eXp(US:EXPI)2024-05-01 19:55Financial Performance - Revenues for Q1 2024 were $943.1 million, an 11% increase from $848.5 million in Q1 2023 [104]. - Revenues for the three months ended March 31, 2024, increased by 11% to $943,054, compared to $848,453 for the same period in 2023, driven by higher real estate transactions and increased home sales prices [117]. - Commissions and other agent-related costs rose by 11% to $864,746, primarily due to the increase in real estate transactions and home sales prices [118]. - General and administrative expenses increased by 15% to $62,582, attributed to higher severance, employee-related expenses, and legal costs related to antitrust lawsuits [119]. - The operating loss for Q1 2024 was $18.2 million, compared to an operating profit of $0.2 million in Q1 2023, largely due to a $16 million litigation contingency accrual [114]. - Adjusted EBITDA for Q1 2024 was $11.0 million, down 24% from $14.6 million in Q1 2023 [115]. - Adjusted EBITDA decreased by 24% to $11,042, reflecting increased legal and employee-related expenses, despite higher revenues [126]. - North American Realty revenues increased by 11% to $927,137, while Adjusted EBITDA decreased by 16% due to rising legal and severance costs [128]. - International Realty revenues surged by 45% to $15,596, with Adjusted EBITDA improving by 9% due to increased revenue, partially offset by higher operational expenses [129]. - Other Affiliated Services revenues grew by 7% to $1,788, but Adjusted EBITDA decreased by 13% due to increased selling and administrative expenses [130]. - For the three months ended March 31, 2024, the company reported a net loss from continuing operations of $13.83 million, compared to a net income of $1.99 million in the same period of 2023 [135]. Market Conditions - The average rate for a 30-year fixed mortgage was 6.8% in March 2024, compared to 6.3% in March 2023, negatively impacting homebuying demand [98]. - The housing affordability index decreased to 103.0 in February 2024 from 109.3 in February 2023, indicating declining affordability due to higher mortgage rates and home prices [99]. - Existing home sales transactions decreased to an annual rate of 4.2 million in March 2024, a 3.7% decline from 4.4 million in March 2023 [100]. Operational Strategy - eXp's strategy focuses on organic growth in North America and select international markets, leveraging its cloud-based technology platform to enhance operational efficiencies [90]. Cash Flow and Capital Management - Net working capital decreased by $28.8 million, or 23%, from $124.84 million as of December 31, 2023, to $96.09 million as of March 31, 2024 [140]. - Net cash provided by operating activities increased by $4.51 million, from $56.14 million in Q1 2023 to $60.65 million in Q1 2024 [141]. - Cash used in investing activities increased to $5.25 million in Q1 2024, compared to $1.78 million in Q1 2023, primarily due to investments in affiliates [142]. - Cash used in financing activities was $40.81 million in Q1 2024, up from $36.21 million in Q1 2023, mainly related to stock repurchases and cash dividends [142]. - The company believes its existing cash and cash equivalents will be sufficient to meet operating requirements for at least the next twelve months [139]. - Current assets increased to $300.38 million as of March 31, 2024, from $266.48 million as of December 31, 2023 [140]. - The company does not have any known material cash requirements as of March 31, 2024, except for passthrough commissions to agents and brokers [138]. - The company seeks opportunities for acquisitions to enhance its portfolio and may fund these with existing cash balances and cash flow from operations [143]. Agent Metrics - eXp ended Q1 2024 with a global agent Net Promoter Score (aNPS) of 73, up from 70 in Q1 2023, reflecting a 4% increase [106]. - The number of agents and brokers on the eXp Realty platform decreased by 2% year-over-year to 85,780 [86].