SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2023

SEGMENT INFORMATION

SEGMENT INFORMATION

11.SEGMENT INFORMATION

The reportable segments presented below represent the Company’s segments for which separate financial information is available and which is utilized on a regular basis by its chief operating decision maker to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its segments.

Management evaluates the operating results of each of its reportable segments based upon revenue and Adjusted EBITDA. Adjusted Segment EBITDA is defined by us as operating profit plus depreciation and amortization and stock-based compensation expenses. The Company’s presentation of Adjusted Segment EBITDA may not be comparable to similar measures used by other companies. The Company’s four reportable segments are as follows:

● North American Realty: includes real estate brokerage operations in the United States and Canada, as well as lead-generation and other real estate support services provided in North America.

● International Realty: includes real estate brokerage operations in all other international locations.

● Virbela: includes Virbela enterprise metaverse technology and the support services offered by eXp World Technologies.

● Other Affiliated Services: includes our SUCCESS^® Magazine and other smaller ventures.

The Company also reports corporate expenses, as further detailed below, as “Corporate and other” which include expenses incurred in connection with business development support provided to the agents as well as resources, including administrative, brokerage operations and legal functions.

All segments follow the same basis of presentation and accounting policies as those described throughout the Notes to the Audited Consolidated Financial Statements included herein. The Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. The following table provides information about the Company’s reportable segments and a reconciliation of the total segment Revenues to consolidated Revenues and Adjusted Segment EBITDA to the consolidated operating profit and Goodwill (in thousands). Financial information for the comparable prior periods presented have been revised to conform with the current year presentation.

​	Revenues
	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
North American Realty	$ 1,198,207	$ 1,226,368	$ 3,254,666	$ 3,632,276
International Realty	14,896	10,146	37,644	26,148
Virbela	1,720	2,328	5,694	6,181
Other Affiliated Services	979	1,417	3,729	3,298
Revenues reconciliation:
Segment eliminations	(1,289)	(1,284)	(3,677)	(3,137)
Consolidated revenues	$ 1,214,513	$ 1,238,975	$ 3,298,056	$ 3,664,766

	Adjusted EBITDA
	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
North American Realty	$ 27,171	$ 22,445	$ 82,496	$ 91,115
International Realty	(2,647)	(4,614)	(10,105)	(9,584)
Virbela	(1,297)	(3,197)	(3,789)	(8,684)
Other Affiliated Services	(918)	(563)	(2,767)	(2,139)
Corporate expenses and other	(3,359)	(1,722)	(8,829)	(13,737)
Consolidated Adjusted EBITDA	$ 18,950	$ 12,349	$ 57,006	$ 56,971
Operating Profit Reconciliation:
Depreciation and amortization expense	2,790	2,767	8,148	7,154
Stock compensation expense	11,764	5,800	29,912	22,828
Stock option expense	2,533	3,756	7,659	10,872
Consolidated operating profit	$ 1,863	$ 26	$ 11,287	$ 16,117

	Goodwill
	September 30, 2023	December 31, 2022
North American Realty	$ 14,244	$ 16,577
International Realty	-	-
Virbela	8,248	8,248
Other Affiliated Services	2,387	2,387
Segment total	24,879	27,212
Corporate and other	-	-
Consolidated total	$ 24,879	$ 27,212

The Company does not use segment assets to allocate resources or to assess performance of the segments and therefore, total segment assets have not been disclosed.