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Jun 30, 2020
eXp World Q2 2020 Earnings Report
Achieved record profitability and revenue growth, driven by agent count and transactions.
Key Takeaways
eXp World Holdings reported its most profitable quarter in history, with net income of $8.3 million. Quarterly revenue grew 33% year-over-year to $354 million due to eXp Realty's agent count and transactions.
Revenue increased 33% to $354 million compared to Q2 2019.
Net income was $8.3 million, or $0.11 per diluted share, compared to a net loss of $2.2 million in Q2 2019.
The number of agents and brokers on the eXp Realty platform increased 54% to 31,091.
Residential transaction sides closed increased approximately 22% to 43,653.
Forward Guidance
eXp World Holdings anticipates continued revenue growth, agent addition, and expansion in commercial real estate and international markets.
Positive Outlook
- Revenue is expected to continue to grow year over year in the third and fourth quarters of 2020 due to anticipated growth in home transaction sides and commission revenue in eXp Realty.
- eXp Realty expects to continue to add agents at levels above what competing national brokerages experience.
- eXp Realty’s strategic focus on international growth will intensify, with plans to launch operations in five new countries in the second half of 2020.
- eXp intends to aggressively expand presence in commercial real estate by attracting a significant number of commercial real estate brokers to join the company in the next twelve months as a result of a strategic initiative.
- Affiliated services businesses in mortgage, title and iBuying are anticipated to become complementary contributors to growth in the coming year.
Challenges Ahead
- The presence and influence of COVID-19 to linger.
- Difficulty of keeping expense growth at modest levels while increasing revenues.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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