Financial Highlights – 2015 vs 2014
- For the full year ended net revenues increased by 71% to $22.87 million from $13.37 million.
- Fourth Quarter net revenues increased 80% Year over Year to $6.4 million.
- For the full year ended Cash Flows from operations increased 42% to $346 thousand from $244 thousand.
- The Company’s cash position was $571,814 as of December 31, 2015, up from $353,374 at the end of 2014.
- Net real estate brokerage agent and broker base in 2015 increased by 84%, from 466 to 858 agents.
- GAAP Net Loss of $4.58 million in 2015 vs Net Income of $103,843 in 2014.
- The 2015 loss is primarily attributable to the required accounting treatment of our stock options that were issued prior to us being a public company.*
The Company announced in February that it had surpassed 1,000 real estate agents and brokers who affiliate with the Company across 35 states and parts of Canada.
Glenn Sanford, Founder and CEO of eXp Realty stated, “Our 2015 performance generated record results for our agent-owners and shareholders in alignment with our internal modeling of the overall cloud-based real estate brokerage model. During 2015 we started to realize certain economies of scale relative to the cloud-based model that we have been building since 2009, enabling us to advance into a more mature operating enterprise. We also satisfied all remaining debts in 2015 and are now able to start building a cash position in the company while also starting new initiatives, most notably First Cloud Mortgage.”
“In 2015 we also launched two new initiatives for the benefit of our agents and brokers: Making it Rain – our online lead generation program and, our Stock Compensation Plan. Both of these programs provide direct benefit to our agents and brokers while providing the company with additional cash inflows that the Company will utilize as we continue to scale operations both from a talent and technology perspective. Our unique agent-owned business model is ideally suited to the driven, entrepreneurial agents and industry leaders whom we continue to attract,” said Sanford.
*Note: As explained in the Company’s Annual Report on Form 10-K, the Company accounts for stock options issued prior to October of 2013 using the intrinsic value method of accounting. As a result, the Company is required to revalue these outstanding options at each balance sheet date and record a non-cash compensation expense or benefit to reflect the change in intrinsic value. As our stock price has continued to increase during the twelve month period ending December 31, 2015 this has triggered an increase in intrinsic value of these options resulting in a $3.37 million additional compensation expense to be recognized during this period.
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.