Even as eXp Realty and its sister businesses face strong economic headwinds, eXp World Holdings has reported many positive financial and operational results for Q1 2023. (Read press release here.)
For starters, eXp’s alluring agent-centric value proposition continues to attract many big teams and top-producing agents, growing its agent base by 12% year-over-year to 87,327 agents in 24 locations. Experiencing growth, let alone double-digit growth is unheard of among brokerages, but eXp’s commitment to agents has become well-known.
“In 2009, we successfully launched the cloud-based, agent-centric brokerage model, which is now the model for many newer brokerage firms across the industry. As we iterate on the agent value proposition, our focus is to modernize our infrastructure for the next generation of real estate agents,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings. “Our cloud-based model and solid financial foundation enable us to continue investing in synergistic products and technologies that lay the groundwork for the future, while delivering an enhanced agent experience today.”
Other Q1 2023 Highlights Compared to the Same Year-Ago Quarter:
- Revenue decreased 16% to $850.6 million.
- Gross profit decreased 12% to $73.1 million.
- Net income of $1.5 million. Earnings per diluted share of $0.01 compared to earnings per diluted share of $0.06 in the year-ago quarter.
- Adjusted EBITDA (a non-GAAP financial measure) of $13.3 million.
- As of March 31, 2023, cash and cash equivalents totaled $122.8 million, compared to $130.1 million as of March 31, 2022. The company repurchased approximately $29.9 million of common stock during the first quarter of 2023.
- The Company paid a cash dividend for the first quarter of 2022 of $0.045 per share of common stock on March 31, 2023. On April 27, 2023, the Company’s Board of Directors declared a cash dividend of $0.045 per share of common stock for the second quarter of 2023, expected to be paid on May 31, 2023, to stockholders of record on May 12, 2023.
- Announced partnership with Realty.com, a listings platform that connects qualified sellers and buyers directly with real estate agents, including exclusive enhanced services and pricing.
- Appointed Peggie Pelosi to the Company’s Board of Directors, effective Jan. 26, 2023.
- Announced Amy Somerville as Chief Executive Officer, SUCCESS Enterprises.
- Agents and brokers on the eXp Realty platform increased 12% to 87,327 as of March 31, 2023.
- Real estate transactions closed decreased 10% to 102,305.
- Real estate transaction volume decreased 20% to $33.2 billion.
- eXp Realty ended the first quarter of 2023 with a global Net Promoter Score of 70, a measure of agent satisfaction, as part of the Company’s intense focus on improving the agent experience.
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. 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 forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to revise or update them. 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.