For the three months ending June 30, 2015, the Company reported revenue of $5,584,963 which represents a revenue increase of 57% compared to $3,550,011 for the same quarter 2014. In addition the company grew revenues over 52% for the first six months of 2015 vs the same period last year. The Company reported a GAAP net loss for the quarter of $5,003,204 most of which was attributable to accelerating certain stock compensation expenses based on reaching certain milestones in Atlanta, Georgia well in advance of growth goals and, in particular due to an increase in the publicly traded price of the company shares during the quarter and the intrinsic value method by which the Company values certain stock options issued prior to October 2013.
“As a company, from our staff, agents, brokers and the leadership team we are excited about our continued growth. Toward the end of 2014 and after the introduction of the company’s enhanced agent ownership initiatives we have seen an acceleration in agent attraction and an increase in overall agent retention which translates to a significant increase in revenue growth. We expect that this trend will continue as more and more agents look at the overall value proposition that eXp Realty represents in the industry. In addition to reduced overhead and generally higher compensation for agents and brokers, agents and brokers are attracted to education, technology, revenue sharing, and the opportunity to build an ownership stake in the public company,” reported Glenn Sanford, CEO of eXp Realty International.
The Company is also pleased to provide some additional growth metrics. Through the end of July 2015 the company has benefited from agent growth of 50% year to date bringing the total agent count up from 467 at the beginning of 2015 to in excess of 700 agents today. In April of 2015 the company announced that Gene Frederick and a number of other agents / brokers were in the process of joining in Austin, Texas. Since that time eXp Realty has added 41 real estate professionals to its roster in Austin, Texas and has learned that it is now one of the fastest growing real estate brokerages in Austin.
In June 2015, the company represented through its agent and broker base approximately $100 million in real estate sales. This represented the highest sales in any month previously and put the company on a going forward sales run rate of $1 Billion annually. Through all of 2014 the company did approximately $505 million in real estate sales.
Note: The Company accounts for stock options issued prior to October of 2013 using the intrinsic value method of accounting. As a result, the Company records non-cash compensation expense or benefit to reflect the change in intrinsic value at each reporting date. During the six month period ending June 30, 2015 the change in intrinsic value accounted for $4.03 million of compensation expense.
About eXp World Holdings, Inc.
eXp World Holdings, Inc. is the holding company for a number of companies most notably eXp Realty LLC, the Agent-Owned Cloud Brokerage™ as a full-service real estate brokerage providing 24/7 access to collaborative tools, training, and socialization for real estate brokers and agents through its 3-D, fully-immersive, cloud office environment. eXp Realty, LLC and eXp Realty of Canada, Inc. also feature an aggressive revenue sharing program that pays agents a percentage of gross commission income earned by fellow real estate professionals who they attract into the Company.
eXp World Holdings, Inc. also owns 90.5% of First Cloud Mortgage, Inc. a Delaware corporation launched in 2015 and now licensed to originate mortgages in Arizona, California, New Mexico and Texas.
The corporate name change to "eXp World Holdings, Inc." has been approved by our Board and stockholders but is not yet effective, pending the mailing of a definitive information statement to our stockholders in accordance with applicable rules and a 20-day notice period thereafter.
As a publicly-traded company, eXp World Holdings, Inc. uniquely offers professionals within its ranks opportunities to earn equity awards for production and contributions to overall company growth.
The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Such forward-looking statements speak only as of the date hereof, and the Company undertakes no obligation to revise or update them. These statements include, but are not limited to, statements about the Company's expansion, revenue growth, operating results, financial performance and net income changes. Such statements are not guarantees of future performance. Important factors that may cause actual results to differ materially and adversely from those expressed in forward-looking statements include changes in business or other market conditions; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company's Securities and Exchange Commission filings, including but not limited to the most recently filed Annual Report on Form 10-K.