eXp World Holdings Q3 2024 slides: international growth and productivity gains drive results

eXp World Holdings, Inc. (NASDAQ:EXPI) presented its third-quarter 2024 financial results on November 7, 2024, highlighting revenue growth of 2% year-over-year despite a decline in agent count. The company’s strategic focus on agent productivity and international expansion appears to be yielding positive results, with adjusted EBITDA increasing 15% compared to the same period last year.

Quarterly Performance Highlights

eXp World Holdings reported revenue of $1,231.2 million for Q3 2024, up 2% from $1,212.8 million in Q3 2023. This growth came despite a 4.4% decrease in agent count, which fell to 85,249 from 89,156 a year earlier. The company’s agent Net Promoter Score (aNPS) improved to 76 from 74 in the prior-year period, indicating strengthened agent satisfaction.

As shown in the following consolidated key metrics chart, the company achieved a 7% increase in overall sales productivity, which helped drive a 6% increase in gross profit and a 15% increase in adjusted EBITDA:

Real estate sales volume increased to $50.8 billion, up 4.7% from $48.5 billion in Q3 2023, reflecting higher home sales prices and improved agent productivity. However, the company reported a net loss of $8.5 million for the quarter.

The following waterfall chart illustrates the components driving the revenue change from Q3 2023 to Q3 2024:

Strategic Initiatives

International Expansion

One of the most significant growth drivers for eXp has been its international operations, which saw revenue increase by 63% year-over-year in Q3 2024. The international segment demonstrated impressive metrics across the board, with a 60% increase in sales units, 78% increase in productivity, and 66% increase in sales volume.

The company announced upcoming expansion into three new countries: Türkiye, Peru, and Egypt, continuing its global growth strategy. eXp also highlighted HomeHunter.Global, a third-party tool that helps agents worldwide find and curate properties.

Luxury Market Focus

eXp is making significant inroads in the luxury real estate market, with its eXp Luxury Membership growing 94% year-over-year. On October 18, the company acquired LUXVT, a marketing technology company specializing in luxury real estate, to strengthen its position in this high-value segment.

The company reported that eXp Luxury Members leveraged the platform to promote nearly $1 billion in luxury listing inventory in Q3 2023, with that figure growing over 200% in Q3 2024.

Technology and Brand Evolution

eXp is heavily investing in AI-based technology to enhance agent productivity and operational efficiency. The company is developing AI-driven workflow automation, custom GPT assistants, and 24/7 support systems for agents. eXp has also formed an enterprise partnership with OpenAI to further advance its AI capabilities.

The company unveiled a brand evolution during the quarter, modernizing its visual identity by shifting from Royal Blue to Dark Navy as its primary brand color and aligning all supporting product and program logos for overall brand consistency.

eXp’s brand awareness efforts appear to be paying off, with the company garnering 7,768 pieces of earned media coverage generating an estimated 14.7 billion impressions. Coverage appeared in major outlets including Associated Press, CBS News MoneyWatch, CNBC, CNN, and The New York Times (NYSE:NYT).

Financial Analysis

eXp’s segment financial highlights show that North American Realty remains the dominant revenue generator at $1,206.7 million, while International Realty contributed $24.2 million. From an adjusted EBITDA perspective, North American Realty generated $28.9 million, while International Realty posted a loss of $1.7 million, reflecting continued investment in global expansion.

The company maintained a strong cash position of $130.4 million, up 8% compared to the prior year. eXp returned $42.5 million to shareholders during the quarter through share repurchases ($35.0 million) and dividend distributions ($7.5 million).

The following financial summary highlights key metrics from the quarter:

Forward-Looking Statements

eXp’s presentation emphasized its continued focus on attracting and retaining high-producing agents. Data presented shows that the majority of departing agents (77.9%) come from the lowest-producing cohort (0-2 sales), while high-producing agents are significantly less likely to leave the company.

Looking ahead, eXp appears committed to its strategy of prioritizing agent productivity over raw agent count. The company’s investments in AI technology, international expansion, and the luxury market segment position it to potentially weather ongoing challenges in the U.S. real estate market.

However, investors should note that more recent data suggests continued challenges. According to an earnings report for Q1 2025, eXp experienced a revenue shortfall compared to forecasts, with revenue of $954.9 million falling below the anticipated $997 million. This resulted in a 1.96% decline in the stock price in after-hours trading on that report date.

As of the most recent trading data, eXp World Holdings stock (NASDAQ:EXPI) closed at $9.31, up 1.75% in the previous session, with the stock trading at $9.22 in premarket activity, down 0.97%. The company’s current market position places it well below its 52-week high of $15.39, though above its 52-week low of $6.90.

Full presentation:

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