SOURCE: eXp World Holdings, Inc.

eXp World Holdings, Inc.

November 15, 2016 12:21 ET

eXp World Holdings, Inc. Reports Record Revenue and Growth for Third Quarter 2016

eXp Realty Drives Revenue Increase of 112%

BELLINGHAM, WA--(Marketwired - November 15, 2016) - eXp World Holdings, Inc. (OTCQB: EXPI), today released its third quarter financial results.

Financial Highlights

  • Revenues were $15.7 million, up 112% from $7.4 million for the 3 months ended September 30, 2016 vs 2015, respectively;
  • Cash and cash equivalents at September 30, 2016 was $944 thousand up 110 % vs September 30, 2015;
  • Net loss attributable to common shareholders of $14.6 million for the 3 months ended September 30, 2016, which was primarily attributable to a $14.1 million non-cash stock option compensation expense;
  • Adjusted net loss attributable to common shareholders was reported at $559 thousand for the 3 months ended September 30, 2016;
  • Total Stockholder's Equity is up 141% to $2.0 million as of September 30, 2016 vs 2015, respectively

The increase in revenue in the third quarter of 2016 is a direct result of the increased sales agent base and higher sales volume realized by the Company's real estate brokerage division, eXp Realty, The Agent-Owned Cloud Brokerage®.

Today, eXp Realty has more than 2,130 real estate professionals across 41 states, The District of Columbia, and Alberta, Canada. As previously reported, agent count for the quarter was up 151% vs the end of Q3 2015.

Glenn Sanford, the Company's Chairman and Chief Executive Officer, commented on the Company's performance, "I am immensely proud of our entire team, from our agents, to our managing brokers, to our leadership and our staff. It continues to be gratifying to know that creating a cloud-based brokerage focused on the agent resonates so clearly that it is reflected in the continued high rate of growth in agent count and revenues. With this level of growth also comes the responsibility to manage that growth so it is sustainable over the long haul. Continually evaluating and investing in the infrastructure and tools necessary to support our growth and ensure scalability of eXp's Realty's business model is a top priority and is a commitment shared at all levels of the organization, from the board, senior leadership and other stakeholders."

Non-GAAP Financial Measurement

Adjusted net loss attributable to common shareholders

The Company has started reporting adjusted net income (loss) attributable to common shareholders. We believe the omission of non-cash income or expense based on fluctuations in the Company's stock price, significantly outside of its control, is more reflective of the key factors that affect our operating performance. Since the equity-linked instruments were issued early in our existence, and there being no further performance requirements associated with earning the awards, we believe that omitting these fluctuations provide a useful supplemental measure in evaluating the performance of our operations and provides better transparency into our results of operations. Our management does not evaluate the Company's performance, either financial or operational, inclusive of fluctuations in the intrinsic value of the awards issued prior becoming a public company.

The following is a reconciliation of adjusted net income (loss) attributable to common shareholders to net income (loss) attributable to common shareholders in accordance with GAAP:

            
  Three Months Ended September 30,   Three Months Ended September 30,   Nine Months Ended September 30,   Nine Months Ended September 30,  
  2016   2015   2016   2015  
                     
Adjusted net income (loss) attributable to common shareholders $(558,757 ) $(10,226 ) $(816,794 ) $(1,018,921 )
Increase (decrease) in intrinsic value  14,088,341    (1,527,334 )  20,456,078    2,478,942  
Net income (loss) attributable to common shareholders $(14,647,098 ) $1,517,108   $(21,272,872 ) $(3,497,863 )
                

About eXp World Holdings, Inc.

eXp World Holdings, Inc. is the holding company for a number of companies most notably eXp Realty LLC, the Agent-Owned Cloud Brokerage®, as a full-service real estate brokerage providing 24/7 access to collaborative tools, training, and socialization for real estate brokers and agents through its 3-D, fully-immersive, cloud office environment. eXp Realty, LLC and eXp Realty of Canada, Inc. also feature an aggressive revenue sharing program that pays agents a percentage of gross commission income earned by fellow real estate professionals who they attract into the Company.

As a publicly-traded company, eXp World Holdings, Inc. uniquely offers professionals within its ranks opportunities to earn equity awards for production and contributions to overall company growth.

For more information you can follow eXp World Holdings, Inc. on Twitter, LinkedIn, Facebook, YouTube, or visit eXpWorldHoldings.com. For eXp Realty please visit: eXpRealty.com.

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.

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