With mortgage rates rising, inventory falling in many metro areas, and transaction volume continuing its decline, agents and brokers are trying to differentiate themselves. Glenn Sanford, founder and CEO of eXp, says that this means being more agent-centric.
“To drive the next stage of eXp’s growth, we’re actually really, one of the reasons I returned as CEO of eXp Realty to really focus on the agent-centric nature the real estate brokerage, leveraging out our scale with our ultimate goal of being the No. Sanford spoke to analysts and investors listening to Tuesday’s fourth quarter earnings call.
eXp World Holdings, parent company of eXp Realty was able to implement a agent-centric approach in 2022. This led to a 22% increase in revenue to $4.6 Billion, a 15% increase in closed transactions to 511 859 sides and a net income to $15.42 Million.
eXp’s income fell year-over-year from $81.16 millions in 2021 to the lowest of all three statistics.
Even more impressive is the fact eXp’s strong year-over-year financial results despite revenue falling from $1.076 billion to $933 million Q4 2021, to $933 millions in Q4 2022. The firm also saw a 13% drop in closed transactions year-over-year to 109,168. It also recorded a net loss ($7.2 million) compared to a net profit of $15.46million.
eXp has expanded to six new international markets in 2022 including the Dominican Republic and Chile. However, executives stated that the North American Realty segment which generated $4.552 billion in 2022 is the firm’s primary driver of revenue.
“We are very, very lucky in our business to have North American business driving growth and profitability. This allows us to invest in North America, as well as international and in our technologies,” Jeff Whiteside (firm’s CFO) said.
eXp is a tech-focused brokerage that is well-known for its cloud-based structure. However, Sanford stated that the firm continues to invest in its virtual reality structures.
Sanford stated that Virbela is one of the things that we continue to do, which is to invest there, as that’s the single-enabling tech that’s allowed our growth. In fact, you’re here at one of the many Virbela campus that we maintain for various purposes, including the shareholder meeting today. Frame VR, a web-based Metaverse platform that is super accessible from mobile and desktop, is another platform we continue to invest in.