MIL-OSI: eXp World Holdings Reports Record First Quarter 2022 Revenue of $1.0 Billion

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Source: GlobeNewswire (MIL-OSI)

Q1 2022 Revenue Increased 73% Year-over-Year to $1.0 Billion, Driven by Agent Growth of 55%

Company Declares Cash Dividend for Q2 2022 of $0.04 per Share of Common Stock

Board Increases Stock Repurchase Program to $20 Million per Month and $500 Million Total

BELLINGHAM, Wash., May 04, 2022 (GLOBE NEWSWIRE) — eXp World Holdings, Inc. (Nasdaq: EXPI), (or the “Company”), the holding company for eXp Realty®, Virbela and SUCCESS® Enterprises, today announced financial results for the first quarter ended March 31, 2022.

First Quarter 2022 Financial Highlights as Compared to the Same Year-Ago Quarter:

  • Revenue increased 73% to $1.0 billion.
  • Gross profit increased 56% to $83.5 million.
  • Net income increased 83% to $8.9 million, which included a $5.1 million income tax provision benefit. Earnings per diluted share increased 100% to $0.06.
  • Adjusted EBITDA (a non-GAAP financial measure) increased 19% to $17.7 million.
  • As of March 31, 2022, cash and cash equivalents totaled $130.1 million, compared to $104.4 million as of March 31, 2021. The Company repurchased approximately $30.0 million of common stock during the first quarter of 2022.
  • The Board approved an amendment to increase the Company’s stock repurchase program authorization from $400 million of its common stock up to $500 million, and to increase monthly repurchases from $10 million of its common stock per month up to $20 million.
  • The Company paid a cash dividend for the first quarter of 2022 of $0.04 per share of common stock on March 31, 2022. On April 29, 2022, the Company’s Board of Directors declared a cash dividend of $0.04 per share of common stock for the second quarter of 2022 expected to be paid on May 31, 2022 to shareholders of record on May 16, 2022.

Management Commentary

“eXp’s strong momentum continued through the first quarter as even more agents joined what we believe is the most agent-centric brokerage on the planet, fueling the fastest-growing agent base in the history of real estate to help clients and customers buy, sell and/or lease properties around the world,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings. “eXp was built to thrive in challenging market conditions and despite the headwinds affecting the broader housing market, we are well-positioned to capture increased market share. It is our goal to be over 100,000 agents and brokers worldwide by the end of the year through continued iteration on the agent value proposition. With each milestone and enhancement, we redefine the real estate industry and empower agents with aligned compensation structures and industry-leading technology to grow their businesses and serve their clients.”

“With a results-driven approach to scaling our business, eXp has delivered its fourth sequential billion-dollar revenue quarter,” said Jeff Whiteside, CFO and Chief Collaboration Officer of eXp World Holdings. “We continue to bolster our competitive position in the U.S. and internationally by investing significantly in operational efficiencies. Our new global financial system implemented this month will seamlessly support our growing global footprint, while we continue to invest in initiatives that differentiate our value proposition to agents and provide additional revenue streams for the company. Finally, the board’s decision to increase the total size of our stock repurchase plan and the amount repurchased each month reflects our leadership team’s confidence in our ability to deliver sustainable growth in our business over the long-term.”

First Quarter 2022 Operational Highlights as Compared to the Same Year-Ago Quarter:

  • Agents and brokers on the eXp Realty platform increased 55% to 78,196 as of March 31, 2022.
  • Real estate transactions closed increased 55% to 114,305.
  • Real estate transaction volume increased 69% to $41.4 billion.
  • eXp Realty expanded into the Dominican Republic and Greece in the first quarter of 2022, and announced its plans to open in three additional locations including, New Zealand, Chile and Dubai, United Arab Emirates.
  • eXp Realty ended the first quarter of 2022 with a global Net Promoter Score of 71, a measure of agent satisfaction as part of the Company’s intense focus on improving the agent experience.

First Quarter 2022 Results – Virtual Fireside Chat

The Company will hold a virtual fireside chat and investor Q&A on Wednesday, May 4, 2022 at 7:30 a.m. PT / 10:30 a.m. ET with:

  • Glenn Sanford, Founder, Chairman and CEO, eXp World Holdings
  • Jeff Whiteside, CFO and Chief Collaboration Officer, eXp World Holdings
  • Jason Gesing, CEO, eXp Realty

The discussion will be moderated by John Campbell, Managing Director at Stephens Inc.

The investor Q&A is open to investors, current shareholders and anyone interested in learning more about eXp World Holdings and its companies.

