AGNT, Inc. (AGNT) Q4 2022 Earnings Call Transcript

Good afternoon, and welcome to the eXp World Holdings Fourth Quarter and Full Year 2022 Earnings fireside chat via live stream and EXPI Campus, our Metaverse. My name is Denise Garcia and I manage Investor Relations at eXp World Holdings. Today, we will begin our earnings fireside chat with prepared remarks from Glenn Sanford, Founder, Chairman, and CEO of eXp World Holdings and CEO of eXp Realty, followed by a review of the fourth quarter and full year 2022 financial highlights presented by Jeff Whiteside, CFO and Chief Collaboration Officer at eXp World Holdings. Following our prepared remarks, we will open the call to a Q&A session with eXp World Holdings covering analysts and questions submitted to eXp. 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. Forward-looking statements are based on assumptions as of today, February 28, 2023, and the company undertakes no obligation to revise or update them. Please see our filings with the SEC including our most recently filed Annual Report on Form 10-K for a discussion of specific risks that may affect our business performance and financial condition. As a reminder, today's call is being recorded and a replay will also be made available on expworldholdings. Now for a few logistics and we'll get started. For those of you joining on the eXp campus today, to see all three screens, hit the stage Zoom button to the right of your chat box. To Zoom into a specific screen, you can hit the plus icon above that screen. If you happen to see no slides or a gray slide, hit the Refresh icon on the top right-hand corner of that screen to correct. While in the EXPI's campus, should you need any help or have any questions, please enter your comments into the chat box at the bottom on the left, and a member of the team will contact you. On slide, should you wish to ask a question during our presentation, you can enter your questions by scanning the QR code presented on the screen with your phone or go to slider.com and type in the event code EXPI. From there you can submit a question or vote up an existing question by giving a thumbs up if you like that question to be asked. This screen will remain on the left-hand side of the stage. Now, I will turn the fireside chat over to Glenn and Jeff, before I open the call to questions.

