• eXp World Holdings Reports Q2 2024 Results

    Source: Nasdaq GlobeNewswire / 31 Jul 2024 16:15:00   America/New_York

    BELLINGHAM, Wash., July 31, 2024 (GLOBE NEWSWIRE) -- eXp World Holdings, Inc. (Nasdaq: EXPI), or the “Company”, the holding company for eXp Realty®, FrameVR.io and SUCCESS® Enterprises, today announced financial results for the second quarter ended June 30, 2024.

    “The power of the eXp platform is paying off for our agents and eXp worldwide,” said Glenn Sanford, eXp World Holdings Founder, Chairman and CEO. “We believe the investments we’ve made to provide our agents with the best tools, technology and training during this downturn are helping them outpace the industry in productivity while increasing our agent NPS score. It’s clear that we have established the winning playbook for agents in the U.S. while our International segment is an untapped opportunity where I have taken a more active role guiding our ongoing growth. Moving forward, we will continue to relentlessly pursue our core objective of being the most agent-centric real estate brokerage on the planet.”

    “After gathering feedback from agents during my first quarter as eXp Realty CEO, it is clear that our initiatives to support agent productivity are gaining traction,” said Leo Pareja, eXp Realty CEO. “Agents love the expanded learning and development options, faster payouts and Gen AI-based self-service capabilities we have introduced, and they are eager for what’s to come. I remain committed to seeking new ways to leverage technology to operate more efficiently, which will both fund our investments in agent productivity and drive agent satisfaction as increasingly automated processes enable agents to devote more of their time to serving their clients.”

    “We delivered a solid second quarter as eXp agents closed $52 billion of transactions, a 7% year-over-year increase, and grew revenues 5% year-over-year while generating significant cash flow and returning $56 million to shareholders through share repurchases and cash dividends,” said Kent Cheng, Chief Accounting Officer of eXp World Holdings. “We continue to improve business efficiencies and reduce costs, even while investing aggressively in our agents. We believe this winning formula will drive superior growth and greater value for our shareholders over the long term.”

    Second Quarter 2024 Consolidated Financial Highlights as Compared to the Same Year-Ago Period:

    • Second quarter revenue increased 5% to $1,295 million, driven by the superior productivity of our agents, which more than offset declines in the U.S. real estate market, as well as increased home sales prices. U.S. transaction units outperformed the market1.
    • Second quarter net income from continuing operations of $11.8 million compared to $11.4 million net income in the second quarter of 2023. In spite of a 44% increase of operating income, net income is impacted unfavorably by higher tax on continuing operations. Second quarter net income from continuing operations per diluted share of $0.08 compared to net income per diluted share of $0.07 in the year-ago quarter. Second quarter net income including discontinued operations was $12.4 million compared to $9.4 million in the second quarter of 2023.
    • Second quarter operating costs2 were $79.0 million, a 4% decrease compared to the second quarter of 2023. This decrease was driven by lower expenses related to the shareholders summit in 2024, since it was conducted virtually, and lower employee-related expenses, partially offset by increased legal expenses associated with the antitrust lawsuit.
    • Second quarter adjusted EBITDA3 (a non-GAAP financial measure) of $32.8 million, an increase of 22% compared to the second quarter of 2023. Adjusted EBITDA was higher year over year, due to improved business efficiencies, reduced costs, and higher revenues and gross profit.
    • As of June 30, 2024, cash and cash equivalents totaled $108.4 million, compared to $124.7 million as of June 30, 2023. The Company repurchased approximately $48.2 million of common stock during the second quarter of 2024.
    • The Company paid a cash dividend for the second quarter of 2024 of $0.05 per share of common stock on May 27, 2024. On July 26, 2024, the Company’s Board of Directors declared a cash dividend of $0.05 per share of common stock for the third quarter of 2024, expected to be paid on August 30, 2024 to stockholders of record on August 14, 2024.

