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eXp World (NASDAQ: EXPI)
Q4 2024 Earnings Call
Feb 20, 2025, 5:00 p.m. ET

eXp World Reports Impressive Growth in Q4 2024 Earnings Call

Key Highlights of the Earnings Call

• Prepared Remarks
• Questions and Answers
• Call Participants

Remarks from Leadership

Denise Garcia — Manager, Investor Relations

Welcome to the eXp World Holdings fourth quarter and full year 2024 earnings call, streamed live from our metaverse platform, Frame. I am Denise Garcia, managing Investor Relations for eXp World Holdings. Today’s discussion will feature insights from Glenn Sanford, the founder and CEO; Leo Pareja, CEO of eXp Realty; Spring Bengtzen, CEO of Utah Life Real Estate Group; Wendy Forsythe, CMO of eXp Realty; and Kent Cheng, principal financial officer and chief accounting officer.

Before diving into the earnings discussion, we must address potential future outcomes. Forward-looking statements made today could differ from actual results due to various risks outlined in our SEC filings. We encourage everyone to review our latest annual report on Form 10-K and quarterly reports on Form 10-Q for a better understanding of these risks.

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We offer no guarantees regarding forward-looking statements. Today’s call is recorded, and a replay will be accessible afterward. For those joining in Frame, you can zoom into details by clicking the desired screen. Refresh the page if any content disappears. Help is available via the button on the bottom right for technical issues.

If you have questions during the presentation, please scan the QR code shown on screen or visit slido.com using event code EXPI to submit or vote on questions. The QR code will be visible on the right side throughout the chat. Now, I’d like to hand it over to Glenn to kick off the discussion.

Glenn Sanford — Founder, Chairman, and Chief Executive Officer

Thank you, Denise, and thank you all for being here. Before we review our fourth-quarter and full-year results, I’d like to highlight the comprehensive platform we’ve created at eXp. eXp North America is the core of our operations and drives our global expansion.

As we prepare to release segment-level reporting, it’s important to note that North American Realty remains a significant profit center. This solid foundation allows us to build our business effectively and sustainably. After over 15 years dedicated to developing the eXp platform, we’ve established ourselves as the only brokerage at scale offering a complete marketing suite along with essential personal development resources for agents.

Unique in our industry, we have health resources for agents and a meaningful revenue share program that includes equity. We’ve also invested in our innovative metaverse platform, Frame VR, enabling our worldwide operations.

Now, let’s focus on the fourth-quarter highlights. My attention over the past months has been on our international business, which is experiencing exciting growth. Recently, members of our team visited Egypt, including myself to assist with local launches and partnerships.

Last year concluded with international agent productivity at an all-time high. Notably, our international revenues soared by 63% year over year in Q4 2024 alone, showing a further acceleration of 72% for the quarter. This trend suggests that international markets will increasingly contribute to our overall success.

Moreover, international operations have improved in profitability, becoming more efficient as we scale in various countries. We are actively expanding into new markets, including Turkey, Peru, and Egypt. As of June last year, our global agent referral platform now operates in 22 countries, soon to reach 27. This expansion enhances our service capabilities and connects agents with opportunities worldwide, transforming how consumers engage with real estate across borders.

As we continue to grow internationally, we are witnessing significant increases in referral opportunities, strengthening the value proposition of our global presence.

eXp Realty Achieves Significant Growth as International Markets Drive Expansion

Strong Performance Indicators Reflect Positive Momentum

In recent discussions, it has been emphasized that international markets are becoming crucial for future growth at eXp Realty. While domestic opportunities continue to flourish, experts believe that roughly ten times more agents operate in global real estate markets compared to North America, pointing to exciting potential ahead.

Turning the focus to North America, Leo Pareja, Chief Executive Officer of eXp Realty, detailed key highlights from the region. “Thank you, Glenn, and thanks to everyone joining us today,” he began.

Pareja spotlighted the company’s Net Promoter Score (NPS), describing it as the organization’s guiding metric. With high customer satisfaction clearly linked to agent success, eXp’s NPS increased by three points from 2023 to 76 in 2024. This score is meaningful, especially given last year’s turbulence in the real estate industry.

