Q1 2025 eXp World Holdings Inc Earnings Call

May 6, 2025

Yeah.

Alright, good afternoon, and welcome to the NXP for World Holdings' first quarter 2025 earnings Fireside chat via live stream and our med adverse on the web frame.

Denise Garcia: My name is Denise Garcia and I manage Investor Relations for ESP World Holdings today, we will begin our fireside chat with remarks from Glen Sanford founder Chairman and CEO of E X P World Holdings, Leo Pereira CEO of ESP royalty when the foresight CMO of ESG Realty Jessie Hill.

Denise Garcia: Interim Chief Financial Officer of ESP World Holdings, and Felix Bravo, Managing director International following our prepared remarks, we will open the call to a Q&A session with our speakers, but first let's begin with a review of the forward looking statements.

Speaker Change: <unk> been having an issue turning the slides.

Denise Garcia: Oh.

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.

Speaker Change: 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 as a reminder, today's call is being recorded and a.

Speaker Change: A replay will also be made available on ESG World Holdings Dot com.

Speaker Change: Now for a few logistics and we will get started.

Speaker Change: Welcome to our met averse on the web for those of you joining and frame today.

Speaker Change: To zoom into a specific screen you can click on that screen and then click zoom in if the content on the screen disappears or if you lose audio simply refresh your page while in frame. If you need help just use the help button at the bottom right to link with tech support.

Now for a few logistics and we'll get started.

Welcome to our met averse on the web for those of you joining and frame today.

Zoom into a specific screen you can click on that screen and then click zoom in if the content on the screen disappears or if you lose audio simply refresh your page while in frame. If you need help just used to help button at the bottom right to link with tech support.

Speaker Change: 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 <unk> Dot com and typing the event code E X P. I from there you can submit a question or vote up an existing question by giving a thumbs up if you would like that question.

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 <unk> Dot com and typing the event code E X P. I from there you can submit a question or vote up an existing question by giving a thumbs up if you would like that question.

Speaker Change: This screen will remain up and on the right hand side of the stage.

Glenn: Now I'll turn the fireside chat over to our speakers before opening the call to questions. Glenn you may begin.

Glenn: Okay. Thanks, Denise and thank you everyone joining us here today from Adrian to shareholders partners and obviously teammates across the World. Your continued support is what makes this platform work and we don't take it for granted.

Asked this screen would remain up and on the right hand side of the stage.

Glenn: Now I'll turn the fireside chat over to our speakers before opening the call to questions. Glenn you may begin.

Glenn: Okay. Thanks, Denise and thank you everyone joining us here today from agents to shareholders partners and obviously teammates across the World. Your continued support is what makes this platform work and we don't take it for granted.

Speaker Change: Before we jump into the Q1 numbers I want to take a moment to step back and frame.

Speaker Change: What we really built here and it's a platform business made up of four strategic parts DXP real tea in the U S in Canada.

Speaker Change: Our international brokerage.

Glenn: Before we jump into the Q1 numbers I wanted to take a moment to step back and frame, what we really built here and it's a platform business made up of four strategic parts DXP Realty in the Western Canada.

Speaker Change: Division.

Speaker Change: And success enterprises, and framed yard IL, where we're meeting today.

Speaker Change: Together these arent just business units, there and interconnected platform designed to serve agents at every level of their growth journey.

Glenn: Our international brokerage Division.

Glenn: Division.

Glenn: And success enterprises and frame yard Io, where we're meeting today.

Speaker Change: At the center is NXP Realty North America, our engine of profitability and the foundation that has allowed us to invest consistently for more than 15 years that disciplined reinvestment has given us the leverage to expand globally.

Glenn: Together these arent just business units, there and interconnected platform designed to serve agents at every level of their growth journey.

Glenn: At the center is ESP Realty North America, our engine of profitability and the foundation that has allowed us to invest consistently for more than 15 years that disciplined reinvestment has given us the leverage to expand globally.

Speaker Change: All of our offerings and deepen our tech stack, all without needing to chase capital.

