AGNT, Inc 10-Q for FY2022 Q2

AGNT, Inc. (AGNT)

10-Q 2022-08-03 For: 2022-06-30

Added on April 10, 2026

About this 10-Q

AGNT, Inc filed this 10-Q on August 3, 2022, covering the quarter ended June 30, 2022 (FY2022 Q2).

Headline figures

Quarter ended June 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.42B; up 41.5% from $999.89M a year earlier
Net income: $9.36M; down 74.7% from net income of $37.05M a year earlier
Diluted EPS: $0.06; down 75.0% from $0.24 a year earlier

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

2219 Rimland Drive, Suite 301, Bellingham, WA		98226
(Address of principal executive offices)		(Zip Code)
(360) 685-4206
(Registrant’s telephone number, including area code)


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


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	24
Item 4.	Controls and Procedures	24

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	25
Item 1A.	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	26
Item 4.	Mine Safety Disclosures	26
Item 5.	Other Information	26
Item 6.	Exhibits	27


	June 30, 2022	December 31, 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$ 134,898	$ 108,237
Restricted cash	105,883	67,673
Accounts receivable, net of allowance for credit losses of $2,806 and $2,198, respectively	154,997	133,489
Prepaids and other assets	7,822	9,916
TOTAL CURRENT ASSETS	403,600	319,315
Property, plant, and equipment, net	19,906	15,902
Operating lease right-of-use assets	2,265	2,482
Other noncurrent assets	1,943	2,827
Intangible assets, net	7,071	7,528
Deferred tax assets	59,719	52,827
Goodwill	12,945	12,945
TOTAL ASSETS	$ 507,449	$ 413,826

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$ 5,971	$ 7,158
Customer deposits	93,566	67,673
Accrued expenses	147,393	111,672
Current portion of lease obligation - operating lease	213	311
TOTAL CURRENT LIABILITIES	247,143	186,814
Long-term payable	2,714	2,714
Long-term lease obligation - operating lease, net of current portion	720	765
TOTAL LIABILITIES	250,577	190,293

EQUITY
Common Stock, $0.00001 par value 900,000,000 shares authorized; 163,286,570 issued and 151,798,879 outstanding in 2022; 155,516,284 issued and 148,764,592 outstanding in 2021	2	1
Additional paid-in capital	509,476	401,479
Treasury stock, at cost: 11,487,691 and 6,751,692 shares held, respectively	(289,829)	(210,009)
Accumulated earnings	37,007	30,510
Accumulated other comprehensive income (loss)	(953)	188
Total eXp World Holdings, Inc. stockholders' equity	255,703	222,169
Equity attributable to noncontrolling interest	1,169	1,364
TOTAL EQUITY	256,872	223,533
TOTAL LIABILITIES AND EQUITY	$ 507,449	$ 413,826


	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Revenues	$ 1,415,060	$ 999,887	$ 2,425,791	$ 1,583,720
Operating expenses
Commissions and other agent-related costs	1,307,810	$ 919,970	2,235,077	$ 1,450,317
General and administrative expenses	91,391	60,721	166,713	107,021
Sales and marketing expenses	4,210	2,683	7,910	4,940
Total operating expenses	1,403,411	983,374	2,409,700	1,562,278
Operating income	11,649	16,513	16,091	21,442
Other (income) expense
Other (income) expense, net	62	54	472	(80)
Equity in losses of unconsolidated affiliates	567	1	884	7
Total other (income) expense, net	629	55	1,356	(73)
Income before income tax expense	11,020	16,458	14,735	21,515
Income tax (benefit) expense	1,661	(20,585)	(3,488)	(20,374)
Net income	9,359	37,043	18,223	41,889
Net income attributable to noncontrolling interest	-	7	18	7
Net income attributable to eXp World Holdings, Inc.	$ 9,359	$ 37,050	$ 18,241	$ 41,896