Among various feedback metrics, a remarkable 88% of agents rated their transaction experiences as either nine or ten out of ten. Such feedback, alongside the constant accolades received by state broker teams, highlight the positive transactions and successful onboarding initiatives, such as the “white glove” process introduced recently.

A Culture of Excellence and Recognition

For the eighth consecutive year, eXp Realty has been recognized as one of the best places to work based on employee feedback. Pareja expressed pride in the culture cultivated at eXp and the innovative products developed for agents.

The company’s impressive growth stems from various important initiatives. Notably, the Fast Start attraction bonus distributed over $8 million to 7,000 agents in 2024. Additionally, to remain competitive, changes were made to the pioneering REV Share program.

Education and training programs saw an unprecedented surge, as eXp University recorded a 111% increase in engagement. The company also hosted regional rallies at 20 locations in 2024, with plans for 18 more in the upcoming spring of 2025. Addressing crucial topics like NAR legislation, eXp provided agents with essential biorepresentation and seller representation toolkits, aiming to support agent recruitment during a changing industry landscape.

Partnerships and Innovations Fueling Growth

eXp Realty maintains that collaboration is vital, distinguishing itself from competitors who solely identify as tech companies. As a tech-enabled brokerage, eXp has partnered with leading collaborative platforms. The launch of Canva Pro allowed agents to create over 68,000 designs within 30 days, with that figure reaching 189,000 designs after 60 days. Additionally, a partnership with Sisu, a top business tracking platform, aims to boost productivity and support project management for team leaders.

In the luxury sector, eXp’s group expanded by 46% in 2024, allowing membership applications from 22 countries and Puerto Rico. Over 8 billion high-end listings were promoted through eXp’s luxury platform in the same year. The introduction of the FastCap program, designed as an extensive six-week training option for agents, has already shown great promise, boasting impressive results for new hires.

Positive Momentum Heading into 2025

As eXp Realty enters 2025, it does so with significant momentum. A recent 12% increase in transaction count per agent, coupled with a 23% rise in sales volume per agent, highlights the effectiveness of ongoing training and support. December proved to be particularly fruitful for the company, with the top 10 teams in the U.S. closing a remarkable $439 million in sales volume.

Several high-profile agents have joined eXp, including Kris Cadwell from Denver, who brought over a $200 million volume team from Compass. Other notable adds include Gina Kirschenheiter and Travis Mullen, recognizable figures from The Real Housewives franchise, and Jeff Quintin from New Jersey, who has a decade-long history at Keller Williams. Notably, Justin McLaughlin returned to eXp after a brief departure, showcasing eXp’s strong retention and appeal.

Pareja concluded with an introduction to Spring Bengtzen, a new agent boasting 318 million in sales in 2024 with 660 closed units. She was previously a top agent at a competing firm and reflects the standout talent that eXp is attracting.

As conversations around growth and expansion continue, eXp Realty is positioned to harness agent engagement and innovative strategies for a robust future.

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eXp Realty Reports Strong Growth and Strategic Changes for 2024

Spring Bengtzen — Chief Executive Officer, Utah Life Real Estate Group

Thank you for having me, Leo. I’m excited to share that I believe eXp Realty is entering its 2.0 era. With over 80,000 agents, eXp has a strong foundation built on operational excellence. I was drawn to their commitment to agent production and growth.

My team, located in Salt Lake City, Utah, prioritizes production. eXp is home to some of the highest-producing teams in the industry, and I find the opportunities for collaboration with top agents to scale our retail production business highly appealing. Additionally, eXp’s enhanced revenue share program was a significant factor in my decision. Unlocking Level 5 for capping is a major advantage, as is the opportunity for ICON agents to access all sub-levels.

This is an unparalleled opportunity in the industry. Another crucial factor was your stock equity program, allowing agents to contribute up to 5% of their commissions. This program provides a unique chance for us to invest in both the company’s future and our own personal growth.

Having an ownership stake in eXp truly sets the brokerage apart and was a key reason behind my move.

Leo Pareja — Chief Executive Officer, eXp Realty

Thank you, Spring, for your insights. I will now pass it to Wendy.

