eXp Realty Stats: Revenue, Transactions, & Growth (2022)
eXp World Holdings owns and operates a cloud-based real estate brokerage and technology platform that powers several businesses, including eXp Realty.
Founded in 2009, eXp Realty is different from traditional brokerages as its cloud-based concept empowers agents to work remotely rather than having brick-and-mortar offices. It also allows agents to earn equity awards for meeting production goals and contributing to company growth.
From revenue to growth, let's will take a deeper look at eXp's performance:
- eXp Revenue
- eXp Expenses
- eXp Net Profit
- eXp Market Share
- eXp Realty Ranking
- How Many Transactions Does eXp Do?
- eXp Realty Fees & Commissions
- What is eXp’s Business Model?
- How Many People Work at eXp?
Key eXp Stats
- eXp has more than 71,000 agents in the U.S., Canada, United Kingdom, Australia, South Africa, India, Mexico, Portugal, and more as they continue to expand internationally.
- In 2021 eXp agents represented buyers or sellers in over 440,000 real estate transactions.
- eXp is one of the fastest-growing companies in real estate, increasing its revenue from $156 million in 2017 to $3.8 billion in 2021, a 24x increase.
Currently, eXp World Holdings generates almost all its revenue from its eXp Realty business unit. The company believes there is strong potential for future revenue and profit opportunities from its other businesses.
As mentioned, eXp's revenue comes mostly from licensed brokerage activity: real estate transactions from which it earns commissions. The company splits earned commissions with its agents and brokers.
In 2021, eXp generated $3.7 billion in revenue, up 2.05x from $1.8 billion in 2020.
Here is a table of eXp's revenue growth since 2017:
eXp’s total operating expenses amounted to $3.7 billion in 2021. eXp's expenses primarily consist of commissions and other agent-related costs, sales marketing, and general & administrative expenses.
Here is the breakout of total operating expenses since 2017:
|Year||Total Operating Expenses|
eXp Commissions & Agent Related Expenses
Around 92% of eXp's total expenses are commissions and other agent-related costs, amounting to nearly $3.5 billion in 2021. In 2021, commission and agent-related costs saw a year-over-year increase of 2.12x from 2020. Although these expenses more than doubled, they are directly related to the rise in revenue as commissions increase when eXp agents represent more customers who buy and sell homes.
Here is a detailed look at the company's commission and agent-related expenses:
|Year||Commissions & Agent Expenses|
eXp Sales & Marketing Expenses
eXp’s sales and marketing expenses amounted to $122 million in 2021, up 2.3x from 2020. This made up approximately 3.5% of total expenses at the company.
Here is a summary of sales and marketing expenses since 2017:
|Year||Sales & Marketing Expenses|
eXp General & Administrative Expenses
eXp’s general and administrative expenses amounted to $250 million in 2021, up 2x from $123 million in 2020. General and administrative expenses made up nearly 6.7% of total expenses at the company.
Here is a table showing G&A expenses over time:
|Year||General & Administrative Expenses|
eXp Net Profit
eXp became a profitable company in 2020, earning a net income of $30.9 million. In 2021 the company increased its net income to $81.1 million, a year-over-year increase of 2.6x.
Here is net income and losses by year:
|Year||Net Income (Loss)|
eXp Market Share
eXp agents represented buyers or sellers in 2.9% of U.S. residential transactions in 2021, up from 2.1% in 2020.
In 2021 eXp was the top mover in the industry in terms of transaction side percentage. The company went from 238,981 U.S. transaction sides in 2020 to 355,627 in 2021, an increase of 49%.
Here is eXp's increased market share, by year, since 2017:
eXp Realty Ranking
In 2021 eXp was the third-largest brokerage by closed transaction sides in the United States. At 355,627 sides, they finished behind Home Services of America with 388,098 sides and Realogy with 376,892.
Here is a table of eXp's ranking among real estate companies, by transactions, in the United States:
|Company||Transaction Sides (U.S.)|
|Home Svcs. of Amer.||388,098|
How Many Transactions Does eXp Do?
eXp agents serve customers by helping them buy and sell homes. Therefore, transactions are a great metric to determine the company performs.
Over the past 5 years, eXp has experienced rapid growth, increasing worldwide transactions from 25,299 in 2017 to 444,367 in 2021, a 17.6x increase.
Here is a table of transactions by year:
|Year||eXp Worldwide Transactions|
eXp Realty Fees & Commission Splits
Agents at eXp receive an 80/20 commission split with a cap of $16,000 on annual gross commissions paid to the company. In other words, agents pay $16,000 of their first $80,000 earned in commission, then receive 100 percent of their commissions afterward minus a capped transaction fee.
Compared to other brokerages, eXp's commission split and agent cap is quite generous. Because eXp earns less from agent commissions, it is worth considering that they may not be able to provide the same level of resources for agents like training or support. It may be more difficult for new agents to succeed at eXp compared to a traditional brokerage; however, experienced agents with an extensive book of business may enjoy a higher revenue split than competing brokerages.
When joining eXp Realty, agents pay a $149 Startup Fee and an $85 monthly fee to cover essential items like education materials and lead generation tools. In addition, after reaching the $16,000 commission cap, agents pay a flat $250 transaction fee for the next 20 transactions and then $75 after that. Each transaction is also subject to a $25 broker review fee and a $40 risk management fee.
What is eXp’s Business Model?
eXp is a brokerage that adheres to a traditional agent-centric model, like Compass; in exchange for a favorable commission split, its realtors are responsible for marketing expenses and generating their own deals (through lead generation, sphere of influence, etc.) Unlike Redfin, which keeps leads in-house or Zillow, which sells its leads, eXp does not generate substantial website traffic or pass internal leads to its agents. Also, the company does not franchise like Anywhere (formerly Realogy).
Not only does eXp deploy an aggressive commission strategy to attract new agents to the brokerage, but it also provides incentives through its revenue sharing program for existing agents to recruit new agents. This strategy has fueled the company's rapid growth in the number of agents, as discussed in the section below.
eXp’s Revenue Sharing Program
When an agent at eXp brings another agent to the brokerage, they earn 3.5% of the new agent's gross commission until they hit the commission cap of $16,000 in any given year. The revenue sharing continues as long as both agents work for the company. In addition, when recruited agents go on to recruit new agents, the agents who recruited the first agents also earn small commissions on the agents below them.
Is eXp Realty a Multi-level Marketing Company?
First and foremost, eXp is a real estate brokerage helping consumers buy and sell homes on the open market, so it’s not exactly the same as a multi-level marketing company (MLM) that sells branded products. However, the comparison comes up because eXp’s revenue-sharing program is similar to that of MLM companies.
This recruiting model allows eXp to significantly reduce its marketing expenses to bring in new agents and retain existing ones.
How Many People Work at eXp?
1,669 full-time (non-agent) employees work at eXp, an 85% year-over-year increase from 900 employees in 2020.
Here is a breakout of employee growth:
How Many Agents Work at eXp?
Sales agents make up most of the company's headcount, totaling over 71,000 in 2021. The number of agents that work at eXp is a crucial metric for the growth of the business. From 2017 to 2021, the number of agents has increased by nearly 11x.
Here’s a look at how eXp’s agent count has increased over time:
|Year||eXp Agent Count|
That’s all for my list of eXp stats as of 2022.
It's clear that eXp is an innovative and fast-growing company in the real estate space, and it will be interesting to follow its journey over the coming years.
I’m curious to hear what you have to think. Will eXp continue its rapid growth? Will the company remain profitable in the coming years?
Leave your comments below!