Agent Count Continues, Grows 56% Year-over-Year
To say that eXp World Holdings is on a blistering pace is an understatement. The company continues to produce record results on all fronts as financial results for the third quarter 2020 were announced.
eXp World Holdings (Nasdaq: EXPI), the holding company for eXp Realty and Virbela, completed its most profitable quarter ever and recorded its fourth straight quarter of positive net income.
Plus, agents continue to recognize eXp’s extraordinary business model that offers several levers of income, including generous commissions, revenue share and equity awards, helping to drive agent growth by 56% year-over-year.
And all of this in the face of uncertainty around the continued challenges of COVID-19.
“The third quarter of 2020 was highlighted by eXp Realty’s record-breaking financial results, driving the most profitable quarter in the company’s history,” said Founder, Chairman and CEO Glenn Sanford. “Despite unprecedented business restrictions related to COVID-19, our agents continued to perform, providing exceptional service to close a record number of transactions this quarter.”
Some Third Quarter 2020 Highlights:
- Revenue increased by 100% in the third quarter of 2020 to $564 million, compared to $282 million in the third quarter of 2019.
- Gross profit grew 103% to $46.8 million in the third quarter of 2020, compared to $23.0 million in the third quarter of 2019.
- Agent growth increased by 56% to 35,877 at the end of the third quarter of 2020, as compared to 23,034 a year ago.
- Residential transaction sides closed in the third quarter of 2020 increased by approximately 95% to 75,392, compared to 38,567 during the third quarter of 2019.
- Residential transaction volume closed in the third quarter of 2020 increased approximately 112% to $23.6 billion, compared to $11.1 billion during the third quarter of 2019.
- eXp Realty earned a 73 global Net Promoter Score, a measure of agent satisfaction, through an intense focus on the agent experience.
Additionally, the company provided expectations for the fourth quarter, including:
- Fourth-quarter revenue is expected to continue to grow in the double digits year-over-year due to expected growth in home transaction sides and corresponding commission revenue to eXp Realty.
- eXp Realty is expected to continue to experience agent growth notably above the average of competing national real estate brokerages.
- eXp Realty’s plans to complete the launch of its strategic international expansion into South Africa, India and Mexico before the end of 2020.
- eXp intends to further the launch of eXp Commercial with the addition of hundreds of commercial real estate brokers.
A virtual fireside chat to review the earnings was held with World Holdings Founder and CEO Glenn Sanford, CFO Jeff Whiteside, eXp Global President Michael Valdes and MZ Group’s Greg Falesnik. Watch here or click below:
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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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