Date: Wednesday, May 4, 2022

Time: 7:30 a.m. PT / 10:30 a.m. ET

Location: EXPI Campus. Join at http://expworldholdings.com/contact/download/

Livestream: expworldholdings.com/events

About eXp World Holdings, Inc.

eXp World Holdings, Inc. (Nasdaq: EXPI) is the holding company for eXp Realty®, Virbela and SUCCESS® Enterprises.

eXp Realty is the fastest-growing real estate company in the world with more than 80,000 agents in the United States, Canada, the United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama, Germany, Dominican Republic and Greece and continues to scale internationally. As a publicly traded company, eXp World Holdings provides real estate professionals the unique opportunity to earn equity awards for production goals and contributions to overall company growth. eXp World Holdings and its businesses offer a full suite of brokerage and real estate tech solutions, including its innovative residential and commercial brokerage model, professional services, collaborative tools and personal development. The cloud-based brokerage is powered by Virbela, an immersive 3D platform that is deeply social and collaborative, enabling agents to be more connected and productive. SUCCESS® Enterprises, anchored by SUCCESS® magazine and its related media properties, was established in 1897 and is a leading personal and professional development brand and publication.

For more information, visit https://expworldholdings.com.

Use of Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, which is a non-U.S. GAAP financial measure and may be different than similarly titled measures used by other companies. It is presented to enhance investors’ overall understanding of the company’s financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.

The company’s Adjusted EBITDA provides useful information about financial performance, enhances the overall understanding of past performance and future prospects, and allows for greater transparency with respect to a key metric used by management for financial and operational decision-making. Adjusted EBITDA helps identify underlying trends in the business that otherwise could be masked by the effect of the expenses that are excluded in Adjusted EBITDA. In particular, the company believes the exclusion of stock and stock option expenses provides a useful supplemental measure in evaluating the performance of operations and provides better transparency into results of operations.

The company defines the non-U.S. GAAP financial measure of Adjusted EBITDA to mean net income (loss), excluding other income (expense), income tax benefit (expense), depreciation, amortization, impairment charges, stock-based compensation expense, and stock option expense. Adjusted EBITDA may assist investors in seeing financial performance through the eyes of management, and may provide an additional tool for investors to use in comparing core financial performance over multiple periods with other companies in the industry.

Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of Adjusted EBITDA compared to Net Income (Loss), the closest comparable U.S. GAAP measure. Some of these limitations are that:

  • Adjusted EBITDA excludes stock-based compensation expense and stock option expense, which have been, and will continue to be for the foreseeable future, significant recurring expenses in the business and an important part of the compensation strategy; and
  • Adjusted EBITDA excludes certain recurring, non-cash charges such as depreciation of fixed assets, amortization of acquired intangible assets, and impairment charges related to these long-lived assets, and, although these are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future.
US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION
(In thousands)
(Unaudited)
    Three Months Ended March 31,
         2022          2021  
Net income   $ 8,864     $ 4,846  
Other (income) expense, net     727       (128 )
Income tax (benefit) expense     (5,149 )     211  
Depreciation and amortization (1)     1,958       1,310  
Stock compensation expense (2)     7,798       5,472  
Stock option expense     3,511       3,109  
Adjusted EBITDA   $ 17,709     $ 14,820  
         
(1) Amortization of stock liability is included in the “Other expense (income)” line item.
(2) This includes agent growth incentive stock compensation expense and stock compensation expense related to business acquisitions.
         

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. Such forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to revise or update them. 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; demand for remote working and distance learning solutions and virtual events; development of our commercial brokerage and our ability to attract commercial real estate brokers; and revenue growth and financial performance. 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.

Media Relations Contact:

eXp World Holdings, Inc.

mediarelations@expworldholdings.com

Investor Relations Contact:

MZ Group – MZ North America

investors@expworldholdings.com

             
  EXP WORLD HOLDINGS, INC.  
   CONDENSED CONSOLIDATED BALANCE SHEETS  
  (In thousands, except share amounts)  
             
      March 31, 2022   December 31, 2021  
      (Unaudited)      
  ASSETS          
  CURRENT ASSETS          
  Cash and cash equivalents   $ 130,092     $ 108,237    
  Restricted cash     116,939       67,673    
  Accounts receivable, net of allowance for credit losses of $2,417 and $2,198, respectively     142,963       133,489    
  Prepaids and other assets     9,348       9,916    
  TOTAL CURRENT ASSETS     399,342       319,315    
  Property, plant, and equipment, net     19,024       15,902    
  Operating lease right-of-use assets     2,387       2,482    
  Other noncurrent assets     2,510       2,827    
  Intangible assets, net     7,204       7,528    
  Deferred tax assets     58,728       52,827    
  Goodwill     12,945       12,945    
  TOTAL ASSETS   $ 502,140     $ 413,826    
  LIABILITIES AND EQUITY          
  CURRENT LIABILITIES          
  Accounts payable   $ 7,191     $ 7,158    
  Customer deposits     116,939       67,673    
  Accrued expenses     128,741       111,672    
  Current portion of lease obligation – operating lease     238       311    
  TOTAL CURRENT LIABILITIES     253,109       186,814    
  Long-term payable     2,714       2,714    
  Long-term lease obligation – operating lease, net of current portion     779       765    
  TOTAL LIABILITIES     256,602       190,293    
  EQUITY          
  Common Stock, $0.00001 par value 900,000,000 shares authorized; 158,300,605 issued and 150,416,865 outstanding in 2022; 155,516,284 issued and 148,764,592 outstanding in 2021     2       1    
  Additional paid-in capital     450,570       401,479    
  Treasury stock, at cost: 7,883,740 and 6,751,692 shares held, respectively     (239,965 )     (210,009 )  
  Accumulated earnings     33,533       30,510    
  Accumulated other comprehensive income     229       188    
  Total eXp World Holdings, Inc. stockholders’ equity     244,369       222,169    
  Equity attributable to noncontrolling interest     1,169       1,364    
  TOTAL EQUITY     245,538       223,533    
  TOTAL LIABILITIES AND EQUITY   $ 502,140     $ 413,826    
             