Speaker Change: That brings me to international which has been a personal focus for me for about nine months now where we've built a scalable country by country playbook that allows us to launch localized and empower Adrian communities across the world all connected by the same core platform.

Glenn: All of our offerings and deepen our tech stack, all without needing to chase capital.

Glenn: That brings me to international which has been a personal focus for me.

Glenn: <unk> about nine months now, where we've built a scalable country by country playbook that allows us to launch localized and empower agent communities across the world.

Speaker Change: And their success enterprises, our leadership mindset personal development brand for US. This is a media property. It's a strategic part of the eight attorney we believe deeply in whole agent development success allows us to equip our agents and really anyone in our ecosystem with the coaching content and confidence.

Glenn: All connected by the same core platform.

Glenn: And then there are success enterprises, our leadership mindset personal development brand for US. This is a media property. It's a strategic part of the eight attorney we believe deeply in whole agent development success allows us to equip our agents and really anyone in our ecosystem with the coaching content and confidence.

Speaker Change: To lead and finally frame be Arda Io, our immersive technology platform frame is how we future proof our community infrastructure. It's not just virtual meeting space is the architecture of what agent collaboration will look like in the AI era global immersive and always on we've also made heavier.

Glenn: To lead and finally framed <unk> Io our immersive technology platform frame is how we future proof our community infrastructure. It's not just virtual meeting space is the architecture of what EBIT collaboration will look like in the AI era global immersive and always on we've also made heavier.

Speaker Change: And international investment in technology, and AI, particularly in the last few quarters and these are not short term bets. We believe the real real returns on AI, driven productivity automation and platform leverage will show up meaningfully in future periods and we're building now for that future.

Glenn: And international investment in technology, and AI, particularly in the last few quarters and these are not short term bets. We believe the real real returns on AI, driven productivity automation and platform leverage will show up meaningfully in future periods and we're building now for that future our North Star remains.

Speaker Change: Our north Star remains clear to build the most agent centric real estate brokers on the planet every decision every investment every innovation is filtered through that lens. So when we talk about <unk> XP platform. We're talking about all four parts working in harmony DXP Realty North America as the engine international as the.

Glenn: Clear to build the most agent centric real estate brokers on the planet every decision every investment every innovation is filtered through that lens. So when we talk about XP platform. We're talking about all four parts working in harmony DXP Realty North America as the engine International is the expansion frontier.

Speaker Change: Hansen frontier success, as our culture and growth layer and frame VR as our virtual infrastructure.

Speaker Change: No. Other brokerage operates like this and no one else gives age as a platform that includes a full stack marketing suite deep ongoing.

Speaker Change: Personal development through success health and wellness resources, and a fully immersive global collaboration layer with its frame.

Glenn: Success, as our culture and growth layer and frame VR as our virtual infrastructure.

Glenn: No. Other brokerage operates like this and no one else gives agents a platform that includes a full stack marketing suite deep ongoing personal development through success health and wellness resources and a fully immersive global collaboration later with frame everything we're doing whether it's new market launches AIA co.

Speaker Change: Everything we're doing whether it's new market launches AI co pilot or digital community tools is designed to help agents build scalable sustainable businesses before I hand, it off I want to acknowledge the leader sharing the stage with me today, Leo Pereira CEO DXP royalty Jessica Hill interim CFO.

Glenn: Pilots or digital community tools is designed to help agents build scalable sustainable businesses.

Speaker Change: DXP World Holdings, Inc.

Speaker Change: When the foresight CMO for for XP, and Felix Bravo, our new managing director of International.

Before I hand, it off I want to acknowledge the leaders sharing the stage with me today.

Speaker Change: Leo Pereira CEO of ESP royalty, Jessica Hill interim CFO of DXP World Holdings, Inc.

Speaker Change: And finally, a heartfelt thanks to more than 2000 staff working behind the scenes across 26 countries. You are the backbone of this platform your commitment innovation in daily execution makes all of this possible now speaking of global momentum I want to turn it over to Felix Bravo, who will walk you through our newest market launches and share how we're thinking.