Wendy Forsythe — Chief Marketing Officer, eXp Realty

Thanks, Leo, and thank you, Spring. In 2024, we aim to align our eXp value stack with top-notch tools and services for our agents. Our goal is to make our partnership so valuable that agents wouldn’t consider moving to another brokerage. As you can see from the graphic displayed, we have numerous elements as part of our value stack.

This strategic realignment is having a positive impact. During our January kickoff event, we encouraged our agents to take bold steps in 2025. eXp 2.0 will continue to innovate and disrupt the industry, and I’m pleased to see our agents’ enthusiasm.

One of our agents, Dan Beer from San Diego, shared how inspired he feels by our technology and the growth of his business. It’s these personal success stories that make a difference, whether it’s Shene, our youngest ICON agent from South Africa, or Dana from St. Louis, who brought her independent brokerage to eXp for more opportunities. These narratives play a vital role in attracting and retaining agents.

We’re looking forward to the year ahead and invite everyone to our upcoming marquee events in Montreal, Barcelona, and Miami to experience the energy of our eXp community. Now, Kent will review our financial highlights.

Kent Cheng — Principal Financial Officer and Chief Accounting Officer

I’d like to start by highlighting that at eXp, our financial success is driven by our agents. Their dedication and engagement are central to our performance. In Q4, our Net Promoter Score (NPS) for agent promotion remained impressive at 77, indicating strong satisfaction and loyalty among our agents. Despite facing macroeconomic challenges, we achieved $4.6 billion in revenue for 2024, marking a 7% increase from the previous year.

This growth underscores the resilience of our business model and the strength of our platform. We saw a 17% increase in real estate sales volume in Q4, aided by a 12% year-over-year rise in agent productivity. Additionally, our full-year international revenue soared by 63% in 2024, a notable increase from 50% in 2023, with Q4 alone seeing a 72% surge. However, we did report a net loss of $16.8 million from continued operations for the year.

When accounting for the $34 million litigation contingency and a $4.9 million impairment charge (net of tax), our adjusted net income was $12.2 million—an impressive 247% rise over the previous year. We also achieved adjusted EBITDA of $75.5 million for 2024, reflecting a 16% increase year over year despite facing significant market challenges.

On the next slide, I will outline the key financial and operational metrics that influenced our performance in the fourth quarter. We saw a 12% year-over-year revenue growth, with our productive agents being the main drivers. This contributed to a 6% rise in real estate transaction volumes.

Our agent productivity is demonstrated by a 12% increase in transactions per agent. We maintained a steady gross margin at 12%, not including revenue share and stock-based compensation. From a profitability perspective, adjusted EBITDA grew by 151%, all while managing costs effectively and continuing to support our agents.

Our cash position remains robust, ending the quarter with $113.5 million in cash, offering us strong financial flexibility as we advance our strategic initiatives. Operationally, we wrapped up the quarter with 82,980 agents, reinforcing our status as a leading agent-centric brokerage.

In summary, our full-year performance mirrors that of Q4, showing strong consistency even amidst challenging market conditions. For all of 2024, we grew our revenue by 7%. We achieved a solid gross margin of 12.6% when excluding revenue share and stock-based compensation. Adjusted EBITDA rose 16% to $75.5 million, and we successfully completed over 430,000 real estate transactions—a 3% increase from the prior year. Our sales volume reached $185 billion, up 9% year over year, aided by a 6% rise in transactions per agent.

Our North America Realty segment remains pivotal for both revenue and profit, growing by 11% in Q4 to $1.68 billion due to higher home sales prices and improved agent productivity. Overall, full-year revenue for this segment increased 6% to nearly $4.5 billion, while adjusted EBITDA surged 151% to $99 million.

Our international segment is also on the rise, growing revenue while becoming more profitable.

