Revenue Accelerates to $130.5 Million, 235% Year-over-year Increase
BELLINGHAM, WASH. — Aug. 13, 2018 — eXp World Holdings (NASDAQ: EXPI), the holding company for eXp Realty, the largest residential real estate brokerage by geography in North America, today announced financial results for the second quarter ended June 30, 2018.
“We received a number of industry honors this quarter due to our amazing agents as they continue to deliver top production numbers, including this quarter’s record transaction and volume levels,” said eXp World Holdings CEO, Chairman and Founder Glenn Sanford. “We are proud to be on this journey together, providing superior technology and agent support. This quarter also marked a pivotal day in the history of eXp Realty as we moved to Nasdaq.”
Second Quarter 2018 Financial Summary
- Revenue increased 235% in the second quarter to a record $130.5 million, compared to $39 million in the second quarter of 2017. This represents sequential growth of 111%, compared to $62 million in the first quarter of 2018.
- Gross margin grew 193% in the second quarter of 2018 to $12.4 million, compared to $4.2 million in the second quarter of 2017.
- Net loss was $1.9 million, or $(0.03) per diluted share in the second quarter of 2018, compared to net loss of $2.1 million, or $(0.04) per diluted share, in the second quarter of 2017.
- Adjusted EBITDA (a non-GAAP financial measure) significantly increased to $3.4 million in the second quarter of 2018, compared to a ($155,000) in the second quarter of 2017.
- Cash flow from operations significantly increased to $8.6 million in the second quarter of 2018, compared to $475,065 in the second quarter of 2017.
Second Quarter 2018 Consolidated Operating and Business Highlights
- Residential transaction sides closed in the second quarter of 2018 was 19,903, an increase of 214%, compared to 6,331 during the second quarter of 2017. This represents 110% sequential growth, compared to 9,473 during the first quarter of 2018.
- Residential transaction volume closed in the second quarter of 2018 was $5.3 billion, an increase of 251%, compared to $1.5 billion during the second quarter of 2017. This represents 128% sequential growth, compared to $2.3 billion during the first quarter of 2018.
- Agent count was 11,856 at the end of the second quarter of 2018, an increase of 203%, compared to 3,913 in the second quarter of 2017. This represents 28% sequential growth, compared to 9,290 at the end of the first quarter of 2018. During the early part of the third quarter, the Company made modifications to internal tracking of agent count. This led to a discrepancy in reporting during the month of June. The discrepancy has been identified and remedied and the Company is on track to end the year with an agent count between 16,000 and 20,000. As of July 31, 2018, the number of eXp Realty agents totaled 12,551.
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, a non-GAAP financial measure. We view Adjusted EBITDA as an operating performance measure and, as such, we believe that the GAAP financial measure most directly comparable to it is net income (loss). We define Adjusted EBITDA as net income excluding interest, income taxes, depreciation, amortization, and stock based compensation. We believe that Adjusted EBITDA provides us an important measure of operating performance and enhances comparability while providing investors with useful insight into the underlying trends of the business. Our use of Adjusted EBITDA has limitations as an analytical tool, and this measure should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP, as the excluded items may have significant effects on our operating results and financial condition. Additionally, our measure of Adjusted EBITDA may differ from other companies’ measure of Adjusted EBITDA. When evaluating our performance, Adjusted EBITDA should be considered with other financial performance measures, including various cash flow metrics, net income and other GAAP results. In the future, we may disclose different non-GAAP financial measures in order to help our investors and others more meaningfully evaluate and compare our future results of operations to our previously reported results of operations.
About eXp World Holdings
eXp World Holdings, Inc. (NASDAQ: EXPI) is the holding company for eXp Realty, LLC, the largest residential real estate brokerage by geography in North America. eXp Realty (exprealty.com) is changing the way that agents, brokers and consumers work together in an adaptive, sustainable environment. As the leading, national, cloud-based real estate brokerage, eXp Realty provides 24/7 access to collaborative tools, training and socialization for real estate brokers and agents through its virtual campus environment. It is one of the fastest growing real estate brokerage firms in North America operating in 49 U.S. states, the District of Columbia and three Canadian provinces. As a publicly traded company, eXp World Holdings, Inc. uniquely offers real estate professionals within its ranks opportunities to earn company stock for production and contributions to overall company growth.
For more information, please visit the company’s website at www.eXpRealty.com.
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 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.
