NASDAQ$EXPI

eXp World Holdings Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Achieved record profitability and revenue growth, driven by agent count and transactions.

eXp World Holdings reported its most profitable quarter in history, with net income of $8.3 million. Quarterly revenue grew 33% year-over-year to $354 million due to eXp Realty's agent count and transactions.

  • Revenue increased 33% to $354 million compared to Q2 2019.
  • Net income was $8.3 million, or $0.11 per diluted share, compared to a net loss of $2.2 million in Q2 2019.
  • The number of agents and brokers on the eXp Realty platform increased 54% to 31,091.
  • Residential transaction sides closed increased approximately 22% to 43,653.

Headline financials

Total Revenue

$354M

Previous: $267M+32.6%
EPS (adj)

$0.06

Previous: -$0.02+400.0%
Capital Expenditures

-$2.27M

Previous: -$1.91M-19.2%
Free Cash Flow

$6M

Previous: -$4.1M+246.3%
Net Income

$8.28M

Previous: -$2.2M+476.9%
Operating Income

$8.32M

Previous: -$2.16M+485.7%
Gross Profit

-$1.12M

Previous: $267M-100.4%
Cash & Equivalents

$63.6M

Previous: $31.5M+101.6%
Total Assets

$155M

Previous: $105M+46.9%
Stock-Based Comp

$1.23M

Previous: -$623K+296.8%

Revenue & EPS history

eXp World · Revenue · Quarterly

$354M

Q2 2020+32.6%vs Q2 2019
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Forward guidance

eXp World Holdings anticipates continued revenue growth, agent addition, and expansion in commercial real estate and international markets.

Tailwinds

  • Revenue is expected to continue to grow year over year in the third and fourth quarters of 2020 due to anticipated growth in home transaction sides and commission revenue in eXp Realty.
  • eXp Realty expects to continue to add agents at levels above what competing national brokerages experience.
  • eXp Realty’s strategic focus on international growth will intensify, with plans to launch operations in five new countries in the second half of 2020.
  • eXp intends to aggressively expand presence in commercial real estate by attracting a significant number of commercial real estate brokers to join the company in the next twelve months as a result of a strategic initiative.
  • Affiliated services businesses in mortgage, title and iBuying are anticipated to become complementary contributors to growth in the coming year.

Headwinds

  • The presence and influence of COVID-19 to linger.
  • Difficulty of keeping expense growth at modest levels while increasing revenues.
  • Changes in business or other market conditions.
  • Other risks detailed from time to time in the company’s Securities and Exchange Commission filings.
  • Adjust to ongoing economic conditions in the housing market.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+1.3%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+3.2%

Avg return

30 days after

43%

19 / 44 earnings

Positive

+42.1%

Q2 2021

Best reaction

-14.0%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.9%-28.0%-28.8%
Q4 2025-2.7%-7.9%-19.8%
Q3 2025+11.2%+11.3%+12.8%
Q1 2025-14.0%-9.8%+1.8%
Q4 2024-9.5%-7.8%-12.2%
Q3 2024-2.5%+1.1%-7.6%
Q2 2024-9.6%-10.8%-17.2%
Q1 2024+13.0%+20.2%+12.6%
Q4 2023-1.4%+11.0%-11.8%
Q3 2023+7.0%+2.2%-2.1%
Q2 2023+0.1%+2.2%-21.3%
Q1 2023+11.1%+13.2%+33.2%
Q4 2022-6.5%-2.0%-3.2%
Q3 2022-13.7%-15.6%-1.6%
Q2 2022-4.6%+7.2%-20.7%
Q1 2022+2.2%-8.2%-2.8%
Q4 2021+11.9%+12.5%-8.1%
Q3 2021-11.1%-12.3%-33.1%
Q2 2021+42.1%+52.9%+41.8%
Q1 2021-8.5%-13.0%+9.9%
Q4 2020+14.3%-32.7%-30.9%
Q3 2020-13.6%-7.7%+22.7%
Q2 2020+16.0%+28.4%+69.2%
Q1 2020+2.7%+1.5%+36.4%
Q4 2019+18.8%+10.6%-4.0%
Q3 2019+0.0%+4.6%+22.8%
Q2 2019-9.8%-6.1%-17.0%
Q1 2019-1.3%-4.9%+0.3%
Q4 2018+6.2%+5.1%-3.1%
Q3 2018-5.1%-0.8%-19.3%
Q2 2018-6.0%-6.9%+0.1%
Q4 2017+9.6%+16.5%+46.5%
Q1 2018+9.6%+16.5%+46.5%
Q3 2017+0.0%-1.7%+24.0%
Q2 2017+2.4%+3.2%-11.8%
Q1 2017+0.0%-1.4%-15.6%
Q4 2016-1.1%+0.8%-3.3%
Q3 2016-1.8%+3.7%+0.2%
Q2 2016-1.4%-3.4%+41.2%
Q1 2016+5.5%
Q4 2015+10.6%
Q3 2015-6.8%
Q2 2015+1.2%
Q4 2014+0.0%

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