    Second Quarter 2024 Operational Highlights as Compared to the Same Year-Ago Period:

    ________________________
    1 Based on home sales transaction growth and estimated market share. Sources: Industry transactions based on NAR existing home sales (assuming 2 sides per sale) and U.S. Census Bureau new home sales (assuming 1 side per sale).
    2 Excludes commissions and other agent-related costs.
    3 A reconciliation of adjusted EBITDA to net income and a discussion of why management believes adjusted EBITDA, a non-GAAP measure, is useful is included below.

    Second Quarter 2024 Results – Virtual Fireside Chat

    The Company will hold a virtual fireside chat and investor Q&A with eXp World Holdings Founder and CEO Glenn Sanford, eXp Realty CEO Leo Pareja and eXp World Holdings Chief Accounting Officer, Kent Cheng on Wednesday, July 31, 2024 at 2 p.m. PT / 5 p.m. ET.

    The investor Q&A is open to investors, current stockholders and anyone interested in learning more about eXp World Holdings and its companies. Submit questions in advance for inclusion to investors@eXpWorldHoldings.com.

    Date: Wednesday, July 31, 2024

    Time: 2 p.m. PT / 5 p.m. ET

    Location: exp.world. Join at https://exp.world/earnings

    Livestream: expworldholdings.com/events

    About eXp World Holdings, Inc.

    eXp World Holdings, Inc. (Nasdaq: EXPI) is the holding company for eXp Realty®, FrameVR.io and SUCCESS® Enterprises.

    eXp Realty is the largest independent real estate company in the world with more than 87,000 agents in the United States, Canada, the United Kingdom, Australia, France, India, Mexico, Portugal, South Africa, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, the Dominican Republic, Greece, New Zealand, Chile, Poland and Dubai and continues to scale internationally. As a publicly traded company, eXp World Holdings provides real estate professionals the unique opportunity to earn equity awards for production goals and contributions to overall company growth. eXp World Holdings and its businesses offer a full suite of brokerage and real estate tech solutions, including an innovative residential and commercial brokerage model, professional services, collaborative tools and personal development. The cloud-based brokerage is powered by FrameVR.io technology, offering immersive 3D platforms that are deeply social and collaborative, enabling agents to be more connected and productive. SUCCESS® Enterprises, anchored by SUCCESS® magazine and its related media properties, was established in 1897 and is a leading personal and professional development brand and publication.

    For more information, visit https://expworldholdings.com.

    eXp World Holdings, Inc. intends to use its Investor Relations website, its X (formerly Twitter) feed (@eXpWorldIR), Facebook page (https://www.facebook.com/eXpWorldHoldings), Instagram account (@eXpWorldHoldings), LinkedIn page (https://www.linkedin.com/company/expworldholdings/), as well as eXp Realty, LLC’s X (formerly Twitter) feed (@eXpRealty), Facebook page (https://www.facebook.com/eXpRealty), Instagram account (@eXpRealty_), and LinkedIn account (https://www.linkedin.com/company/exp-realty/) as a means of disclosing material non-public information and to comply with its disclosure obligations under Regulation FD.

    Use of Non-GAAP Financial Measures

    To provide investors with additional information regarding our financial results, this press release includes references to adjusted EBITDA, which is a non-U.S. GAAP financial measure that may be different from similarly titled measures used by other companies. This measure is presented to enhance investors’ overall understanding of the Company’s financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.

    The Company’s non-GAAP financial measure provides useful information about financial performance, enhances the overall understanding of past performance and future prospects, and allows for greater transparency with respect to key metrics used by management for financial and operational decision-making. This measure may also provide additional tools for investors to use in comparing core financial performance over multiple periods with other companies in the industry.

    • Adjusted EBITDA helps identify underlying trends in the business that could otherwise be masked by the effect of the expenses excluded in adjusted EBITDA. In particular, the Company believes the exclusion of stock and stock option expenses provides a useful supplemental measure in evaluating the performance of operations and provides better transparency into results of operations. The Company defines adjusted EBITDA to mean net income (loss) from continuing operations, excluding other income (expense), income tax benefit (expense), depreciation, amortization, impairment charges, litigation contingency expenses, stock-based compensation expense, and stock option expense.

    Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP.

    Safe Harbor Statement

    The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. These statements include, but are not limited to, statements about future cost saving measures; the continued growth of our agent and broker base; improvements in technology and operational processes; revenue growth; dividends; and financial performance. Such forward-looking statements speak only as of the date hereof, and the Company undertakes no obligation to revise or update them. Such statements are not guarantees of future performance. Important factors that may cause actual results to differ materially and adversely from those expressed in forward-looking statements include changes in business or other market conditions; outcomes of ongoing litigation; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission filings, including but not limited to the most recently filed Quarterly Report on Form 10-Q and Annual Report on Form 10-K.

    Media Relations Contact:

    eXp World Holdings, Inc.

    mediarelations@expworldholdings.com

    Investor Relations Contact:

    Denise Garcia

    investors@expworldholdings.com


              
     EXP WORLD HOLDINGS, INC.
     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     (In thousands, except share amounts and per share data)
      
       Three Months Ended June 30,Six Months Ended June 30,
        2024   2023   2024   2023 
     Revenues $1,295,244  $1,231,116  $2,238,298  $2,079,569 
              
     Commissions and other agent-related costs  1,197,668   1,135,615   2,062,414   1,912,453 
     General and administrative expenses  61,160   64,917   123,742   119,543 
     Technology and development expenses  14,848   14,888   29,609   28,948 
     Sales and marketing expenses  3,031   2,860   6,170   5,787 
     Litigation contingency  -   -   16,000   - 
     Total operating expenses  1,276,707   1,218,280   2,237,935   2,066,731 
     Operating income  18,537   12,836   363   12,838 
     Other (income) expense        
     Other (income) expense, net  (1,749)  (1,294)  (2,937)  (2,168)
     Equity in losses of unconsolidated affiliates  374   143   523   485 
     Total other (income) expense, net  (1,375)  (1,151)  (2,414)  (1,683)
     Income before income tax expense  19,912   13,987   2,777   14,521 
     Income tax expense  8,146   2,632   4,841   1,174 
     Net income (loss) from continuing operations  11,766   11,355   (2,064)  13,347 
     Net income (loss) from discontinued operations  617   (1,933)  (1,192)  (2,472)
     Net income (loss) $12,383  $9,422  $(3,256) $10,875 
     Earnings (loss) earnings per share        
     Basic, net income (loss) from continuing operations $0.08  $0.07  $(0.01) $0.09 
     Basic, net income (loss) from discontinued operations  0.00   (0.01)  (0.01)  (0.02)
     Basic, net income (loss)  0.08   0.06   (0.02)  0.07 
     Diluted, net income (loss) from continuing operations  0.08   0.07   (0.01)  0.09 
     Diluted, net income (loss) from discontinued operations  0.00   (0.01)  (0.01)  (0.02)
     Diluted, net income (loss) $0.08  $0.06  $(0.02) $0.07 
     Weighted average shares outstanding        
     Basic  153,580,879   153,249,120   154,160,607   152,899,883 
     Diluted  155,984,147   156,693,959   154,160,607   156,119,627 
     Comprehensive income (loss):        
     Net income (loss) $12,383  $9,422  $(3,256) $10,875 
     Other comprehensive income (loss):        
     Foreign currency translation gain (loss), net of tax  (898)  64   (1,787)  707 
     Comprehensive income (loss) attributable to eXp World Holdings, Inc. $11,485  $9,486  $(5,043) $11,582 
              


    CONSOLIDATED US-GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION
    (In thousands)
     
      Three Months Ended June 30, Six Months Ended June 30,
       2024   2023   2024   2023 
    Net income (loss) from continuing operations $11,766  $11,355  $(2,064) $13,347 
    Other (income) expense, net  (1,375)  (1,151)  (2,414)  (1,683)
    Income tax (benefit) expense  8,146   2,632   4,841   1,174 
    Depreciation and amortization  2,963   3,143   5,363   5,358 
    Litigation contingency  —   —   16,000   — 
    Stock compensation expense(1)  9,329   8,488   18,157   18,148 
    Stock option expense  1,985   2,380   3,975   5,126 
    Adjusted EBITDA $32,814  $26,847  $43,858  $41,470 
             
    (1)This includes agent growth incentive stock compensation expense and stock compensation expense related to business acquisitions.
             