Reported Consolidated Results
EXP WORLD HOLDINGS, INC. | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(UNAUDITED) | |||||||||
June 30, 2018 | December 31, 2017 | ||||||||
ASSETS | |||||||||
CURRENT ASSETS | |||||||||
Cash and cash equivalents | $ | 15,567,430 | $ | 4,672,034 | |||||
Restricted cash | 2,894,294 | 923,193 | |||||||
Accounts receivable, net of allowance $189,240 and $179,759, respectively | 22,974,140 | 6,912,657 | |||||||
Prepaids and other assets | 679,465 | 591,034 | |||||||
TOTAL CURRENT ASSETS | 42,115,329 | 13,098,918 | |||||||
OTHER ASSETS | |||||||||
Fixed assets, net | 1,978,362 | 1,538,213 | |||||||
TOTAL OTHER ASSETS | 1,978,362 | 1,538,213 | |||||||
TOTAL ASSETS | $ | 44,093,691 | $ | 14,637,131 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
CURRENT LIABILITIES | |||||||||
Accounts payable | $ | 1,022,514 | $ | 635,087 | |||||
Customer deposits | 2,894,294 | 923,193 | |||||||
Accrued expenses | 25,217,704 | 8,818,180 | |||||||
TOTAL CURRENT LIABILITIES | 29,134,512 | 10,376,460 | |||||||
STOCKHOLDERS’ EQUITY | |||||||||
Common Stock, $0.00001 par value 220,000,000 shares authorized; | |||||||||
57,475,022 and 54,962,535 shares issued and outstanding at | |||||||||
June 30, 2018 and December 31, 2017, respectively | 575 | 550 | |||||||
Additional paid-in capital | 60,121,007 | 36,848,041 | |||||||
Accumulated deficit | (45,179,377 | ) | (32,596,374 | ) | |||||
Accumulated other comprehensive income (loss) | 16,974 | 8,454 | |||||||
TOTAL STOCKHOLDERS’ EQUITY | 14,959,179 | 4,260,671 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 44,093,691 | $ | 14,637,131 | |||||
EXP WORLD HOLDINGS, INC. | ||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||
Revenues | $ | 130,542,808 | $ | 38,980,941 | $ | 192,505,339 | $ | 60,509,124 | ||||||||||
Operating expenses | ||||||||||||||||||
Cost of revenues | 118,119,212 | 34,740,874 | 173,820,728 | 53,701,009 | ||||||||||||||
General and administrative | 12,988,835 | 5,692,647 | 28,677,583 | 10,468,528 | ||||||||||||||
Professional fees | 596,781 | 318,383 | 1,189,146 | 682,843 | ||||||||||||||
Sales and marketing | 710,368 | 348,823 | 1,356,165 | 650,045 | ||||||||||||||
Total expenses | 132,415,196 | 41,100,727 | 205,043,622 | 65,502,425 | ||||||||||||||
Net loss from operations | (1,872,388 | ) | (2,119,786 | ) | (12,538,283 | ) | (4,993,301 | ) | ||||||||||
Other income and (expenses) | ||||||||||||||||||
Interest expense | – | (3,762 | ) | – | (5,477 | ) | ||||||||||||
Total other income and (expenses) | – | (3,762 | ) | – | (5,477 | ) | ||||||||||||
Loss before income tax expense | (1,872,388 | ) | (2,123,548 | ) | (12,538,283 | ) | (4,998,778 | ) | ||||||||||
Income tax expense | (14,270 | ) | (23,747 | ) | (44,720 | ) | (48,338 | ) | ||||||||||
Net loss | $ | (1,886,658 | ) | $ | (2,147,295 | ) | $ | (12,583,003 | ) | $ | (5,047,116 | ) | ||||||
Net loss per share attributable to common shareholders | ||||||||||||||||||
Basic from continuing operations | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.22 | ) | $ | (0.10 | ) | ||||||
Diluted from continuing operations | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.22 | ) | $ | (0.10 | ) | ||||||
Weighted average shares outstanding | ||||||||||||||||||
Basic | 56,877,099 | 52,749,086 | 56,427,515 | 52,583,658 | ||||||||||||||
Diluted | 56,877,099 | 52,749,086 | 56,427,515 | 52,583,658 | ||||||||||||||
US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION |
|||||||||||||||||||
Quarter to Date |
|||||||||||||||||||
Adjusted EBITDA Reconciliation, QTD | Mar-17 | Jun-17 | Sep-17 | Dec-17 | Mar-18 | Jun-18 | |||||||||||||
Net Income / (Loss) | $ | (2,899,821 | ) | $ | (2,147,296 | ) | $ | (5,314,737 | ) | $ | (11,769,111 | ) | $ | (10,696,345 | ) | $ | (1,886,658 | ) | |
Interest | 1,715 | 3,762 | 58 | (3,458 | ) | – | – | ||||||||||||
Taxes | 24,591 | 23,747 | 3,277 | 45,619 | 30,450 | 14,270 | |||||||||||||
Depreciation & Amortization | 13,265 | 81,437 | 112,487 | 146,040 | 183,321 | 147,558 | |||||||||||||
