eXp World Holdings, Inc.

I think we're almost ready to get started. Hello and welcome. to the eXp World Holdings fourth quarter and full year 2024 earnings fireside chat via live stream and our metaverse on the web frame. My name is Denise Garcia, and I manage investor relations for eXp World Holdings. Today, we will begin our earnings fireside chat with remarks from Glenn Sanford, founder, chairman, and CEO of eXp World Holdings, Leo Pereja, CEO of eXp Realty, Spring Benson, CEO of Utah Life Real Estate Group, Wendy Forsyth, CMO of eXp Realty, and Kent Chang, principal financial officer and chief accounting officer at eXp World Holdings. Following our prepared remarks, we will open the call to Q&A session with our speakers, but let's begin with a review of the forward-looking statements. There'll be a number of forward-looking statements made today that should be considered in conjunction with the cautionary statements contained in the company's SEC filings. Forward-looking statements are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. Please see our filings with the SEC, including our most recently filed annual report on Form 10-K and quarterly reports on Form 10-Q, for a discussion of specific risks that may affect our business, performance, and financial condition. We assume no obligation to update or revise any forward-looking statements or information. As a reminder, today's call is being recorded, and a replay will also be made available on eXp World Holdings. Now for a few logistics, and we'll get started. First, welcome to our Metaverse on the web. For those of you joining in frame today, welcome. To zoom in on a specific screen, you can click on that screen and then click zoom in. If the content on the screen disappears or you lose audio, simply refresh your page. While in frame, if you need help, just use the help button at the bottom right link on the bottom right to link with tech support. Should you wish to ask a question during our presentation, you can enter your questions by scanning the QR code presented on this screen with your mobile phone or go to slido.com and type the event code EXPI. From there, you can submit a question or vote up an existing question by giving a thumbs up if you would also like that question to be asked. This screen will remain up on the right-hand side of the stage. Now, I'll turn the fireside chat over to our speakers before opening the call to questions. Glenn, you may begin.

Thanks, Denise. And thanks, everyone, for joining us here today. You know, before we review our fourth quarter and full year results, I want to take a moment to discuss the big picture and the powerful platform we've built for EXP. Obviously, We have EXP North America, and, you know, this really is the driving engine that it's allowing us to expand around the world. As you, you know, when you do look at, you know, when Kent, pulls up the segment level reporting, you'll see that North American Realty continues to be a profit center for the company. And that allows us to really build this thing in a way that nobody else can build because we are a sustainable, profitable business. We've spent more than 15 years building the eXp platform, and this has made eXp the only brokerage at scale that includes a full marketing suite for agents, personal development services. You know, we've got obviously health resources for agents. First company in the world to do that. First company in the world to provide a meaningful rev share and equity. And then, of course, you're seeing one of our innovations that we've invested in, which is really the enterprise level metaverse platform called FrameVR, which allows us to actually run this company worldwide. So now I'll move on to some of the highlights from the fourth quarter. Where I've focused a lot of my time and attention has been, since July last year, has been on the international side of the business. And it's really turned the corner in terms of what we've been doing. In fact, last week, a number of members of our team went to Egypt. I actually also went to Dubai. We were there. helping open Egypt and also supporting the launch of the Egypt MLS, which is actually with our business partner and also who's also partnered with the government on the MLS front. So we're really excited about where that's going. We ended last year with productive agents at an all-time high in international. In fact, international revenues grew 63% over 2023. And fourth quarter, that continued to accelerate. We actually grew at 72% in the fourth quarter. So you'll see international playing a larger and larger role here. in eXp as we continue to grow. At the same time, international has been putting on a phenomenal growth. It's also been getting more profitable as a standalone part of the business. And that's because we've become more and more efficient over on that as different countries get to scale. So we're also, as I mentioned, we're also in the process of opening up some additional countries. And this includes Turkey, Peru, and Egypt. And actually, in June of last year, we expanded our agent referral platform globally. And EXP now has presence in 22 going on, really, 25, 26, 27 countries with the addition of the three countries. along with the global referral platform, which increases our business capabilities and network prospects for eXp agents worldwide. In fact, that's one of the things that we hear consistently around the world. is our international presence is of significant advantage to agents around the world because of the way that consumers will buy in multiple countries around the world and moving around the world. The referral opportunities going back and forth is getting more and more significant. I continue to expect that international will be the largest driver of future growth for the company, obviously domestically still growing lots of opportunities as well. But just to put it in perspective, there's likely somewhere around 10 times as many agents outside of North America that are operating in the business real estate than there is actually in North America. Really excited about where that's going to go. And with that, I'll turn the call over to Leo, who will walk you through some of the North American highlights.

