Revenue Accelerates to $157.2 Million, 232% Year-over-year Increase
BELLINGHAM, Wash., Nov. 13, 2018 (GLOBE NEWSWIRE) — eXp World Holdings, Inc. (NASDAQ: EXPI), the holding company for eXp Realty, the largest residential real estate brokerage by geography in North America, today announced financial results for the third quarter ended Sept. 30, 2018.
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/2ef12f6e-8c80-4f42-899e-099ee8a0f4fd.
“This quarter we reported our highest quarterly revenue ever of more than $157 million as well as triple-digit-percent increases in transaction sales and volume, all of which are a direct result of our fantastic team of agents, brokers and staff who call eXp Realty home,” said eXp World Holdings, Inc. CEO, Chairman and Founder Glenn Sanford. “I am proud of all the great work everyone at eXp Realty is doing and it is great to see that it has translated into continued measurable, eXponential growth.”
Third Quarter 2018 Financial Summary
- Revenue increased 232 percent in the third quarter, to a record $157.2 million, compared to $47.4 million in the third quarter of 2017. This represents sequential growth of more than 20 percent, compared to $130.5 million in the second quarter of 2018.
- Gross profit grew 157 percent to $11.5 million in the third quarter of 2018, compared to $4.5 million in the third quarter of 2017.
- Net loss was $4.6 million, or $(0.08) per diluted share in the third quarter of 2018, compared to net loss of $5.3 million, or $(0.10) per diluted share, in the third quarter of 2017.
- Adjusted EBITDA (a non-GAAP financial measure) increased to $1.0 million in the third quarter of 2018, compared to ($0.9) million in the third quarter of 2017.
- Cash flow from operations increased to $6.3 million in the third quarter of 2018, compared to $2.1 million in the third quarter of 2017.
Third Quarter 2018 Consolidated Operating and Business Highlights
- The number of agents and brokers on the eXp Realty platform nearly tripled year-over-year, growing to 13,859 at the end of the third quarter of 2018 from 4,952 in the same quarter a year ago. This represents sequential growth of 17 percent, compared to 11,856 at the end of the second quarter of 2018.
- Residential transaction sides closed in the third quarter of 2018 was 23,218, an increase of 211 percent compared to 7,456 during the third quarter of 2017. This represents sequential growth of 17 percent, compared to 19,903 during the second quarter of 2018.
- Residential transaction volume closed in the third quarter of 2018 was $6.2 billion, an increase of 240 percent, compared to $1.8 billion during the third quarter of 2017. This represents sequential growth of 17 percent, compared to $5.3 billion during the second quarter of 2018.
- Founder Glenn Sanford won a 2018 Inman Innovator Award for Most Innovative Broker Owner.
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, a non-GAAP financial measure. We view Adjusted EBITDA as an operating performance measure and, as such, we believe that the GAAP financial measure most directly comparable to it is net income (loss). We define Adjusted EBITDA as net income excluding interest, income taxes, depreciation, amortization, and stock based compensation. We believe that Adjusted EBITDA provides us an important measure of operating performance and enhances comparability while providing investors with useful insight into the underlying trends of the business. Our use of Adjusted EBITDA has limitations as an analytical tool, and this measure should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP, as the excluded items may have significant effects on our operating results and financial condition. Additionally, our measure of Adjusted EBITDA may differ from other companies’ measure of Adjusted EBITDA. When evaluating our performance, Adjusted EBITDA should be considered with other financial performance measures, including various cash flow metrics, net income and other GAAP results. In the future, we may disclose different non-GAAP financial measures in order to help our investors and others more meaningfully evaluate and compare our future results of operations to our previously reported results of operations.
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 company’s expansion, revenue growth, operating results, financial performance and net income changes. 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 Annual Report on Form 10-K.
About eXp World Holdings
eXp World Holdings, Inc. (NASDAQ: EXPI) is the holding company for eXp Realty, LLC, the largest residential real estate brokerage by geography in North America. eXp Realty (exprealty.com) is changing the way that agents, brokers and consumers work together in an adaptive, sustainable environment. As the leading, national, cloud-based real estate brokerage, eXp Realty provides 24/7 access to collaborative tools, training and socialization for real estate brokers and agents through its virtual campus environment. It is one of the fastest growing real estate brokerage firms in North America with more than 14,000 agents in 50 U.S. states, the District of Columbia and three Canadian provinces. As a publicly traded company, eXp World Holdings, Inc. uniquely offers real estate professionals within its ranks opportunities to earn company stock for production and contributions to overall company growth.
For more information, please visit the company’s website at www.eXpRealty.com.
