eXp World Holdings, Inc. (Nasdaq: EXPI), (or the “Company”), the
holding company for eXp Realty®, Virbela, and SUCCESS® Enterprises,
today announced financial results for the third quarter ended Sept.
30, 2021 and announced that the Company’s Board of Directors
declared a cash dividend for Q4 2021 on Oct. 26, 2021. The dividend
is expected to be paid on Nov. 29, 2021 to shareholders of record
on Nov. 15, 2021.
Third Quarter 2021 Financial Highlights as Compared to
the Same Year-ago Quarter:
- Revenue increased 97% to a record
$1.1 billion.
- Gross profit increased 70% to $79.5
million.
- Net income increased 60% to $23.8
million, which included a $12.9 million income tax provision
benefit. Earnings per diluted share increased 50% to $0.15.
- Adjusted EBITDA (a non-GAAP
financial measure) increased 6% to $23.1 million.
- As of Sept. 30, 2021, cash and cash
equivalents totaled $98.1 million, compared to $91.9 million as of
Sept. 30, 2020. The Company repurchased approximately $53.2 million
of common stock during the third quarter of 2021.
- The Company paid a cash dividend
for the third quarter of 2021 of $0.04 per share of common stock on
Aug. 30, 2021.
Management Commentary
“Our global community of real estate professionals continued to
expand significantly in the third quarter, indicating our
agent-centric model is increasingly resonating throughout the
world,” said Glenn Sanford, Founder, Chairman and CEO of eXp World
Holdings. “As we scale, our teams are equipped with value-added
resources to unleash new methods of virtual collaboration and
productivity. Being hyper-focused on feedback from our growing
network of agents enables our successful entry into new verticals
and markets.
“Similarly, we are preparing to launch our residential lending
joint venture, SUCCESS® Lending, with Kind Lending across several
key markets. Building upon technology-driven efficiencies,
community values and leveraging expert loan officers and top eXp
agents, we aim to create a unique mortgage solution that provides a
better homebuying experience. Our focus on innovation and
commitment to our agents, translates to sustainable growth of our
businesses,” concluded Sanford.
“The unique value proposition of our cloud-based brokerage model
continues to attract a significant number of top performing agents
to the eXp platform, as reflected by the record $1.1 billion in
revenue we reported for the third quarter,” said Jeff Whiteside,
CFO and Chief Collaboration Officer of eXp World Holdings.
“The continued success of our core U.S. eXp Realty business has
enabled us to invest and accelerate global expansion, scale our
emerging commercial business, continue our stock buyback program
and to declare another cash dividend payout in the fourth quarter
to shareholders. As we look ahead, we will continue making
strategic investments in technologies that focus on enhancing our
agents’ capabilities, which will further differentiate eXp and
drive long-term growth of our business.”
Third Quarter 2021 Operational Highlights as Compared to
the Same Year-ago Quarter:
- Agents and brokers on the eXp
Realty platform increased 82% to 65,269.
- Residential transaction sides
closed increased 72% to 130,029.
- Residential transaction volume
increased 97% to $46.6 billion.
- eXp Realty expanded into two new
international locations in the third quarter of 2021, including
Panama and Germany.
- Established SUCCESS® Lending, LLC,
a residential lending joint venture with Kind Lending, LLC, and
gained approval to launch the platform in Colorado, Illinois and
Tennessee.
- eXp Realty ended the third quarter
of 2021 with a global Net Promoter Score of 69, a measure of agent
satisfaction, through the Company’s intense focus on the agent
experience.
Third Quarter 2021 Results – Virtual Fireside
Chat
The Company will hold a virtual fireside chat and investor
Q&A with eXp World Holdings Founder and CEO Glenn Sanford, CFO
Jeff Whiteside and eXp Realty CEO Jason Gesing on Wednesday, Nov.
3, 2021 at 8:30 a.m. PT / 11:30 a.m. ET. Justin Ages, Equity
Research Analyst at Berenberg Capital Markets LLC, will moderate
the discussion.
