BELLINGHAM, Wash., March 18, 2019 (GLOBE NEWSWIRE) -- eXp World Holdings, Inc. (NASDAQ: EXPI), the holding company for eXp Realty and eXp World Technologies, today announced financial results for the fourth quarter and full year ended Dec. 31, 2018.
Fourth-Quarter 2018 Financial Summary
- Revenue increased 212% in the fourth quarter to a $150.4 million, compared to $48.2 million in the fourth quarter of 2017.
- Gross profit grew 96% to $10.3 million in the fourth quarter of 2018, compared to $5.2 million in the fourth quarter of 2017.
- Adjusted EBITDA (a non-GAAP financial measure) was $(1.1) million in the fourth quarter of 2018, compared to $(2.1) million in the fourth quarter of 2017.
- Net loss was $5.2 million, or $(0.09) per diluted share in the fourth quarter of 2018, compared to net loss of $11.8 million, or $(0.22) per diluted share, in the fourth quarter of 2017.
- Cash flow from operations increased to $5.5 million in the fourth quarter of 2018, compared to $1.7 million in the fourth quarter of 2017.
Full-Year 2018 Financial Summary
- Revenue increased 220% in 2018 to a record $500.1 million, compared to $156.1 million in 2017.
- Gross profit grew 145% to $40.4 million in 2018, compared to $16.5 million in 2017.
- Adjusted EBITDA (a non-GAAP financial measure) significantly increased to $2.4 million in 2018, compared to $(3.9) million in 2017.
- Net loss was $22.4 million, or $(0.39) per diluted share, in 2018, compared to net loss of $22.1 million, or $(0.42) per diluted share, in 2017.
- Cash flow from operations increased to $24.3 million in 2018, compared to $4.6 million in 2017.
eXp World Holdings’ record results are a direct reflection of eXp Realty’s long-term appeal for agents and brokers who joined the company during the last 12 months as well as its ability to attract top teams — from all geographies across a variety of major real estate brands and independent brokerages.
“In the past year, eXp has grown in extraordinary ways in both financials and size. eXp Realty became the first and only real estate brokerage to operate as one brokerage in all 50 U.S. states, more than tripled revenue and grew agent count by 139 percent,” said eXp World Holdings CEO, Chairman and Founder Glenn Sanford.
“In addition, our investments and partnerships in technology this last year provided a platform where eXp Realty agents can grow their businesses and teams, and we can control our own destiny as a company. We made two major moves this year to foster collaboration, education and growth opportunities for agents — Workplace by Facebook and the acquisition of VirBELA. With VirBELA’s virtual learning and team development capabilities, we will be able to scale in unforeseen ways. eXp Realty’s cloud campus allows us to manage fixed costs as if they are variable, keeping the business sustainable for now and into the future.”
“We are proud of the contributions of our agents and staff in building a world-class real estate team and operating platform. In 2019, the company is focused on continuing to scale eXp Realty, international growth and expanding VirBELA to others who could benefit from an always-available environment for collaboration,” said eXp World Holdings CFO Jeff Whiteside.
Operating and Business Highlights
- The number of agents and brokers on the eXp Realty platform increased by 139% to 15,570 at the end of 2018, compared to 6,511 at the end of 2017. Fourth-quarter agent count increased 12% (1,711) in the fourth quarter of 2018, compared to 1,559 in the same quarter a year ago. As of Feb. 28, 2019, agent count was 17,128.
- Residential transaction sides closed for 2018 increased 195% to 74,678, compared to 25,299 in 2017. Residential transaction sides closed in the fourth quarter of 2018 was 22,083, an increase of 173% compared to 8,080 during the fourth quarter of 2017.
- Residential transaction volume closed for 2018 increased 226% to $19.8 billion, compared to $6.1 billion in 2017. Residential transaction volume closed in the fourth quarter of 2018 was $6.0 billion, an increase of 208%, compared to $1.9 billion during the fourth quarter of 2017.
- eXp Realty became the first and only real estate brokerage to operate as one brokerage in all 50 U.S. states. eXp Realty also operates in three provinces in Canada.
- Completed asset acquisition of VirBELA, LLC’s core group of products and services. VirBELA offers a modern, cloud-based environment focused on education and team development with clients in various industries from government to retail.
- Commenced trading on Nasdaq.
