Real Estate

eXp World Holdings Reports Record Third Quarter 2022

November 2, 2022

203

Q3 2022 Revenue Increased 12% Year over Year to $1.2 Billion With Agent Growth of 30%

Company Declares Cash Dividend for This fall 2022 of $0.045 per Share of Common Stock

Repurchases Approximately $60 Million of Common Stock During the Third Quarter

BELLINGHAM, Wash., Nov. 02, 2022 (GLOBE NEWSWIRE) — eXp World Holdings, Inc. (Nasdaq: EXPI) (or the “Company”), the holding firm for eXp Realty^®, Virbela and SUCCESS^® Enterprises, right this moment introduced monetary outcomes for the third quarter ended Sept. 30, 2022.

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

Revenue elevated 12% to $1.2 billion.
Gross revenue elevated 17% to $93.1 million.
Net earnings of $4.4 million, in comparison with internet earnings of $23.8 million within the year-ago quarter. Earnings per diluted share of $0.03, in comparison with earnings per diluted share of $0.15 within the year-ago quarter.
Adjusted EBITDA (a non-GAAP monetary measure) of $12.3 million.
As of Sept. 30, 2022, money and money equivalents totaled $134.5 million, in comparison with $98.1 million as of Sept. 30, 2021. The Company repurchased roughly $59.8 million of frequent inventory through the third quarter of 2022.
The Company paid a money dividend for the third quarter of 2022 of $0.045 per share of frequent inventory on Aug. 29, 2022. On Oct. 27, 2022, the Company’s Board of Directors declared a money dividend of $0.045 per share of frequent inventory for the fourth quarter of 2022, anticipated to be paid on Nov. 28, 2022 to stockholders of document on Nov. 14, 2022.

Management Commentary

“We continue to grow revenue and gain market share despite an increasingly challenging market,” stated Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings. “The third quarter reflects eXp’s resilient model and ability to grow through any market. We continued to strengthen our agent value proposition with new services, including Revenos and eXp Luxury as well as initiatives led by SUCCESS^®, SUCCESS Health™ and SUCCESS Coaching™.”

He continued, “Our scale enables us to provide a differentiated platform for agents with the extensive resources and tools they need to be successful, both professionally and personally. eXp continues to be an attractive model for leading teams and independent brokerages and we were pleased to welcome several during the quarter, helping drive agent count to over 85,000 today.”

“eXp delivered a record third quarter with 12% revenue growth and continued to deliver positive cash flow and earnings, reflecting the agility of our business model,” stated Jeff Whiteside, CFO and Chief Collaboration Officer of eXp World Holdings. “We continue to gain market share and drive growth while focusing on increasing operating efficiencies for our business and our agents. Our industry-leading efficiency enables us to be the most agent-centric brokerage on the planet and positions us to increase our market leadership in a changing landscape. As we head into a seasonally slower quarter, we remain confident in our ability to deliver market share growth over the long term.”

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

eXp Realty named Michael Valdes Chief Growth Officer.
SUCCESS Enterprises strengthened its management group, appointing Courtney Keating as Chief Operating Officer along with her function as Chief Marketing Officer, eXp World Holdings; and welcoming Tristan Ahumada as Chief Marketing Officer, SUCCESS.
Agents and brokers on the eXp Realty platform elevated 30% to 84,911 as of Sept. 30, 2022.
Real property transactions closed elevated 6% to 138,354.
Real property transaction quantity elevated 8% to $50.4 billion.
eXp Realty expanded into Chile and Poland within the third quarter of 2022.
eXp Realty introduced new service choices together with Revenos™, to ship high-quality purchaser and vendor referrals for eXp Realty brokers; eXp Solutions, a market for brokers and their purchasers; eXp Luxury, enhanced customer support choices and luxurious capabilities; and eXp Referral Division, to allow brokers who wish to focus solely on constructing their referral business.
SUCCESS Enterprises launched SUCCESS Health, to supply eXp brokers and shoppers the well being and wellness instruments and assets that assist them excel of their private {and professional} lives.
eXp Realty ended the third quarter of 2022 with a world Net Promoter Score of 71, a measure of agent satisfaction as a part of the Company’s intense give attention to bettering the agent expertise.

