Q2 2024 eXp World Holdings Inc Earnings Call

Denise Garcia: Hello, everyone, and welcome to the eXp World Holdings second quarter 2024 earnings fireside chat via live stream and our metaverse on the web frame. My name is Denise Garcia, and I manage investor relations for eXp World Holdings. Today, we will begin our earnings fireside chat with prepared remarks from Glenn Sanford, founder, chairman, and CEO of eXp World Holdings, and Leo Pareja, CEO of eXp Realty, followed by a review of the second quarter 2024 financial highlights presented by Kent Cheng, principal financial officer and chief accounting officer of eXp World Holdings.

Holdings second quarter 2024 earnings Fireside chat via live stream and our meta versus on the web frame.

Denise Garcia: My name is Denise Garcia, and I manage investor relations for eXp World Holdings.

Denise Garcia: My name is Denise Garcia and I manage Investor Relations for E X P. World Holdings today, we will begin our earnings Fireside chat with prepared remarks from Glen Sanford founder Chairman and CEO of E X P World, holding and Liao Korea C E O.

Denise Garcia: Today, we will begin our Earning Spireside Chat, with prepared remarks from Glenn Sanford, founder, chairman, and CEO of eXp World Holdings, and Leo Pareja, CEO of eXp Realty, followed by a review of the second quarter 2024 financial highlights presented by Kent Cheng, principal financial officer, and chief accounting officer of eXp World Holdings. Following our prepared remarks, we will open the call to a Q&A session with eXp World Holdings, covering analysts and questions submitted to eXp in advance.

Speaker Change: <unk> E X P Realty, followed by a review of the second quarter 2024 financial highlights presented by Kent Cheng Principal financial Officer, and Chief Accounting Officer of E X P World Holdings. Following our prepared remarks, we will open the call to a Q&A session with E X P Rural holdings, covering analysts and questions submitted to XP in advance.

Denise Garcia: Following our prepared remarks, we will open the call to a Q&A session with eXp World Holdings covering analysts and questions submitted to eXp in advance. Let's begin with a review of the forward-looking statement. There will be a number of forward-looking statements made today that should be considered in conjunction with the cautionary statements contained in the company's SEC filings. Forward-looking statements are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements.

Denise Garcia: Let's begin with the review of the forward-looking statements. There will be a number of forward-looking statements made today that should be considered in conjunction with the cautionary statements contained in the company's SEC filings. Forward-looking statements are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. Please see our filings with the SEC, including our most recently filed annual report on Form 10-K and quarterly reports on Form 10-Q for a discussion of specific risks that may affect our business, performance, and financial condition. We assume no obligation to update or revise any forward-looking statements or information.

Speaker Change: Let's begin with a review of the forward looking statements.

Speaker Change: There'll be a number of forward looking statements made today that should be considered in conjunction with the cautionary statements contained in the company's SEC filings forward looking statements are subject to various risks and uncertainties that could cause our actual results to differ materially from these statements. Please see our filings with the SEC, including our most.

Denise Garcia: Please see our filings with the SEC, including our most recently filed annual report on Form 10-K and quarterly reports on Form 10-Q for a discussion of specific risks that may affect our business, performance, and financial condition. We assume no obligation to update or revise any forward-looking statements or information.

Speaker Change: Recently filed annual report on Form 10-K, and quarterly reports on Form 10-Q for a discussion of specific risks that may affect our business performance and financial condition.

Speaker Change: We assume no obligation to update or revise any forward looking statements or information.

Denise Garcia: As a reminder, today's call is being recorded, and a replay will also be available on eXpWorldHoldings.com. Now, for a few logistics, and we'll get started. For those of you joining in frame today, welcome to our Metaverse on the web. To zoom into a specific screen, you can click on that screen and then click zoom in. If the content on that screen disappears, or if you lose audio, simply refresh your page while in frame.

Denise Garcia: As a reminder, today's call is being recorded, and a replay will also be available on expworldholdings.com.

Speaker Change: As a reminder, today's call is being recorded and a replay will also be available on E X P World Holdings' Dot com now for a few logistics and we'll get started.

Denise Garcia: Now, for a few logistics, and we'll get started. For those of you joining in frame today, welcome to our metaverse on the web. To zoom into a specific screen, you can click on that screen and then click Zoom In. If the content on that screen disappears, or if you lose audio, simply refresh your page. While in frame, if you need help, just use the help button on the bottom right to link with tech support. Should you wish to ask a question during our presentation? You can enter your questions by scanning the QR code presented on this screen with your mobile phone or go to splido.com and type in the event expi.

Denise Garcia: If you need help, just use the help button on the bottom right to link with tech support. Should you wish to ask a question during our presentation, You can enter your questions by scanning the QR code presented on this screen with your mobile phone or going to slido.com and typing in the event eXpi. From there, you can submit a question or vote up an existing question by giving a thumbs up. If you'd also like another question asked, this screen will remain up on the right-hand side of the stage throughout our presentation. Now, I'll turn the fireside chat over to our speakers before opening the call to questions. Glenn, you may begin.

Speaker Change: For those of you joining and frame today welcome to our met averse on the web to zoom into a specific screen you can click on that screen and then click zoom in if the content on that screen disappears or if you lose audio simply refresh your page wilen frame. If you need help just use the help button on the bottom right. So banquet tech support.

Speaker Change: Should you wish to ask a question.

Speaker Change: During our presentation.

Speaker Change: Yeah.

Speaker Change: You can enter your questions by scanning a QR code presented on this screen.

Speaker Change: With your mobile phone or go to slight our dot com and tighten the event E X P. I from there you can submit a question or vote up an existing question by giving a thumbs up.

Denise Garcia: From there, you can submit a question or vote up an existing question by giving a thumbs up if you'd also like another question asked. This screen will remain up on the right-hand side of the stage throughout our presentation.

Speaker Change: If you'd also like another question asked this grant will remain up on on the right hand side of the staged throughout our presentation.

Denise Garcia: Now, I'll turn the fireside chat over to our speakers before opening the call to questions.

Speaker Change: Now I'll turn the fireside chat over to our speakers before opening the call to questions.

Glenn Sanford: Glenn, you may begin. Thanks, Denise, and thanks everyone for attending this Q2 earnings call. Obviously, what we're doing here is really iterating on the agent value proposition. That's what we talk about all the time at expi. We've got a unique overall platform that focuses on personal development, hoping agents sell more property. Obviously, we have Success magazine, which is tied into that personal development side of the business. Then we've got companies like Frame, which is obviously the metaverse that we're in now. All of this is really designed to help us as a brokerage scale around the world.

Glenn you may begin.

Glenn Darrel Sanford: Thanks, Denise. And thanks, everyone, for attending this Q2 earnings call. Obviously, what we're doing here is really iterating on the agent value proposition. That's what we talk about all the time at eXp.

Glenn: Thanks, Denise and thanks, everyone for attending this Q2 earnings call.

Glenn Darrel Sanford: And really, you know, we've got a unique overall platform that focuses on personal development, helping agents sell more property. Obviously, we have Success Magazine, which is tied into that personal development side of the business. And then we've got companies like Frame, which is obviously the metaverse that we're in now.

Glenn: Obviously, what we're doing here is really iterating on the agent value proposition is such where we talked about all the time at DXP.

Speaker Change: DXP.

Speaker Change: And really we've got a unique overall platform that focuses on personal development.

Speaker Change: Youre, hoping agents sell more property.

Glenn Darrel Sanford: But all of this is really designed to help us as a brokerage scale around the world. You'll notice, like on the next slide, and you'll in Q2, our NPS, our agent net promoter score actually increased from 72 to 76, which is world class, to say the least. And this really reflects our investments in services, faster payments. We've got platforms like Revenos, our global referral network that's actually starting to take shape, and how we're approaching international, which I'm actually more involved in now, for obvious reasons. Some of you may know about some of the changes there.

Speaker Change: Obviously, we have success magazine, which is tied into about personal development side of the business.

Speaker Change: And then we've got you know companies like frame, which was obvious from the members that were in now.

Speaker Change: All of this is really designed to help us as a brokerage scale.

Speaker Change: Around the world.

Glenn Sanford: You'll notice, like in the next slide, in Q2, our NPS, our agent, Net Promoter Score, actually increased from 72 to 76, which is world class, to say the least. And this really reflects our investments in services, faster payments. We've got platforms like Rebinoes, our global referral network that's actually starting to take shape, how we're approaching international, which I'm actually more involved in now for obvious reasons. Some of you may know about some of the changes that they're there, but are you know, we're really focused on, you know, what, how do we improve the agent value proposition?

Speaker Change: Youll notice like in the next slide on <unk>.

Speaker Change: Q2.

Speaker Change: Our our NPS our agents net promoter score actually increased from 72 to 76, which is world class to say the least.

Speaker Change: And this really reflects our investments in services faster payments.

Speaker Change: We've got platforms like revenues.

Speaker Change: Our global referral network, that's actually starting to take shape by how we're approaching international which I'm actually more bolt in.

Speaker Change: Now.

Speaker Change: For obvious reasons. Some of you may know about some of the changes there.

Glenn Darrel Sanford: But we're really focused on how we improve the agent value proposition because we do know that NPS is a leading indicator for both our future growth and retention, which ultimately translates to the long-term financial viability of the company. You know, real estate sales transactions increased by 1%, and revenue grew by 5%.

Speaker Change: But we're really focused on what how do we improve the agent value proposition because we do know that NPS is a leading indicator.

Glenn Sanford: Because we do know that NPS is a leading indicator for both our future growth, retention, and retention, which ultimately translates to sort of the long-term financial viability of the company. You know, real estate sales, transaction increased by 1% revenue, grew by 5%, and really that was driven by a 6% increase in our overall agent productivity, which is pretty amazing to see our agents producing more in a difficult market. You know, we have productivity gains from providing more tools and incentives to highly productive agents. I know Leo's going to talk a little bit about, or maybe I think he's going to talk a little bit about Fast Start, but Fast Start is a really cool program relative to our Revenue Share 2.0 program.

Speaker Change: For both our future growth retention and retention, which ultimately translates to sort of a long term financial viability of the company.

Glenn Darrel Sanford: And really, that was driven by a 6% increase in our overall agent productivity, which is pretty amazing to see our agents producing more in a difficult market. You know, we had productivity gains from providing more tools and incentives to highly productive agents. I know Leo is going to talk a little bit about, or maybe I think he's going to talk a little bit about fast start, but fast start is a really cool program relative to our revenue share 2.0 program.

Speaker Change: Your real estate sales transactions increased by 1% revenue grew by 5% and really that was driven by a 6% increase and our overall agent productivity, which is pretty amazing to see our agents producing more in a difficult market.

Speaker Change: We are.

Speaker Change: Productivity gains from providing more tools and incentives.

OBO: Two highly productive agents and OBO is going to talk a little bit about <unk>.

OBO: I think he's going to talk a little bit about fast start with fast start to really cool program relative to our revenue share 2.0 program. That's.

Glenn Darrel Sanford: That's again, geared toward attracting productive agents and helping agents during their first year really, you know, outperform maybe where they would normally because they've got more encouragement from their upline and some other things that go along with that. But we're really positioned to capture growth around the world. Internationally, you know, revenues jumped by 69% year over year. There was strong performance in both sales, volume, and productivity. Your agent count really didn't change a whole bunch overall, but that's because a lot of our agents that were in international in the sort of initial launch into international were non-productive.

Glenn Sanford: That's again, geared toward attracting productive agents and helping agents during their first year really, you know, out produce maybe where they would have normally, because they've got more encouragement from their appliance and other things that go on with that. But we're really positioned to capture growth around the world. Internationally, you know, revenues jumped by 69% year over year. There was strong performance in both, you know, sales, volume, productivity. You know, our agent cap really didn't change a whole bunch overall, but that's because a lot of agents that were in international in the sort of initial launch into international were non-productive.

OBO: Again geared toward attracting <unk>.

OBO: Productive agents and and helping our agents during their first year really.

OBO: Our produce maybe where they would have normally bob because they've got more encouragement from their offline and some other things that go along with that.

OBO: But we're really positioned to capture.

OBO: Growth around the world internationally.

OBO: Revenues.

OBO: Jumped by 69% year over year.

OBO: There was strong performance in both sales volume productivity.

OBO: Our agent count really didn't change a whole bunch overall, but thats because a lot of our agents that were.

OBO: In international in the sort of initial launch into international.

Glenn Sanford: We actually changed it to, you know, looking at agents who have two years or more experience are the ones that we're actually bringing over to EXP now. And that's really changed your trajectory internationally. You'll obviously notice that our losses are reduced over previous timeframes, but really it's an untapped opportunity when we look at the fact that there's likely somewhere around, as hard to track the stats, but there's likely around 20 million plus real estate professionals in the markets that we want to compete in over time. So if we really think about that as our target market and we get to a similar size that we are in the US, that's almost a million agents worldwide that could eventually be on the EXP platform.

OBO: We're nonproductive, we actually changed it to you.

OBO: Looking at agency web two years or more.

