Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, CALENDAR OF EVENTS

eXp World Holdings Reports Record Second-quarter Financial Results


Achieves Most Profitable Quarter in Company's History
Revenue Up 33% Year-over-year to $354 Million

BELLINGHAM, Wash., Aug. 05, 2020 (GLOBE NEWSWIRE) -- eXp World Holdings, Inc. (Nasdaq: EXPI), the parent company for eXp Realty and VirBELA, today announced financial results for the second quarter ended June 30, 2020.

eXp World Holdings reported its most profitable quarter in its history with net income of $8.3 million in the second quarter, which represents continued progress toward the company's goal of achieving positive earnings for a fiscal year. In addition, quarterly revenue grew 33% year over year to $354 million driven by eXp Realty's continued strength in agent count and transactions during an unprecedented time for the real estate industry and the global economy.

"Even in these uncertain times, eXp Realty continued to deliver on its value proposition to agents, brokers and consumers and report record financial results. We achieved the most profitable quarter in the company's more than 10-year history with a positive net income for the third quarter in a row," said eXp World Holdings CEO, Chairman and Founder Glenn Sanford.

"Due to the performance of our agents and the power of our cloud-based brokerage model, eXp Realty achieved exceptional results with strong growth in all areas, despite initial impacts on the housing market from business restrictions related to COVID-19. eXp Realty always has pursued the minimum footprint required to operate and was able to more easily reduce expenses due to the pandemic, something  that traditional brick-and-mortar brokerages and franchises were unable to realize. During the quarter, agents continued to join us at the highest rate in the industry due to our overall value proposition and the ability to support them in the current environment, ending the quarter with more than 31,000 agents.

"VirBELA expanded quickly during the quarter to keep up with demand as companies look to the future and how they will operate given all the uncertainties around physical office set-ups or how to hold events. We are engaged with hundreds of new and prospective clients, and VirBELA is positioned to substantially benefit from the global shift to remote work and events."

Second-quarter 2020 Financial Results Summary

Second-quarter 2020 Operating and Business Highlights

"As we look toward the second half of 2020, we anticipate the presence and influence of COVID-19 to linger, but eXp World Holdings' businesses are uniquely positioned to adapt and thrive," said eXp World Holdings CFO and Chief Collaboration Officer Jeff Whiteside. "Combine agent excellence that delivers increased sales volume and attracts top-producing agents with the advantages of our cloud-based brokerage model and it is a cycle of success. We expect that the eXp Realty business and our agents will continue to adjust to ongoing economic conditions in the housing market. We also plan to formally announce our expansion into new international markets as well as a strategic initiative in commercial real estate. At VirBELA, we see significant growth opportunities ahead as remote work, distance learning and virtual events become the norm during this time of physical distancing."

Second-half 2020 Business Outlook

eXp World Holdings Investor Q&A
An investor Q&A will be held Thursday, Aug. 6 at 8 a.m. PT / 11 a.m. ET in the VirBELA Open Campus in the Auditorium. A livestream also will be available at expworldholdings.com/events. The investor Q&A is open to investors, current shareholders and anyone interested in learning more about eXp World Holdings and its companies.

Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, which is a non-U.S. GAAP financial measure and may be different than similarly titled measures used by other companies. It is presented to enhance investors' overall understanding of the company's financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.

The company's Adjusted EBITDA provides useful information about financial performance, enhances the overall understanding of past performance and future prospects, and allows for greater transparency with respect to a key metric used by management for financial and operational decision-making. Adjusted EBITDA helps identify underlying trends in the business that otherwise could be masked by the effect of the expenses that are excluded in Adjusted EBITDA. In particular, the company believes the exclusion of stock and stock option expenses, provides a useful supplemental measure in evaluating the performance of operations and provides better transparency into results of operations.

The company defines the non-U.S. GAAP financial measure of Adjusted EBITDA to mean net income (loss), excluding other income (expense), income tax expense, depreciation and amortization; stock-based compensation expense, and stock option expense. Adjusted EBITDA may assist investors in seeing financial performance through the eyes of management, and may provide an additional tool for investors to use in comparing core financial performance over multiple periods with other companies in the industry.

Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of Adjusted EBITDA compared to Net Income (Loss), the closest comparable U.S. GAAP measure. Some of these limitations are that:

Safe Harbor Statement
The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Such forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to revise or update them. These statements include, but are not limited to, statements about the company's expansion, revenue growth, operating results, financial performance and net income changes. Such statements are not guarantees of future performance. Important factors that may cause actual results to differ materially and adversely from those expressed in forward-looking statements include changes in business or other market conditions; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the company's Securities and Exchange Commission filings, including but not limited to the most recently filed Annual Report on Form 10-K.

About eXp World Holdings
eXp World Holdings, Inc. (Nasdaq: EXPI) owns eXp Realty, Showcase IDX and VirBELA.

eXp Realty, The Real Estate Cloud Brokerage, is the fastest-growing, global residential real estate company with more than 32,000 agents in the United States, Canada, the United Kingdom and Australia. As a subsidiary of a publicly traded company, eXp Realty uniquely offers real estate professionals within its ranks opportunities to earn eXp World Holdings stock for production and contributions to overall company growth.

