Cementing its presence in the real estate industry, eXp World Holdings reported its most profitable quarter in its history with net income of $8.3 million in the second quarter, which represents continued progress toward the company’s goal of achieving positive earnings for a fiscal year. In addition, quarterly revenue grew 33% year over year to $354 million driven by eXp Realty’s continued strength in agent count and transactions during an unprecedented time for the real estate industry and the global economy.
Amid the global pandemic, eXp Realty continued to deliver on its value proposition to agents, brokers and consumers and report record financial results and achieved the most profitable quarter in the company’s more than 10-year history with a positive net income for the third quarter in a row
The success is credited to the performance of agents and the power of cloud-based brokerage model which lead to exceptional results with strong growth in all areas, despite initial impacts on the housing market from business restrictions related to COVID-19. VirBELA also played a huge role in keeping up with the demand as companies look to the future and how they will operate given all the uncertainties around physical office set-ups or how to hold events.
Second-quarter 2020 Financial Results Summary
- Revenue increased 33% in the second quarter of 2020 to $354 million, compared to $267 million in the second quarter of 2019.
- Gross profit grew 55% to $34.4 million in the second quarter of 2020, compared to $22.1 million in the second quarter of 2019. Gross profit is calculated as revenues less commission and other agent-related costs.
- Net income was $8.3 million, or $0.11 per diluted share in the second quarter of 2020, compared to a net loss of $2.2 million, or $(0.04) per diluted share, in the second quarter of 2019.
- Adjusted EBITDA (a non-GAAP financial measure) was $13.6 million in the second quarter of 2020, compared to $3.8 million in the second quarter of 2019.
- Cash flow from operations increased 57% to $28.5 million in the second quarter of 2020, compared to $18.1 million in the second quarter of 2019.
Second-quarter 2020 Operating and Business Highlights
- The number of agents and brokers on the eXp Realty platform increased 54% to 31,091 at the end of the second quarter of 2020, compared to 20,162 a year ago.
- Residential transaction sides closed for the second quarter of 2020 increased approximately 22% to 43,653, compared to 35,836 during the second quarter of 2019.
- Residential transaction volume closed for the second quarter of 2020 increased approximately 26% to $13.0 billion, compared to $10.3 billion during the second quarter of 2019.
- By focusing on the agent experience, eXp Realty earned a 70 agent Net Promoter Score, which measures agent satisfaction, for the second quarter in a row.
As eXp enters the 2nd half of the year, revenue is expected to continue to grow year over year in the third and fourth quarters of 2020 due to anticipated growth in home transaction sides and commission revenue in eXp Realty. With COVID-19 still at large, eXp Realty vows to adapt and thrive in the real estate business.