EXPI - Earnings call transcript Q1 2022 | eXp World Holdings, Inc.

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Courtney Chakarun

Earnings fireside chat via live stream and EXPI Campus are metaverse. My name is Courtney Chakarun, I'm the CMO of eXp World Holdings. Today, we will begin our earnings fireside chat with opening comments and a conversation between Glenn Sanford, Founder, Chairman and CEO of eXp World Holdings and John Campbell, Managing Director with Stephens.

We are happy to welcome John back as our moderator.

Following this initial segment, we'll move into a presentation, which includes a review of the Q1 2022 financial highlights, there is a investment presented by Jeff Whiteside, CFO and Chief Collaboration Officer of eXp World Holdings; followed by Jason Gesing, our CEO of eXp Realty, who will dive deeper into our differentiated model, agent growth and value proposition.

eXp to of and I’ll conclusion. the on June return for leadership share then bring our continuation to a Q&A XXXX will John to our Campbell team details our We session Summit the Shareholder and finally

review considered these statements. in in the statements be beginning conjunction There made today the of forward-looking contained filings. number with of statements the company's that with will Let's forward-looking a should SEC be cautionary

report and uncertainties statements. Forward-looking could subject filings statements our to statements various forward-looking information. or discussion risks differ most a business, revise these update are actual our may from with our to or performance on Please that and results We XX-Q quarterly affect obligation including that to financial for cause our recent no of any the specific Form condition. materially SEC, risks see assume

will available a today's a call is being and recorded made also replay expworldholdings.com. As be reminder on

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like this the the would turn to that I left remain like will of At with the to stage. hand conversation the question Glenn, also you side time, fireside start If to screen Founder, up opening our the earnings ask remarks. chat on

Glenn Sanford

everyone, and you, Thank for thanks, Courtney, attending.

This we've our a driven solid know Obviously, was starting really We've it engine primary a just ago, companies been enabled by XXXX, it expansion We've in platform. But that out the Virbela is this company. got at enterprise knowing Frame going big not with was inside excited It's most the for really by quarter. about it platform bought into another Realty, become VR, multiple as our certainly strong and of rapid finished what play the a which of that different using since large of to And got inside over XXXX, three eXp. to of metaverse month growth metaverse and which XXXX but us. company and the growth another extent quarter our framevr.io. the in countries. now XXXX pandemic got you of We've Virbela. is eXp called driver, check XXXX, starting is the

our leverage starting continuing name is landing our aspects. added Coaching, platform to to SUCCESS-based, SUCCESS the co-working other which SUCCESS We're SUCCESS venture, to SUCCESS gain our business speed, bureau SUCCESS and Magazine, Enterprises is we've the which is real the estate The into also something is some with company which speakers, Enterprises, platform. other now

up, was actually that's the higher impact of lasting longer we're to, come the eXp that little what seeing about market a of position Inventory bit at any really next fast-growing whether Realty, year. potential in a reality since anything have little rates. of us, are or talk business a we really interest the this later Right or certainly it’d company. end that a year. market, on a on was, mainly little with eXp model Realty year now, is be is bit to last going the we're But you. a sideways, that, with driver down, say, than the contraction maybe might early market the built And it big for So, whether continued bit,

have obviously our technology, we but literally what literally this to built VirBELA. happens, enabling XX-plus to have So, see with we'll countries. able grow We've been

of couple announced a Just added additional countries yesterday. --

Zealand think week. is New that this opening I

our the the a the agent amount grow count We've never where of cool actually rate. in had same to of of month a fewer history growth beginning bit shown So, before. think drop in have we've little I though month-over-month. had company NAR the the agents it's than pretty the had continue Even the we month we a year, terms or even in of numbers just

but make we inside understanding that year-over-year value growth continue then a been great The counting, so, see agent our excess well And ultimately quarter around a was exciting continued and and all operate decisions we more into is the big as on of grow XXX% very global much having the dramatically not use allows that us a to as world. our some for XX network, company, translates sort to top guiding count. to This see selling as growth-driven, growing well. in has an the to opportunities we end additional of countries countries but in listing quarter, beacon next certainly their to announce the continued really multiple in a agent We and iterate our lot markets Obviously, proposition. count, network homes. we'll experience NPS a that and agent continue as customers which of growth, agent that our global Promoter driver Net growth we down, to team, we've Score as of

called the revenue we billion that in You out, release may $X first quarter. the have first seen press

for profitability with First to quarter flow company, positive the We associated increase on quarter and profitable three this real but from in this that a really foreseeable to consistently years basis, tends both basis having and year. almost allows flow inception, be model been an positive, the last over flow the core basically, and it have we that over relative cost Cash continue to with time. continuing a to future. that on cash EBITDA us And rest has to variable slow earnings feel the positive. estate cash be the profitable of

us, confident in pivot our the feel will very obviously, up ability So down. and or but we be agile exactly I to markets don't to as know what go bring markets