OBO: <unk>.

OBO: Are the ones that we're actually bringing over to DXP now and Thats really changed your trajectory internationally.

Speaker Change: Obviously noticed that.

Speaker Change: Our losses are reduced.

Speaker Change: Over previous.

Speaker Change: Timeframes, but.

Speaker Change: But really it's an untapped opportunity when we look at the fact that.

Speaker Change: So there is likely somewhere around it's hard to track to SaaS, but theres likely around $20 million plus real estate professionals in the markets that we want to compete in over time.

Glenn Darrel Sanford: It's hard to track the stats, but there are likely around 20 million plus real estate professionals in the markets that we want to compete in over time. And so if we really think about that as our target market, and we get to a similar size that we are in the U.S., that's almost a million agents worldwide that could eventually be on the eXp platform. But, as I've mentioned in previous calls, this is really important to me.

Speaker Change: So if we really think about that is our target market and we get to a similar size that we are in the U S. That's almost a million agents worldwide that could eventually be on the DXP platform. So we're really excited about that long term.

Glenn Sanford: So we're really excited about that long-term, you know, we'll just say 10-year vision of where we're going.

Speaker Change: We'll just say 10 year vision.

Speaker Change: Where we're going.

Glenn Sanford: And actually, even more recently, I'm actually working directly with the international team, bringing a lot of the startup culture into international personally, and working with various team leaders, country leaders, and our existing amazing team that we've got growing international. But, as I've mentioned in previous calls, this is really important to me. And, you know, between going to Lisbon in June for our first EXP con internationally, to take another trip there in September to work with some of our international team in September, October. We're taking a lot more hands-on approach to international growth. We also launched, just so you know, Elevate Coaching, which is really an extension of our EXP University and mentor programs, and we've launched that also.

Speaker Change: <unk>.

Speaker Change: Actually even more recently.

Speaker Change: I'm actually working directly with the international team, bringing a lot of the startup culture.

Speaker Change: Into international personally.

Speaker Change: And working with various team leaders.

Speaker Change: Leaders are existing amid.

Speaker Change: Amazing team that we've got growing international but as I've mentioned in previous calls. This is really important to me and between going to Lisbon in June for our first DXP con internationally.

Glenn Darrel Sanford: And, you know, between going to Lisbon in June for our first eXpCon international and taking another trip there in September to work with some of our international team in September, October, we're taking a lot more hands-on approach to international growth. We also launched, just so you know, Elevate Coaching, which is really an extension of our eXp university and mentor programs. And we've launched that also. And then we, the global agent referral platform, it's amazing how we're able to, because of our size, be able to share both consumers that are looking to buy or sell real estate and also share properties on an international basis, especially when you get to that luxury market, where the international luxury buyer could be looking at multiple countries around the world for opportunities.

Speaker Change: Two.

Speaker Change: Another trip there in September to work with some of our international team in September October.

Speaker Change: We're taking a lot more hands on approach to international growth.

Speaker Change: We also launched just elevate.

Speaker Change: Elevate coaching.

Speaker Change: Which was really extension of our DXP University and mentor programs and.

Speaker Change: And we've launched that also.

Glenn Sanford: And then we did the global agent referral platform. It is amazing how we're able to, because of our size, share both consumers, they're looking to buy or sell real estate, and also share properties on an international basis, especially when you get at that luxury market where the international luxury buyer could be looking at multiple countries around the world for opportunity. So really a lot of unique stuff that's going on around that.

Speaker Change: And then the.

Speaker Change: Global agent referral platform.

Speaker Change: As.

Speaker Change: Amazing, how we're able to because of our size be able to share both.

Glenn Darrel Sanford: So really, a lot of unique stuff that's going on around that. And then, with that, let me go ahead and turn it over to Leo, who will walk you through some of the second quarter highlights in North America.

Speaker Change: Consumers that are looking to buy or sell real estate and also sharing properties on an international basis, especially when you go to that luxury market, where the international luxury buyer could be looking at multiple countries around the world.

Speaker Change: For opportunities so really.

Speaker Change: A lot of unique stuff that's going on.

Speaker Change: Round that and then with that let me go ahead and turn it over to Leo who will walk you through.

Leo Pareja: And then, with that, let me go ahead and turn it over to Leo, who will walk you through some of the second quarter highlights in North America.

Speaker Change: Some of the second quarter highlights in North America.

Leo Pareja: Well, thanks, Glenn, and thanks for everyone for joining us today. I'll start off with our Q2 performance compared to the industry. Last week, we saw June home existing sales at a local for 2024 down more than 5% year over year month over month. This downward pressure for Q2 home sale transactions in the US, which worked down nearly 3.5% year over year, despite the industry being down nearly 3.5%, eXp Realty is only down 3%. Year-to-date, the industry's down slightly more than 3% over last year, while eXp is basically flat by being down less than 1%.

Leo Pareja: Thanks Glenn and thanks to everyone for joining us today. I'll start off with our Q2 performance compared to the industry. Last week, we saw June home existing sales at a low point for 2024, down more than 5% year-over-year, month-over-month. This downward pressure on Q2 home sale transactions in the US, which were down nearly 3.5% year-over-year.

Leo: Thanks, Glenn and thanks for everyone for joining us today I'll start off with our Q2 performance compared to the industry.

Speaker Change: Last week, we saw June home existing sales at a low point for 2024 down more than 5% year over year month over month. This downward pressure for Q2 home sale transactions in the U S, which were down nearly three 5% year over year, despite the industry being down nearly three 5% <unk> royalty is only down.

Leo Pareja: Despite the industry being down nearly 3.5%, eXp Realty is only down 3%. Year-to-date, the industry is down slightly more than 3% over last year, while eXp is basically flat by being down less than 1%. I truly believe that our market share gains are a reflection on the quality of agents and talent we're attracting to our company. Kendall Bonner joined eXp Realty as a VP of Industry Relations, and she has recently been named 2024 Housing Woman of Influence. Tonya Meen, TV host and real estate expert, has joined eXp during that quarter.

Leo: 3%.

Leo: Year to date, the industry is down slightly more than 3% over last year, while DXP is basically flat by being down less than 1%.

Leo: Okay.

Leo Pareja: I truly believe that our market share gains are a reflection on the quality of agents and talent we're attracting to our company. Kendall Bonner joined eXp Realty as a VP of Industry Relations who has recently been named 2024 Housing Woman of Influence. Tonya, mean TV host and real estate expert, has joined eXp during that quarter. And 44% of our agents made the list for the 2024 Real Trends and Tom Ferry 1000 awards, which has the five top 500 top agents and 500 top teams in the US by transaction and volume count.

Tanya: I truly believe that our market share gains are a reflection of the quality of agents and talent. We are attracting to our company tend to monitor joining DXP royalties, a VP of Investor Relations, who was recently named 2020 for housing woman of influence Tanya mean TV host in real estate expert has joined <unk> during that quarter.

Leo Pareja: And 44% of our agents made the list for the 2024 Realtrends and TomFerry 1000 Awards, which recognize the 500 top agents and 500 top teams in the U.S. by transaction and volume. We recognize that in order to maintain the highest quality agent base in the industry, we constantly have to iterate on our agent value proposition to remain the most agent-centric brokerage on the planet. During our last earnings call, we announced RevShare 2.0 in the first six days of the program.

Leo: 44% of our agents.

Leo: Made the list for the 2024 real trends and Tom Ferry Awards, which has the five top 500 top agents at 500 top teams in the U S by transaction and volume count.

Leo Pareja: We recognize that in order to maintain the highest quality agent base in the industry, we constantly have to iterate on our agent value proposition to remain the most agent-centric brokerage on the planet. During last earnings call, we announced Rebshare 2.0 in the first 60 days of the program. We paid out nearly $7 million in real time Rebshare. During Q2, we also launched our global referral program, which extends the reach of all of our agents to our additional 22 international markets so agents can find partners across the globe and across the ocean to expand their business.

Speaker Change: We recognize that in order to maintain the highest quality agent base in the industry, we constantly have to iterate on our agent value proposition to remain the most agent centric brokerage on the planet during last.

Leo: Earnings call, we not spreadsheet to point out in the first 60 days of the program, we paid out nearly $7 million in real time pressure.

Leo Pareja: We paid out nearly $7 million in real-time RevShare. During Q2, we also launched our global referral program, which extends the reach of all of our agents to our additional 22 international markets, so agents can find partners across the globe and across the ocean to expand their business. And more recently, we launched the FastStart Attraction Bonus Program on July 1st, which offers direct upline sponsorship of 50% payout on the revenue share pool on all qualifying Level 1 transactions for an agent joining their first-year EA. Some of the initiatives we started last year have really started to gain traction. Some of the ones I'm most excited about, I'll share with you.

Leo: During Q2, we also launched our global referral program, which extends the reach of all of our agents to our additional 22 international markets. So agents can find partners across the globe and across the ocean to expand their business and more recently, we launched fast start attraction bonus program July one which offers direct up lines.

Leo Pareja: And more recently, we launched the fast start attraction bonus program July 1st, which offers direct upline sponsorship of 50% payout on the revenue share pool on all qualifying level and transactions for an agent joining their first year eXp.

Leo: Sponsorship, a 50% payout on the revenue share pool on all qualifying level, one transactions for an agent joining their first year DXP.

Leo Pareja: Some of the initiatives we started last year have really started again traction. Some of the ones I'm most excited about, I'm sure about eXp Exclusives, which went live late last year, is starting to gain traction and really add a value proposition to our agents as we navigate this low inventory environment and this changing landscape. Express Offers, which we rebooted with a partnership with Open Door, led to over 2300 property submissions to Open Door alone in Q2. eXp Luxury is a platform that provides agents with tools and resources to increase their production, increase the number of agents by over 130% year over year.

Leo: Some of the initiatives. We started last year have really started to gain traction in some of the ones that I'm. Most excited about ill share about DXP exclusives, which went live late last year is starting to gain traction and really at a value proposition to our agents as we navigate this low inventory environment in this changing landscape.

Leo Pareja: eXp Exclusives, which went live late last year, is starting to gain traction and really add a value proposition to our agents as we navigate this low inventory environment and this changing landscape. Express Offers, which we rebooted with a partnership with Opendoor, led to over 2,300 property submissions to Opendoor alone in Q2, and eXpLuxury, our platform that provides agents with tools and resources to increase their production, increased the number of agents by over 130% year over year.

Leo: Express offers which we rebooted it with a partnership with open door led to over 2300 property submissions two opened her alone in Q2.

Leo: DXP luxury our platform that provides agents with tools and resources to increase our production increased the number of agents by over 130% year over year.

Leo Pareja: We're seeing higher adoption rates for training and education, which increased 120% per 7% in attendance. Year to date for 2024, compared to 2023 for the same time period. Pay now our real-time payment program we launched in order to pay folks faster, which is particularly important in these times where agents are closing fewer transactions is taking off like wildfire.

Leo Pareja: We're seeing higher adoption rates for training and education, which increased 127% in attendance year-to-date for 2024 compared to 2023 for the same time period. PayNow, our real-time payment program we launched in order to pay folks faster, which is particularly important in these times when agents are closing fewer transactions, is taking off like wildfire.

Leo: We're seeing higher adoption rates for training and education, which increased 124, 7% and attendance.

Leo: Year to date for 2024 compared to 2023 for the same time period.

Leo: Pay now our real time payment program, we launched.

Leo: In order to pay folks faster, which is particularly important in these times. Our agents are closing fewer transactions is taken off like wildfire, we're happy to see our agents take advantage of the kind of programs. We have created in order to help them lead more productive lives and make the other businesses run smoother.

Leo Pareja: We're happy to see our agents take advantage of the kind of programs we've created in order to help them lead more productive lives and make their businesses run smoother. We've discussed our significant opportunities to see agent productivity improvement by integrating AI technologies across our entire enterprise. We have an enterprise license with OpenAI that we're leveraging with ChatGPT to increase our staff productivity. Our staff sent more than 1 million messages in Q2, up 108% from Q1 of this year, by leveraging AI to become more productive internally. The Task Center has also aided in the completion of over 710,000 tasks of agents, invoices, and transaction documents across five different operational teams and 15 different role types year to date.

Leo Pareja: We're happy to see our agents take advantage of the kind of programs we've created in order to help them lead more productive lives and make their businesses run smoother.

Leo Pareja: We've discussed our significant opportunities to see an agent improvement productivity with integrating AI technologies across our entire enterprise. We have an enterprise license with OpenAI that we're leveraging with chat to UPT to increase our stack productivity. Our stack set more than one million messages in Q2, up 108% from Q1 of this year by leveraging AI to become more productive internally. The task center has also aided the completion of over 710,000 tasks of agents, invoices, and transaction documents across five different operational teams and 15 different role types year to date. We continue to leverage HubSpot technology to service agents, and we've closed over 1 million agent tickets worldwide in Q2.

