eXp World (EXPI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 5% year-over-year to $1.30 billion, driven by higher agent productivity and home sales prices, despite a 1% decline in agent count and a challenging U.S. real estate market.

• Adjusted EBITDA rose 22% year-over-year to $32.8 million, reflecting improved cost efficiencies, revenue growth, and a profit improvement plan.

• Net income from continuing operations was $11.8 million, up 4% year-over-year; diluted EPS from continuing operations was $0.08.

• Returned $56 million to shareholders through $48.2 million in share repurchases and $7.5 million in dividends.

• Agent Net Promoter Score improved to 76, reflecting enhanced agent support and technology investments.

Financial highlights

• Q2 2024 revenue: $1.30 billion, up 5% year-over-year; sales volume: $51.9 billion, up 7%.

• Adjusted EBITDA: $32.8 million, up 22%; operating income: $18.5 million, up 44% year-over-year.

• Net income from continuing operations: $11.8 million; total net income including discontinued operations: $12.4 million.

• Cash and cash equivalents at June 30, 2024: $108.4 million; adjusted operating cash flow: $60.4 million.

• Cost per transaction decreased 8% year-over-year.

Outlook and guidance

• Management expects continued market challenges due to high mortgage rates and regulatory changes but is focused on agent productivity, technology investment, and international growth.

• Gross margin for the second half expected to follow typical seasonal patterns and be similar to 2023.

• SG&A expected to rise mid-single digits in H2 due to salary adjustments, event timing, and legal costs.

• No material changes to critical accounting policies or estimates are anticipated for the remainder of 2024.