fastest-growing. So

TX at a those. award the the of -- One certainly actually, number things for being we Summit stats, just Antonio accepted brokerage San in today, of fastest-growing we've according had to we're an the and their

country. back lot in stat with actually player indication number learned of of about at same and recently markets Houston the brokerage the REALTORS, in the we number becoming agent the now count large is -- of Another markets Houston, and we're around one breaking we're a that the that a one good in Association into listings event, by number pretty

proposition. a across particular and UK the the there's US, have of be continue number idea Canada and think growth. India as to It's the learning it fast-growing in, But we're to I'm out countries will we player a XX and to stat. other like countries interesting the that already number that of the And Mexico lot but isn't continues markets this much was countries, really we last well. be Hale one just really and most hours, call that agent a proud the by all So just one that just value to translate as the brokerage just of in in I agent that were -- other smaller Bob major the

a year. is both think, care last our I this -- our Glassdoor agents off being were just taking our the the of result chain and of growth staff and scores agent

to to noticed growth another for our employers in And we actually company. excitement that, continued may five I and the were that large top is You indicator leading have think, according the Glassdoor.

could some any over just turn over lot the I we it of turn So maybe going Campbell, it to and before John rest for I'm team. over Q&A a the more, go initial to remarks but to

John Campbell

great success you innings Yes. of It's nothing to ahead the stock the NAR not from I to are think, total like agents guys It's say but be is US you growth I specific. fraction there's really for is like of back lot world Obviously, such Thanks, Glenn. of firsthand you're agents. early for in just it's It guys penetration degree performing about virtual the this time, of continue it see I at again feels treating you you well. guys. hearing know, market guys, The the and a of seems just opportunity every And well. EXPI a marketplace.

I of rotate pretty think down, and up has and in obviously sectors. investors hit go kind anything I of hard. mean, out been housing-related stocks

but obviously, the world, going fun to keep doing multiples not than side for the sentiment. on mean, at that of guys side it, So and you it's not But, thing, you're the when it's forever. obviously on investor your of flip on last side, calls. a tend are investor is of nothing those we not we gauge And make stock more leads look in multiple when the to I who the

of the spread enterprise, market earnings value what's between implied market -- today. by the are finding You expectation. price as that guys We of kind we're the the by the divide basically

are up, sizing willing to earnings. what your for investors just So basically, pay

times That early multiple think since And on As the averaged it projections based I you even today, sits at XXXX, XX EBITDA. X for reached forward XX times. guys, is last stock year. about about you've our times

a put multiple the today, EXPI you XX times stock it's that on of historical price. So average $XX

that's you find at Bigger type value. trading of in today picture, characteristics of, kind companies have, be top So coupled earnings to and out the many I the growth. disruptive double think guys you'd the hard-pressed multiple, entire well with this line that with market over in

of the sky-is-falling EXPI in the price chicken mindset. we just all see from that say, the investors move need to I kind So kind from here, to away upside still a of, little, lot think of

John Campbell

enough one I to all quarter maybe with question. that, guys. good another start wanted you But off on for it's Glenn, Clearly, just

to your fundamental as kind point shook kind things thoughts? How How off quarter? of of of start what the high-level just the your let's with to drivers out? kind So key fared of in you relative expectations that

Glenn Sanford

one down NPS that and we in Well, consistently, Promoter or Net it's different the in on is out KPI still how press doing. this being we're future the focus as really And an It's our Score to we do goes thing, internally, reality. our our releases -- and indicator areas. Yes. called leading

lot last a it around I was two, of or quarter think this Canada.

-- do in lot so around a of a more focused we to we great a what macroeconomics of create So about we our experience if are. we it, -- activities. improving of agents? in what this a and terms about to on NPS think think model our of And is we lot little for Canadian a produce bit when the it market as have work And factor of the then going to continue

macro-wise, little slowdown. think of I bit a we're So seeing

-- growth and see don't our of starting rate that a propel I because But internal see a And bit sort to slower a expected shorter bit, so higher. little perspective, terms numbers to our agent we're sort of bit in expected rates that grew than out time. and little a we sort to count as starting of they that in meant did us of actually interest our think But dramatic slowdown. of of as continues play to in obviously, we're anybody from jump maybe period we

that's our kind so of around mix And QX.

the the or think quarter numbers we're in slower is rate of off growth agents our of who so terms tours. And in real other go The part we that of is U.S., is actually that little active in number than I probably it -- are expecting. a piece were NAR first

-- And actually who though reduced. so even real we grew the with are tours number agents of

we it it maybe see good from the see our some some about against really again, play internal our we so sort and But that there's measurably of can we're factors starting perspective, of macroeconomic projections. actually numbers. to feel And

John Campbell

back big a Yes. kind was And are multiple of existing fear of home stocks U.S. is that a there's Like housing. That's going essentially multiples of I employing kind pick. bigger good earlier, lot on factor of sticking a these XXXX the I levels. gauge sentiment. a mentioning around rundown. sale The in mean, were obviously, to

of this just slowdown, Glenn, every heads and So I for but kind rates time, where the as of out market very the over us you think us hear surprising a like throw sense several don't quarters? it's to bit they obviously, next a ask with ball I have. your moving But crystal your give

