BELLINGHAM, WA – August 15, 2016 – eXp World Holdings, Inc. (OTCQB: EXPI), today released its second quarter financial results.
Financial Highlights
- Revenues for the quarter of $13,282,028, up 137% from $5,584,963 year over year;
- Agent Count for Real Estate Division up 111% over Q2 2015 to 1,400 agents (as of June 30);
- Cash and cash equivalents at June 30, 2016 up 207% vs June 30, 2015;
- The Company reported a GAAP Net Loss of $6,005,907 which was primarily attributable to a $6.0 million non-cash compensation expense resulting from the required accounting treatment of stock options that were issued prior to EXPI being a public company.*
The increase in revenue is a direct result of the increased sales agent base and higher sales volume realized by the Company’s real estate brokerage division, eXp Realty, The Agent-Owned Cloud Brokerage®
. Today, eXp Realty has more than 1,580 real estate professionals across 40 states, The District of Columbia, and Alberta, Canada.
Glenn Sanford, the Company’s Chairman and Chief Executive Officer, commented on the Company’s performance, “eXp Realty continues to experience accelerated growth in agent count and in revenues as a result of our commitment to agent ownership, agent support, and agent engagement. ”
*Note: As explained in the Company’s Quarterly Report on Form 10-Q which can be found at: https://www.sec.gov/Archives/edgar/data/1495932/000101968716007240/exp_10q-063016.htm, the Company accounts for stock options issued prior to September 2013 using the intrinsic value method of accounting. As a result, the Company is required to remeasure the intrinsic value of these outstanding options at each reporting date and record a non-cash compensation expense or benefit to reflect the change in intrinsic value. As our stock price has continued to increase during the six month period ending June 30, 2016 this has triggered an increase in intrinsic value of these options resulting in a non-cash compensation expense of $6.0 million to be recognized during this period.
About eXp World Holdings, Inc.
eXp World Holdings, Inc. is the holding company for a number of companies most notably eXp Realty LLC, the Agent-Owned Cloud Brokerage®, as a full-service real estate brokerage providing 24/7 access to collaborative tools, training, and socialization for real estate brokers and agents through its 3-D, fully-immersive, cloud office environment. eXp Realty, LLC and eXp Realty of Canada, Inc. also feature an aggressive revenue sharing program that pays agents a percentage of gross commission income earned by fellow real estate professionals who they attract into the Company.
eXp World Holdings, Inc. also owns 89.4% of First Cloud Mortgage, Inc. a Delaware corporation launched in 2015 and now licensed to originate mortgages in Arizona, California, New Mexico, Virginia and Texas. First Cloud Mortgage has positioned itself as a Planet Friendly Mortgage Company via the purchase of carbon offsets for homeowners offsetting the first year of the Carbon Footprint of the typical home on each mortgage originated through First Cloud Mortgage, Inc.
As a publicly-traded company, eXp World Holdings, Inc. uniquely offers professionals within its ranks opportunities to earn equity awards for production and contributions to overall company growth.
For more information you can follow eXp World Holdings, Inc. on Twitter, LinkedIn, Facebook, YouTube, or visit eXpWorldHoldings.com. For eXp Realty please visit: eXpRealty.com and for First Cloud Mortgage, Inc. check out FirstCloudMortgage.com.
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 Company’s expansion, revenue growth, operating results, financial performance and net income changes. 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 Annual Report on Form 10-K.
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