EX-99.1 2 expi-20240731xex99d1.htm EX-99.1

Exhibit 99.1

Graphic

eXp World Holdings Reports Q2 2024 Results

BELLINGHAM, Wash. — July 31, 2024 — 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.

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).


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:

eXp ended the second quarter of 2024 with a global agent Net Promoter Score (aNPS) of 76, up from 72 a year ago. aNPS is a measure of agent satisfaction and an important key performance indicator (KPI) given the Company’s intense focus on improving the agent experience.
Agents and brokers on the eXp Realty platform decreased 1% year-over-year to 87,111 as of June 30, 2024 as we continue to off board less productive agents. However, we are committed to retaining our most productive agents in the United States and Canada through the execution of our growth strategies and the end-to-end suite of services we offer our agents.
Real estate sales transactions increased 1% year-over-year to 120,613.
Transaction volume increased 7% year-over-year to $51.9 billion.
Launched eXp Elevate Coaching, a state-of-the-art coaching platform designed to enhance the business growth and professional development of eXp Realty agents in North America.
Launched the Global Agent Referral Platform, designed to simplify and accelerate the real estate referral process.
Announced 44 eXp Realty agents named to the 2024 RealTrends + Tom Ferry The Thousand List, an annual, national program that ranks the top 500 agents and top 500 teams in the U.S. by transaction sides and sales volume.

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.

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.


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 STATEMENT OF CASH FLOWS

(In thousands, except share amounts)

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