Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2024 shares | |
Document And Entity Information | |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2024 |
Document Quarterly Report | true |
Document Transition Report | false |
Entity Registrant Name | EXP WORLD HOLDINGS, INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-38493 |
Entity Tax Identification Number | 98-0681092 |
Entity Address, Address Line One | 2219 Rimland Drive, Suite 301 |
Entity Address, City or Town | Bellingham |
Entity Address, State or Province | WA |
Entity Address, Postal Zip Code | 98226 |
City Area Code | 360 |
Local Phone Number | 685-4206 |
Title of 12(b) Security | Common Stock, $0.00001 par value per share |
Trading Symbol | EXPI |
Security Exchange Name | NASDAQ |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 154,846,563 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
Entity Central Index Key | 0001495932 |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 109,169 | $ 125,873 |
Restricted cash | 74,735 | 44,020 |
Accounts receivable, net of allowance for credit losses of $2,363 and $2,204, respectively | 105,325 | 85,343 |
Prepaids and other assets | 9,517 | 9,275 |
Current assets of discontinued operations | 1,631 | 1,964 |
TOTAL CURRENT ASSETS | 300,377 | 266,475 |
Property, plant, and equipment, net | 12,231 | 12,967 |
Operating lease right-of-use assets | 7 | 10 |
Other noncurrent assets | 11,058 | 7,400 |
Intangible assets, net | 6,644 | 7,012 |
Deferred tax assets | 73,955 | 69,034 |
Goodwill | 16,682 | 16,982 |
Noncurrent assets of discontinued operations | 5,795 | 5,788 |
TOTAL ASSETS | 426,749 | 385,668 |
CURRENT LIABILITIES | ||
Accounts payable | 8,986 | 8,788 |
Customer deposits | 75,789 | 44,550 |
Accrued expenses | 102,104 | 86,483 |
Litigation contingency | 16,000 | |
Current portion of lease obligation - operating lease | 7 | 10 |
Current liabilities of discontinued operations | 1,406 | 1,809 |
TOTAL CURRENT LIABILITIES | 204,292 | 141,640 |
Long-term payable | 20 | 20 |
TOTAL LIABILITIES | 204,312 | 141,660 |
EQUITY | ||
Common Stock, $0.00001 par value 900,000,000 shares authorized; 186,361,476 issued and 154,959,064 outstanding at March 31, 2024; 183,606,708 issued and 154,669,037 outstanding at December 31, 2023 | 2 | 2 |
Additional paid-in capital | 841,576 | 804,833 |
Treasury stock, at cost: 31,514,913 and 28,937,671 shares held, respectively | (578,591) | (545,559) |
Accumulated (deficit) earnings | (39,993) | (16,769) |
Accumulated other comprehensive (loss) income | (557) | 332 |
Total eXp World Holdings, Inc. stockholders' equity | 222,437 | 242,839 |
Equity attributable to noncontrolling interest | 1,169 | |
TOTAL EQUITY | 222,437 | 244,008 |
TOTAL LIABILITIES AND EQUITY | $ 426,749 | $ 385,668 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for credit losses and bad debt | $ 2,363 | $ 2,204 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 186,361,476 | 183,606,708 |
Common stock, shares outstanding | 154,846,563 | 154,669,037 |
Treasury stock, shares | 31,514,913 | 28,937,671 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Revenues | $ 943,054 | $ 848,453 |
Operating expenses | ||
Commissions and other agent-related costs | 864,746 | 776,838 |
General and administrative expenses | 62,582 | 54,626 |
Technology and development expenses | 14,761 | 14,060 |
Sales and marketing expenses | 3,139 | 2,927 |
Litigation contingency | 16,000 | |
Total operating expenses | 961,228 | 848,451 |
Operating (loss) income | (18,174) | 2 |
Other (income) expense | ||
Other (income) expense, net | (1,188) | (874) |
Equity in losses of unconsolidated affiliates | 149 | 342 |
Total income expense, net | (1,039) | (532) |
Income (loss) before income tax expense | (17,135) | 534 |
Income tax benefit | (3,305) | (1,458) |
Net (loss) income from continuing operations | (13,830) | 1,992 |
Net loss from discontinued operations, net of tax | (1,809) | (539) |
Net (loss) income | $ (15,639) | $ 1,453 |
Basic, net (loss) income from continuing operations (in dollars per share) | $ (0.09) | $ 0.01 |
Basic, net loss from discontinued operations (in dollars per share) | (0.01) | 0 |
Basic, net (loss) income (in dollars per share) | (0.10) | 0.01 |
Diluted, net (loss) income from continuing operations (in dollars per share) | (0.09) | 0.01 |
Diluted, net loss income from discontinued operations (in dollars per share) | (0.01) | 0 |
Diluted, net (loss) income (in dollars per share) | $ (0.10) | $ 0.01 |
Weighted average shares outstanding - Basic | 154,740,334 | 152,546,766 |
Weighted average shares outstanding - Diluted | 154,740,334 | 155,668,712 |
Comprehensive (loss) income: | ||
Net (loss) income | $ (15,639) | $ 1,453 |
Other comprehensive (loss) income: | ||
Foreign currency translation gain (loss), net of tax | (889) | 643 |
Comprehensive (loss) income attributable to eXp World Holdings, Inc. | $ (16,528) | $ 2,096 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated earnings (deficit) | Accumulated other comprehensive income (loss) | Noncontrolling Interest | Total |
Beginning of period at Dec. 31, 2022 | $ 2 | $ (385,010) | $ 611,872 | $ 20,723 | $ 236 | $ 1,169 | |
Repurchases of common stock | (29,916) | ||||||
Net (loss) income | 1,453 | $ 1,453 | |||||
Dividends declared and paid | (6,596) | ||||||
Shares issued for stock options exercised | 307 | ||||||
Agent growth incentive stock compensation | 8,668 | ||||||
Stock option compensation | 2,761 | ||||||
Agent equity stock compensation | 26,775 | ||||||
Foreign currency translation gain (loss) | 643 | 643 | |||||
Ending of period at Mar. 31, 2023 | 2 | (414,926) | 650,383 | 15,580 | 879 | 1,169 | 253,087 |
Beginning of period at Dec. 31, 2023 | 2 | (545,559) | 804,833 | (16,769) | 332 | 1,169 | 244,008 |
Repurchases of common stock | (33,032) | ||||||
Net (loss) income | (15,639) | (15,639) | |||||
Dividends declared and paid | (7,585) | ||||||
Shares issued for stock options exercised | 977 | ||||||
Agent growth incentive stock compensation | 7,908 | ||||||
Stock option compensation | 1,990 | ||||||
Agent equity stock compensation | 25,868 | ||||||
Foreign currency translation gain (loss) | (889) | (889) | |||||
Transactions with noncontrolling interests | (1,169) | ||||||
Ending of period at Mar. 31, 2024 | $ 2 | $ (578,591) | $ 841,576 | $ (39,993) | $ (557) | $ 0 | $ 222,437 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY | ||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.05 | $ 0.045 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
OPERATING ACTIVITIES | ||
Net (loss) income | $ (15,639) | $ 1,453 |
Reconciliation of net income (loss) to net cash provided by operating activities: | ||
Depreciation expense | 2,059 | 2,067 |
Amortization expense - intangible assets | 340 | 512 |
Allowance for credit losses on receivables/bad debt on receivables | 159 | (1,790) |
Equity in loss of unconsolidated affiliates | 149 | 342 |
Agent growth incentive stock compensation expense | 8,827 | 9,660 |
Stock option compensation | 1,990 | 2,761 |
Agent equity stock compensation expense | 25,868 | 26,775 |
Deferred income taxes, net | (4,786) | 277 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (20,141) | (10,808) |
Prepaids and other assets | (311) | (3,722) |
Customer deposits | 31,239 | 17,382 |
Accounts payable | 197 | (1,310) |
Accrued expenses | 14,703 | 17,200 |
Long term payable | (4,692) | |
Litigation contingency | 16,000 | |
Other operating activities | 37 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 60,654 | 56,144 |
INVESTING ACTIVITIES | ||
Purchases of property, plant, equipment | (1,323) | (1,432) |
Investments in unconsolidated affiliates | (3,807) | (350) |
Capitalized software development costs in intangible assets | (115) | |