Speaker Change: We've discussed our significant opportunities to CMA agent improvement productivity with integrating AI technologies across our entire enterprise, we have enterprise license with open AI that we're leveraging with chat GPT to increase our staff productivity are steps at more than 1 million messages in Q2 up 108% from Q1 of this year.

Leo: By leveraging AI to become more productive internally.

Leo: The cash center has also aided in the completion of over 710000 task of agents invoices and transaction documents across five different operational teams and 15 different role types year to date.

Leo Pareja: We continue to leverage HubSpot technology to service agents, and we closed over 1 million agent tickets worldwide in Q2. And most recently, we replaced Rebella with the web-based frame technology that we're all using right now to make it faster and easier for our staff and agents to collaborate online and has been wildly popular with more than 1.1 million visits in the first half of 2024. We're really excited to continue the integration of cutting-edge technology solutions into our platform.

Leo: We continue to leverage hubs spud technology to service agents and we've closed over 1 million agent tickets worldwide in Q2, and most recently, we replace for Birla with the web base frame technology that we're all using right now to make it faster and easier for our staff and agents to collaborate online and has been wildly popular with more than $1 1 million visits.

Leo Pareja: And most recently we replaced Revella with the web-based frame technology that we're all using right now to make it faster and easy for our staff and agents to collaborate online and has been wildly popular with more than 1.1 million visits in the first half of 2024.

Leo: In the first half of 2024.

Leo Pareja: We're really excited to continue the integration of cutting-edge technology solutions on our platform, the long-term opportunity AI could represent as we continue to seek operational efficiencies, which I'll discuss on the next slide. This quarter we reduced our SDNA expenses in North American Realty by 4 million over last year. At the same time, we reduced our cost per transaction in North America Realty by nearly 10% year over year and improved our operating efficiencies, increasing North American adjusted it by 13%.

Leo: We're really excited to continue the integration of cutting edge technology solutions on our platform. The long term opportunity AI could represent as we continue to seek operational officials efficiencies, which I'll discuss on the next slide.

Leo Pareja: The long-term opportunity AI could represent as we continue to seek operational efficiencies, which I'll discuss on the next slide. This quarter, we reduced our SG&A expenses in North American Realty by $4 million over last year. At the same time, we reduced our cost per transaction in North American Realty by nearly 10% year over year and improved our operating efficiencies, increasing North American Adjusted IFA by 13%.

Speaker Change: This quarter, we reduced our SG&A expenses in North American Realty by $4 million over last year at the same time, we reduced our cost per transaction in North America royalty by nearly 10% year over year and improved our operating efficiencies, increasing north American adjusted it but by 13%.

Leo Pareja: For an update on the real estate market, we have been providing as much education and tools through our regional rallies, virtual meetings, and as many places as we can communicate with our agents. Our buyer representation toolkit, which includes a buyer broker representation agreement that the CFA recently recognizes as much simpler, clearer, and pro-consumer than any other agreement that's been created recently, is something we've open-sourced so all agents in the industry have access to what's being considered the best-in-class documents in order to make this transition as smooth as possible, which will go into effect on August 17th.

Leo Pareja: For an update on the real estate market, we've been providing as much education and tools through our regional rallies, virtual meetings, and as many other places as we can to communicate with our agents. Our buyer representation toolkit, which includes a buyer-broker representation agreement that the CFA recently recognized as much simpler, clearer, and pro-consumer than any other agreement that's been created recently, is something we've open-sourced so all agents in the industry have access to what's being considered the best-in-class documents in order to make this transition as smooth as possible, which will go into effect on August 17th.

Speaker Change: For an update on the real estate market, we have been providing as much education and tools through our regional rallies virtual meetings and as many places as we can communicate with our agents our buyer representation toolkit, which includes a buyer broker representation agreement that the CFA recently recognized as much simpler clearer and <unk>.

Leo: More than any other agreement thats been created recently.

Leo: It's something we've open sourced so all agents in the industry have access to.

Leo: Whats being considered the best in class documents in order to make this transition as smooth as possible, which will go into effect on August 17th.

Leo Pareja: Many people have asked me how this will impact the number of agents can market in the process. First, buyers have the option not to have an agent represent them just like they did in the past, but most have chosen to hire an agent because the process is very time-consuming and complicated than most people understand prior to engaging with an agent. My opinion buyers will still choose representation and will continue to need expert guidance throughout their process. After August 17th, we'll likely experience an adjustment period, which I've been calling on several formats and stages, the messy middle, as both agents and consumers adjust to the new rules of interest.

Leo Pareja: Many people have asked me how this will impact the number of agents and the market and the process. First, buyers have the option not to have an agent represent them, just like they did in the past, but most have chosen to hire an agent because the process is very time-consuming and complicated than most people understand prior to engaging with an agent. In my opinion, buyers will still choose representation and will continue to need expert guidance throughout their transaction.

Speaker Change: Many people have asked me how this will impact the number of agents in market and the process first buyers have the option.

Speaker Change: Not have an agent represent them just like it did in the past, but most have chosen to hire an agent because the process is very time consuming and complicated.

Speaker Change: Yes.

Leo: Then most people understand prior to engaging with an agent my opinion buyers will still choose representation and we will continue to need expert guidance throughout their process.

Leo Pareja: After August 17th, we'll likely experience an adjustment period, which I've been calling the messy middle, as both agents and consumers adjust to the new rules of engagement. With that, I'll turn the call over to Kent, who will walk you through our financials, and we'll open the call up for questions.

Leo: After August 17th will likely experience, an adjustment period, which ive been calling on several formats.

Speaker Change: Stages, the messy middle as both agents and consumers adjust to the new rules of engagement.

Kent Cheng: With that, I'll turn the call over to Kent, who will walk you through our financials, and we'll open the call up for questions. Thank you, Leo. As we reveal our performance for the second quarter of 2024, I'm pleased to highlight several key matches that underscore our progress and strategic initiatives. That's far with our agent Net Promoter Score or an A and T s. This quarter, we achieved an A and T s of 76, which is a four-point improvement compared to the second quarter of last year. This increase is the direct result of our continued investment in operational support for our agent and the enhancement to our technology platform, the Leo and Grant Discover discussed earlier.

Kent: With that I'll turn the call over to Kent, who will walk you through our financials and we'll open the call up for questions.

Kent: Thank you Neil.

Kent Cheng: As we review our performance for the second quarter of 2024, I'm pleased to highlight several key matches that underscore our progress and strategic initiatives, such as that far with our agent Net Promoter School or an AMTS.

Kent: We review our performance for the second quarter of 2024.

Speaker Change: Pleased to highlight several key matches to underscore our progress and strategic initiatives.

Kent: Thus far with our age of net promoter score or NPS. This quarter, we achieved an <unk> of 76, which is a four point improvement compared with second quarter of last year.

Kent Cheng: This quarter, we achieved an AMPS of 76, which is a four-point improvement compared to the second quarter of last year. This increase is the direct result of our continued investment in operational support for our agents and the enhancement to our technology platform that Leo and Glenn discussed earlier. Moving on to our agent network,

Speaker Change: This increase is a direct result of our continued investment in operational support for our agents and enhancements to our technology platform and Neal and Glen to Chicago discussed earlier.

Kent Cheng: Moving on to our agent network, our agent can increase 2% sequentially from the first quarter to the second quarter. On a year-over-year basis, our Q2 agent can decline 1%. This referred both the challenging market condition and our strategic decision to all draw a significant number of unproductive agent in the US during our few quarters. This move is aligned with our focus on enhancing overall productivity and efficiency. Turning to our other operating matches, we will say sell transaction unit grow 1% year-over-year. This grow is not only a testament to our team's hardware, but also indicates that we are outperforming the industry and continue to gain market share in the US.

Kent Cheng: Our agent count increased 2% sequentially from the first quarter to the second quarter. On a year-over-year basis, our Q2 agent count declined 1%. This reflects both the challenging market conditions and our strategic decision to outlaw a significant number of unproductive agents in the US during the last few quarters.

Speaker Change: Moving on to our agent network.

Speaker Change: Agent Count increased 2% sequentially from the first quarter to the second quarter.

Speaker Change: On a year over year basis, our Q2 agent count declined 1%. This one for both the challenging market conditions and our strategic decision to onboard a significant number of unproductive agents in the U S. During the last few quarters.

Kent Cheng: This move is aligned with our focus on enhancing overall productivity and efficiency. Turning to our other operating unit, the Real estate sales transaction unit grew 1% year over year. This growth is not only a testament to our team's hard work but also indicates that we are outperforming the industry and continuing to gain market share in the US. Real estate costs per transaction decreased 8% as we began to leverage technology to eliminate time-consuming manual processes.

Speaker Change: This move is aligned with our focus on enhancing overall productivity and efficiency.

Speaker Change: Turning to our Ogden, our operating metrics.

Speaker Change: When you say sell transaction unit grew 1% year over year.

Speaker Change: This growth is not only a testament to our team's hard work I also indicated that we are outperforming the industry and continue to gain market share in the U S.

Kent Cheng: Reality costs per transaction decreased 8% as we began to leverage the knowledge to eliminate time-consuming manual processes. We believe we are among the most efficient companies in our industry and will remain focused on reducing our cost per transaction moving forward.

Speaker Change: <unk> cost per transaction decreased 8% as we begin to leverage technology to eliminate time consuming manual processes.

Speaker Change: We believe we are.

Speaker Change: Among the most efficient company in our industry.

Kent Cheng: We believe we are among the most efficient companies in our industry, and we remain focused on reducing our cost per transaction moving forward. Now, let me discuss our financials. I'm happy to report that our revenue for the second quarter was $1,295,000,000, a 5% increase year over year. Our Q2 revenue growth was due to higher real estate sales volume and an increase in agent productivity, which I will detail in my next blog post. Second quarter adjusted EBITDA was $32.8 million, up 22% year-over-year, driven by higher revenue and lower SG&A expenses relative to the prior year quarter.

Speaker Change: And we will remain focused on reducing our cost per transaction moving forward.

Kent Cheng: Now let me discuss our financial matches. I'm happy to report that our revenue for the second quarter was $1 billion, $295 million. A 5% increase year-over-year. Our Q2 revenue grow was still to higher real estate sales volume and an increase in agent productivity, which I will detail in my next slide. The second quarter adjusted the dollar was $32.8 million, up to 22% year-over-year. During our higher revenue and lower share net expenses, relative to the prior year quarter. Thanks to solid institution across the company, I'm pleased to report that our $20 million profit improvement plan remained on track.

Speaker Change: Now, let me discuss our financial metrics.

Speaker Change: I am happy to report that our revenue for the second quarter was $1 billion $295 million.

Speaker Change: A 5% increase year over year.

Speaker Change: Our Q2 revenue growth was due to higher real estate sales in volume and an increase in agent productivity, which I will detail in my next slide.

Speaker Change: Second quarter, adjusted EBITDA was $32 $9 million up 22% year over year, driven by higher revenue and lower SG&A expenses relative to the prior year quarter.

Kent Cheng: Thanks to solid execution across the company, I'm pleased to report that our $20 million profit improvement plan remains on track. Threw it down into our Q2 expenses, general and administrative expenses were $61.2 million, down 6% compared to the second quarter of 2003, primarily due to cost containment initiatives, partially offset by increased legal expenses related to the anti-trust laws.

Speaker Change: Through solid execution across the company I am pleased to report that our $20 million of profit improvement plan remains on track.

Kent Cheng: We went down into our Q2 expenses. General and administrative expenses were $61.2 million, down 6% compared to the second quarter of 2003. Primarily due to cost-containment emissions, partially offset by increased equal expenses related to the antitrust lawsuit. Our gap net income from continuing operations for the quarter was up 4% to $11.8 million over year. In spite of a 44% increase of operating income due to an unavailable higher tax rate on ongoing operations. Including its continual operation, not anytime would have grown 31% to 12.4 million dollars in 2024 compared to 9.4 million dollars in 2003. Moving on to cash flow and capital allocation, Q2 adjusting operating cash flow was 60.4 million dollars, and we purchased 48.2 million dollars of shares during the quarter, demonstrating our commitment to shareholder return.

Speaker Change: The way to dial into our Q2 expenses general and administrative expenses were $61 2 million.

Speaker Change: Down 6% compared to the second quarter of 2000 and fleet, primarily due to cost containment initiatives.

Speaker Change: Partially offset by increased legal expenses related to the antitrust lawsuit.

Kent Cheng: Our gap net income from continuing operations for the quarter was up 4% to $11.8 million over a year. In spite of a 44% increase in operating income due to an unfavorable higher tax rate on continuing operations, including its continuing operation net income would have grown 31% to $12.4 million in 2024 compared to $9.4 million in 2003. Moving on to cash flow and capital allocation, Q2 adjusted operating cash flow was $60.4 million, and we repurchased $48.2 million of shares during the quarter, demonstrating our commitment to shareholder return.

Speaker Change: Our GAAP net income from continuing operations for the quarter was up 4% to $11 $8 million year over year.

Speaker Change: In spite of a 44% increase of operating income due to an unfavorable higher tax rate on ongoing operations.

