eXp World Holdings, Inc. · NASDAQ:AGNT
eXp World — Q2 2024 Earnings Presentation
29 slides from eXp World's earnings presentation, Jul 31, 2024
Slide 1: Q2 2024 Financial Results
Q2 2024 Financial Results slido.com event code: Virtual Fireside Chat #EXPI July 31, 2024
Slide 2: Q2 2024 Earnings Speakers
Q2 2024 Earnings Speakers Glenn Sanford Leo Pareja Kent Cheng Founder, Chairman & Chief Executive Officer, Principal Financial Officer, Chief Executive Officer, eXp Realty Chief Accounting Officer, eXp World Holdings eXp World Holdings
Slide 3: Forward Looking Statements
Forward Looking Statements There will be a number of forward-looking statements made today that should be considered in conjunction with the cautionary 1 statements contained in the Company’s SEC filings. Forward-looking statements are subject to various risks and uncertainties that could cause our a
Slide 4: Welcome to our Metaverse on the Web
Welcome to our Metaverse on the Web Click on a screen to zoom into it. 4
Slide 5: slido.com event code: #EXPI
@ app.sli.do eXp ici HOLDINGS, INC. slido.com event code: #EXPI
Slide 6: Business Highlights Q2 2024
Business Highlights Q2 2024 Glenn Sanford Founder, Chairman & Chief Executive Officer, eXp World Holdings
Slide 7: The eXp Platform
The eXp Platform A Differentiated Platform Creating Value & Driving Success Worldwide The Most Agent-Centric Real Estate Brokerage on the Planet
Slide 8: Q2 Highlights
Q2 Highlights Driving Durable, Profitable Growth Q2 2024 vs. Q2 2023 ○ aNPS improved 4 points, from 72 to 76 ○ Increased International realty revenue 69% ○ Increased transactions and revenue ■ 50% increase in units, 71% increase in ■ 1% increase in real estate sales transactions productivity, 70% inc
Slide 9: Q2 Recap
Q2 Recap Leo Pareja Chief Executive Officer, eXp Realty
Slide 10: eXp U.S. Outperforms the Industry
eXp U.S. Outperforms eXp Continues To Increase Market Share the Industry 2024 Home Sales Transactions Growth (Y/Y) eXp Estimated Market Share eXp Realty Industry 2023 2024 Growth (Y/Y) Q2 -3.0% -3.4% Q2 4.2% 4.2% 0.5% YTD -0.8% -3.1% YTD 4.2% 4.3% 2.4% Sources: Industry transactions based on NAR exi
Slide 11: The Highest Quality Agents
The Highest Quality Agents eXp Welcomes Industry Experts and Leaders During Q2 2024 Continued to add notable agents, independent brokers and industry experts ● Kendall Bonner joined eXp Realty as VP Industry Relations ○ Named 2024 HousingWire Woman of Influence ● Tanya Memme, TV host and real estate
Slide 12: The Most Agent-Centric Brokerage on the Planet
The Most Agent-Centric Improving the Agent Value Brokerage on the Planet™ Proposition in Q2 2024 ● REVenue Share 2.0 ○ eXp paid out nearly $7 MILLION in Real Time REVshare in the first 60 days ● Launched eXp Elevate Coaching ○ Featuring Live and On-Demand coaching programs, solely dedicated to real e
Slide 13: Expanding Options for Agents
Expanding Options Recent Initiatives Gaining for Agents Traction With Agents ● eXp Exclusives ○ Expanded EXP Exclusives participation by 24% quarter over quarter ● Express Offers ○ OpenDoor instant cash offer partner has led to over 2300 property submissions to Opendoor alone in Q2 ● eXp Luxury ○ 13
Slide 14: Constantly Innovating for Agents
Constantly Innovating for Agents ● Enterprise OpenAI ChatGPT Usage ○ > 1 million messages sent in Q2, a 108% increase over Q1 2024 increasing staff productivity ● Task Center ○ Streamlined agent onboarding process by auto-completing over 5,000 tasks for staff by synchronously updating actions across
Slide 15: Improved Operating Efficiency
Improved Increasing Value to Agent- Operating Efficiency Owners & Shareholders Decreasing Costs Improving Operating Efficiency 9% 13 % Reduced North American Realty Grew North American Realty Adjusted SG&A/unit by 9% year-over-year EBITDA¹ by 13% year-over-year (1) A reconciliation of adjusted EBITDA to
