Financial Data and Key Metrics Changes - The company generated $954.9 million in revenue for Q1 2025, a 4% increase in real estate sales volume driven by higher home sales prices and increased productivity in the international segment [43][54] - The agent count decreased to 81,904, but there was an increase in transactions per agent, indicating the retention of high-performing agents [43][54] - Non-GAAP gross margin was 13%, down 70 basis points year-over-year, while GAAP gross margin was 8%, down 30 basis points year-over-year [44][45] - Adjusted EBITDA was $2.2 million, down year-over-year due to margin compression and increased investments in the agent value stack [46][54] - Cash position improved by 6% year-over-year, ending the quarter with $115.7 million [48][54] Business Line Data and Key Metrics Changes - North America Realty segment generated $923 million in revenue with an adjusted EBITDA of $7.7 million, remaining the largest revenue and profit generator [48] - International segment revenue increased by 103% year-over-year, with a significant narrowing of adjusted EBITDA loss, improving by 52% year-over-year [49][54] - The affiliated services segment, primarily success, showed modest revenue growth with an adjusted EBITDA loss of $1.5 million [49] Market Data and Key Metrics Changes - The company launched operations in Peru and Turkey, with plans for Egypt, aiming for 50,000 agents across 50 countries by 2030 [14][18] - The international expansion strategy has been refined to include localized marketing and partnerships, leading to successful launches [15][18] Company Strategy and Development Direction - The company aims to build the most agent-centric real estate brokerage globally, focusing on a platform that integrates various business units [10][11] - Investments in technology and AI are prioritized to enhance productivity and operational efficiency, with a focus on long-term returns [9][10] - The company is adopting a self-managed, regionalized team structure to improve accountability and agility in international markets [67] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the tough macroeconomic environment but expressed confidence in the company's ability to attract and retain high-performing agents [43][54] - The leadership team is actively reviewing expenses and building plans for more efficient operations in the latter half of 2025 [47][80] - The company is focused on leveraging AI and automation to improve operational efficiencies and unit economics [78][79] Other Important Information - The company was named the number one real estate company in the U.S. by transactions for the third consecutive year [29] - The company received recognition as a top workplace by USA Today, ranking 18th based on employee feedback [30] Q&A Session Summary Question: How is eXp leveraging AI now and what might the enabled platform look like in the future? - The company has been pivoting towards rapid changes with AI, utilizing tools from OpenAI and Google Workspace to enhance operations and tech stack development [57][59][62] Question: What have been the learnings from opening new countries and how have launches changed? - The company has evolved its approach to international launches by focusing on local leadership, understanding market pain points, and leveraging technology for streamlined operations [64][66] Question: Can you elaborate on the agent count trends? - The company continues to retain productive agents, with a 22% improvement in agent attrition quarter-over-quarter, indicating a focus on high-performing teams [70][71] Question: What feedback are agents giving about the cosponsored program? - Agents are excited about the cosponsored program, which fosters collaboration and growth by connecting agents with varying levels of experience and resources [73][75] Question: How should we think about operating expenses for the remainder of the year? - The company does not flex its cost structure dramatically but is focused on efficiency and examining unit economics to find opportunities for cost savings [76][80]