Exp World Holdings, Inc. · NASDAQ:AGNT
Exp World — Investor Presentation (April 2017)
22 slides from Exp World's investor presentation, Apr 4, 2017
Slide 1: Investor Presentation April 2017
OTCQB: EXPI Investor Presentation April 2017
Slide 2: Safe Harbor
2 OTCQB: EXPI | Safe Harbor This presentation contains forward - looking statements, as defined in the Private Securities Litigation Reform Act of 1995. All statements other than historical facts are forward - looking statements, including without limitation, those regarding activities, events, fina
Slide 3: Company Overview
3 OTCQB: EXPI | Company Overview eXp World Holdings, Inc. ( OTCQB: EXPI) Share Price 1 $3.67 Market Cap 1 $192.3M Debt $0 2016 Revenues 2 $54.2M 2016 Adj. EBITDA 2,3 $1.6M Shares Outstanding 2 52.4M Float 2 14.4 M Insider Holdings 74% Headquarters Bellingham, WA Founded 2009 Employees (FT) 53 • eXp
Slide 4: Our Approach: A Cloud-Based Brokerage
4 OTCQB: EXPI | Our Approach: A Cloud - Based Brokerage • Eliminates expenses, enabling the brokerage to share the additional funds with its agents & benefits to shareholders • Creates a collaborative community & allows for interaction with top industry professionals around the world • Unique broker
Slide 5: Key Highlights
5 OTCQB: EXPI | Key Highlights Cloud - based Residential Real Estate Brokerage • Limited brick & mortar footprint (except as required by law) • Low cost of entry into new markets Operating in 43 States + D.C. and Part of Canada • Exposure to both U.S. and Canadian markets with scalability worldwide
Slide 6: U.S. Residential Real Estate Market
6 OTCQB: EXPI | U.S. Residential Real Estate Market 1 • Annual U.S. real estate brokerage market accounts for $1.27T with 5.3M homes sold in 2015 2,3 • Real estate sales & brokerage revenues have grown at an annualized rate of 5.6% since the 2008 recession • Estimated 2M active licensed real estate
Slide 7: The Agent-Owned Cloud Brokerage
7 OTCQB: EXPI | The Agent - Owned Cloud Brokerage® Mission : Deliver maximum value to our agents, brokers & staff while building an international brand as the leading Agent - Owned Cloud Brokerage “eXp Realty’s family of agents and brokers build their own businesses while establishing a direct owner
Slide 8: Explosive Agent & Revenue Growth
8 OTCQB: EXPI | Explosive Agent & Revenue Growth We continue to experience accelerated growth in both agent count & revenues as a result of our commitment to agent ownership, support & engagement $ Millions $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 - 500 1,000 1,500 2,000 2,500 3,
Slide 9: Value to Agents & Brokers
9 OTCQB: EXPI | Value to Agents & Brokers OWN and build a lasting business with equity • Agent Ownership Culture • Agent - Centric Co - Branding • Attraction (Passive) Income • Publicly - Traded Stock Ownership LEARN where and how you want • Collaborative Cloud Community • On Demand Training • Indiv
Slide 10: Unique Model Incentivizes Agents & Brokers: Low Startup Costs & Fees
10 OTCQB: EXPI | Unique Model Incentivizes Agents & Brokers Low Startup Costs & Fees Favorable Commissions Agents are Incentivized Agent Ownership 10 OTCQB: EXPI | Very low startup costs & commitment One - time Costs: • $99 one - time setup fee includes business cards & folders Ongoing Costs: • $50
Slide 11: Unique Model Incentivizes Agents & Brokers: Favorable Commissions
11 OTCQB: EXPI | Unique Model Incentivizes Agents & Brokers Low Startup Costs & Fees Favorable Commissions Agents are Incentivized Agent Ownership 11 • Agents receive an 80/20 split on first $80,000 gross commi s sion income (GCI) o $16,000 yearly cap paid out to eXp (20% of $80,000) • Agents keep 1
