AGNT, Inc 10-Q for FY2022 Q1

AGNT, Inc. (AGNT)

10-Q 2022-05-04 For: 2022-03-31

Added on April 10, 2026

About this 10-Q

AGNT, Inc filed this 10-Q on May 4, 2022, covering the quarter ended March 31, 2022 (FY2022 Q1).

Headline figures

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.01B; up 73.1% from $583.83M a year earlier
Net income: $8.88M; up 83.3% from net income of $4.85M a year earlier
Diluted EPS: $0.06; up 100.0% from $0.03 a year earlier

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Delaware		98-0681092
(State or other jurisdiction		(IRS Employer
of incorporation or organization)		Identification No.)


Common Stock, par value $0.00001 per share	EXPI	NASDAQ
(Title of Each Class)	(Trading Symbol)	(Name of each exchange on which registered)


Large accelerated filer ☒	Accelerated filer ☐	Non-accelerated filer ☐	Smaller reporting company ☐
Emerging Growth Company ☐


		Page
	Forward Looking Statements	3

PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22
Item 4.	Controls and Procedures	23

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	25
Item 6.	Exhibits	25


	March 31, 2022	December 31, 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$ 130,092	$ 108,237
Restricted cash	116,939	67,673
Accounts receivable, net of allowance for credit losses of $2,417 and $2,198, respectively	142,963	133,489
Prepaids and other assets	9,348	9,916
TOTAL CURRENT ASSETS	399,342	319,315
Property, plant, and equipment, net	19,024	15,902
Operating lease right-of-use assets	2,387	2,482
Other noncurrent assets	2,510	2,827
Intangible assets, net	7,204	7,528
Deferred tax assets	58,728	52,827
Goodwill	12,945	12,945
TOTAL ASSETS	$ 502,140	$ 413,826

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$ 7,191	$ 7,158
Customer deposits	116,939	67,673
Accrued expenses	128,741	111,672
Current portion of lease obligation - operating lease	238	311
TOTAL CURRENT LIABILITIES	253,109	186,814
Long-term payable	2,714	2,714
Long-term lease obligation - operating lease, net of current portion	779	765
TOTAL LIABILITIES	256,602	190,293

EQUITY
Common Stock, $0.00001 par value 900,000,000 shares authorized; 158,300,605 issued and 150,416,865 outstanding in 2022; 155,516,284 issued and 148,764,592 outstanding in 2021	2	1
Additional paid-in capital	450,570	401,479
Treasury stock, at cost: 7,883,740 and 6,751,692 shares held, respectively	(239,965)	(210,009)
Accumulated earnings	33,533	30,510
Accumulated other comprehensive income	229	188
Total eXp World Holdings, Inc. stockholders' equity	244,369	222,169
Equity attributable to noncontrolling interest	1,169	1,364
TOTAL EQUITY	245,538	223,533
TOTAL LIABILITIES AND EQUITY	$ 502,140	$ 413,826


	Three Months Ended March 31,
	2022	2021
Revenues	$ 1,010,731	$ 583,833
Operating expenses
Commissions and other agent-related costs	927,267	$ 530,347
General and administrative expenses	75,322	46,300
Sales and marketing expenses	3,700	2,257
Total operating expenses	1,006,289	578,904
Operating income	4,442	4,929
Other (income) expense
Other (income) expense, net	410	(134)
Equity in losses of unconsolidated affiliates	317	6
Total other expense, net	727	(128)
Income before income tax expense	3,715	5,057
Income tax (benefit) expense	(5,149)	211
Net income	8,864	4,846
Net income attributable to noncontrolling interest	18	-
Net income attributable to eXp World Holdings, Inc.	$ 8,882	$ 4,846

Earnings per share
Basic	$ 0.06	$ 0.03
Diluted	$ 0.06	$ 0.03
Weighted average shares outstanding
Basic	149,226,166	144,354,991
Diluted	156,842,721	158,722,126

Comprehensive income:
Net income	$ 8,864	$ 4,846
Comprehensive loss attributable to noncontrolling interests	18	-
Net income attributable to eXp World Holdings, Inc.	8,882	4,846
Other comprehensive income:
Foreign currency translation gain, net of tax	41	47
Comprehensive income attributable to eXp World Holdings, Inc.	$ 8,923	$ 4,893


	Cash and cash equivalents	Restricted cash	Total
Balance, December 31, 2020	$ 100,143	$ 27,781	$ 127,924
Net activity	4,249	38,324	42,573
Balance, March 31, 2021	$ 104,392	$ 66,105	$ 170,497
Balance, December 31, 2021	$ 108,237	$ 67,673	$ 175,910
Net activity	21,855	49,266	71,121
Balance, March 31, 2022	$ 130,092	$ 116,939	$ 247,031


