Losses hit eXp in fourth quarter 

Profitability slipped out of grasp for eXp Realty’s parent company in the fourth quarter. 

EXp World Holdings, the parent company of the virtual brokerage, posted $7.2 million in losses during the fourth quarter, Inman reported. The company is slated to hold its earnings call on Thursday, but released a statement prior to the “fireside chat.”

The losses followed a profitable period for eXp, which posted a net income of $4.4 million in the third quarter. Revenue in the fourth quarter slipped to $933 million, a 13 percent year-over-year decline.

The company’s performance sank in line with cooling activity across the housing market. Closed transactions declined 13 percent year-over-year as homebuyers grappled with high mortgage rates, which peaked above 7 percent in October. Sales volume declined 16 percent year-over-year.

EXp saw net income decline 81 percent from 2021 to $15.4 million for the year. Revenue increase by 22 percent from 2021 to reach $4.6 billion. 

The company increased its total agent count by 21 percent for the fiscal year, according to founder Glenn Sanford, who is CEO of the holding company and returned in January to helm the brokerage. 

Sanford compared the company to the “legacy franchise players,” saying in a statement “there’s a lot of brokerages that are basically dinosaurs, teaching other dinosaurs how to be better dinosaurs.”

He contrasted eXp with other brokerages — which saw similar struggles during the quarter — by touting the cloud-based model of the company against more traditional firms. Sanford added that the down market is an opportune time for the company to grow.

Sanford cited growth as a key focus when announcing his return to the role of chief executive at the company, which has a market cap of $1.84 billion. 

— Holden Walter-Warner

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