The investor Q&A is open to investors, current shareholders
and anyone interested in learning more about eXp World Holdings and
its companies.
Date: Wednesday, Nov. 3,
2021
Time: 8:30 a.m. PT / 11:30 a.m. ET
Location: EXPI Campus. Join at
https://expworldholdings.com/contact/download/
Livestream: expworldholdings.com/events
About eXp World Holdings, Inc.
eXp World Holdings, Inc. (Nasdaq: EXPI) is the holding company
for eXp Realty®, Virbela and SUCCESS® Enterprises.
eXp Realty is the fastest-growing real estate tech company in
the world with more than 67,000 agents in the United States,
Canada, the United Kingdom, Australia, South Africa, India, Mexico,
Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia,
Spain, Israel, Panama and Germany, and continues to scale
internationally. As a publicly traded company, eXp World Holdings
provides real estate professionals the unique opportunity to earn
equity awards for production goals and contributions to overall
company growth. eXp World Holdings and its businesses offer a full
suite of brokerage and real estate tech solutions, including its
innovative residential and commercial brokerage model, professional
services, collaborative tools and personal development. The
cloud-based brokerage is powered by Virbela, an immersive 3D
platform that is deeply social and collaborative, enabling agents
to be more connected and productive. SUCCESS Enterprises, anchored
by SUCCESS magazine and its related media properties, was
established in 1897 and is a leading personal and professional
development brand and publication.
For more information, visit https://expworldholdings.com.
Use of Non-GAAP Financial
Measures
To provide investors with additional information regarding our
financial results, this press release includes references to
Adjusted EBITDA, which is a non-U.S. GAAP financial measure and may
be different than similarly titled measures used by other
companies. It is presented to enhance investors’ overall
understanding of the company’s financial performance and should not
be considered a substitute for, or superior to, the financial
information prepared and presented in accordance with U.S.
GAAP.
The company’s Adjusted EBITDA provides useful information about
financial performance, enhances the overall understanding of past
performance and future prospects, and allows for greater
transparency with respect to a key metric used by management for
financial and operational decision-making. Adjusted EBITDA helps
identify underlying trends in the business that otherwise could be
masked by the effect of the expenses that are excluded in Adjusted
EBITDA. In particular, the company believes the exclusion of stock
and stock option expenses, provides a useful supplemental measure
in evaluating the performance of operations and provides better
transparency into results of operations.
The company defines the non-U.S. GAAP financial measure of
Adjusted EBITDA to mean net income (loss), excluding other income
(expense), income tax benefit (expense), depreciation,
amortization, impairment charges, stock-based compensation expense,
and stock option expense. Adjusted EBITDA may assist investors in
seeing financial performance through the eyes of management, and
may provide an additional tool for investors to use in comparing
core financial performance over multiple periods with other
companies in the industry.
Adjusted EBITDA should not be considered in isolation from, or
as a substitute for, financial information prepared in accordance
with U.S. GAAP. There are a number of limitations related to the
use of Adjusted EBITDA compared to Net Income (Loss), the closest
comparable U.S. GAAP measure. Some of these limitations are
that:
- Adjusted EBITDA excludes stock-based
compensation expense and stock option expense, which have been, and
will continue to be for the foreseeable future, significant
recurring expenses in the business and an important part of the
compensation strategy; and
- Adjusted EBITDA excludes certain
recurring, non-cash charges such as depreciation of fixed assets,
amortization of acquired intangible assets, and impairment charges
related to these long-lived assets, and, although these are
non-cash charges, the assets being depreciated and amortized may
have to be replaced in the future.
