eXp World Holdings Reports Record Second Quarter 2022 Revenue of $1.4 Billion

Bellingham, Washington, UNITED STATES


Q2 2022 Revenue Increased 42% Year over Year to $1.4 Billion With Agent Growth of 42%

Company Declares Cash Dividend for Q3 2022 of $0.045 per Share of Common Stock

Repurchases $50 Million of Common Stock During the Second Quarter

BELLINGHAM, Wash., Aug. 03, 2022 (GLOBE NEWSWIRE) -- eXp World Holdings, Inc. (Nasdaq: EXPI), (or the “Company”), the holding company for eXp Realty®, Virbela and SUCCESS® Enterprises, today announced financial results for the second quarter ended June 30, 2022.

Second Quarter 2022 Financial Highlights as Compared to the Same Year-Ago Quarter:

  • Revenue increased 42% to $1.4 billion.
  • Gross profit increased 34% to $107.3 million.
  • Net income of $9.4 million, compared to net income of $37.0 million in the year-ago quarter. Year over year tax expense increased $22.3 million due to one-time VA allowance release in 2021 and reduction in excess stock based compensation tax benefit. Earnings per diluted share of $0.06, compared to earnings per diluted share of $0.24 in the year-ago quarter.
  • Adjusted EBITDA (a non-GAAP financial measure) of $26.9 million.
  • As of June 30, 2022, cash and cash equivalents totaled $134.9 million, compared to $107.4 million as of June 30, 2021. The Company repurchased approximately $50 million of common stock during the second quarter of 2022.
  • The Company paid a cash dividend for the second quarter of 2022 of $0.04 per share of common stock on May 31, 2022. On July 29, 2022, the Company’s Board of Directors declared a cash dividend of $0.045 per share of common stock for the third quarter of 2022, a 13% increase, expected to be paid on Aug. 29, 2022 to shareholders of record on Aug. 12, 2022.

Management Commentary

“During the second quarter, eXp continued to increase its market share and revenue to record levels, reinforcing that our model was built for all market conditions and that our agent value proposition resonates around the world,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings. “We are focused on strengthening our platform to provide even better support to our agents through technology, operations, training, coaching and community. In the third quarter, we acquired Zoocasa, providing an exponential boost to Canadian agents that we expect to expand to a broader group of agents and real estate customers. We also further strengthened our management team with world-class hires focused on affiliated services and innovation of our proprietary technologies. We are leveraging our core strengths of agent satisfaction and innovation as we continue to redefine the real estate industry.”

“eXp delivered another record quarter with 42% revenue growth and solid profitability while returning a record $56 million to our shareholders through share repurchases and dividends,” said Jeff Whiteside, CFO and Chief Collaboration Officer of eXp World Holdings. “Looking ahead, we expect our agile model to result in ongoing market share gains as we navigate more challenging market conditions. We expect our focus on affiliated services and technology will further strengthen our agent and customer value proposition. Simultaneously, we will focus on increasing operating efficiencies for our business and our agents’ businesses. We remain confident in our ability to deliver profitable, sustainable growth over the long term.”

Second Quarter 2022 Operational Highlights as Compared to the Same Year-Ago Quarter:

  • eXp World Holdings and eXp Realty strengthened the leadership team with Shoeb Ansari, Chief Information Officer; Leo Pareja, President of Affiliated Services
  • Patrick O’Neill appointed Chief Operating Officer, eXp Realty beginning Aug. 4, 2022. Patrick brings more than 25 years of experience and a proven track record of building and optimizing high-growth technology businesses. More details to come.
  • Agents and brokers on the eXp Realty platform increased 42% to 82,856 as of June 30, 2022.
  • Real estate transactions closed increased 30% to 150,032.
  • Real estate transaction volume increased 44% to $57.9 billion.
  • eXp Realty expanded into New Zealand in the second quarter of 2022.
  • eXp Realty ended the second quarter of 2022 with a global Net Promoter Score of 68, a measure of agent satisfaction as part of the Company’s intense focus on improving the agent experience.

Second Quarter 2022 Results – Virtual Fireside Chat

The Company will hold a virtual fireside chat and investor Q&A on Wednesday, Aug. 3, 2022 at 8 a.m. PT / 11 a.m. ET with:

  • Glenn Sanford, Founder, Chairman and CEO, eXp World Holdings
  • Jeff Whiteside, CFO and Chief Collaboration Officer, eXp World Holdings
  • Shoeb Ansari, Chief Information Officer, eXp World Holdings
  • Leo Pareja, President of Affiliated Services, eXp Realty

The discussion will be moderated by Justin Ages, Equity Research Analyst at Berenberg Capital Markets.