NET CASH USED IN INVESTING ACTIVITIES | (5,245) | (1,782) |
FINANCING ACTIVITIES | ||
Repurchase of common stock | (33,032) | (29,916) |
Proceeds from exercise of options | 977 | 307 |
Transactions with noncontrolling interests | (1,169) | |
Dividends declared and paid | (7,585) | (6,596) |
NET CASH USED IN FINANCING ACTIVITIES | (40,809) | (36,205) |
Effect of changes in exchange rates on cash, cash equivalents and restricted cash | (589) | 594 |
Net change in cash, cash equivalents and restricted cash | 14,011 | 18,751 |
Cash, cash equivalents and restricted cash, beginning balance | 169,893 | 159,383 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE | 183,904 | 178,134 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION: | ||
Cash paid for income taxes | $ 1,109 | $ 1,089 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION eXp World Holdings, Inc. (“eXp,” or, collectively with its subsidiaries, the “Company,” “we,” “us,” or “our”) owns and operates a diversified portfolio of service-based businesses whose operations benefit substantially from utilizing our technology platform. We strategically prioritize our efforts to grow our real estate brokerage by strengthening our agent value proposition, developing immersive and cloud-based technology to enable our model and providing affiliate and media services supporting those efforts. Our real estate brokerage is now one of the largest and fastest-growing real estate brokerage companies in the United States and Canada and is rapidly expanding internationally. The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 22, 2024 (“2023 Annual Report”). In our opinion, the accompanying interim unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. In the first quarter of 2024, the Company determined that there has been a significant change to the Virbela business model. As our customers evolve post-COVID, including a return-to-work-offices, and in light of ongoing internal and external demand for web-accessible platforms and artificial intelligence solutions, we have experienced a decline in demand for our application-based platform, Virbela, and a rising interest in our web-accessible platform, Frame ® . Accordingly, the Company has begun the process of winding down the Virbela business, which includes closing out current contracts, and reducing its external customers and internal employee support. Further, the technology is being replaced with Virbela Frame ® technology that will be primarily utilized internally within the Company. The Company expects the process to wind down the Virbela business to be completed by the fourth quarter of 2024. As a result of this change, the Company has determined that Virbela qualifies for reporting as discontinued operations and will be reported as discontinued operations in the Company’s quarterly report on Form 10-Q for the period ended March 31, 2024 (the “Form 10-Q”). In accordance with Accounting Standards Codification (“ASC”) 205 – Presentation of Financial Statements, we will present the assets and liabilities of Virbela within discontinued operations in the Company’s condensed consolidated balance sheet and Virbela’s results of operations will be included in discontinued operations in the Company’s condensed consolidated statements of comprehensive income (loss). In prior years, Virbela represented an operating and reporting segment under ASC 280. Going forward, the remaining operations of Virbela will not meet the operating or reporting segment criteria, therefore, any operating results related to Virbela and Frame ® technologies will be included in the Other Affiliated Services segment. Prior year segment and financial statement information has been reclassified to reflect Virbela as discontinued operations . |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying interim unaudited condensed consolidated financial statements include the accounts of eXp and its consolidated subsidiaries, including those entities in which we have a variable interest of which we are the primary beneficiary. If the Company has a variable interest in an entity but it is not the primary beneficiary of the entity or exercises control over the operations and has less than 50% ownership, it will use the equity method or the cost method of accounting for investments. Entities in which the Company has less than a 20% investment and where the Company does not exercise significant influence are accounted for under the cost method. Intercompany transactions and balances are eliminated upon consolidation. Variable interest entities and noncontrolling interests A company is deemed to be the primary beneficiary of a variable interest entity (“VIE”) and must consolidate the entity if the company has both: (i) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. Joint ventures A joint venture is a contractual arrangement whereby the Company and other parties undertake an economic activity through a jointly controlled entity. Joint control exists when strategic, financial, and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control. Joint ventures are accounted for using the equity method and are recognized initially at cost. Joint ventures are typically included in the Other Affiliated Services unless the joint venture specifically supports one of the reportable segments. The Company has several joint venture investments. The operations of these joint ventures are not material to the Company’s financial position or results of operations. Use of Estimate s The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to allowance for credit losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, goodwill, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Reclassifications When necessary, the Company will reclassify certain amounts in prior-period financial statements to conform to the current period’s presentation. Prior year segment and financial statement information has been reclassified to reflect Virbela as discontinued operations. Restricted cash Restricted cash consists of cash held in escrow by the Company on behalf of real estate buyers. The Company recognizes a corresponding customer deposit liability until the funds are released. Once the cash transfers from escrow, the Company reduces the respective customers’ deposit liability. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown on the condensed consolidated statements of cash flows. Cash and cash equivalents Restricted cash Total Balance, March 31, 2023 $ 122,769 $ 55,365 $ 178,134 Balance, December 31, 2023 $ 125,873 $ 44,020 $ 169,893 Balance, March 31, 2024 $ 109,169 $ 74,735 $ 183,904 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 1 Months Ended |
Mar. 31, 2024 | |
DISCONTINUED OPERATIONS | |
DISCONTINUED OPERATIONS | 3 . DISCONTINUED OPERATIONS In accordance with ASC 205-20 , the results of the Virbela business are presented as discontinued operations in the condensed consolidated statements of comprehensive income and, as such, have been excluded from continuing operations. Further, the Company reclassified the assets and liabilities of the Virbela segment as assets and liabilities of discontinued operations in the consolidated balance sheets. The following tables present the information for Virbela’s operations for the three months ended March 31, 2024 and 2023, and the balance sheet information as of March 31, 2024 and December 31, 2023 (in thousands). ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS (Unaudited) March 31, 2024 December 31, 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,064 $ 991 Accounts receivable, net of allowance for credit losses of $16 and $99 , respectively 310 626 Prepaids and other assets 257 347 TOTAL CURRENT ASSETS 1,631 1,964 Property, plant, and equipment, net 9 11 Intangible assets, net 3,396 3,469 Deferred tax assets 2,390 2,308 TOTAL ASSETS $ 7,426 $ 7,752 LIABILITIES CURRENT LIABILITIES Accounts payable $ 26 $ 110 Accrued expenses 1,380 1,699 TOTAL CURRENT LIABILITIES 1,406 1,809 TOTAL LIABILITIES $ 1,406 $ 1,809 INCOME STATEMENT OF DISCONTINUED OPERATIONS (Unaudited) Three Months Ended March 31, 2024 2023 Revenues $ 649 $ 2,163 Operating expenses Commissions and other agent-related costs 679 721 General and administrative expenses 1,765 2,730 Technology and development expenses 116 351 Sales and marketing expenses (3) 36 Total operating expenses 2,557 3,838 Operating (loss) (1,908) (1,675) Other income Other income, net (17) (6) Total other income, net (17) (6) (Loss) before income tax expense (1,891) (1,669) Income tax benefit (82) (1,130) Net loss from discontinued operations ($ 1,809) ($ 539) |