Glenn Sanford

Yes.

this was And about rates I've I Fed by a additional Fed question QX. Brad desire and couple in of So level, interest next cool -- the bit Inman. in I if housing talked they're going ago, same definitely see a asked the weeks increases QX, to market prediction then and at a the the little projecting that with That's that think going play the of sort into does serious, to in the market my slowdown year. we're down into

there offer hearing situations for a market there bit. buy lot many inventory. a of to home. of offers from might There's are we're XX that we're XX number the can't XX home, for still a -- balanced I down little certainly, in is might the reports perspective, a think it's that be a slow And now a yet and be because home actually not offers consumers it or -- multi reduced but There's they're it's market. still healthy bit, that that on enough on in looking so homebuyer

is my could we've want create with of not their when uncertainty this factors, we interest is from that the going to continue the a point X% a go plus a certainly, guess happen the fear going So does maybe in in interest And to now. Fed cash that, bit, We're away macro what's got not around going at as and Ukraine down preserve I raise of in on or to rates. rates make far well lot that and other does time. people even things that, market maybe that maybe sort move slow – to

kind of that So of both on equation. plays sides the

John Campbell

later just if rolls hype year, there regardless seen, sense. have I you of down around assuming over XXXX, of this makes you hasn't of swinging just a that, been late swings. XXXX. – Obviously, hard mean, you've seen plenty that. that market market as Yeah, all kind And the market guys dramatic well a market pretty the And of performed in

proposition want get kind bit? worsen also eXp just then the kind standpoint, an for out of what I standpoint, you flex. sense to your model from And think how value So little of if the from EXPI agent market stands the

Glenn Sanford

a QX. most again, cost to it, going our residential would our volume It quarter. was is The down quarter across everything pleasant the in quarter we real things was forward estate industry. changed And to of real but had call, reduced something I down yet, we call. why be to of again, short but look quickly made to such the adjust that, turned out that time really pleasant, that, we to COVID able know of popular all when of One service, profitable to for very, doing to estate, wasn't to it's a we the a was It are turned our essential reason fundamentally we were if not it didn't tough second was a what happening, We very the out we able transaction point best to a operate period market. And relative XXXX. that because in that, do wasn't actually It quarter was date wasn't time. I cost ever. something the operate

time, for system be quarter, So a again, we and market where going to of a and the was period thought happen out because, there a mind we could bit in to very to real yet know a of what that really able off going our a QX, was was turn clip shock a was one little time. this self-preservation which were the we at didn't QX, decision in profitable

in So that it. so the in should market. still at well well – a flexibility capture that We good we there look markets bad gives that way a us and I should market, do do is

John Campbell

sense. makes Yeah,

of kind got So right high-level that's for all questions the I've now.

is with back some kind financial the financial rundown, Jeff do later. of and questions to think I'll in-quarter I come later going and more

Glenn Sanford

Awesome.

Whiteside. business been been Jeff -- good yes, working I Anyway, while since We've together late so partner, XXXX, it's so a welcome think. And my

Jeff Whiteside

It's so. four actually above been years

Glenn Sanford

– partner Good

Jeff Whiteside

John, chat. All for Courtney, and today. virtual our behalf thank you, and QX really right. the of highlights thank our Appreciated. XXXX Good Well, Thanks, joining for On all, again, share I'm first quarter Glenn. you thanks, to morning, moderating fireside results and XXXX. team, proud for

first to performance eXp net income strong quarter Holdings the XXXX. transaction So World compelling. if at and be page, volume, our a continues of in At agent look growth another higher cash we revenue, flow first in level, count, delivered

our in adjust and to success. commercial, invest We had the balance technology, on international service needed. agility North to the agency continue zero future, global and debt We America affiliated where sheet

built built and tough we're Glenn talked times. As about, for good times just we're for

We're we're leadership and feeling into exceptional about the comes great whatever And shareholder industry, so the team, leading delivering value. going us. we're at we've in got best teams

highlight page, financials -- So $X.XXX versus up look QX, and go was in XX% revenue level, to if the our revenue our if which is the at with second billion, XXXX. you QX a at we starting

Our year-over-year. gross million, was XX% increase profit in of QX an $XX.X

diluted XX% our million, our net increase $X.X stock-based And and benefit, up tax as earnings by XXX% Our deduction, provision year-over-year. noted, net compensation QX a income $X.X primarily income was driven of $X.XX, was income million an includes per that's QX year-over-year. share our

million. in million, flow year-over-year. -- on cash up of And EBITDA summary year-over-year. $XX.X XX% Our XX% QX operating was our our adjusted QX our That's was $XX.X page, lastly, increase an

operating categories: metrics metrics, just of our that us into trust's been while, a with at key metrics. and look we for if you two now, have So broken those the financial

operating our for looking QX. So at metrics

on company our as Promoter is XX, world-class, businesses, really is satisfied that number our we and as and and agent above it Score. a to employees. Glenn goal employee our predicts run find a and agent Net keep just growth mentioned, retention we As reminder, which And

but above down quarter, XX, slightly the we're So we're in we're XX, XX.