Leo. Thank you, Glenn. And thanks for everyone who's joining us here today. I want to start off by talking about our NPS score. As you know, it is our North Star. It is the heart of everything we do because agents and serving agents is the most critical thing at eXp. We measure this throughout our net promoter score throughout the entire organization and It's vastly accepted that anything over 50% is a great score. And last year in 2024, we actually increased three points from 2023 to 76. This is a very important feat, especially in the environment we've had with the amount of complexity and change we experienced last year. I'm extremely proud of the fact that we got very positive feedback from the transaction process. 88% of our agents would have rated their transactions in a nine or a 10 And given the amount of turbulence our industry experienced last year, that's something we're extremely proud of. We're also extremely proud of the feedback that our state broker teams are constantly getting. And so you can see some of the quotes here to improve the experience, not only from in the transactions day to day, but also onboarding in programs that we've rolled out like our white glove onboarding process. Moving on to the next slide, I'm extremely excited and proud to say that we've received an award for the eighth consecutive year of being one of the best places to work by our employees. This is a testament to the culture that we've built and being recognized for the innovative products and experiences that we create for agents every single day. Moving on to the next slide. What's driving the success? So it's a combination of lots of initiatives. One that's super important is the initiatives and incentives to attracting some of the most productive people in the industry. Our fast track, fast start attraction bonus paid out well over $8 million to 7,000 agents in 2024. And in that same year, we revised our Pioneer RevShare program to make sure that we are still as competitive as possible and in the top of our game. We continue to really pour into our industry-leading education and training programs. eXp University saw a huge increase at a 111% increase from 2023 to 2024, and we hosted regional rallies in 20 different locations throughout the entire year of 2024. And going into 2025, just into the spring alone, we will be doing 18 locations. With the NAR legislation being such a big topic, we provided agents with buyer representation toolkits, seller representation toolkits, and to support agent attraction. We also open sourced that in such a turbulent time in the industry to make it available to as many people as possible. Moving on to the next slide. One of the things that is core to our thesis is that we can't build all things ourselves. Some of our competitors out there believe they're tech companies, and it's very much in our core that we are a world-class brokerage that's tech-enabled. So part of our thesis is to go partner with the best-in-class collaborative tools to make everything go faster, stronger, better. Canva Pro was released to every single agent, and that was a huge success. In the first 30 days, we had over 68,000 designs created And in the first 60 days, that number climbed to 189,000 designs. We also partnered with Sisu, which is an industry-leading business tracking platform to increase productivity, comprehensive project management for team leaders, for recruiting, onboarding all of their team members. And last but not least, our luxury group grew by 46% in 2024. We opened up our membership applications to 22 countries. Puerto Rico in 2024 with over 8 billion listings were promoted through our luxury platform in the year 2024 now I mentioned earlier that we're very focused on creating best-in-class training and education fast cap is a program we launched in September and I couldn't be more excited and I predict that this will be a very important piece of our platform for educating agents it is a six-week agent intensive immersive program where we walk agents step by step to a blueprint and how to build their business quickly and most importantly for no additional cost this is very important with the sisu partnership we did because we gamified the process to have agents have an amazing result when joining the company these results are unparalleled most of the agents going through this program are brand new agents and the results are from the activity created during this six week immersive program. So at scale, basically four appointments turns into two signed agreements and agreements could be either a buyer agreement or a listing agreement for the folks that did the minimum standard suggested in the course, those numbers jumped to almost seven appointments with 3.8 signed agreements. So, um, the, the program it's in its early days, but the results and the feedback from both new agents and, uh, To a pleasant surprise, season agents who wanted to refresh are through the roof. Moving on to the next slide. And going into 2025, we're moving in with super strong momentum. These are the kind of programs, education, and training that support and have helped drive our strong momentum in the fourth quarter with an increase of 12% in transaction count per eXp agent and a 23% increase in sales volume per eXp agent. I've also highlighted this is a very strong December for us with the top 10 teams in the United States closing a combined $439 million in sales volume. And that speaks to the talent we've been able to attract in 24. In December, we had Chris Cadwell out of Denver join, who was one of the top teams at Compass, bring over their entire team, Zillow Flex partner, with over $200 million in volume, which is a testament to the type of talent we're attracting. Next is Gina Kirshenheider and Travis Mullen in Orange County. They are quite famous from the Real Housewives show and their launch video went viral. Next slide. Jeff Quinn from New Jersey joined us after spending a decade at Keller Williams and being ranked as one of the top agents on the real trends in Wall Street Journalist. And Justin McLaughlin came back after leaving us for Epic for seven months and returned to eXp with his 15 agents. Previously leaving, he was a three-time Icon winner, which is a testament to the platform. And even for the folks who have chosen to go explore what potentially could be the grass is greener, we're having a very high boomerang rate of returning back to the company. Now with that, I want to actually bring up an agent who joined us in January. Uh, who's one of the biggest joiners we've had join us 318 million in 2024 with 660 closed units. Spring Benson is here with us and I'm just going to have a small chat with her about the decision-making process. Uh, she was at a competitor. As one of the, not only the one of their top agents, but also one of the top attractors. So we thought it would be an interesting conversation to just have in front of the Wall Street audience and our agents listening on the call. And so, Spring, thank you for joining us. And we'll keep it brief. But I was just curious, as you were making the decision and seeing the opportunity, what kind of got you into a conversation with us and ultimately decided to make the move?