Third Quarter 2022 Results – Virtual Fireside Chat

The Company will maintain a digital hearth chat and investor Q&A on Wednesday, Nov. 2, 2022 at 8 a.m. PT / 11 a.m. ET with:

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

The dialogue might be moderated by Tom White, Managing Director and Senior Research Analyst, D. A. Davidson.

The investor Q&A is open to traders, present shareholders and anybody all for studying extra about eXp World Holdings and its corporations.

Date: Wednesday, Nov. 2, 2022

Time: 8 a.m. PT / 11 a.m. ET

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

Livestream: expworldholdings.com/occasions

About eXp World Holdings, Inc.

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

eXp Realty is the fastest-growing actual property firm on this planet with greater than 85,000 brokers within 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, Greece, New Zealand, Chile, and Poland and continues to scale internationally. As a publicly traded firm, eXp World Holdings offers actual property professionals the distinctive alternative to earn fairness awards for manufacturing objectives and contributions to general firm development. eXp World Holdings and its companies provide a full suite of brokerage and actual property tech options, together with its modern residential and industrial brokerage mannequin, skilled companies, collaborative instruments and private growth. The cloud-based brokerage is powered by Virbela, an immersive 3D platform that’s deeply social and collaborative, enabling brokers to be extra related and productive. SUCCESS^® Enterprises, anchored by SUCCESS^® journal and its associated media properties, was established in 1897 and is a number one private {and professional} growth model and publication.

For extra data, go to https://expworldholdings.com.

Use of Non-GAAP Financial Measures

To present traders with extra data relating to our monetary outcomes, this press launch consists of references to Adjusted EBITDA, which is a non-U.S. GAAP monetary measure and could also be completely different than equally titled measures utilized by different corporations. It is offered to reinforce traders’ general understanding of the corporate’s monetary efficiency and shouldn’t be thought of an alternative choice to, or superior to, the monetary data ready and offered in accordance with U.S. GAAP.

The firm’s Adjusted EBITDA offers helpful details about monetary efficiency, enhances the general understanding of previous efficiency and future prospects, and permits for better transparency with respect to a key metric utilized by administration for monetary and operational decision-making. Adjusted EBITDA helps determine underlying traits within the business that in any other case could possibly be masked by the impact of the bills which might be excluded in Adjusted EBITDA. In specific, the corporate believes the exclusion of inventory and inventory possibility bills offers a helpful supplemental measure in evaluating the efficiency of operations and offers higher transparency into outcomes of operations.

The firm defines the non-U.S. GAAP monetary measure of Adjusted EBITDA to imply internet earnings (loss), excluding different earnings (expense), earnings tax profit (expense), depreciation, amortization, impairment fees, stock-based compensation expense, and inventory possibility expense. Adjusted EBITDA might help traders in seeing monetary efficiency by the eyes of administration, and will present an extra software for traders to make use of in evaluating core monetary efficiency over a number of durations with different corporations within the business.

Adjusted EBITDA shouldn’t be thought of in isolation from, or as an alternative choice to, monetary data ready in accordance with U.S. GAAP. There are a variety of limitations associated to the usage of Adjusted EBITDA in comparison with Net Income (Loss), the closest comparable U.S. GAAP measure. Some of those limitations are that:

Adjusted EBITDA excludes stock-based compensation expense and inventory possibility expense, which have been, and can proceed to be for the foreseeable future, important recurring bills within the business and an necessary a part of the compensation technique; and
Adjusted EBITDA excludes sure recurring, non-cash fees reminiscent of depreciation of fastened belongings, amortization of acquired intangible belongings, and impairment fees associated to those long-lived belongings, and, though these are non-cash fees, the belongings being depreciated and amortized might have to get replaced sooner or later.

