Exp World Holdings ((EXPI)) has held its Q4 earnings call. Read on for the main highlights of the call.
The recent earnings call of eXp World Holdings painted a picture of robust growth, especially in international markets and agent productivity, despite some setbacks. The company faced challenges with a net loss for the year and a decline in total agent count. Nevertheless, their significant achievements in revenue growth, productivity, and international expansion present a largely positive outlook.
International Revenue Growth
International revenues saw a remarkable growth of 63% over 2023, with an acceleration to 72% in the fourth quarter of 2024. This highlights eXp World Holdings’ successful expansion efforts and ability to capture market share globally.
Improved Agent Productivity
Agent productivity improvements were a standout, with a 12% increase in transaction count per agent and a 23% rise in sales volume per agent during Q4 2024. This indicates enhanced efficiency and effectiveness in the company’s operations.
Strong Adjusted EBITDA Growth
The company’s disciplined operations and cost management were evident as adjusted EBITDA grew by an impressive 151% in Q4 2024. This showcases the company’s ability to optimize its financial performance effectively.
Recognition and Awards
eXp Realty was recognized for the eighth consecutive year as one of the best places to work, reflecting its strong workplace culture and employee satisfaction.
Expansion and Innovation
The expansion to 27 countries, coupled with the introduction of innovative tools like Canva Pro and Sisu for agents, underscores the company’s commitment to growth and technological advancement.
Net Loss for 2024
Despite the growth achievements, eXp World Holdings reported a net loss from continued operations of $16.8 million for 2024, highlighting areas for financial improvement.
Agent Count Decline
The company experienced a year-over-year decline in total agent count, although efforts were focused on retaining productive agents.
Forward-Looking Guidance
Looking ahead, eXp World Holdings anticipates a 7% increase in revenue for 2024, reaching $4.6 billion, with a significant 12% rise in Q4 year-over-year. The North American Realty segment continues to be a key revenue driver. Despite the net loss, adjusted net income and EBITDA showed strong growth, and with 82,980 agents, the company remains well-positioned in the industry.
In summary, eXp World Holdings presented a mixed but largely positive earnings call, with significant growth in international revenues and agent productivity, despite challenges with a net loss and agent count decline. The company’s forward-looking guidance suggests continued growth and strategic focus on innovation and expansion.