Results Show Record Revenue of $583.8 million — a YoY Increase of 115%
Record results and agent growth have been a constant drumbeat for eXp World Holdings over the years and once again, eXp has exceeded numbers on both fronts as results for Q1 2021 have been announced. (See press release here.)
Noteworthy accomplishments include eXp’s continued international expansion as four countries and territories were added in Q1, including Puerto Rico, Brazil, Italy and Hong Kong. Additionally, eXp Commercial continues to expand its operations and strategic development with its announced partnership with data and insights expert Reonomy. Additionally, eXp executed a 2-for-1 stock split on January 19. All of this has attracted awards for the company, including landing on Glassdoor’s “Best Places for Work” list for four consecutive years, and being named the No. 1 Independent Brokerage in 2021 by RealTrends.
As a result of this activity and continued momentum, eXp had a robust first quarter 2021, as revenue increased 115% as compared to a year ago at this same time and agent growth rose by 77% year-over-year.
“As one of the fastest-growing real estate brokerages in the world, we are making considerable progress with gaining market share in the U.S. and globally, having grown our agent base 77% year-over-year to exceed the 50,000-agent milestone in the quarter,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings.
“Our record first quarter revenue and profitability is a direct result of agents finding success leveraging eXp’s unique brokerage model. Not only are we experiencing an acceleration in the number of agents joining eXp, but the agents we are attracting have proved to be increasingly productive and our Net Promoter Score continues to climb.”
Financial Highlights From First Quarter 2021:
- Revenue increased 115% to a record $583.8 million in the first quarter of 2021, compared to $271.4 million in the same year-ago quarter.
- Gross profit increased 91% to $53.5 million in the first quarter of 2021, compared to $28.0 million in the same year-ago quarter.
- Net income increased 3,348% to $4.8 million in the first quarter of 2021, compared to $0.1 million in the same year-ago quarter.
- Adjusted EBITDA (a non-GAAP financial measure) increased 159% to $14.8 million in the first quarter of 2021, compared to $5.7 million in the same year-ago quarter.
- Operating cash flow (a non-GAAP financial measure) increased 184% to $40.6 million in the first quarter of 2021, compared to $14.3 million in the same year-ago quarter.
- As of March 31, 2021, cash and cash equivalents totaled $104.4 million, compared to $44.3 million as of March 31, 2020. The Company repurchased approximately $34.0 million of common stock during the first quarter of 2021.
Operational Highlights From First Quarter 2021:
- Agents and brokers on the eXp Realty platform increased 77% to 50,333 at the end of the first quarter of 2021, compared to 28,449 at the end of the first quarter of 2020.
- Residential and commercial transaction sides closed increased 95% to 73,878 in the first quarter of 2021, compared to 37,882 in the same year-ago quarter.
- Residential and commercial transaction volume closed increased 123% to $24.5 billion in the first quarter of 2021, compared to $11.0 billion in the same year-ago quarter.
- eXp Realty expanded into four new international locations and territories in the first quarter of 2021, including Puerto Rico, Brazil, Italy, and Hong Kong. Subsequent to the end of the first quarter, the Company successfully launched in Colombia, and announced plans to establish operations in Spain and Israel by the end of the second quarter of 2021.
- eXp Realty ended the first quarter of 2021 with a 73 global Net Promoter Score, a measure of agent satisfaction, through the Company’s intense focus on the agent experience. This compares to a 70 global Net Promoter Score at the end of the first quarter of 2020.
“Our substantial year-over-year increases in revenue and cash flow generation were driven by industry-leading agent growth and sustained transaction volume,” said Jeff Whiteside, CFO and Chief Collaboration Officer of eXp World Holdings. “Beyond the inherent advantages of our agent compensation model, our tech-enabled offerings are increasingly contributing to our competitive position by enabling our company to scale at a rapid pace. We have strong execution against our domestic growth strategy while continuing to launch new international markets and expanding our commercial brokerage business that lends well to our overall model.”
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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.
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