Stock Compensation | 646,232 | 757,145 | 2,357,877 | 7,200,377 | 8,279,109 | 3,989,602 | |||||||||||||
Stock Option (benefit) | 1,467,735 | 1,126,195 | 1,971,394 | 2,290,705 | 1,301,702 | 1,181,969 | |||||||||||||
Agent equity program | |||||||||||||||||||
Adjusted EBITDA | (746,283 | ) | (155,010 | ) | (869,644 | ) | (2,089,829 | ) | (901,763 | ) | 3,446,741 |
In prior quarters, when disclosing adjusted EBITDA, the Company included non-cash expenses related to its Agent Equity Program (AEP), a program whereby the Company grants awards of the Company’s common stock to agents for meeting certain achievements. Including the expense related to the AEP was incorrect and, as such, it has been excluded from the US-GAAP Net Income (Loss) To Adjusted EBITDA Reconciliation table above, resulting in a reduction to adjusted EBITDA as reported in the first quarter of 2018.
Connect with eXp Realty and eXp World Holdings:
- Facebook – Canada, United States, investor relations
- Twitter – United States, investor relations
- LinkedIn – Canada and United States
Media Relations Contact:
Cynthia Nowak
Vice president of marketing and communications, eXp Realty
360.419.5285 ext. 116
[email protected]
Investor Relations Contact:
Greg Falesnik
Managing director, MZ Group – MZ North America
949.385.6449
[email protected]
The post eXp World Holdings Reports Record Second Quarter 2018 Results appeared first on eXp World Holdings.
İstanbul ataşehir bölgesine vozol ve terea satışlarımız mevcuttur. Vozol Atasehir
**”Did you know your website can rank higher on Google with simple backlinks? This message is reaching you as one of over 1 million website owners we’ve targeted to showcase the power of backlinks in driving real traffic and boosting visibility!Starting at just $20, we provide proven strategies that deliver results. Special Offer: Get 100K backlinks for only 100 USDT (crypto discount)! Ready to grow your audience? Let’s get started!”**
İstanbul ataşehir bölgesine vozol ve terea satışlarımız mevcuttur. Vozol Atasehir
Ataşehir vozol satış noktası. Vozol satın al. Ataşehir vozol
Simply desire to say your article is as surprising. The clearness in your post is simply excellent and i could assume you are an expert on this subject. Fine with your permission let me to grab your feed to keep up to date with forthcoming post. Thanks a million and please carry on the gratifying work.
obviously like your web-site but you need to test the spelling on quite a few of your posts. Several of them are rife with spelling problems and I to find it very troublesome to inform the reality on the other hand I’ll certainly come back again.
Somebody essentially lend a hand to make significantly posts I might state. That is the very first time I frequented your web page and up to now? I surprised with the research you made to create this particular put up amazing. Excellent job!
I have been surfing online more than 3 hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. In my opinion, if all web owners and bloggers made good content as you did, the web will be much more useful than ever before.
What i do not realize is in fact how you are no longer actually much more well-favored than you might be right now. You’re very intelligent. You recognize thus considerably in relation to this topic, made me in my view believe it from numerous numerous angles. Its like men and women are not fascinated until it is one thing to do with Lady gaga! Your own stuffs excellent. All the time handle it up!
For Bisexual News visit… Bisexual News
Hi, i think that i saw you visited my web site thus i came to ?eturn the favor텶 am attempting to find things to improve my web site!I suppose its ok to use some of your ideas!!
This blog post is a goldmine of information! I’ve bookmarked it so I can refer back to it whenever I need a refresher on the topic.
I’ve never commented on a blog post before, but I couldn’t resist after reading yours. It was just too good not to!
Thank you for the auspicious writeup. It in fact was a amusement account it. Look advanced to more added agreeable from you! By the way, how could we communicate?