EXPECTED CREDIT LOSSES
EXPECTED CREDIT LOSSES | 3 Months Ended |
Mar. 31, 2024 | |
EXPECTED CREDIT LOSSES | |
EXPECTED CREDIT LOSSES | 4. EXPECTED CREDIT LOSSES The Company is exposed to credit losses primarily through trade and other financing receivables arising from revenue transactions. The Company uses the aging schedule method to estimate current expected credit losses (“CECL”) based on days of delinquency, including information about past events and current economic conditions. The Company’s accounts receivable is separated into three categories to evaluate allowance under the CECL impairment model. The receivables in each category share similar risk characteristics. The three categories include agent non-commission based fees, agent short-term advances, and commissions receivable for real estate property settlements. The Company increases the allowance for expected credits losses when the Company determines all or a portion of a receivable is uncollectable. The Company recognizes recoveries as a decrease to the allowance for expected credit losses. Receivables from real estate property settlements totaled $100,529 and $81,004 of which the Company recognized expected credit losses of $2 and $- , respectively as of March 31, 2024 and December 31, 2023. As of March 31, 2024 and December 31, 2023 agent non-commission based fees receivable and short-term advances totaled $7,487 and $7,268 , of which the Company recognized expected credit losses of $2,363 and $2,204 , respectively. |
PLANT, PROPERTY AND EQUIPMENT,
PLANT, PROPERTY AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2024 | |
PLANT, PROPERTY AND EQUIPMENT, NET | |
PLANT, PROPERTY AND EQUIPMENT, NET | 5 . PLANT, PROPERTY AND EQUIPMENT, NET Plant, property and equipment, net consisted of the following: March 31, 2024 December 31, 2023 Computer hardware and software $ 38,372 $ 37,444 Furniture, fixture, and equipment 2,253 2,254 Total depreciable property and equipment 40,625 39,698 Less: accumulated depreciation (29,778) (27,733) Depreciable property, net 10,847 11,965 Discontinued operations (9) (11) Assets under development 1,393 1,013 Property, plant, and equipment, net $ 12,231 $ 12,967 For the three months ended March 31, 2024 and 2023 depreciation expense was $2,059 and $2,067 , respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 6. GOODWILL AND INTANGIBLE ASSETS Goodwill was $16,682 as of March 31, 2024 and $16,982 as of December 31, 2023. As of March 31, 2024, the Company recorded cumulative translation adjustment of ($300) related to Canadian goodwill. Additionally, if current assumptions and estimates, including projected revenues and income growth rates, terminal growth rates, competitive and consumer trends, market-based discount rates, and other market factors, are not met, or if valuation factors outside of the Company’s control change unfavorably, the estimated fair value of goodwill could be adversely affected, leading to a potential impairment in the future. For the three months ended March 31, 2024, no events occurred that indicated it was more likely than not that goodwill was impaired. The following tables present definite-lived intangible assets as of March 31, 2024 and December 31, 2023, in thousands: March 31, 2024 Gross Accumulated Net Carrying Amount Amortization Amount Trade name $ 2,661 ($ 1,071) $ 1,590 Existing technology 3,254 (1,351) 1,903 Non-competition agreements 461 (125) 336 Customer relationships 1,284 (675) 609 Licensing agreement 210 (210) - Intellectual property 2,836 (630) 2,206 Total intangible assets $ 10,706 ($ 4,062) $ 6,644 December 31, 2023 Gross Accumulated Net Carrying Operations Amortization Amount Trade name $ 2,672 ($ 1,030) $ 1,642 Existing technology 3,263 (1,122) 2,141 Non-competition agreements 468 (125) 343 Customer relationships 1,285 (652) 633 Licensing agreement 210 (210) - Intellectual property 2,836 (583) 2,253 Total intangible assets $ 10,734 ($ 3,722) $ 7,012 Definite-lived intangible assets are amortized using the straight-line method over an asset’s estimated useful life. Amortization expense for definite-lived intangible assets for the three months ended March 31, 2024 and 2023 was $340 and $512 , respectively. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | 7. STOCKHOLDERS’ EQUITY The following table represents a share reconciliation of the Company’s common stock issued for the periods presented: Three Months Ended March 31, 2024 2023 Common stock: Balance, beginning of quarter 183,606,708 171,656,030 Shares issued for stock options exercised 211,158 113,208 Agent growth incentive stock compensation 353,688 656,436 Agent equity stock compensation 2,189,922 2,106,369 Balance, end of quarter 186,361,476 174,532,043 The Company’s equity programs described below are administered under the stockholder approved 2015 Equity Incentive Plan. The purpose of the equity plan is to retain the services of valued employees, directors, officers, agents, and consultants and to incentivize such persons to make contributions to the Company and motivate excellent performance. Agent Equity Program The Company provides agents and brokers the opportunity to elect to receive 5% of commissions earned from each completed real estate transaction in the form of common stock (the “Agent Equity Program” or “AEP”). If agents and brokers elect to receive portions of their commissions in common stock, they are entitled to receive the equivalent number of shares of common stock, based on the fixed monetary value of the commission payable. The Company recognizes a 10% discount on these issuances for the period beginning January 1, 2024 through February 29, 2024, and a 5% discount on these issuances beginning as of March 1, 2024, as an additional cost of sales charge during the periods presented. During the three months ended March 31, 2024 and 2023, the Company issued 2,189,922 and 2,106,369 shares of common stock, respectively, to agents and brokers with a value of $25,868 and $26,775 , respectively, inclusive of discount. Agent Growth Incentive Program The Company administers an equity incentive program whereby agents and brokers become eligible to receive awards of the Company’s common stock through agent attraction and performance benchmarks (the “Agent Growth Incentive Program” or “AGIP”). The incentive program encourages greater performance and awards agents with common stock based on achievement of performance milestones. Awards typically vest after performance benchmarks are reached and three years of subsequent service is provided to the Company. Share-based performance awards are granted on a fixed-dollar amount of shares based on the achievement of performance metrics. As such, the awards are classified as liabilities until the number of share awards becomes fixed once the performance metric is