Earnings per share
Basic	$ 0.06	$ 0.25	$ 0.12	$ 0.29
Diluted	$ 0.06	$ 0.24	$ 0.12	$ 0.27
Weighted average shares outstanding
Basic	150,783,418	145,584,495	150,049,170	144,973,139
Diluted	155,816,038	157,288,672	156,579,590	158,096,735

Comprehensive income:
Net income	$ 9,359	$ 37,043	$ 18,223	$ 41,889
Comprehensive loss attributable to noncontrolling interests	-	7	18	7
Net income attributable to eXp World Holdings, Inc.	9,359	37,050	18,241	41,896
Other comprehensive income:
Foreign currency translation gain (loss), net of tax	(1,182)	24	(1,141)	71
Comprehensive income attributable to eXp World Holdings, Inc.	$ 8,177	$ 37,074	$ 17,100	$ 41,967


	Cash and cash equivalents	Restricted cash	Total
Balance, December 31, 2020	$ 100,143	$ 27,781	$ 127,924
Balance, June 30, 2021	$ 107,413	$ 93,762	$ 201,175
Balance, December 31, 2021	$ 108,237	$ 67,673	$ 175,910
Balance, June 30, 2022	$ 134,898	$ 105,883	$ 240,781


	June 30, 2022	December 31, 2021
Computer hardware and software	$ 30,200	$ 20,824
Furniture, fixture, and equipment	26	26
Total depreciable property and equipment	30,226	20,850
Less: accumulated depreciation	(15,270)	(11,711)
Depreciable property, net	14,956	9,139
Assets under development	4,950	6,763
Property, plant, and equipment, net	$ 19,906	$ 15,902


	June 30, 2022			December 31, 2021
	Gross	Accumulated	Net Carrying	Gross	Accumulated	Net Carrying
	Amount	Amortization	Amount	Amount	Amortization	Amount
Trade name	$ 2,868	($ 697)	$ 2,171	$ 2,868	($ 554)	$ 2,314
Existing technology	2,204	(1,643)	561	1,846	(1,102)	744
Non-competition agreements	125	(125)	-	125	(125)	-
Customer relationships	1,895	(456)	1,439	1,895	(361)	1,534
Licensing agreement	210	(146)	64	210	(110)	100
Intellectual property	2,836	-	2,836	2,836	-	2,836
Total intangible assets	$ 10,138	($ 3,067)	$ 7,071	$ 9,780	($ 2,252)	$ 7,528


Period Ending December 31,
Remaining 2022		$ 178
2023		155
2024		90
2025		90
2026		90
2027 and thereafter		405
Total lease payments		1,008
Less: interest		(75)
Total operating lease liabilities		$ 933


	Three Months Ended June 30,		Six Months Ended June 30,
(Shares of Common Stock)	2022	2021	2022	2021
Common stock:
Balance, beginning of quarter	158,300,605	147,934,768	155,516,284	146,677,786
Shares issued for stock options exercised	639,861	1,797,132	1,363,055	2,344,908
Agent growth incentive stock compensation	403,652	339,904	914,324	625,026
Agent equity stock compensation	3,942,452	1,075,182	5,492,907	1,499,266
Balance, end of quarter	163,286,570	151,146,986	163,286,570	151,146,986


		Amount
Stock grant liability increase at December 31, 2021	$	4,341
Stock grant liability increase year to date		4,451
Stock grants reclassified from liability to equity year to date		(691)
Balance, June 30, 2022		$ 8,101


	Three Months Ended June 30,		Six Months Ended June 30,
(Shares of Treasury Stock)	2022	2021	2022	2021
Treasury stock:
Balance, beginning of quarter	7,883,740	3,035,404	6,751,692	2,534,494
Repurchases of common stock	3,603,951	1,689,892	4,735,999	2,190,802
Balance, end of quarter	11,487,691	4,725,296	11,487,691	4,725,296


