Update: 08 Nov 2021 17:36 STI
Bellingham [US], Nov. 8 (ANI / NewsView): eXp World Holdings, Inc. (Nasdaq: EXPI), (or the “Company”), the holding company of eXp Realty®, Virbela and SUCCESS® Enterprises, today announced the financial results for the third quarter ended September 30, 2021 and announced that the board of directors of the company declared a cash dividend for the fourth quarter of 2021 on October 26, 2021.
The dividend is expected to be paid on November 29, 2021 to shareholders of record on November 15, 2021.
Financial highlights for the third quarter of 2021 compared to the same quarter of the previous year:
Revenue rose 97% to a record $ 1.1 billion.
Gross margin increased 70% to $ 79.5 million.
Net income increased 60% to $ 23.8 million, which includes an income tax provision of $ 12.9 million. Diluted earnings per share increased 50% to $ 0.15.
Adjusted EBITDA (a non-GAAP financial measure) increased 6% to $ 23.1 million.
As at September 30, 2021, cash and cash equivalents were $ 98.1 million, compared to $ 91.9 million as at September 30, 2020. The Company repurchased approximately $ 53.2 million of common shares during the third quarter of 2021.
The Company paid a cash dividend for the third quarter of 2021 of $ 0.04 per common share on August 30, 2021.
“Our global community of real estate professionals continued to grow significantly in the third quarter, indicating that our agent-centric model is increasingly resonating around the world,” said Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings. “As we evolve, our teams are equipped with value-added resources to unleash new methods of virtual collaboration and productivity. Being hyper-focused on feedback from our growing agent network enables our successful entry into new verticals.
“Likewise, we are preparing to launch our home loan joint venture, SUCCESS® Lending, with Kind Lending in several key markets. By leveraging technological efficiency, community values, and leveraging expert loan officers and top eXp agents, we aim to create a unique mortgage solution that delivers a better home buying experience. Our focus on innovation and commitment to our agents translates into sustainable growth for our businesses, ”concluded Sanford.
“The unique value proposition of our cloud-based brokerage model continues to attract a significant number of top performing agents to the eXp platform, as evidenced by record revenue of $ 1.1 billion. dollars we recorded for the third quarter, ”said Jeff Whiteside, CFO and Collaboration Director of eXp World Holdings.
“The continued success of our core eXp Realty business in the United States has enabled us to invest and accelerate our global expansion, expand our emerging business activities, continue our share buyback program and declare another payment of cash dividends to shareholders in the fourth quarter. , we will continue to make strategic investments in technologies focused on enhancing the capabilities of our agents, which will further differentiate eXp and drive the long-term growth of our business. “
Operational highlights for the third quarter of 2021 compared to the same quarter of the previous year:
Agents and brokers on the eXp Realty platform grew 82% to 65,269.
Residential transactions closed increased 72% to 130,029.
Residential transaction volume increased 97% to $ 46.6 billion.
eXp Realty expanded to two new international locations in the third quarter of 2021, including Panama and Germany.
Established SUCCESS® Lending, LLC, a residential lending joint venture with Kind Lending, LLC, and obtained approval to launch the platform in Colorado, Illinois and Tennessee.
eXp Realty closed the third quarter of 2021 with an overall Net Promoter Score of 69, a measure of agent satisfaction, thanks to the company’s focus on the agent experience.
Third Quarter 2021 Results – Virtual Fireside Chat
The company hosted a fireside chat and investor Q&A with eXp World Holdings Founder and CEO Glenn Sanford, CFO Jeff Whiteside and eXp Realty CEO Jason Gesing on Wednesday. November 3, 2021 at 8:30 a.m. PT / 11:30 a.m. ET. Justin Ages, Equity Research Analyst at Berenberg Capital Markets LLC, moderated the discussion.
Investor Q&A was open to investors, current shareholders, and anyone interested in learning more about eXp World Holdings and its companies.
