For the sixth straight quarter, eXp World Holdings, the parent company of eXp Realty, reported record breaking revenue, according to the company’s earnings report for the third quarter of 2021, released Wednesday.
The cloud-based brokerage recorded $1.1 billion of revenue in the months of July, August and September. This is a 97% increase compared to the same time period a year ago. Operating expenses also increased 100.3% year over year to $1.09 billion.
The firm’s gross profit and net income also saw large year-over-year increases of 70% and 60%, respectively. Gross profit for the quarter came in at $79.5 million, while net income was $23.8 million, including a $12.9 million income tax provision benefit.
Year-over-year the number of agents and brokers increased 82% in Q3 2021 to 65,269. In addition, eXp expanded into two new international markets in the third quarter, Panama and Germany.
“Our global community of real estate professionals continued to expand significantly in the third quarter, indicating our agent-centric model is increasingly resonating throughout the world,” Glenn Sanford, founder, chairman and CEO of eXp World Holdings said in a written statement.
Jeff Whitside, the CFO and chief collaboration officer of eXp World Holdings, added that the company’s cloud-based model is continuing to attract a large number of top performing agents.
The third quarter of 2021 saw eXp agents close 130,029 residential transaction sides, a year-over-year increase of 72%. Residential transaction volume also rose to $46.6 billion, an increase of 97% from a year ago.
The brokerage on Wednesday also announced that the launch of its residential lending joint venture Success Lending with Kind Lending, LLC has been approved in Colorado, Illinois and Tennessee.
“Building upon technology-driven efficiencies, community values and leveraging expert loan officers and top eXp agents, we aim to create a unique mortgage solution that provides a better homebuying experience,” Sanford said in a written statement.
While the brokerage has proved quite profitable as is, the launching of this joint venture will help it diversify its portfolio and potentially become more competitive with rival brokerages like Compass, which has recently begun expanding into more ancillary services including the title insurance space.
The brokerage was the fourth-largest in the U.S. by transaction volume in 2020 with $72.2 billion, according to the RealTrends 500. That placed it right behind HomeServices of America, Compass and Realogy. It doubled sales volume from the $36 billion it generated in 2019.