The investor Q&A is open to investors, current shareholders and anyone interested in learning more about eXp World Holdings and its companies.

Date: Wednesday, Aug. 3, 2022

Time: 8 a.m. PT / 11 a.m. ET

Location: EXPI Campus. Join at http://expworldholdings.com/contact/download/

Livestream: expworldholdings.com/events

About eXp World Holdings, Inc.

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

eXp Realty is the fastest-growing real estate company in the world with more than 83,000 agents in the United States, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, Dominican Republic, Greece and New Zealand 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 its innovative residential and commercial brokerage model, professional services, collaborative tools and personal development. The cloud-based brokerage is powered by Virbela, an immersive 3D platform that is 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.

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 and may be different than similarly titled measures used by other companies. It 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 Adjusted EBITDA provides useful information about financial performance, enhances the overall understanding of past performance and future prospects, and allows for greater transparency with respect to a key metric used by management for financial and operational decision-making. Adjusted EBITDA helps identify underlying trends in the business that otherwise could be masked by the effect of the expenses that are 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 the non-U.S. GAAP financial measure of Adjusted EBITDA to mean net income (loss), excluding other income (expense), income tax benefit (expense), depreciation, amortization, impairment charges, stock-based compensation expense, and stock option expense. Adjusted EBITDA may assist investors in seeing financial performance through the eyes of management, and may provide an additional tool for investors to use in comparing core financial performance over multiple periods with other companies in the industry.

Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of Adjusted EBITDA compared to Net Income (Loss), the closest comparable U.S. GAAP measure. Some of these limitations are that:

  • Adjusted EBITDA excludes stock-based compensation expense and stock option expense, which have been, and will continue to be for the foreseeable future, significant recurring expenses in the business and an important part of the compensation strategy; and
  • Adjusted EBITDA excludes certain recurring, non-cash charges such as depreciation of fixed assets, amortization of acquired intangible assets, and impairment charges related to these long-lived assets, and, although these are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future.

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 continued growth of our agent and broker base; expansion of our residential real estate brokerage business into foreign markets; and revenue growth and financial performance. 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 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

Managing Partner, Hayflower Partners

investors@expworldholdings.com

      
EXP WORLD HOLDINGS, INC. 
 CONDENSED CONSOLIDATED BALANCE SHEETS 
(In thousands, except share amounts) 
  June 30, 2022 December 31, 2021 
  (Unaudited)   
ASSETS     
CURRENT ASSETS     
Cash and cash equivalents $134,898  $108,237  
Restricted cash  105,883   67,673  
Accounts receivable, net of allowance for credit losses of $2,806 and $2,198, respectively  154,997   133,489  
Prepaids and other assets  7,822   9,916  
TOTAL CURRENT ASSETS  403,600   319,315  
Property, plant, and equipment, net  19,906   15,902  
Operating lease right-of-use assets  2,265   2,482  
Other noncurrent assets  1,943   2,827  
Intangible assets, net  7,071   7,528  
Deferred tax assets  59,719   52,827  
Goodwill  12,945   12,945  
TOTAL ASSETS $ 507,449  $ 413,826  
LIABILITIES AND EQUITY     
CURRENT LIABILITIES     
Accounts payable $5,971  $7,158  
Customer deposits  93,566   67,673  
Accrued expenses  147,393   111,672  
Current portion of lease obligation - operating lease  213   311  
TOTAL CURRENT LIABILITIES  247,143   186,814  
Long-term payable  2,714   2,714  
Long-term lease obligation - operating lease, net of current portion  720   765  
TOTAL LIABILITIES  250,577   190,293  
EQUITY     
Common Stock, $0.00001 par value 900,000,000 shares authorized; 163,286,570 issued and 151,798,879 outstanding in 2022; 155,516,284 issued and 148,764,592 outstanding in 2021  2   1  
Additional paid-in capital  509,476   401,479  
Treasury stock, at cost: 11,487,691 and 6,751,692 shares held, respectively  (289,829)  (210,009) 
Accumulated earnings  37,007   30,510  
Accumulated other comprehensive income (loss)  (953)  188  
Total eXp World Holdings, Inc. stockholders' equity  255,703   222,169  
Equity attributable to noncontrolling interest  1,169   1,364  
TOTAL EQUITY  256,872   223,533  
TOTAL LIABILITIES AND EQUITY $ 507,449  $ 413,826  
      