Safe Harbor Statement

The statements contained herein might embrace statements of future expectations and different forward-looking statements which might be primarily based on administration’s present views and assumptions and contain recognized and unknown dangers and uncertainties that might trigger precise outcomes, efficiency or occasions to vary materially from these expressed or implied in such statements. Such forward-looking statements converse solely as of the date hereof, and the corporate undertakes no obligation to revise or replace them. These statements embrace, however will not be restricted to, statements in regards to the continued development of our agent and dealer base; growth of our residential actual property brokerage business into overseas markets; and income development and monetary efficiency. Such statements will not be ensures of future efficiency. Important components that will trigger precise outcomes to vary materially and adversely from these expressed in forward-looking statements embrace adjustments in business or different market circumstances; the problem of preserving expense development at modest ranges whereas rising revenues; and different dangers detailed occasionally within the firm’s Securities and Exchange Commission filings, together with however not restricted to probably the most just lately filed Quarterly Report on Form 10-Q and Annual Report on Form 10-Okay.

Media Relations Contact:

eXp World Holdings, Inc.

[email protected]

Investor Relations Contact:

Denise Garcia

Managing Partner, Hayflower Partners

[email protected]


EXP WORLD HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In 1000’s, besides share quantities)

	September 30, 2022			December 31, 2021
	(Unaudited)
ASSETS
CURRENT ASSETS
Cash and money equivalents	$	134,545		$	108,237
Restricted money		52,652			67,673
Accounts receivable, internet of allowance for credit score losses of $2,786 and $2,198, respectively		119,822			133,489
Prepaids and different belongings		13,167			9,916
TOTAL CURRENT ASSETS		320,186			319,315
Property, plant, and tools, internet		17,689			15,902
Operating lease right-of-use belongings		2,217			2,482
Other noncurrent belongings		1,614			2,827
Intangible belongings, internet		8,975			7,528
Deferred tax belongings		63,672			52,827
Goodwill		26,514			12,945
TOTAL ASSETS	$	440,867		$	413,826
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$	9,911		$	7,158
Customer deposits		52,652			67,673
Accrued bills		117,605			111,672
Current portion of lease obligation – working lease		202			311
TOTAL CURRENT LIABILITIES		180,370			186,814
Long-term payable		2,714			2,714
Long-term lease obligation – working lease, internet of present portion		720			765
TOTAL LIABILITIES		183,804			190,293
EQUITY
Common Stock, $0.00001 par worth 900,000,000 shares approved; 168,562,464 issued and 152,702,078 excellent in 2022; 155,516,284 issued and 148,764,592 excellent in 2021		2			1
Additional paid-in capital		567,594			401,479
Treasury inventory, at price: 15,860,386 and 6,751,692 shares held, respectively		(344,844	)		(210,009	)
Accumulated earnings		34,616			30,510
Accumulated different complete earnings (loss)		(1,474	)		188
Total eXp World Holdings, Inc. stockholders’ fairness		255,894			222,169
Equity attributable to noncontrolling curiosity		1,169			1,364
TOTAL EQUITY		257,063			223,533
TOTAL LIABILITIES AND EQUITY	$	440,867		$	413,826

EXP WORLD HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In 1000’s, besides share quantities and per share knowledge)
(Unaudited)
	Three Months Ended September 31,						Nine Months Ended September 31,
		2022			2021			2022			2021
Revenues	$	1,238,975		$	1,110,480		$	3,664,766		$	2,694,200
Operating bills
Commissions and different agent-related prices		1,145,853			1,030,937			3,380,930			2,481,254
General and administrative bills		89,460			64,615			256,173			171,636
Sales and advertising bills		3,636			3,761			11,546			8,701
Total working bills		1,238,949			1,099,313			3,648,649			2,661,591
Operating earnings		26			11,167			16,117			32,609
Other (earnings) expense
Other (earnings) expense, internet		(78	)		239			394			159
Equity in (earnings) losses of unconsolidated associates		329			(2	)		1,213			5
Total different (earnings) expense, internet		251			237			1,607			164
Income (loss) earlier than earnings tax expense		(225	)		10,930			14,510			32,445
Income tax profit		(4,627	)		(12,884	)		(8,115	)		(33,258	)
Net earnings		4,402			23,814			22,625			65,703
Net earnings attributable to noncontrolling curiosity		–			7			18			14
Net earnings attributable to eXp World Holdings, Inc.	$	4,402		$	23,821		$	22,643		$	65,717
Earnings per share
Basic		0.03			0.16			0.15			0.45
Diluted		0.03			0.15			0.14			0.42
Weighted common shares excellent
Basic		151,826,315			146,862,978			150,622,845			145,610,008
Diluted		155,915,307			157,345,924			156,434,440			157,838,134