          
    EXP WORLD HOLDINGS, INC. 
    CONDENSED CONSOLIDATED BALANCE SHEETS 
    (In thousands, except share amounts) 
          
      June 30, 2024 December 31, 2023 
          
    ASSETS     
    CURRENT ASSETS     
    Cash and cash equivalents $108,395  $125,873  
    Restricted cash  85,126   44,020  
    Accounts receivable, net of allowance for credit losses of $1,527 and $2,204, respectively  133,896   85,343  
    Prepaids and other assets  7,082   9,275  
    Current assets of discontinued operations  1,068   1,964  
    TOTAL CURRENT ASSETS  335,567   266,475  
    Property, plant, and equipment, net  11,789   12,967  
    Other noncurrent assets  10,815   7,410  
    Intangible assets, net  5,965   7,012  
    Deferred tax assets  66,916   69,253  
    Goodwill  19,673   16,982  
    Noncurrent assets of discontinued operations  6,706   5,569  
    TOTAL ASSETS $457,431  $385,668  
          
    LIABILITIES AND EQUITY     
    CURRENT LIABILITIES     
    Accounts payable $11,529  $8,788  
    Customer deposits  86,496   44,550  
    Accrued expenses  122,497   86,483  
    Litigation contingency  16,000   -  
    Other liabilities  23   10  
    Current liabilities of discontinued operations  560   1,809  
    TOTAL CURRENT LIABILITIES  237,105   141,640  
    Long-term payable  -   20  
    TOTAL LIABILITIES $237,105  $141,660  
          
    EQUITY     
    Common Stock, $0.00001 par value 900,000,000 shares authorized; 189,947,235 issued and 153,733,373 outstanding at June 30, 2024; 183,606,708 issued and 154,669,037 outstanding at December 31, 2023  2   2  
    Additional paid-in capital  883,704   804,833  
    Treasury stock, at cost: 36,213,862 and 28,937,671 shares held, respectively  (626,825)  (545,559) 
    Accumulated deficit  (35,100)  (16,769) 
    Accumulated other comprehensive (loss) income  (1,455)  332  
    Total eXp World Holdings, Inc. stockholders' equity  220,326   242,839  
    Equity attributable to noncontrolling interest  -   1,169  
    TOTAL EQUITY  220,326   244,008  
    TOTAL LIABILITIES AND EQUITY $457,431  $385,668  
          


    EXP WORLD HOLDINGS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
     
      Six Months Ended June 30,
       2024   2023 
    OPERATING ACTIVITIES    
    Net income (loss) $(3,256) $10,875 
    Reconciliation of net income (loss) to net cash provided by operating activities:   .
    Depreciation expense  3,950   4,163 
    Amortization expense - intangible assets  1,413   1,195 
    Allowance for credit losses on receivables/bad debt on receivables  (677)  (2,470)
    Equity in loss of unconsolidated affiliates  523   485 
    Agent growth incentive stock compensation expense  18,157   18,148 
    Stock option compensation  3,975   5,126 
    Agent equity stock compensation expense  56,456   65,652 
    Deferred income taxes, net  2,337   3,370 
    Changes in operating assets and liabilities:    
    Accounts receivable  (48,871)  (45,266)
    Prepaids and other assets  1,841   367 
    Customer deposits  41,946   50,854 
    Accounts payable  2,741   (3,069)
    Accrued expenses  35,243   49,273 
    Long term payable  -   (4,692)
    Litigation contingency  16,000   - 
    Other operating activities  23   157 
    NET CASH PROVIDED BY OPERATING ACTIVITIES  131,801   154,168 
    INVESTING ACTIVITIES    
    Purchases of property, plant, equipment  (2,772)  (3,433)
    Purchase of business  (3,150)  - 
    Investments in unconsolidated affiliates  (3,938)  (5,350)
    Capitalized software development costs in intangible assets  (509)  (1,179)
    NET CASH USED IN INVESTING ACTIVITIES  (10,369)  (9,962)
    FINANCING ACTIVITIES    
    Repurchase of common stock  (81,266)  (78,728)
    Proceeds from exercise of options  1,052   1,253 
    Transactions with noncontrolling interests  (1,169)  - 
    Dividends declared and paid  (15,075)  (13,460)
    NET CASH USED IN FINANCING ACTIVITIES  (96,458)  (90,935)
    Effect of changes in exchange rates on cash, cash equivalents and restricted cash  (1,346)  620 
    Net change in cash, cash equivalents and restricted cash  23,628   53,891 
    Cash, cash equivalents and restricted cash, beginning balance  169,893   159,383 
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $193,521  $213,274 
    SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:    
    Cash paid for income taxes  1,542   1,833 
    SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
    Termination of lease obligation - operating lease  -   837 
    Property, plant and equipment increase due to transfer of right-of-use lease asset  -   1,100 
         


