eXp(US:EXPI)2022-11-01 16:00Financial Performance - Revenue for the three months ended September 30, 2022, was $1,238,975, an increase from $1,110,480 in the same period of 2021, representing a year-over-year growth of 11.5%[83] - Gross profit for the three months ended September 30, 2022, was $93,122, up from $79,543 in the same period of 2021, indicating a year-over-year increase of 16.5%[83] - Total revenues for the three months ended September 30, 2022, were $1,238.975 million, a 12% increase from $1,110.480 million in the same period of 2021[94] - Net income for the three months ended September 30, 2022, was $4.402 million, an 82% decrease from $23.814 million in the same period of 2021[94] - Adjusted EBITDA for the three months ended September 30, 2022, was $12.349 million, a 46% decrease from $23.054 million in the same period of 2021[94] - Total revenues for the nine months ended September 30, 2022, were $3,664.766 million, a 36% increase from $2,694.200 million in the same period of 2021[101] - Net income for the nine months ended September 30, 2022, was $22.625 million, a 66% decrease from $65.703 million in the same period of 2021[101] - Adjusted EBITDA for the nine months ended September 30, 2022, was $56.97 million, down 12.2% from $64.86 million in the same period of 2021[108] Expenses - Commission and other agent-related costs for the three months ended September 30, 2022, were $1,145.9 million, an 11% increase from $1,030.9 million in the same period of 2021[96] - General and administrative expenses for the three months ended September 30, 2022, were $89.5 million, a 38% increase from $64.6 million in the same period of 2021[97] - General and administrative expenses for the nine months ended September 30, 2022, were $256.2 million, a 49% increase from $171.6 million in the same period of 2021[102] - Sales and marketing expenses for the nine months ended September 30, 2022, increased to $11.5 million, up from $8.7 million in the same period of 2021[104] Agent and Market Expansion - As of September 30, 2022, the agent count increased by 30% year-over-year, reaching 84,911 agents compared to 65,269 agents in the same period of 2021[76] - The company expanded its operations into five new international markets in 2022, including The Dominican Republic, Greece, New Zealand, Chile, and Poland[87] - On July 1, 2022, the company acquired Zoocasa Realty Inc., enhancing its consumer real estate research capabilities[88] Economic Indicators - The average rate for a 30-year fixed mortgage was 6.7% in September 2022, compared to 3.0% in September 2021, indicating a significant increase in borrowing costs[79] - Existing home sales decreased to an annual rate of 4.7 million in September 2022, down 22.1% from the previous year[79] - The housing affordability index decreased to 104.4 in August 2022 from 145.6 in August 2021, indicating declining affordability for potential homebuyers[79] Cash Flow and Working Capital - Cash provided by operating activities decreased by $11.1 million to $187.32 million for the nine months ended September 30, 2022, compared to $198.41 million in 2021[112] - Cash used in investment activities increased to $18.89 million for the nine months ended September 30, 2022, compared to $13.66 million in the same period of 2021[112] - Cash used in financing activities increased to $156.38 million for the nine months ended September 30, 2022, from $145.14 million in 2021[112] - Net working capital increased by $7.3 million, or 6%, to $139.82 million as of September 30, 2022, compared to $132.50 million at the end of 2021[110] - The company expects existing cash balances and cash flows from operations to be sufficient for operating requirements for at least the next twelve months[109] Taxation - The effective tax rate for the nine months ended September 30, 2022, was negative 56.2%, compared to 102.5% for the same period in 2021[105]