AGNT, Inc 10-Q for FY2023 Q2

AGNT, Inc. (AGNT)

10-Q 2023-08-03 For: 2023-06-30

Added on April 10, 2026

About this 10-Q

AGNT, Inc filed this 10-Q on August 3, 2023, covering the quarter ended June 30, 2023 (FY2023 Q2).

Headline figures

Quarter ended June 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $1.23B; down 12.9% from $1.42B a year earlier
Net income: $9.42M; up 0.7% from net income of $9.36M a year earlier
Diluted EPS: $0.06; unchanged from $0.06 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	The Nasdaq Stock Market


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	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	28

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3.	Defaults Upon Senior Securities	32
Item 4.	Mine Safety Disclosures	32
Item 5.	Other Information	32
Item 6.	Exhibits	33


	June 30, 2023	December 31, 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$ 124,714	$ 121,594
Restricted cash	88,560	37,789
Accounts receivable, net of allowance for credit losses of $1,544 and $4,014, respectively	134,998	87,262
Prepaids and other assets	8,101	8,468
TOTAL CURRENT ASSETS	356,373	255,113
Property, plant, and equipment, net	15,224	18,151
Operating lease right-of-use assets	32	2,127
Other noncurrent assets	6,567	1,703
Intangible assets, net	11,728	8,700
Deferred tax assets	65,306	68,676
Goodwill	27,552	27,212
TOTAL ASSETS	$ 482,782	$ 381,682

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable	$ 7,321	$ 10,391
Customer deposits	88,643	37,789
Accrued expenses	128,461	78,944
Current portion of lease obligation - operating lease	29	175
TOTAL CURRENT LIABILITIES	224,454	127,299
Long-term payable	5	4,697
Long-term lease obligation - operating lease, net of current portion	3	694
TOTAL LIABILITIES	224,462	132,690

EQUITY
Common Stock, $0.00001 par value 900,000,000 shares authorized; 177,900,083 issued and 153,588,186 outstanding at June 30, 2023; 171,656,030 issued and 152,839,239 outstanding at December 31, 2022	2	2
Additional paid-in capital	701,806	611,872
Treasury stock, at cost: 24,311,897 and 18,816,791 shares held, respectively	(463,738)	(385,010)
Accumulated earnings	18,138	20,723
Accumulated other comprehensive income	943	236
Total eXp World Holdings, Inc. stockholders' equity	257,151	247,823
Equity attributable to noncontrolling interest	1,169	1,169
TOTAL EQUITY	258,320	248,992
TOTAL LIABILITIES AND EQUITY	$ 482,782	$ 381,682


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Revenues	$ 1,232,927	$ 1,415,060	$ 2,083,543	$ 2,425,791
Operating expenses
Commissions and other agent-related costs	1,136,411	1,307,810	1,913,970	2,235,077
General and administrative expenses	82,541	91,391	154,308	166,713
Sales and marketing expenses	2,878	4,210	5,841	7,910
Total operating expenses	1,221,830	1,403,411	2,074,119	2,409,700
Operating income	11,097	11,649	9,424	16,091
Other (income) expense
Other (income) expense, net	(1,299)	62	(2,179)	472
Equity in losses of unconsolidated affiliates	143	567	485	884
Total other (income) expense, net	(1,156)	629	(1,694)	1,356
Income before income tax expense	12,253	11,020	11,118	14,735
Income tax (benefit) expense	2,831	1,661	243	(3,488)
Net income	9,422	9,359	10,875	18,223
Net income attributable to noncontrolling interest	-	-	-	18
Net income attributable to eXp World Holdings, Inc.	$ 9,422	$ 9,359	$ 10,875	$ 18,241