Showcase IDX is the leading real estate search technology company that helps agents market and grow their businesses and online presence. Showcase IDX's services include property search for online and mobile platforms, lead generation, state-of-the-art mapping, and CRM tools and integration.

VirBELA is an immersive technology platform for business, events and education. Its modern, cloud-based environment provides a virtual experience for workers, attendees, students and more to communicate, collaborate, meet and socialize. For more information, visit the company's website at virbela.com.

For more information, please visit the company's website at www.expworldholdings.com.

Connect with eXp World Holdings and its companies: https://expworldholdings.com/social

Reported Consolidated Results

EXP WORLD HOLDINGS, INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
     
   June 30, 2020  December 31, 2019
  (unaudited)  
ASSETS    
CURRENT ASSETS    
Cash and cash equivalents $63,551  $40,087 
Restricted cash  17,405   6,987 
Accounts receivable, net of allowance for credit losses of $1,260 and allowance for bad debt of $137, respectively  52,543   28,196 
Prepaids and other assets  3,302   3,549 
TOTAL CURRENT ASSETS  136,801   78,819 
Property, plant, and equipment, net  6,080   5,428 
Operating lease right-of-use assets  902   1,264 
Other noncurrent assets  7   16 
Intangible assets, net  2,837   2,677 
Goodwill  8,248   8,248 
TOTAL ASSETS $154,875  $96,452 
LIABILITIES AND EQUITY    
CURRENT LIABILITIES    
Accounts payable $1,642  $2,593 
Customer deposits  17,405   6,987 
Accrued expenses  53,839   31,034 
Current portion of long-term payable  970   916 
Current portion of lease obligation - operating lease  727   435 
TOTAL CURRENT LIABILITIES  74,583   41,965 
Long-term payable, net of current portion  1,585   1,530 
Long-term lease obligation - operating lease, net of current portion  175   829 
TOTAL LIABILITIES  76,343   44,324 
EQUITY    
Common Stock, $0.00001 par value 220,000 shares authorized; 70,579 issued and 68,532 outstanding in 2020; 66,199 issued and 65,274 outstanding in 2019  1   1 
Additional paid-in capital  160,643   130,682 
Treasury stock, at cost: 2,047 and 925 shares held, respectively  (20,610)  (8,623)
Accumulated deficit  (61,853)  (70,293)
Accumulated other comprehensive income  147   200 
Total eXp World Holdings, Inc. stockholders' equity  78,328   51,967 
Equity attributable to noncontrolling interest  204   161 
TOTAL EQUITY  78,532   52,128 
TOTAL LIABILITIES AND EQUITY $154,875  $96,452 
     
     


         
EXP WORLD HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands, except per share data)
     
  Three Months Ended June 30,  Six Months Ended June 30,
   2020   2019   2020   2019 
Revenues $353,525  $266,705  $624,946  $423,739 
Operating expenses        
Commissions and other agent-related costs  319,164   244,587   562,570   387,129 
General and administrative expenses  25,155   23,204   52,015   42,905 
Sales and marketing expenses  887   1,071   1,831   1,960 
Total operating expenses  345,206   268,862   616,416   431,994 
  Operating income (loss)  8,319   (2,157)  8,530   (8,255)
Other expense (income)        
Other expense (income), net  11   (10)  49   25 
Equity in losses of unconsolidated affiliates  12   -   34   - 
Total other expense (income), net  23   (10)  83   25 
Income (loss) before income tax expense  8,296   (2,147)  8,447   (8,280)
Income tax expense  61   48   70   212 
Net income (loss)  8,235   (2,195)  8,377   (8,492)
Net loss attributable to noncontrolling interest  40   -   63   - 
Net income (loss) attributable to eXp World Holdings, Inc. $8,275  $(2,195) $8,440  $(8,492)
         
Earnings (loss) per share        
Basic $0.12  $(0.04) $0.13  $(0.14)
Diluted $0.11  $(0.04) $0.12  $(0.14)
Weighted average shares outstanding        
Basic  67,756   61,526   66,751   61,138 
Diluted  72,661   61,526   72,050   61,138 
         
         


 
US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION
(In thousands)
         
  Three Months Ended June 30,  Six Months Ended June 30,
   2020   2019   2020   2019 
Net income (loss) $8,235  $(2,195) $8,377  $(8,492)
Other expense (income), net  23   (10)  83   25 
Income tax expense  61   48   70   212 
Depreciation & amortization expense (1)  856   534   1,781   974 
Stock compensation expense  3,246   3,587   6,765   7,257 
Stock option expense  1,227   1,831   2,300   3,046 
Adjusted EBITDA $13,648  $3,795  $19,376  $3,022 
         
(1) Note, stock payable amortization is included in other (expense)/income as such is not included in this amortization expense
         


Media Relations Contact:
Cynthia Nowak
Vice president, marketing and communications, eXp World Holdings
360.419.5285 ext. 116
[email protected]

Investor Relations Contact:
Raymond "RJ" Jones
Executive Vice President, finance and growth, eXp World Holdings
360.761.4393
[email protected]


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