Hi, thank you, Denise, and thank you everyone for being here. As many of you know, eXp World Holdings is mainly a residential real estate brokerage that I founded a little over 13 years ago. On behalf of our agents, who are also our shareholders, I'll soon discuss how we're fostering our mindset throughout the organization by using NPS, which we now refer to as earned growth rate. It's crucial to recognize this from a long-term shareholder perspective. Even though we will touch on past results today, our ongoing emphasis on the agent value proposition is vital for future success. Despite the tough market in 2022, the eXp value proposition continued to draw agents, leading to revenue growth while we maintained a strong balance sheet with no debt. We also distributed dividends to our shareholders as part of our distinct value proposition and equity offerings for agents, which are unmatched in the market. This year, in our 10-K, we're enhancing our financial transparency by segmenting our reports, mainly due to the challenging market. We aim to demonstrate to our agents, staff, shareholders, and others that eXp Realty is, as we've long stated, profitable regardless of market conditions. In our segmented filings, you'll see that eXp Realty North America remains profitable even in a difficult market, and you'll also observe how we're investing in international markets. When we established eXp Realty, we created a marketplace with much lower costs and high agent engagement and support. Interestingly, the industry has reacted slowly to the new normal; even post-pandemic, there hasn’t been much change. I like to say that many legacy franchise players resemble dinosaurs trying to teach each other how to be better dinosaurs. Amidst this backdrop, we've expanded our agent base to tens of thousands, amassing billions in revenue in North America in a relatively short time with minimal competition. However, as we scale, we're beginning to see new entrants in the marketplace, although most of the industry remains committed to outdated, high-cost infrastructure models. To propel the next phase of eXp's growth, we’re concentrating on the agent-centric approach in real estate, aiming to utilize our scale to become the number one global real estate brokerage and brand, and we've made significant progress already. Moving forward into 2023 and beyond, we will keep investing in our core segments, with eXp Realty North America International as a significant growth area. We have a robust balance sheet with over $100 million in cash and no debt, allowing us to remain agile and innovative across various business segments. We are continuing to invest during the market downturn, and we’ve made a strategic shift in financial management, which Jeff will elaborate on shortly, because we believe it's an ideal time to grow during a down market. We maintain a scalable profitable model in North America and our objective is to replicate that in many international markets globally. One of the key points we discussed at the beginning of the call is the Net Promoter Score, which is crucial for our long-term success. Our agent Net Promoter Score is at an all-time high globally of 73. We continue to emphasize using NPS as a tool to instill a founder’s mentality within the organization, creating key metrics for our team to focus on. We are investing in products that enhance agent productivity, ultimately providing them with high-quality opportunities. We have established a new organization under Leo Pareja to aggregate national opportunities for agents. Our luxury division at EXPCON has been well-received, and we are expanding eXp Realty as well as our national search portals. You may recall previous discussions about the alt portal, and we’ve been successfully scaling Zoocasa. We announced our partnership with Realty.com a few weeks ago, and we're also enhancing eXp Realty’s website, along with some exciting innovations that will soon give agents a significant advantage concerning leads from the company-owned website. We are eager about the future developments ahead, which also encompass investments in personal and professional development services. This includes initiatives like SUCCESS Health and SUCCESS Coaching, and we have a major announcement to share on March 6th regarding our success ecosystem expansion. We are actively working on improving the overall agent experience, encompassing onboarding, training, and mentorship processes. We have enhanced payment processing to the extent that, in certain markets, we can pay agents within 24 hours of recognizing a transaction closure. We are thrilled about innovations in agent payments and have revamped our support and collaboration services for existing agents. We’ve launched an express care desk and next-generation squads in local markets, as well as new global capabilities with teams providing 24/7 support worldwide. Our investment in VirBELA continues as it is the technology enabling our growth, and today you're attending this shareholder meeting in one of our many VirBELA campuses. We're optimistic about future growth opportunities with another Metaverse platform, Frame VR, which is easily accessible from desktop and mobile devices. Since 2016, we have focused on the Net Promoter Score, inspired by various books I’ve read and shared with the management team. This approach aligns with the founder’s mentality of creating a differentiated value proposition and delivering on that promise daily. This ultimately links to the Net Promoter Score system developed by Fred Reichheld at Bain & Company years ago. In his recent book, Winning on Purpose, he introduced the concept of earned revenue growth or earned growth rate. Understanding this concept is vital for long-term shareholders because it highlights the importance of measuring how customers feel about a company's unique offerings, allowing for better predictions on the company's health and growth. This framework extends beyond external perspectives, establishing a virtuous cycle that drives our business operations and retains revenue at lower marketing costs. Highly satisfied agents tend to stay with us longer and expand their networks by attracting new agents, enabling us to invest what would otherwise go into marketing into building what agents truly need for long-term growth. With that, I'll pass it over to Jeff Whiteside.