Date: Wednesday, November 3, 2021
Time: 8:30 a.m. PT / 11:30 a.m. ET
Location: EXPI Campus. Join at expworldholdings.com/contact/download.
eXp World Holdings, Inc. (Nasdaq: EXPI) is the holding company of eXp Realty®, Virbela and SUCCESS® Enterprises.
eXp Realty is the world’s fastest growing real estate technology company with more than 67,000 agents in the United States, Canada, United Kingdom, Australia, South Africa, India, Mexico, Portugal, France, Puerto Rico, Brazil, Italy, Hong Kong, Colombia, Spain, Israel, Panama and Germany, and continues to expand internationally. As a publicly traded company, eXp World Holdings offers real estate professionals the unique opportunity to earn equity rewards for production goals and contributions to the overall growth of the business.
eXp World Holdings and its businesses offer a full suite of real estate brokerage and technology solutions, including its innovative residential and commercial brokerage model, professional services, collaborative tools and personal development. Cloud-based brokerage is powered by Virbela, a deeply social and collaborative immersive 3D platform, enabling agents to be more connected and productive. SUCCESS Enterprises, founded by SUCCESS magazine and its related media properties, was established in 1897 and is a leading personal and professional development brand and publication.
For more information, please visit expworldholdings.com.
Use of non-GAAP financial measures
In order to provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, which is a non-US GAAP financial measure and may differ from measures with the same title used by other companies.
It is presented to enhance investors’ overall understanding of the Company’s financial performance and should not be considered a substitute or superior to financial information prepared and presented in accordance with US GAAP.
The company’s adjusted EBITDA provides useful information on financial performance, improves the overall understanding of past performance and future prospects, and allows for greater transparency regarding a key metric used by management for decision-making financial and operational.
Adjusted EBITDA helps identify underlying business trends that might otherwise be obscured by the effect of expenses that are excluded from Adjusted EBITDA. In particular, the company believes that the exclusion of stock purchase costs and stock options is a useful additional measure for evaluating the performance of operations and provides greater transparency of operating results.
The company defines the non-US GAAP financial measure of Adjusted EBITDA as net income (loss), excluding other income (expense), tax benefits (expense), impairment, loss, ‘amortization, depreciation charges, stock-based compensation charges and stocks. options fees. Adjusted EBITDA can help investors see financial performance through the eyes of management and can provide an additional tool for investors to use when comparing basic financial performance over multiple time periods with other companies in the industry.
Adjusted EBITDA should not be viewed in isolation or as a substitute for financial information prepared in accordance with US GAAP. There are a number of limitations associated with the use of Adjusted EBITDA to net income (loss), the closest comparable measure under US GAAP. Some of these limitations are as follows:
Adjusted EBITDA excludes stock-based compensation costs and stock option costs, which have been and will continue to be for the foreseeable future significant recurring costs in the business and part importance of the compensation strategy; and
Adjusted EBITDA excludes certain recurring non-cash charges such as amortization of fixed assets, amortization of acquired intangible assets and impairment charges related to these long-lived assets, and although these are non-cash charges , impaired and depreciated assets may need to be replaced in the future.
Statements contained in this document may include statements of future expectations and other forward-looking statements that are based on the current beliefs and assumptions of management and involve known and unknown risks and uncertainties that could cause actual results, performance or events differ materially from those expressed or implied. in such statements. These forward-looking statements speak only as of the date hereof, and the company assumes no obligation to revise or update them.
These statements include, but are not limited to, statements on the economic and social effects of the COVID-19 pandemic; the continued growth of our agent and broker base; the expansion of our residential real estate brokerage activities in foreign markets; the demand for remote work and distance learning solutions and virtual events; the development of our commercial brokerage and our ability to attract commercial real estate brokers; and revenue growth and financial performance.
Such statements are not guarantees of future performance. Important factors that may cause actual results to differ materially and adversely from those expressed in forward-looking statements include changes in business or other market conditions; the difficulty of keeping expenditure growth at modest levels while increasing income; and other risks detailed from time to time in filings with the Company’s Securities and Exchange Commission, including, but not limited to, the latest Quarterly Report on Form 10-Q and the Annual Report on Form 10-K.
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