want sales productive we're gross So drives unit that to be. and the platform margin range to model, And we dollars. agents adding our our revenue in volume, real

So first if you at we ended look at at agent quarter $XX,XXX $XX,XXX. our count, the

So X%. we're up

count we're XX% and US Texas, major well split, a announced in an XX%, agents California globally. recently We growth as XX,XXX was expansion agent globally. Florida, the up in you to XX% give So approximately as a and

units. the to down Going

XX%. units Our up $XX,XXX, $XXX,XXX that's was versus

$XX.X Our versus price in was per and XX% unit was QX was volume billion, that $XX.X up XXX, year-over-year, billion our X% and up year-over-year.

to Now as was gross I before, up and margin gross transaction million our margin And agents transactions increase $XX.X, driven on dollars America. going volume. XX%. revenue. revenue, in $XX North increased mentioned gross dollars, margin The by XX%, at We versus grew look of $XX.X on primarily based our our up our

percentage SG&A primarily we declined margin and capping. gross look XX.XX to higher our at versus was our Our due units priced SG&A, If accelerated XX.X.

up investments was XX%. technology to growth it and higher and in support due So costs FTE services. portfolio, affiliated SG&A increased international

few As operating net are we've income. got, through of, lines and income the kind the -- we next towards here, look gone the

to So bottom, which take our you the I'll is just down flow. operating cash

our You the to we cash was XX% $XXX $XXX.X versus in have can and million, bank see million. all expenses equivalents increased the at money of million and $XX.X our the $XX.X cash flow operating and million investment after from cash

metric quarter. that's in great a the So from standpoint results key

other the at last milestones investor on highlights look some page. and Now we if QX

row chased we that we and positive -- XXXX, equity. income, quarter positive in achieved this in GAAP was accumulated XXth so earnings net a shareholder So the

cash repurchase up which stock about million another its $XXX an mentioned We repurchased $XXX in in our on to dividend for to press of paid we expected -- to The million are in And $XX million million QX. million increase XXXX. -- million. $XXX common So announced be amendment release our XXXX. quarter, paying buybacks. of to $XX third monthly is and Board May we program our XX, $XX Share stock common of paid this our QX stock month repurchase third dividend we approved from we to increased that the from

additional to company in mentioned. Republic, the have the platform open forward. Dominican we Zealand, real incredible confidence in first have the the estate Chile quarter XX including Glenn global now and eXp to as near-term expanded New Dubai three going markets, XXXX, plan locations, future. in Greece of So has announced

standpoint. take we and where our quarter-after-quarter from the in upcoming whatever quarter position -- continuing -- We've headwinds. situation strong happens to in fantastic in are So are we delivered a and on the really a

Gesing. and He'll So like CEO growth to model, now of morning, Jason. cover Jason go to our innovative proposition. over our I'd Good value eXp agent Realty,

Jason Gesing

Good agents, say congratulations always here. up Good feel and you, It’s Glenn. possible all really John. Thank today Courtney. our nothing once I'll doing morning, it Thank made morning -- I and privilege first, Jeff. And to staff morning, Good everybody. just else again to say, have you, been if along. be who have brokers

and As in great to Glenn markets. was founded the downturns adaptable be in model built strong eXp thrive his remarks, all Glenn to the fact, flexible, it to recession in in and to And market to response designed in be mentioned in conditions. thrive during really the company operating

business, who to and can while, arduous into free is be own joined without And now and -- and really owners in countless into brokerage they costs, a satisfaction. the markets supervisory the base a their industry. for part They’ve have grow of new grown And good of owners and grow migrated profitability examples that a very that's to their they're arrives, growth about to opportunity when greater expense. the unattainable And we've us, and believe can time new and also so we that They've in calls exists remain and obligations. but they at countries market. brokerage their agent then got next the achieving time they've who help would credibility and that grow company, leverage others completely. providing all strong risk some organizations, the to unique over in levels strong that from states today, opportunities held in and position also belief And great to eliminate them otherwise as for this fixed the we're network position exciting the least is market brokerage while long what's me, really agents where