US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA
RECONCILIATION |
(In thousands) |
(Unaudited) |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
Net income |
|
$ |
23,814 |
|
|
$ |
14,918 |
|
$ |
65,703 |
|
|
$ |
23,295 |
Other expense, net |
|
|
237 |
|
|
|
80 |
|
|
164 |
|
|
|
163 |
Income tax (benefit) expense |
|
|
(12,884 |
) |
|
|
225 |
|
|
(33,258 |
) |
|
|
295 |
Depreciation and amortization (1) |
|
|
1,694 |
|
|
|
1,005 |
|
|
4,511 |
|
|
|
2,785 |
Stock compensation expense (2) |
|
|
6,817 |
|
|
|
3,711 |
|
|
18,129 |
|
|
|
10,476 |
Stock option expense |
|
|
3,376 |
|
|
|
1,879 |
|
|
9,608 |
|
|
|
4,179 |
Adjusted EBITDA |
|
$ |
23,054 |
|
|
$ |
21,818 |
|
$ |
64,857 |
|
|
$ |
41,193 |
|
|
|
|
|
|
|
|
|
(1) Amortization of stock liability is included in the “Other
expense (income)” line item. |
(2) This includes agent growth incentive stock compensation expense
and stock compensation expense related to business
acquisitions. |
|
|
|
|
|
|
|
|
|
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 economic and social
effects of the COVID-19 pandemic; continued growth of our agent and
broker base; expansion of our residential real estate brokerage
business into foreign markets; demand for remote working and
distance learning solutions and virtual events; development of our
commercial brokerage and our ability to attract commercial real
estate brokers; and revenue growth and financial performance. 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.
Media Relations Contact:
eXp World Holdings, Inc.
mediarelations@expworldholdings.com
Investor Relations Contact:
MZ Group – MZ North America
investors@expworldholdings.com
|
|
|
|
|
|
EXP WORLD HOLDINGS, INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(In thousands, except share amounts) |
|
|
|
|
|
|
|
|
|
September 30,2021 |
|
December 31,2020 |
|
|
|
(Unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
CURRENT ASSETS |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
98,064 |
|
|
$ |
100,143 |
|
|
Restricted cash |
|
|
69,406 |
|
|
|
27,781 |
|
|
Accounts receivable, net of allowance for credit losses of $1,901
and $1,879, respectively |
|
|
129,843 |
|
|
|
76,951 |
|
|
Prepaids and other assets |
|
|
8,828 |
|
|
|
7,350 |
|
|
TOTAL CURRENT ASSETS |
|
|
306,141 |
|
|
|
212,225 |
|
|
Property, plant, and equipment, net |
|
|
13,186 |
|
|
|
7,848 |
|
|
Operating lease right-of-use assets |
|
|
2,639 |
|
|
|
819 |
|
|
Other noncurrent assets |
|
|
3,009 |
|
|
|
- |
|
|
Intangible assets, net |
|
|
7,693 |
|
|
|
8,350 |
|
|
Deferred tax assets, net |
|
|
36,020 |
|
|
|
- |
|
|
Goodwill |
|
|
12,945 |
|
|
|
12,945 |
|
|
TOTAL ASSETS |
|
$ |
381,633 |
|
|
$ |
242,187 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
CURRENT LIABILITIES |
|
|
|
|
|
Accounts payable |
|
$ |
8,555 |
|
|
$ |
3,957 |
|
|
Customer deposits |
|
|
69,406 |
|
|
|
27,781 |
|
|
Accrued expenses |
|
|
110,268 |
|
|
|
62,750 |
|
|
Current portion of long-term payable |
|
|
906 |
|
|
|
1,416 |
|
|
Current portion of lease obligation - operating lease |
|
|
345 |
|
|
|
746 |
|
|
TOTAL CURRENT LIABILITIES |
|
|
189,480 |
|
|
|
96,650 |
|
|
