EXp World Holdings, the parent company of virtual cloud real estate brokerage eXp Realty, continued its precipitous growth in the third quarter of 2019, posting $282 million in revenue, a year-over-year growth of nearly 80 percent.
Overall losses for the company also narrowed, as eXp World Holdings posted a net loss of $1.8 million, compared to a net loss of $4.6 million in the third quarter of 2018.
“In addition to revenue growth of nearly 80 percent year-over-year this quarter, improvement in managing our allocation of capital enhanced our measures of profitability,” Jeff Whiteside, eXp World Holdings CFO and chief collaboration officer, said in a statement.
“Notably, as we focused on growth, our gross margin expanded, our net loss compressed, and our adjusted [earnings before interest, tax, depreciation and amortization] grew favorably in the quarter compared to the prior year,” Whiteside added. “We remain intensely focused on continuously improving our execution as we scale.”
The company posted an adjusted loss per share of $0.03, beating the consensus estimate of a $0.09 per share loss. The company also beat revenue expectations by nearly $8 million.
The number of agents and brokers at eXp increased 66 percent year-over-year to 23,034 at the end of the third quarter of 2018. Transaction sides also increased 66 percent year-over-year to 38,567. Transaction volume in the third quarter was $11.1 billion, a year-over-year increase of 79 percent.
“Rapid growth of eXp Realty continued this quarter,” eXp World Holdings CEO Glenn Sanford said in a statement. “The most agent-centric real estate brokerage on the planet is increasingly attracting and retaining agents who want the freedom, convenience and control over their long-term destinies that our unique model provides. We remain laser-focused on delivering an exceptional agent experience, which enables our agents to accomplish what they set out to do with their businesses.”
The company launched, in the third quarter, a preferred partner network to connect agents and their clients with a number of homebuying and selling services including mortgage, moving, title and escrow services.
VirBELA, the vendor of eXp Realty’s virtual brokerage platform – which is also owned by eXp World Holdings – also secured a number of government contracts, according to the earnings report.