La Rosa Holdings Reports 155% Year-Over-Year Increase in Revenue to $51.7 Million for the First 9 Months of 2024; Surpassing Initial Revenue Guidance by Approximately $6.7 Million
Rhea-AI Summary
La Rosa Holdings reported strong revenue growth in Q3 2024, with total revenue increasing 188% year-over-year to $19.6 million. For the first nine months of 2024, revenue grew 155% to $51.7 million, surpassing initial guidance by $6.7 million. The company's residential real estate services saw significant growth, up 328% to $16.5 million in Q3. Key achievements include acquiring seven real estate brokerage franchisees, completing the acquisition of Nona Title Agency, and onboarding over 400 agents since June 2024. The company is targeting a $100 million annualized revenue run rate by end of 2024. However, net loss increased to $3.4 million in Q3 2024 compared to $344,000 in Q3 2023.
Positive
- Revenue increased 188% YoY to $19.6M in Q3 2024
- Residential real estate services revenue up 328% to $16.5M in Q3
- Property management revenue grew 14% to $2.9M in Q3
- Successfully acquired seven brokerage franchisees in first 9 months
- Onboarded 400+ new agents in three months
- Targeting $100M annualized revenue run rate by end of 2024
Negative
- Net loss widened to $3.4M in Q3 2024 from $344K in Q3 2023
- SG&A costs increased significantly to $3.0M from $988K YoY
- Net loss for nine months increased to $10.5M from $1.7M YoY
News Market Reaction
On the day this news was published, LRHC gained 0.26%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Revenue for the Third Quarter of 2024 Increased
Targeting
CELEBRATION, Fla., Nov. 20, 2024 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) (“La Rosa” or the “Company”), a holding company for six agent-centric, technology-integrated, cloud-based, multi-service real estate segments, today provided a business update and reported financial results for the third quarter ended September 30, 2024.
Key Financial Highlights
- Total revenue increased
188% year-over-year to$19.6 million for the third quarter ended September 30, 2024 from$6.8 million for the third quarter ended September 30, 2023 - Residential real estate services revenue increased
$12.6 million to$16.5 million , or328% , for the third quarter ended September 30, 2024 from$3.8 million for the third quarter ended September 30, 2023 - Property management revenue increased by approximately
$341 thousand to$2.9 million , or14% , for the third quarter ended September 30, 2024 from$2.5 million for the third quarter ended September 30, 2023 - Real Estate Brokerage Services (Commercial) revenue increased by approximately
$34 thousand to$64 thousand , or110% for the third quarter ended September 30, 2024 from$31 thousand for the third quarter ended September 30, 2023 - Total revenue increased approximately
155% year-over-year to$51.7 million for the nine months ended September 30, 2024 from$20.3 million for the nine months ended September 30, 2023; surpassing initial revenue guidance by approximately$6.7 Million - Residential real estate services revenue increased
$30.7 million to$42.6 million , or259% , for the nine months ended September 30, 2024 from$11.9 million for the nine months ended September 30, 2023 - Property management revenue increased by approximately
$986 thousand to$8.2 million , or approximately14% , in the nine months ended September 30, 2024 from$7.2 million for the nine months ended September 30, 2023 - Real Estate Brokerage Services (Commercial) revenue increased by approximately
$149 thousand to$249 thousand , or148% for the nine months ended September 30, 2024 from$100 thousand for the nine months ended September 30, 2023
Q3 2024 Operational Achievements
- Acquired seven real estate brokerage franchisees in the first nine months of 2024 fiscal year
- Completed acquisition of Nona Title Agency LLC DBA Red Door Title
- Announced intent to acquire real estate brokerage firm with over 950 agents and more than
$19.0 million in revenue for 2023 - Completed debt restructuring, improving the financial position and reducing debt under the notes by approximately
9.5%
Joe La Rosa, CEO of La Rosa, commented, “We’re pleased to report that revenue grew an impressive
“We are developing a transformative proptech company that empowers agents with state-of-the-art tools to deliver exceptional service and revolutionize the real estate experience through innovation and efficiency. At the heart of this initiative is our proprietary platform, My Agent Account, which we continually refine to give our agents a competitive edge, enhance productivity, and set new industry benchmarks. Our competitive revenue share model and agent-centric approach have been key drivers of our strong organic growth. Since June 1, 2024, we have successfully onboarded over 400 agents in just three months. We believe that it is a testament to the strength of our model and our ongoing commitment to empowering and supporting our expanding agent network. This growth underscores our focus on creating an environment where agents can thrive and achieve success.
