eXp World Holdings, the parent company of virtual real estate brokerage eXp Realty, has announced its financial results for the first quarter of 2023 with significant drops in revenue and profit.
The company reported a 16 per cent decrease in revenue, which totaled $850.6 million in the first quarter, compared to the same year-ago quarter.
Gross profit also decreased 12 per cent to $73.1 million, while net income was $1.5 million, with earnings per diluted share of $0.01 compared to earnings per diluted share of $0.06 in the same quarter a year ago.
The number of real estate transactions closed dropped 10 per cent to 102,305, while transaction volume fell 20 per cent to $33.2 billion.
Despite the falls, eXp World Holdings reported a positive net income and generated more than $39 million of operating cash flow during the first quarter.
eXp World Holdings Chief Financial Officer and Chief Collaboration Officer Jeff Whiteside said the first quarter results were not all bad, especially given the current state of the property market.
“During the first quarter, the financial benefits of our variable cost model were apparent as we generated positive net income and over $39 million of operating cash flow despite the global residential real estate market downturn,” he said.
“Our International Realty segment had a record revenue quarter with 52 per cent year-over-year growth, and we remain focused on driving durable, profitable growth across the eXp World Holdings portfolio.”
Operational highlights during the March quarter include a partnership with Realty.com, a listings platform that connects qualified sellers and buyers directly with real estate agents, including exclusive enhanced services and pricing.
Appointing Peggi Pelosi to the company’s board of directors, and announcing Amy Somerville as chief executive officer of SUCCESS Enterprises were other milestones.
The number of agents and brokers on the eXp Realty platform increased 12 per cent to 87,327 and eXp Realty ended the first quarter of 2023 with a global Net Promoter Score of 70, a measure of agent satisfaction, as part of the Company’s intense focus on improving the agent experience.
eXp World Holdings founder, chairman, and CEO, Glenn Sanford, said since launching in 2009, the agent-centric brokerage had formed the model for many newer firms across the industry.
“As we iterate on the agent value proposition, our focus is to modernise our infrastructure for the next generation of real estate agents,” he said.
“Our cloud-based model and solid financial foundation enable us to continue investing in synergistic products and technologies that lay the groundwork for the future, while delivering an enhanced agent experience today.
“We continue to grow our agent-centric culture by amplifying our agents’ voices across the organisation through our Agent Advisory Councils, masterminds and our strong usage of the Net Promoter System (NPS), which captures ongoing agent and employee feedback.”