Speaker Change: Including discontinued operation net anytime would have grown 31% to $12 $4 million in 2024 compared to $9 $4 million in 'twenty. One this week.

Speaker Change: Moving on to cash flow and capital allocation Q2, adjusted operating cash flow was $60 4 million.

Speaker Change: And we repurchased $48 2 million of share during the quarter, demonstrating our commitment to shareholder return.

Kent Cheng: On the next slide, I will provide a detail about the driver of a revenue increase for the second quarter. This chart shows the driver behind the increase in revenue from the second quarter of 203 to the second quarter of 24. In Q2 2023, our revenue stood at $1.231 million, as shown by the bar on the left. For the second quarter of 2024, revenue increased to $1.299 million, as indicated by the bar on the right. Marked in a year-over-year increase of $64 million or 5% increase. This increase was primarily filled by synitricing in our North America, U.T.

Kent Cheng: On the next slide, I will provide some detail about the driver of our revenue increase for the second quarter. This chart shows the driver behind the increase in revenue from the second quarter of 2003 to the second quarter of 2024. In Q2 2023, our revenue stood at $1,231,000,000, as shown by the bar on the left.

Speaker Change: On the next slide I will provide some detail about the driver of our revenue increase for the second quarter.

Speaker Change: This chart shows the driver behind the increase in revenue from the second quarter of 1200 suite to the second quarter after 24.

Speaker Change: In Q2, 'twenty honestly, our revenue stood at $1 billion $231 million.

Speaker Change: So by the bar on the left on the second quarter of 'twenty 'twenty four revenue increased to $1 $295 million as indicated by the ball in the right.

Kent Cheng: For the second quarter of 2024, revenue increased to $1,295,000,000, as indicated by the bar on the right. This marked a year-over-year increase of $64 million, or 5%. This increase was primarily fueled by a significant gain in our North America region, which includes the US and Canada, contributing $55 million revenue. The International Realty Statement also saw a rise, contributing $8 million revenue. Let's delve deeper into the North American realty picture. Our U.S. agent base, excluding referral agents, declined and actively impacted our revenue by approximately $51 million. U.S. home sales in the second quarter of 2024 declined 3.4% year-over-year. Which pressured our age of production?

Martin: Martin a year over year increase of $64 million, a 5% increase.

Speaker Change: This increase was primarily fueled by significant gains in our North American beauty settlement, which includes the U S and Canada contributed a $55 million of revenue growth.

Kent Cheng: Semon, which includes the U.S. and Canada. Contributing a $55 million revenue growth. The International U.T. Semon also saw a rise, contributing an $8 million revenue increase.

Speaker Change: So international Realty segment also saw a rise contributed $8 million of revenue increase.

Kent Cheng: Let's delve deeper into the North America real-types. Our U.S. Asian base escued in the furrow agent declined and actively impact our revenue by approximately $51 million. U.S. home sales in the second quarter of 2024 declined 3.4% over year, which pressured our agent production. We estimated the decrease in the overall real estate market reduced our revenue by $37 million. However, this market declines more than offset by game from several areas in our business. Relative to the performance of the real estate market, an increase in our agent productivity over a prior year added $81 million revenue. Higher home sales price contributed incremental revenue of $55 million.

Speaker Change: Delve deeper into the North American Realty business.

Speaker Change: Our U S Asia base, excluding deferral agent decline.

Speaker Change: And next is really impact our revenue by approximately $51 million.

Speaker Change: U S home sales in the second quarter 'twenty 'twenty four declined three 4% year over year.

Speaker Change: Which pressured our Asia production.

Kent Cheng: We estimated the decrease in the overall real estate market reduced our revenue by $37 million. However, these market declines were more than offset by gains from several areas in our business, relative to the performance of the real estate market, and an increase in our agent productivity over the prior year at $81 million. Higher home sales prices contributed incremental revenue of $55 million. Additionally, our strategic focus on expanding our lease, referral, and other ancillary services brought in an extra $7 million in top line growth. On the next slide, I will discuss the financial performance of each segment in more detail for the quarter.

Speaker Change: We estimated that decrease in the overall real estate market reduced our revenue by $27 million.

Speaker Change: However, this market declines were more than offset by gain from several areas in our business.

Speaker Change: Relative to the performance of the real estate market and increase in our agent productivity over prior year at $81 million revenue.

Speaker Change: Higher home sales price contributed incremental revenue of $55 million.

Kent Cheng: Additionally, our strategic focus on expanding our lease, referral, and other entry services brought in an extra $7 million part-life growth.

Speaker Change: Additionally, our strategic focus on extending our lease referrals and other ancillary services brought in an estrogen several million dollars.

Speaker Change: Potline growth on the next slide I will discuss our financial for each segment in more detail for the quarter.

Kent Cheng: On the next slide, I will discuss the financial for each salmon in more detail for the quarter. The North America real-T. Semon continued to be the primary driver of both revenue and profit for the company. Seven revenue was $1,275 million, a 5% increase from prior year due to increased real estate recession and home sales prices. Despite the challenge of the residential real estate market, and just a bit out of $38.5 million, a 30% increase year over year due to improved business efficiency and reduced cost.

Kent Cheng: The North America Realty Settlement continues to be the primary driver of both revenue and profit for the company. Seventh revenue was $1,275,000,000, a 5% increase from the prior year due to increased real estate transaction and home sales price. Despite the challenge, the U.S. residential real estate market. Adjusting for our $38.5 million, a 30% increase year-over-year due to improved business efficiency and reduced costs. International Realty Settlement Revenue was $20 million, an increase of 69%, primarily due to increased real estate transactions driven by improved agent production in previously launched markets.

Speaker Change: The North America <unk> segment continued to be the primary driver of both revenue and profit for the company.

Speaker Change: <unk> revenue was $1 billion $275 million, a 5% increase from prior year due to increased real estate transaction and home sales prices.

Speaker Change: <unk> a challenged U S residential real estate market adjusted EBITDA was $38 $5 million.

Speaker Change: 40% increase year over year due to improved business.

Speaker Change: Efficiency and reduce cost.

Kent Cheng: International real-T. Semon revenue was $20 million, an increase of $60 million. Primer, due to increased real estate transaction driven by improved agent production in previously launched markets, adjusted the dollar loss to $2.4 million, a 37% improvement from prior year, due to increased revenue and cost reduction initiatives. Other affiliated services, including frame and success, contributed modest revenue and adjusted the dollar loss.

Speaker Change: International royalty segment revenue was $20 million, an increase of 69%.

Speaker Change: Primarily due to increased real estate transaction driven by improved agent production in previously launched markets.

Kent Cheng: Adjusting for the dialogue was $2.4 million, a 37% improvement from the prior year due to increased revenue and a cost reduction initiative. Other affiliated services, including Frame and Success, contribute a modest revenue and adjusted EBITDA loss. This slide highlights our strong Q2 performance across key operational and financial metrics, which I have detailed in the previous, Brooke and I head to the second half of this year. According to the latest NAR Existing Home Sales report, June saw a 5.4% decline in existing home sales from May, reaching a seasonally adjusted annual rate of 3.9 million units. Sales also fell 5.4% compared to the same period last year.

Speaker Change: Adjusted EBITDA loss was $2 4 million.

Speaker Change: 37% improvement from prior year due to increased revenue and cost reduction initiatives.

Speaker Change: Other affiliated services, including frame and success contributed a modest revenue and adjusted EBITDA loss.

Kent Cheng: These slides highlight our strong Q2 performance across key operational and financial metrics, which I have detailed in the previous slides. Looking at the second half of this year, according to the latest NAR Assistant Home Sales report, June saw a 5.4% decline in existing home sales from May, reaching a seasonally adjusted annual rate of 3.9 million units. Sales also fell 5.4% compared to the same period last year. We anticipated this downward trend in the US assistant home sales to persist in the next quarter, barring any significant macroeconomic shifts. The current uncertain real estate market have prompted us to adopt rolling real-time projections to enhance our agility and entrepreneurial approach in business management.

Speaker Change: This slide highlights our strong Q2 performance across key operational and financial metrics, which I have detailed in the previous slides.

Speaker Change: Looking ahead to the second half of this year.

Speaker Change: According to the latest and they are assisting <unk> poor June sort of five 4% decline in existing home sales for <unk>, reaching a seasonally adjusted annual rate of $3 9 million units.

Speaker Change: <unk> also fell five 4% compared to the same period last year we.

Kent Cheng: We anticipate this downward trend in U.S. assistant home sales to persist in the next quarter, barring any significant macroeconomic shift. The current uncertain real estate market has prompted us to adopt rolling real-time projections to enhance our agility and entrepreneurial approach to business management. We plan to continue to invest in our international market and Asian Growth Initiative to boost our production in the U.S. Our gross margin percentage for the second half of the year is expected to be generally consistent with a typical seasonal pattern and last year's performance.

Speaker Change: We anticipate this downward trend in the U S assistant home cells to persist in the next quarter.

Speaker Change: Barring any significant macroeconomic shifts.

Speaker Change: The current uncertain real estate market have prompted us to adopt growing real time projections to enhance our agility and to colonial approach and business management.

Kent Cheng: We plan to continue to invest in our international market and agent grow initially to boost our production in the US. Our gross margin percentage for the second half of the year is expected to be generally consistent with a typical seasonal pattern and last year's performance.

Speaker Change: Plan to continue to invest in our international markets in Asia grow initiatives to boost our production in the U S.

Speaker Change: Our gross margin percentage for the second half of the year expected to be generally consistent with a typical seasonal pattern and last year's performance and.

Kent Cheng: In conclusion, I'm happy to report another quarter of solid execution, which leaves us well positioned to capitalize on upcoming market growth opportunities. You continue to gain share one real estate market turns and recovers positively.

Kent Cheng: In conclusion, I'm happy to report another quarter of solid execution, which leaves us well positioned to capitalize on upcoming market growth opportunities. We continue to gain share when the real estate market turns and recovers positively. With that, I'd like to turn the presentation back to Denise, who will facilitate the Q&A session. Thank you.

Speaker Change: In conclusion.

Speaker Change: If we can report another quarter of solid execution, which leave us well positioned to capitalize on upcoming market global opportunities and continuing to gain share one real estate market terms and recover positively with that I'd like to turn the presentation back to Denise who will facilitate the Q&A.

Denise Garcia: With that, I'd like to return the presentation back to Denise, who will facilitate the QMA session. Thank you. Thanks, Kent.

Denise Garcia: Session. Thank you.

Denise Garcia: Thanks, Kent. I'll kick off with a question for everyone on the team before we open the call to our covering analysts. First, Glenn, I'll start with you. Where are you spending most of your time? Where are you most focused?

Denise Garcia: Thanks, Ken.

Denise Garcia: I'll pick up with a question for everyone on the team before we open the call to our covering analysts. First, Glenn, I'll start with you. Where are you spending most of your time? Where are you most focused? Thanks. For the last couple of weeks, especially, and it's actually something I've been focused more and more time on. I've been actually focused on the international side. We actually had our first international EXP con in Lisbon, Portugal last month, so that it was well attended from agents, especially in Europe, but we had some agents come over from other parts of the world as well.

Denise Garcia: I'll kick off with a question for everyone on the team before we open the call to our covering analysts first Glenn I'll start with you where are you spending most of your time, where you're most focused.

Glenn Darrel Sanford: Um, so, uh, thanks. Um, uh, so.

Speaker Change:

Speaker Change: Sure.

Speaker Change: Thanks.

Speaker Change: So.

Glenn: For the last couple of weeks, especially in essentially something ive been focused more and more time on I've been actually focused on the international side, we actually had our first internationally XP Kannan in Lisbon, Portugal last month.

Glenn Darrel Sanford: For the last couple of weeks especially, and it's actually something I've been focused more and more time on, I've actually been focused on the international side. We actually had our first international eXpCon in Lisbon, Portugal last month, which was well attended by agents, especially in Europe, but we had some agents come over from other parts of the world as well, and had a lot of good meetings. I know that we ended up bringing in one or two good-sized real estate teams for meetings that Leo and I were a part of, and Felix and others, so that was really positive.

Glenn: So it was which was well attended.

Glenn: From agents, especially in Europe.

Glenn: But we have some agents come over from other parts of the world as well.

Glenn Sanford: I had a lot of good meetings. I know we ended up bringing over one or two good-sized real estate teams from meetings at Leo and I were a part of in Felix and others, so that was really positive. Here in the last two weeks, I've actually been working directly with the international team, building a bunch of new systems out to help us grow and then refreshing the agent value proposition in a number of countries, which I think is being super well received by both our country leaders and our agents on the ground. So pretty exciting to work on that.

Glenn: And had a lot of good meetings.

Glenn: We ended up.

Speaker Change: Bringing over one.

Speaker Change: And are two good sized real estate teams for meetings that Leo and eyewear part of helix and others.