Hi my family member! I want to say that this post is awesome, nice written and come with approximately all significant infos. I would like to peer extra posts like this.
Hello, Neat post. There’s an issue together with your site in internet explorer, would check this텶E still is the marketplace chief and a large element of other folks will leave out your magnificent writing due to this problem.
Usually I do not read article on blogs, however I would like to say that this write-up very compelled me to take a look at and do so! Your writing taste has been amazed me. Thanks, quite nice post.
I do trust all the ideas you’ve presented in your post. They are really convincing and will definitely work. Nonetheless, the posts are too short for newbies. May just you please lengthen them a bit from next time? Thank you for the post.
Hi, Neat post. There’s an issue together with your web site in internet explorer, may test this텶E still is the marketplace chief and a good component of people will pass over your fantastic writing due to this problem.
Its like you read my mind! You appear to know a lot about this, like you wrote the book in it or something. I think that you could do with some pics to drive the message home a little bit, but instead of that, this is fantastic blog. An excellent read. I will certainly be back.
Influencer pazarlama ile ilgili örnekleriniz çok ilham verici. Markaların sosyal medya üzerinde büyük kitlelere ulaşmasını sağlamak için doğru influencer’larla işbirliği yapmak büyük fırsatlar yaratabilir.
Excellent blog here! Also your website loads up very fast! What web host are you using? Can I get your affiliate link to your host? I wish my web site loaded up as quickly as yours lol
Wow, amazing blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your web site is magnificent, as well as the content!
Your blog post was the highlight of my day. Thank you for brightening my inbox with your thoughtful insights.
This post was a pleasure to read. So informative and well-organized. Can’t wait for your next one!
Your blog post was like a warm hug on a cold day. Thank you for spreading positivity and kindness through your words.
Thank you for sharing your expertise on this subject. Your blog post has given me a whole new perspective and plenty of food for thought.
Otoriter sitelerden tanıtım yazısı almak için hemen ziyaret et. Seojen Bilişim
As someone who’s new to this topic, your blog post was incredibly informative. Thank you for breaking it down in such an easy-to-understand way.
Son Dakika Haberleri, Haber Turkey
Grafik tasarım hizmeti arayanlara özel… Salus Medya
Your writing has a way of making complex topics seem approachable. Thank you for demystifying this subject for me.
Your blog post was like a ray of sunshine on a cloudy day. Thank you for brightening my mood!
Your blog post was like a ray of sunshine on a cloudy day. Thank you for brightening my mood!
Your blog post was like a crash course in [topic]. I feel like I learned more in five minutes than I have in months of studying.
I’ve never commented on a blog post before, but I couldn’t resist after reading yours. It was just too good not to!
I just wanted to say how much I enjoyed reading your blog post. It’s rare to find such well-researched content that’s also a pleasure to read.
Spor Habeleri,Güncel Haberler, Sondakika Haberleri
Your blog post has inspired me to delve deeper into this topic. Thank you for igniting my curiosity!
Spor Habeleri,Güncel Haberler, Sondakika Haberleri
Spor Habeleri,Güncel Haberler, Sondakika Haberleri
Your writing is so eloquent and polished. It’s clear that you’re a true master of your craft.
Spor Habeleri,Güncel Haberler, Sondakika Haberleri
I’ve never commented on a blog post before, but I couldn’t resist after reading yours. It was just too good not to!
You need to take part in a contest for one of the best sites on the internet.
I am going to recommend this website!
Your passion for this topic is contagious! After reading your blog post, I can’t wait to learn more.
Your blog post was exactly what I needed to hear today. Thank you for the gentle reminder to practice self-care.
Your blog post was so relatable – it’s like you were reading my mind! Thank you for putting my thoughts into words.
Esta genial el aporte. Gran aporte de esta web. Un cordial saludo!
Your writing is so eloquent and polished. It’s clear that you’re a true master of your craft.
Thank you for your sharing. I am worried that I lack creative ideas. It is your article that makes me full of hope. Thank you. But, I have a question, can you help me?
bahçelievler bölgesinde ücretsiz su çekimi yapıyoruz arayın görüşelim. şirinevler ücretsiz su çekimi, bahçelievler bedava su çekimi, yayla belediye su çekimi, kocasinan belediye ücretsiz su çekimi numarası belediye ücretsiz su çekimi
Your perspective on this topic is both unique and insightful!
Thanks for the auspicious writeup. It if truth be told used to be a entertainment account it.
Look complicated to far brought agreeable from you!
By the way, how could we communicate?