- eXp Realty was honored as a Glassdoor Best Place to Work and CEO Glenn Sanford was named a Glassdoor top 50 CEO for 2018.
- eXp Realty received a number of real estate industry honors, including a 2018 Inman Innovator Award for Most Innovative Broker Owner; ranked No. 7 in the 2018 REAL Trends 500; and ranked No. 8 on RISMedia's Top 500 Power Broker Report for U.S. residential real estate firm by 2017 closed transactions.
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, a non-GAAP financial measure. We view Adjusted EBITDA as an operating performance measure and, as such, we believe that the GAAP financial measure most directly comparable to it is net income (loss). We define Adjusted EBITDA as net income excluding interest, income taxes, depreciation, amortization, and stock based compensation. We believe that Adjusted EBITDA provides us an important measure of operating performance and enhances comparability while providing investors with useful insight into the underlying trends of the business. Our use of Adjusted EBITDA has limitations as an analytical tool, and this measure should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP, as the excluded items may have significant effects on our operating results and financial condition. Additionally, our measure of Adjusted EBITDA may differ from other companies’ measure of Adjusted EBITDA. When evaluating our performance, Adjusted EBITDA should be considered with other financial performance measures, including various cash flow metrics, net income and other GAAP results. In the future, we may disclose different non-GAAP financial measures in order to help our investors and others more meaningfully evaluate and compare our future results of operations to our previously reported results of operations.
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. Such forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to revise or update them. These statements include, but are not limited to, statements about the company’s expansion, revenue growth, operating results, financial performance and net income changes. 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; 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 Annual Report on Form 10-K.
About eXp World Holdings
eXp World Holdings, Inc. (NASDAQ: EXPI) houses eXp Realty and eXp World Technologies, LLC, which operates the VirBELA platform and eXp World Marketplace.
eXp Realty is the first cloud-based real estate brokerage, the largest residential real estate brokerage by geography in North America and the first and only real estate brokerage to operate as one brokerage in all 50 U.S. states. It is one of the fastest growing real estate brokerage firms in North America with more than 17,000 agents across 50 U.S. states, the District of Columbia and three Canadian provinces. As a publicly traded company, eXp World Holdings uniquely offers real estate professionals within its ranks opportunities to earn company stock for production and contributions to overall company growth.
VirBELA offers a modern, cloud-based environment focused on education and team development with clients in various industries from government to retail. VirBELA developed eXp Realty’s current cloud campus, which provides 24/7 access to collaborative tools, training and socialization for the company’s agents and staff.
For more information, please visit the company’s website at www.expworldholdings.com.
Reported Consolidated Results
| EXP WORLD HOLDINGS, INC. | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| December 31, 2018 | December 31, 2017 | |||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS | ||||||||||
| Cash and cash equivalents | $ | 20,538,057 | $ | 4,672,034 | ||||||
| Restricted cash | 2,502,591 | 923,193 | ||||||||
| Accounts receivable, net of allowance $484,441 and $179,759, respectively | 17,428,091 | 6,912,657 | ||||||||
| Prepaids and other assets | 1,857,988 | 591,034 | ||||||||
| TOTAL CURRENT ASSETS | 42,326,727 | 13,098,918 | ||||||||
| FIXED ASSETS, NET | 2,739,525 | 1,538,213 | ||||||||
| INTANGIBLE ASSETS, NET | 2,531,669 | - | ||||||||