Glenn Darrel Sanford: And here in the last two weeks, I've actually been working directly with the international team, building a bunch of new systems out to help us grow, and then refreshing the agent value proposition in a number of countries, which I think is being super well received by both our country leaders and our agents on the ground. So pretty exciting to work on that. And so I'm also going to be heading back in September, attending a large international MLS meeting in Milan, I believe in October, and then we'll have a number of meetings in different parts of Europe.

Speaker Change: So that was really positive.

Speaker Change: Here in the last two weeks I've actually been.

Speaker Change: Working.

Speaker Change: Directly with the international team building, a bunch of new systems out to help us grow and and refreshing the agent value proposition and a number of countries, which I think has been super well received by.

Speaker Change: Both our country leaders and our agents on the ground so pretty exciting.

Speaker Change: To work on on that.

Speaker Change: And so I'm also going to be heading back in September.

Glenn Sanford: I'm also going to be heading back in September, attending a large international MLS meeting actually in Milan. I believe in October, and then we'll have a number of meetings in different parts of Europe, so that's leading up toward EXP con. That's a little bit of what I've been up to, and that's actually where my focus is. Many of you have heard me talk a ton about the future of international.

Speaker Change: Attending.

Speaker Change: Large international.

Speaker Change: MLS meeting.

Speaker Change: <unk> in Milan, I believe in October and.

Speaker Change: And then we'll have a number of meetings in different parts of Europe, So that's leading up towards <unk>.

Glenn Darrel Sanford: So that's leading up to eXpCon. So that's a little bit of what I've been up to, and that's actually where my focus is. Many of you have heard me talk a ton about the future of international. I think we couldn't be more excited about it, and just rolling up my sleeves personally every single day on that has been good for me, but I think it's also good for the team at large

Speaker Change: So it's a little bit of what I've been up to and that's where actually where my focus as many of you heard me talk a ton about the future of international I think we are.

Leo Pareja: I think we couldn't be more excited about it, and just rolling up my sleeves personally every single day on that has been good for me, but I think also good for Alright, thanks, Glenn.

Speaker Change: Would it be more excited about it and just rolling up my sleeves personally or every single day on that has been.

Speaker Change: Good for me, but I think also good for the team at large.

Denise Garcia: Great. Thanks, Glenn. Next question for you, Leo. Can you discuss what drove the quarter-to-quarter increase in agent count?

Glenn: Thanks Glenn.

Leo Pareja: Next question for you, Leo. Can you discuss what drove the quarter-to-quarter increase in the age of count? Yeah, so we did a very strategic acquisition of Realty Connect, which is a limited function referral company. So we did it for multiple reasons. It's going to be a great tool for retention as a person, you know, a very real number of agents at large in the industry are contemplating or choosing to get out of the industry, especially with the changes coming from North. So we wanted to have a vehicle for to retain these licenses. The company has a really interesting model where it actively drips on these agents' databases to get them. I think their per person productivity is like a point five, which is actually higher than most referral companies through a proprietary CRM.

Leo: Our next question for you Leo can you discuss what's around the corner to corner increase in agent count.

Leo Pareja: Yeah, so we did a very strategic acquisition of Realty Connect, which is a limited function referral company. So we did it for multiple reasons.

Leo: Yes, so we did a very strategic acquisition of royalty connect which is a limited function referral company.

Leo Pareja: It's going to be a great tool for retention as a person. You know, a very real number of agents at large in the industry are contemplating or choosing to get out of the industry, especially with the changes coming from NAR. So we wanted to have a vehicle for keeping these licenses. And the company has a really interesting model where it actively drips into these agents' databases to get them. I think their per person productivity is like a point five, which is actually higher than most referral companies through a proprietary CRM and generates very good, high-margin referrals for our active agents. And then, hopefully, we can boom them back if they choose to get back into production actively.

Leo: So we did it for multiple reasons, it's going to be a great tool for retention as a person.

Speaker Change: A very real number of agents at large in the industry are contemplating.

Speaker Change: Choosing to get out of the industry, especially with the changes coming from north. So we wanted to have a vehicle for to retain these licenses and the company is a really interesting model where.

Speaker Change: It actively drips on these agents databases too.

Speaker Change: Get them.

Speaker Change: <unk> per person productivity is like a <unk>, which is actually higher than most referral companies through our proprietary CRM.

Leo Pareja: And generate very good high-margin referrals for our activations. And then hopefully we can boomer them back if they choose to get back into production actively. And the great thing is that they're also, you know, it's a brand-agnostic brokerage that attracts referral agents from all diversity of brokerages. And also, this is a very high-margin business, right? There's very low operational cost to it. As it's all of the transaction processing of the transactions would happen at EXB Realty at the core. So it's a nice little business that makes very good sense, tucked into our core business.

Speaker Change: And generate very good high margin referrals for our active agents.

Speaker Change: And then hopefully we can boomerang them back if they choose to.

Speaker Change: Get back into production actively.

Denise Garcia: And the great thing is that they're also, you know, it's a brand agnostic brokerage that attracts referral agents from all diversity of brokerages. And also, this is a very high-margin business, right? There's a very low operational cost to it as all of the transactions and processing of the transactions would happen at eXp Realty at the core. So it's a nice little business that makes very good sense tucked into our core business.

Speaker Change: And the Great thing is that there also.

Speaker Change: It's a brand agnostic brokerage that attracts referral agents from a diversity of brokerages.

Speaker Change: And also this is a very high margin business right, there's very low operational cost to it.

Speaker Change: It's all of the transaction and processing of the transactions would happen at DXP royalty at the core so.

Speaker Change: It's a nice little business that makes very good sense tucked into our.

Speaker Change: Our core business.

Kent Cheng: All right, thanks, Leo. And one for you, Kent. Can you discuss the second quarter gross margin and your thoughts on gross margin for the remainder of the year?

Leo Pareja: All right.

Kent Cheng: Thanks, Leah.

Dan: Alright, Thanks, Dan.

Kent Cheng: And one for you, can you discuss the second quarter gross margin and your thoughts on gross margin for the remainder of the year? Sure. As you know, we are primary focus on revenue and the justly bidder as key financial matters. Vice worth noting that in the second quarter, we have more agent, which they're kept. We also invest in our agent and gross profit, including stop base compensation and revenue share expenses as our on the slide 27 in the fireside chat presentation. According to this expenses, our non-GAAP gross margin was 12.8% in the second quarter. Yesterday, non-GAAP gross margin percentage is 13.3%.

Ken: One for you Ken can you discuss the second quarter gross margin and your thoughts on gross margin for the remainder of the year.

Kent Cheng: Sure, as you know, we are primarily focused on revenue and adjusted data as key financial measures. But it's worth noting that in the second quarter, we had more agents reach their We also invest in our agents and gross profit, including stock-based compensation and revenue share expenses, as outlined on slide 27 in the Fireside Chat presentation. Excluding these expenses, our non-GET gross margin was 12.8% in the second quarter. Yesterday, our non-GET gross margin percentage was 13.3%.

Sean: Sean as you know we are primarily focused on revenue and adjusted EBITDA as a key financial metric by its worth noting that in the second quarter with more agent reach their cap.

Speaker Change: We also invest in our Asian, and gross profit, including stock base compensation and revenue share expenses as outlined on slide 27 in the fireside chat presentation.

Speaker Change: Good English expenses.

Speaker Change: Expenses, our non-GAAP gross margin was 12, 8% in the second quarter year to date non-GAAP gross margin for <unk>.

Speaker Change: <unk> is 13, 3%.

Kent Cheng: Given our current team of highly productive agents, we spent additional agents to reach the cap in the second half. We will continue investing agent in the third and fourth quarter.

Kent Cheng: Given our current team of highly productive agents, we expect additional agents to reach their quotas in the second half. We will continue to invest in agents in the third and fourth quarters. We anticipate gross margin in the second half will follow a typical seasonal pattern and be approximately similar to the bad half of 2003.

Speaker Change: Given our current team of highly productive agents, we expect additional agent who wish to cap in the second half.

Speaker Change: We will continue to invest in agency in the third and fourth quarter, we anticipate gross margin in the second half new follow it will follow a typical seasonal pattern.

Kent Cheng: We anticipate gross margin in the second half; you follow a typical seasonal pattern and the approximately similar to the back half of 2023. All right.

Speaker Change: And the approximately similar towards the back half of 'twenty one potentially.

Denise Garcia: All right. Thanks, Leo. So now I'll open the call to our analysts on the left side of the stage. I'll take the first question from Tom at DA Davidson and Company. Tom, I think you have a question if you want to go ahead. Yeah.

Speaker Change: Alright. Thanks.

Tom: Thanks, Leah. So now I'll open the call up to our analysts on the left-hand side of the stage. I'll take the first question from Tom at DA Davis and Company. Tom, I think you have a question. If you want to go ahead. Yeah, great. Thank you, Denise, and thanks for taking my questions, guys. A couple of I could. I guess I just may be on the following up on the reality can connect. Can you just, was there a specific number of agents that kind of came over? Are they all domestic agents? That's sort of my first question.

Liana: Thanks Liana.

Anton: Now I'll, let the Nit color our analysts on the left hand side of the stage I'll take the first question from Anton at da Davidson and company. Tom I think you have a question. If you want to go ahead, yeah, great. Thank you Denise and thanks for taking my questions guys.

Thomas Cauthorn White: Yeah, great. Thank you, Denise.

Speaker Change: A couple if I could.

Thomas Cauthorn White: And thanks for taking my questions, guys. A couple if I could. I guess I just maybe I'm following up on the Realty Connect. Can you just say there were a specific number of agents that kind of came over? Are they all domestic agents? That's sort of my first question. And then maybe, kind of, stepping back on the domestic business. I don't know, maybe it would be interesting to hear your latest view on how you're feeling about the competitiveness of your value prop and the overall kind of appeal of the platform versus some of, you know, the kind of smaller guys that have copied your model in recent years. Like, Why does an agent today, you think? What are the main reasons that they choose eXp over And then I had a quick follow-up.

Speaker Change: I guess I'd, just maybe on that following up on the royalty can connect.

Tom: Can you just was there a specific number of agents that kind of came over.

Speaker Change: Are they all domestic agents.

Speaker Change: That's sort of my first question and then just maybe stepping back on.

Tom: And then just maybe like stepping back on kind of the domestic business.

Speaker Change: The domestic business.

Leo Pareja: I don't know, maybe just to be interesting to hear your latest view on how you're feeling about the competitiveness of your value prop and the overall kind of appeal of the platform versus some of, you know, the kind of smaller guys that have copied your model in recent years. Like, why does an agent today, you think, you know, what are the main reasons that they use eXp over one of the other guys? And then I had a quick follow-up. Yeah, so great question. So the first is the sizing. I think it was roughly 2900 agents, just to answer your first question.

Speaker Change: I don't know maybe just.

Speaker Change: Turning to hearing your latest view on how you're feeling about the competitiveness of your value prop and the overall kind of appeal of the platform versus some of the smaller guys that have copied your modeling in recent years.

Speaker Change: Why does an agent today, you think what are the main reasons that they choose ESP over one of the other guys and then I had a quick follow up.

Leo Pareja: Yeah, so great question. So the first is the sizing.

Speaker Change: Yeah. So great great question. So the first is the the sizing I think it was roughly 2900 agents.

Speaker Change: Just in answer to your first question and secondly overall.

Leo Pareja: And secondly, overall, you know, I think I've talked to some on other calls; you know, there's an endemic turn that's inherent with the industry. So, you know, agnostic of brands. There's, there's a turn component that hits everyone at scale. So the one denominator is bigger. Obviously, adding at the top of the photo has had pressure because of this. This is kind of a natural attrition that exists, whether agents could completely out of the business or they go to a competitor. So, you know, overall, you know, based on the downward pressure at scale, I think we're actually doing great with the teaser; we're attracting.

Speaker Change: I think I've talked to us.

Speaker Change: On other calls.

Speaker Change: There is an <unk> churn that's inherent with the with the industry. So.

Leo Pareja: I think it was roughly 2,900 agents, to answer your first question. And secondly, overall, you know, I think I've talked to some on other calls, there's an endemic churn that's inherent in the industry. So, you know, agnostic of brands, there's a churn component that hits everyone at scale. So the one denominator is bigger, obviously, adding at the top of the funnel has pressure because there's just kind of a natural attrition that exists, whether agents get completely out of the business, or they or they go to a competitor.

Speaker Change: Ignostic of brands there is theirs.

Speaker Change: I turned component that hits, everyone at scale solar wind denominator is bigger obviously, adding at the top of the funnel.

Speaker Change: Pressure because of this as kind of a natural attrition that exists whether agents get completely out of the business or are they.

Leo Pareja: So, you know, overall, based on the downward pressure at scale, I think we're actually doing great with the teams we're attracting. I'm not sure if you saw the press release on that team out of Missouri that just joined us, 1100 Transaction Team. They'll probably be our number one agent for 2024. Our number one team in terms of production, this is the type of team that was able to interview, and I know they did all of our other competitors. And same with the Matt Feddick team that joined last week.

Speaker Change: Or they go to a competitor.

Dan: <unk>.

Dan: Overall.