Reported Consolidated Results
| EXP WORLD HOLDINGS, INC. | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (UNAUDITED) | |||||||||
| September 30, 2018 | December 31, 2017 | ||||||||
| ASSETS | |||||||||
| CURRENT ASSETS | |||||||||
| Cash and cash equivalents | $ | 22,093,710 | $ | 4,672,034 | |||||
| Restricted cash | 2,717,187 | 923,193 | |||||||
| Accounts receivable, net of allowance $345,032 and $179,759, respectively | 21,183,291 | 6,912,657 | |||||||
| Prepaids and other assets | 757,540 | 591,034 | |||||||
| TOTAL CURRENT ASSETS | 46,751,728 | 13,098,918 | |||||||
| OTHER ASSETS | |||||||||
| Fixed assets, net | 2,319,415 | 1,538,213 | |||||||
| TOTAL OTHER ASSETS | 2,319,415 | 1,538,213 | |||||||
| TOTAL ASSETS | $ | 49,071,143 | $ | 14,637,131 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
| CURRENT LIABILITIES | |||||||||
| Accounts payable | $ | 1,527,470 | $ | 635,087 | |||||
| Customer deposits | 2,717,187 | 923,193 | |||||||
| Accrued expenses | 21,181,935 | 8,818,180 | |||||||
| TOTAL CURRENT LIABILITIES | 25,426,592 | 10,376,460 | |||||||
| STOCKHOLDERS’ EQUITY | |||||||||
| Common Stock, $0.00001 par value 220,000,000 shares authorized; 58,968,762 and 54,962,535 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 589 | 550 | |||||||
| Additional paid-in capital | 79,195,251 | 36,848,041 | |||||||
| Accumulated deficit | (55,557,542 | ) | (32,596,374 | ) | |||||
| Accumulated other comprehensive income | 6,253 | 8,454 | |||||||
| TOTAL STOCKHOLDERS’ EQUITY | 23,644,551 | 4,260,671 | |||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 49,071,143 | $ | 14,637,131 | |||||
| EXP WORLD HOLDINGS, INC. | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||||||
| Revenues | $ | 157,236,070 | $ | 47,371,745 | $ | 349,741,409 | $ | 107,880,869 | |||||||||||
| Operating expenses | |||||||||||||||||||
| Cost of revenues | 145,740,264 | 42,903,624 | 319,560,992 | 96,604,633 | |||||||||||||||
| General and administrative | 14,769,707 | 9,175,260 | 43,447,290 | 19,643,788 | |||||||||||||||
| Professional fees | 581,723 | 223,811 | 1,770,869 | 906,654 | |||||||||||||||
| Sales and marketing | 774,479 | 380,452 | 2,130,644 | 1,030,497 | |||||||||||||||
| Total expenses | 161,866,173 | 52,683,147 | 366,909,795 | 118,185,572 | |||||||||||||||
| Net loss from operations | (4,630,103 | ) | (5,311,402 | ) | (17,168,386 | ) | (10,304,703 | ) | |||||||||||
| Other income and (expenses) | |||||||||||||||||||
| Interest income (expense) | 9,387 | (58 | ) | 9,387 | (5,535 | ) | |||||||||||||
| Total other income and (expenses) | 9,387 | (58 | ) | 9,387 | (5,535 | ) | |||||||||||||
| Loss before income tax expense | (4,620,716 | ) | (5,311,460 | ) | (17,158,999 | ) | (10,310,238 | ) | |||||||||||
| Income tax expense | (7,455 | ) | (3,277 | ) | (52,175 | ) | (51,615 | ) | |||||||||||
| Net loss | $ | (4,628,171 | ) | $ | (5,314,737 | ) | $ | (17,211,174 | ) | $ | (10,361,853 | ) | |||||||
| Net loss per share attributable to common shareholders | |||||||||||||||||||
| Basic from continuing operations | $ | (0.08 | ) | $ | (0.10 | ) | $ | (0.30 | ) | $ | (0.20 | ) | |||||||
| Diluted from continuing operations | $ | (0.08 | ) | $ | (0.10 | ) | $ | (0.30 | ) | $ | (0.20 | ) | |||||||
| Weighted average shares outstanding | |||||||||||||||||||
| Basic | 58,360,233 | 53,335,822 | 57,069,377 | 52,837,134 | |||||||||||||||
| Diluted | 58,360,233 | 53,335,822 | 57,069,377 | 52,837,134 | |||||||||||||||
| US-GAAP Net Income (Loss) to Adjusted EBITDA Reconciliation | |||||||||||||||||||||
| Adjusted EBITDA Reconciliation, QTD | Mar-17 | Jun-17 | Sep-17 | Dec-17 | Mar-18 | Jun-18 | Sep-18 | ||||||||||||||
| Net Income / (Loss) | $ | (2,899,821 | ) | $ | (2,147,296 | ) | $ | (5,314,737 | ) | $ | (11,769,111 | ) | $ | (10,696,345 | ) | $ | (1,886,658 | ) | $ | (4,628,171 | ) |
| Interest | 1,715 | 3,762 | 58 | (3,458 | ) | – | – | (9,387 | ) | ||||||||||||
| Taxes | 24,591 | 23,747 | 3,277 | 45,619 | 30,450 | 14,270 | 7,455 | ||||||||||||||
| Depreciation & Amortization | 13,265 | 81,437 | 112,487 | 146,040 | 183,321 | 147,558 | 240,031 | ||||||||||||||
| Stock Compensation | 646,232 | 757,145 | 2,357,877 | 7,200,377 | 8,279,109 | 3,989,602 | 4,238,667 | ||||||||||||||
| Stock Option | 1,467,735 | 1,126,195 | 1,971,394 | 2,290,705 | 1,301,702 | 1,181,969 | 1,103,055 | ||||||||||||||
| Adjusted EBITDA | (746,283 | ) | (155,010 | ) | (869,644 | ) | (2,089,829 | ) | (901,763 | ) | 3,446,741 | 951,650 | |||||||||
Connect with eXp Realty and eXp World Holdings:
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CONTACT: Media Relations Contact: Cynthia Nowak Vice president of marketing and communications, eXp Realty 360.419.5285 ext. 116 cynthia.nowak@exprealty.com Investor Relations Contact: Greg Falesnik Managing director, MZ Group – MZ North America 949.385.6449 greg.falesnik@mzgroup.us