achieved. For the three months ended March 31, 2024 and 2023 the Company’s stock compensation expense attributable to the Agent Growth Incentive Program was $8,827 and $9,660 , respectively, of which the total amount of stock compensation attributable to liability classified awards was $650 and $993 , respectively. Agent Thrive Program Announced in October 2023, the Thrive program provides a stock incentive to the individual teams of leaders of culturally aligned teams that join the Company as part of the program. After affiliating with the Company, the team leader becomes eligible to receive an award of the Company’s common stock through team performance benchmarks. Awards typically vest after production benchmarks are reached and three years of subsequent service is provided to the Company. Share-based performance awards are based on a fixed-dollar amount of shares based on the achievement of production metrics. As such, the awards are classified as liabilities until the number of share awards becomes fixed once the production metric is achieved. The following table illustrates changes in the Company’s stock compensation liability for the periods presented: Amount Stock grant liability balance at December 31, 2022 $ 3,885 Stock grant liability increase year to date 3,832 Stock grants reclassified from liability to equity year to date (2,717) Balance, December 31, 2023 $ 5,000 Stock grant liability increase year to date 650 Stock grants reclassified from liability to equity year to date - Balance, March 31, 2024 $ 5,650 Stock Option Awards Stock options are granted to directors, officers, certain employees and consultants with an exercise price equal to the fair market value of common stock on the grant date and the stock options expire 10 years from the date of grant. These options typically have time-based restrictions with equal and periodically graded vesting over a three-year period. During the three months ended March 31, 2024 and 2023 the Company granted 353,656 and 88,553 stock options, respectively, to employees with an estimated grant date fair value of $6.93 and $8.18 per share, respectively. The fair value was calculated using a Black Scholes-Merton option pricing model. Stock Repurchase Plan In December 2018, the Company’s board of directors (the “Board”) approved a stock repurchase program authorizing the Company to purchase up to $25.0 million of its common stock, which was later amended in November 2019 increasing the authorized repurchase amount to $75.0 million. In December 2020, the Board approved another amendment to the repurchase plan, increasing the total amount authorized to be purchased from $75.0 million to $400.0 million. In May 2022, the Board approved an increase to the total amount of its buyback program from $400.0 million to $500.0 million. In June 2023, the Board approved an increase to the total amount of its buyback program from $500.0 million to $1.0 billion. Purchases under the repurchase program may be made in the open market or through a 10b5-1 plan and are expected to comply with Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The timing and number of shares repurchased depends upon market conditions. The repurchase program does not require the Company to acquire a specific number of shares. The cost of the shares that are repurchased is funded from cash and cash equivalents on hand. 10b5-1 Repurchase Plan The Company maintains a stock repurchase program with program changes subject to Board consent. In June 2023, the Board approved increasing the stock repurchase program to $1.0 billion. From time to time, the Company adopts written trading plans pursuant to Rule 10b5-1 of the Exchange Act to conduct repurchases on the open market. On January 10, 2022, the Company and Stephens Inc. entered into a form of Issuer Repurchase Plan (“Issuer Repurchase Plan”) which authorized Stephens to repurchase common stock of the Company, which is amended from time to time to adjust the monthly repurchase amount. Most recently, on March 6, 2024, the Board approved, and the Company entered into a seventh amendment to the Issuer Repurchase Plan to increase the monthly repurchase to (i) $20.0 million during the calendar months commencing March 1, 2024 through and including April 30, 2024, and (ii) $15.0 million during the calendar months commencing May 1, 2024 through and including December 31, 2024. For accounting purposes, common stock repurchased under the stock repurchase programs is recorded based upon the settlement date of the applicable trade. Such repurchased shares are held in treasury and are presented using the cost method. These shares are considered issued but not outstanding. The following table shows the share changes in treasury stock for the periods presented: Three Months Ended March 31, 2024 2023 Treasury stock: Balance, beginning of quarter 28,937,671 18,816,791 Repurchases of common stock 2,577,242 2,272,831 Balance, end of quarter 31,514,913 21,089,622 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 8. SEGMENT INFORMATION The reportable segments presented below represent the Company’s segments for which separate financial information is available and which is utilized on a regular basis by its chief operating decision maker to assess performance and to allocate resources. In identifying its reportable segments, the Company also considers the nature of services provided by its segments. Management evaluates the operating results of each of its reportable segments based upon revenue and Adjusted Segment EBITDA. Adjusted Segment EBITDA is defined by us as a segment’s operating profit (loss) from continuing operations plus depreciation and amortization, litigation contingency and stock-based compensation expenses. The Company’s presentation of Adjusted Segment EBITDA may not be comparable to similar measures used by other companies. Historically, the Company has reported results for four reportable segments. In the first quarter of 2024, the Company determined that the Virbela segment qualified for reporting as discontinued operations. In prior years, Virbela represented an operating and reporting segment under ASC 280. Going forward, the remaining operations of Virbela will not meet the operating or reporting segment criteria, therefore, any operating results related to Virbela technology will be included in the Other Affiliated Services segment. Prior year segment information has been reclassified to remove Virbela from the segment disclosure, in accordance with discontinued operations treatment. The Company’s three reportable segments are as follows: ● North American Realty: includes real estate brokerage operations in the United States and Canada, as well as lead-generation and other real estate support services provided in North America. ● International Realty: includes real estate brokerage operations in all other international locations. ● Other Affiliated Services: includes our SUCCESS ® Magazine, Frame ® technology, and other smaller ventures. The Company also reports corporate expenses, as further detailed below, as “Corporate and other” which include expenses incurred in connection with business development support provided to the agents as well as resources, including administrative, brokerage operations and legal functions. All segments follow the same basis of presentation and accounting policies as those described throughout the Notes to the Condensed Consolidated Financial Statements included herein. The Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. The following table provides information about the Company’s reportable segments and a reconciliation of the total segment Revenues to consolidated Revenues and Adjusted Segment EBITDA to the consolidated