In a strategic move, eXp World Holdings (NASDAQ:EXPI), Inc. (market cap: $2.08 billion) has completed the sale of key assets from its Virbela software platform to Virbela LLC, according to a filing with the Securities and Exchange Commission. InvestingPro analysis shows the company maintains a strong financial health score of GOOD, with robust cash management practices.
The transaction took place on November 29, 2024, with the assets including intellectual property being transferred to a company owned by eXp's former Co-Founder and President Alex Howland and Co-Founder and Vice President, Engineering, Erik Hill.
In a separate but related event, on Thursday, eXp's Board of Directors approved a Ninth Amendment to the company's stock repurchase plan, which adjusts the monthly repurchase amounts through the end of 2025. This aligns with one of the key InvestingPro insights that management has been aggressively buying back shares, while maintaining significant free cash flow of $204.84 million.
In other recent news, eXp World Holdings has reported a slight growth in revenue to $1.231 billion in Q3 2024, a 2% year-over-year increase. The company's adjusted EBITDA also rose by 15%, reaching $23.9 million. Despite facing a challenging U.S. real estate market, the company experienced a significant 63% growth in its international sector's revenue and is set to expand into Turkey, Peru, and Egypt in early 2025. However, an $18 million contingency provision for an ongoing antitrust lawsuit resulted in a GAAP net loss of $8.5 million for the company.
eXp World Holdings also launched homehunter.global and acquired LUXVT to enhance its luxury market offerings. Despite U.S. market challenges, improvements in agent productivity and higher home sales prices contributed to the company's revenue growth. However, the company does anticipate continued pressure on U.S. home sales in Q4, aligning with seasonal trends.
The company's agent count decreased by 4%, reflecting strategic offboarding of unproductive agents. Despite this and the ongoing legal challenges, eXp World Holdings remains optimistic about future growth opportunities in the real estate market.
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