EXP WORLD HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In 1000’s)
(Unaudited)

	Nine Months Ended September 31,
		2022			2021
OPERATING ACTIVITIES
Net earnings	$	22,625		$	65,703
Reconciliation of internet earnings to internet money supplied by working actions:
Depreciation expense		5,699			3,572
Amortization expense – intangible belongings		1,455			939
Loss on dissolution of consolidated associates		361			–
Allowance for credit score losses on receivables/dangerous debt on receivables		588			22
Equity in lack of unconsolidated associates		1,213			5
Agent development incentive inventory compensation expense		22,828			18,129
Stock possibility compensation		10,872			9,608
Agent fairness inventory compensation expense		131,230			101,691
Deferred earnings taxes, internet		(10,845	)		(36,020	)
Changes in working belongings and liabilities:
Accounts receivable		13,603			(52,913	)
Prepaids and different belongings		(3,003	)		(1,510	)
Customer deposits		(16,135	)		41,625
Accounts payable		1,952			4,597
Accrued bills		4,770			44,561
Long time period payable		–			(150	)
Other working actions		111			(1,446	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		187,324			198,413
INVESTING ACTIVITIES
Purchases of property, plant and tools		(9,222	)		(9,159	)
Acquisition of companies, internet of money acquired		(9,668	)		(1,500	)
Investments in unconsolidated associates		–			(3,004	)
NET CASH (USED IN) INVESTING ACTIVITIES		(18,890	)		(13,663	)
FINANCING ACTIVITIES
Repurchase of frequent inventory		(139,635	)		(142,103	)
Proceeds from train of choices		2,221			2,695
Transactions with noncontrolling pursuits		(425	)		19
Dividends declared and paid		(18,537	)		(5,755	)
NET CASH USED IN FINANCING ACTIVITIES		(156,376	)		(145,144	)
Effect of adjustments in trade charges on money, money equivalents and restricted money		(771	)		(60	)
Net change in money, money equivalents and restricted money		11,287			39,546
Cash, money equivalents and restricted money, starting steadiness		175,910			127,924
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE	$	187,197		$	167,470
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
Cash paid for curiosity
Cash paid for earnings taxes	$	2,933		$	1,060
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Termination of lease liabilities		–			346
Issuance of treasury inventory, for acquisition		4,800			–
Lease liabilities arising from acquiring right-of-use belongings		–			2,381
Property, plant and tools purchases in accounts payable		20			150

US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION
(In 1000’s)
(Unaudited)
	Three Months Ended September 31,						Nine Months Ended September 31,
		2022			2021			2022			2021
Net earnings	$	4,402		$	23,814		$	22,625		$	65,703
Other expense, internet		251			237			1,607			164
Income tax profit		(4,627	)		(12,884	)		(8,115	)		(33,258	)
Depreciation and amortization⁽¹⁾		2,767			1,694			7,154			4,511
Stock compensation expense⁽²⁾		5,800			6,817			22,828			18,129
Stock possibility expense		3,756			3,376			10,872			9,608
Adjusted EBITDA	$	12,349		$	23,054		$	56,971		$	64,857

⁽¹⁾Amortization of inventory legal responsibility is included within the “Other expense (income)” line merchandise.
⁽²⁾This consists of agent development incentive inventory compensation expense and inventory compensation expense associated to business acquisitions.