In the face of challenging real estate conditions in 2023, eXp Realty increased revenue in Q4 and realized a meaningful boost in its agent Net Promoter Score (NPS). These improvements showcase the company’s dedication to its agents which is becoming more pronounced as revealed in its earnings announcements for Q4 and the entire year. (Read the press release here.)
“eXp delivered solid revenue in the fourth quarter, despite continued weakness in the United States residential real estate market, thanks to our global base of highly productive agents,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings. “Our agent-centric model and value proposition, scale and superior efficiency enable us to invest in the success of our agents.
“In fact, agent loyalty, as measured by agent Net Promoter Score (aNPS), reached record levels for both the fourth quarter and full-year 2023. We will continue to iterate on the agent value proposition through our ongoing commitment to agent-centric innovation, with a particular focus on enhancing agent support and reducing time spent on non-revenue-generating, repetitive tasks. From onboarding, to support, to real-time payments and more, we are utilizing next-generation technologies such as artificial intelligence to streamline core business processes to enable our agents to reach their goals faster than ever before.”
Highlights of Q4 and Full-year 2023 Results
Here are some of the highlights of the fourth quarter and full-year 2023 as compared to the same year-ago period:
- Full-year revenue decreased 7% to $4.3 billion in 2023 with revenue of $983 million in the fourth quarter of 2023 – an increase of 5%.
- Full-year gross profit decreased 12% to $324.1 million in 2023 with a gross profit of $70.9 million in the fourth quarter of 2023.
- Full-year net loss of $(9.0) million in 2023 with net loss of $(21.2) million in the fourth quarter of 2023. Fourth quarter net loss included a $9.2 million impairment charge for goodwill and amortizable intangible assets related to the Virbela segment.
- As of Dec. 31, 2023, cash and cash equivalents totaled $126.9 million, compared to $121.6 million as of Dec. 31, 2022.
- Distributed $189.1 million to shareholders in fiscal 2023, including approximately $160.6 million of common stock repurchases and $28.5 million of cash dividends.
- The Company paid a cash dividend for the fourth quarter of 2023 of $0.05 per share of common stock on Nov. 30, 2023. On Feb. 14, 2024, the Company’s Board of Directors declared a cash dividend of $0.05 per share of common stock for the first quarter of 2024, expected to be paid on March 29, 2024 to stockholders of record on March 8, 2024.
- eXp ended the fourth quarter of 2023 with a global agent Net Promoter Score of 77, up from 73 a year ago. aNPS is a measure of agent satisfaction and an important key performance indicator (KPI) given the Company’s intense focus on improving the agent experience.
- Agents and brokers on the eXp Realty platform increased 2% year-over-year to 87,515 as of Dec. 31, 2023.
- Transactions decreased 3% to 494,408 in 2023 and increased 6% year-over-year to 115,424 in the fourth quarter of 2023.
- Transaction volume decreased 10% to $169.2 billion in 2023 and increased 3% year-over-year to $38.9 billion in the fourth quarter of 2023.
- Launched eXp Luxury™ in Australia, New Zealand, South Africa and the United Kingdom on Dec. 7, 2023.
- Announced eXp Luxury™ Soared Past 1,100 members, fueling global growth, on Nov. 21, 2023.
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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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