BELLINGHAM, WA--(Marketwired - November 14, 2017) -
- Record revenue of $48.1 million, increase of 203% year-over-year
- Record cash flow of $3.3 million, increase of 255% year-over-year
- Record real estate agent increase of 173% year-over-year, surpassed 5,000 in early October
eXp World Holdings, Inc. (
Third Quarter 2017 Financial Summary
- Revenue increased 203% to a record $48.1 million from $15.8 million in the third quarter of 2016. This represents 22% growth quarter-over-quarter, from $39.6 million in the second quarter of 2017.
- Gross margin grew 96% year-over-year for the same quarter to $4.81 million; $12.1 million year-to-date compared to $5.3 million for the same nine-month period in 2016.
- Net loss was $7.8 million, or $(0.15) per diluted share, compared to net loss of $14.6 million, or $(0.29) per diluted share in the third quarter of 2016.
- Adjusted EBITDA (a non-GAAP financial measure) decreased 24% to $0.6 in the third quarter of 2017, compared to $0.8 in the third quarter of 2016.
- Cash flow from operations increased 255% to $3.3 million from $0.9 million in the third quarter of 2016. This represents 106% growth quarter-over-quarter, compared to $1.6 million in the second quarter of 2017.
Third Quarter 2017 Operating and Business Highlights
- Increased the number of agents and brokers on the eXp Realty platform by 173% to 4,952, compared to 1,816 on the same date last year. This represents 26% growth quarter-over-quarter, compared to 3,913 at the end of the second quarter of 2016.
- Surpassed a 5,000-agent milestone in early October 2017.
- Hired Mary Frances Coleman as chief operating officer, Vicki Olafson as vice president of employee experience and Macie Hawkes as general counsel.
- Expanded into Mississippi and Ontario, Canada.
"eXp World Holdings finished the third quarter of 2017 with another quarter of record revenue, further solidifying our foundation for long-term growth," said eXp World Holdings CEO and Chairman Glenn Sanford. "Our rapidly growing agent and broker family helped us achieve a major 5,000-agent milestone, which we announced at our fourth annual national conference in early October. As we continue to expand into new markets and deeper into existing ones, it is clear our business model of delivering strong economic, technology and marketing solutions resonates with agents and brokers. We are excited about the continued success and opportunities in front of us."
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, a non-GAAP financial measure. We view Adjusted EBITDA as an operating performance measure and, as such, we believe that the GAAP financial measure most directly comparable to it is net income (loss). We define Adjusted EBITDA as net income excluding interest, income taxes, depreciation, amortization, and stock based compensation. We believe that Adjusted EBITDA provides us an important measure of operating performance and enhances comparability while providing investors with useful insight into the underlying trends of the business. Our use of Adjusted EBITDA has limitations as an analytical tool, and this measure should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP, as the excluded items may have significant effects on our operating results and financial condition. Additionally, our measure of Adjusted EBITDA may differ from other companies' measure of Adjusted EBITDA. When evaluating our performance, Adjusted EBITDA should be considered with other financial performance measures, including various cash flow metrics, net income and other GAAP results. In the future, we may disclose different non-GAAP financial measures in order to help our investors and others more meaningfully evaluate and compare our future results of operations to our previously reported results of operations.
Safe Harbor Statement
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.
About eXp World Holdings
eXp World Holdings, Inc. (
For more information, please visit the company's websites at expworldholdings.com and exprealty.com.
Connect with eXp Realty and eXp World Holdings:
- Facebook - Canada, United States, investor relations
- Twitter - United States, investor relations
- LinkedIn - Canada and United States
The eXp World Holdings logo is available at http://expworldholdings.com/logos. The agent-owned cloud brokerage is a registered trademark of eXp Realty, LLC.