All right. Well, thank you very much Glenn. And thank you, Denise. Good afternoon all, and good evening to those in Europe. I appreciate you showing up for the presentation. I'll start the financials by highlighting our full year 2022 results, beginning with eXp World Holdings. Consolidated revenues increased by 22% year-over-year to $4.6 billion, while gross margins, percentages, and dollars increased versus 2021. We maintained adjusted EBITDA profitability throughout the year despite a challenging second half of '22 that we'll get into. We ended the year with a stronger cash position of no debt on our balance sheet. As Glenn mentioned earlier, beginning this quarter, we will be reporting four operating segments: eXp North American Realty, eXp International Realty, VirBELA, and other affiliate services. On this first page, I'd just like to highlight a couple of our segments being North America and International Realty. In 2022, the North American business grew by 22% in revenue and solidly EBITDA profitable for the entire year, even as we expanded our business and acquired Zoocasa. eXp International Realty remains in investment mode as we scale the business. Our full year revenue grew at 102% as we increased our agent count and productivity in previously launched markets. During 2022, we entered six new markets: Dominican Republic, Greece, New Zealand, Chile, Poland, and Dubai. In 2023, international Realty will focus on driving growth and production in our existing markets. Our operating plan in 2023 and beyond is to continue investing in segments that provide long-term value to our agents. In terms of capital allocation, we'll continue funding investments in each segment that we believe will generate attractive long-term financial returns. I'm going to get into some of those numbers on the next slide, if we could move there. I'll provide more information on our segments. If you look at Slide 13, you're going to see a full year 2022 segment revenue and adjusted EBITDA numbers for all four of our segments. In 2022, compared to previous years, our North American Realty segment is our primary driver of revenue at $4.544 billion and adjusted EBITDA of $103.3 million. This is the first time we are actually breaking it out, but I've discussed this before, and we're very fortunate to have the North American business driving growth and profitability that allows us to invest not only in North America but internationally and in our technologies. That's what you're going to see in this presentation. International Realty, VirBELA, and other affiliate service segments contribute modest amounts of revenue today, but we believe the investments we're making have the potential to help drive our growth into the next phase. If we look at our international Realty segment, as mentioned before, we've entered 22 international markets. Each market is different and takes time to optimize the model based on local market dynamics. We continue to tune the models in each country and drive top-line and margin expansion, and that is our focus for 2023. In VirBELA, as Glenn mentioned, we're making investments to support our foundation-centric cloud business model. I've talked about this since I got here. I'm amazed by how productive this platform is in helping us grow and service our agents and employees. The other part of the VirBELA product is Frame, which is a web-based solution generating revenue as we speak. We also generate revenue in VirBELA from third-party enterprises, licensing our technology and operating their businesses on our platforms. Lastly, our Other Affiliated Services segments house our investments in SUCCESS Health and Coaching that help brokers and agents develop personally and professionally while growing their business. eXp agents represent one of our largest pools of brokers and agents in the industry. We are focused on leveraging that scale to build high-margin ancillary revenue streams. With that, I'll move to the next slide to review some key metrics on a consolidated basis. So, this is at the consolidated level of EXPI for 2022, comparing to 2021. Our key operating metrics, and we discuss this every time, ANPS is huge for us. We ended at 71 for the entire year, which is the same number we ended at last year. Our goal is to achieve above 70, which is world-class, and we've accomplished that this year. Agent count reached 86,203, up 21% year-over-year. Our units sold were 511,089, up 15% year-over-year. Our volume ended at $187.3 billion, which is up 20% year-over-year. Revenue grew at 22%, reflecting growth in the first half, some in the third quarter, and a more challenging market environment in the second half that I will discuss in the fourth quarter. Our full year gross profit increased by 24%, and our gross margin percentage increased slightly to 8.5%. Our full-year adjusted EBITDA was $61 million, down from $78 million in 2021 as we made investments to support international market expansion and drive agent-centric innovation. Full-year 2022 operating cash flow was $242 million, up 17% year-over-year. This illustrates our ability to generate cash flow in a challenging year, showcasing the resilience of our business model, providing a major competitive advantage in a down market. Due to our strong cash flow generation, we ended the year with $122 million of cash and equivalents, up 12% year-over-year, even after distributing $205 million to our shareholders in the form of share repurchases and dividends. Now, turning to the fourth quarter, especially in the U.S. market, it was a challenging environment. Home sales declined more than 30% from the fourth quarter of last year. Interest rates, as we are all aware, dramatically increased throughout 2022, reaching a high for the year in Q4 while inventory remained constrained. On this slide, you can see our Q4 segment revenue and adjusted EBITDA for each of our four business segments, along with a breakout of our corporate allocations. At a consolidated level, eXp World Holdings ended Q4 with $933.4 million in revenue and $3.6 million in EBITDA. Our North American Realty segment remains the primary revenue driver at $920.7 million and adjusted EBITDA of 12.1 million. Despite a challenging environment in the fourth quarter, the North American Realty business generated $12.1 million in adjusted EBITDA, and despite a very challenging environment in Q4, North American revenue decline was 14% versus the industry-wide sales decline of over 30%, and we remain profitable. International Realty increased revenue by 49% in the quarter to $9.8 million. As you can see, we continue to invest in our international expansion strategy, and VirBELA and other Affiliated Service segments contributed modest amounts of revenue while reflecting our ongoing investment. Now, let's look at our consolidated key metrics for Q4. We ended Q4 with a global agent Net Promoter Score at 73, up from 69 in Q4 2020. A high NPS score is the best indicator of the business's underlying health and the most important driver of shareholder value over the long term. At the consolidated level, Q4 compared to Q4 2021, our key operating metrics include agent count: 86,203, up 21%; units sold: 109,168, down 15%; and volume: $37.6 billion, down 16%. Agent growth in Q4 was offset by lower volume per agent, as elevated mortgage rates resulted in fewer transactions and price declines year-over-year. On a consolidated basis, Q4 revenues were $933 million, down 13% year-over-year, reflecting the challenging conditions in our core North American Realty market where we continue to gain share. I'd like to address questions regarding margin. Our margin has actually increased year-over-year, both for 2022 and for Q4. In a down market, our revenue share model cushions the impact of lower revenue on a bottom line as fewer agents hit their caps. This was evident in Q4, with gross margin percentages increasing 120 basis points year-over-year to 8.9%. This resulted in roughly flat gross profit dollars relative to Q4 2021, with EBITDA $144 million lower in revenue. So that's how it works. So, with lower revenue, we actually maintain the same amount of gross profit dollars. SG&A increased by 15% year-over-year in Q4, driven by higher personnel costs relating to supporting our 21% increase in agent count, which was partially offset by a reduction in SG&A of about $4 million per quarter, quarter-over-quarter. Q4 GAAP net loss was $7.2 million, while adjusted EBITDA was a positive 3.6 million. Despite a down market, we remain adjusted EBITDA profitable in Q4 and generated $38 million of operating cash flow, bringing our full operating cash flow for the entire year to $240 million. Before opening up the call to Q&A questions from our analysts, I want to take a step back and look at our longer-term growth, as shown on the last slide. On this chart, we are showing our agent count and total revenue on a quarterly basis over the past six years. Our growth has been extraordinary, with our agent count and revenue increasing from 6,000 agents and $156 million in revenue in 2017 to over 86,000 agents and $4.6 billion in revenue at the end of 2022. Our focus on agent satisfaction has clearly paid off over the long term, and that is why we are doubling down on agent-centric innovation to drive our next phase of growth at eXp. With that, I will turn it back to Denise and begin the Q&A portion of the call. Thank you, Denise.

