Agent Count Grows as eXp Reports $9.4M Net Income for Q2 2023
Despite challenging market conditions, eXp World Holdings continues to make strides, reporting positive year-over-year agent growth as well as positive net income. (Read the press release here.)
Among the good news is eXp reported a positive net income of $9.4 million and grew its agent count by 7%. Additionally, the company announced a cash dividend for Q3 2023 of $0.05 per share of common stock and International Realty revenue increased by a record 35%.
“We are raising the bar on what it means to be the most agent-centric brokerage on the planet by constantly iterating our agent value proposition that delivers the best support and tools,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings. “Our agents’ feedback is critical in helping to determine and enhance programs. We have prioritized agent support through our reimagined eXpert Care Desk, which provides live support to agents 24/7. And in May, we launched Luna, the GPT-4 powered generative AI support agent, in direct response to their NPS feedback. We are seeing remarkable adoption and engagement, with 42% of agents using the service and the average number of questions up 70% month over month.
“By consistently acting on our agent feedback, we are seeing strengthened agent Net Promoter Scores (aNPS), with second quarter aNPS up four percentage points year over year despite the challenging market.”
Q2 Highlights Compared to Same Year-Ago Quarter:
- Revenue decreased 13% to $1.2 billion.
- Gross profit decreased 10% to $96.5 million.
- Net income of $9.4 million. Earnings per diluted share of $0.06 compared to earnings per diluted share of $0.06 in the year-ago quarter.
- Adjusted EBITDA (a non-GAAP financial measure) of $24.7 million.
- As of June 30, 2023, cash and cash equivalents totaled $124.7 million, compared to $134.9 million as of June 30, 2022. The company repurchased approximately $48.8 million of common stock during the second quarter of 2023.
- The Company paid a cash dividend for the second quarter of 2023 of $0.045 per share of common stock on May 31, 2023. On July 28, 2023, the Company’s Board of Directors declared a cash dividend of $0.05 per share of common stock for the third quarter of 2023, expected to be paid on September 4, 2023 to stockholders of record on August 18, 2023..
- eXp Realty ended the second quarter of 2023 with a global agent Net Promoter Score of 72, up from 68 a year ago. NPS is a measure of agent satisfaction and an important KPI for eXp given the Company’s intense focus on improving the agent experience.
- Agents and brokers on the eXp Realty platform increased 7% to 88,248 as of June 30, 2023.
“We delivered another profitable quarter despite lower transaction volume, as persistently high mortgage rates kept many buyers on the sidelines,” said Jeff Whiteside, CFO and Chief Collaboration Officer of eXp World Holdings. “Even as we continued to fund our key growth priorities and invest in agent-centric innovation, our disciplined focus on expense control resulted in a higher operating margin compared to the prior-year quarter. Our efficient, cloud-based model, strong balance sheet and attractive operating cash flow profile are enabling us to invest aggressively in our agents to drive long-term growth and shareholder value.
“While high mortgage rates are expected to persist in the short term, consumer price inflation has started to cool down in our core North American market, and forward interest rate curves suggest that rates may now be at or near peak levels. We are optimistic that lower mortgage rates will unleash significant pent-up demand as affordability improves and buyers can once again meet seller price objectives.”