2024. Selling, general and administrative costs, excluding stock-based compensation, for the first quarter ended March 31, 2024, were $2.6 million, compared to $1.0 million for the first quarter ended March 31, 2023. Half of this increase was driven by $804,000 of additional costs from the nine acquisitions we completed since the Company’s IPO in October 2023 in addition to increased payroll and benefits, insurance and training, and public company costs in connection with the IPO, compared to the same period in 2023. Net loss was $4.7 million, or $(0.35) basic and diluted loss per share, for the first quarter ended March 31, 2024, compared to net loss of $1.0 million, or $(0.16) basic and diluted loss per share, for the first quarter ended March 31, 2023. About La Rosa Holdings Corp. La Rosa Holdings Corp. (Nasdaq: LRHC) is a holding company for five agent-centric, technology-integrated, cloud-based, multi-service real estate segments. In addition to providing person-to-person residential and commercial real estate brokerage services to the public, the Company cross-sells ancillary technology-based products and services primarily to its sales agents and the sales agents associated with their franchisees. La Rosa’s business is organized based on the services they provide internally to their agents and to the public, which are residential and commercial real estate brokerage, franchising, real estate brokerage education and coaching, and property management. Subscribers, we've had some great calls in April and May, but this one has the potential to be the best one yet. Yes, we've highlighted this company before, but at current prices, the value proposition screams for attention—rightly so. After all, in a market climate where the best in breed is getting chosen over speculation, La Rosa Holdings Corp. (NASDAQ: LRHC) deserves all the attention it's getting. Why? Because La Rosa has emerged operationally unscathed from a massive judgment levied against many of its competitors, particularly those aligned with the National Association of Realtors. Most of its competitors were less fortunate. Those with antiquated business and commission models got crushed by the $1.8 billion judgment. Not La Rosa. They actually continue to get bigger. More importantly, they are on a fast track to bottom-line EPS, as evidenced by yesterday's earnings release that showed the company on a collision course with net profit as early as the first half of 2025. The strong report was no surprise to those already following La Rosa Holdings. They know, as others are learning, that this company is in hyper-growth mode. In April, the company announced acquiring 51% of franchisee Prestige, making it the tenth acquisition since its public listing last year. This rapid expansion is not just for show. Each of these acquisitions is an immediate value driver, with La Rosa expected to benefit from Prestige's projected 2023 revenues of $4.7 million and, more significantly, from positive net income. That's not all this acquisition offers. It adds to and expedites La Rosa's reaching its goal of an annualized revenue run rate of $100 million by the end of this year. But keep in mind that this most recent contribution is the likely precursor to more, a point that CEO Joe La Rosa continues to make. In fact, he unequivocally emphasizes that his company is still in its early innings of growth and doesn't shy away from saying that his strategy to roll up profitable offices, consolidate market presence, and benefit from economies of scale is an ongoing mission. Strategic acquisitions are part of a more significant intention to become a leader in the new era of how the real estate sector must operate. It's fair to say they are already a disruptive force at the right time. The lawsuit against NAR and other real estate entities highlighted the long-standing issue of artificially high home sale commissions. Of course, the staggering judgment against that business model sent a clear message about the need for immediate change. It was a disruption for the sector. However, for La Rosa, who envisioned this commission revolution early, it's better viewed as a positively transformative event. Why? Because the ruling more than exposed La Rosa and its CEO as sector visionaries, it put the company in the spotlight for already implementing a revolutionary commission model and structure that benefits buyers, sellers, and agents alike. Moreover, it exposed them as pioneers in fostering transparency and fairness in real estate transactions. That's fueling the increase in La Rosa's growth speed pace, which has shifted from hyper to warp and shows no signs of slowing. Need proof? How about its 90.7% Quarterly Growth performance, a measure that outperformed several of its biggest rivals, including eXp World Holdings, Fathom Holdings, and The Real Brokerage, Inc. More than impressive, it's tangible, revenue-generating growth. Since recent acquisitions may not factor into that growth pace, La Rosa's Q over Q-trajectory could be even more promising. Beating expectations won't be a surprise to many, noting the attraction to La Rosa Holdings' differences that are advantageous to everyone involved in real estate transactions. Those are facilitated through La Rosa encompassing five agent-centric, technology-integrated, cloud-based real estate segments, which allow La Rosa to work beyond traditional residential and commercial brokerage services. Best described, its ancillary technology-based products and services provide its agents and franchisees with a comprehensive one-stop solution shop to facilitate a transaction from start to close. Here's the best part- the model makes sure commissions go to the right places. That's creating a tsunami of agent interest. For the right reasons. Unlike traditional models that often lead to significant commission splits, La Rosa's approach ensures that agents retain 100% of their commissions minus a minimal facilitation fee. This model empowers agents financially and aligns with evolving consumer expectations for equitable and efficient real estate services. Still, La Rosa has pointed to its success resulting from more than just maximizing profits; it's also from creating a holistic ecosystem where agents thrive through multiple revenue streams and advanced technological tools. That agent-centric approach attracts top industry talent, which could fuel revenue growth well beyond even the most optimistic forecasts. Just meeting expectations exposes a value proposition worth seizing. Yes, the sector is under pressure from higher interest rates and macro issues. However, for growth stock investors, it's essential to recognize that those pressures are not slowing La Rosa's intent to grow significantly larger as a company in 2024. They'll do that not by a shotgun approach to acquiring just any asset but by continuing to acquire top-performing, significant revenue-generating assets immediately accretive to its operations. Put simply, the potential to reach $100 million in revenues by the end of this year is not a distant dream, but a tangible possibility in the crosshairs. Therefore, it could be a smart move to position yourself ahead of this potential while La Rosa stock is still at ground-floor levels. From what we see, savvy investors have been. To Your Trading Success, Michael Reece Editor, Financial Driven Research © 2024 Financial Driven Research, All Rights Reserved. Financial Driven Research (“FDR” or “Company”) is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or inves∙tment for any specific individual. FDR full disclosure is to be read and fully understood before using FDR website or joining FDR email or sms list. 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