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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 down 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.
