Release Date: February 20, 2025

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 7% increase in revenue for 2024, reaching $4.6 billion, showcasing the strength and resilience of its business model.
• International revenues grew significantly by 63% over 2023, with a 72% increase in the fourth quarter alone, highlighting the company's successful global expansion efforts.
• The company maintained a strong agent net promoter score of 77, indicating high satisfaction and loyalty among its agent community.
• eXp World Holdings Inc (NASDAQ:EXPI) achieved an adjusted EBITDA of $75.5 million for 2024, representing a 16% increase year over year, demonstrating effective cost management and operational efficiency.
• The company continues to expand its international presence, with plans to open in additional countries such as Turkey, Peru, and Egypt, enhancing its global footprint and growth potential.

Negative Points

• eXp World Holdings Inc (NASDAQ:EXPI) reported a net loss from continued operations of $16.8 million for 2024, indicating challenges in achieving profitability.
• The company faced a $34 million litigation contingency and a $4.9 million impairment charge, impacting its financial performance.
• Despite revenue growth, the macroeconomic environment remains challenging, with high interest rates affecting the housing market.
• The company's total agent count decreased year over year, although it focused on retaining more productive agents.
• International expansion, while promising, involves significant costs and infrastructure investments, which may delay overall profitability in new markets.

Q & A Highlights

• Warning! GuruFocus has detected 7 Warning Signs with EXPI.

Q: Glenn, how is international different than domestic US and Canada? A: Glenn Sanford, CEO: International markets are where the US and Canada were 30-40 years ago, lacking MLS systems. eXp is bringing a professionalizing influence, recognized for introducing new ways of working globally. We're expanding into countries like Peru, Egypt, and Turkey, and focusing on productive agent count as a key metric.

Q: Leo, what's your strategy to help eXp agents win in 2025? A: Leo Pereja, CEO of eXp Realty: Our strategy is to continue offering unparalleled opportunities for agents to grow their business. We focus on operational excellence, world-class technology partnerships, and improving our value stack. We're investing in agent incentive programs and training to support long-term growth.

Q: Wendy, which components of eXp's agent value stack are resonating most with agents recently? A: Wendy Forsyth, CMO of eXp Realty: Canva and CSU have been significant hits, aiding in marketing and productivity. Our Fast cap program has been instrumental in helping agents grow production. Our support teams are also crucial, resolving issues quickly and efficiently, which is vital for agent satisfaction.

Q: Kent, how are you thinking about building on the progress made in 2024 for 2025? A: Kent Chang, Principal Financial Officer: Our 2025 profitability will depend on the housing market. We're focusing on agent-based initiatives and investments, optimizing our cost structure, and maximizing productivity to drive long-term growth.

Q: How do you see AI impacting your business and the brokerage industry in the coming years? A: Glenn Sanford, CEO: AI will fundamentally change everything, automating repetitive tasks and improving processes like contract management. We're investing in AI to enhance efficiency and expect it to significantly alter our cost structure and operations.

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