eXp World Holdings, Inc. · NASDAQ:AGNT
eXp World — Q2 2024 Earnings Presentation
45 slides from eXp World's earnings presentation, August 2024
Slide 1: Investor Presentation Q2 2024
Investor Presentation Q2 2024
Slide 2: Safe Harbor
Safe Harbor The statements contained herein may include statements of future the difficulty of keeping expense growth at modest levels while expectations and other forward-looking statements1 that are based increasing revenues; and other risks detailed from time to time in the on management’s current
Slide 3: The eXp Platform
The eXp Platform A powerful platform providing end-to-end technology & services for agents The eXp Platform eXp provides a platform to enable every agent North America International Other Affiliated Realty Realty Services to build their business, their brand, and their brokerage. Training & Coaching T
Slide 4: Disrupting Traditional Brokerage Models
Disrupting Traditional An efficient operating model drives Brokerage Models increased opportunities for agents Traditional Brokerage vs. eXp Realty Operating Model Operating Model ● High operating expenses and capital costs associated ● Cloud-based model with minimal brick-and-mortar with brick-and-mo
Slide 5: eXp World Holdings | Investment highlights
eXp World Holdings | Investment highlights 1. Category king of the cloud-based real estate brokerage model ○ The only tech-enabled real estate brokerage operating at scale 2. Compelling agent value proposition ○ Revenue share, stock equity awards*, competitive splits and benefits 3. Efficient technolog
Slide 6: Category King of the Cloud-based Brokerage Model
Category King of the Cloud-based Brokerage Model
Slide 7: Cloud-based Models Continue to Gain Share
Cloud-based Models Continue to Gain Share Cumulative Change in Agents* Cloud-based +35,111 Bricks & mortar -8,854 * Cumulative change for the 10 quarters ended 06/30/2024 based on SEC filings. COMP includes total agents and RDFN includes average lead agents. Note: Cloud-based includes EXPI, FTHM, RDF
Slide 8: The Only Cloud-based Brokerage at Scale
The Only Cloud-based eXp exceeds all cloud-based brokerages Brokerage at Scale across key business and financial metrics Compared to the next largest cloud-based brokerage… ● 4.5x Agents ● 390% more Transactions ● 404% more Transaction Volume ● 24 Countries vs. 2 ● 374% more Revenue ● 156% more Adj.
Slide 9: Set eXp Apart
Scale & Efficiency The only public brokerage Set eXp Apart operating efficiently at scale Efficiency Most efficient operating at scale ($4,440 | $785) (Revenue in Millions | Operating Expenses(1)/ Transaction) LTM Q2’24 Revenue EXPI RDFN RE Services Scale FTHM REAX Note: Brokerages represented are Fathom,
Slide 10: Scale + Efficiency = Leading Profitability
Scale + Efficiency = eXp’s superior model results Leading Profitability in industry-leading profitability LTM Q2’24 Net Loss (in thousands) eXp Net (Loss) Income includes: ● $16.0 million (net of tax, $11.4 million) antitrust litigation contingency provision for the first quarter 2024; ● $9.2 million (n
Slide 11: Compelling Agent Value Proposition
Compelling Agent Value Proposition
Slide 12: Aligning Growth & Agent Success
Aligning Growth Revenue Share 2.0 aligns incentives & Agent Success to drive growth and agent success eXp contributes 50% of the company’s commission dollar to the Revenue Share Pool ● eXp has allocated $201.0 million in revenue share to its agents in the last 12 months Benefits of revenue sharing: ●
Slide 13: Unique Model Provides Agent Equity Opportunities
Unique Model Provides Agents & brokers are less likely to pursue Agent Equity Opportunities¹ other opportunities if they are shareholders Equity Awards Agent Equity ICON Agent Award Through Incentive Commission Program Program Top agents can receive Additional $4,000 stock up to $16,000 in stock awa
Slide 14: Growth-Oriented & Agent-Led Culture Driving Industry-Leading Programs
