Blog Earnings Press Release

eXp World Holdings Reports First-Quarter 2019 Financial Results

Q1 2019 Revenue Up 153% to Record $157 Million

BELLINGHAM, WASH. — May 9, 2019 — eXp World Holdings, Inc. (NASDAQ: EXPI), the holding firm for eXp Realty and eXp World Technologies, at this time introduced financial outcomes for the primary quarter ended March 31, 2019.

First-Quarter 2019 Financial Summary

  • Revenue increased 153% in the first quarter of 2019 to $157 million, compared to $62 million within the first quarter of 2018.
  • Gross profit grew 132% to $14.5 million within the first quarter of 2019, compared to $6.3 million in the first quarter of 2018. Gross profit is calculated as revenues less commission and other agent-related costs.
  • Net loss was $6.three million, or $(zero.10) per diluted share in the first quarter of 2019, in comparison with a internet loss of $10.7 million, or $(zero.19) per diluted share, within the first quarter of 2018.
  • Adjusted EBITDA (a non-GAAP financial measure) was $(773,348) within the first quarter of 2019, compared to $(901,763) within the first quarter of 2018.
  • Cash move from operations increased 39% to $6.7 million within the first quarter of 2019, compared to $4.eight million within the first quarter of 2018.

Focused on Agent eXperience

In the first quarter of 2019, eXp Realty continued its focus and obsession on offering an impressive experience for its agents. The firm uses Net Promoter Score to measure and ensure they’re delivering and enhancing the agent expertise. eXp Realty earned a 68 agent Net Promoter Score, which measures agent satisfaction, within the first quarter. The score is a reflection of improvements made based mostly on agent feedback, the tech offered to ensure brokers are protected, and the packages provided to assist new and skilled brokers thrive at eXp Realty and in their business. These things helped to gasoline the company’s agent NPS, and strong agent progress and revenue within the first quarter.

  • Implemented Safety Check for Workplace by Facebook to raised affirm, amongst its agents, brokers and employees in a number of nations, who’s protected or may need help in the occasion of a natural catastrophe or crisis.
  • Introduced ShowMeNow, an on-demand residence tour cellular app, to Austin, Texas and Nashville, Tennessee in the first quarter, with further markets slated to launch in 2019.

“As the most agent-centric real estate brokerage on the planet, eXp kicked off 2019 with new and expanded agent programs and tech initiatives to ensure every agent and broker at eXp Realty has the tools and training to establish or grow their business,” stated eXp World Holdings CEO, Chairman and Founder Glenn Sanford. “This has helped us to continue our rapid growth with our ongoing commitment to creating a seamless, tech-enabled, and incredibly rewarding agent experience that is unparalleled within the industry. We established an NPS benchmark across numerous areas of the company to ensure an outstanding agent experience and recognize where we still need to do work.”

Recognized for Agent Production

eXp Realty agents are among the prime producers in the country. Real property business studies that came out in the first quarter honored eXp Realty with prime rankings for its transaction sides, transaction quantity and agent rely.

  • 2018 REAL Trends 500 named eXp Realty No. 4 for closed transaction sides and No. 5 for closed sales quantity in 2018.
  • 2018 Swanepoel Mega 1000 named eXp Realty the No. 3 prime brokerage by agent rely at the finish of 2018, No. four for transaction sides and No. 6 for gross sales quantity in 2018.

Sustainable Equity Plan

Implemented in the first quarter, eXp World Holdings’ Sustainable Equity Plan continues to share fairness with eXp Realty brokers and brokers while also maintaining the longevity of the corporate. The company already is starting to acknowledge the long-term advantages for agents and company profitability.

The firm additionally approved a stock repurchase program to offset equity issuances. In the primary quarter of the yr and this system, the corporate repurchased greater than 357,000 shares. This permits the corporate to offset a portion of the equity issuances offered to brokers at eXp Realty.

“We believe agents and brokers deserve the benefits of being a shareholder and income based on the level of their contribution — no matter where life takes them,” stated Sanford. “We are happy to report that we are starting to see the benefits of the plan for both agents and the company reflected in revenue this quarter. This goes back to our commitment to offer agents long-term financial opportunities and ensure the longevity of eXp Realty.”