Speaker Change: Based on the downward pressure at scale I think we're actually doing great with the teams we're attracting.

Leo Pareja: I'm sure you saw the press release on that team out of Misery that just joined us, 1100 transaction team; they'll probably be our normal agent for 2024. Number one team in production wise, and this is the type of team that was able to interview. And I know they did all of all of our other competitors. And some with the Metfetic team that joined last week, and we have another announcement coming next week, where top producers, folks that do this at a very high level, are actually asking very detailed questions about profitability, sustainability, operations. And we're continuing to see the highest level of operators join the company that they feel has longevity, sustainability, and it's not a startup.

Dan: Sure. If you saw the press release on that team out of.

Dan: Missouri that just joined US 1100 transaction team will probably be our number one agent for 2024.

Dan: And number one in production wise and this is the type of team that was able to interview and I know they did all of all of our other competitors.

Dan: With the <unk> team that joined last week, and we have another announcement coming next week, where top producers folks that do this at a very high level are actually asking very detailed questions about profitability sustainability operations.

Leo Pareja: And we have another announcement coming next week, where top producers, folks that do this at a very high level, are actually asking very detailed questions about profitability, sustainability, and operations. And we're continuing to see the highest level of operators join a company that they feel has longevity, sustainability, and it's not a startup. We are in turbulent times in our industry. There are a lot of ships coming.

Dan: And we're continuing to see.

Dan: At the highest level of operators joining the company.

Dan: They feel has longevity sustainability and it is not a startup.

Leo Pareja: We are in turbulent times in our industry. There is a lot of ships coming. And I think having a scale platform that has already gone through all its pivots and turns makes a big difference. And, you know, to talk to think that, you know, is it's a slightly deeper version, the only decision tree. I think is not how most professionals in consumer shop and make decisions, agnostic of industry, but we continue to see the strongest performers, and as well as, you know, the standalone agents choose our company, just because of the total value proposition. I would say that, especially with the changes happening in the industry right now, I think a lot of them, and again, I'm just quoting what I'm seeing anecdotally on social media, feeling very strong comfort knowing that we're fully scaled, we're fully operational in these markets, we have the staff and the brokers in the systems to support their business because at the end of the day, the company they're choosing to hang their license with is that platform that allows them to operate their business.

Dan: We are in turbulent times in our industry.

Dan: There is a lot of ships coming.

Leo Pareja: And I think having a scaled platform that has already gone through all its pivots and turns makes a big difference. And, you know, to Tom, to think that, you know, it's a slightly cheaper version. The only decision tree, I think, is not how most professionals and consumers shop and make decisions agnostic of industry. But we continue to see the strongest performers, and as you know, standalone agents choose our company just because of the total value proposition.

Dan: And I think having a scaled platform that has already gone through all its pivots and turns it makes a big difference.

Dan: Yeah.

Tom: Tom to think that it's a slightly cheaper version the only decision tree.

Dan: <unk> is not how most.

Speaker Change: Professionals and consumers shop, and make decisions agnostic of industry.

Speaker Change: We continue to see the strongest performers and as well as.

Speaker Change: The Standalone agents choose our company just because of the total value proposition.

Leo Pareja: And I would say that, especially with the changes happening in the industry right now, I think a lot of them, and again, I'm just quoting what I'm seeing anecdotally on social media, feel a very strong comfort knowing that we're fully scaled, we're fully operational in these markets, we have the staff and the brokers and the systems to support their business. Because at the end of the day, the company they're choosing to hang their license with is the platform that allows them to operate their business. And I think sustainability and, you know, operational excellence are a very important part of that decision.

Dan: Good.

Dan: Saying that is especially with the changes happening in the industry right now.

Speaker Change: A lot of them and again I'm, just quoting what I am seeing anecdotally on social media feel a very strong comfort knowing that we're fully scaled we're fully operational in these markets. We have the staff and the brokers and the systems to support their business because at the end of the day.

Speaker Change: The company they are choosing to hang their license with.

Speaker Change: And is that platform that allows them to operate their business.

Leo Pareja: And I think sustainability and, you know, operational excellence is a very important part of that decision tree.

Speaker Change: Sustainability and operational excellence is a very important part of that decision tree.

Speaker Change: Got it that.

Speaker Change: It makes a lot of sense in this.

Thomas Cauthorn White: That makes a lot of sense and is very helpful. Maybe just on that topic of industry change, I'm sitting here in Las Vegas right now at the Inman Conference. I saw Kendall Bonner on stage earlier. She was super impressive the first time I'd heard her.

Speaker Change: Very helpful. Maybe just on that topic of kind of the industry change.

Tom: I'm sitting here in Las Vegas right now at the Inman Conference. I saw Kendall Bonner on stage earlier; she was super impressive the first time I'd heard her, but you know, the August 17th is a hot button topic, as you can imagine. I know you've been like super kind of close to this and creating, generating about your content and stuff like that.

Speaker Change: I'm sitting here in Las Vegas, right now with the Tinman conference.

Speaker Change: Kendall Bahner on stage earlier chimps Super impressive the first time I heard her.

Thomas Cauthorn White: But August 17th is a hot button topic, as you can imagine. Leo, I know you've been super close to this and are generating a bunch of content and stuff like that. Can you just like, at a super high level, you don't need to go too in the weeds, I guess, but unless you want to, but talk about like what are like the best practices or specific protocols that you guys are, you know, encouraging with your agents, that maybe differ in any kind of meaningful way from, you know, what everyone else is doing?

Speaker Change: But.

Speaker Change: The August 17th kind of is it is a hot button topic as you can imagine.

Leo: Leo I know you've been like Super kind of close to this and creating generating a bunch of content and stuff like that can you just like at a super high level, you don't need to go too in the weeds, I guess, but unless you want to talk about like.

Leo Pareja: Can you just, like, at a super high level, you don't need to go two in the weeds, I guess, but unless you want to, but talk about, like, what are like the best practices or specific, like, protocols that you guys are, you know, encouraging with your agents, you know, that maybe they differ in any kind of meaningful way from, you know, what everyone else is doing. That's one of the things, many things that struck me today that, I don't know, it doesn't seem like everyone is following. You know, everyone's got different terms on their buyers' rep agreement, paperwork, and exclusive versus non-exclusive. It's just all, and that sounds a bit messy, as you mentioned.

Speaker Change: Like what are like the best practices or specific like protocols that you guys are.

Speaker Change: Encouraging with your agents.

Speaker Change: Maybe dip do they differ in any kind of meaningful way from what everyone else is doing because that's one of the main things that I spoke to me today that.

Thomas Cauthorn White: Because that's one of the main things that struck me today that I don't know, it doesn't seem like everyone is following, you know, everyone's got different terms on their buyer's rep agreement paperwork and exclusive versus non-exclusive. It's just all. And that sounds a bit messy, as you mentioned. Yeah.

Speaker Change: I don't know it doesn't seem like everyone is following.

Speaker Change: Everyone's got different terms on their buyers rep agreement paperwork and exclusive versus nonexclusive Mr stall.

Speaker Change: And it sounds a bit.

Marci: Marci as you mentioned.

Leo Pareja: Yeah, the messy middle is the best way to describe it, and I've been saying that's March, and then subsequently on that live I did in May, where I've been trying to brace the industry, because this, this kind of collective pulling of their head out of the sand didn't have this, oh no moment that we're kind of witnessing specifically this week, I would say. And by the way, I was at admin yesterday, and I just flew back so I could be home and sort of my computer to do this piece of quiet. So, you know, we've made a stance about no more broker-to-broker commission shirt, as exactly as stated in the settlement agreement on paragraph 19.

Leo Pareja: Yeah, the messy middle is the best way to describe it. And I've been saying that since March, and then subsequently on that live I did in May, where I've been trying to brace the industry because this kind of collective, pulling their heads out of the sand and having this, oh, no moment that we're kind of witnessing specifically this week, I would say. And by the way, I was at admin yesterday, and I just flew back so I could be home and in front of my computer to do this piece of quiet writing.

Speaker Change: Yes, the messy middle is the best way to describe it and I have been saying that since March and then subsequently on that LIBOR did it make where I've been trying to break the industry because this kind of collective.

Speaker Change: Pulling of their head out of the sand didn't Paradise, Oh, no moment that we're kind of witnessing specifically this week I would say.

Speaker Change: And by the way I was at Edmonton yesterday, and I just went back so I could be home and it's sort of my computer Nadeem initiatives.

Speaker Change: Peace of quiet.

Leo Pareja: So, you know, we've made a stance about no more broker to broker commission sharing, as exactly stated in the settlement agreement on paragraph 19. And again, if the seller wants to offer compensation to a seller directed to buyer broker, that's perfectly OK. I actually spoke about the subject yesterday. Kendall's a phenomenal addition to the team that I was happy to have as we go through this transition.

Marci: So we made a stance about no more broker to broker commission as exactly as stated in the settlement agreement on paragraph 19th.

Leo Pareja: And again, if the seller wants to offer compensation to a seller directed to buyer broker, that's perfectly okay. I actually spoke about the subject yesterday, and Kendall's a phenomenal addition to the team that I was happy to have as we're going through this transition. But I would just, you know, I did an interview for Time this morning, Associated Press, and doing what we're seeing in next week. The material changes that people need to be hyper aware of is buyers are being required to sign a buyer broker agreement prior to touring and executing a purchase contract, and the touring parts, even the heart of part of the conversation, because like this is not an agency policy, this is squarely out of the the NAO settlement agreement.

Speaker Change: And again, if the seller wants to offer compensation to stellar directed to buyer broker that's perfectly okay.

Marci: I actually spoke about the subject yesterday Kendall's a phenomenal addition to the team that I was happy to have as we're going through this transition, but I would just.

Leo Pareja: But I would just let you know that I did an interview for Time this morning, for the AP, and I'm doing one for CNN next week. The material changes that people need to be hyper aware of are that buyers are being required to sign a buyer broker agreement prior to touring and executing a purchase contract. And the touring part is even the harder part of the conversation because this is not an eXp policy. This is squarely out of the NAR settlement agreement. And what I was saying very clearly at Inman, and I said it today on a live show I did, is that.

Speaker Change: In an interview for time this morning associated press and doing what you are seeing in next week.

Speaker Change: The material changes that people need to be hyper aware of as buyers are being required to sign a buyer brokered agreement prior to touring and executing a purchase contract in the touring parts, even the harder part of the conversation because this is not an easy policy. This is.

Speaker Change: Squarely out of deep.

Speaker Change: The settlement agreement.

Leo Pareja: And what I was saying very clearly in an admin, and I said it today on a live, I did, is that it all comes down to enforceability. And the MLS is only once targeted to enforce this in the earlier signs that they're going to do it through punitive penalties. So agents could be subject to $25,000 to $5,000 fines, with immediate deletion of their listings, and some have kind of already floated the fact that they may be even suspending agents. So we've been obsessed with this, and you guys have all heard me talking about this without pause since the news broke in March.

Speaker Change: What I was saying very clearly.

Speaker Change: In Midland I started today on a live I did is that.

Leo Pareja: It all comes down to enforceability, and the MLSs are the ones targeted to enforce this. And the earlier signs that they're going to do it through punitive penalties. So agents could be subject to $2,500 fines and $5,000 fines with immediate deletion of their listings. And some have kind of already floated the fact that they may be even suspending agents. So we've been obsessed with this. And you guys have all heard me talking about this without pause since the news broke in March. And so, for us, it's been a very offensive strategy of education.

Speaker Change: It's all comes out to enforceability and the MLS as are the ones.

Speaker Change: Targeted two with horses.

Speaker Change: In the earlier signs of that Theyre going to do it through punitive penalties.

Speaker Change: So agents could be subject to $25 $5000 clients with immediate deletion of their listings and some have kind of already floated. The fact that they may be even suspending agents. So we've been obsessed with this and you guys have all heard me talking about this.

Speaker Change: Without pause since since the news broke in March.

Leo Pareja: And so for us, it's been a very offensive strategy of education. And again, anecdotally, while I was in admin yesterday, I got stopped by many independent brokers who came up to me and said, "You're the only one articulating this clearly." The gentleman who joined us and the press release went out, Matt out of Missouri, he specifically was shopping for this operational excellence through broker understanding. Not only did he interview me and our position, my understanding of it, he wanted to talk to Holly Maverick or SVP of Operations and omelate our SVP of Transactions and like really start getting down to the new degree.

Leo: So for US it's been a very offensive.

Leo: Our strategy of education.

Leo Pareja: Again, anecdotally, while I was in Edmond yesterday, I got stopped by many independent brokers who came up to me and said, "You're the only one articulating this clearly." The gentleman who just joined us and that the press release went out, Matt, out of Missouri, he specifically was shopping for operational excellence and true broker understanding. Not only did he interview me and our position, my understanding of it, but he wanted to talk to Holly Mabry, our SVP of operations, and Amelie, our SVP of transactions, and really start getting down to the nitty gritty.

Leo: And.

Speaker Change: Again anecdotally, while I was it had been yesterday I got stopped by many independent brokers, who came up to me and said you're the only one articulating is clearly the gentleman, who just joined US that the press release went out.