Growth-Oriented & Agent-Led Culture Driving Industry-Leading Programs eXp UNIVERSITY UNIVERSITY MENTORSHIP MASTERMINDS & BROKER SUPPORT eXp TASK FORCES The most innovative Whether you are This is your opportunity Our Managing Brokers brokerage OWNuniversity & GROW on brand new or starting to collabo
Slide 15: Enhancing the Lives of Our Agents and Our Communities
Enhancing the Lives of Our Agents and Our Communities We are committed to creating an We are dedicated to the betterment We are committed to wellbeing. equitable, diverse and inclusive of our communities. culture for our employees, agents eXp’s affiliated 501(c)(3) and brokers. The first week of Octobe
Slide 16: Efficient, Technology-Driven Operations
Efficient,Technology- Driven Operations
Slide 17: Cloud-First Operating System Creates Competitive Advantage
Cloud-First Operating System Creates Competitive Advantage eXp is one of the only companies operating within a Best-in-class technology partnerships designed to metaverse at scale enhance agent productivity ● Frame is a highly customizable spatial computing platform, ● Industry-leading CRM options f
Slide 18: Driving Productivity with Technology
Driving Productivity A powerful combination of AI, with Technology mobile & web-based technologies Proprietary External Productivity Technology Applications ● eXp World/Frame: Next-gen ● kvCore & 360 Home: Provides ● eXp World: agents can create their own spaces spatial computing agents & their clie
Slide 19: Superior Financial Model & Debt-Free Balance Sheet
Superior Financial Model & Debt-Free Balance Sheet
Slide 20: Financial Sustainability & Agility
Financial Sustainability & Agility Low asset intensity driven by cloud-based model ● Strongest net cash position among industry peers(1) Industry-leading cost efficiency ● Among the lowest operating expenses per transaction(1) Strong operating cash flow ● $917 million of cumulative Adjusted Operating C
Slide 21: Model + Management = Leading Cash Position
Model + Management = eXp’s superior model & financial management Leading Cash Position results in industry-leading cash position Net Cash (Debt) as of 6/30/24 (in millions) Source: SEC filings. Note: Net cash (debt) defined as the sum of cash + short-term investments less the sum of short-term and lo
Slide 22: Operating Efficiently
Low operating expenses per Operating Efficiently transaction Operating Expenses (1) / Agent | LTM Q2’24 Operating Expenses (1) / Transaction (2) | LTM Q2’24 Source: Respective company SEC filings. Note: Operating Expenses include sales and marketing, general and administrative expenses and, for the fo
Slide 23: Track Record of Cash Flow Generation
Track Record of $917M cumulative adj. operating cash Track Record of Cash Flow Generation (1) flow & $309M cumulative Cash Flow Generation adj. EBITDA since 2017 (2) Adjusted Operating Cash Flow (1) Adjusted EBITDA (2) ($M) Cumulative Cumulative ($M) (1) Reconciliation of adjusted operating cash flow
Slide 24: Returning Capital to Shareholders
Returning Capital Significant share to Shareholders repurchases and dividends `` BOD increases dividend 730 by 11.1% to $0.05/quarter $700M 80 674 BOD increases repurchase authorization $1 billion total 634 73 600 650 Cumulative Share $600M 65 Repurchases 58 601 537 568 Cumulative $500M BOD increases
Slide 25: Large TAM with Multiple Expansion Opportunities
Large TAM with Multiple Expansion Opportunities
Slide 26: A Large & Underpenetrated Addressable Market
A Large & Underpenetrated Addressable Market Total Addressable Market $465B +$465B $204B Expanded Opportunity 5 International Residential Real Estate Brokerage +$204B $112B Expansion 4 U.S. Commercial Brokerage +$112B Growth Verticals 3 $69B Mortgage, Title & Escrow +49B 1) NAR - 2023 Existing Home
Slide 27: Segments Reflect eXp's Strategic Priorities
Segments Reflect eXp’s North American Realty, International Realty, Strategic Priorities Frame And Other Affiliated Services North American Realty Other Affiliated Services ● Profitable core business funds ● Continue to develop the WebXR agent-centric innovation FrameVR platform, our virtual world technol