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eXp Realty Reports Strong Growth in Adjusted EBITDA and International Expansion Efforts

eXp Realty announced a remarkable 31% year-over-year improvement in adjusted EBITDA profitability. Their various affinity services, such as Frame and SUCCESS, have also made modest contributions to revenue and adjusted EBITDA. A point worth mentioning is our unique equity program, which has set us apart in agent compensation. In 2024, we issued 1.8 million shares to agents through this program, valued at approximately $22 million. Over the past six years, more than 13.3 million shares have been distributed, with a total estimated value of $227 million, highlighting our dedication to agent ownership.

Aside from issuing shares, we prioritize responsible capital allocation. In 2024, we repurchased more than $141 million in common stock, equating to over 11.9 million shares. This strategy allows us to uphold our shareholder ownership stakes and enhance equity value. Now, I’ll hand it back to Denise, who will guide our Q&A session.

Thank you.

Glenn Sanford — Founder, Chairman, and Chief Executive Officer

Thanks, Denise, and thanks to everyone for joining us today.

Denise Garcia — Manager, Investor Relations

Thanks, Kent. I’d like to start with a question for the team before we open the floor. Glenn, could you explain how our international operations differ from those in the U.S. and Canada?

Glenn Sanford — Founder, Chairman, and Chief Executive Officer

Absolutely. I’ve spent the past seven to eight months closely working with our international teams. During my recent visit to Egypt and Dubai, I observed the launch of the Egypt MLS in partnership with the government. This initiative is particularly intriguing given the ongoing debates about private marketplaces in the U.S. Studies show that properties listed in an MLS typically sell more quickly and for higher prices. Our U.S. partner, originally from Egypt, confirmed this with his Middle Eastern counterparts.

Internationally, we are at a stage similar to where the U.S. and Canada stood 30 to 40 years ago. The market lacks the advantages of a robust MLS, leading to a multitude of disparate portals that compete for advertising while charging agents hefty fees without investing in data quality. What we’re witnessing is eXp’s influence in professionalizing these markets. We are gaining recognition for introducing innovative practices and operational efficiencies. Our commitment to improving the agent experience in these international markets is yielding positive results.

As we expand, we are set to enter three new countries: Peru in March, Egypt once we finalize legal documents, and Turkey, which we anticipate launching in April. Additionally, we have a few more countries under consideration. We are continually enhancing our leadership and strategies to attract top talent in these regions. Similar to the concepts in the movie Moneyball, our focus is on bringing the best possible team to drive international growth. I am genuinely excited about this trajectory, as we are beginning to see early signs of the kind of exponential growth we experienced in the U.S. market around 2015 to 2018.

Denise Garcia — Manager, Investor Relations

Thanks, Glenn. Next, let’s hear from Leo. What is your strategy for supporting eXp agents in 2025?

Leo Pareja — Chief Executive Officer, eXp Realty

Thank you, Denise. Our approach in 2025 will build on the successes we’ve had in 2024. eXp has identified a unique niche that allows us to foster agent growth. I see our company as a platform where real estate entrepreneurs can pursue their individual ambitions. Our partnership with agents, whether they’re closing 8 to 10 homes annually or managing larger volumes, is critical to our approach.

We aim for operational excellence through high-quality technological partnerships while continually enhancing the value we offer. In 2025, we plan to intensify our investments in strategies that yield long-term growth. Our agent incentive programs, including collaborations with Sisu and Canva, will continue to expand. Moreover, we’re transitioning to Slack Pro to improve our internal communication.

Unlike companies that insist on building all their technology independently, we believe in leveraging the best available options while holding our partners accountable. Our focus also extends to training, with programs like FastCap ensuring agents have access to the resources needed for sustainable growth.

Looking forward, our goal is not merely quarterly or annual success; we are focused on creating a platform that sustains growth for decades to come.

Denise Garcia — Manager, Investor Relations

That’s great, Leo. Thank you. Now, Wendy, a question for you. Which components of eXp’s agent value stack are currently resonating the most with agents?

Wendy Forsythe — Chief Marketing Officer, eXp Realty

Thank you, Denise. The value stack graphic has been a key focus…

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Exploring eXp Realty’s Progress and Future Challenges in a Shifting Market

Denise Garcia — Manager, Investor Relations

To start, our offerings are designed to support agents throughout their daily tasks. Depending on the time of day, different tools may resonate more with our agents. For instance, Canva has been a standout success for marketing purposes.