Slide 16: U.S. Real Estate Market Update
U.S. Real Estate Market Update ● eXp’s “Buyer-Broker Representation Agreement” recognized by the Consumer Federation of America ○ “This agreement can serve as a model for how Realtor organizations and brokerages can craft an agreement that is much more understandable and fairer to everyday buyers.”(
Slide 17: Financial Highlights Q2 2024
Financial Highlights Q2 2024 Kent Cheng Principal Financial Officer, Chief Accounting Officer, eXp World Holdings
Slide 18: eXp Consolidated Key Metrics for Q2 2024
eXp Consolidated Key Metrics for Q2 2024 Q2 Summary Q2 2024 Q2 2023 Variance Operating Metrics ● Continued investing in agent onboard and transaction technology and process. ANPS 76 72 4 ● Agent base declined slightly due to market conditions in the US. Agents 87,111 88,248 -1% ● Real estate sales t
Slide 19: Consolidated Q2 2024 Revenue Change vs. Q2 2023
Consolidated Q2 2024 Revenue Change vs. Q2 2023 North American Realty Segment Revenue Change +$55M (1) Sources: US Industry transactions -3.4% based on NAR existing home sales (assuming 2 sides per sale) and U.S. Census Bureau new home sales (assuming 1 side per sale); Canada Industry transactions -
Slide 20: Q2 2024 Segment Financial Highlights
Q2 2024 Segment Financial Highlights Other N American International Corporate & eXp World Q2 2024 Affiliated Realty Realty Eliminations Holdings Services Revenue $1,274.6M $20.3M $1.5M $(1.2)M $1,295.2M Variance % y/y 5% 69% 37% 10% 5% Adj. EBITDA(1) $38.5M $(2.4)M $(1.0)M $(2.3)M $32.8M Variance % y/
Slide 21: Q2 2024 Financial Summary
Q2 2024 Financial Summary ● Excellent agent engagement - aNPS continued to increase during the quarter. ● Grew real estate sales transactions 1% despite a slight decrease in agent count, driven by agent productivity gains. ● Reduced realty cost per transaction 8% due to operating efficiency initiative
Slide 22: Q2 2024 Earnings Q&A
Q2 2024 Earnings Q&A Glenn Sanford Leo Pareja Kent Cheng Founder, Chairman & Chief Executive Officer, Principal Financial Officer, Chief Executive Officer, eXp Realty Chief Accounting Officer, eXp World Holdings eXp World Holdings
Slide 23: Stay Up-to-Date
Stay Up-to-Date Visit our website for the latest updates on news, results & events. Find the recording of this call & our latest investor presentation. expworldholdings.com
Slide 24: Appendix
Appendix expworldholdings.com
Slide 25: High-Quality Productive Agents
High-Quality eXp's Model Drives Retention Productive Agents Among Highly Productive Agents Attrition by U.S. Agent Annual Productivity ● Majority of departing agents 0 - 2 sales 75.5% are in the low-producing cohort ● High producing agents are multiples less likely to churn 3 - 7 sales 14.2% than lo
Slide 26: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures To provide investors with additional information regarding Adjusted EBITDA helps identify underlying trends in the business that otherwise could be masked by the our financial results, this chat deck includes references to effect of the expenses that are excluded in
Slide 27: Reconciliation of GAAP to Non-GAAP Operating Expenses
Reconciliation of GAAP to Non-GAAP Operating Expenses Three Months Ended Six Months Ended June 30, June 30, (in thousands, unaudited) 2024 2023 2024 2023 Revenues $ 1,295,244 $ 1,231,116 $ 2,238,298 $ 2,079,569 GAAP Commissions and other agent-related costs $ 1,197,668 $ 1,135,615 $ 2,062,414 $ 1,91
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures CONSOLIDATED US-GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION CONSOLIDATED US-GAAP NET INCOME TO ADJUSTED NET RECONCILIATION (In thousands) (In thousands)
Slide 29: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ADJUSTED OPERATING CASH FLOW (In thousands)