Glenn: When the foresight.

Felix Bravo: CMO for for ESP, and Felix Bravo, our new managing director of International.

Speaker Change: And finally, a heartfelt thanks to more than 2000 staff working behind the scenes across 26 countries.

Felix Bravo: About the next phase of international expansion Felix over to you.

Speaker Change: Are the backbone of this platform your commitment innovation in daily execution makes all of this possible now speaking of global momentum I want to turn it over to Felix Bravo, who will walk you through our newest market launches and share how we're thinking about the next phase of international expansion.

Felix Bravo: Thank you Glenn it's an honor to be here today I'm excited to share a quick update on our growth new market launches and where we're headed next international is coming off the back of our strongest quarter ever across all metrics not only was revenue up 103% year over year, but we also had our most successful new country launches to date.

Speaker Change: Over to you.

Felix Bravo: Thank you Glenn it's an honor to be here today I'm excited to share a quick update on our growth new market launches and where we're headed next international is coming off the back of our strongest quarter ever across all metrics not only with revenue up 103% year over year, but we also had our most successful new country launches to date.

Felix Bravo: This year, our international expansion strategy is laser focus we launched operations in Peru, and Turkey, you're currently preparing launches to Egypt.

Felix Bravo: Our long term objective is to reach 50000 agents across 50 countries by 2030, how are we going to get there through strategic launches into high income in emerging markets. You see self managed regionalized teams. This local alignment not only gives us the speed and scalability that we need but it's also a model.

Felix Bravo: This year, our international expansion strategy is laser focused we launched operations in Peru, and Turkey, you're currently preparing launches to Egypt.

Felix Bravo: We have refined over time, what's different this year is how we launch we've revamped our marketing strategy to include any person launches with our international leadership team alongside our local and regional teams. This approach has helped us build the marketing muscle of our organization and more importantly, it has helped us document and Rick.

Felix Bravo: That we've refined over time, what's different this year is how we launch we've revamped our marketing strategy to include in person launches with our international leadership team alongside our local and regional teams. This approach has helped us build the marketing muscle of our organization and more importantly, it has helped us document and read.

Felix Bravo: Find a repeatable playbook for future launches, we're scaling smarter and faster than ever before.

Felix Bravo: Let's take a look at Peru, we have officially launched on March 21, and it was our largest international launch to date, we had over 600 agents attend our kickoff event in Lima and in just the first 30 days more than 100 agents on boarded with transactions already volume Dxd group, the excitement and momentum we've seen.

Felix Bravo: Find a repeatable playbook for future launches, we're scaling smarter and faster than ever before.

Felix Bravo: Let's take a look at Peru, we officially launched on March 21, and it was our largest international launch to date, we had over 600 agents a tender kickoff event in Lima and in just the first 30 days more than 100 agents on boarded with transactions already flowing and EXE, Peru, the excitement and momentum we've seen.

Here shows what's possible when we combine local leadership with a strong global platform.

Felix Bravo: Next up was Turkey, we launched on April 17, and this was another strategic success, one highlight was being able to announce key partnerships live on stage with influential broker owners and team leaders from across the country.

Felix Bravo: Here shows what's possible when we combine local leadership with a strong global platform.

Felix Bravo: That credibility and alignment drove immediate adoption and reinforced our belief that the right local partnerships to accelerate everything.

Felix Bravo: Looking ahead, we're extremely excited about what's next with active we're actively preparing to launch in not just Japan, but also Ecuador with more markets under evaluation every new country as an opportunity not just to grow but to deepen our local presence support agents with better tools and raise the standard of real estate globally.

Felix Bravo: That credibility and alignment drove immediate adoption and reinforced our belief that the right local partnerships accelerate everything.

Felix Bravo: Looking ahead, we're extremely excited about what's next.

Felix Bravo: We're actively preparing for launch and not just Japan, but also Ecuador with more markets under evaluation every new country as an opportunity not just to grow but to deepen our local presence support agents with better tools and raise the standard of real estate globally, Theres real energy behind our movement and we can't wait to share more.