So does really when owners turn. going forward destination market are logical appealing we that a the we believe very for and brokerage bid

financial strength you've with now and eliminates cash which As of ours in in long-term growth. strong Glenn it continues us the positive the we to contrast, of today, and a concur despite which consistent heard potentially on flow no mark-to-market which mountains these core also yet occupancy. our the have And ESP XXXX. XX,XXX competitors due invest the as flexible this of and community, debt, to to in are Centered cost believe operating -- stands said, markets and in have a burden across positions based metaverse many XXXX than spread agents and limits opportunity brick-and-mortar debt well our globe, which who And in has uncertain around to reach model. more is as profitability

were [indiscernible] flow smart -- launched that that Since international employee me, last more examples, the in year, just made about cash our which has limited appeal in means volume services continue to not these, more well than couple closed as expertise believe momentum. specifically is far those positive that $XXX X,XXX make of expand, referrals. as our the indicates its pending but accelerate in notable the can Additionally, programs US And brought investments ESP this what's program to generated and we've excuse by inception the more has as we relocation. workers than XXX year, X,XXX we relocation and thus and of to than a million

without investors, provides piece we transaction sessions agent will be for believe with this mortgage and property at center agents base clientele of there sheet looking And Our the option third-party cash us in pressure thousands acquiring better under the any sellers of while single strong options. of taking has iBuyer believe covered program, risk. which keeping and that increase, as we a that or previous a balance a we certified ExpressOffers or with rates ExpressOffers distress for in the

operational will you Additionally, our financial efficiency, as we've global which footprint, launched a support up. important see helpful is this system quick controls internal on that and single global our scaling improve and slide coming increase

Glenn part environmentally, We build we're to our increased that's allows headwinds the mentioned the a to a metaverse attractive transaction growth opportunities brand volume equity, Almanac the stages is morning. the eXp made in model And Domestically, into pandemic count. this to revenue continue recently momentum broader to through play-out brokerage community. competitive slower count, of the transactions programs. And halt. Realty the leader affecting and attributed as The during strong, post-COVID, award possible growth share collaborative, countries additional interpersonal Real provided Despite market to we and we are to volume capture continued structure year-over-year capture to sales, Estate agent TX leader In friendly one saw that could compensation activity and utilization the in agents -- COVID this housing and partner including growth our really Sixty in in be early expanding globally. these has specifically, market, share. we us -- and model one due identified our size, highly are number agent earning commission XXXX and well-positioned a for market, the of

expand, Pacific It's and and above we've now In our XX% to its Caribbean agent number in top count of folks year one Also, in recently I XXX% are about XXX today we the XX% time. mentioned, And -- one country. all to volume operations from -- respect five and international as [indiscernible] total to makes as the Asia global coverage year-over-year with now number markets. and in regional our brokerage up new agents, momentum hubs percentage. up identified top mentioned, growth efforts, increased EMEA Globally, in us the as we sales got Jeff with transactions have year region, for build agent as continues our forecast revenue brokerage continue the addition, in number America RealTrends region the and Latin X% ago.

business US on to volume. to excited know Scores but service that it's commercial client productivity twice the it agents, strong you've going teams ahead, And us, because worked deliver Triple-digit We the this commercial to in four-digit then transaction Promoter strengthening important top utilize increases abroad. we on And variety is focus focus the to it disciplines. their our agent-centric percentage I in efforts productive lastly, continuously of continues it ESP their morning, the in the year-over-year. service measure diversify the calls, both Net a we're really Their on to increases planet. great in on hear resulting looking you Our commercial and focus iterate build really value prior critical of in expertise in is heard platform increases revenue, offerings to by you're most heard agent. for do again the on and attracting

NPS Our of score tell, is some industry brands the well world and can in in believe ranks we the the as which somewhere XX. among us we of of best the as far neighborhood XX exceeds average,

to, which an Inclusion about XX,XXX. chronic in agent, as eXp been includes collaboration, when solution we've children, because connection and over compensation a our great worried arrived meta-verse which health with care, We has such health, offerings you we're our our challenge our, ever-growing equity Achiever brokerage and opportunities, we health and for cloud your industry call eXp world, finally, best are care have if and on true agents enable it's then agents Today, robust we offering, can't various operations. share, total Diversity offer you're initiatives, these our while Initiative to care that we for in to your focus splits and care X,XXX the the just freedom. important vibrant in their terms and the where provide cats opportunities they for other And and We ICON agents spouses, pleased both World. as also campus, got As location and around health and revenue but to education, providing and of community, program. at community foster need our first our through not culture the and enrollment, including in still work one up business. or time a Health enrolled partners, do

side, on four companies. fifth Today, staff employee once again Glassdoor many you. Best right for Work at consecutive back Places of be participate. brands and letting and the to scores for names. very On NPS our household you ahead being we're well-known but listed rankings to year to continue me It's Thank number the thank our large strong. you, to John, over

John Campbell

Yes. Thanks, Jason.

So, Q&A into the here. getting back

upped your the authorization of release. of that back you as start positive you've buybacks. jumped Let's -- mentioned, you monthly one press out the from you're that with just off buyback guys the developments doubled pace you -- the Glenn, kind doubling of

Board drove So, from the talk to decision about us level. the what

Glenn Sanford

of couple back actually buyback which accumulated sheet that we is things. on a One, so million. to than why million stock we a month, more bought cash our So, limited $XX -- was $XX balance so the

books million because cash -- in cash the so the what an us, to on is maintain that, an adequate for the $XXX that, to brokerage. the in we is run order of feel agreement And with amount we have Board

more. flow, get creating million continued back situation future back our order that really need may $XXX us, we us an around to opportunity to cash balance. at increase be rate the going not given was So, in a buy it's point for again some that growth Obviously, and one-month cash to to in it and to

in our kind on wanted of that the been dilution speed. to, focused one, -- that's then any So show reduce it that what issued just number commitment appropriate of cetera. outstanding we're fully in back of and some our to to kind terms and where is levels actually And be relative bring prior et we diluted what's equity basis, to of just And has the able stock shares period respects, also to offset in programs.

