Reliance Global Group Reports 63% Increase in Revenue for 2020 and Provides Year-End Business Update
March 24 2021 - 9:30AM
via NewMediaWire --
Reliance Global Group, Inc. (Nasdaq:
RELI; RELIW), which combines AI and cloud-based technologies
with the personalized experience of a traditional insurance agency,
today provided a business update and reported financial results for
the year-ended December 31, 2020.
Ezra Beyman, CEO of Reliance Global Group, commented, “2020 was
a transformative year for the Company. First, we continued
our acquisition strategy with the purchase and successful
integration of UIS Agency, LLC, a regional insurance agency serving
the commercial transportation industry. We now operate through
seven wholly owned agencies with plans to continue our M&A
strategy. Specifically, we are targeting growing and
profitable businesses that we can buy at attractive multiples and
with the ability to leverage both technology and economies of scale
to gain significant efficiencies.”
“In early 2020, we made a strategic investment in
Nsure.com and, more recently, we launched our own
platform, 5minuteinsure.com. The goal of 5minuteinsure.com is
to tap into the growing number of online shoppers. Utilizing
artificial intelligence, in many cases we can provide competitive
insurance quotes online within five minutes, with minimal data
input by the customer. 5minuteinsure.com combines the best of a
traditional insurance agency, including the option for direct agent
interaction with the ability to bind a policy either online or
offline. I am especially pleased to report that 5MinuteInsure.com,
through our affiliated Reliance Insurtech division, has received
access to sales capabilities through licenses granted to Reliance
Insurtech to sell home and auto insurance in 43 states, with
near-term plans to add additional states and carriers, as well as
expand into additional types of insurance. We believe this
state-of-the-art Insurtech platform has the potential to truly
disrupt the industry.”
“We continue to enhance our infrastructure and
expand our internal resources. Heading into 2021, we are
accelerating our sales and marketing initiatives targeting large
enterprises and employee organizations. We have also hired senior
insurance industry executives to assist in both the rollout of our
online offering, as well as accelerate our acquisition strategy. In
addition, we significantly enhanced our balance sheet through the
recent public offering for gross proceeds of $12.4 million
concurrent with our listing on the Nasdaq. The combination of
these events provides us a much stronger platform to execute our
organic growth and acquisition strategies.”
“In 2020, revenue increased 63%, reflecting our
continued growth and execution of our business model.
Importantly, we incurred significant company expenses in 2020
related to preparations for our Nasdaq listing, while at the same
time, we invested heavily in our infrastructure and operations to
support our continued expansion. As a result, we believe we
have built a highly scalable operation with the potential for high
recurring revenue and operating margins.”
Financial Results
The Company achieved revenues of $7,279,530 for
the year ended December 31, 2020, as compared to $4,450,785 for the
year ended December 31, 2019. The increase of $2,828,745 was
primarily due to the insurance agencies acquired in 2019 reporting
revenue for the full twelve months of 2020 compared to partial year
of revenue for the agencies acquired in 2019. The Company had total
commission expense of $1,569,752 for the year ending December 31,
2020 compared to $705,714 for the year ending December 31, 2019.
The Company had total general and administrative expenses of
$4,205,797 for the year ending December 31, 2020, as compared to
$3,638,896 for the year ending December 31, 2019 due to additional
stock option expense and professional fees, as well as additional
public and other reporting expenses as the Company prepared to list
on Nasdaq. Loss from operations for the year ending December 31,
2020 was $3,644,418, compared to $3,103,911 for 2019. Net loss for
2020 was $3,699,005, or ($0.88) per share, compared to $3,495,481,
or ($1.21), in 2019.
The complete financial results are available in
the Company’s Form 10-K, which has been filed with the U.S.
Securities & Exchange Commission and is available on the
Company’s website.
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (NASDAQ: RELI, RELIW)
is combining advanced technologies, with the personalized
experience of a traditional insurance agency model. Reliance Global
Group’s growth strategy includes both an organic expansion,
including through 5minuteinsure.com, as well as acquiring well
managed, undervalued and cash flow positive insurance
agencies. Additional information about the Company is
available at https://www.relianceglobalgroup.com/.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. Statements
other than statements of historical facts included in this press
release may constitute forward-looking statements and are not
guarantees of future performance, condition or results and involve
a number of risks and uncertainties. Actual results may differ
materially from those in the forward-looking statements as a result
of a number of factors, including those described from time to time
in our filings with the Securities and Exchange Commission and
elsewhere. The Company undertakes no duty to update any
forward-looking statement made herein. All forward-looking
statements speak only as of the date of this press release.
Contact:
Crescendo Communications, LLC Tel: +1 (212)
671-1020 Email: RELI@crescendo-ir.com
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