eXp(US:EXPI)2021-11-03 00:14Financial Performance - Revenue for the three months ended September 30, 2021, was $1,110,480, a 97% increase from $564,017 in the same period of 2020 [80]. - The company reported a year-over-year revenue increase of 127% for the third quarter of 2021 [74]. - Total revenues for the three months ended September 30, 2021, were $1.1 billion, an increase of $546.5 million, or 97%, compared to $564.0 million for the same period in 2020 [88]. - Total revenues for the nine months ended September 30, 2021, were $2.7 billion, an increase of $1.5 billion, or 127%, compared to $1.2 billion for the same period in 2020 [96]. - Adjusted EBITDA for the nine months ended September 30, 2021, was $64.9 million, compared to $41.2 million for the same period in 2020, reflecting a significant increase [107]. Agent Metrics - As of September 30, 2021, the agent count increased by 82% to 65,269 from 35,877 a year earlier [71]. - The cumulative agent Net Promoter Score (NPS) was 71 through the third quarter of 2021, indicating high agent satisfaction [83]. Market Conditions - The existing-home median price reached a historic high of $352.8 thousand as of September 2021, a 13.3% increase from the same period in 2020 [74]. - The inventory of existing homes for sale in the U.S. was 1.27 million as of September 2021, down 13% from 1.46 million at the end of September 2020 [75]. - Mortgage interest rates averaged 2.9% for the third quarter of 2021, slightly down from 3.0% in the same quarter of 2020 [76]. Expenses - Commission and other agent-related costs were $1.0 billion for the three months ended September 30, 2021, an increase of $513.8 million, or 99%, compared to $517.2 million for the same period in 2020 [88]. - General and administrative expenses increased to $64.6 million for the three months ended September 30, 2021, up 114% from $30.1 million for the same period in 2020 [90]. - Commission and other agent-related costs for the nine months ended September 30, 2021, were $2.5 billion, an increase of $1.4 billion, or 130%, compared to $1.1 billion for the same period in 2020 [97]. - General and administrative expenses for the nine months ended September 30, 2021, were $171.6 million, an increase of $89.5 million, or 109%, compared to $82.1 million for the same period in 2020 [98]. - Sales and marketing expenses increased to $8.7 million from $3.3 million for the nine months ended September 30, 2021, representing an increase of $5.4 million or 162% due to higher advertising and lead capture costs [99]. Income and Cash Flow - Net income for the three months ended September 30, 2021, was $23.8 million, a 60% increase from $14.9 million for the same period in 2020 [88]. - Cash provided by operating activities increased by $109.2 million to $198.4 million for the nine months ended September 30, 2021, compared to $89.2 million in 2020 [110]. - As of September 30, 2021, cash and cash equivalents totaled $98.1 million, with no bank debt or debt instruments issued [109]. - Net working capital increased to $116.7 million, or 1%, compared to December 31, 2020, primarily due to an increase in agent and commission receivables [110]. Investments and Future Plans - The company expanded its operations into multiple international markets, including South Africa, India, Mexico, and several European countries in 2021 [82]. - The company continues to invest in product and infrastructure improvements for the Virbela software platform to support the growing demand for remote and hybrid operating models [85]. - The company anticipates continued growth and investment in affiliated services, including mortgage origination and title services, although performance will depend on utilization by eXp Realty agents [86]. - The Company plans to utilize excess cash on hand to support growth initiatives and enhance technology platforms [105]. Taxation - The Company's provision for income taxes amounted to ($33.3) million for the nine months ended September 30, 2021, resulting in an effective tax rate of negative 102.46% [101]. - The effective tax rate decreased significantly due to the release of the valuation allowance and higher deductible stock-based compensation [101]. - The Company has no known material cash requirements as of September 30, 2021, relating to capital expenditures or commitments [105].