Our acquisition of VirBELA in the fourth quarter of 2018 resulted in instant improvements within the eXp Realty agent experience and continues to point out promise with different current and potential clients.

“We believe that our VirBELA platform will prove to be an attractive virtual alternative to physical offices for companies with a distributed employee base, allowing employees to efficiently collaborate as if they shared an office,” stated Sanford.

First-Quarter 2019 Operating and Business Highlights

  • The variety of brokers and brokers on the eXp Realty platform increased by 93% to 17,929 on the finish of the primary quarter of 2019, in comparison with 9,290 at the finish of the primary quarter of 2018.
  • Residential transaction sides closed within the first quarter of 2019 was 22,307, an increase of 136% compared to 9,473 in the course of the first quarter of 2018.
  • Residential transaction quantity closed within the first quarter of 2019 was $5.eight billion, an increase of 149%, in comparison with $2.three billion in the course of the first quarter of 2018.
  • VirBELA continued improvement work and put assets in place to allow for progress throughout quite a lot of industries.
  • Founder Glenn Sanford was named a 2019 RISMedia Real Estate Newsmaker and 2019 REAL Trends Game Changer, and ranked as probably the most powerful and influential leaders in residential real estate by the 2019 Swanepoel Power 200.
  • eXp World Holdings hired General Counsel James Bramble, and Dave Conord and Stacey Onnen took on the expanded management roles of co-presidents at eXp Realty.

Use of Non-GAAP Financial Measures

To present buyers with further info relating to our financial outcomes, this press release consists of references to Adjusted EBITDA, a non-GAAP monetary measure. We view Adjusted EBITDA as an working efficiency measure and, as such, we consider that the GAAP monetary measure most instantly similar to it is internet revenue (loss). We outline Adjusted EBITDA as internet revenue excluding curiosity, revenue taxes, depreciation, amortization, and stock-based compensation apart from the agent fairness program. We consider that Adjusted EBITDA supplies us an necessary measure of working performance and enhances comparability whereas providing buyers with useful insight into the underlying developments of the enterprise. Our use of Adjusted EBITDA has limitations as an analytical software, and this measure shouldn’t be thought-about in isolation or as an alternative to an evaluation of our results as reported beneath GAAP, as the excluded gadgets might have vital results on our operating results and financial situation. Additionally, our measure of Adjusted EBITDA might differ from different corporations’ measure of Adjusted EBITDA. When evaluating our performance, Adjusted EBITDA must be thought-about with other financial performance measures, including numerous cash move metrics, internet revenue and different GAAP outcomes. In the longer term, we might disclose totally different non-GAAP financial measures in an effort to help our buyers and others more meaningfully consider and examine our future outcomes of operations to our beforehand reported outcomes of operations.

Safe Harbor Statement

The statements contained herein might embrace statements of future expectations and different forward-looking statements which might be based mostly on management’s present views and assumptions and involve recognized and unknown risks and uncertainties that would cause actual results, performance or occasions to differ materially from those expressed or implied in such statements. Such forward-looking statements converse only as of the date hereof, and the company undertakes no obligation to revise or replace them. These statements embrace, but will not be limited to, statements concerning the firm’s enlargement, income progress, operating outcomes, financial performance and internet revenue modifications. Such statements are usually not ensures of future performance. Important elements which will cause actual results to vary materially and adversely from these expressed in forward-looking statements embrace modifications in enterprise or other market circumstances; the problem of maintaining expense progress at modest ranges while growing revenues; and different dangers detailed on occasion within the firm’s Securities and Exchange Commission filings, including but not limited to probably the most lately filed Annual Report on Form 10-Okay.

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, The Real Estate Cloud Brokerage™, is the most important residential real property brokerage by geography in North America. It is among the fastest rising actual property brokerage companies in North America with more than 18,000 agents throughout 50 U.S. states, the District of Columbia and three Canadian provinces. As a subsidiary of a publicly traded firm, eXp Realty uniquely gives actual property professionals inside its ranks opportunities to earn eXp World Holdings inventory for production and contributions to general company progress.

VirBELA provides a modern, cloud-based setting targeted on schooling and staff improvement with shoppers in numerous industries from authorities to retail. VirBELA developed eXp Realty’s current cloud campus, which offers 24/7 entry to collaborative instruments, training and socialization for the company’s agents and employees.

