EXp World Holdings had an excellent first quarter of 2021, according to an earnings release on Thursday. The company grew at all levels while maintaining profitability.
In line with its competitors’ performance in the first quarter, eXp World Holdings (EXPI) had one of its best quarters as a hot real estate market increased its revenue 115 percent year over year to $ 583.3 million.
The company continued to be profitable, if barely, with net income of $ 4.8 million for the quarter – a big jump from Q1 2020 ($ 100,000) when the coronavirus flattened the company’s revenue and sales activity.
“Our record first quarter sales and profitability are a direct result of the continued success of agents utilizing eXp’s unique brokerage model and value proposition,” said Glenn Sanford, founder, chairman and CEO of eXp World Holdings, in a written statement on Thursday. “Not only are we seeing an acceleration in the number of agents joining eXp, but the agents we are attracting have proven increasingly productive and our Net Promoter Score continues to rise.”
The number of agents in the company’s first quarter rose 77 percent annually to 50,333, meaning more than 21,000 new agents have joined the company since the first quarter of last year. EXp agents took advantage of the momentum created in the fourth quarter of 2020. The pages for personal and commercial transactions rose 95 percent year over year to 73,878, representing a closed sales volume of $ 24.5 billion.
The company’s stock was trading at around $ 28.50 per share Thursday morning, far from its 52-week high of $ 90 during a frenzied run-up in February. At the current share price, investors estimate the company at just over $ 4 billion.
EXp doubled its international expansion with new brokers in Puerto Rico, Brazil, Italy, Hong Kong and Colombia. The company plans to start new brokerage businesses in Spain and Israel by the end of the second quarter of 2021.
“Our significant year-over-year revenue and cash flow growth was driven by industry-leading agent growth and continued transaction volume,” said Jeff Whiteside, chief collaboration officer, eXp World Holdings. “Aside from the inherent benefits of our agent compensation model, our engineered offerings are increasingly contributing to our competitive position by enabling our company to scale quickly.”
“As we move forward, we will continue to focus on finding innovative ways for real estate professionals to thrive in the world’s most agent-centric model,” he added.
In addition to adding new international locations, eXp has been busy setting top teams apart from its competitors – fulfilling the company’s agent number strategy outlined at the company’s eXpCON in November. There, the company set the roadmap for 2021 performance, which depended on eXp Global and the launch of several proprietary tech tools.
“We have to say that we will have a lot of fun growing in 2021,” said US growth president Dave Conord, according to a previous Inman article. “We will grow faster next year than in the last four years combined.”
Conord said the company plans to have 100,000 agents by the end of 2021, a goal that Sanford believes the company will achieve through its attractive virtual model and continued technical innovation.
“While the continued strength of the broader real estate market has created a complementary environment for our core businesses, our record results are due to eXp’s commitment to surrounding our agents with an unmatched set of tools and resources that encourage positive engagement,” he said.
“This growth in our cloud-based business is being achieved entirely in our virtual work environment, which is a key differentiator in aggressively scaling our platform internationally, and in the US, where there is a significant opportunity to continue to gain market share.”
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