	Three Months Ended	% of	Three Months Ended	% of	Change 2022 vs. 2021
	June 30, 2022	Revenue	June 30, 2021	Revenue	$	%

	(In thousands, except share amounts and per share data)
Statement of Operations Data:
Revenues	$ 1,415,060	100%	$ 999,887	100%	$ 415,173	42%
Operating expenses
Commissions and other agent-related costs	1,307,810	92%	919,970	92%	387,840	42%
General and administrative expenses	91,391	6%	60,721	6%	30,670	51%
Sales and marketing expenses	4,210	-%	2,683	-%	1,527	57%
Total operating expenses	1,403,411	99%	983,374	98%	420,037	43%
Operating income	11,649	1%	16,513	2%	(4,864)	(29)%
Other expense
Other (income) expense, net	62	-%	54	-%	8	15%
Equity in losses of unconsolidated affiliates	567	-%	1	-%	566	56600%
Other expense, net	629	-%	55	-%	574	1044%
Income before income tax expense	11,020	1%	16,458	2%	(5,438)	(33)%
Income tax (benefit) expense	1,661	-%	(20,585)	(2)%	22,246	(108)%
Net income	9,359	1%	37,043	4%	(27,684)	(75)%
Add back: Net loss attributable to noncontrolling interest	-	-%	7	-%	(7)	(100)%
Net income attributable to eXp World Holdings, Inc.	9,359	1%	37,050	4%	(27,691)	(75)%
Adjusted EBITDA⁽¹⁾	$ 26,914	2%	$ 26,988	3%	($ 74)	-%
Earnings per share
Basic	$ 0.06		$ 0.25		($ 0.19)	(76)%
Diluted	$ 0.06		$ 0.24		($ 0.18)	(75)%
Weighted average shares outstanding
Basic	150,783,418		145,584,495
Diluted	155,816,038		157,288,672


	Six Months Ended	% of	Six Months Ended	% of	Change 2022 vs. 2021
	June 30, 2022	Revenue	June 30, 2021	Revenue	$	%

	(In thousands, except share amounts and per share data)
Statement of Operations Data:
Revenues	$ 2,425,791	100%	$ 1,583,720	100%	$ 842,071	53%
Operating expenses
Commissions and other agent-related costs	2,235,077	92%	1,450,317	92%	784,760	54%
General and administrative expenses	166,713	7%	107,021	7%	59,692	56%
Sales and marketing expenses	7,910	-%	4,940	-%	2,970	60%
Total operating expenses	2,409,700	99%	1,562,278	99%	847,422	54%
Operating income	16,091	1%	21,442	1%	(5,351)	(25)%
Other (income) expense, net	472	-%	(80)	-%	552	(690)%
Equity in losses of unconsolidated affiliates	884	-%	7	-%	877	12529%
Total other (income) expense, net	1,356	-%	(73)	-%	1,429	(1,958)%
Income before income tax expense	14,735	1%	21,515	1%	(6,780)	(32)%
Income tax (benefit) expense	(3,488)	-%	(20,374)	(1)%	16,886	(83)%
Net income	18,223	1%	41,889	3%	(23,666)	(56)%
Add back: Net loss attributable to noncontrolling interest	18	-%	7	-%	11	157%
Net income attributable to eXp World Holdings, Inc.	18,241	1%	41,896	3%	(23,655)	(56)%
Adjusted EBITDA⁽¹⁾	$ 44,627	2%	$ 41,810	3%	$ 2,817	7%
Earnings per share
Basic	$ 0.12		$ 0.29		($ 0.17)	(59)%
Diluted	$ 0.12		$ 0.27		($ 0.15)	(56)%
Weighted average shares outstanding
Basic	150,049,170		144,973,139
Diluted	156,579,590		158,096,735