Felix Bravo: There's real energy behind our movement and we can't wait to share more in the months ahead international is scaling rapidly and we're just getting started with that I'll hand, it over to Leo to take us through some highlights for North America, and how were leading across the U S market.

Felix Bravo: Yes.

Leo Pereira: Thank you Felix and thank you for everyone. That's joining us today.

Felix Bravo: In the months ahead international is scaling rapidly and we're just getting started with that I'll hand, it over to Leo to take us through some highlights for North America, and how were leading across the U S market.

Leo Pereira: Clear cooperation is something you've heard me, probably very loud across the media, whether it's CNN Marketwatch Behrens, our business insider I have very strong opinions about this this comes from the March 15th update that NAR delivered on CCP and we've taken very strong stances just like last summer when they delivered the NAR settlement we.

Felix Bravo: Yes.

Speaker Change: Thank you Felix and thank you for everyone. That's joining us today.

Speaker Change: Clear cooperation is something you've heard me, probably very loud across the media, whether it's CNN Marketwatch Behrens, our business insider I am very strong opinions about this this comes from the March 15th update that NAR delivered on CCP and we've taken very strong stances just like last summer when they delivered the NAR settlement we.

Leo Pereira: Made business decisions that superceded, the actual agreement and we've done the same this time, we believe that delayed marketing will create customer confusion and we are not participating.

Leo Pereira: On April 16th I recorded a full length explanation of our stance and our positioning on the subject.

Speaker Change: Made business decisions that superceded, the actual agreement and we've done the same this time, we believe that delayed marketing will creek customer confusion and we are not participating.

Leo Pereira: In late or later slide I'll have the link. So you guys can drop that down if you want a very deep dive.

Leo Pereira: Excellent.

On April 16th I recorded a full length explanation of our stance and our positioning on the subject.

Leo Pereira: On April 10th we made a press release of our partnership with Zillow, where we announced our commitment to transparency and real estate and we will be launching all of our DXP listings on the first day of advertising.

Speaker Change: Made a later slide I'll have the link so you guys can drop that down if you want a very deep dive.

Speaker Change: Excellent.

Speaker Change: On April 10th we made a press release of our partnership with Zillow, where we announced our commitment to transparency and real estate and we will be launching all of our DXP listings on the first day of advertising.

Leo Pereira: Furthermore, I've made that.

Leo Pereira: Available to every other major portal as you can see the vast majority of buyers start online with massive amount of exposure and eyeballs on the biggest portals, so whether it's zillow redfin.

Speaker Change: Furthermore, I've made that.

Speaker Change: Available to every other major portal as you can see the vast majority of buyers start online with massive amount of exposure and eyeballs on the biggest portals, so whether at Zillow redfin.

Speaker Change: And a lot of our vantage point comes from our global footprint, if you see and experience what we see outside of North America, you have a different appreciation for the complete dataset that we enjoy in this country outside of the U S and Canada. It is a fragmented dataset that is inconsistent with confusion that leads to <unk>.

Speaker Change: Truly our homes Dot com, we're happy to give out our API because we want as many eyeballs as soon as possible as we understand the value of having the most exposure for a consumer and a lot of our vantage point comes from our global footprint, if you see and experience what we see outside of.

Speaker Change: Longer days on market and much more difficult in the execution process.

Speaker Change: North America, you have a different appreciation for the complete dataset that we enjoy in this country outside of the U S and Canada. It is a fragmented dataset that is inconsistent with confusion that leads to longer days on market and much more difficult in the execution process.

Speaker Change: Next slide.

Speaker Change: With the update to the CCP requirement there was a new disclosure requirement that was embedded in the rule set it went into effect March of 2025. There is a grace period through September 30th So I don't think theres been much conversation around it but just like last summer, we decided to create our own form one page.

Speaker Change: Next slide.

Speaker Change: It's in simple English, it's really easy to understand.

