EXp Realty saw its revenues and profits continue to grow in the first quarter of 2022 as the company undergoes an ambitious global expansion, according to an earnings report released Wednesday morning.
Compared to the first quarter of 2021, the company saw its revenue increase 73 percent to $1 billion, and its gross profits increase 56 percent to $83.5 million, according to data released ahead of a Wednesday earnings call. At the same time, its net income increased 83 percent to $8.9 million and earnings per diluted share increased 100 percent to 0.6 percent, the company said.
The growth in profits during the first quarter comes as the company executes an ambitious expansion plan, achieving an agent count of approximately 80,000 after clocking in at 53,379 agents in April 2021.
“EXp’s strong momentum continued through the first quarter as even more agents joined what we believe is the most agent-centric brokerage on the planet, fueling the fastest-growing agent base in the history of real estate to help clients and customers buy, sell and/or lease properties around the world,” eXp World Holdings CEO Glenn Sanford said in a statement. “EXp was built to thrive in challenging market conditions and despite the headwinds affecting the broader housing market, we are well-positioned to capture increased market share.”
The company has set it sights on reaching an agent count of 100,000 by the end of 2022, Sanford said.
“It is our goal to be over 100,000 agents and brokers worldwide by the end of the year through continued iteration on the agent value proposition,” he said. “With each milestone and enhancement, we redefine the real estate industry and empower agents with aligned compensation structures and industry-leading technology to grow their businesses and serve their clients.”
Along with growing its agent count by 55 percent in one year, eXp increased its transaction volume by 69 percent to $41.4 billion and grew its amount of closed transactions by 55 percent to 114,305. At the end of March, cash and cash equivalents were at $130.1 million, up from $104.1 million a year ago.
EXp leadership said their growth was driven primarily by their increasing agent count, with more transactions being undertaken by eXp agents across the globe, and would be sustained by its continued investments into technology and operational systems.
“We continue to bolster our competitive position in the U.S. and internationally by investing significantly in operational efficiencies,” Jeff Whiteside CFO and chief collaboration officer of eXp said in a statement. “Our new global financial system implemented this month will seamlessly support our growing global footprint, while we continue to invest in initiatives that differentiate our value proposition to agents and provide additional revenue streams for the company.”
While the company’s earnings have been bolstered by low inventory and high prices across the United States housing market, Sanford said during an earnings call on May 4 that he anticipates a slowdown in the market during the third or fourth quarter of 2022, and that the federal reserve will continue to raise interest rates.
Sanford expects eXp to perform well under a downturn, however, pointing to previous examples including the second quarter of 2020 during a brief covid-induced downturn when the company managed to maintain profitability.
“We’ve believed for some time that when the next down market arrives we’re in a very unique position and strong position to grow as a company,” he said.
The CEO predicted that 2023 would be the year the company saw its first $2 billion quarter after consistent quarters of breaking $1 billion, and that they would eventually reach an agent count of half a million by continuing to make their model more appealing for agents.
“If we build it they will come,” Sanford said. “We just continue to work on building the best real estate brokerage on the planet.”