Slide 28: Strengthening Our Agent Value Proposition
Strengthening Our Enhance agent & consumer offering while generating Agent Value Proposition attractive, high-margin revenue streams Enhancing Our Expanding Success for Service Offerings Personal Development Delivering industry-leading coaching Driving high-quality buyer and seller and certification
Slide 29: One Brokerage Expanding Globally
One Brokerage eXp Is capturing global market share with 69% year-over-year¹ Expanding Globally international revenue growth Effective Operations In New Markets Driven By: In-Country Leadership & Regional Shared Service Hubs Experienced local teams in each geography are responsible for agent operatio
Slide 30: Expanding the Metaverse Opportunity
Expanding the Frame: Next generation Metaverse Opportunity spatial computing High Level ● Works on desktop, mobile, and immersive hardware like Meta Quest 3 and Apple Vision Pro ● Squarespace but for the spatial web. For other businesses, freemium SaaS plans launched in beta last year. ● Presented b
Slide 31: Experienced Management Team
Experienced Management Team
Slide 32: eXp Management
eXp Management Founder-led and seasoned team Glenn James Kent Sanford Bramble Cheng Founder & Chief Counsel Principal Financial Chairman CEO, & Corporate Secretary, Officer & CAO, eXp World Holdings eXp World Holdings eXp World Holdings Leo Patrick Wendy Pareja O'Neill Forsythe Chief Executive Chief O
Slide 33: 2024 Financial Summary & Roadmap
2024 Financial Summary & Roadmap
Slide 34: 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 35: YTD Q2 2024 Segment Financial Highlights
YTD Q2 2024 Segment Financial Highlights Other N American International Corporate & eXp World YTD Q2 2024 Affiliated Realty Realty Eliminations Holdings Services Revenue $2,201.8M $35.9M $3.3M $(2.6)M $2,238.3M Variance % y/y 7% 58% 18% -10% 8% Adj. EBITDA(1) $56.3M $(5.7)M $(1.8)M $(5.0)M $43.9M Vari
Slide 36: 2024 Roadmap
2024 Roadmap Double down on Deliver new offerings & Prudently manage multi-decade International technology enhancements expenses to drive Adjusted opportunity to drive agent success and EBITDA(1) growth eXp revenue growth Continued New divisions create Leverage technology to momentum with 69% opport
Slide 37: Investor Relations
Investor Relations CONTACT investors@expworldholdings.com | 360-685-4206 2219 Rimland Dr, Suite 301, Bellingham, WA 98226 expworldholdings.com
Slide 38: Appendix
Appendix
Slide 39: Unique Model Incentivizes Agents and Brokers
Unique Model Incentivizes Agents and Brokers Highly Attractive Commission Structure Very Low Startup Costs COMMISSION* PER TRANSACTION FEE* And Commitment ● Agents receive an ● $25 Transaction Review Fee ONE-TIME COSTS* 80%/20% split on first ● $60 Risk Management Fee $80,000 GCI (gross ● $149 one-ti
Slide 40: 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 41: 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 42: 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 (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net (loss) income from continuing operations $ 11,766 $ 11,355 $ (2,064) $ 13,347 Total oth
Slide 43: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Adjusted Operating Cash Flow (in thousands) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net cash provided by operating activities $ 71,147 $ 98,024 $ 131,801 $ 154,168 Less: Customer deposits 10,707 33,472 41,946 50,
Slide 44: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Consolidated U.S. GAAP Net Income to Adjusted EBITDA Reconciliation (in thousands) YTD June 30, Year Ended December 31, 2024 2023 2022 2021 2020 2019 2018 2017 Net income (loss) from continuing operations $ (2,064) $ (8,973) $ 15,424 $ 81,159 $ 3
Slide 45: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Adjusted Operating Cash Flow (in thousands) 6 Months Ended June 30, Year Ended December 31, 2024 2023 2022 2021 2020 2019 2018 2017 Net cash provided by operating activities $ 131,801 $ 209,131 $ 210,535 $ 246,892 $ 119,659 $ 55,186 $ 24,311 $ 4,