Earnings per share
Basic	$ 0.06	$ 0.06	$ 0.07	$ 0.12
Diluted	$ 0.06	$ 0.06	$ 0.07	$ 0.12
Weighted average shares outstanding
Basic	153,249,120	150,783,418	152,899,883	150,049,170
Diluted	156,693,959	155,816,038	156,119,627	156,579,590
Comprehensive income:
Net income	$ 9,422	$ 9,359	$ 10,875	$ 18,223
Comprehensive loss attributable to noncontrolling interests	-	-	-	18
Net income attributable to eXp World Holdings, Inc.	9,422	9,359	10,875	18,241
Other comprehensive income:
Foreign currency translation gain (loss), net of tax	64	(1,182)	707	(1,141)
Comprehensive income attributable to eXp World Holdings, Inc.	$ 9,486	$ 8,177	$ 11,582	$ 17,100


	Cash and cash equivalents	Restricted cash	Total
Balance, December 31, 2021	$ 108,237	$ 67,673	$ 175,910
Balance, June 30, 2022	$ 134,898	$ 105,883	$ 240,781
Balance, December 31, 2022	$ 121,594	$ 37,789	$ 159,383
Balance, June 30, 2023	$ 124,714	$ 88,560	$ 213,274


	June 30, 2023	December 31, 2022
Computer hardware and software	$ 36,467	$ 34,206
Furniture, fixture, and equipment	2,253	20
Total depreciable property and equipment	38,720	34,226
Less: accumulated depreciation	(23,552)	(19,282)
Depreciable property, net	15,168	14,944
Assets under development	56	3,207
Property, plant, and equipment, net	$ 15,224	$ 18,151


	June 30, 2023			December 31, 2022
	Gross	Accumulated	Net Carrying	Gross	Accumulated	Net Carrying
	Amount	Amortization	Amount	Amount	Amortization	Amount
Trade name	$ 3,472	($ 984)	$ 2,488	$ 3,459	($ 841)	$ 2,618
Existing technology	8,188	(2,889)	5,299	3,995	(2,458)	1,537
Non-competition agreements	469	(125)	344	461	(125)	336
Customer relationships	1,895	(646)	1,249	1,895	(551)	1,344
Licensing agreement	210	(210)	-	210	(181)	29
Intellectual property	2,836	(488)	2,348	2,836	-	2,836
Total intangible assets	$ 17,070	($ 5,342)	$ 11,728	$ 12,856	($ 4,156)	$ 8,700


		Amount
Balance, December 31, 2022		$ 3,885
Stock grant liability increase year to date		1,338
Stock grants reclassified from liability to equity year to date		(1,094)
Balance, June 30, 2023		$ 4,129


	Revenues
	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
North American Realty	$ 1,219,345	$ 1,404,028	$ 2,056,459	$ 2,405,908
International Realty	11,991	8,908	22,748	16,002
Virbela	1,811	2,040	3,974	3,853
Other Affiliated Services	1,072	1,043	2,749	1,881
Revenues reconciliation:
Segment eliminations	(1,292)	(959)	(2,387)	(1,853)
Consolidated revenues	$ 1,232,927	$ 1,415,060	$ 2,083,543	$ 2,425,791


	Adjusted EBITDA
	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
North American Realty	$ 34,122	$ 39,899	$ 55,325	$ 68,670
International Realty	(3,782)	(3,014)	(7,458)	(4,970)
Virbela	(1,196)	(2,715)	(2,492)	(5,487)
Other Affiliated Services	(1,168)	(747)	(1,849)	(1,576)
Corporate expenses and other	(3,247)	(6,509)	(5,470)	(12,010)
Consolidated Adjusted EBITDA	$ 24,729	$ 26,914	$ 38,056	$ 44,627

Operating Profit Reconciliation:
Depreciation and amortization expense	2,779	2,429	5,358	4,387
Stock compensation expense	8,488	9,230	18,148	17,028
Stock option expense	2,365	3,606	5,126	7,121
Consolidated operating profit	$ 11,097	$ 11,649	$ 9,424	$ 16,091


	Goodwill
	June 30, 2023	December 31, 2022
North American Realty	$ 16,917	$ 16,577
International Realty	-	-
Virbela	8,248	8,248
Other Affiliated Services	2,387	2,387
Segment total	27,552	27,212
Corporate and other	-	-
Consolidated total	$ 27,552	$ 27,212