operating profit (loss) from continuing operations and Goodwill (in thousands). Financial information for the comparable prior periods presented have been revised to conform with the current year presentation. Revenues Three Months Ended March 31, 2024 2023 North American Realty $ 927,137 $ 837,114 International Realty 15,596 10,758 Other Affiliated Services 1,788 1,677 Revenues reconciliation: Segment eliminations (1,467) (1,096) Consolidated revenues $ 943,054 $ 848,453 Adjusted EBITDA Three Months Ended March 31, 2024 2023 North American Realty $ 17,807 $ 21,203 International Realty (3,355) (3,676) Other Affiliated Services (767) (681) Corporate expenses and other (2,643) (2,223) Consolidated Adjusted EBITDA $ 11,042 $ 14,623 Operating (Loss) Profit Reconciliation: Depreciation and amortization expense 2,399 2,215 Litigation contingency 16,000 - Stock compensation expense 8,827 9,660 Stock option expense 1,990 2,746 Consolidated operating (loss) profit ($ 18,174) $ 2 Goodwill March 31, 2024 December 31, 2023 North American Realty $ 14,295 $ 14,595 International Realty - - Other Affiliated Services 2,387 2,387 Segment and consolidated total $ 16,682 $ 16,982 The Company does not use segment assets to allocate resources or to assess performance of the segments and therefore, total segment assets have not been disclosed. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 9. EARNINGS PER SHARE Basic earnings per share is computed based on net income attributable to eXp stockholders divided by the basic weighted-average shares outstanding during the period. Dilutive earnings per share is computed consistently with the basic computation while giving effect to all dilutive potential common shares and common share equivalents that were outstanding during the period. The Company uses the treasury stock method to reflect the potential dilutive effect of unvested stock awards and unexercised options. The following table sets forth the calculation of basic and diluted earnings per share attributable to common stock during the periods presented : Three Months Ended March 31, 2024 2023 Numerator: Net (loss) income from continuing operations ($ 13,830) $ 1,992 Net loss from discontinued operations ($ 1,809) ($ 539) Denominator: Weighted average shares - basic 154,740,334 152,546,766 Dilutive effect of common stock equivalents - 3,121,946 Weighted average shares - diluted 154,740,334 155,668,712 Earnings per share: Net (loss) income from continuing operations per share - basic ($ 0.09) $ 0.01 Net (loss) income from discontinued operations per share - basic ($ 0.01) ($ 0.00) Net (loss) income from continuing operations per share - diluted ($ 0.09) $ 0.01 Net (loss) income from discontinued operations per share - diluted ($ 0.01) ($ 0.00) For three months ended March 31, 2024 and 2023 total outstanding shares of common stock excluded 3,212,244 and 635,343 shares, respectively, from the computation of diluted earnings per share because their effect would have been anti-dilutive. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
INCOME TAXES | |
INCOME TAXES | 10 . INCOME TAXES Our quarterly tax provision is computed by applying the estimated annual effective tax rate to the year-to-date pre-tax income or loss plus discrete tax items arising in the period. Our provision for income tax expense (benefit) amounted to ($3.4) million and ($2.6) million for the three months ended March 31, 2024 and 2023, which represent effective tax rates of positive 18% and 238% , respectively. The provision for income tax benefit was primarily attributable to income(loss) from continuing and discontinuing operations, deductible stock-based compensation shortfalls and research and development credit. The effective tax rate differs from our statutory rates in both periods primarily due to the impact of the stock- based compensation and R&D tax credit. The Company is subject to a wide variety of tax laws and regulations across the jurisdictions where it operates. Regulatory developments from the U.S. or international tax reform legislation could result in an impact to the Company's effective tax rate. The Company continues to monitor the Base Erosion and Profit Shifting (BEPS) Integrated Framework provided by the Organization for Economic Co-operation and Development (OECD) including the legislative adoption of Pillar II by countries, and all other tax regulatory changes, to evaluate the potential impact on future periods. The Company does not expect adoption of Pillar Two rules to have a significant impact on its consolidated financial statements during fiscal year 2024. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended |
Mar. 31, 2024 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 11 . FAIR VALUE MEASUREMENT The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. The fair value hierarchy prioritizes the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: ● Level 1 – Inputs are quoted market prices in active markets for identical assets or liabilities (these are observable market inputs). ● Level 2 – Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability (includes quoted market prices for similar assets or identical or similar assets in markets in which there are few transactions, prices that are not current or prices that vary substantially). ● Level 3 – Inputs are unobservable inputs that reflect the entity's own assumptions in pricing the asset or liability (used when little or no market data is available). The Company holds funds in a money market account, which are considered Level 1 assets. The Company values its money market funds at fair value on a recurring basis. As of March 31, 2024 and December 31, 2023, the fair value of the Company’s money market funds was $46,665 and $46,268 , respectively. There have been no transfers between Level 1, Level 2 and Level 3 in the period presented. The Company did not have any Level 2 or Level 3 financial assets or liabilities in the period presented. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 12. COMMITMENTS AND CONTINGENCIES From time to time, the Company is subject to potential liability under laws and government regulations and various claims and legal actions that may be asserted against us that could have a material adverse effect on the business, reputation, results of operations, cash flows or financial condition. Such litigation includes, but is not limited to, actions or claims relating to cyber-attacks, data breaches, the Real Estate Settlement Procedures Act (“RESPA”), the Telephone Consumer Protection Act of 1991 and state consumer protection laws, antitrust and anticompetition, worker classification, timely filing required SEC filings and non-compliance with contractual or other legal obligations. The Company and its affiliated brokerage entities are among several defendants in eight U.S. and one Canadian putative class action lawsuits alleging that the Company participated in a system that resulted in sellers of residential property paying inflated buyer broker commissions in violation of U.S. federal and state antitrust laws and federal Canadian antitrust laws, as applicable, as discussed further in our 2023 Annual Report and Note 13 – Subsequent Events to these unaudited consolidated financial statements (“antitrust litigation”). As of March 31, 2024, the Company has determined that it is probable that a loss associated with the antitrust litigation has occurred and that the lower boundary of potential loss is reasonably estimable. Based on an analysis of settlements negotiated by co-defendants companies in similar legal matters and ongoing developments in the antitrust litigation, the Company has recorded a provision for loss of $16.0 million which represents the lower boundary of a reasonably possible range of loss. The high-end range of loss cannot be reasonably estimated at this time due to the dynamic nature of the lawsuit and the contingent nature of possible outcomes. We have determined that it is at least reasonably possible that the loss estimate provision could change in the near term and that such change could be material. This contingent uncertainty highlights the provisional nature of the current loss estimate. Additionally, we cannot provide any assurances that results of such litigation will not have a material adverse effect on our business, results of operations, cash flows or financial condition. The Company continues to vigorously defend against these claims. However, due to the complexities inherent in such litigation, including the uncertainty of legal processes and potential developments in the cases, the ultimate liability may differ from the current provision. The Company will reassess this estimate as additional information becomes available or as circumstances change. