La Rosa Reports 91% Year-Over-Year Increase in Revenue to $11.4 Million for the Fourth Quarter of 2023
Acquisition of Six Brokerages Increases the Company’s Gross Profit
Revenue Increased
CELEBRATION, Fla., April 17, 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 fiscal year ended December 31, 2023.
Key Financial Highlights
- Total revenue increased
91% year-over-year to$11.4 million for the fourth quarter ended December 31, 2023 from$6.0 million for the fourth quarter ended December 31, 2022 - Gross profit increased
207% year-over-year for the fourth quarter ended December 31, 2023, compared to the fourth quarter ended December 31, 2022 - Gross margin increased 321 basis points to
8.5% in the fourth quarter of 2023, compared to5.3% for the same period last year - Total revenue increased
21% to$31.8 million for the year-ended December 31, 2023, compared to$26.2 million for the same period last year - Residential real estate services revenue increased
$4.0 million to$20.5 million , or25% , for the year ended December 31, 2023 versus the comparable prior year period - Increased transaction fees, monthly agent fees, and annual fees effective September 1, 2023, which, if volume remains consistent, expected to contribute to increased real estate brokerage services revenue in 2024 on top of growth in the broker network
Q4 2023 Operational Achievements
- Acquired six real estate brokerage franchisees in the fourth quarter of fiscal year 2023 with combined revenues in excess of
$35 million in fiscal year 2022 - Formed strategic partnership with Final Offer, a negotiation platform delivering transparency in real estate transactions
- Launched multi-level revenue share plan for agents
- Opened first office location in Houston, Texas
- Entered into strategic referral partnership with Janover, an AI-enabled B2B fintech marketplace connecting commercial property borrowers and lenders
- Launched a proprietary artificial intelligence (“AI”) technology system 'JAEME' to support real estate agents
- Completed IPO in October 2023, raising gross proceeds of
$5.0 million and commenced trading on the Nasdaq Capital Market
Joe La Rosa, CEO of the Company, commented, “We believe that the past year proved transformative for our Company, highlighted by a successful IPO on the Nasdaq Capital Market, raising
“We believe that our approach is both agent and consumer centric. We intend to solidify our position in the highly anticipated paradigm shift in the real estate market. We equip agents with essential resources for success in a technology-driven world while providing consumers with the transparency and value they need. We understand the financial challenges agents face, especially in today's market. That's why we provide new avenues for financial flexibility, offering agents the choice between a
“The recent National Association of Realtors' landmark settlement of
“To further enhance our transparency in the market, last month, we officially launched Final Offer, a consumer-facing offer management and negotiation platform for real estate transactions, on our platform in Florida and Georgia. Through Final Offer, our agents will offer clients a streamlined offer and negotiation experience, bringing much-needed transparency to the home buying/selling process. We are excited to expand this platform across all states where we currently operate, including South Carolina, California, New York, Texas, and Puerto Rico, and in states where we may operate in the future.”
“We anticipate that 2024 will be a year of expansion for us. We believe we are well poised to achieve significant growth and anticipate reaching our annualized revenue run rate target of
Financial Results
Total revenue for the year ended December 31, 2023, was
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.
