While revenue rose at eXp World Holdings during the first quarter of 2024, the firm was still unable to turn a profit due to the challenging housing market. In Q1 2024, the company reported a $15.6 million loss compared to a net gain of $1.5 million in Q1 2023.
Revenue at the parent company of eXp Realty increased 11% year over year to $943 million during the first quarter of 2024, executives disclosed on Wednesday. The surge in revenue was buoyed by improved agent productivity, a rise in average home sales prices and increased international production.
“We continue to provide our agents with the industry’s best platform for growth and the resources they need to navigate today’s dynamic real estate market,” Glenn Sanford, founder, chairman and CEO of eXp World Holdings, said in a statement.
“Under Leo Pareja’s leadership, I am confident that eXp Realty will extend its leadership position in the coming years and continue to redefine what it means to be the most agent-centric real estate brokerage on the planet.”
Agent count at eXp kept declining in Q1 2024. The company revealed that it had 85,780 agents on its platform at the end of March, 2% less than one year ago. It’s also a dip compared to Q4 2023 when eXp boasted 87,515 agents.
The company also announced updates on Wednesday to its revenue-sharing program. These changes introduce a new bonus structure for agents who recruit their peers, the possibility to instantly withdraw revenue share proceeds, and modifications that help expedite agent earnings.
Pareja, the newly appointed CEO of eXp Realty, said that sales volume in Q1 2024 was up 12% year over year, hitting $37.2 billion, while transaction sides increased 8% year over year to 110,976.
During Wednesday’s earnings call, Sanford addressed the ongoing commission lawsuits targeting the National Association of Realtors (NAR) and major real estate brokerages, which accuse the firms of conspiring to maintain artificially high agent commissions.
While NAR and several other major companies have settlements that have either been proposed or received preliminary court approval, eXp Realty does not. Sanford indicated that eXp may be among the last of the large brokerages yet to settle and is not currently in discussions for a settlement.
He suggested that eXp’s cases may take years to reach trial, noting that the company has strong arguments in its favor but remains open to a potential settlement. In the meantime, eXp has been providing support and education to agents through regional rallies and has developed a buyer’s representation toolkit to assist agents in articulating their value proposition, Pareja told investors on Wednesday.
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