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 13. SUBSEQUENT EVENTS Quarterly Cash Dividend On April 24, 2024 , the Company’s Board of Directors declared a dividend of $0.05 per share which is expected to be payable on May 27, 2024 , to stockholders of record as of the close of business on May 13, 2024 . The ex-dividend date is expected to be on or around May 10, 2024. The dividend will be paid in cash. Antitrust Litigation On April 11, 2024, the Company was named in Shauntell Burton et al. v. Bluefield Realty Group, LLC, et al., Case No. 7:24-cv-01800-JDA (filed in the United States District Court for the District of South Carolina) (the “Burton Litigation”), brought by a putative class of residential property sellers, alleging that defendants participated in a system that resulted in sellers of residential property purportedly paying inflated buyer broker commissions in violation of federal antitrust law. As with the other antitrust litigation, the plaintiffs seek a permanent injunction enjoining the defendants from requiring home sellers to pay buyer-broker commissions or from otherwise restricting competition among brokers, an award of declaratory relief and damages or restitution on behalf of certain home sellers as well as attorneys’ fees and costs of suit. Plaintiffs allege joint and several liability and seek treble or other multiple damages. The Burton Litigation is in the pleadings phase and the Company intends to vigorously defend against all claims. The Company may become involved in additional litigation or other legal proceedings concerning the same or similar claims. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of consolidation | Principles of Consolidation The accompanying interim unaudited condensed consolidated financial statements include the accounts of eXp and its consolidated subsidiaries, including those entities in which we have a variable interest of which we are the primary beneficiary. If the Company has a variable interest in an entity but it is not the primary beneficiary of the entity or exercises control over the operations and has less than 50% ownership, it will use the equity method or the cost method of accounting for investments. Entities in which the Company has less than a 20% investment and where the Company does not exercise significant influence are accounted for under the cost method. Intercompany transactions and balances are eliminated upon consolidation. |
Variable interest entities and noncontrolling interests | Variable interest entities and noncontrolling interests A company is deemed to be the primary beneficiary of a variable interest entity (“VIE”) and must consolidate the entity if the company has both: (i) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, and (ii) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. |
Joint ventures | Joint ventures A joint venture is a contractual arrangement whereby the Company and other parties undertake an economic activity through a jointly controlled entity. Joint control exists when strategic, financial, and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control. Joint ventures are accounted for using the equity method and are recognized initially at cost. Joint ventures are typically included in the Other Affiliated Services unless the joint venture specifically supports one of the reportable segments. The Company has several joint venture investments. The operations of these joint ventures are not material to the Company’s financial position or results of operations. |
Use of estimates | Use of Estimate s The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to allowance for credit losses, legal contingencies, income taxes, revenue recognition, stock-based compensation, goodwill, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Reclassifications | Reclassifications When necessary, the Company will reclassify certain amounts in prior-period financial statements to conform to the current period’s presentation. Prior year segment and financial statement information has been reclassified to reflect Virbela as discontinued operations. |
Restricted cash | Restricted cash Restricted cash consists of cash held in escrow by the Company on behalf of real estate buyers. The Company recognizes a corresponding customer deposit liability until the funds are released. Once the cash transfers from escrow, the Company reduces the respective customers’ deposit liability. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same amounts shown on the condensed consolidated statements of cash flows. Cash and cash equivalents Restricted cash Total Balance, March 31, 2023 $ 122,769 $ 55,365 $ 178,134 Balance, December 31, 2023 $ 125,873 $ 44,020 $ 169,893 Balance, March 31, 2024 $ 109,169 $ 74,735 $ 183,904 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Cash | Cash and cash equivalents Restricted cash Total Balance, March 31, 2023 $ 122,769 $ 55,365 $ 178,134 Balance, December 31, 2023 $ 125,873 $ 44,020 $ 169,893 Balance, March 31, 2024 $ 109,169 $ 74,735 $ 183,904 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
DISCONTINUED OPERATIONS | |
Schedule of discontinued operations | ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS (Unaudited) March 31, 2024 December 31, 2023 ASSETS CURRENT ASSETS Cash and cash equivalents $ 1,064 $ 991 Accounts receivable, net of allowance for credit losses of $16 and $99 , respectively 310 626 Prepaids and other assets 257 347 TOTAL CURRENT ASSETS 1,631 1,964 Property, plant, and equipment, net 9 11 Intangible assets, net 3,396 3,469 Deferred tax assets 2,390 2,308 TOTAL ASSETS $ 7,426 $ 7,752 LIABILITIES CURRENT LIABILITIES Accounts payable $ 26 $ 110 Accrued expenses 1,380 1,699 TOTAL CURRENT LIABILITIES 1,406 1,809 TOTAL LIABILITIES $ 1,406 $ 1,809 INCOME STATEMENT OF DISCONTINUED OPERATIONS (Unaudited) Three Months Ended March 31, 2024 2023 Revenues $ 649 $ 2,163 Operating expenses Commissions and other agent-related costs 679 721 General and administrative expenses 1,765 2,730 Technology and development expenses 116 351 Sales and marketing expenses (3) 36 Total operating expenses 2,557 3,838 Operating (loss) (1,908) (1,675) Other income Other income, net (17) (6) Total other income, net (17) (6) (Loss) before income tax expense (1,891) (1,669) Income tax benefit (82) (1,130) Net loss from discontinued operations ($ 1,809) ($ 539) |
PLANT, PROPERTY AND EQUIPMENT_2
PLANT, PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
PLANT, PROPERTY AND EQUIPMENT, NET | |