Slide 12: eXp Realty vs. Traditional Brokerage
12 OTCQB: EXPI | Unique Model Incentivizes Agents & Brokers Low Startup Costs & Fees Favorable Commissions Agents are Incentivized Agent Ownership 12 OTCQB: EXPI | • Only one employee has incentive to grow the business (Branch Manager) • Limited bandwidth to grow (typically a broker & assistant) • V
Slide 13: Unique Model Incentivizes Agents & Brokers: Agent Ownership
13 OTCQB: EXPI | Unique Model Incentivizes Agents & Brokers Low Startup Costs & Fees Favorable Commissions Agents are Incentivized Agent Ownership 13 Earn ownership through incentive program • 75 shares for first closing • 250 shares for capping • 250 shares for each recruit Agent Equity Commission
Slide 14: Growth Opportunities
14 OTCQB: EXPI | Growth Opportunities Real Estate Brokerage Title & Escrow Services Mortgage Origination Homeowners Insurance Affiliated services offers eXp World Holdings notable growth opportunities, which could grow gross profit on select real estate transactions by several fold Affiliated Servic
Slide 15: Select Financials
15 OTCQB: EXPI | Select Financials (USD $ in Millions) FY 2016 FY 2015 Revenue $54.2 $22.9 Net Income (L oss) ($26.0) ($4.6) Non - GAAP Adjusted EBITDA 1 $1.6 $0.3 (USD $ in Millions) Dec 31, 2016 Dec 31, 2015 Cash & Cash Equivalents $1.7 $0.6 Debt $0.04 $0.0 Total Stockholder’s Equity $2.5 $0.6 1)
Slide 16: Experienced Management
16 OTCQB: EXPI | Experienced Management Glenn Sanford, Founder, CEO & Chairman - Since 2002 , Mr . Sanford has been actively involved in the online real estate space . In 2007 , he launched BuyerTours Realty, LLC which, using a combination of web and traditional bricks and mortar, grew to three offi
Slide 17: Independent Directors
17 OTCQB: EXPI | Independent Directors Darren Jacklin Independent Director For over 19 years, Mr. Jacklin has worked with companies in an advisory capacity especially in Sales and Marketing and Entrepreneurship. He has personally trained over 150 Fortune 500 companies such as Microsoft, AT&T, Black
Slide 18: Key Takeaways
18 OTCQB: EXPI | Key Takeaways • Full - service, national real estate brokerage providing 24/7 access to collaborative tools, training & socialization for brokers & agents through our 3 - D cloud office environment • Minimal startup & ongoing costs – Absence of physical brick - and - mortar offices
Slide 19: Contact
1321 King Street #1 Bellingham, WA 98229 Main: 360 - 685 - 4206 www.eXpRealty.com Company Contact: Alan Goldman CFO - eXp World Holdings, Inc. Main: 775 - 432 - 6394 alan.goldman@exprealty.com Investor Relations Contact: Greg Falesnik Managing Director – MZ North America Main: 949 - 385 - 6449 greg.
Slide 20: Appendix
WORLD HOLDINGS,INC, APPENDIX (OTCQB: EXPI | 20
Slide 21: Brokerage Market Competitive Landscape
21 OTCQB: EXPI | Brokerage Market Competitive Landscape Innovators are valued by venture capital • Redfin : +$500M valuation (+$160M raised to - date) • Compass: +$1B valuation (+$210M raised to - date) • eXp Realty has been growing its geographic footprint faster while adding agents and brokers fas
Slide 22: Adjusted EBITDA Reconciliation
22 OTCQB: EXPI | Adjusted EBITDA Reconciliation Adjusted EBITDA reconciliation 2015 2016 Net Income / (Loss) (4,602,975)$ (26,043,274)$ Interest 1,127 370 Taxes 103,069 42,528 Depreciation & Amortization 26,304 58,374 Stock Compensation 1,293,077 5,559,898 Stock Option 3,497,491 21,964,472 Adjusted
eXp World Holdings — Investor Presentation (April 2017) on 6ix