The virtual, cloud-based real estate brokerage nearly doubled its revenue but still posted a net loss in the second quarter.
EXp World Holdings, the parent company of the virtual, cloud real estate brokerage eXp Realty, continues to grow at a rapid pace. The publicly-traded company announced Thursday it more than doubled revenue year-over-year to $266.7 million, a 104 percent increase from the second quarter of 2018.
“The second quarter of 2019 was highlighted by the continued growth and productivity by agents in our cloud-based brokerage,” eXp World Holdings CEO Glenn Sanford said in a statement. “We grew revenues 104 percent to a record $267 million in the second quarter, which was driven by a record number of transactions and agents at eXp Realty.”
Despite that growth, the company’s losses widened slightly, posting a net loss of $2.2 million, a year-over-year increase of 16 percent.
By the end of the second quarter, agent count for the brokerage had surpassed the 20,000 mark, nearly double the number of agents it had in the second quarter of 2018. The company’s agent closed 35,837 transactions for $10.3 billion, increases of 80 percent and 94 percent, year-over-year, respectively.
“As agents join eXp Realty and build their business, we’ve noticed a steady increase in productivity, especially for agents who have been with us for over a year, driven by top agents and teams joining the company as well as the development and training programs we offer to all agents,” Sanford said.
The company is setting its sites on launching an affiliated services division sometime in the third quarter of 2019, according to the earnings release. The company is developing a mortgage, title and home warranty platform.
In an effort to work another revenue stream, the company is also expanding the engineering team of VirBELA, the virtual, cloud software company it acquired last year, that powers its virtual brokerage.
“We’ve also taken charge on several other initiatives to grow revenue and profitability as we move forward, such as expanding VirBELA’s engineering team and beginning to test a software-as-a-service cloud coworking space as well as developing our affiliated services platform that is expected to launch in the third quarter of 2019, including mortgage, title and home warranty,” Sanford said. “Taken together, we will continue to execute upon our growth strategy while methodically investing back into our platform to ultimately support a much larger, more mature organization.”