Schedule of plant, property and equipment | March 31, 2024 December 31, 2023 Computer hardware and software $ 38,372 $ 37,444 Furniture, fixture, and equipment 2,253 2,254 Total depreciable property and equipment 40,625 39,698 Less: accumulated depreciation (29,778) (27,733) Depreciable property, net 10,847 11,965 Discontinued operations (9) (11) Assets under development 1,393 1,013 Property, plant, and equipment, net $ 12,231 $ 12,967 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
GOODWILL AND INTANGIBLE ASSETS | |
Schedule of Definite-Lived Assets | March 31, 2024 Gross Accumulated Net Carrying Amount Amortization Amount Trade name $ 2,661 ($ 1,071) $ 1,590 Existing technology 3,254 (1,351) 1,903 Non-competition agreements 461 (125) 336 Customer relationships 1,284 (675) 609 Licensing agreement 210 (210) - Intellectual property 2,836 (630) 2,206 Total intangible assets $ 10,706 ($ 4,062) $ 6,644 December 31, 2023 Gross Accumulated Net Carrying Operations Amortization Amount Trade name $ 2,672 ($ 1,030) $ 1,642 Existing technology 3,263 (1,122) 2,141 Non-competition agreements 468 (125) 343 Customer relationships 1,285 (652) 633 Licensing agreement 210 (210) - Intellectual property 2,836 (583) 2,253 Total intangible assets $ 10,734 ($ 3,722) $ 7,012 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
STOCKHOLDERS' EQUITY | |
Schedule of common stock issued roll forward | Three Months Ended March 31, 2024 2023 Common stock: Balance, beginning of quarter 183,606,708 171,656,030 Shares issued for stock options exercised 211,158 113,208 Agent growth incentive stock compensation 353,688 656,436 Agent equity stock compensation 2,189,922 2,106,369 Balance, end of quarter 186,361,476 174,532,043 |
Changes in the Company's stock compensation liability | Amount Stock grant liability balance at December 31, 2022 $ 3,885 Stock grant liability increase year to date 3,832 Stock grants reclassified from liability to equity year to date (2,717) Balance, December 31, 2023 $ 5,000 Stock grant liability increase year to date 650 Stock grants reclassified from liability to equity year to date - Balance, March 31, 2024 $ 5,650 |
Schedule of shares repurchased | Three Months Ended March 31, 2024 2023 Treasury stock: Balance, beginning of quarter 28,937,671 18,816,791 Repurchases of common stock 2,577,242 2,272,831 Balance, end of quarter 31,514,913 21,089,622 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
SEGMENT INFORMATION | |
Schedule of segment's financial information | Revenues Three Months Ended March 31, 2024 2023 North American Realty $ 927,137 $ 837,114 International Realty 15,596 10,758 Other Affiliated Services 1,788 1,677 Revenues reconciliation: Segment eliminations (1,467) (1,096) Consolidated revenues $ 943,054 $ 848,453 Adjusted EBITDA Three Months Ended March 31, 2024 2023 North American Realty $ 17,807 $ 21,203 International Realty (3,355) (3,676) Other Affiliated Services (767) (681) Corporate expenses and other (2,643) (2,223) Consolidated Adjusted EBITDA $ 11,042 $ 14,623 Operating (Loss) Profit Reconciliation: Depreciation and amortization expense 2,399 2,215 Litigation contingency 16,000 - Stock compensation expense 8,827 9,660 Stock option expense 1,990 2,746 Consolidated operating (loss) profit ($ 18,174) $ 2 Goodwill March 31, 2024 December 31, 2023 North American Realty $ 14,295 $ 14,595 International Realty - - Other Affiliated Services 2,387 2,387 Segment and consolidated total $ 16,682 $ 16,982 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
EARNINGS PER SHARE | |
Schedule of calculation of basic and diluted earnings per share | Three Months Ended March 31, 2024 2023 Numerator: Net (loss) income from continuing operations ($ 13,830) $ 1,992 Net loss from discontinued operations ($ 1,809) ($ 539) Denominator: Weighted average shares - basic 154,740,334 152,546,766 Dilutive effect of common stock equivalents - 3,121,946 Weighted average shares - diluted 154,740,334 155,668,712 Earnings per share: Net (loss) income from continuing operations per share - basic ($ 0.09) $ 0.01 Net (loss) income from discontinued operations per share - basic ($ 0.01) ($ 0.00) Net (loss) income from continuing operations per share - diluted ($ 0.09) $ 0.01 Net (loss) income from discontinued operations per share - diluted ($ 0.01) ($ 0.00) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of Cash) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Cash and cash equivalents | $ 109,169 | $ 125,873 | $ 122,769 | |
Restricted cash | 74,735 | 44,020 | 55,365 | |
Total cash, cash equivalents, and restricted cash | $ 183,904 | $ 169,893 | $ 178,134 | $ 159,383 |
DISCONTINUED OPERATIONS - ASSET
DISCONTINUED OPERATIONS - ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,064 | $ 991 |
Accounts receivable, net of allowance for credit losses of $16 and $99, respectively | 310 | 626 |
Prepaids and other assets | 257 | 347 |
TOTAL CURRENT ASSETS | 1,631 | 1,964 |
Property, plant, and equipment, net | 9 | 11 |
Intangible assets, net | 3,396 | 3,469 |
Deferred tax assets | 2,390 | 2,308 |
TOTAL ASSETS | 7,426 | 7,752 |
CURRENT LIABILITIES | ||
Accounts payable | 26 | 110 |
Accrued expenses | 1,380 | 1,699 |
TOTAL CURRENT LIABILITIES | 1,406 | 1,809 |
TOTAL LIABILITIES | 1,406 | 1,809 |
Accounts receivable, net of allowance for credit losses | $ 16 | $ 99 |
DISCONTINUED OPERATIONS - INCOM
DISCONTINUED OPERATIONS - INCOME STATEMENT OF DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
DISCONTINUED OPERATIONS | ||
Revenues | $ 649 | $ 2,163 |
Operating expenses | ||
Commissions and other agent-related costs | 679 | 721 |
General and administrative expenses | 1,765 | 2,730 |
Technology and development expenses | 116 | 351 |
Sales and marketing expenses | (3) | 36 |
Total operating expenses | 2,557 | 3,838 |
Operating (loss) | (1,908) | (1,675) |
Other income, net | (17) | (6) |
Total other income, net | (17) | (6) |
(Loss) before income tax expense | (1,891) | (1,669) |
Income tax benefit | (82) | (1,130) |
Net loss from discontinued operations | $ (1,809) | $ (539) |
EXPECTED CREDIT LOSSES (Narrati
EXPECTED CREDIT LOSSES (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts receivable, allowance for credit losses and bad debt | $ 2,363 | $ 2,204 |
Agent Noncommission Based Fees | ||
Accounts Receivable, before Allowance for Credit Loss | 7,487 | 7,268 |
Accounts receivable, allowance for credit losses and bad debt | 2,363 | 2,204 |
Commissions Receivable for Real Estate Property Settlements | ||
Accounts Receivable, before Allowance for Credit Loss | 100,529 | $ 81,004 |
Accounts receivable, allowance for credit losses and bad debt | $ 2 |
PLANT, PROPERTY AND EQUIPMENT_3
PLANT, PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
PLANT, PROPERTY AND EQUIPMENT, NET | ||
Depreciation expense | $ 2,059 | $ 2,067 |
PLANT, PROPERTY AND EQUIPMENT_4
PLANT, PROPERTY AND EQUIPMENT, NET (Schedule of Fixed assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Total depreciable property and equipment | $ 40,625 | $ 39,698 |
Less: accumulated depreciation | (29,778) | (27,733) |
Depreciable property, net | 10,847 | 11,965 |
Discontinued operations | (9) | (11) |
Assets under development | 1,393 | 1,013 |
Property, plant, and equipment, net | 12,231 | 12,967 |
Computer hardware and software | ||
Total depreciable property and equipment | 38,372 | 37,444 |
Furniture, fixtures and equipment | ||
Total depreciable property and equipment | $ 2,253 | $ 2,254 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Goodwill | $ 16,682 | $ 16,982 | |
Goodwill, impairment loss | 0 | ||
Amortization expense - intangible assets | 340 | $ 512 | |
Adjustment | CANADA | |||
Cumulative translation adjustment | $ (300) |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS (Schedule of Definite-Lived Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 10,706 | $ 10,734 |
Accumulated Amortization | (4,062) | (3,722) |