“We are leveraging our momentum with ambitious plans for further growth. In addition to acquiring franchisees, we are exploring strategic acquisitions, including a recent Letter of Intent (LOI) to acquire a real estate brokerage generating
“Looking ahead, we anticipate an annualized revenue run rate of
The closings of the acquisitions mentioned in this press release are subject to, and contingent upon, the parties entering into their respective definitive agreements. There can be no assurances that these acquisitions will be consummated.
Financial Results
Total revenue for the third quarter ended September 30, 2024, was
Total revenue for the nine months ended September 30, 2024, was
About La Rosa Holdings Corp.
La Rosa Holdings Corp. (Nasdaq: LRHC) is disrupting the real estate industry by offering agents a choice between a revenue share model or an annual fee-based model with
La Rosa's business model is structured around internal services for agents and external services for the public, including residential and commercial real estate brokerage, franchising, real estate brokerage education and coaching, and property management. The Company has 24 La Rosa Realty corporate real estate brokerage offices and branches located in Florida, California, Texas, Georgia, and Puerto Rico. The Company also has 9 La Rosa Realty franchised real estate brokerage offices and branches and 3 affiliated real estate brokerage offices, all within the United States and Puerto Rico.
For more information, please visit: https://www.larosaholdings.com.
Stay connected with La Rosa, sign up for news alerts here: larosaholdings.com/email-alerts.
Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s current expectations that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to achieve profitable operations, our ability to successfully integrate acquisitions into our business operations, customer acceptance of new services, the demand for the Company’s services and the Company’s customers' economic condition, the impact of competitive services and pricing, general economic conditions, the successful integration of the Company’s past and future acquired brokerages, the effect of the recent National Association of Realtors' landmark settlement on our business operations, and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission (the "SEC”). You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and other reports and documents that we file from time to time with the SEC, including our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2024. Forward-looking statements contained in this press release are made only as of the date of this press release, and La Rosa does not undertake any responsibility to update any forward-looking statements in this release, except as may be required by applicable law. References and links to websites have been provided as a convenience, and the information contained on such websites has not been incorporated by reference into this press release.
For more information, contact: info@larosaholdings.com
Investor Relations Contact:
Crescendo Communications, LLC
David Waldman/Natalya Rudman
Tel: (212) 671-1020
Email: LRHC@crescendo-ir.com
| La Rosa Holdings Corp. and Subsidiaries | |||||||||
| Condensed Consolidated Balance Sheets | |||||||||
| September 30, 2024 | December 31, 2023 | ||||||||
| (unaudited) | (audited) | ||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash | $ | 1,811,608 | $ | 959,604 | |||||
| Restricted cash | 2,148,148 | 1,484,223 | |||||||
| Accounts receivable, net of allowance for credit losses of | 817,391 | 826,424 | |||||||
| Other current assets | 1,188 | — | |||||||
| Total current assets | 4,778,335 | 3,270,251 | |||||||
| Noncurrent assets: | |||||||||
| Property and equipment, net | 17,739 | 14,893 | |||||||
| Right-of-use asset, net | 1,088,759 | 687,570 | |||||||
| Intangible assets, net | 5,673,222 | 4,632,449 | |||||||
| Goodwill | 8,102,089 | 5,702,612 | |||||||
| Other long-term assets | 26,853 | 21,270 | |||||||
| Total noncurrent assets | 14,908,662 | 11,058,794 | |||||||