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, customer acceptance of new services, the demand for the Company’s services, 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 headings “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and in other reports and documents we file from time to time with the SEC. Forward-looking statements contained in this press release are made only as of the date of this press release. 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 Consolidated Balance Sheets | ||||||||
| December 31, 2023 | December 31, 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 959,604 | $ | 118,558 | ||||
| Restricted cash | 1,484,223 | 1,411,364 | ||||||
| Accounts receivable, net of reserve for credit losses of | 826,424 | 424,549 | ||||||
| Other current assets | — | 45,000 | ||||||
| Due from related party | — | 41,558 | ||||||
| Total current assets | 3,270,251 | 2,041,029 | ||||||
| Noncurrent assets: | ||||||||
| Property and equipment, net | 14,893 | — | ||||||
| Right-of-use asset, net | 687,570 | — | ||||||
| Deferred offering costs | — | 1,760,447 | ||||||
| Intangible assets, net | 4,632,449 | — | ||||||
| Goodwill | 5,702,612 | — | ||||||
| Other long-term assets | 21,270 | 79,314 | ||||||
| Total noncurrent assets | 11,058,794 | 1,839,761 | ||||||
| Total assets | $ | 14,329,045 | $ | 3,880,790 | ||||
| Liabilities and Stockholders’ Equity (Deficit) | ||||||||
| Current liabilities: | ||||||||
| Line of credit | $ | — | $ | 86,163 | ||||
| Accounts payable | 1,147,073 | 1,523,936 | ||||||
| Accrued expenses | 227,574 | 522,279 | ||||||
| Due to related party, current | — | 652,233 | ||||||
| Derivative liability | — | 1,022,879 | ||||||
| Convertible notes payable, net | — | 585,779 | ||||||
| Advances on future receipts | 77,042 | — | ||||||
| Accrued acquisition cash consideration | 300,000 | — | ||||||
| Notes payable, current | 4,400 | 250,788 | ||||||
| Lease liability, current | 340,566 | — | ||||||
| Total current liabilities | 2,096,655 | 4,644,057 | ||||||
| Noncurrent liabilities: | ||||||||
| Note payable, net of current | 615,127 | 360,912 | ||||||
| Due to related party, net of current | — | 338,757 | ||||||
| Security deposits payable | 1,484,223 | 1,415,059 | ||||||
| Lease liability, noncurrent | 363,029 | — | ||||||
| Other liabilities | 2,950 | — | ||||||
| Total non-current liabilities | 2,465,329 | 2,114,728 | ||||||
| Total liabilities | 4,561,984 | 6,758,785 | ||||||
| Stockholders’ equity (deficit): | ||||||||
| Preferred stock - | — | — | ||||||
| Common stock - | 1,341 | 600 | ||||||
| Additional paid-in capital | 18,016,400 | 1,410,724 | ||||||
| Accumulated deficit | (12,107,756 | ) | (4,289,319 | ) | ||||
| Total stockholders’ equity (deficit) – La Rosa Holdings Corp. Shareholders | 5,909,985 | (2,877,995 | ) | |||||
| Noncontrolling interest in subsidiaries | 3,857,076 | — | ||||||
| Total stockholders’ equity (deficit) | 9,767,061 | (2,877,995 | ) | |||||
| Total liabilities and stockholders’ equity (deficit) | $ | 14,329,045 | $ | 3,880,790 | ||||
| La Rosa Holdings Corp. and Subsidiaries Consolidated Statements of Operations | ||||||||
| Year Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
| Revenue | $ | 31,759,404 | $ | 26,203,921 | ||||
| Cost of revenue | 28,918,236 | 23,678,819 | ||||||
| Gross profit | 2,841,168 | 2,525,102 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 359,717 | 415,770 | ||||||
| General and administrative | 4,473,340 | 3,883,856 | ||||||
| Stock-based compensation — general and administrative | 5,100,474 | 230,664 | ||||||
| Total operating expenses | 9,933,531 | 4,530,290 | ||||||
| Loss from operations | (7,092,363 | ) | (2,005,188 | ) | ||||
| Other income (expense) | ||||||||
| Interest expense, net | (140,382 | ) | (144,268 | ) | ||||
| Amortization of financing fees | (1,016,644 | ) | (349,913 | ) | ||||
| Change in fair value of derivative liability | 138,985 | (120,599 | ) | |||||
| Forgiveness of debt | — | 149,312 | ||||||
| Other income, net | 286,641 | — | ||||||
| Loss before provision for income taxes | (7,823,763 | ) | (2,470,656 | ) | ||||
| Benefit from income taxes | — | (150,000 | ) | |||||
| Net loss | (7,823,763 | ) | (2,320,656 | ) | ||||
| Less: Net loss attributable to noncontrolling interests in subsidiaries | (5,326 | ) | — | |||||
| Net loss after noncontrolling interest in subsidiaries | (7,818,437 | ) | (2,320,656 | ) | ||||
| Less: Deemed dividend | 1,472,514 | — | ||||||
| Net loss attributable to common stockholders | $ | (9,290,951 | ) | $ | (2,320,656 | ) | ||
| Loss per share of common stock attributable to common stockholders | ||||||||
| Basic and diluted | $ | (1.27 | ) | $ | (0.39 | ) | ||
| Weighted average shares used in computing net loss per share of common stock attributable to common stockholders | ||||||||
| Basic and diluted | 7,293,033 | 6,000,000 | ||||||
