CELEBRATION, FL - La Rosa Holdings Corp. (NASDAQ:LRHC), a diversified real estate services company, announced its preliminary unaudited revenue for the first nine months of 2024, showing a significant increase. The company reported an estimated $45 million in revenue, marking an approximately 120% rise compared to the same period last year.
CEO Joe La Rosa attributed the growth to the company's accelerated performance, driven by acquisitions of real estate brokerage franchisees and an increase in agent count. The company's strategy focuses on technology integration and agent-centric services across its various real estate segments.
La Rosa Holdings recently expressed its intention to acquire a real estate brokerage firm with over 950 agents and a 2023 revenue of more than $19 million. This firm also provides a proprietary cloud-based Software-as-a-Service (SaaS) platform for real estate agents, aligning with La Rosa's vision for technology-driven solutions in the real estate market.
Looking ahead, La Rosa Holdings projects an annualized revenue run rate of $100 million by the end of 2024 and anticipates reaching profitability in 2025. This forecast is based on the company's plans to scale operations, increase market share, and potentially reduce costs through the implementation of an expense management system.
The company's full financial results for the third quarter of 2024 will be released in the coming weeks. The completion of the mentioned acquisitions is contingent upon various conditions, including corporate approval and the execution of definitive agreements. There is no certainty that these transactions will be finalized.
La Rosa Holdings provides a range of services, including residential and commercial real estate brokerage, franchising, education, coaching, and property management. It operates 24 corporate offices and branches, along with 9 franchised and 3 affiliated offices across the United States and Puerto Rico.
The information in this article is based on a press release statement, and the preliminary revenue figures are subject to customary adjustments. Investors and interested parties should consider the forward-looking statements with caution due to the inherent risks and uncertainties.
In other recent news, La Rosa Holdings Corp. has seen substantial developments. The company entered into cash advance agreements with Arin Funding LLC and Cedar Advance LLC, selling portions of its future receivables for net advances. These agreements provide the lenders a security interest in La Rosa's assets. The company also received a notice from Nasdaq regarding non-compliance with the minimum bid price requirement and is considering options to address this deficiency.
On the technological front, La Rosa upgraded its proprietary platform, My Agent Account, with a new property management module expected to enhance agent productivity. The platform has seen increased utilization and the AI real estate assistant, JAEME, has experienced significant growth in usage.
La Rosa has secured a financing agreement with AFCO Credit Corporation and announced leadership changes, including the appointment of Joseph La Rosa as interim CFO. The company has also undergone board reorganization with the appointment of Siamack Alavi.
Further, La Rosa announced a debt restructuring agreement, deferring payments until 2025 and reducing its debt by approximately 9.5%, aligning with the company's aim of reaching an annualized revenue run rate of $100 million by the end of 2024. The company also revised the employment agreement of CEO Joseph La Rosa, introducing potential additional bonuses throughout the year.
Finally, La Rosa has announced plans to acquire a brokerage firm and BF Prime LLC, expanding its presence to Puerto Rico. These recent developments underscore La Rosa's commitment to strategic growth and financial transparency.
InvestingPro Insights
La Rosa Holdings Corp.'s (NASDAQ:LRHC) impressive revenue growth, as reported in their preliminary unaudited figures, is reflected in the InvestingPro data. The company's revenue growth for the last twelve months as of Q2 2023 stands at a remarkable 96.32%, with quarterly revenue growth in Q2 2023 reaching an even more striking 154.47%. These figures align with the company's reported 120% increase in revenue for the first nine months of 2024.
Despite this strong top-line growth, InvestingPro Tips highlight some challenges for LRHC. The company is not profitable over the last twelve months, which is consistent with their projection to reach profitability only by 2025. Additionally, LRHC suffers from weak gross profit margins, with InvestingPro data showing a gross profit margin of 8.53% for the last twelve months as of Q2 2023.
The stock's recent performance has been challenging, with InvestingPro Tips noting that the price has fallen significantly over the last year, three months, and six months. This is quantified in the data, showing a one-year price total return of -77.93% and a three-month return of -65.73%.
Investors considering LRHC should note that the stock generally trades with high price volatility, as pointed out by InvestingPro Tips. This volatility, combined with the company's growth trajectory and future acquisition plans, suggests a complex investment landscape for La Rosa Holdings.
For a more comprehensive analysis, InvestingPro offers 13 additional tips for LRHC, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.