eXp World Beats Q4 Sales Targets, Stock Surges 10.1%
eXp World (NASDAQ: EXPI), a leading real estate technology company, has released its Q4 CY2024 financial results, exceeding analysts' revenue expectations.
Key Highlights:
* Revenue: $1.10 billion, beating estimates by 6.5% (11.7% YoY growth)
* Adjusted EPS: -$0.03, missing estimates by $0.02
* Adjusted EBITDA: $7.69 million, exceeding estimates by 97.9% (0.7% margin)
* Operating Margin: -1%, improving from -2.8% in Q4 CY2023
* Free Cash Flow Margin: 1.2%, declining from 3.2% in Q4 CY2023
Commenting on the results, Glenn Sanford, eXp World's Founder and CEO, said, "At eXp, we redefine real estate possibilities, empowering our agents with a platform that fosters unlimited growth."
Company Overview:
eXp World, founded in 2009, is renowned for its virtual, cloud-based real estate brokerage model. This approach has revolutionized the industry by leveraging technology to connect buyers, sellers, and agents.
Sales Growth:
eXp World has demonstrated exceptional sales growth, with a 36.1% compounded annual growth rate over the past five years. The company's growth has significantly outpaced the consumer discretionary industry average, indicating the strong demand for its offerings.
Revenue Performance:
Recently, eXp World's revenue growth has slowed to 11.7% YoY in Q4 CY2024. However, analysts expect revenue to grow by 6.1% over the next 12 months.
Cash Flow:
eXp World's free cash flow margin remains below average for the consumer discretionary sector. In Q4 CY2024, the margin declined to 1.2%, further limiting its ability to return capital to shareholders.
Key Takeaways:
eXp World's Q4 results demonstrated mixed performance. While the company exceeded revenue estimates and delivered strong EBITDA growth, the EPS miss and declining cash flow margin warrant attention. Despite these concerns, the stock surged 10.1% after the announcement.
For a comprehensive analysis of eXp World's valuation and business qualities, consider our full research report available at [link].