EXp World Holdings, the parent company of eXp Realty, has ridden the coronavirus-induced housing boom to its sixth consecutive record-breaking quarter, according to its third-quarter 2020 earnings released on Wednesday. The company reported $1.1 billion in revenue, an increase of 97 percent year over year.
“Our global community of real estate professionals continued to expand significantly in the third quarter, indicating our agent-centric model is increasingly resonating throughout the world,” eXp World Holdings Founder, Chairman and CEO Glenn Sanford said in a written statement. “As we scale, 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 network of agents enables our successful entry into new verticals and markets,” he added.
The company continued to be profitable with a net income of $23.8 million — a 60 percent increase from the previous year when the company bounced back with a net income of $14.9 million after a year of losses. EXp’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) also increased 6 percent to $23.1 million.
On the operations side, eXp Chief Financial Officer and eXp World Holdings Chief Collaboration Officer Jeff Whiteside said the company’s cloud-based brokerage model and a growing number of ancillary offerings have resulted in booming agent count growth.
In the third quarter, eXp’s agent and broker count increased 82 percent to 65,269, as the company widened its international footprint to Germany and Panama. The brokerage’s closed residential transaction sides increased 72 percent to 130,029, which translates to a residential transaction volume of $46.6 billion (+97 percent y-o-y).
“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 reflected by the record $1.1 billion in revenue we reported for the third quarter,” Whiteside said. “As we look ahead, we will continue making strategic investments in technologies that focus on enhancing our agents’ capabilities, which will further differentiate eXp and drive long-term growth of our business.”
Looking forward, Sanford said the company will focus on launching its residential lending joint venture with Kind Lending, SUCCESS Lending.
“Similarly, we are preparing to launch our residential lending joint venture, SUCCESS® Lending, with Kind Lending across several key markets,” he said. “Building upon technology-driven efficiencies, community values and leveraging expert loan officers and top eXp agents, we aim to create a unique mortgage solution that provides a better homebuying experience.”
“Our focus on innovation and commitment to our agents, translates to sustainable growth of our businesses,” he added.