Exp World Holdings, Inc. · NASDAQ:AGNT
Exp World — Q4 2023 Earnings Presentation
34 slides from Exp World's earnings presentation, March 2024
Slide 1: Investor Presentation Q4 2023
Investor Presentation Q4 2023
Slide 2: Safe Harbor
Safe Harbor The statements contained herein may include statements of future the difficulty of keeping expense growth at modest levels while expectations and other forward-looking statements1 that are based increasing revenues; and other risks detailed from time to time in the on management’s current
Slide 3: eXp World Holdings | Highlights
eXp World Holdings | Highlights Cloud-Based Increasing Solid Global Strong Agent Fastest Brokerage Market Share Financial Network Value Prop Growing Model Profile Efficient operating >87,000 agents1 Consistent 24 markets Suite of offerings #1 growth model built to positive cash worldwide enable agent s
Slide 4: Real Estate is Cyclical
Currently Experiencing Real Estate is Cyclical Downward Market Drivers UPWARD MARKET DRIVERS DOWNWARD MARKET DRIVERS EXPANSION HYPERSUPPLY The industry continues to grow through cycles. 1975-2023 257% growth in number of U.S. realtors* RECOVERY RECESSION *Source: National Association of Realtors, 1/
Slide 5: High-Quality Productive Agents
High-Quality eXp's Model Drives Retention Among Productive Agents Highly Productive Agents Attrition by U.S. Agent Annual Productivity 0 - 2 sales 80.7% 3 - 7 sales 11.5% 4.5x 8 - 12 sales 3.6% Top producing agents are 4.5 times less likely to churn than low producers 13 - 20 sales 2.5% 21+ sales 1.
Slide 6: We Were Built For This
A Sustainable Model Through We Were Built For This All Market Environments Strong agent value proposition Long-term business opportunities ● Agent support drives organic market ● New Markets share growth, retention and productivity ● New Products Efficient Operating Model ● Lower fixed costs driven by
Slide 7: Superior Agent & Broker Value Proposition
Superior Agent & Broker eXp's Cloud Model Enables Richer Unit Economics Value Proposition and Broader Geographical Reach For Agents Traditional Brokerage vs. eXp Realty Operating Model Operating Model ● High operating expenses and capital costs associated ● Cloud-based model with minimal brick-and-m
Slide 8: Model Drives Organic Growth & Retention
Model Drives Organic Agents Are Incentivized to Build the Platform Growth & Retention and Stay at eXp Through Revenue Share Agents Driving Organic Growth | Receiving Revenue Share 15000 14,742 19.9% of 14,709 19.9% of Agents Agents 12500 11,859 18.8% of Agents 10000 Agent Count U.S. Agents Active in
Slide 9: Unique Model Provides Agent Equity Opportunities
Unique Model Provides Agents & Brokers are Less Likely to Pursue Agent Equity Opportunities¹ Other Opportunities if They are Shareholders Equity Awards Agent Equity ICON Agent Award Through Incentive Commission Program Program Additional $4,000 stock Top agents can receive up to $16,000 in stock awa
Slide 10: Growth-Oriented & Agent-Led Culture Driving Industry-Leading Programs
Growth-Oriented & Agent-Led Culture Driving Industry-Leading Programs eXp UNIVERSITY MENTORSHIP MASTERMINDS & BROKER SUPPORT TASK FORCES The most innovative Whether you are This is your opportunity Our State Broker Teams university OWNon&the planet! GROW brand new or starting to collaborate with top
Slide 11: Enhancing The Lives Of Our Agents And Our Communities
Enhancing The Lives Of Our Agents And Our Communities We are committed to creating an We are dedicated to the betterment We are committed to wellbeing. equitable, diverse and inclusive of our communities. culture for our employees, agents eXp’s affiliated 501(c)(3) and brokers. The first week of Octobe
Slide 12: Cloud-First Operating System Creates Competitive Advantage
Cloud-First Operating System Creates Competitive Advantage eXp is one of the only companies operating within a Best-in-class technology partnerships designed to metaverse at scale enhance agent productivity ● Frame is a highly customizable spatial computing platform, ● Industry-leading CRM options f
Slide 13: Multiple Expansion Opportunities
Multiple Expansion Opportunities 13
Slide 14: A Large & Underpenetrated Addressable Market
A Large & Underpenetrated Addressable Market Total Addressable Market $465B +$465B $204B Expanded Opportunity 5 International Residential Real Estate Brokerage +$204B $112B Expansion 4 U.S. Commercial Brokerage +$112B Growth Verticals 3 $69B Mortgage, Title & Escrow +49B 1) NAR - 2023 Existing Home
Slide 15: Segments Reflect eXp's Strategic Priorities
Segments Reflect eXp’s North American Realty, International Realty, Strategic Priorities Virbela And Other Affiliated Services North American Realty Virbela and Web-based Metaverse Platforms ● Profitable core business funds ● Continue to develop the core Virbela virtual agent-centric innovation world te
Slide 16: Strengthening Our Agent Value Proposition