Long-term payable, net of current portion |
|
|
1,736 |
|
|
|
2,876 |
|
|
Long-term lease obligation - operating lease, net of current
portion |
|
|
849 |
|
|
|
74 |
|
|
TOTAL LIABILITIES |
|
|
192,065 |
|
|
|
99,600 |
|
|
EQUITY |
|
|
|
|
|
Common Stock, $0.00001 par value 900,000,000 shares authorized;
153,549,867 issued and 147,537,072 outstanding in 2021; 146,677,786
issued and 144,143,292 outstanding in 2020 |
|
|
1 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
|
347,670 |
|
|
|
218,492 |
|
|
Treasury stock, at cost: 6,012,795 and 2,534,494 shares held,
respectively |
|
(180,097 |
) |
|
|
(37,994 |
) |
|
Accumulated earnings (deficit) |
|
|
20,800 |
|
|
|
(39,162 |
) |
|
Accumulated other comprehensive income |
|
|
187 |
|
|
|
247 |
|
|
Total eXp World Holdings, Inc. stockholders' equity |
|
|
188,561 |
|
|
|
141,584 |
|
|
Equity attributable to noncontrolling interest |
|
|
1,007 |
|
|
|
1,003 |
|
|
TOTAL EQUITY |
|
|
189,568 |
|
|
|
142,587 |
|
|
TOTAL LIABILITIES AND EQUITY |
|
$ |
381,633 |
|
|
$ |
242,187 |
|
|
|
EXP WORLD HOLDINGS, INC. |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
(In thousands, except share amounts and per share
data) |
|
|
(Unaudited) |
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
2021 |
|
|
|
2020 |
|
|
Revenues |
|
$ |
1,110,480 |
|
|
$ |
564,017 |
|
$ |
2,694,200 |
|
|
$ |
1,188,963 |
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
Commissions and other agent-related costs |
|
|
1,030,937 |
|
|
|
517,169 |
|
|
2,481,254 |
|
|
|
1,079,739 |
|
|
General and administrative expenses |
|
|
64,615 |
|
|
|
30,130 |
|
|
171,636 |
|
|
|
82,145 |
|
|
Sales and marketing expenses |
|
|
3,761 |
|
|
|
1,495 |
|
|
8,701 |
|
|
|
3,326 |
|
|
Total operating expenses |
|
|
1,099,313 |
|
|
|
548,794 |
|
|
2,661,591 |
|
|
|
1,165,210 |
|
|
Operating income |
|
|
11,167 |
|
|
|
15,223 |
|
|
32,609 |
|
|
|
23,753 |
|
|
Other expense |
|
|
|
|
|
|
|
|
|
|
Other expense, net |
|
|
239 |
|
|
|
80 |
|
|
159 |
|
|
|
129 |
|
|
Equity in losses of unconsolidated affiliates |
|
|
(2 |
) |
|
|
- |
|
|
5 |
|
|
|
34 |
|
|
Total other expense, net |
|
|
237 |
|
|
|
80 |
|
|
164 |
|
|
|
163 |
|
|
Income before income tax expense |
|
|
10,930 |
|
|
|
15,143 |
|
|
32,445 |
|
|
|
23,590 |
|
|
Income tax (benefit) expense |
|
|
(12,884 |
) |
|
|
225 |
|
|
(33,258 |
) |
|
|
295 |
|
|
Net income |
|
|
23,814 |
|
|
|
14,918 |
|
|
65,703 |
|
|
|
23,295 |
|
|
Net loss attributable to noncontrolling interest |
|
|
7 |
|
|
|
52 |
|
|
14 |
|
|
|
115 |
|
|
Net income attributable to eXp World Holdings, Inc. |
|
$ |
23,821 |
|
|
$ |
14,970 |
|
$ |
65,717 |
|
|
$ |
23,410 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
0.16 |
|
|
|
0.11 |
|
|
0.45 |
|
|
|
0.17 |
|
|
Diluted |
|
|
0.15 |
|
|
|
0.10 |
|
|
0.42 |
|
|
|
0.16 |
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
146,862,978 |
|
|
|
138,513,465 |
|
|
145,610,008 |
|
|
|
135,207,101 |
|
|
Diluted |
|
|
157,345,924 |
|
|
|
150,917,721 |
|
|
157,838,134 |
|
|
|
147,091,720 |
|
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/e4cce4ca-6d4c-4c24-af20-89ed5a26168c
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