Discontinued operations | (3,396) | (3,469) |
Net Carrying Amount | 6,644 | 7,012 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 2,661 | 2,672 |
Accumulated Amortization | (1,071) | (1,030) |
Net Carrying Amount | 1,590 | 1,642 |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 3,254 | 3,263 |
Accumulated Amortization | (1,351) | (1,122) |
Net Carrying Amount | 1,903 | 2,141 |
Non-competition agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 461 | 468 |
Accumulated Amortization | (125) | (125) |
Net Carrying Amount | 336 | 343 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 1,284 | 1,285 |
Accumulated Amortization | (675) | (652) |
Net Carrying Amount | 609 | 633 |
Licensing agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 210 | 210 |
Accumulated Amortization | (210) | (210) |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 2,836 | 2,836 |
Accumulated Amortization | (630) | (583) |
Net Carrying Amount | $ 2,206 | $ 2,253 |
STOCKHOLDERS' EQUITY (Narrative
STOCKHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | |
Mar. 31, 2024 | Feb. 29, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Agent Equity Award Program | ||||
Stock issued for services, shares | 2,189,922 | 2,106,369 | ||
Stock issued for services, value | $ 25,868 | $ 26,775 | ||
Percentage of commission potentially redeemed in common stock | 5% | |||
Percentage of discount of market price, date of issuance | 5% | 10% | ||
Agent Growth Incentive Program | ||||
Stock issued for services, shares | 353,688 | 656,436 | ||
Stock based compensation | $ 8,827 | $ 9,660 | ||
Amount of stock compensation attributable to liability classified awards | $ 650 | $ 993 | ||
Stock Options | ||||
Vesting period | 3 years | |||
Share-based award expiration period | 10 years | |||
Granted | 353,656 | 88,553 | ||
Grant date fair value | $ 6.93 | $ 8.18 |
STOCKHOLDERS' EQUITY (Schedule
STOCKHOLDERS' EQUITY (Schedule of common stock issued) (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Common Stock, Shares, Issued, Beginning of year | 183,606,708 | 171,656,030 |
Shares issued for stock options exercised, shares | 211,158 | 113,208 |
Common Stock, Shares, Issued, end of year | 186,361,476 | 174,532,043 |
Agent Equity Award Program | ||
Agent equity stock compensation, shares | 2,189,922 | 2,106,369 |
Agent Growth Incentive Program | ||
Agent equity stock compensation, shares | 353,688 | 656,436 |
STOCKHOLDERS' EQUITY (Changes i
STOCKHOLDERS' EQUITY (Changes in the Company's stock compensation liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
STOCKHOLDERS' EQUITY | ||
Balance, at beginning of period | $ 5,000 | $ 3,885 |
Stock grant liability increase year to date | 650 | 3,832 |
Stock grants reclassified from liability to equity year to date | (2,717) | |
Balance, at end of period | $ 5,650 | $ 5,000 |
STOCKHOLDERS' EQUITY (Stock Rep
STOCKHOLDERS' EQUITY (Stock Repurchase Plan) (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2024 | Mar. 06, 2024 | Jun. 30, 2023 | May 31, 2022 | Dec. 31, 2020 | Nov. 30, 2019 | Dec. 31, 2018 |
STOCKHOLDERS' EQUITY | |||||||
Stock repurchase program authorized amount | $ 1,000 | $ 500 | $ 400 | $ 75 | $ 25 | ||
Stock repurchase program authorized amount per month | $ 20 | ||||||
Scenario, Plan [Member] | |||||||
STOCKHOLDERS' EQUITY | |||||||
Stock repurchase program authorized amount per month | $ 15 |
STOCKHOLDERS' EQUITY (Schedul_2
STOCKHOLDERS' EQUITY (Schedule of shares repurchased) (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Treasury stock: | ||
Balance, beginning of year | 28,937,671 | 18,816,791 |
Repurchase of common stock, shares | 2,577,242 | 2,272,831 |
Balance, end of year | 31,514,913 | 21,089,622 |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) - segment | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
SEGMENT INFORMATION | ||
Number of reportable segments | 3 | 4 |
SEGMENT INFORMATION (Financial
SEGMENT INFORMATION (Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 943,054 | $ 848,453 | |
Consolidated Adjusted EBITDA | 11,042 | 14,623 | |
Depreciation and amortization expense | 2,399 | 2,215 | |
Litigation contingency | 16,000 | ||
Stock compensation expense | 8,827 | 9,660 | |
Stock option expense | 1,990 | 2,761 | |
Stock option expense, continuing and discontinuing operations | 1,990 | 2,746 | |
Consolidated operating (loss) profit | (18,174) | 2 | |
Goodwill | 16,682 | $ 16,982 | |
Operating segments | North American Realty | |||
Segment Reporting Information [Line Items] | |||
Revenues | 927,137 | 837,114 | |
Consolidated Adjusted EBITDA | 17,807 | 21,203 | |
Goodwill | 14,295 | 14,595 | |
Operating segments | International Realty | |||
Segment Reporting Information [Line Items] | |||
Revenues | 15,596 | 10,758 | |
Consolidated Adjusted EBITDA | (3,355) | (3,676) | |
Operating segments | Other Affiliated Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,788 | 1,677 | |
Consolidated Adjusted EBITDA | (767) | (681) | |
Goodwill | 2,387 | $ 2,387 | |
Operating segments | Corporate expenses and other | |||
Segment Reporting Information [Line Items] | |||
Consolidated Adjusted EBITDA | (2,643) | (2,223) | |
Segment eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ (1,467) | $ (1,096) |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of calculation of basic and diluted earnings (loss) per share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
EARNINGS PER SHARE | ||
Net (loss) income from continuing operations- basic | $ (13,830) | $ 1,992 |
net (loss) income from continuing operations- diluted | (13,830) | 1,992 |
Net loss from discontinued operations, net of tax- basic | (1,809) | (539) |
Net loss from discontinued operations, net of tax- diluted | $ (1,809) | $ (539) |
Weighted average shares - basic | 154,740,334 | 152,546,766 |
Dilutive effect of common stock equivalents | 3,121,946 | |
Weighted average shares - diluted | 154,740,334 | 155,668,712 |
Net (loss) income from continuing operations per share basic | $ (0.09) | $ 0.01 |
Net (loss) income from discontinued operations per share basic | (0.01) | 0 |
Net (loss) income from continuing operations per share diluted | (0.09) | 0.01 |
Net (loss) income from discontinued operations per share diluted | $ (0.01) | $ 0 |
Shares excluded, anti-dilutive | 3,212,244 | 635,343 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
INCOME TAXES | ||
Income Tax Expense (Benefit) | $ (3,305) | $ (1,458) |
Income tax expense (benefit), continuing and discontinuing operations | $ (3,400) | $ (2,600) |
Effective income tax rate | 18% | 238% |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Money Market Funds | ||
Money market funds | $ 46,665 | $ 46,268 |
COMMITMENT AND CONTINGENCIES (N
COMMITMENT AND CONTINGENCIES (Narrative) (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
COMMITMENTS AND CONTINGENCIES | |
Litigation contingency | $ 16,000 |
SUBSEQUENT EVENTS (Narrative) (
SUBSEQUENT EVENTS (Narrative) (Details) - Subsequent Event | Apr. 24, 2024 $ / shares |
Dividend declared date | Apr. 24, 2024 |
Dividend (amount per share) | $ 0.05 |
Dividend payable date | May 27, 2024 |
Dividend record date | May 13, 2024 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Glenn Sanford [Member] | |
Trading Arrangements, by Individual | |
Name | Glenn Sanford |
Title | Chairman of the Board and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | Feb. 29, 2024 |
Aggregate Available | 4,800,000 |
Expiration Date | May 21, 2025 |
Randall Miles [Member] | |
Trading Arrangements, by Individual | |
Name | Randall Miles |
Title | director and Vice Chair of the Board |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | Mar. 25, 2024 |
Aggregate Available | 240,000 |
Expiration Date | Jun. 30, 2025 |