Great. Thanks, Jeff. I'll kick off with a few questions for you and Glenn before we open the call to our covering analysts. First, I'll start with you, Glenn. You've broken out international from North America Realty for the first time. Can you just talk a little bit about the international opportunity?

Yes. Internationally, we have been expanding outside of North America, specifically in the U.K. and Australia, since 2018 and 2019. We have found that the value proposition we developed here works well in international markets. We have added 22 different international markets to eXp, and while we don't break out the specifics internally yet, some of those markets are actually profitable, and we expect more to become profitable over time. Each country presents unique characteristics, and some are quite small compared to certain states in the U.S., so the mix will vary by country. As we continue to expand our marketplace, we anticipate that our international presence will reach a significant scale. When we achieve that scale internationally, we expect to be as large, if not larger, than North American Realty because there are more agents operating under better financial arrangements with their brokerages internationally than domestically. This presents a greater opportunity for agents to build businesses within our framework as we grow. We are observing this trend in conversations we've had recently, such as in the U.K. and Australia, and we consistently engage with agents in various global markets, confirming that our business model is effective.

Great. Okay. Just one more for you. What do you see for the industry this year in 2023?

We believe that the industry will face challenges for the remainder of 2023. There is a possibility that the fourth quarter may perform better than last year’s fourth quarter, primarily because last year was quite difficult. However, we anticipate that the first quarter will be lower than the first quarter of last year, and the same goes for the second quarter. The third quarter is uncertain; our internal metrics indicate it may be slightly more challenging than the third quarter of last year, but the outcome is still uncertain.

Okay. Great. And Jeff, just one for you before I open it up to the analysts. How are you thinking about allocating costs and investments as you move forward into 2023?

Yes, Denise, I did touch on that regarding capital allocation. Reflecting on the COVID days when everything became chaotic and we didn't know how to respond, we took immediate actions. While this situation isn't similar to COVID, I want to emphasize that we'll approach this thoughtfully. That's why we've outlined our segmentation. Our focus is on growing our North American business and investing in other areas. Last year, we aimed to return to the $80 million per quarter target for SG&A. With the team coming together and Glenn rejoining our business, we're thinking more strategically. We are committed to being responsible with our capital, as our numbers indicate, and we have a track record of that. However, with the cash generated and the opportunities we foresee, we won't overlook significant future opportunities. We'll be responsible in our capital management while actively investing in the areas we discussed today to ensure we achieve results.

Got it. Thanks. So now, I'll open the call up to questions from our analysts. John, I'll take your question first.

Okay. Great. Can you guys hear me okay?

Yes

Yes, John.

Thank you, guys. So on the gross margin, that was a lot better than we anticipated, I think 120 bps year-over-year. That's the best kind of annual movement you guys are seeing since the heart of COVID back in 2Q '20. But, Jeff, to your point, which I think is a really good one, that help keep the gross profit roughly flat on the revenue decline. I think that's an important kind of under-appreciated angle of the model. But I wanted to get your take on how that might shake out this year if we assume that average agent production continues to drop a bit here, maybe even stays at the current levels. How should we be thinking about gross margin all in for '23?