    SEGMENT REVENUES
    (In thousands)
     
      Three Months Ended June 30, Six Months Ended June 30,
    Revenues  2024   2023   2024   2023 
    North American Realty $1,274,621  $1,219,345  $2,201,758  $2,056,459 
    International Realty  20,316   11,991   35,912   22,748 
    Other Affiliated Services  1,467   1,072   —   — 
    Revenues reconciliation:        
    Segment eliminations  (1,160)  (1,292)  (2,627)  (2,387)
    Consolidated revenues $1,295,244  $1,231,116  $2,238,298  $2,079,569 
             


    ADJUSTED SEGMENT EBITDA
    (In thousands)
     
      Three Months Ended June 30, Six Months Ended June 30,
       2024   2023   2024   2023 
    North American Realty $38,503  $34,122  $56,312  $55,325 
    International Realty  (2,376)  (3,782)  (5,731)  (7,458)
    Other Affiliated Services  (988)  (1,168)  (1,755)  (1,849)
    Corporate expenses and other  (2,325)  (2,325)  (4,968)  (4,548)
    Consolidated Adjusted EBITDA $32,814  $26,847  $43,858  $41,470 
             


    CONSOLIDATED US-GAAP NET INCOME TO ADJUSTED NET INCOME RECONCILIATION
    (In thousands)
         
      Three Months Ended June 30, Six Months Ended June 30,
       2024   2023  2024   2023
    Net income (loss) $12,383  $9,422 $(3,256) $10,875
    Add back:        
    Net loss from discontinued operations  (617)  1,933  1,192   2,472
    Litigation contingency  —   —  16,000   —
    Tax benefit on litigation contingency  —   —  (4,595)  —
    Adjusted net (loss) income $11,766  $11,355 $9,341  $13,347
             
    (Loss) earnings per share:        
    Adjusted diluted, net (loss) income $0.08  $0.07 $0.06  $0.09
             
    Weighted average shares outstanding        
    Basic  153,580,879   153,249,120  154,160,607   152,899,883
    Diluted  155,984,147   156,693,959  154,160,607   156,119,627


    ADJUSTED OPERATING CASH FLOW
    (In thousands)
     
      Three Months Ended June 30,Six Months Ended June 30,
       2024  2023 2024  2023
    Net Cash Provided by Operating Activities $71,147 $98,024$131,801 $154,168
    Less: Customer Deposits  10,707  33,472 41,946  50,854
    Adjusted Operating Cash Flow $60,440 $64,552$89,855 $103,314
            

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d0919c40-2502-4d1f-bbfa-ab2b78ce86df


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    eXp World Holdings Reports Q2 2024 Results

    eXp World Holdings, Inc. (Nasdaq: EXPI), or the “Company”, the holding company for eXp Realty®, FrameVR.io and SUCCESS® Enterprises, today announced financial results for the second quarter ended June 30, 2024.
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