For extra info, please visit the company’s website at

Reported Consolidated Results

EXP WORLD HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2019 December 31, 2018 ASSETS CURRENT ASSETS Cash and money equivalents $ 20,771,971 $ 20,538,057 Restricted money four,193,802 2,502,591 Accounts receivable, internet of allowance $297,567 and $484,441, respectively 29,693,641 17,428,091 Prepaids and different belongings 1,792,756 1,857,988 TOTAL CURRENT ASSETS 56,452,170 42,326,727 Fixed Assets, internet three,153,814 2,739,525 Right-of-use belongings – working 291,689 – Intangible belongings, internet 2,458,678 2,531,669 Goodwill eight,248,107 8,248,107 TOTAL ASSETS $ 70,604,458 $ 55,846,028 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable $ 1,300,295 $ 1,758,377 Customer deposits four,193,802 2,502,591 Accrued bills 30,764,719 18,976,435 Current portion of long-term payable 974,659 974,659 Current portion of lease obligation – operating 79,538 – TOTAL CURRENT LIABILITIES 37,313,013 24,212,062 LONG-TERM PAYABLE Long time period payable 1,716,853 1,654,337 Long term lease obligation – working 212,214 – TOTAL LIABILITIES 39,242,080 25,866,399 STOCKHOLDERS’ EQUITY Common Stock, $zero.00001 par value 220,000,000 shares approved; 61,499,843 issued and 61,142,091 excellent at March 31, 2019, 60,609,102 issued and 60,609,102 excellent at December 31, 2018 612 606 Additional paid-in capital 102,066,398 90,755,616 Treasury inventory, at value: 357,652 shares held at March 31, 2019 (three,647,076 ) Accumulated deficit (67,061,089 ) (60,765,266 ) Accumulated different comprehensive revenue 3,533 (11,327 ) TOTAL STOCKHOLDERS’ EQUITY 31,362,378 29,979,629 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 70,604,458 $ 55,846,028 EXP WORLD HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three Month’s Ended March 31, 2019 2018 Revenues $ 157,033,632 $ 61,962,531 Operating expenses Commission and different agent-related prices 142,542,405 55,701,516 General and administrative 19,700,772 16,281,113 Sales and advertising 888,850 645,797 Total working bills 163,132,027 72,628,426 Net loss from operations (6,098,395 ) (10,665,895 ) Other revenue and (expenses) Other revenue (expense) (80,976 ) – Interest revenue (expense) 46,245 – Total different revenue and (expenses) (34,731 ) – Loss earlier than revenue tax expense (6,133,126 ) (10,665,895 ) Income tax expense (162,697 ) (30,450 ) Net loss $ (6,295,823 ) $ (10,696,345 ) Net loss attributable to widespread shareholders $ (6,295,823 ) $ (10,696,345 ) Net loss per share attributable to widespread shareholders Basic from continuing operations $ (zero.10 ) $ (zero.19 ) Diluted from persevering with operations $ (0.10 ) $ (0.19 ) Weighted average shares outstanding Basic 60,749,378 56,193,753 Diluted 60,749,378 56,193,753 The accompanying notes are an integral a part of these consolidated monetary statements.
US-GAAP Net Income (Loss) to Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation, QTD Mar-18 Jun-18 Sep-18 Dec-18 Mar-19
Net Income / (Loss) $ (10,696,345 ) $ (1,886,658 ) $ (4,628,171 ) $ (5,219,182 ) $ (6,295,823 )
Other (9,387 ) (22,572 ) 34,731
Income Tax Expense 30,450 14,270 7,455 25,625 162,697
Depreciation & Amortization 183,321 147,558 240,031 323,zero79 440,279
Stock Compensation 8,279,109 3,989,604 4,238,665 2,546,100 three,669,320
Stock Option 1,301,702 1,181,969 1,103,zero55 1,260,180 1,215,448
Adjusted EBITDA (901,763 ) 3,446,743 951,647 (1,086,771 ) (773,348 )

Connect with eXp Realty and eXp World Holdings:

Media Relations Contact:

Cynthia Nowak
Vice president of selling and communications, eXp Realty
360.419.5285 ext. 116
[email protected]

Investor Relations Contact:

Greg Falesnik
Managing director, MZ Group – MZ North America
[email protected]