John Campbell

it saw -- in XX% you you increase saw sequentially. Yes, mean, balance think sense. the makes a I I yes, cash

huge can But good think, know us But about We're give thoughts on So, pressure side of some markets flip up of multiple you focus sitting has public of you typically balance thoughts mean, that. under side than don't Obviously, the latest better markets. your how the I I M&A what not stuff on that, to I it's but with that, much probably into story, a fun the M&A, us are. public markets. a are been your really your this the give in on have hasn't that sheet. trickled private the holding multiples. things, pretty get your attractive just

Glenn Sanford

component Yes, maybe opportunities at is we culture, he a different that up on synergy the even of -- M&A a M&A weekly a because look basis. it and see so Kittleson our heads One, time multiple fit. we'll certainly on in there's things. of monthly heads We Kyle cultural opportunities the couple inside and opportunities, sometimes a that XX% doesn't work doesn't done, really company,

both M&A we those so perspective. an looking of really at are from And

And things so we've different at. looking we're various got

some that some we'll are we'll in going we we years, any some a be next in. some things in announcements I see small it general makes up reasonable so as, if around look the M&A can of some expect projects in housing But and to huge valuations. couple at think pressure, we'll that both culturally. pick the in, financially but the in few pull that's what sense M&A crazy fold we certainly stocks months, and to there's have opportunistically not -- currently really will We say, last to little under works, opportunities are They're

John Campbell

last one Yes, years, or over the focus been makes still for big then obviously, of gross And year-over-year. bit a a margins, but sense. pressure two for here. maybe On that's three little investors Jeff, pretty

that's of cap, you've straight almost quarter. all but it I sequentially the just think grown for second

thinking full about margins. parts the the moving kind year just we get gross Before there, of

agent some the flattish you per assume on there? see of gross be kind were you year-over-year? Just greater to this, average able stayed would out revenue the kind Just if latest help If expansion? can. out us be with same it growth, that commission to Would we margin of

Jeff Whiteside

Yes, John.

it's our I of an prices mean, that the housing since around the increased, we've have we're price X.X-ish the kind units the found, seen the but somewhere it's biggest obvious, X.X-ish, you things across and of as of around XXXX. we look margins. historically, One return if average on gross

I of we is focus will and towards pointed before, down end on of year, But we as So kind the we make coming volume out, margin I mean, as that's support the our we the on from. that business, I we coming mean, see the really into are actually what gross if dollars mentioned down best where think Glenn focus the coming the that percentage. And business. the

X.X% in were in And quarter. I'd Xs. low the the they're say we So at historically,

on up. what still depending prices, to stabilize the percentage housing happens margin volume return business. do kind the actually prices will healthy dollar the on So go healthy down, market, we But the pretty a come margin if the -- very of and comes down gross have gross the

John Campbell

makes sense. Yes,

I the too to think side, we tend investor on focus on and... much percentages

Jeff Whiteside

think I big get can see, So the obviously, so. right? us mean, deal market that's a future percentage I I you and mean, Yes, deal for us. huge the a we is to for same in is share, investing

figure substantially quarter. looking growing every really we're dollar at is So that figure and that dollar

John Campbell

bills. the That's percentages pay Yes. for not do sure.

from just the of impact here, for impact one from Slideo can that's ancillary actually don't double-digit gross in do pathway Okay. do much past, of ancillary but what an about and gross that of margins back know you kind of Longer they but to done questions You margins? a the how the guys of services low or kind services, have talk margins? I term, see the

Jason Gesing

said and escrow. gross – historically that Yes. like before, all of that generation, I do we related other the high-quality personally, percentages in coordination, I mean, like margin things mortgage, title affiliate I us a kind transaction lower our in there's big has healthcare, believe opportunity businesses believe in for been services lead as I

or point can the grow. can continues add with year this that from see long we we a Once numbers business. get over that So, to that – and term finished you revenue two what very high last I've the seen, there's number a to

the the think add opportunity two long there term percentage is we in So, percentage to the the to a margin. -- operating

Q –John Campbell

shifting operating variable today? like update us of And then business. to sense. I you Makes side fixed what versus kind looks the expense guess an Yes. of gears first, give on the just mix the can OpEx

Jason Gesing

Yes.

of our the of most supporting brokerage, So are expenses. -- in variable are I that's think right? those expenses kind