	Three Months Ended	% of	Three Months Ended	% of	Change 2023 vs. 2022
	June 30, 2023	Revenue	June 30, 2022	Revenue	$	%

	(In thousands, except share amounts and per share data)
Statement of Operations Data:
Revenues	$ 1,232,927	100%	$ 1,415,060	100%	($ 182,133)	(13)%
Operating expenses
Commissions and other agent-related costs	1,136,411	92%	1,307,810	92%	(171,399)	(13)%
General and administrative expenses	82,541	7%	91,391	6%	(8,850)	(10)%
Sales and marketing expenses	2,878	-%	4,210	-%	(1,332)	(32)%
Total operating expenses	1,221,830	99%	1,403,411	99%	(181,581)	(13)%
Operating income	11,097	1%	11,649	1%	(552)	(5)%
Other (income) expense
Other (income) expense, net	(1,299)	-%	62	-%	(1,361)	(2,195)%
Equity in losses of unconsolidated affiliates	143	-%	567	-%	(424)	(75)%
Other (income) expense, net	(1,156)	-%	629	-%	(1,785)	(284)%
Income before income tax expense	12,253	1%	11,020	1%	1,233	11%
Income tax expense	2,831	-%	1,661	-%	1,170	70%
Net income	9,422	1%	9,359	1%	63	1%
Add back: Net loss attributable to noncontrolling interest	-	-%	-	-%	-	-%
Net income attributable to eXp World Holdings, Inc.	9,422	1%	9,359	1%	63	1%
Adjusted EBITDA⁽¹⁾	$ 24,729	2%	$ 26,914	2%	($ 2,185)	(8)%
Earnings per share
Basic	$ 0.06		$ 0.06		($ 0.00)	-%
Diluted	$ 0.06		$ 0.06		$ 0.00	-%
Weighted average shares outstanding
Basic	153,249,120		150,783,418
Diluted	156,693,959		155,816,038


	Six Months Ended	% of	Six Months Ended	% of	Change 2023 vs. 2022
	June 30, 2023	Revenue	June 30, 2022	Revenue	$	%

	(In thousands, except share amounts and per share data)
Statement of Operations Data:
Revenues	$ 2,083,543	100%	$ 2,425,791	100%	($ 342,248)	(14)%
Operating expenses
Commissions and other agent-related costs	1,913,970	92%	2,235,077	92%	(321,107)	(14)%
General and administrative expenses	154,308	7%	166,713	7%	(12,405)	(7)%
Sales and marketing expenses	5,841	-%	7,910	-%	(2,069)	(26)%
Total operating expenses	2,074,119	100%	2,409,700	99%	(335,581)	(14)%
Operating income	9,424	-%	16,091	1%	(6,667)	(41)%
Other (income) expense
Other (income) expense, net	(2,179)	-%	472	-%	(2,651)	(562)%
Equity in losses of unconsolidated affiliates	485	-%	884	-%	(399)	(45)%
Total other (income) expense, net	(1,694)	-%	1,356	-%	(3,050)	(225)%
Income before income tax expense	11,118	1%	14,735	1%	(3,617)	(25)%
Income tax (benefit) expense	243	-%	(3,488)	-%	3,731	107%
Net income	10,875	1%	18,223	1%	(7,348)	(40)%
Add back: Net loss attributable to noncontrolling interest	-	-%	18	-%	(18)	(100)%
Net income attributable to eXp World Holdings, Inc.	10,875	1%	18,241	1%	(7,366)	(40)%
Adjusted EBITDA⁽¹⁾	$ 38,056	2%	$ 44,627	2%	($ 6,571)	(15)%
Earnings per share
Basic	$ 0.07		$ 0.12		($ 0.05)	(42)%
Diluted	$ 0.07		$ 0.12		($ 0.05)	(42)%
Weighted average shares outstanding
Basic	152,899,883		150,049,170
Diluted	156,119,627		156,579,590