In just the first 60 days, agents created nearly 190,000 designs using Canva. This platform has made it easier for agents to develop marketing materials. Another valuable tool is Sisu, which enhances accountability tracking for our agents. Keeping track of performance is vital for boosting productivity. FastCap also plays a significant role in helping agents develop or re-establish productive habits.

The support we provide is crucial. Last year, our expert care desk responded to over 3.6 million support requests and managed to answer calls in an average of 37 seconds, resolving most inquiries on the first attempt. When agents have immediate questions, quick support is essential. Moreover, we successfully onboarded 94% of new agents in less than 24 hours, which greatly benefits newcomers.

Another key aspect of our support system is ensuring agents receive their earnings promptly. We focus on the day commissions are paid, with 90% of transactions settling within 24 hours. Getting money quickly is critical, and these various elements contribute to agents conducting their business more effectively. Our goal is to facilitate their success.

Denise Garcia — Manager, Investor Relations

Great. Let’s transition to you, Kent. As you reflect on the growth mindset looking toward 2025, what are your thoughts on building from the advancements of 2024?

Kent Cheng — Principal Financial Officer and Chief Accounting Officer

Thank you for your question. The profitability in 2025 will likely hinge on the performance of the housing market. Currently, we see 30-year mortgage rates hovering around 6.9%. The forecast remains uncertain. According to Fannie Mae, they predict a 3% decline in the U.S. housing market during Q1, followed by modest growth in the latter half of the year.

Looking back at Q4 of last year, we performed well, with increased adjusted EBITDA and revenue growth. We optimized our cost structure to enhance productivity through new agent-focused incentives. Going forward, our focus will remain on investing in agent-based initiatives and technological improvements to strengthen long-term growth, as Leo has previously noted.

Denise Garcia — Manager, Investor Relations

Thank you, Kent. Now, I’ll open the floor to questions from analysts.

John Campbell from Stephens, you have the floor.

John Campbell — Analyst

Thanks, Denise, and thanks for your time, everyone. Leo, you’ve been a prominent voice in the ongoing discussions around the Compass controversy. Could you share your current perspective? How do you anticipate the landscape evolving?

Furthermore, if the industry becomes more fragmented, how might eXp Realty continue to adapt? For instance, could “House Hunters” play a part in that strategy, or are there additional routes you see available?

Leo Pareja — Chief Executive Officer, eXp Realty

Thank you for your question. My views on this topic are well-known. We stand out as a global operator in the real estate sector. The North American real estate market has an incredibly detailed and accurate data set, which many countries, including Australia and Japan, envy. In my opinion, responses driven solely by profit overlook consumer interests and could lead to serious legal repercussions for those involved.

If I were selling my home, I would choose to list it on the MLS without hesitation. For advice, I would recommend the same to you and your family. However, there are exceptions. Properties that are tenant-occupied for a long duration or new constructions in early stages can face restrictions. Yet, these are exceptions rather than the rule.

For the vast majority of transactions, maximizing exposure in a short time is paramount. This approach benefits sellers. Regarding potential fragmentation in the market, I remain firm that such a shift would disadvantage consumers. However, should it occur, eXp Realty is well-positioned with the largest platform and the most agents in the country, allowing us to respond effectively.

John Campbell — Analyst

Great insights, Leo. I appreciate your thoughts. Shifting back to the topic of profitability, Kent, your organization has managed costs effectively while achieving solid EBITDA growth this past year. Can we take a moment to review how that might continue moving forward?

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Examining Cost Structures and International Expansion: Insights from eXp Realty’s Leadership

Kent Cheng — Principal Financial Officer and Chief Accounting Officer

In response to a query about eXp Realty’s cost mix, Cheng noted that their expenses can vary significantly. The firm’s costs are largely flexible, particularly those related to support for border agents who complete real estate transactions. “A considerable portion of our costs can adjust based on transaction volume,” he explained. Additionally, the company’s investments in artificial intelligence are projected to enhance efficiency in the long run.

John Campbell — Analyst

Campbell added his perspective, indicating that understanding this cost structure is crucial. “That makes sense. Thank you,” he said in acknowledgment.