| GOODWILL | 8,248,107 | - | ||||||||
| TOTAL ASSETS | $ | 55,846,028 | $ | 14,637,131 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| CURRENT LIABILITIES | ||||||||||
| Accounts payable | $ | 1,758,377 | $ | 635,087 | ||||||
| Customer deposits | 2,502,591 | 923,193 | ||||||||
| Accrued expenses | 18,976,435 | 8,818,180 | ||||||||
| Current portion of long-term payable | 974,659 | - | ||||||||
| TOTAL CURRENT LIABILITIES | 24,212,062 | 10,376,460 | ||||||||
| LONG-TERM PAYABLE | 1,654,337 | |||||||||
| TOTAL LIABILITIES | 25,866,399 | 10,376,460 | ||||||||
| STOCKHOLDERS' EQUITY | ||||||||||
| Common Stock, $0.00001 par value 220,000,000 shares authorized; | ||||||||||
| 60,609,102 and 54,962,535 shares issued and outstanding at | ||||||||||
| December 31, 2018 and December 31, 2017, respectively | 606 | 550 | ||||||||
| Additional paid-in capital | 90,755,616 | 36,848,041 | ||||||||
| Accumulated deficit | (60,765,266 | ) | (32,596,374 | ) | ||||||
| Accumulated other comprehensive income | (11,327 | ) | 8,454 | |||||||
| TOTAL STOCKHOLDERS' EQUITY | 29,979,629 | 4,260,671 | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 55,846,028 | $ | 14,637,131 | ||||||
| EXP WORLD HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| Year Ended December 31, | ||||||||
| 2018 | 2017 | |||||||
| Revenues | $ | 500,147,681 | $ | 156,104,544 | ||||
| Operating expenses | ||||||||
| Cost of revenues | 459,715,836 | 139,603,970 | ||||||
| General and administrative | 57,618,506 | 35,685,512 | ||||||
| Professional fees | 2,236,236 | 1,274,675 | ||||||
| Sales and marketing | 2,961,618 | 1,572,041 | ||||||
| Total operating expenses | 522,532,196 | 178,136,198 | ||||||
| Net loss from operations | (22,384,515) | (22,031,654) | ||||||
| Other income and (expenses) | ||||||||
| Other income (expense) | (21,196) | - | ||||||
| Interest income (expense) | 53,155 | (2,077) | ||||||
| Total other income and (expenses) | 31,959 | (2,077) | ||||||
| Loss before income tax expense | (22,352,556) | (22,033,731) | ||||||
| Income tax expense | (77,800) | (97,234) | ||||||
| Net loss | $ | (22,430,356) | $ | (22,130,965) | ||||
| Net loss per share attributable to common shareholders | ||||||||
| Basic from continuing operations | $ | (0.39) | $ | (0.42) | ||||
| Diluted from continuing operations | $ | (0.39) | $ | (0.42) | ||||
| Weighted average shares outstanding | ||||||||
| Basic | 57,689,920 | 53,194,928 | ||||||
| Diluted | 57,689,920 | 53,194,928 | ||||||
| US-GAAP Net Income (Loss) to Adjusted EBITDA Reconciliation | ||||||||||||||||||||||||
| Adjusted EBITDA Reconciliation, QTD | Mar-17 | Jun-17 | Sep-17 | Dec-17 | Mar-18 | Jun-18 | Sep-18 | Dec-18 | ||||||||||||||||
| Net Income / (Loss) | $ | (2,899,821 | ) | $ | (2,147,295 | ) | $ | (5,314,737 | ) | $ | (11,769,113 | ) | $ | (10,696,345 | ) | $ | (1,886,658 | ) | $ | (4,628,171 | ) | $ | (5,219,182 | ) |
| Other | 1,715 | 3,762 | 58 | (3,458 | ) | - | - | (9,387 | ) | (22,572 | ) | |||||||||||||
| Income Tax Expense | 24,591 | 23,747 | 3,277 | 45,619 | 30,450 | 14,270 | 7,455 | 25,625 | ||||||||||||||||
| Depreciation & Amortization | 13,265 | 81,437 | 112,487 | 146,040 | 183,321 | 147,558 | 240,031 | 323,079 | ||||||||||||||||
| Stock Compensation | 646,232 | 757,145 | 2,357,877 | 7,200,377 | 8,279,109 | 3,989,604 | 4,238,665 | 2,546,100 | ||||||||||||||||
| Stock Option | 1,467,735 | 1,126,195 | 1,971,394 | 2,290,705 | 1,301,702 | 1,181,969 | 1,103,055 | 1,260,180 | ||||||||||||||||
| Adjusted EBITDA | $ | (746,283 | ) | $ | (155,009 | ) | $ | (869,644 | ) | $ | (2,089,830 | ) | $ | (901,763 | ) | $ | 3,446,743 | $ | 951,647 | $ | (1,086,771 | ) | ||
Connect with eXp Realty and eXp World Holdings:
- Facebook - Canada, United States, investor relations
- Twitter - United States, investor relations
- LinkedIn - Canada and United States
Media Relations Contact:
Cynthia Nowak
Vice president, marketing and communications, eXp Realty
360.419.5285 ext. 116
cynthia.nowak@exprealty.com
Investor Relations Contact:
Greg Falesnik
Managing director, MZ Group – MZ North America
949.385.6449
greg.falesnik@mzgroup.us