The following is a summary of the EXp Word Holdings, Inc. (EXPI) Q1 2024 Earnings Call Transcript:
Financial Performance:
eXp reported Q1 revenue of $943 million, an 11% increase year over year.
The Adjusted EBITDA for the quarter dropped to $11 million, down from the same period last year at $14.6 million, primarily because of increased SG&A.
A 2% decrease in agent count impacted revenue negatively by $8 million, while gains in agent productivity and increased home sales prices contributed $94 million and $46 million to revenue growth respectively.
eXp also generated an additional $15 million in top-line growth through the expansion of lease, rental, and other auxiliary services.
Business Progress:
The company is expanding market share and improved its Net Promoter Score from 70% to 73%.
eXp discontinued VirBELA operations to focus on its metaverse platform, Frame.
Implemented initiatives in Q1 as part of a $20 million profit improvement plan are projected to result in $27.3 million in profit and cost savings per year.
International segment reported a 45% increase in revenue YoY.
The company introduced 28 different AI agents in Luna 2.0 to increase operational efficiency.
eXp is attracting high-quality teams and agents, as data shows eXp team agents are 77% more productive than individual agents.
In response to the industry-wide downfall in agent count, eXp launched a profit improvement strategy targeting an annual cost savings of roughly $13.9 million and a profit increase of about $30.3 million.
The company introduced an amended revenue sharing strategy to incentivize more agents and foster growth.
eXp is taking a proactive approach to an anticipated industry rule change in the summer, equipping agents with scripts, tools, and presentations.
eXp expects a significant inflow of independent agents joining in the near future.
More details: eXp World IR
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