Exp World Holdings, Inc. · NASDAQ:AGNT
Exp World — Investor Presentation (July 2018)
22 slides from Exp World's investor presentation, July 2018
Slide 1: Investor Presentation July 2018
NASDAQ: EXPI Investor Presentation July 2018
Slide 2: Safe Harbor
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, financial results or dev
Slide 3: Company Overview
Company Overview • eXp World Holdings, Inc. operates eXp Realty, a cloud-based, international real estate brokerage firm • Our cloud-based brokerage dramatically reduces the costs associated with physical brick-and- eXp World Holdings, Inc. (NASDAQ: EXPI) mortar offices & related support staff Share
Slide 4: Our Approach: A Cloud-Based Brokerage
Our Approach: A Cloud-Based Brokerage Our cloud campus offers real estate agents & brokers full-spectrum support—from transaction support to professional development & collaboration—without the brick & mortar infrastructure • Eliminates expenses, enabling the brokerage to share the additional funds
Slide 5: Key Highlights
Key Highlights Cloud-based Residential Real Estate Brokerage • Limited brick & mortar footprint (except as required by law) eXp Realty’s Footprint • Low cost of entry into new markets Operating in 49 States + D.C. and Part of Canada • Exposure to both U.S. and Canadian markets with scalability world
Slide 6: U.S. Residential Real Estate Market
U.S. Residential Real Estate Market1 • Annual U.S. real estate brokerage market accounts for $1.5T with 5.5M homes sold annually2 89% of Homes in U.S. are Sold Through Real Estate Agents 𝟏 • Real estate sales & brokerage revenues have grown at an annualized rate of 5.6% since the 2008 11% recession
Slide 7: The Agent-Owned Cloud Brokerage
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 ownership interest in eXp
Slide 8: Explosive Agent & Revenue Growth
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 eXp Realty Ending Agents & Revenue By Quarter 10,000 $70,000,000.0 Currently over 13,000 agents1 9,000 $60,00
Slide 9: Value to Agents & Brokers
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 EARN LEARN more with lower costs where and how you want • High Split • Collaborative Cloud Community • Low Cap
Slide 10: Unique Model Incentivizes Agents & Brokers
Unique Model Incentivizes Agents & Brokers Low Startup Costs Very low startup costs & commitment & Fees One-time Costs: • $149 one-time setup fee includes business cards & folders Favorable Commissions Ongoing Costs: • $50 monthly technology fee • $35 monthly eXp University fee • $250 monthly revenu
Slide 11: Unique Model Incentivizes Agents & Brokers
Unique Model Incentivizes Agents & Brokers Low Startup Costs & Highly attractive commission structure for brokers & agents Fees • Agents receive an 80/20 split on first $80,000 gross commission income (GCI) o $16,000 yearly cap paid out to eXp (20% of Favorable $80,000) Commissions • Agents keep 100
Slide 12: Unique Model Incentivizes Agents & Brokers
Unique Model Incentivizes Agents & Brokers eXp can scale its business very quickly by incentivizing & Low Startup Costs & empowering all agents & brokers Fees vs. Traditional Brokerage eXp Realty • Only one employee has • All agents are highly incentive to grow the incentivized to grow the Favorable
Slide 13: Unique Model Incentivizes Agents & Brokers
Unique Model Incentivizes Agents & Brokers Agents & brokers are less likely to pursue other opportunities Low Startup Costs & if they are shareholders Fees Earn ownership through Agent Equity Commission Program incentive program • Voluntarily get 5% of gross • 35 shares for first closing commission
Slide 14: Growth Opportunities
Growth Opportunities Affiliated services offers eXp World Holdings notable growth opportunities, which could grow gross profit on select real estate transactions by several fold Affiliated Services: • Currently, the brokerage derives its revenues primarily from its portion of Title & Escrow the comm
Slide 15: Select Financials
Select Financials • Strong revenue growth Revenue Growth Revenue Adj. EBITDA • Zero net debt $196.5 • $2.4M deferred net tax assets at Dec. 31, 2017 (offset by full valuation allowance) $156.1 (USD $ in Millions) TTM (3/31/18) TTM (3/31/17) $ Millions Revenue $196.5 $68.6 Net Income (Loss) ($29.9) (
Slide 16: Experienced Management
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 offices in two states. Af
Slide 17: Independent Directors
Independent Directors Darren Jacklin Randall Miles Independent Director Independent Director For over 19 years, Mr. Jacklin has worked For over 25 years Mr. Miles has held senior with companies in an advisory capacity leadership positions in global financial especially in Sales and Marketing and ser
Slide 18: Key Takeaways
Key Takeaways • Full-service, national real estate brokerage providing 24/7 eXp Realty Ending access to collaborative tools, training & socialization for Agents & Revenue By brokers & agents through our 3-D cloud office environment Agents Quarter $ Millions • Minimal startup & ongoing costs – Absenc
Slide 19: 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.falesnik@mzgroup.us www.mzgroup.us88.761.8208 2219 Rimland Dr, Suite 301 Bellingham, WA 98
Slide 20: Appendix
WORLD HOLDINGS, INC. APPENDIX NASDAQ: EXPI | 20
Slide 21: Brokerage Market Competitive Landscape
Brokerage Market Competitive Landscape Innovators are valued by venture capital • Compass: +$2.2B valuation (+$775M raised to-date) • eXp Realty has been growing its geographic footprint faster while adding agents and brokers faster than venture backed firms • eXp Realty has required minimal capital
Slide 22: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION Adjusted EBITDA reconciliation Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Net Income / (Loss) $(6,012,627) $(14,655,711) $(4,749,489) $298,269 $3,230,209 $(7,780,570) $(11,769,111) $(10,696,345) I
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