Strengthening Our Agent Enhance Agent & Consumer Offering While Generating Attractive, High-Margin Value Proposition Revenue Streams Enhancing Our Expanding Success for Service Offerings Personal Development Delivering industry-leading coaching and Driving high-quality buyer and seller certification
Slide 17: One Brokerage Expanding Globally
One Brokerage eXp Is Capturing Global Market Share With 67% Expanding Globally Year-Over-Year¹ International Revenue Growth Effective Operations In New Markets Driven By: In-Country Leadership & Regional Shared Service Hubs Experienced local teams in each geography are responsible for agent operatio
Slide 18: Expanding the Metaverse Opportunity
Expanding the Frame: Next Generation Metaverse Opportunity Spatial Computing High Level ● Works on desktop, mobile, and immersive hardware like Meta Quest 3 and Apple Vision Pro ● Squarespace but for the spatial web. For other businesses, freemium SaaS plans launched in beta last year. ● Presented b
Slide 19: Financials
Financials 19
Slide 20: Track Record of Cash Flow Generation
Track Record of Cash Flow Generation 242 Adjusted EBITDA (1) 250 Adjusted Operating Cash 207 202 200 Flow (2) 150 $ IN MILLIONS 99 100 78 58 61 58 51 50 23 13 4 2 0 (4) (50) 2017 2018 2019 2020 2021 2022 2023 (1) Adjusted EBITDA is a non-GAAP term, “Use of Non-GAAP Financial Measures” as disclosed i
Slide 21: Operating Efficiently
Lowest GAAP Operating Operating Efficiently Expenses Per Agent Operating Expenses / Agent | Q3 2023 Operating Expenses / Transaction | Q3 2023 $40,000 $10,500 $31,487 $30,000 $8,000 $5,819 $20,000 $5,500 $4,200 $9,573 $10,000 $3,000 $1,857 $1,468 $917 $1,531 $1,335 $988 $689 $590 $0 $500 eXp World Any
Slide 22: Returning Capital to Shareholders
Returning Capital to Shareholders Significant Share Repurchases and Dividends BOD increases repurchase Cumulative Share Repurchases Cumulative Dividends Paid authorization $1 billion total 634 BOD increases quarterly dividend 600 $600M by 11.1% to $0.05/share 65 58 537 568 $500M BOD increases quarter
Slide 23: Q4 2023 Segment Financial Highlights
Q4 2023 Segment Financial Highlights U.S. Residential Real Estate Market Dynamics ● In Q4, home sales declined 8% compared to the same period last year(1) ● 30-year, conventional, fixed rate mortgage was 6.6% in December 2023 vs 6.4% in December 2023(2) ● Inventory remains constrained relative to pre
Slide 24: FY 2023 Segment Financial Highlights
FY 2023 Segment Financial Highlights ● Despite a significant market decline, eXp World Holdings 2023 Adjusted EBITDA(1) was down modestly vs. 2022 Other N American International Corporate & eXp World FY 2023 Virbela Affiliated Realty Realty Eliminations Holdings Services Revenue $4,220.1M $53.9M $7.3M
Slide 25: 2024 Roadmap
2024 Roadmap Double down on Deliver new offerings to Prudently manage multi-decade International drive agent success and expenses to drive Adjusted opportunity eXp revenue growth EBITDA growth Continued New divisions create Leverage technology to momentum with 67% opportunities in Farm & drive cost
Slide 26: eXp World Holdings Leadership
eXp World Holdings Leadership Founder-Led and Seasoned Team Glenn Kent Cheng Sanford Principal Financial Officer Founder & Chairman & Chief Accounting Officer CEO, eXp World Holdings CEO, eXp Realty James Jason Gesing Shoeb Bramble Chief Industry Ansari Chief Counsel Relations Chief & Corporate Offi
Slide 27: eXp Realty Leadership
eXp Realty Leadership Founder-Led and Seasoned Team Michael Patrick Carolyn Valdes O'Neill Merchant Chief Growth Chief Operating Chief Officer Officer Marketing Officer Mike Leo Vein Pareja Executive Chief Strategy Vice President, Officer People
Slide 28: Investor Relations
Investor Relations CONTACT [email protected] | 360-685-4206 2219 Rimland Dr, Suite 301, Bellingham, WA 98226 expworldholdings.com
Slide 29: Appendix
Appendix
Slide 30: Company history timeline 2009-2023
2009 2010 2011 2012 2013 eXp Realty is founded eXp celebrates 1-year eXp recognized as eXp Realty eXp World Holdings goes anniversary, operating in 11 Innovator by Inman launches in Canada public on OTCQB exchange states 2014 2015 2016 2017 2018 Founder and CEO Glenn Sanford eXp launches Agent Equit
Slide 31: Awards and recognition
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Slide 32: Awards and recognition
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Slide 33: Unique Model Incentivizes Agents and Brokers
Unique Model Incentivizes Agents and Brokers Highly Attractive Very Low Startup Costs Commission Structure And Commitment COMMISSION* PER TRANSACTION FEE* ONE-TIME COSTS* ● Agents receive an ● $25 Transaction Review Fee 80%/20% split on first ● $60 Risk Management Fee ● $149 one-time Sign-Up Fee (inc
Slide 34: Reconciliation of Non-U.S. GAAP Financial Measures
Reconciliation of Non-U.S. GAAP Financial Measures