• Revenue: $1,295 million, a 5% increase year-over-year.

• Adjusted EBITDA: $32.9 million, up 22% year-over-year.

• Net Income: $11.8 million, up 4% year-over-year.

• Operating Cash Flow: $60.4 million.

• Share Repurchase: $48.2 million during the quarter.

• SG&A Expenses: $61.2 million, down 6% year-over-year.

• Real Estate Sales Transactions: Increased by 1% year-over-year.

• Agent Productivity: Increased by 6%.

• International Revenue Growth: 69% year-over-year.

• North American Adjusted EBITDA: $38.5 million, a 30% increase year-over-year.

• International Adjusted EBITDA Loss: $2.4 million, a 37% improvement from prior year.

• Warning! GuruFocus has detected 5 Warning Signs with EXPI.

Release Date: July 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• eXp World Holdings Inc (NASDAQ:EXPI) reported a 5% increase in revenue year-over-year, driven by higher real estate sales volume and increased agent productivity.

• The company's Net Promoter Score (NPS) improved from 72 to 76, indicating enhanced agent satisfaction and service quality.

• International revenues jumped by 69% year-over-year, showcasing strong performance in sales volume and productivity.

• The company successfully reduced its SG&A expenses in North American Realty by $4 million over the previous year.

• eXp World Holdings Inc (NASDAQ:EXPI) achieved a 22% year-over-year increase in adjusted EBITDA, reflecting solid execution and cost management.

Negative Points

• The agent count declined by 1% year-over-year, reflecting challenging market conditions and strategic decisions to remove unproductive agents.

• Despite industry-wide challenges, eXp Realty's home sale transactions in the US were down 3% year-to-date.

• The company anticipates continued downward pressure on US existing home sales in the next quarter due to macroeconomic uncertainties.

• Legal expenses related to antitrust lawsuits have increased, impacting overall financial performance.

• The company is facing challenges in adapting to industry changes, such as the requirement for buyer broker agreements, which may lead to operational complexities.

Q & A Highlights

Q: Glenn, where are you spending most of your time and focus? A: Glenn Sanford, CEO, is focusing on the international side of the business. He recently attended the first international EXPCON in Lisbon, Portugal, and is working directly with the international team to build new systems and refresh the agent value proposition in various countries. He plans to attend more international meetings in Europe leading up to EXPCON.