	Six Months Ended June 30,
	2022	2021
OPERATING ACTIVITIES
Net income	$ 18,223	$ 41,889
Reconciliation of net income to net cash provided by operating activities:
Depreciation expense	3,570	2,196
Amortization expense - intangible assets	817	621
Loss on dissolution of consolidated affiliates	361	-
Allowance for credit losses on receivables/bad debt on receivables	608	(208)
Equity in loss of unconsolidated affiliates	884	7
Agent growth incentive stock compensation expense	17,028	11,312
Stock option compensation	7,121	6,239
Agent equity stock compensation expense	86,835	59,853
Deferred income taxes, net	(6,892)	(15,329)
Changes in operating assets and liabilities:
Accounts receivable	(22,269)	(57,095)
Prepaids and other assets	2,236	(4,466)
Customer deposits	25,893	65,981
Accounts payable	(1,152)	2,354
Accrued expenses	31,961	54,231
Long term payable	-	(160)
Other operating activities	74	-
NET CASH PROVIDED BY OPERATING ACTIVITIES	165,298	167,425
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(8,077)	(5,609)
Acquisition of businesses	-	(1,500)
NET CASH USED IN INVESTING ACTIVITIES	(8,077)	(7,109)
FINANCING ACTIVITIES
Repurchase of common stock	(79,820)	(88,912)
Proceeds from exercise of options	780	1,757
Transactions with noncontrolling interests	(425)	19
Dividends declared and paid	(11,744)	-
NET CASH USED IN FINANCING ACTIVITIES	(91,209)	(87,136)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	(1,141)	71
Net change in cash, cash equivalents and restricted cash	64,871	73,251
Cash, cash equivalents and restricted cash, beginning balance	175,910	127,924
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE	$ 240,781	$ 201,175

SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:


	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Other information
Operating lease expense	$ 97	$ 84	$ 206	$ 202
Short-term lease expense	260	10	282	26
Cash paid for operating leases	60	84	131	202
Weighted-average remaining lease term (years) – operating leases⁽¹⁾	7.3	3.6	7.3	3.6
Weighted-average discount rate – operating leases	5.061%	4.855%	5.061%	4.855%


	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021

	(in thousands, except transactions and agent count)
Performance:
Agent count	82,856	58,263	82,856	58,263
Transactions	150,032	115,431	264,337	189,309
Volume	$ 57,894,767	$ 40,117,368	$ 99,274,268	$ 64,625,224
Revenue	$ 1,415,060	$ 999,887	$ 2,425,791	$ 1,583,720
Gross profit	107,250	79,917	190,714	133,403
Gross margin (%)	7.6%	8.0%	7.9%	8.4%
Adjusted EBITDA⁽¹⁾	26,914	26,988	44,627	41,810


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
4/1/2022 - 4/30/2022	611,955	$ 16.78	611,955	$ 168,425,444
5/1/2022 - 5/31/2022	1,448,783	13.92	1,448,783	148,468,912
6/1/2022 - 6/30/2022	1,543,213	12.98	1,543,213	128,530,534
Total	3,603,951	$ 14.56	3,603,951



Exhibit	Exhibit	Incorporated by Reference
Number	Description	Form	Exhibit	Filing Date/Period End Date
3.1	Restated Certificate of Incorporation	10-Q	3.1	3/31/2022
3.2	Restated Bylaws	10-Q	3.2	3/31/2022
10.1	Master Repurchase Agreement, dated March 29, 2022, by and among SUCCESS Lending, LLC, Flagstar Bank FSB, and Buyers	10-Q	3.2	3/31/2022
10.2	Mortgage Warehouse Agreement, effective April 8, 2022, by and between SUCCESS Lending, LLC and Texas Capital Bank	10-Q	3.2	3/31/2022
10.3	Issuer Repurchase Plan, dated January 10, 2022, by and between eXp World Holdings Inc. and Stephens Inc.	8-K	3.2	5/4/2022
10.4	First Amendment to eXp World Holdings, Inc. Stock Repurchase Program	8-K	3.2	5/4/2022
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)


August 3, 2022		eXp World Holdings, Inc.
		(Registrant)

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


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