- Virtual brokerage shows booming growth in fourth quarter and full year 2016 earnings results.
A brokerage in the cloud launched in 2009 just had a major growth spurt: eXp Realty almost tripled in size in 2016, according CEO, founder and chairman Glenn Sanford in announcing the company’s annual results and fourth quarter figures.
Revenues rose 137 percent in 2016 for eXp World Holdings, the holding company for eXp Realty, elevating to $54.2 million for the year’s end, compared with $22.9 million in 2015.
The growth is a result of the increased agent count and corresponding higher revenues from eXp Realty, the company said.
In the fourth quarter of 2016, eXp Realty added 585 agents and brokers to its platform, an increase of over 300 percent on the same quarter in 2015. It added a total of 1,537 agents and brokers in 2016, an increase of 287 percent.
eXp Realty, partially agent-owned, ended the 2016 financial year with 2,401 real estate professionals across 42 states, the District of Columbia and Alberta, Canada. On March 15, the brokerage passed the 3,000 agent mark.
Fourth quarter and full year numbers
Adjusted EBITDA (Earnings before interest, tax, depreciation and amortization) increased 397 percent to $1.6 million in 2016, compared with $300,000 ($0.3 million) in 2015.
Sanford said that 2016 established the Bellingham, Washington-based company as one of the largest and fastest growing brokerages in North America.
“Our strong revenue and adjusted EBITDA growth in 2016 showcases the leverage in our model which we expect to continue to be evident as we execute our overall strategy,” Sanford added.
“Driving this is our cloud-based brokerage model which creates a strong value proposition for agents and has allowed us to attract some of the top producers, as well as some of the highest ranking teams throughout the U.S. and Canada.”
One of the features of eXp Realty is a revenue-sharing program that pays agents a percentage of gross commission income earned by the agents or brokers they attract to the company.
Operating loss for the full year was $26 million, an increase from $4.5 million in 2015.
This was primarily due to to an increase in share price during the period as well as a significant increase in non-cash stock compensation expense of $4.3 million resulting from agents joining the eXp Realty platform.
Revenues increased 181 percent to $18 million in the fourth quarter of 2016 compared with $6.4 million in the fourth quarter of 2015.