I believe that when we face challenges on the revenue side, as long as we prioritize doing the right thing for the agents, we can maintain the gross margin percentage at the levels we observed in the fourth quarter. As the market begins to improve, we anticipate that gross margin will decrease. Over the past few years, as we've anticipated, a decline in the market has led to an increase in gross margin percentage. If we continue to encounter difficulties in the first half of the year, it's likely that our gross margin percentage will be stronger. However, as business improves, which it will over time, that percentage will decrease as more volume comes through the system.

Okay. That's helpful. And then I think that's probably upside, a lot of investors' models as far as the gross margin, but on the OpEx side, it sounds like you will continue to invest pretty heavily here, I guess consistently about $93 million to $96 million is what you've seen on each quarter last three quarters of total G&A and marketing spend. How should we think about that going forward? Is that a pretty good quarterly run rate?

It is in that range. So we don't have a plan to blow out expenses at all on the SG&A side. What we're going to be doing is, we're working on productivity in a big way. So, the same kind of range that we saw this year is kind of at this point in time, that range is what we're looking at for 2023.

Okay. That's helpful. I appreciate the time, guys. Sorry, Glenn.

I'm advising the team and investors that we don't want to be limited by a specific number; we see potential opportunities. When we focus on enhancing the agent experience, whether in the U.K., Australia, France, or elsewhere, we'll be making more strategic investments at a faster pace than in the past. Additionally, I want to ensure the team doesn't feel constrained by the figures they may have shared during public discussions. I just wanted to make that clear.

Yes. That's good clarification. I appreciate that. Thank you, Glenn.

All right. We'll move to Tom. Tom, if you're ready.

Great. Thanks guys. Nice to be back in the eXp campus here. A couple if I could. Maybe Glenn, first off, or for Jeff. I was hoping you guys could just parse out the net agent addition trends kind of in the U.S. versus international a bit, both in the fourth quarter and kind of maybe so far this year. Are you confident that you're maintaining or gaining agent share in the U.S.?

The percentage of market share for agents is definitely evident. The agent count has remained relatively stable at the end of Q4 and the start of Q1 in North America. While I haven't confirmed the figures yet, I've heard that there has been a significant drop in roster numbers since the start of the year. Nevertheless, we believe that our market share continues to grow despite the flat numbers. The churn rate, as we've discussed previously, shows that agents with zero to two transactions are churning out four times more than top-producing agents. Most of the agents we are losing are those seeking opportunities outside of the real estate sector.

That's great. That's really helpful. Thanks. Maybe just one question on international. What should we expect regarding the overall consolidated EBITDA in 2023 related to international? Should we anticipate similar investment levels compared to last year? Also, the same question applies to corporate expenses, which are clearly a significant drag on EBITDA. I'm interested to know if you can meaningfully slow that down or potentially reduce it if industry volumes are worse than you expected.

Yes. So, the eXp World Holdings portion is to some extent fairly fixed. A lot of it is compliance infrastructure for being a public company. That part is fairly stable. Jeff can certainly comment more on that. On the international front, we did slow down our new country growth launches. We did that in the second half of 2022. That being said, now that we've broken it out, we actually segmented the numbers for a reason. One was so that we could invest more in international growth by showing that the model does work at scale. We would like to add 50 to 80 more countries over the next few years, but the key is making sure that we're able to manage our cash balance such that we can make moves to grow. We're not going to accelerate growth but not slow down too much more than we did last year and will probably start to approach the four to five new countries a year range towards the end of the year.

I would add that a significant portion of World Holdings expenses consists of professional services and stock compensation, which tend to have low variability. Additionally, I agree with Glenn on the investment side, but we also anticipate seeing improved productivity in some of our stronger-performing countries in the near future. For instance, the U.K. is expected to demonstrate greater productivity and sales, leading to enhanced margins as a result of our initiatives. This will be a major emphasis for us in 2023.

Great. Thanks. I'll get back in the queue here.

Great. Thanks, Tom. Now, let's take a question from Matt Filyk from William Blair. Matt, if you're ready?

