The major, publicly listed brokerages showed impressive, multi-level 2021 growth. Here are some comparisons among eXp Realty, Realogy and Compass.
DelPrete Explains What Growth Numbers Mean for Future of Brokerage
Real estate strategic adviser and global expert in real estate tech Mike delPrete looked at Q4 2021 earnings reports from eXp Realty, Realogy and Compass. Here are some key data points from each company and delPrete’s evaluations of those data points:
Quiz:
Please choose one answer:
1) I am ready to join EXP Realty.
2) I am interested in EXP Realty and need more info.
3) I am not interested in EXP Realty.
Key:
* If you answered “#1” congratulations. You are about to join the fastest-growing real estate company in the world. Tim and Julie Harris are inviting you to join them at EXP Realty. Text Tim directly for the next steps: 512-758-0206. (text only please)
* If you answered “#2” please watch the videos and check out the other intel on this site. http://whylibertas.com/harris .
* If you answered ‘#3’ no worries. You will want to check out whylibertas.com/harris so you can at least know what EXP Realty is and why so many agents are moving to EXP.
Revenue Growth
Here are some comparative revenue growth statistics provided by eXp Realty, Realogy and Compass:
- eXp Realty (US) – +103% from FY20 – FY21
- Realogy – +31% from FY20-FY21
- Compass – +72% from FY20-FY21
As you can see, eXp Realty doubled its revenue in 2021. And for the very first time, revenue growth generated by Compass exceeded Realogy’s revenue.
Transaction Volumes
eXp Realty’s increasingly accelerating growth in transaction volumes topped 400,000 AND surpassed those of Realogy during 2021.
- eXp Realty – 400,000 + in FY21
- Realogy – 375,000+ in FY21
- Compass – 220,000+in FY21
- Redfin – 80,000+ in FY21
Agent Count
Agent counts drive revenue and transaction growth. Translation: agents remain central to the transaction.
delPrete said, “Compared to its peers, agent growth at eXp Realty has been jaw-dropping. EXp added more new agents in 2021 than Compass had in total.”
- eXp Realty (US) – 62,500+ in FY21
- Compass – 23,500+ in FY21
- Redfin – 3,000? in FY21 (difficult to read on bar chart)
Agent Growth
Regardless of talk about disruption, the more agents a brokerage has and adds, the more transactions and revenue growth there are for that brokerage.
- eXp Realty – +80% in FY21
- Compass – +56% in FY21
- Redfin – +27% in FY21
- Realogy – +11% in FY21
Agent recruitment strategies are obviously key to agent growth, agent counts, transaction volume growth and revenue growth. According to delPrete, eXp Realty and Compass spur their respective agent recruitment programs by offering agents generous financial incentives.
Final Thoughts Written by Horizon Capital for Seeking Alpha
“…my belief in eXp’s long term success has not dropped (despite the stock price being down.) I see too many similarities between eXp and other great businesses (such as Walmart…) I also see a management team that not only provides industry leading value to agents but also treats these agents as true partners. Over time this type of win-win relationship can only lead to good things. And not less important, the unit economics work. Free cash flow per share adjusted for dilution from the Agent Equity Program and the Agent Growth Incentive Program is positive and rising fast.”
Are you ready to learn what your DISC personality style is? You know it’s critical that you understand what your natural personality style is. Once you have obtained this knowledge everything in your business and personal life will change for the better. Tim and Julie Harris are making it super simple for you to have this powerful info. Now, text the word YOU to 47372, and when you do you will instantly receive a special exclusive text link. Next, you will complete your own DISC personality test.. the results will be shared with you instantly once you complete the simple and fun test, no strings attached. Simply text the word YOU to 47372 and click the link.
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Thanks to Mike delPrete writing for Inman and Horizon Capital writing for Seeking Alpha.
