eXp World Holdings, Inc., the holding company for eXp Realty LLC, recently reported financial results for the first quarter ended March 31, 2017, including the following highlights:
- Revenues in the first quarter of 2017 increased 208 percent to $22.0 million, compared to $7.1 million in the same year-ago quarter. Sequentially, this represents growth of 22 percent when compared to $18.0 million in the fourth quarter of 2016.
- Net loss in the first quarter of 2017 decreased to $0.1 million, or $(0.00) per diluted share, compared to net loss of $0.6 million, or $(0.01) per diluted share in the same year-ago quarter.
- Adjusted EBITDA (a non-GAAP financial measure) remained flat at $0.1 million in the first quarter of 2017, compared to $0.1 million in the same year-ago quarter.
- Agents and brokers on the eXp Realty platform increased 183 percent to 3,118 on March 31, 2017, compared to 1,103 in the same year-ago period. Sequentially, this represents growth of 23 percent when compared to 2,401 agents and brokers on the platform on December 31, 2016. As of May 12, 2017, the number of agents and brokers totaled 3,432.
“The rapid agent growth we experienced in 2016 has continued to accelerate in the first quarter of 2017, which drove record revenues of $22 million,” says Glenn Sanford, founder, CEO and chairman of eXp World Holdings, Inc. “This growth is a testament to the superior agent experience provided by our agent-centric model, which consists of a fully immersive cloud-based office environment, industry best revenue sharing incentives and unique agent-ownership opportunities.
“We expect our agent growth trajectory to continue apace and revenue growth to continue accelerating as we attract ambitious, top-producing agents away from legacy brick and mortar offices and to the eXp platform. We also recently attracted four highly qualified industry veterans to our management team—from firms such as Zillow, DocuSign, Onboard Informatics and Keller Williams—which we believe attests to the increasing prominence of our brokerage and the value proposition we provide.
“As we move forward in 2017, we will continue investing in our core infrastructure to support our growth. The foundation we are building today will allow us to efficiently scale our innovative business model into a much larger, more mature organization, which, ultimately, will create notable value for our shareholders.”
First Quarter 2017 Financial Results
Revenues increased 208 percent to a record $22.0 million in the first quarter of 2017, compared to $7.1 million in the first quarter of 2016. Sequentially, revenues increased 22 percent when compared to revenue of $18.0 million in the fourth quarter of 2016. This growth is a direct result of the increased agent count and corresponding higher revenues realized by the company’s real estate brokerage division, eXp Realty.
In the first quarter of 2017, eXp Realty added 717 agents and brokers to its platform, an increase of 195 percent when compared to 243 agents and brokers added in the first quarter of 2016. This represents a sequential increase of 23 percent when compared to 585 agents added in the fourth quarter of 2016. eXp Realty ended the first quarter of 2017 with 3,118 real estate professionals on its platform across 43 states, the District of Columbia and Alberta, Canada. As of May 12, 2017, eXp Realty had 3,432 agents on its platform.
During the first quarter of 2017, net loss from operations was $43,000, compared to a net loss from operations of $0.6 million in the first quarter of 2016. This improvement was primarily due to higher revenues, resulting from an increasing number of real estate professionals on the eXp platform, as well as a $0.6 million decrease in non-cash expenses.
Adjusted EBITDA (a non-GAAP financial measure) in the first quarter of 2017 totaled $0.1 million, compared to $0.1 million in the first quarter of 2016.
Net loss in the first quarter of 2017 was $(0.1) million, or $(0.00) per diluted share, compared to a net loss of $0.6 million, or $(0.01) per diluted share, in the first quarter of 2016. This improvement was primarily attributed to the aforementioned increase in revenue, as well as a $0.6 million decrease in non-cash expenses.
Cash and cash equivalents as of March 31, 2017 were $1.8 million, compared to $1.7 million as of December 31, 2016. Net operating cash flow in the first quarter of 2017 was $157,000, compared to $(89,000) in the same year-ago quarter.
As of the date of this report, the company’s independent registered public accounting firm has not yet completed their interim review procedures relating to the company’s unaudited consolidated financial statements for the three months ended March 31, 2017.
For more information, please visit www.eXpRealty.com.
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