Reported Consolidated Results
| EXP WORLD HOLDINGS, INC. | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (UNAUDITED) | ||||||||||
| September 30, | December 31, | |||||||||
| 2017 | 2016 | |||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS | ||||||||||
| Cash and cash equivalents | $ | 3,347,910 | $ | 1,684,608 | ||||||
| Restricted cash | 1,134,109 | 481,704 | ||||||||
| Accounts receivable, net of allowance $177,563 and $133,845, respectively | 7,549,469 | 3,015,767 | ||||||||
| Prepaids and other assets | 587,904 | 383,563 | ||||||||
| TOTAL CURRENT ASSETS | 12,619,392 | 5,565,642 | ||||||||
| OTHER ASSETS | ||||||||||
| Fixed assets, net | 1,298,215 | 538,405 | ||||||||
| TOTAL OTHER ASSETS | 1,298,215 | 538,405 | ||||||||
| TOTAL ASSETS | $ | 13,917,607 | $ | 6,104,047 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| CURRENT LIABILITIES | ||||||||||
| Accounts payable | $ | 412,439 | $ | 317,420 | ||||||
| Customer deposits | 1,134,109 | 481,704 | ||||||||
| Accrued expenses | 7,745,153 | 2,742,119 | ||||||||
| Notes payable | - | 35,778 | ||||||||
| TOTAL CURRENT LIABILITIES | 9,291,701 | 3,577,021 | ||||||||
| Commitments and contingencies | - | - | ||||||||
| STOCKHOLDERS' EQUITY | ||||||||||
| Common Stock, $0.00001 par value 220,000,000 shares authorized; 53,995,962 shares and 52,316,679 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 540 | 523 | ||||||||
| Additional paid-in capital | 41,238,713 | 34,526,859 | ||||||||
| Accumulated deficit | (36,621,221 | ) | (32,004,561 | ) | ||||||
| Accumulated other comprehensive income (loss) | 7,874 | 4,205 | ||||||||
| TOTAL STOCKHOLDERS' EQUITY | 4,625,906 | 2,527,026 | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 13,917,607 | $ | 6,104,047 | ||||||
| The accompanying notes are an integral part of these condensed consolidated financial statements. | ||||||||||
| EXP WORLD HOLDINGS, INC. | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| (UNAUDITED) | |||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||||
| Net revenues | $ | 48,105,769 | $ | 15,756,956 | $ | 109,691,317 | $ | 36,181,796 | |||||||||
| Operating expenses | |||||||||||||||||
| Cost of revenues | 43,291,473 | 13,294,452 | 97,620,066 | 30,868,564 | |||||||||||||
| General and administrative | 11,987,268 | 16,810,567 | 14,697,040 | 25,801,423 | |||||||||||||
| Professional fees | 223,811 | 140,804 | 906,654 | 414,197 | |||||||||||||
| Sales and marketing | 380,452 | 158,968 | 1,030,497 | 358,396 | |||||||||||||
| Total expenses | 55,883,004 | 30,404,791 | 114,254,257 | 57,442,580 | |||||||||||||
| Net loss from operations | (7,777,235 | ) | (14,647,835 | ) | (4,562,940 | ) | (21,260,784 | ) | |||||||||
| Other income and (expenses) | |||||||||||||||||
| Other income | - | (432 | ) | - | 14 | ||||||||||||
| Interest expense | (58 | ) | - | (2,105 | ) | - | |||||||||||
| Total other income and (expenses) | (58 | ) | (432 | ) | (2,105 | ) | 14 | ||||||||||
| Loss from before income tax expense | (7,777,293 | ) | (14,648,267 | ) | (4,565,045 | ) | (21,260,770 | ) | |||||||||
| Income tax expense | (3,277 | ) | (7,444 | ) | (51,615 | ) | (33,015 | ) | |||||||||
| Net loss | (7,780,570 | ) | (14,655,711 | ) | (4,616,660 | ) | (21,293,785 | ) | |||||||||
| Net loss attributable to non-controlling interest in subsidiary | - | 8,613 | - | 20,913 | |||||||||||||
| Net loss attributable to common shareholders | $ | (7,780,570 | ) | $ | (14,647,098 | ) | $ | (4,616,660 | ) | $ | (21,272,872 | ) | |||||
| Net loss per share attributable to common shareholders | |||||||||||||||||
| Basic from continuing operations | $ | (0.15 | ) | $ | (0.29 | ) | $ | (0.09 | ) | $ | (0.42 | ) | |||||
| Diluted from continuing operations | $ | (0.15 | ) | $ | (0.29 | ) | $ | (0.09 | ) | $ | (0.42 | ) | |||||
| Weighted average shares outstanding | |||||||||||||||||
| Basic | 53,335,822 | 51,225,817 | 52,837,134 | 50,929,102 | |||||||||||||
| Diluted | 53,335,822 | 51,225,817 | 52,837,134 | 50,929,102 | |||||||||||||
| The accompanying notes are an integral part of these condensed consolidated financial statements. | |||||||||||||||||
| US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION | ||||||||
| Quarter Ended, | ||||||||
| Adjusted EBITDA reconciliation | Sep-16 | Sep-17 | ||||||
| Net Income / (Loss) | $ | (14,655,711 | ) | $ | (7,780,570 | ) | ||
| Interest | - | 58 | ||||||
| Taxes | 7,444 | 3,277 | ||||||
| Depreciation & Amortization | 12,555 | 125,752 | ||||||
| Stock Compensation | 795,401 | 4,846,596 | ||||||
| Stock Option | 14,632,458 | 3,409,851 | ||||||
| Adjusted EBITDA | $ | 792,147 | $ | 604,964 | ||||
Contact Information:
Media relations contact:
Cynthia Nowak
Director of marketing and communications
eXp Realty
360-419-5285, ext. 116