Glenn Sanford — Founder, Chairman, and Chief Executive Officer

Sanford then broadened the conversation to eXp’s international strategy, noting, “We are focused on entering additional countries, which inevitably adds to our costs. However, these investments are expected to yield significant revenue benefits as we scale over the next two to three years.” eXp aims to expand its presence while managing the associated costs effectively.

John Campbell — Analyst

Before moving on, Campbell sought further clarification about eXp’s transaction reporting, particularly regarding the shift from total transactions to focusing solely on real estate transactions. “Could you explain the reasoning behind this change?” he asked.

Kent Cheng — Principal Financial Officer and Chief Accounting Officer

Cheng confirmed the transition to reporting real estate transactions. He reassured Campbell that their current data remains consistent. “If you need to discuss specific numbers, I’m happy to go over them offline,” he offered.

Denise Garcia — Manager, Investor Relations

Garcia thanked Campbell and encouraged another question from analyst Matt Filek of William Blair.

Matt Filek — William Blair — Analyst

Filek asked about agent trends heading into 2025. “Can you provide context about domestic and international agent trends, especially in light of new market entries?” he inquired.

Glenn Sanford — Founder, Chairman, and Chief Executive Officer

Sanford shared insights on current challenges. “We are seeing a decrease in total agent count year-over-year. Last year, we lost approximately 29,000 agents, including adjustments in international territories. Despite this, we have a greater number of productive agents compared to last year, possibly adding up to 5,000 net productive agents within our platform,” he stated. This shift highlights the company’s focus on retaining high-performing agents amidst industry churn.

Leo Pareja — Chief Executive Officer, eXp Realty

Pareja reflected on their strategy, noting the overall agent churn, driven primarily by less productive agents. “In 2024, we anticipate that agent turnover, reflective of market challenges, may remain low. We’re concentrating on recruiting and keeping productive agents,” he noted. Pareja is optimistic that 2025 will be a better year for agent productivity.

Matt Filek — William Blair — Analyst

Filek requested more information regarding international profitability timelines. “Which countries are currently profitable, and when do you expect the overall international segment to reach profitability?” he asked.

Glenn Sanford — Founder, Chairman, and Chief Executive Officer

Sanford detailed eXp’s international ambitions. “Achieving profitability will take time as we aim to establish our presence in over 60 countries in the next five years. These expansions require considerable infrastructure and an iterative approach to local market strategies. Currently, mature markets like the U.K., France, and South Africa are performing well, with the U.K. being particularly strong, generating over seven figures in net income last year,” he concluded.

As eXp Realty strives for growth, the focus remains on managing costs while enhancing efficiency through technology and expanding its international footprint. The leadership’s careful navigation of these elements could ensure sustained profitability and market presence moving forward.

eXp Realty Explores New Growth Prospects Amid Market Shifts

Key Partnership and Future Plans with CoStar

Matt Filek — William Blair — Analyst

Thanks, Glenn. I’ve got one last question. Although it’s a smaller segment of your business, I noticed that your commercial brokerage recently partnered with CoStar. Can you briefly discuss this partnership, the number of commercial brokers you have, and your growth strategy for this segment?

Leo Pareja — Chief Executive Officer, eXp Realty

Sure. The CoStar partnership is crucial for our competitiveness in the commercial sector. Kent, if I recall correctly, we haven’t publicly broken down the agent count yet, so I won’t disclose any specifics. However, having a best-in-class platform is essential for our agents. Just like we provide value on the residential side, we aim to do the same in commercial real estate. We’re partnering with CoStar and striving to create a top-tier commercial CRM system.

We’re also exploring various opportunities within the CoStar partnership, including discounts on services like LoopNet and BizBuySell for our business brokers. Similar to our international efforts, this segment presents significant revenue growth potential, and we’re in the early stages of maximizing this opportunity. Our team is actively looking into other products and services to enhance our offerings. Kent, do you want to clarify if we’ve disclosed our commercial agent breakdown yet?

