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EXp World Holdings saw revenue tick up by 2 percent on an annual basis to $1.2 billion, largely driven by rising home sales prices and agent productivity, the company reported in its third-quarter earnings, released on Thursday.
The company saw a net loss of $6.5 million, down from its net income of $2.3 million during Q3 2023. The sharp increase in losses was a result of $18 million the company had to pay as part of its antitrust commission lawsuit settlement.
“This is an exciting and pivotal time for eXp agents worldwide,” Glenn Sanford, eXp World Holdings founder, chairman and CEO said in a statement.
“We continue to operate the most innovative, agent-centric real estate brokerage on the planet, improving the agent value proposition by leveraging technology like generative AI to help eXp agents and employees work faster, better and smarter. Our competitive value proposition and continued strong agent NPS score indicate we are well-positioned for success as the market begins to turn.
“Worldwide, we continue to unlock the international opportunities by supporting tools like HomeHunter.global and our expected upcoming expansion of the eXp Realty model into Türkiye, Peru, and Egypt markets that we announced at eXpcon last week.”
Adjusted income during the third quarter, excluding the antitrust litigation and discontinued operations was $7.8 million, up from $2.3 million the year before.
Operating costs were down 1 percent year over year to $78 million, driven by lower tech and development expenses and lower sales and marketing expenses, the firm explained, but partially offset by increased legal expenses due to the lawsuit settlement.
EXp’s cash and cash equivalents were $130.4 million as of Sept. 30, 2024, up from $120.4 million the previous year.
The company saw a 4 percent annual decrease in agents and brokers on its platform for a total of 85,249 agents and brokers as of Sept. 30. The company has been making a push to offload less-productive agents in recent quarters.
Sanford’s five-year goal has been to reach 500,000 agents by 2026. During the second quarter of 2024, eXp Realty cut its agent losses to 1 percent year over year, an improvement from the previous quarter when that figure was 2 percent.
In its efforts to amp up agent recruitment, eXp Realty also recently updated its revenue share model, giving agents access to the “ICON Incentive Program” and the “Revenue Share Capping Incentive Program.” The revamped program will credit agents with ICON status with 30 “Front Line Qualifying Agents” for 13 months, maximizing revenue share potential across the program’s seven skill levels, the firm said.
EXp Realty CEO Leo Pareja also highlighted the handful of high-producing teams the firm was able to recruit during the last quarter.
“We are thrilled to announce that eXp Realty welcomed several high-achieving independent brokerages and agent teams to our platform in the third quarter,” Pareja said in a statement.
“Leading independent brokerages, recognized as powerhouses in their regions, are choosing eXp to accelerate their growth and maximize their earnings potential. Our innovative business model and exceptional value proposition set us apart in the industry, and our strategic investments in cutting-edge programs and technology make eXp an incredibly attractive option for independent brokerages. By joining eXp, they gain access to resources and support that would be prohibitively expensive to develop independently.”
As the number of transactions declined 1 percent year over year to 117,830, transaction volume grew 5 percent year over year to $50.8 billion.
During the third quarter of 2024, eXp Realty also launched groups within eXp Commercial for Unmatched Advisor Collaboration and Streamlined Deals. In addition, the company named Donald Cherry vice president of Sustainability.
“We’re really here to build the most agent-centric brokerage on the planet,” Sanford said during an investor call on Thursday.
The eXp World Holdings founder noted that the firm will be opening in at least three new countries in 2025, as it continues to swiftly expand internationally, largely building around strong real estate leaders and allowing that guide where they expand next.
A new partnership the firm recently developed with Homehunter.global, which aggregates international search websites and allows consumers to track their viewed homes as well as connect with eXp agents, will also help eXp level up its international game, Sanford said.
During the investor call, CMO Wendy Forsythe also discussed the company’s refreshed, “2.0” brand, which slightly adjusts the brand’s blue color and has adopted a more modern, sleek feel.
Forsythe also gave an update about the firm’s luxury sector, which launched two years ago, and has grown 94 percent year over year. The firm also recently acquired the marketing tech platform LUXVT, as announced at its recent eXpcon event, which will provide luxury agents with high-quality marketing solutions.
EXp Realty VP of Technology Innovation Seth Siegler then spoke about the firm’s adoption of AI to help empower agents in their businesses, noting that eXp has an “unwavering focus” on leveraging AI solutions. AI is now integrated into the firm’s expert care desk and support chatbot, Luna 2.0, which helps provide them with support 24/7, Siegler said.
In the future, Siegler said the firm sees “incredible opportunities” for further leveraging AI in the brokerage’s business. He added that the company is also launching an Investor Relations GPT feature on the company’s website to help investors and other users search for specific data from the firm’s past earnings reports.
One investor call participant asked if the firm’s leaders could share their thoughts on the Clear Cooperation Policy, which stipulates that agents and brokers must list a property on the MLS within 24 hours of publicly marketing it, and which is currently under consideration to be eliminated or modified by the National Association of Realtors (NAR).
Pareja said he was a “loud proponent of the policy.”
“It is the best thing for the consumer, specifically because it has a total marketplace with accurate data, and it also keeps the price of marketing at a very reasonable price,” Pareja said. “I think it’s very important to defend and maintain the way we do business here in North America,” he concluded.
EXp World Holdings’ stock declined slightly during after hours trading on Thursday as the investor call took place, dropping by about 1.15 percent to $14.60 per share.