We the the expenses. a and have A revenue of that business form of of our comes share. huge lot growth the expense variable of is in piece

obviously, that goes the too. down business goes as So, down,

across costs react from of a do So I'd to when of but not then if something to XXXX, we at affiliate we variable international, But working that's mentioned the And the in on areas – business an we we percentage increase are have automatic areas can ability that revenue our Lynn cost. high we're to. costs the buffer have on to say the before, action in take time, extremely our had in services. like business as we like our like do, areas same majority need commercial,

real our launch. services we we're side estate this, make both along the in and main focus affiliated other going – investing that's now get we shape, So when the of the for to think great growth right is business to and also

Q –John Campbell

run good done. a it's Yes,

right? a cost as fixed the a we percent a there, low, the just there low a base, give a potential think because agent. little is at cost on the leverage mentioned, cost guys model to of – sense kind you it try One of we've you basis looked do, typically of side fixed things of the to but bit I of And per is

some lot walk kind the out, those there that this been a a revenue investment lesser per called bit. So going little you're it of is seems maybe to of and fixed that several on why of support the the then how cost the It last this years, has of investment, much growth? areas a and but through spin like little that on than other getting basis leverage required some X.X probably for way you a over of bit kind years it's agent

Jason Gesing

is, Yes. taking on I technology I been couple over about that investment taking we've would our business. productivity more getting mean the thing across we're the of one now all that, when last is years say on

down. So to costs that, support broker SG&A direct that SG&A, the go

across on we're of working terms productivity comments the and your that the technology business. Glenn couple maybe of side So, from in a

Glenn Sanford

Yes.

we're we as workflow of R&D definitely a the to doing bit refer improve process. So, what fair to transaction

investments. results. to Showcase to to And on So, as -- engine that's And the that well we we long-term expand we to planet. the We're the we'll countries we creates the cash so players. learn also keep got much as that and short-run so major years, can real the to years, as and agent -- make we're time do -- easier our do, not actually eXp five where on XX recognizing of XXX,XXX the some to of is for the really for get to still of internal those we achieve investing like we're long-term, positive get that portal. quarter, we some future focused we years. become going because think to how bit can little largest, the as most think those that big countries in focus. exprealty.com, then, brokers our making estate it we IDX so just years, quickly stuff, building before growth pivots truly especially, and that in countries And our already gas adjustments future. to want make foot a the something flow into in stuff to we but five countries, can, get staff really the the been get heavily into transaction can, can to we've many become also the been continue Short-term, new learn, how low-cost because on, propel investment, the we to to flow, entering takes in we've number aspirational the as we And our And agents our reaching generational agent-centric out .ca. the that's on what maybe but goals of we positive but really in investments dividends will want operate, our we do cash continue really so pay really that's around are that We're how international, takes that the call continued driver. will they we those a investments focused stuff workflow and

at role the investments you in years player. little as we a we're focus sort that the make from your need place, that to view, things super we a of five that may know look put a So, are what long how dominant those run I predictor. now, and bit We that really XX on short-term so and in do years,

John Campbell

showing question is Yeah, XXbX-X kind near-term this driving a the like but quite box out you've chat it results. obviously, for to with investors. got of need often Don't hit all while shares. we investing for be balance plan you with standard makes a sense. sure. believe one balancing I zinger, I mean, some question. that's seen a I've get in want is Street, here, the to Glenn, for just was from Wall about of the that's the But at someone asking delicate it. I long-term, It's act a this

you to the why So do respond how here? sell question,

Glenn Sanford

Yeah.

this I not really have expire selling, that that but options XXXX prefer be So were I in actually set year. to

I ironically, so optimistic the stock And because was I the around made last year. very mistake,

options price, those taxable big higher half of about down a for me. took at event I a So

amount, rebuild then big sale for from trying has whack an one because that's me taxes, literally million sales. doing opposed just portion and it it a of really a a, -- to to were big so my -- bit something options And $XX-something in was little came of and the small shares cash personally, just did just I as personal akin that think, exercised pay that was but to which I those been were of reserves a sales exercise a -- that to X,XXX own day,

think, in the the exactly a I the that one in Technically, I do that So really idea. a September. place $XX was is has floor share. I'm it kind XXbX-X current plan would of price sure way the not of but same future, through,

I'm not XX%. So it's below selling.

that create different So scenario. a may

really all later the that a just stock my that stock be to of this on still later this big I beyond continues is holdings, whole stock the whack the but pressure and idea. under That's reason, that. was but around year. some expire really For year, own in obviously control options core

John Campbell

on makes and There the also sense. was Yes, about question a slido curious this. myself

ground when So that loan to number off kind of, talk contributing? how gotten and far it the set-lending. thus start you've expect about to really of officers, you us far The