Kent Cheng — Principal Financial Officer and Chief Accounting Officer

We haven’t broken down the agent count between commercial and residential. However, I can confirm that the number of commercial agents is still a small fraction of our total agent count.

Matt Filek — William Blair — Analyst

Thank you for the clarification. I appreciate it.

Denise Garcia — Manager, Investor Relations

Thanks, Matt. We have another question from Wyatt Swanson at D.A. Davidson. Wyatt, if you’re ready, please go ahead.

Wyatt Swanson — Analyst

Hi. Can you hear me?

Denise Garcia — Manager, Investor Relations

Yes.

Wyatt Swanson — Analyst

Great, thank you. I’m asking on behalf of Tom White. Regarding operating expenses, can you describe your expectations for growth in calendar year ’25? Additionally, could you share your thoughts on possibly reducing investments in some long-term initiatives to mitigate impacts from a slower housing market?

Glenn Sanford — Founder, Chairman, and Chief Executive Officer

Our operating expenses are designed to be variable, as Kent mentioned. This flexibility has been beneficial, particularly during challenging times, like the pivot we made during COVID-19. We’ve adapted multiple times in the past five years, largely due to our low fixed costs. If necessary, we have the capability to reduce spending without compromising our mission. Our long-term goal remains to broaden our market presence and to position ourselves as the leading agent-centric real estate brokerage globally. We’ve seen our model gaining traction in various markets outside the U.S. and Canada, and we aim to maintain this momentum without hindering growth.

Wyatt Swanson — Analyst

That’s helpful to know. Shifting to a broader topic, how do you perceive the role of AI technologies impacting your business and the brokerage industry in the coming years?

Glenn Sanford — Founder, Chairman, and Chief Executive Officer

I believe AI will fundamentally transform our operations. We’re already exploring technologies like those from Open AI and Google, which can automate many repetitive tasks that require domain knowledge. Since 2021, we’ve invested in AI solutions for contract management, and we’re beginning to see our document AI platform enhance agents’ efficiency by streamlining their paperwork processes. My expectation is that in five years, we could operate eXp with about one-third to one-half of our current staff size while still facilitating growth through AI integration.

Wyatt Swanson — Analyst

Thank you for that insight. Can you provide an update on agent commission rates? It seems the NAR settlement hasn’t significantly affected this aspect, but what trends are you observing?

Leo Pareja — Chief Executive Officer, eXp Realty

Following the NAR settlement, an analysis conducted using anonymized data from about 55,000 transactions indicated a minimal change—about a 10 basis point drop. This could align with seasonal trends, as we approach Q1, and it seems consistent with historical practices. We’ve worked diligently to guide our agents through these changes, ensuring they’re informed and prepared.

Overall, our focus remains on leveraging our innovative strategies and tools to maintain a competitive edge in the real estate market.

eXp World Holdings Wraps Up Fourth Quarter 2024 Earnings Call

Key Takeaways from the Call

The latest earnings conference call hosted by eXp World Holdings showcased insights from various experts, including representation from the Consumer Federation of America and Buffalo School of Law’s Tony Manzanero. This session emphasized procedural and educational shifts within the company, although no significant movement in commissions was reported either way.

Wyatt Swanson – Analyst

Thank you for the information. I appreciate the updates.

Appreciation Expressed by Management

Denise Garcia – Manager, Investor Relations

We appreciate your participation. For the latest eXp news, results, and events, please visit expworldholdings.com. You can find a recording of this call along with our newest investor presentation in the Investors section of our site. This marks the end of eXp World Holdings’ fourth quarter and full year 2024 earnings fireside chat.

Duration: 0 minutes

Participants in the Earnings Call

Denise Garcia – Manager, Investor Relations

Glenn Sanford – Founder, Chairman, and Chief Executive Officer

Leo Pareja – Chief Executive Officer, eXp Realty

Spring Bengtzen – Chief Executive Officer, Utah Life Real Estate Group

Wendy Forsythe – Chief Marketing Officer, eXp Realty

Kent Cheng – Principal Financial Officer and Chief Accounting Officer

John Campbell – Analyst

Matt Filek – William Blair – Analyst

Wyatt Swanson – Analyst

Additional Information and Disclaimers

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