How does REAL actually make bank?

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Hi there, I went through the REAL investor website and the report and I found that it doesn’t give any detailed description outlining what the customers are actually buying, how REAL makes revenue off what they are selling, or how REAL keeps the revenue rolling in. (How will they continue to do it, when acquisitions slow?) What are they are up to? It seems like they provide a data bank that somebody pays to access, but what’s the fee structure? Do they sell a platform, for a one-time fee like Windows, except for it covers “all things real estate” that companies install? Are companies paying a subscription fee to give these services to clients? Do home buyers without realtors have access to the data for a fee? Thanks!

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Asked on January 23, 2021 6:06 pm
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Hi there,

REal is a software-as-a-service (SaaS) company and its software platform is targeted towards the real estate and insurance industries. It operates in three segments: U.S. Appraisal, and U.S. and Canada Title.

In essence the platform supports lenders and appraisers to provide valuations and title & settlement services. It does so through its platform and clients pay a recurring fee to access their platform. There are likely one-time set up fee and software fees and is also dependent on volume. The more refinancing's, appraisals, etc. that go through their system - the more 'bank' they make. I haven't seen their pricing structure exactly, but from what I've read it is a combination of the above.

Real has also made several acquisitions and is likely to continue scooping up smaller players and rolling them into the fold. The next transformational step for the company is likely an acquisition that would open up international markets. Worth noting these acquisitions are sometimes not made by REAL itself, but by its subsidiaries such as Solidifi.

Mat

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Posted by Mathieu Litalien
Answered on January 24, 2021 9:20 am
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Private answer

Hi there,

REal is a software-as-a-service (SaaS) company and its software platform is targeted towards the real estate and insurance industries. It operates in three segments: U.S. Appraisal, and U.S. and Canada Title.

In essence the platform supports lenders and appraisers to provide valuations and title & settlement services. It does so through its platform and clients pay a recurring fee to access their platform. There are likely one-time set up fee and software fees and is also dependent on volume. The more refinancing's, appraisals, etc. that go through their system - the more 'bank' they make. I haven't seen their pricing structure exactly, but from what I've read it is a combination of the above.

Real has also made several acquisitions and is likely to continue scooping up smaller players and rolling them into the fold. The next transformational step for the company is likely an acquisition that would open up international markets. Worth noting these acquisitions are sometimes not made by REAL itself, but by its subsidiaries such as Solidifi.

Mat

Marked as spam
Posted by Mathieu Litalien
Answered on January 24, 2021 9:20 am
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