EXP Record growth

Second Quarter 2021 Financial Highlights as Compared to the Same Year-ago Quarter:

Revenue increased 183% to a record $1 billion.
Gross profit increased 133% to $79.9 million.
Net income increased 350% to $37.0 million, which included $20.6 million income tax provision benefit. Earnings per diluted share increased 300% to $0.24.
Adjusted EBITDA (a non-GAAP financial measure) increased 98% to $27.0 million.
Operating cash flow increased 210% to $88.5 million.
As of June 30, 2021, cash and cash equivalents totaled $107.4 million, compared to $63.6 million as of June 30, 2020. The Company repurchased approximately $54.9 million of common stock during the second quarter of 2021.
The Company declared a cash dividend for the third quarter of 2021 of $0.04 per share on the company’s common stock. The dividend is expected to be paid on Aug. 30, 2021 to shareholders of record on Aug. 16, 2021.



What do you think about them introducing a dividend? Not generally a fan, but in this case I could see it adding to the draw for new realtors as they now have revenue sharing, stock options at discount, and finally a dividend on top of that.

It seems that in this ONE case, it makes sense as the more realtors they can draw in, the more revenue they get, so a dividend would be a small price to pay?

1 Like

Since they use a stock based incentive plan, I agree it could be useful. Also once paying dividend there are many more institutions that are allowed to hold the stock in their portfolios as it is often a condition of their mandate.

Paying a dividend I’m sure won’t exactly holding back growth and it certainly doesn’t signify an ex growth, income based cigar butt investment play.

I’m happy to continue to hold this which is nearly a 2% holding for me and could consider adding further given these results and the international plus commercial real estate expansion plans.



Yes, their business model involves giving out shares to their 60,000 agents on a regular basis. Having a dividend makes them think a little before they sell those shares. So, yes that will help reduce some of the volatility.

Another thing I am watching is their share dilution. Their has been none the last 2 Qs as the company has used the FCF to buy back the shares. Need to watch this.

Very asset light model unlike Redfin where agents are employees. Virtual platform helps them scale very easily. People are turned off by the 8-9% GM and their target of 4% net margins. But due to the nature of the SBC their FCF margins are likely to be in the 7% range which is pretty good for the fwd P/S of 2.2. Yes, you read that right 2.2 growing at 183% rev!

In this one since late last Fall. Up to a 8% position now. Quite a roller coaster for sure.