Glenn Sanford

then There's out Yes. into which It's of They've our some We're is officers I of network in building transactions Started we've in our states. loan Denver, agents. kind actually XX Arizona. loan some a third were and got got think each in of Illinois, done, got the different some we've approximately green got mortgage the It's also the really kinks officers. Kind out XX-plus few system, diligently move shoots. the really really months, and part good Lending of working now for create and Lending couple Lending of of the the the process a JV. lot to and of -- team last in Stearns part working our a been Kind consumers in

business. And parts of refinance of not yet, exclusively versus getting on huge there refinance, so, our some now. momentum. is lenders is model purchase-based We're on relying other It's but going any not which neat virtually no that, mortgage it's is almost in right one the ours

success position lending more really a good have we that to to eventually in build own are also retail-oriented branches. and So start then our

the business. in related it's as sources. loan he'd own loan joint generated These kind eXp like Realty actually unique So has from of volume Stearns of see exclusively business. non-eXp venture Glenn we're really XX% a statement bringing are that, book a of come that their in to approaching it the not made officers

that has heart so, I And up Lending think, it's -- results to that direction. officers. he's in year, on especially measurable right going is in that before. following financials. this and And his start one third up the you'll say start I this, the he's loan those really Glenn I feel business think And we'll and team like this Stearns quarter, quarter, have fourth path been show would pipeline into, start of I later actually to And building done Kind really the from the our

John Campbell

one and question big you two-part my billion last pretty for of you first, on my guys. But here. event a this year. kind side. got I've hear. question crossed was to Great Big Okay. of last is revenue quarterly $X picture last That

is now quarters of shown XQ three including that weaker. You've over together seasonally billion, straight $X

on whatever could the that but do you milestone, path, the is, guys you $X that? of When you So, cross medium think. talked term, are years. next When of agents think And billion good a part have revenue? guys term, in then, is you the second really near to five you the XXX,XXX

Let just kind front. get latest that of net view your divisional on

Jason Gesing

the guess it's first we've at quarter. year, our possible macro but best and certainly, I got is other Yes. moment Well, it mean that billion some happen XXXX, $X headwinds we'll could that things. have this my

aspiration in bit number again, is is call So time. to billion of I I see aspirational. reasonable believe, the of that shot do But five my revenue a in $X agents of in it achievable kind I first, XXX,XXX the where there's a little over XXXX an in a The terms quarter. at time number years, it think I -- the frame.

our So if I going to cries. X.X be like And these eventually think market, could great that we internal but to we rallying be, love of have a sort we be where we to we have part again will International internal agents. is of million love sort it, proposition come. it's great almost job, the of if estate we a continue value being to think really planet. we dreams, And that, they field we focus agent-centric the just will the real most on brokerage the of if on do build and agent

on that being benefits real some a eventually, And super the all work focused estate of continue I the best other translates Score. over just solid organization, Promoter Net super, which result, the think, really count we on so, as well-run planet to into time. a on And translates building into agent brokers

John Campbell

But allowances squeeze here. I actually on chat tax times. you I'm earlier, the probably here. of absolutely. meaning I in lied, is -- a couple the valuation for benefits, this came was you a Yes, and it's It's one in for I've and released you've more. to Jeff got asked question box, actually going

Just coming expected sustainability us -- and from touch be that that touch should issuance, the directly on is over the share on just of time?

Jeff Whiteside

generated tax it time. we've the it's I -- predict. to what is, over benefit as saw it's long And to sustainably Yeah. last take mean, John, know, able year. in our really We numbers a it's We're of the that you income it compensation hard hard deduction. period net probably a now fact on

function that So, it's it's price. stock of of a a cost, function and the

for what a our net mentioned. four this like last benefits get income I had mean two to the now we like this find it for three, books should deduction. company on take tax really come over that but long, continuing. variables we the it's And quarters. see level? calculate But At what and is, I've that thing it's up. cost So, can't those sure end we we the that we not We're hitting question for them quarter even I mean based of foreseeable just so but positive stock it the positive future, repeat the been out -- can probably price consistently until compensation where our goes,

to predict, calculate something going something can So say that's is the it term. in we can or should It's but forward near all, continue right now. that not I some extent

John Campbell

rundown. such great a great time. the quarter. the to Thanks appreciate And virtual me on for opportunity the hills a that's you of again in join Well, especially world, I giving you your Absolutely. guys

Jason Gesing

it. appreciate John,

Glenn Sanford

Chief earnings Awesome and Officer, this going Marketing up Courtney wrap call. is Chakarun, our to

Courtney Chakarun

Summit we Glenn. event annual XX our through hosted month. Orlando, Thank shareholder on next reminder, June A in XX. you, eXp is This have Florida

on look were either eXp campus you the an can if You side through agenda. actually

industry-leading as expshareholdersummit.com. here QR features. event agents, This in is guest shareholders, well this company sharing to our I year's a showcase presentation code to going which You highlights, business see see in could our as the successes official going also leadership, special our for today,

joining That's also opportunity we World stream to where made chat. and for that, you homepage, have be session length will us live eXp Thank the virtual today. general our the on QX we fireside are Holdings in XXXX, with eXp view today expworldholdings.com. available that So a campus. Earnings concludes a This

eXp World (EXPI) 4 May 222022 Q1 Earnings call transcript