| Total assets | $ | 19,686,997 | $ | 14,329,045 | |||||
| Liabilities and Stockholders' Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 2,093,563 | $ | 1,147,073 | |||||
| Accrued expenses | 729,043 | 227,574 | |||||||
| Contract liabilities | 72,365 | — | |||||||
| Line of credit | 75,697 | — | |||||||
| Derivative liability | 50,040 | — | |||||||
| Advances on future receipts | 262,263 | 77,042 | |||||||
| Accrued acquisition cash consideration | 341,404 | 300,000 | |||||||
| Notes payable, current | 2,095,692 | 4,400 | |||||||
| Lease liability, current | 526,609 | 340,566 | |||||||
| Total current liabilities | 6,246,676 | 2,096,655 | |||||||
| Noncurrent liabilities: | |||||||||
| Note payable, net of current | 643,734 | 615,127 | |||||||
| Security deposits payable | 1,821,582 | 1,484,223 | |||||||
| Lease liability, noncurrent | 581,622 | 363,029 | |||||||
| Other liabilities | 2,950 | 2,950 | |||||||
| Total non-current liabilities | 3,049,888 | 2,465,329 | |||||||
| Total liabilities | 9,296,564 | 4,561,984 | |||||||
| Stockholders' equity: | |||||||||
| Preferred stock - | — | — | |||||||
| Common stock - | 1,856 | 1,341 | |||||||
| Additional paid-in capital | 26,433,290 | 18,016,400 | |||||||
| Accumulated deficit | (21,478,792 | ) | (12,107,756 | ) | |||||
| Total stockholders' equity - La Rosa Holdings Corp. shareholders | 4,956,354 | 5,909,985 | |||||||
| Noncontrolling interest in subsidiaries | 5,434,079 | 3,857,076 | |||||||
| Total stockholders' equity | 10,390,433 | 9,767,061 | |||||||
| Total liabilities and stockholders' equity | $ | 19,686,997 | $ | 14,329,045 | |||||
| La Rosa Holdings Corp. and Subsidiaries | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 19,593,036 | $ | 6,792,250 | $ | 51,733,355 | $ | 20,320,606 | ||||||||
| Cost of revenue | 17,957,130 | 6,216,751 | 47,349,141 | 18,450,162 | ||||||||||||
| Gross profit | 1,635,906 | 575,499 | 4,384,214 | 1,870,444 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 246,369 | 49,277 | 691,704 | 242,548 | ||||||||||||
| General and administrative | 2,747,616 | 938,634 | 7,809,627 | 2,672,372 | ||||||||||||
| Stock-based compensation - general and administrative | 389,711 | 5,041 | 4,054,821 | 79,341 | ||||||||||||
| Total operating expenses | 3,383,696 | 992,952 | 12,556,152 | 2,994,261 | ||||||||||||
| Loss from operations | (1,747,790 | ) | (417,453 | ) | (8,171,938 | ) | (1,123,817 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest expense, net | (98,566 | ) | (6,966 | ) | (197,425 | ) | (147,505 | ) | ||||||||
| Loss on extinguishment of debt | (722,729 | ) | - | (722,729 | ) | - | ||||||||||
| Amortization of debt discount | (135,185 | ) | (207,887 | ) | (455,289 | ) | (882,781 | ) | ||||||||
| Change in fair value of derivative liability | 307,098 | 10,201 | 218,998 | 138,985 | ||||||||||||
| Other income, net | 4,544 | 278,266 | 4,544 | 278,834 | ||||||||||||
| Net loss | (2,392,628 | ) | (343,839 | ) | (9,323,839 | ) | (1,736,284 | ) | ||||||||
| Less: Net income (loss) attributable to noncontrolling interests in subsidiaries | 59,540 | — | 47,197 | — | ||||||||||||
| Net loss after noncontrolling interest in subsidiaries | (2,452,168 | ) | (343,839 | ) | (9,371,036 | ) | (1,736,284 | ) | ||||||||
| Less: Deemed dividend | 920,038 | — | 1,150,706 | — | ||||||||||||
| Net loss attributable to common stockholders | $ | (3,372,206 | ) | $ | (343,839 | ) | $ | (10,521,742 | ) | $ | (1,736,284 | ) | ||||
| Loss per share of common stock attributable to common stockholders | ||||||||||||||||
| Basic and diluted | $ | (0.21 | ) | $ | (0.06 | ) | $ | (0.70 | ) | $ | (0.29 | ) | ||||
| Weighted average shares used in computing net loss per share of common stock attributable to common stockholders | ||||||||||||||||
| Basic and diluted | 16,358,452 | 6,180,633 | 14,970,099 | 6,063,056 | ||||||||||||
FAQ
What was La Rosa Holdings (LRHC) revenue growth in Q3 2024?
How many acquisitions did LRHC complete in the first 9 months of 2024?
What is LRHC's revenue target for the end of 2024?
How much did LRHC's net loss increase in Q3 2024?