	March 31, 2022	December 31, 2021
Computer hardware and software	$ 24,519	$ 20,824
Furniture, fixture, and equipment	26	26
Total depreciable property and equipment	24,545	20,850
Less: accumulated depreciation	(13,328)	(11,711)
Depreciable property, net	11,217	9,139
Assets under development	7,807	6,763
Property, plant, and equipment, net	$ 19,024	$ 15,902


	March 31, 2022			December 31, 2021
	Gross	Accumulated	Net Carrying	Gross	Accumulated	Net Carrying
	Amount	Amortization	Amount	Amount	Amortization	Amount
Trade name	$ 2,868	($ 625)	$ 2,243	$ 2,868	($ 554)	$ 2,314
Existing technology	1,863	(1,306)	557	1,846	(1,102)	744
Non-competition agreements	125	(125)	0	125	(125)	-
Customer relationships	1,895	(409)	1,486	1,895	(361)	1,534
Licensing agreement	210	(128)	82	210	(110)	100
Intellectual property	2,836	-	2,836	2,836	-	2,836
Total intangible assets	$ 9,797	($ 2,593)	$ 7,204	$ 9,780	($ 2,252)	$ 7,528


Period Ending December 31,
Remaining 2022		$ 201
2023		163
2024		90
2025		90
2026		90
2027 and thereafter		405
Total lease payments		1,039
Less: interest		(22)
Total operating lease liabilities		$ 1,017


	Three Months Ended March 31,
(Shares of Common Stock)	2022	2021
Common stock:
Balance, beginning of quarter	155,516,284	146,677,786
Shares issued for stock options exercised	723,194	547,776
Agent growth incentive stock compensation	510,672	285,122
Agent equity stock compensation	1,550,455	424,084
Balance, end of quarter	158,300,605	147,934,768


		Amount
Balance, December 31, 2020	$	2,093
Stock grant liability increase year to date		1,221
Balance, March 31, 2021		$ 3,314

		Amount
Stock grant liability increase at December 31, 2021	$	4,341
Stock grant liability increase year to date		1,906
Stock grants reclassified from liability to equity year to date		(691)
Balance, March 31, 2022		$ 5,556


	Three Months Ended March 31,
(Shares of Treasury Stock)	2022	2021
Treasury stock:
Balance, beginning of quarter	6,751,692	2,534,494
Repurchases of common stock	1,132,048	500,910
Balance, end of quarter	7,883,740	3,035,404


	Three Months Ended	% of	Three Months Ended	% of	Change 2022 vs. 2021
	March 31, 2022	Revenue	March 31, 2021	Revenue	$	%

	(In thousands, except share amounts and per share data)
Statement of Operations Data:
Revenues	$ 1,010,731	100%	$ 583,833	100%	$ 426,898	73%
Operating expenses
Commissions and other agent-related costs	927,267	92%	530,347	91%	396,920	75%
General and administrative expenses	75,322	7%	46,300	8%	29,022	63%
Sales and marketing expenses	3,700	-%	2,257	-%	1,443	64%
Total operating expenses	1,006,289	100%	578,904	99%	427,385	74%
Operating income	4,442	-%	4,929	1%	(487)	(10)%
Other (income) expense
Other (income) expense, net	410	-%	(134)	-%	544	(406)%
Equity in losses of unconsolidated affiliates	317	-%	6	-%	311	5183%
Other (income) expense, net	727	-%	(128)	-%	855	(668)%
Income before income tax expense	3,715	-%	5,057	1%	(1,342)	(27)%
Income tax (benefit) expense	(5,149)	(1)%	211	-%	(5,360)	(2,540)%
Net income	8,864	1%	4,846	1%	4,018	83%
Add back: Net loss attributable to noncontrolling interest	18	-%	-	-%	18	-%
Net income attributable to eXp World Holdings, Inc.	8,882	1%	4,846	1%	4,036	83%
Adjusted EBITDA⁽¹⁾	$ 17,709	2%	$ 14,820	3%	$ 2,889	19%
Earnings per share
Basic	$ 0.06		$ 0.03		$ 0.03	100%
Diluted	$ 0.06		$ 0.03		$ 0.03	100%
Weighted average shares outstanding
Basic	149,226,166		144,354,991
Diluted	156,842,721		158,722,126


