Last year’s frenzied market proved to be a boon for eXp World Holdings, Inc. (Nasdaq: EXPI), the parent company for eXp Realty, which capped off 2021 with a significant quarterly and annual increase in revenue, according to its latest earnings report.
The company earned $1.1 billion in the fourth quarter of 2021—up 77% from the same period the year prior. It also tallied a 110% increase in earnings for the entire year, raking in a total of $3.8 billion.
The report highlighted an 85% jump in gross profit for 2021, accounting for $296 million. The company tallied an $83.1 million profit in the year’s final three months—up 65% from Q4 2020.
Company executives attributed the quarterly and annual performance to eXp’s emphasis on agent-focused tech solutions that helped drive a massive recruitment push throughout 2021.
“2021 was another year of tremendous growth for eXp, as our core focus on innovation enabled us to welcome nearly 30,000 new agents across six continents to eXp,” said Glenn Sanford, founder, chairman and CEO of eXp World Holdings, in a statement.
During a Feb. 24 earnings call, Sanford noted that the company would look to enhance its value proposition for agents through several initiatives, including eXp’s revenue share program, which shares 50% of its revenue received from each transaction, before expenses are removed, with agents.
“We are enhancing that with profits from our affiliated company services to actually pay out more than 50% of company dollar in 2022 to our agents and brokers who have helped us grow,” he said.
Jason Gesing, CEO of eXp Realty, dove a bit deeper into some of the growth the company experienced on the brokerage side of the business, highlighting the performance of real estate professionals affiliated with the brand.
According to the earnings report, agents and brokers on the eXp Realty platform increased 72% to 71,137. However, during the call, Gesing and Sanford noted that the company surpassed 76,000 agents within the company overall.
“We continue to bring on top performers in all markets, and they come with other folks, so every time someone comes over, people turn heads and they inquire and learn about the company, and ultimately they join,” Gesing said.
In its report, eXp reported that its agents saw a 52% increase in closed real estate transactions during the fourth quarter of 2021. Its agents closed 444,367 transactions for the entire year—an increase of 86% compared to 2020.
Real estate transaction volume also jumped 82% to $44.9 billion in the fourth quarter of 2021 and 116% to $156.1 billion YoY.
“We’ve been able to expand by utilizing our platform,” Gesing said, adding that the company added nine countries to its global footprint.
In 2021, eXp Realty expanded into Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama and Germany. In February, the company will also launch in the Dominican Republic and plans to establish operations in Greece and New Zealand in the first quarter of 2022.
“We’ve done this really without having to get on any planes or visit any of these markets,” Gesing said.
During the call, Gesing also pointed to several of eXp’s efforts to “make agents’ lives easier,” which he claimed helped drive the brokerage’s growth. That included eXp’s eXpert Care Concierge service, which the company noted resolved nearly 300,000 inquiries.
“Going back to 2016 when we crossed 1,000 agents for the first time, we recognized that as important as any other factor, what is going to drive and sustain growth is making sure that we are delivering great experiences for our agents,” Gesing added.
Jordan Grice is RISMedia’s associate online editor. Email him your real estate news to jgrice@rismedia.com.