EXP WORLD HOLDINGS, INC. 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
(In thousands, except share amounts and per share data) 
(Unaudited) 
  Three Months Ended June 30,  Six Months Ended June 30,  
   2022  2021   2022   2021  
Revenues $1,415,060 $999,887  $2,425,791  $1,583,720  
Operating expenses         
Commissions and other agent-related costs  1,307,810  919,970   2,235,077   1,450,317  
General and administrative expenses  91,391  60,721   166,713   107,021  
Sales and marketing expenses  4,210  2,683   7,910   4,940  
Total operating expenses  1,403,411  983,374   2,409,700   1,562,278  
Operating income  11,649  16,513   16,091   21,442  
Other (income) expense         
Other (income) expense, net  62  54   472   (80) 
Equity in losses of unconsolidated affiliates  567  1   884   7  
Total other (income) expense, net  629  55   1,356   (73) 
Income before income tax expense  11,020  16,458   14,735   21,515  
Income tax (benefit) expense  1,661  (20,585)  (3,488)  (20,374) 
Net income  9,359  37,043   18,223   41,889  
Net income attributable to noncontrolling interest  -  7   18   7  
Net income attributable to eXp World Holdings, Inc. $9,359 $37,050  $18,241  $41,896  
          
Earnings per share         
Basic  0.06  0.25   0.12   0.29  
Diluted  0.06  0.24   0.12   0.27  
Weighted average shares outstanding         
Basic  150,783,418  145,584,495   150,049,170   144,973,139  
Diluted  155,816,038  157,288,672   156,579,590   158,096,735  
          


EXP WORLD HOLDINGS, INC.
 CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
     
  Six Months Ended June 30,
   2022   2021 
OPERATING ACTIVITIES    
Net income $18,223  $41,889 
Reconciliation of net income to net cash provided by operating activities:    
Depreciation expense  3,570   2,196 
Amortization expense - intangible assets  817   621 
Loss on dissolution of consolidated affiliates  361   - 
Allowance for credit losses on receivables/bad debt on receivables  608   (208)
Equity in loss of unconsolidated affiliates  884   7 
Agent growth incentive stock compensation expense  17,028   11,312 
Stock option compensation  7,121   6,239 
Agent equity stock compensation expense  86,835   59,853 
Deferred income taxes, net  (6,892)  (15,329)
Changes in operating assets and liabilities:    
Accounts receivable  (22,269)  (57,095)
Prepaids and other assets  2,236   (4,466)
Customer deposits  25,893   65,981 
Accounts payable  (1,152)  2,354 
Accrued expenses  31,961   54,231 
Long term payable  -   (160)
Other operating activities  74   - 
NET CASH PROVIDED BY OPERATING ACTIVITIES  165,298   167,425 
INVESTING ACTIVITIES    
Purchases of property, plant and equipment  (8,077)  (5,609)
Acquisition of businesses  -   (1,500)
NET CASH (USED IN) INVESTING ACTIVITIES  (8,077)  (7,109)
FINANCING ACTIVITIES    
Repurchase of common stock  (79,820)  (88,912)
Proceeds from exercise of options  780   1,757 
Transactions with noncontrolling interests  (425)  19 
Dividends declared and paid  (11,744)  - 
NET CASH USED IN FINANCING ACTIVITIES  (91,209)  (87,136)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash  (1,141)  71 
Net change in cash, cash equivalents and restricted cash  64,871   73,251 
Cash, cash equivalents and restricted cash, beginning balance  175,910   127,924 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE $ 240,781  $ 201,175 
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:    
Cash paid for interest    
Cash paid for income taxes $2,444  $702 
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:    
Termination of lease liabilities  -   120 
Property, plant and equipment purchases in accounts payable  246   7 
     

 

US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION 
(In thousands) 
(Unaudited) 
  
  Three Months Ended June 30,  Six Months Ended June 30,  
      2022     2021   2022      2021  
Net income $9,359 $37,043  $18,223  $41,889  
Other (income) expense, net  629  55   1,356   (73) 
Income tax (benefit) expense  1,661  (20,585)  (3,488)  (20,374) 
Depreciation and amortization (1)  2,429  1,507   4,387   2,817  
Stock compensation expense (2)  9,230  5,840   17,028   11,312  
Stock option expense  3,606  3,128   7,121   6,239  
Adjusted EBITDA $26,914 $26,988  $44,627  $41,810  
          
(1) Amortization of stock liability is included in the “Other expense (income)” line item. 
(2) This includes agent growth incentive stock compensation expense and stock compensation expense related to business acquisitions. 
          

A photo accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/8438ede3-6c7f-4b11-b1e3-0a0be283bdb6


Q2 2022 Earnings press release PR image 080322