Speaker Change: Matt out of Missouri is specifically with shopping for des operational excellence true broker understanding not only did Hayden Rio me and are positioned my understanding of it. He wanted to talk to Holli <unk>, our SVP of operations and ultimately our SVP of transactions and really start getting down to the nitty gritty.

Leo Pareja: I think I said it on the last earnings call time. I fully expect six, 12, 18 months from now as this messy middle plays out where folks are probably going to be fatigued from the breakage and the headaches with it. And it also probably tired of the actual like, if you read the press release from Matt and Missouri, he specifically said, I didn't want the liability and I didn't I just wanted to partner with an outfit that understood this part because I think it's going to be probably more meaningful. The folks are giving it attention right now.

Leo Pareja: I think I said it on the last earnings call, Tom, I fully expect 6, 12, 18 months from now, as this messy middle plays out, where folks are probably going to be fatigued from the breakage and the headaches with it. And also probably tired of the actual, like, if you read the press release from Matt in Missouri, he specifically said, "I didn't want the liability." I just wanted to partner with an outfit that understood this part because I think it's probably going to be more meaningful in total than folks are giving it attention right now.

Speaker Change: I think I said on the last earnings call. Tom I fully expect 612 18 months from now as this messy middle plays out where folks are probably going to be fatigue.

Speaker Change: From the breakage and the headaches limits.

Speaker Change: And also probably tired of the actual like if you read the press release for Matan, Missouri. He specifically said I didn't want the liability.

Speaker Change: I just I wanted to partner with an outfit that understood. This part because I think it's going to be probably more meaningful in total that folks are giving attention to right now.

Tom: Great. Very helpful. I'll get back in the queue. Thanks.

Thomas Cauthorn White: Great, very helpful. I'll get back in the queue. Thanks.

Speaker Change: Great very helpful I'll get back in the queue. Thanks.

Matt Filek: Thanks, John. We'll take our next question for Matt Filek at William Blair. Matt, if you had a question, you can go ahead. Yes. Thank you, Denise. Hey, everyone.

Denise Garcia: Thanks, Tom. We'll take our next question from Matt Filek at William Blair. Matt, if you have a question, you can go ahead.

Speaker Change: Thanks, Tom We will take our next question from Matt <unk> at William Blair, Matt. If you had a question you can go ahead.

Matthew R. Filek: Yes, thank you Thaddeus. Hey everyone, you have Matt Filek on for Steve and Sheldon. Thank you for the questions. No agent churn continues to largely stem from lower producing agents, but I'm curious if you are starting to see some churn among the top producing agents as well, and you know, just related to that, can you remind us of some of the incentives you have in place to help retain those top producing

Matt: Yes. Thank you Denise Hey, everyone you have Matt <unk> on for Stephen Sheldon. Thank you for the questions.

Leo Pareja: You have Matt Filek on first, Steven Sheldon. Thank you for the questions. No agent churn continues to largely stem from lower producing agents, but curious if you are starting to see some churn among the top producing agents as well. And you know, just related to that. Can you remind us on some of the incentives you have in place to help retain those top producing agents? That's a great question. I don't know that we had it in the presentation deck, but the numbers are maintaining where the disproportionate amount of churn is focused around our nonproductive agents.

Stephen Sheldon: Don't agent churn continues to largely stemmed from lower producing agents, but curious if you're starting to see some churn among the top producing agents as well and just related to that can you remind us on some of the incentives you have in place to help retain those top producing agents.

Leo Pareja: And that's a great question. I don't know that we had it in the presentation deck, but the numbers maintain where the disproportionate amount of churn is focused around our non-productive agents. You know, on the higher end of the industry, there's always the outliers who move with incentives, and we are no different in attracting them. But to reference your exact question, the BOOST program, which we developed, I think, last October with Michael Bean, that we brought over, is the incentive that we're using for small to mid-sized independents.

Speaker Change: And that's a great question.

Speaker Change: I don't know that we had it in the presentation deck, but the numbers are maintaining where the disproportionate amount of churn is focused around our non productive agents.

Leo Pareja: You know, at the top side of the industry, there's always the outliers who move with incentives, and we are no different at attracting them. But to reference your exact question, the Boost program, which we developed, I think, last October with Michael B, that we brought over, is the incentive there we're using for small to mid-size independence. Again, I think a perfect example of that was the press release we made today. And again, our sweet spot is that small to mid-size independent who runs a similar model, right? So we are, we are not, we have not traditionally been historically been a perfect fit for a flat fee brokerage, for example, to the necklace quite a bit of breakage since we do have a split.

Speaker Change: The top side of the industry. There is always the outliers, who moved with incentives and we're no different in attracting them, but to reference your exact question. The boost program, which we've developed I think last.

Michael Valdes: October with Michael <unk>.

Michael Valdes: That we brought over.

Michael Valdes: Is the incentives that we're using for small to midsize independents.

Leo Pareja: Again, I think a perfect example of that was the press release we made today. And again, our sweet spot is that small to mid-sized independent who runs a similar model, right? So we have not traditionally and historically been a perfect fit for a flat feed brokerage, for example, because that creates quite a bit of breakage since we do have a split. But we're constantly evaluating, making sure that we're competitive in the market and reacting to the landscape as a product.

Michael Valdes: Again, I think a perfect example of that was the press release with me today.

Michael Valdes: And again, our sweet spot is.

Speaker Change: Small to midsize independents, who runs a similar model right. So we are we are not we have not traditionally and historically been a perfect fit for our flagship brokerage for example, because that creates quite a bit of breakage. Since we do have a split.

Leo Pareja: But we're constantly evaluating, making sure that we're being competitive in the market and reacting to the landscape. That's a promise. Got it.

Speaker Change: But we're constantly evaluating making sure that we're being competitive the market reacting to the landscape that's a promising.

Leo Pareja: Got it, that's helpful.

Kent Cheng: I don't want to add; we have a person. We have a slide on the fireside chat that independence, right? In a two to 75%, 75% agent that left EST have zero to two self recession. So majority of the departure agents are very low producing agents. Perfect. Thank you, Kent.

Speaker Change: Got it that's helpful.

Kent Cheng: I don't want to add, but we have a slide on the Fireside Chat that in the appendix, in Q2, 75% of agents that left EST had 0 to 2 self-transactions. So the majority of the departure agents are very low-producing agents.

Speaker Change: I don't want to add we have a person we are a supplier on the fireside chat that independently in the Q2 and <unk>, 75% to 75%.

Speaker Change: <unk> debt.

Speaker Change: Lastly, <unk> has zero south transaction, so majority of the departure agent.

Speaker Change: Low producing agents.

Matthew R. Filek: Perfect, thank you, Kent. And then I just wanted to follow up on a question Tom had about the competitive landscape. Just curious, would you ever consider tweaking the agent compensation structure to further enhance the attractiveness of the platform from the agent's perspective? And if you were to consider such changes, what could they possibly look like?

Speaker Change: Perfect. Thank you Kent and then I just wanted to follow up on a question Tom had on the competitive landscape. Just curious would you ever consider tweaking the agent compensation structure to further enhance the attractiveness of the platform from the agent's perspective, and if you were to consider such changes what could they possibly look like.

Leo Pareja: And then I just wanted to follow up on a question Tom had on the competitive landscape. Just curious, would you ever consider tweaking the agent compensation structure to further enhance the attractiveness of the platform from the agent's perspective? And if you were to consider such changes, what could they possibly look like? Yeah, so I can't comment on a specific material change. I will tell you that we're constantly looking at it. And I think a good example of that is what we did with Rupture 2.0, which has received massive positive reception from agents with us and the ones that joined since. There were folks that literally said that was why they got off the fence in the last quarter.

Leo Pareja: Yes, I can't comment on a specific material change. I will tell you that we're constantly looking at it, and I think a good example of that is what we did with RefShare 2.0, which has received massive stock-based competition, which I don't think they disclose as clearly as we do. But we actually do an analysis of our competitors and do that. You know, there's a lot of our competitors whose gross margin is some, you know, four or 5% in their core business, and mathematically, they just can't ever get to profitability.

Speaker Change: <unk>.

Speaker Change #100: So I can't comment on specific material change I will tell you that we're constantly looking at it and I think a good example of that is what we did with Rev share to point out which has received massive.

Speaker Change: Positive receptions from agents with us and the ones that joined since there were folks that literally said that was why they got off defense in the last quarter.

Leo Pareja: So we're always looking at that, but I, you know, I would caution that, you know, making sure that you're not giving away the farm to then creating a not sustainable business model, which is what I think a lot of the competitors who trying to be us have done in the sense that their core business, especially once you take out rupture and stock-based competition, which I don't think they disclose as clearly as we do, but we actually do an analysis of our competitors and do that. There's a lot of our competitors who their growth margin is some four or five percent in their core business, mathematically just can't ever get to profitability.

Speaker Change: So we're always looking at that but I would caution that making sure that youre not.

Speaker Change: Given away the farm and then creating a notch.

Speaker Change: Not sustainable business model, which is what I think a lot of the competitors who are trying to be us have done in the sense that their core business, especially once you take out Russia.

Speaker Change: Stock based competition, which I don't think they disclose as clearly as we do but we actually do an analysis of our competitors do that.

Speaker Change: There's a lot of our competitors who their gross margins some.

Speaker Change: Four 5%.

Speaker Change: And their core business mathematically just can't ever get to profitability and so they're banking on ancillary services are yet to be proven economic models to be the growth engine and it just it gets.

Leo Pareja: And so they're banking on, you know, and salary services are yet to be proven economic models to be their growth engine. And I just think it's very dangerous to create a model that never gets to profitability. As we've seen so many examples in the last decade of, you know, well-funded disruptors who were no longer around or struggling to be around because of that. Got it. Thank you, Leo. That makes sense. I'll jump back into Q.

Leo Pareja: And so they're banking on, you know, ancillary services that are yet to be proven economic models to be their growth engine. And I just think it's, it's, it's very dangerous to create a model that never gets to profitability, as we've seen so many examples in the last decade of, you know, well-funded disruptors who were no longer around or struggling to be around because of that.

Speaker Change: It's very dangerous.

Speaker Change: Create a model that never gets to profitability as we have seen so many examples in the last decade.

Speaker Change: Well funded disruptors, who were no longer around or struggling to be around because of that.

Matthew R. Filek: Got it. Thank you, Leo. That makes sense. I'll jump back in the queue.

Speaker Change: Got it. Thank you Leo that makes sense I'll jump back in the queue.

Leo Pareja: Great. Thanks.

Denise Garcia: Great, thanks. I'd like to invite anyone in the audience who would like to ask a question to go to slido.com and enter eXpi if you want to submit a question, or just scan the QR code that's on the right-hand side of the stage and the screen behind us, as we haven't gotten any questions yet. So I'll go to Jonathan Bass from Sieben. John, I think you might have a question. You can open your mic and go ahead.

Speaker Change: And.

Denise Garcia: I'd like to invite anyone in the audience who would like to ask a question to go to Slido.com and enter eXpI if you want to submit a question, or to scan the QR code that's on the right-hand side of the stage and the screen behind us. We haven't gotten any questions yet. So I'll go to Jonathan Bass from Steven. John, I think he might have a question. You can open your right and go ahead. Yep, thank you, Denise. So this is Jonathan on for John. So looking at the op-ax line and stripping out at one time or from last quarter, it looks like op-ax decreased modestly from one to you despite a much higher rev phase.

Speaker Change: I would like to invite anyone in the audience would like to ask a question to get to fly their dot com and <unk> want us to read a question arent just scan the QR code that's on the right hand side.

Speaker Change #111: The stage and screen behind us so we haven't gotten any questions yet so.

Jonathan: I will go to Jonathan <unk> from Stephens, John I think he might have a question you can help me if I can go ahead.

Jonathan Bass: Yep. Thank you, Denise. So this is Jonathan on for John. So looking at the OPEX line and stripping out a one-timer from last quarter, it looks like OPEX decreased modestly from 1Q despite a much higher rev base. So that's great. Can you guys help us frame up how we should think about OPEX for the rest of the year? And then, I think you touched on this in the call, but are you guys still on track to deliver $6.8 million of profit improvement each quarter for the rest of the year?

Jonathan: Yep. Thank you Denise So this is Jonathan on for John.

Jonathan: So looking at the Opex line and stripping out a onetime from last quarter. It looks like Opex decreased modestly from <unk>.

Speaker Change: <unk> despite a much higher revenue base. So that's great can you guys help us frame out frame up how we should think about opex for the rest of the year and then I think you touched on this in the call.

Jonathan Bass: So that's great. Can you guys help us frame out, frame up how we should think about op-ax for the rest of the year? And then I think you touched on this in the call, but are you guys still on track to deliver the 6.8 million of profit and proof in each quarter for the rest of the year?

Speaker Change #103: But are you guys still on track to deliver the $6 8 million of profit improvement each quarter for the rest of the year.