Period	Total number of shares purchased	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs⁽¹⁾	Approximate dollar value of shares that may yet be purchased under the plans or programs
1/1/2022 - 1/31/2022	350,920	$ 27.81	350,920	$ 198,368,431
2/1/2022 - 2/28/2022	364,855	27.43	364,855	188,382,016
3/1/2022 - 3/31/2022	416,273	24.00	416,273	178,394,784
Total	1,132,048	$ 26.41	1,132,048


	Three Months Ended March 31,
	2022	2021
OPERATING ACTIVITIES
Net income	$ 8,864	$ 4,846
Reconciliation of net income to net cash provided by operating activities:
Depreciation expense	1,616	1,007
Amortization expense - intangible assets	342	303
Loss on dissolution of consolidated affiliates	361	-
Allowance for credit losses on receivables/bad debt on receivables	219	385
Equity in loss of unconsolidated affiliates	317	6
Agent growth incentive stock compensation expense	7,798	5,472
Stock option compensation	3,511	3,109
Agent equity stock compensation expense	38,500	21,402
Deferred income taxes, net	(5,901)	-
Changes in operating assets and liabilities:
Accounts receivable	(9,846)	(11,907)
Prepaids and other assets	496	(459)
Customer deposits	49,266	38,324
Accounts payable	74	1,161
Accrued expenses	15,854	15,420
Long term payable	-	(150)
Other operating activities	36	-
NET CASH PROVIDED BY OPERATING ACTIVITIES	111,507	78,919
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(4,684)	(2,257)
Acquisition of businesses	-	(1,500)
NET CASH (USED IN) INVESTING ACTIVITIES	(4,684)	(3,757)
FINANCING ACTIVITIES
Repurchase of common stock	(29,956)	(34,009)
Proceeds from exercise of options	498	1,373
Transactions with noncontrolling interests	(426)	-
Dividends declared and paid	(5,859)	-
NET CASH USED IN FINANCING ACTIVITIES	(35,743)	(32,636)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	41	47
Net change in cash, cash equivalents and restricted cash	71,121	42,573
Cash, cash equivalents and restricted cash, beginning balance	175,910	127,924
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE	$ 247,031	$ 170,497

SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:


	Three Months Ended March 31,
	2022	2021
Other information
Operating lease expense	$ 109	$ 96
Short-term lease expense	22	96
Cash paid for operating leases	71	16
Weighted-average remaining lease term (years) – operating leases⁽¹⁾	7.1	3.8
Weighted-average discount rate – operating leases	5.048%	4.481%


	Three Months Ended March 31,
	2022	2021

	(in thousands, except transactions and agent count)
Performance:
Agent count	78,196	50,333
Transactions	114,305	73,878
Volume	$ 41,379,500	$ 24,507,856
Revenue	$ 1,010,731	$ 583,833
Gross profit	83,464	53,486
Gross margin (%)	8.3%	9.2%
Adjusted EBITDA⁽¹⁾	17,709	14,820



Exhibit		Exhibit
Number		Description
3.1		Restated Certificate of Incorporation
3.2		Restated Bylaws
10.1		Master Repurchase Agreement, dated March 29, 2022, by and among SUCCESS Lending, LLC, Flagstar Bank FSB, and Buyers
10.2		Mortgage Warehouse Agreement, effective April 8, 2022, by and between SUCCESS Lending, LLC and Texas Capital Bank
10.3		Issuer Repurchase Plan, dated January 10, 2022, by and between eXp World Holdings Inc. and Stephens Inc. (incorporated by reference from Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on May 4, 2022)
10.4		First Amendment to eXp World Holdings, Inc. Stock Repurchase Program (incorporated by reference from Exhibit 10.3 to the Company’s Current Report on Form 8-K filed on May 4, 2022)
31.1		Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2		Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1		Certification of the Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2		Certification of the Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS		Inline XBRL Instance Document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


May 4, 2022		eXp World Holdings, Inc.
		(Registrant)

		/s/ Jeff Whiteside
		Jeff Whiteside
		Chief Financial Officer (Principal Financial Officer)

Number of days elapsed since the Purchase Date for the Participation Interest in the Aged Participated Mortgage Loan	Maximum aggregate total portion of the Participation Percentage (as of the Purchase Date for the related Participation Interest) in the applicable Aged Participated Mortgage Loan which Bank may require to be repurchased by Seller pursuant to this Section
60 days or more but less than 90 days	up to 10.0%


By:	/s/ Glenn Sanford
	Glenn Sanford
	Chief Executive Officer (Principal Executive Officer)