	Six Months Ended June 30,
	2023	2022
OPERATING ACTIVITIES
Net income	$ 10,875	$ 18,223
Reconciliation of net income to net cash provided by operating activities:
Depreciation expense	4,163	3,570
Amortization expense - intangible assets	1,195	817
Loss on dissolution of consolidated affiliates	-	361
Allowance for credit losses on receivables/bad debt on receivables	(2,470)	608
Equity in loss of unconsolidated affiliates	485	884
Agent growth incentive stock compensation expense	18,148	17,028
Stock option compensation	5,126	7,121
Agent equity stock compensation expense	65,652	86,835
Deferred income taxes, net	3,370	(6,892)
Changes in operating assets and liabilities:
Accounts receivable	(45,266)	(22,269)
Prepaids and other assets	367	2,236
Customer deposits	50,854	25,893
Accounts payable	(3,069)	(1,152)
Accrued expenses	49,273	31,961
Long term payable	(4,692)	-
Other operating activities	157	74
NET CASH PROVIDED BY OPERATING ACTIVITIES	154,168	165,298
INVESTING ACTIVITIES
Purchases of property, plant, equipment	(3,433)	(8,077)
Investments in unconsolidated affiliates	(5,350)	-
Capitalized software development costs in intangible assets	(1,179)	-
NET CASH USED IN INVESTING ACTIVITIES	(9,962)	(8,077)
FINANCING ACTIVITIES
Repurchase of common stock	(78,728)	(79,820)
Proceeds from exercise of options	1,253	780
Transactions with noncontrolling interests	-	(425)
Dividends declared and paid	(13,460)	(11,744)
NET CASH USED IN FINANCING ACTIVITIES	(90,935)	(91,209)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash	620	(1,141)
Net change in cash, cash equivalents and restricted cash	53,891	64,871
Cash, cash equivalents and restricted cash, beginning balance	159,383	175,910
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE	$ 213,274	$ 240,781
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:


	Three Months Ended June 30,		Six Months Ended June 30,
	2023	2022	2023	2022
Common stock:
Balance, beginning of quarter	174,532,043	158,300,605	171,656,030	155,516,284
Shares issued for stock options exercised	79,599	639,861	192,807	1,363,055
Agent growth incentive stock compensation	730,003	403,652	1,386,439	914,324
Agent equity stock compensation	2,558,438	3,942,452	4,664,807	5,492,907
Balance, end of quarter	177,900,083	163,286,570	177,900,083	163,286,570


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
4/1/2023-4/30/2023	834,013	11.97	834,013	$ 51,518,055
5/1/2023-5/31/2023	1,214,158	$ 13.88	1,214,158	34,523,738
6/1/2023-6/30/2023	1,174,104	18.87	1,174,104	512,527,244
Total	3,222,275	$ 14.91	3,222,275


Exhibit	Exhibit			Incorporated by Reference
Number	Description	Form	Exhibit	Filing Date/Period End Date
3.1	Amended and Restated Certificate of Incorporation	NA	NA	NA

3.2	Amended and Restated Bylaws	NA	NA	NA

4.1	Description of Securities	10-K	4.1	2/28/2023

10.1	Fourth Amendment to eXp World Holdings, Inc. Stock Repurchase Plan	8-K	10.1	5/12/2023

10.2	Fourth Amendment to eXp World Holdings, Inc. Stock Repurchase Program	8-K	NA	5/22/2023

10.3	Fifth Amendment to eXp World Holdings, Inc. Stock Repurchase Plan	8-K	10.1	6/26/2023

13.1	Annual Report on Form 10-K	10-K	NA	2/28/2023

31.1*	Certification of the Chief Executive Officer pursuant to Rule 13a 14(a) under the Securities Exchange Act of 1934

31.2*	Certification of the Chief Financial Officer pursuant to Rule 13a 14(a) under the Securities Exchange Act of 1934

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, 2023		eXp World Holdings, Inc.
		(Registrant)

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


Date:	August 3, 2023

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


Date:	August 3, 2023

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

February 25, 2021
Date:	August 3, 2023

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