Hi, everyone. This is Matt Filyk on for Stephen Sheldon. Thank you for taking my questions and great to be in the campus. To start, I had one on commercial; I was wondering if you can provide an update on your efforts to expand into commercial real estate. Specifically, how many agents are focused on commercial and how do you see that business evolving over the coming years?

Yes. So I believe we've got a similar number of agents as we had towards the end of Q3, around 1,000 agents on the commercial side. What we expect is the commercial universe of agents is substantially smaller than the residential agents, and we still have fairly low competitive caps in that space. We're three times better financially than a lot of firms in this regard, so this represents a great place for commercial agents to move their license. We do expect that over time, we'll become a larger commercial firm. But I think that in the context of a larger enterprise, it will still be relatively small.

Got it. That's a helpful update. Thank you for that. And just had a quick one on international. Any markets where initial traction has been stronger than expected and you're most optimistic about over the near term?

Jeff mentioned previously South Africa. That's a fairly new country for us. We're over 1,000 agents now in South Africa, and these are a much more professional agent base compared to other countries like India and Mexico, where we have a similar number of agents, but where real estate is less organized from a professional standards perspective. So we're quite optimistic about South Africa. The three countries that are at or near profitable are the U.K., Australia, and South Africa. We're continuing to work on the other countries as we get more mature in India and Mexico, where we need to bring in infrastructure to the industry that lacks standard practices.

Got it. Thank you, Glenn and Jeff. I'll jump back in the queue. That's it for me.

Great. Thanks, Matt. Now I'll move over to Slido, and we'll take some questions from the audience for you, Glenn and Jeff. I'll take the first one. Of the $13.7 million international segment EBITDA loss, how much is the result of new country opening costs versus subscale operations?

Good question.

Most of the $13.7 million is investment in opening up the new countries. One of the learnings we've had is that it has taken a little longer than we originally anticipated. When we enter a country, we play around with models to ensure the proper agent value proposition for those countries. It's taken longer because we're doing a lot of work in each country. Most of that money is investment in growing, getting the name landed, getting the right people in place, getting the right operations in place, and building the teams and agent groups.

Got it. I'll take a couple more. It seems that the agent count growth is slowing in North America. Is the 500,000 agents goal primarily focused on international expansion? And what's the target for agents in North America?

Yes. So our $500,000 agent number, as I've stated in the past, is an aspirational number that we believe we will get to eventually at some point. We've talked about the idea of maybe 500,000 agents in five years. But it was based on a much different housing market than we have today. I believe there are 200,000 to 300,000, maybe even 400,000 agents in North America that will cease being real estate professionals in the next 12 to 24 months. That's a significant chunk of the industry, up to 25% that won't be here. If we use that factor, then you can almost take 100,000 agents off of that 500,000 agents for that aspirational five-year outlook. As long as we're focused on building a really great agent value proposition, we will eventually get there. The timing of that number is uncertain.

Got it. All right. I think we have time for one more question for an agent here. Is the plan to eventually move away from the eXp campus over to Frame? And if so, what's the expected timeline?

So if you're asking me, yes, we are asking the overall team. It's a little mixed in terms of moving away and when, and that’s because a lot of people develop great habits and ways to use VirBELA. The great thing about Frame is that it is web-based and browser-based, which means it doesn't need the same type of infrastructure from a client perspective because it doesn't need client updates. When you entered eXp campus, if you've been here before for previous calls, you will have noticed that it had to patch and do some other things on your client-side whether you're on a Windows machine or a Mac. With the web-based version, you don't have to update client-side software. For me, that feels more modern in terms of infrastructure and toolset. I know Frame gets many of the same commercial clients using VirBELA and is supporting more users. As it scales, I think it's natural that we'll move over to Frame. I don't have an expected timeline, but I wouldn't be surprised if next year we do it in Frame as opposed to VirBELA.

Great. Got it. Before we close the call, I just want to remind everyone in the audience that eXp's Shareholder Summit will take place from May 17 through 20 in Orlando, Florida this year. We'd like to invite all the analysts, investors and agents to join us for shareholder-specific sessions of the event. Please register at expshareholderssummit.com. As always, please stay connected by visiting expworldholdings.com for the latest updates on eXp news results and events. You'll also find a recording of this call and our latest investor presentation on the Investors section of the site. Thank you for joining us today. This concludes the eXp World Holdings fourth quarter and full year 2022 earnings fireside chat.