                 
             
           
  EXP WORLD HOLDINGS, INC.
  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  (In thousands, except share amounts and per share data)
  (Unaudited)
      Three Months Ended March 31,
        2022       2021  
  Revenues   $ 1,010,731     $ 583,833  
  Operating expenses        
  Commissions and other agent-related costs     927,267       530,347  
  General and administrative expenses     75,322       46,300  
  Sales and marketing expenses     3,700       2,257  
  Total operating expenses     1,006,289       578,904  
  Operating income     4,442       4,929  
  Other (income) expense        
  Other (income) expense, net     410       (134 )
  Equity in losses of unconsolidated affiliates     317       6  
  Total other expense, net     727       (128 )
  Income before income tax expense     3,715       5,057  
  Income tax (benefit) expense     (5,149 )     211  
  Net income     8,864       4,846  
  Net income attributable to noncontrolling interest     18        
  Net income attributable to eXp World Holdings, Inc.   $ 8,882     $ 4,846  
           
  Earnings per share        
  Basic     0.06       0.03  
  Diluted     0.06       0.03  
  Weighted average shares outstanding        
  Basic     149,226,166       144,354,991  
  Diluted     156,842,721       158,722,126  
           
           
  EXP WORLD HOLDINGS, INC.
   CONSOLIDATED STATEMENTS OF CASH FLOWS
  (In thousands)
  (Unaudited)
           
      Three Months Ended March 31,
        2022       2021  
  OPERATING ACTIVITIES        
  Net income   $ 8,864     $ 4,846  
  Reconciliation of net income to net cash provided by operating activities:        
  Depreciation expense     1,616       1,007  
  Amortization expense – intangible assets     342       303  
  Loss on dissolution of consolidated affiliates     361        
  Allowance for credit losses on receivables/bad debt on receivables     219       385  
  Equity in loss of unconsolidated affiliates     317       6  
  Agent growth incentive stock compensation expense     7,798       5,472  
  Stock option compensation     3,511       3,109  
  Agent equity stock compensation expense     38,500       21,402  
  Deferred income taxes, net     (5,901 )      
  Accounts receivable     (9,846 )     (11,907 )
  Prepaids and other assets     496       (459 )
  Customer deposits     49,266       38,324  
  Accounts payable     74       1,161  
  Accrued expenses     15,854       15,420  
  Long term payable           (150 )
  Other operating activities     36        
  NET CASH PROVIDED BY OPERATING ACTIVITIES     111,507     78,919  
  INVESTING ACTIVITIES        
  Purchases of property, plant and equipment     (4,684 )     (2,257 )
  Acquisition of businesses           (1,500 )
  NET CASH (USED IN) INVESTING ACTIVITIES     (4,684 )     (3,757 )
  FINANCING ACTIVITIES        
  Repurchase of common stock     (29,956 )     (34,009 )
  Proceeds from exercise of options     498       1,373  
  Transactions with noncontrolling interests     (426 )      
  Dividends declared and paid     (5,859 )      
  NET CASH USED IN FINANCING ACTIVITIES     (35,743 )     (32,636 )
  Effect of changes in exchange rates on cash, cash equivalents and restricted cash     41       47  
  Net change in cash, cash equivalents and restricted cash     71,121       42,573  
  Cash, cash equivalents and restricted cash, beginning balance     175,910       127,924  
  CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE   $ 247,031     $ 170,497  
  SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:        
  Cash paid for income taxes     483       3  
  SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:        
  Property, plant and equipment purchases in accounts payable     246       141  
           

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/a7f264ba-a9aa-4d48-9aa9-b2d6bbc4c200

https://www.globenewswire.com/NewsRoom/AttachmentNg/510224c9-8f7c-4bf2-ab31-1793c39ead6a

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