In a record second quarter for eXp, the fastest-growing real estate company in the country has announced a Q2 revenue of $1 billion and its first cash divided for Q3.
Revenue increased 183% to a record $1 billion, with gross profit increasing 133% to $79.9 million.
- Net income increased 350% to $37.0 million, which included $20.6 million income tax provision benefit. Earnings per diluted share increased 300% to $0.24.
- Adjusted EBITDA (a non-GAAP financial measure) increased 98% to $27.0 million.
- Operating cash flow increased 210% to $88.5 million.
- As of June 30, 2021, cash and cash equivalents totaled $107.4 million, compared to $63.6 million as of June 30, 2020. The Company repurchased approximately $54.9 million of common stock during the second quarter of 2021.
- The Company declared a cash dividend for the third quarter of 2021 of $0.04 per share on the company’s common stock. The dividend is expected to be paid on Aug. 30, 2021 to shareholders of record on Aug. 16, 2021.
“This quarter reflects that by iterating and improving the overall value proposition for real estate professionals, we continue to attract top agents and brokers to the eXp platform and expand into new countries around the world at an accelerated pace,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings.
“By extension, our substantial growth in agent count translated to exponential growth in transaction sides and volume closed. We are also continuing to focus on creating a quality community for highly-productive individuals and teams both online and in real-life events around the world. It is gratifying to see eXp’s brokerage model support the careers of so many and is highly rewarding for me personally as well as our overall management team. Our decision as a board to declare a cash dividend is also a testament to how our agent-centric model has continued to mature and grow,” said Sanford.
eXp is the first real estate brokerage to provide meaningful publicly traded equity to its productive agents and a revenue-share model that rewards agents for helping the company grow. eXp will be the first of a new breed of agent-centric brokerages to issue a cash dividend to its agents and brokers who are shareholders as a result of their work in servicing buyers and sellers in the marketplace.
eXp was founded on the premise that the real estate industry could be more agent-focused by leveraging technology that eliminates the need to be dependent on bricks-and-mortar infrastructure. This transformation was achieved through the scale and reach of Virbela, eXp’s cloud-based platform that enables a high touch enterprise while being entirely remote. As eXp moves ahead to the second half of this year and beyond, it plans to launch more products and services that will improve engagement between agents and customers, such as SUCCESS® Lending, LLC, a new residential lending platform. eXp is committed to growing market share by continual innovation on the most agent-centric model on the planet.
“Achieving the milestone of $1 billion in revenue during the second quarter is a testament to all of the forward-thinking agents leveraging our unique brokerage model,” said Jeff Whiteside, CFO and Chief Collaboration Officer of eXp World Holdings. “Through continued cash flow generation and diligent management of our balance sheet, we maintain the flexibility to invest in our platform while returning value to our shareholders through stock buybacks and dividends. As we continue to scale in the U.S. and globally, this strategic approach to capital allocation will enable us to maintain a strong competitive position while capitalizing on multiple growth avenues across our business.”
Second Quarter 2021 Operational Highlights as Compared to the Same Year-ago Quarter:
- Agents and brokers on the eXp Realty platform increased 87% to 58,263.
- Residential and commercial transaction sides closed increased 164% to 115,431.
- Completed residential and commercial transaction volume increased 210% to $40.1 billion.
- eXp Realty expanded into three new international locations in the second quarter of 2021, including Colombia, Spain and Israel, and announced plans to establish operations in Germany and Japan by the end of 2021. Subsequent to the end of the second quarter, the Company successfully launched in Panama.
- eXp Realty ended the second quarter of 2021 with a 70 global Net Promoter Score, a measure of agent satisfaction, through the Company’s intense focus on the agent experience. This compares to a 69 global Net Promoter Score at the end of the second quarter of 2020.
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