eXp World Holdings, Inc. (NASDAQ: EXPI) delivered an impressive Q4 2024 performance, driven by exponential international growth and strategic agent productivity initiatives. The real estate giant reported a remarkable 72% year-over-year increase in international revenues, highlighting the company’s global expansion as a major growth catalyst.
International Expansion: The Key Driver of Future Growth
Glenn Sanford, Founder, Chairman, and CEO of eXp World Holdings, emphasized that international growth is at the heart of the company’s long-term strategy. With operations expanding into Egypt, Turkey, and Peru, eXp now boasts a presence in 27 countries. Sanford remains bullish on international markets, stating, “I continue to expect that International will be the largest driver of future growth.”
The company’s global footprint is becoming increasingly profitable due to improved operational efficiencies and strong leadership in newly entered markets. Management sees significant opportunities ahead, as international markets have nearly ten times more real estate agents compared to North America.
Boost in Agent Productivity and Market Presence
Leo Pareja, CEO of eXp Realty, highlighted substantial gains in agent productivity. The company saw a 12% increase in transaction count per agent and a 23% rise in sales volume per agent in Q4 2024. This improvement is largely attributed to eXp’s FastCAP initiative, an intensive six-week training program designed to enhance agent performance.
In addition, eXp attracted top-performing agents and teams in Q4, including Kris Caldwell, a Zillow Flex Partner, and Jeff Quintin, a renowned real estate expert formerly associated with Keller Williams. These additions strengthen eXp’s position in the highly competitive real estate market.
Strong Financial Performance Despite Economic Challenges
Despite macroeconomic headwinds such as high interest rates and a constrained housing market, eXp delivered robust financial results:
- Q4 2024 revenue grew 12% year-over-year, fueled by a 6% rise in real estate transactions and increased agent productivity.
- Full-year international revenue surged 63%, with Q4 international revenue alone up 72%.
- Adjusted EBITDA soared 151% in Q4 2024, demonstrating the company’s disciplined cost management and operational efficiency.
- eXp ended Q4 with $113.5 million in cash, ensuring financial flexibility for future growth and strategic investments.
- The company reported a net loss of $16.8 million from continued operations, but adjusted net income stood at $12.2 million, marking a 247% year-over-year increase.
Analysts’ Take: Cautiously Optimistic on Growth & Profitability
During the Q&A session, analysts focused on agent retention, international profitability, and operating expenses. While macroeconomic uncertainties remain, Sanford reassured investors that eXp’s variable cost model provides flexibility to navigate challenging market conditions.
Quarter-over-Quarter Acceleration
Compared to Q3 2024, eXp demonstrated stronger momentum in Q4:
- Revenue growth accelerated from 2% in Q3 to 12% in Q4.
- International revenue growth surged to 72% in Q4, up from 63% for full-year 2024.
- Adjusted EBITDA jumped 151% in Q4, compared to just 15% in Q3.
- Agent productivity grew 12% in Q4, significantly outpacing Q3’s 6% increase.
Looking Ahead: Expansion and Training to Drive 2025 Growth
Management is doubling down on international expansion, with plans to enter additional countries in 2025. Pareja also announced that eXp will enhance agent training initiatives by expanding the FastCAP program and strengthening partnerships with platforms like Canva and Sisu to boost agent efficiency.
While macroeconomic uncertainties could impact 2025 profitability, eXp’s strategic investments in technology, global markets, and agent productivity provide a solid foundation for long-term success. With international markets driving revenue growth and a strong agent network, eXp is well-positioned to capitalize on future real estate trends.