Kent Cheng: Let me address your question. So we don't guide to the quarterly op-ax, but now I will call your attention to a few items, right. Given the success of international business, we expect to continue to invest in this segment in the second half. Now we also expect a single-digit increase in this year's name in the second half, worst first half of 2004, due to an annual adjustment of employee salary, timing of the ESC can't expense, and ongoing legal costs related to anti-chance lawsuit. Given June's low form of assistance themselves, right? We know the election of the US and interest rate, certainty which says some pressure on the revenue side.

Kent Cheng: Let me address your question. So we don't guide you to the quarterly OPEX, but I will call your attention to a few items. Given the success of international business, we expect to continue to invest in December in the second half. Now, we also expect a mid-single-digit increase in SG&A in the second half versus the first half of 2024 due to the annual adjustment of employee salaries, timing of the ESP con expense, and ongoing legal costs related to the anti-trust lawsuit.

Speaker Change: Yes, so maybe let me know.

Bob: Asking a question. So we don't guide to quarterly Opax, Bob and I will call your attention to a few items might give.

Speaker Change #107: Given the success of the international business, we expect to continue invest in December in second half. We also expect mid single digit increase in SG&A in second half versus first half auto neutral due to annual adjustment of employee salary.

Bob: A comment after ESP con expense and ongoing legal costs related to antitrust lawsuit.

Kent Cheng: Given June's low point of existing home sales, right? We know that the election of the U.S. and interest rate certainty mean we expect some pressure on the revenue side. So this is one of the general guidelines we see in the second half, particularly on the SG&A side. What's your second question? John, Jonathan, you

Speaker Change #106: <unk> joins low torn off is the small cell side.

Jonathan: No.

Speaker Change #102: <unk> of the U S and interest rate certainty, we suffered some pressure on the revenue side. So this is one of the general guideline achieved in second half, particularly as last year in Asia.

Kent Cheng: So this is one of the general guidelines we see in the second half, particularly in the last year's name side. Yeah. What's your second question? John, Jonathan. Are you guys still on track to deliver the 6.8 per quarter of the profit and proof it? Yeah, we are on track. Over all the four years, it's a 20 million. Perfect.

Jonathan: Yes.

Jonathan: Okay second question John Jonathan.

Jonathan Bass: Are you guys still on track to deliver the 6.8? per quarter of profit and improvement?

Jonathan: Are you guys still on track to deliver the $6 eight per quarter the profit improvement.

Kent Cheng: Yeah, we are on track. The overall, full year budget is $20 million. Okay. Perfect.

Jonathan: Yes, we are on track the overall the full years 2000 $20 million.

Jonathan: Coffee improvement.

Jonathan Bass: Perfect. And as a follow-up, maybe for you, Glenn, given your focus on the international business of late, can you maybe highlight which markets performed well in 2Q24 and which markets you're most excited about?

Glenn Sanford: And as a follow-up, maybe for Euclid, given your focus on the international business of late, can you maybe highlight what markets performed well in 2Q, 24 and what markets you're most excited about? Yeah, so, we've got a lot of countries really picking up some good steam. South Africa is probably one of our really significant growth parts of the company. I think we were just voted. I believe the most agent-friendly brokerage in South Africa by some independent agent agency. I don't remember the exact term, but it was kind of a cool accolade. We're getting a lot aware now.

Jonathan: Perfect and as a follow up maybe for you Glenn given your focus on the.

Glenn: The international business of late can you maybe highlight what markets performed well in <unk> 24, and what markets you're most excited about.

Glenn Darrel Sanford: Um, yeah, so the We've got a lot of countries really picking up some good steam. South Africa is probably one of our really significant growth parts of the company. I think we were just voted the most agent-friendly brokerage in South Africa by some independent region agency. I don't remember the exact term, but it was kind of a cool accolade. We're getting a lot of attention now that we're the fastest growing brokerage in the history of real estate.

Glenn: Yeah. So.

Glenn: Pete.

Glenn: We've got a lot of countries really picking up some goods team.

Speaker Change: South Africa is probably our one of our really.

Jonathan: Significant growth.

Jonathan: Parts of the company I think we were just voted I believe.

Jonathan: The most agent friendly brokerage in South Africa by some independent region Agency I don't remember the exact term, but it was kind of a it was a cool accolade, we're getting a lot of it were no but.

Glenn Sanford: But we're the faster growing brokerage in the history of real estate there, similar to what we've done, obviously in the US, Canada, and some other countries as well. But South Africa, UK, France, Spain; we should have another pretty significant high volume team of Portugal joining here in the short run. But what we are doing. And what is, we're actually going back to the question about agent value proposition earlier, which I think was more geared toward domestic, but we're actually going back to each country and re-evaluating. Do we have the right value prop mix for that country because every country is different.

Jonathan: We're the fastest growing brokerage in the history of <unk>.

Glenn Darrel Sanford: They're similar to, you know, what we've done, obviously in the US, Canada, and some other countries as well. But South Africa, UK, France, Spain, we should have another pretty significant high volume team from Portugal joining here in the short run. But what we are doing, which is we're actually going back to, there was a question about agent value proposition earlier, which I think was more geared toward domestic, but we're actually going back to each country and re-evaluating, do we have the right value proposition mix for that country? Because every country is different.

Jonathan: Estate there similar to what we've done obviously in the U S.

Jonathan: Canada and smoke other countries.

Jonathan: As well, but South Africa U K, France.

Jonathan: Spain.

Jonathan:

Jonathan: We should have.

Jonathan: Another pretty significant high volume team of Portugal, joining here and there.

Jonathan: The short run.

Jonathan: But what we are doing.

Jonathan: Yeah.

Jonathan: As we are actually going back to <unk>.

Speaker Change: There was a question about agent value proposition earlier.

Speaker Change: Which I think it was more geared toward domestic but we're actually going back to each country and reevaluating do we have the right value prop mix for that country because every country is different.

Glenn Darrel Sanford: Some of the tools and technologies that we rolled out initially, while good for the brokerage, meaning that they helped us sort of streamline some operations-type elements, weren't as agent-friendly as we needed them to be. And as a result, they created a challenge for us to grow in those countries. And what we found is that the countries who have adopted more localized systems and tooling, and some of that has to do, quite frankly, with the really significant, really amazing leaders that we have in some of these countries. But they've been very insistent that these are the platforms that we need to use, and we've adopted those. And in a lot of cases, that actually resulted in a change in our trajectory in those countries.

Glenn Sanford: Some of the tools and technologies that we rolled out initially, while good for the brokerage, meaning that it helped us sort of streamline some operations-type elements, weren't as agent-friendly as we need them to be. And as a result, you know, it created a challenge to grow in those countries. And what we found is the countries who have adopted more localized systems and tooling, and some of that has to do, quite frankly, about the really significant, really amazing leaders that we have in some of these countries. But they've been very insistent that, you know, here's the platforms that we need to use, and we've adopted those. And in a lot of cases, that actually resulted in a change in our trajectory in those countries.

Speaker Change: Some of the tools and technologies that we've rolled out.

Speaker Change: Initially.

Speaker Change: While good for the brokerage, meaning that it helped us sort of streamline some operations type.

Speaker Change: Type elements Werent as Egypt friendly as we need them to be and as a result.

Speaker Change: It created a challenge to grow in those countries and what we found is the countries who have adopted more localized systems and tooling and some of that has to do quite frankly about the really significant.

Speaker Change: Really amazing leaders that we have in some of these countries.

Speaker Change: But they've been very insistent that here's the platforms that we need to use them. We've adopted those and a lot of cases that actually resulted in a change in our trajectory in those countries. So.

Glenn Sanford: So we're going through evaluating the agent value proposition, evaluating country leaders. We're also evaluating how we're actually comping in country leaders. We're actually moving more to an incentive-based model rather than a salary-based model. So that should lower our cost to operate in country in the early stages or even at scale. So pretty exciting, excited about that. And so those are some highlights on the international front.

Glenn Darrel Sanford: So we're going through evaluating the agent value proposition, evaluating country leaders, and we're also evaluating how we're actually comparing in-country leaders. We're actually moving more to an incentive-based model rather than a salary-based model, so that should lower our cost to operate in-country in the early stages or even at scale. So I'm pretty excited about that. And those are some highlights on the international front. We'll have some other ways to, for those who are interested in international, we get more visibility as to how we're doing there, but it feels like the early days of eXp internationally.

Speaker Change: We're going through evaluating the agent value proposition evaluate and country leaders. We're also evaluating how we're actually comping.

Speaker Change: In country leaders, who are actually moving more to an incentive based model rather than a.

Speaker Change: Salary based.

Speaker Change: Model so.

Speaker Change: That should lower our cost.

Speaker Change: To operate in country.

Speaker Change: In the early stages or even at scale. So.

Speaker Change #108: Pretty exciting.

Jonathan: Excited about that.

Jonathan: So those are some highlights on the international front, we will have some other ways to if for those who are entrust internationally, we get more visibility as to how we're doing there but.

Glenn Sanford: Well, we'll have some other ways to, for those who are interested in international, we get more visibility as to how we're doing there, but, you know, that's, you know, it feels like the early days of EXP internationally. Got it.

Jonathan: That's it feels like the early days of DXP internationally.

Jonathan Bass: Got it. Thanks for taking my questions.

Glenn Sanford: Thanks for taking my questions. Sure, and we do have one question from the audience on Slido. The person asked, over the past year, it looks like many of the executives in EXP have sold stock; none have bought any, and I've had a couple agents ask, is that a red flag? I'll just comment on for me personally, I have a 10 B51 plan in place that has historically targeted between 3 and 5% of my holdings being sold in a given year. So obviously taking a lot of years to sell, so that that's probably, and I'm still the by far the single largest shareholder.

Speaker Change #113: Got it thanks for taking my questions.

Denise Garcia: Sure. And we do have one question from the audience on Slido. The person asked, over the past year, it looks like many of the executives in eXp have sold stock, none have bought any, and I've had a couple agents ask, is that a red flag?

Jonathan: Sure.

Speaker Change #104: We do have one question from the audience on slide out.

Jonathan: And.

Speaker Change #101: Personnel over the past year and it looks like many of the exact clinical ESP installed stock not have bought any in <unk> had a couple of agents asked was that a red flag.

Glenn Darrel Sanford: I'll just comment on, for me personally, I have a 10B51 plan in place that has historically targeted between 3 and 5% of my holdings being sold in a given year. So obviously, it takes me a lot of years to sell. So that's probably, and I'm still by far the single largest shareholder, so it's not like I'm dumping shares, but it is creating a little bit of cashflow for me personally. I think most of the other folks, I think we had a couple execs, one last year, did sell all of his position and then left, actually left the company. So that would be another one. But I think, for the most part, it's very modest in terms of the selling that's taking place.

Speaker Change #105: I'll just comment on.

Speaker Change #110: For me personally I have a <unk> one plan in place.

Speaker Change #110: Historically targeted between three and 5% of my holdings being sold.

Jonathan: On a given year, so obviously it ticked me.

Jonathan: A lot of years to sell so that's probably.

Jonathan: I am still the bi.

Glenn Darrel Sanford: By far the single largest shareholder so its not like im jumping shares, but it is creating a little bit of.

Glenn Sanford: So it's not like I'm dumping shares, but it is creating a little bit of, you know, cash flow for me personally. I think most of the other folks, I think we had a couple of execs one last year did sell all of his position and then left actually left the company. So that would be another one, but I think for the most part is very modest in terms of the selling that's taking place.

Jonathan: Cash flow for me personally I.

Jonathan: I think most of the other.

Jonathan: Folks I think we had a couple <unk> one last year.

Jonathan: Did.

Jonathan: So all of his position and then left actually left the company.

Jonathan: So that would be another one but I think for the most part it's very modest in terms of the.

Jonathan: Selling that's taking place.

Denise Garcia: Thanks, Glenn.

Denise Garcia: That concludes our question-and-answer session. Thank you, everyone, for joining us.

Jonathan: Okay.

Tom: Thanks, Tom.

Denise Garcia: That concludes our question-and-answer session. Thank you, everyone, for joining. As always, please stay connected by visiting eXp World Holdings for the latest updates on eXp news, results, and events. Additionally, you'll find a recording of this call in our latest investor presentation on the Investors' section of the site.

Speaker Change #112: That concludes our question and answer session.

Speaker Change: Thank you everyone for joining as always please stay connected by visiting ESP holdings for the latest updates on <unk> results and events. Additionally, you will find a recording of this call and our latest investor presentation on the investors section of the site yes.

Denise Garcia: As always, please stay connected by visiting eXp World Holdings for the latest updates on eXp News results and events. Additionally, you'll find a recording of this call and our latest investor presentation in the investors section of the site. So this concludes our second quarter 2024 earnings fireside chat. Thanks for joining us.

Denise Garcia: This concludes eXp World Holdings second quarter, 2024 earnings fireside chat.

Speaker Change #114: This concludes the <unk> World Holdings' second quarter 2024 earnings Fireside chat thanks for joining.

Denise Garcia: Thanks for joining.