NASDAQ$EXPI

eXp World Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

eXp World Holdings' financial results for Q2 2023 were announced, revealing a profitable quarter despite a decrease in revenue and transaction volume.

eXp World Holdings reported a decrease in revenue by 13% to $1.2 billion, but still achieved a net income of $9.4 million. The company's agent count grew by 7% year-over-year, reaching over 88,000 agents. They also generated $64.6 million in adjusted operating cash flow and declared a cash dividend of $0.05 per share for Q3 2023.

  • Revenue decreased by 13% to $1.2 billion.
  • Net income stood at $9.4 million, with earnings per diluted share of $0.06.
  • Agent count increased by 7% to over 88,000 agents.
  • Adjusted operating cash flow was $64.6 million.

Headline financials

Total Revenue

$1.23B

Previous: $1.42B-12.9%
EPS (adj)

$0.06

Previous: $0.06+0.0%
Agent Count

88.2K

No prior period
Capital Expenditures

-$3.43M

Previous: -$8.08M+57.5%
Free Cash Flow

$5.99M

Previous: $1.28M+367.2%
Net Income

$9.42M

Previous: $9.36M+0.7%
Operating Income

$11.1M

Previous: $11.6M-4.7%
Gross Profit

-$2.47M

Previous: -$608K-306.3%
Cash & Equivalents

$125M

Previous: $135M-7.5%
Total Assets

$483M

Previous: $507M-4.9%

Revenue & EPS history

eXp World · Revenue · Quarterly

$1.23B

Q2 2023-12.9%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

While high mortgage rates are expected to persist in the short term, consumer price inflation has started to cool down in our core North American market, and forward interest rate curves suggest that rates may now be at or near peak levels. We are optimistic that lower mortgage rates will unleash significant pent-up demand as affordability improves and buyers can once again meet seller price objectives.

Tailwinds

  • Consumer price inflation has started to cool down in our core North American market.
  • Forward interest rate curves suggest that rates may now be at or near peak levels.
  • Lower mortgage rates will unleash significant pent-up demand.
  • Improved affordability for buyers.
  • Buyers can once again meet seller price objectives.

Headwinds

  • High mortgage rates are expected to persist in the short term.
  • Slower housing market impacts productivity.
  • Lower transaction volume.
  • Buyers kept on the sidelines.
  • Persistently high mortgage rates.

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 2023

Historical avgQ2 2023

+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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