EXp World Holdings, (EXPI) recently blew away financial and investment experts with its phenomenal growth in both revenue and agent count as referenced in its Q2 2021 earnings report.
EXp Q2 2021 Earnings Reflected Exponential Growth in Sales,, Agent Count and Revenue
EXp World Holdings (EXPI), parent company of eXp Realty, recently reported its Q2 2021 earnings. Its report triple-digit growth in revenue caught th attention of investors and financial experts alike. Here are some of the specifics:
- eXp’s revenue growth during Q2 2021 neared $1B. +182.9 y/y
- eXp exceeded EPS estimates of $.09 by achieving a GAAP PS of $0.24, an increase of +300%
- eXp’s agent count grew +87% to nearly 60,000 agents – more agents on the eXp platform, the more homes sold y/y
- eXp’s gross profit jumped +133% to $80M
- eXp’s net income jumped +350% to $37M
eXp’s Unique Agent Incentives
Because there are so many incentives for eXp agents, it makes sense to list them:
- 80-20 commission splits on signed transactions
- option for 5% of commission to go into company stock at 10% discount
- after $80,000 in commissions, agents receive 100% of transaction commission
- existing eXp agents receive referral for recruiting new agents to the company
- multiple tiered equity rewards
- top agents receive up to $16,000 in eXp stock when they achieve their production goals within their anniversary year
- multiple cash rewards to agents with ICON status achievement after 3 years with eXp
- newly announced dividend of $.04/share beginning Q3 2021
Glenn Sanford, eXp founder and president, designed agent incentives to serve as one of the company’s primary growth strategies to achieve agent expansion. Not only is eXp’s agent count growing (now well past 60,000 in early Q3 2021), the company’s pool of top-quality agents is growing.
EXp Has Multiple Growth Runways
Investment/financial experts believe that eXp has the potential to grow +50% y/y in US markets.
The company also recently announced it was operating in 17 countries during Q2 and that by the end of 2021, the company plans to expand into Germany and Japan. Sanford’s ultimate goal is to expand into 100 countries within 5 years.
Due to eXp’s 80-20 commission split, international agents with eXp would earn +50% more from a sale than they would if they were working with any other firm. Currently, eXp’s existing international agents account for just 10% of its overall agent pool – international agent expansion goals seem quite realistic as do its goals for potential revenue growth from those international agents.
eXp recently announced its partnership with Kind Lending to launch a new mortgage services provider called SUCCESS Lending.
eXp’s Express Offers is the company’s iBuying arm. One unique feature of Express Offers is that it DOES NOT buy the houses as do its competitors. No drag on the company’s capital while offering eXp clients more options to buy and sell houses.
eXp’s VirBELLA, its tech platform/brain, is another revenue arm. The platform is available and used by hundreds of businesses from various industries.
EXp’s Bottom Line
Two writers with extensive investment expertise writing for Seeking Alpha, Jamie Louko and Anh Hoang, are strongly optimistic about the investment potential of eXp World Holdings. Louko believes, “This quarter shows eXp’s execution is doing what they do best…continuous execution…on all fronts (and that) eXp has lots of potential ahead of itself…(with) massive room to grow…for the next 5-10 years.”
Hoang also believes in eXp”s delivery of “phenomenal growth…(with) a lot of room for future growth.” Hoang believes eXp”…could reach $145 per share by 2025.”
Thanks to Seeking Alpha.