Speaker Change: And we've made it available.

Speaker Change: Any market participant that wants it.

Speaker Change: You can find it on our website that we can make available here on the next slide and consumers independent brokers anyone who wants the education agents.

Speaker Change: It's in simple English, it's really easy to understand.

Speaker Change: And we've made it available to any market participant that wants it.

Speaker Change: An independent brokers can downloaded it's completely open source like all of our other tools and you can find the video that I referenced where we go into detail about the history, how the Doj has already given us quite a bit of guidance as an industry.

Speaker Change: You can find it on our website that we can make available here on the next slide and consumers.

Speaker Change: Independent brokers anyone who wants the education agents and.

Speaker Change: Now I'll end this subject with a very important reminder, is the open and available data that created the company that you now see before you if the valve feeds could have been isolated and kept away from small independent startup companies like the one Glenn founded we would not be here.

Speaker Change: I'll end this subject with a very important reminder.

Speaker Change: The open and available data that created the company that you now see before you.

Speaker Change: To date.

Speaker Change: We believe in an open market that allows.

Speaker Change: Any startup the ability to compete if they have a valuable proposition for both consumers and agents alike now, let's move on to something I am extremely excited about.

Speaker Change: If the valve feeds could have been isolated and kept away from small independent startup companies like the one Glenn founded we would not be here to date, we believe in an open market that allows.

Speaker Change: Co sponsorship it is effective as of May 1st.

Speaker Change: Any startup the ability to compete if they have a valuable proposition for both consumers and agents alike now, let's move on to something I'm extremely excited about.

Speaker Change: Next slide.

Speaker Change: The power of two that's one primary sponsor plus a co sponsor, which will help agents reached unlimited potential with double the insights and double the impact we call it shared success.

Speaker Change: Co sponsorship it is effective as of May 1st.

Speaker Change: Next slide.

Speaker Change: The power of two <unk>.

Speaker Change: The co sponsorship program was built on a basic framework, let's enable more leaders to support and attract agents beyond their direct organization. The co sponsored program creates a new engine for scalable sustainable agent growth, new agents and advisers now benefit from leadership and experience of two sponsors.

Speaker Change: That's one primary sponsor plus a co sponsor, which will help agents reach unlimited potential with double the insights and double the impact we call it shared success.

Speaker Change: Available offering broader support in faster growth.

Speaker Change: It's got stronger reward rewards co sponsors are in level, one revenue share and the 50% fast start bonus, adding new incentives for experienced leaders to invest an agent's success and the best part with zero disruption the core benefit of the primary sponsor remains untouched, including all revenue share beyond level, one and two.

Speaker Change: Available offering broader support in faster growth.

Speaker Change: It's got stronger rewards rewards co sponsors earned level when revenue share and the 50% fast start bonus, adding new incentives for experienced leaders to invest an agent's success and the best part with zero disruption the core benefit of the primary sponsor remains untouched, including all revenue share beyond level.

Wendy: Stock incentives now I'll turn the call over to Wendy.

Wendy: Thanks, Leo and Hello, everyone. It's a pleasure to be here with you today or Q1 started off with great excitement as we were named the number one company in the country by transactions for the third straight year in a row and this is a tremendous.

Speaker Change: One in stock incentives.

Wendy: Now I'll turn the call over to Wendy.

Wendy: Thanks, Leo and Hello, everyone, it's a pleasure to be here with you today.

Q1 started off with great excitement as we were named the number one company in the country by transaction for the third straight year in a row and this is a tremendous way to start the year and it is in a tremendous achievement.

Wendy: This way to start the year and it is in a tremendous achievement for our organization and one that of course, we are extremely proud of.

Wendy: And it is a great tax finance to be.

Wendy: Amount of work that each one of our agents do out in the market.

Wendy: For our organization and one that of course, we are extremely proud of.

Wendy: Actually and what has been a challenging market across the country. So it is a great opportunity to say thank you to all of our agents here today for making this accomplishment possible and that certainly was a great way to start our Q1 this year with this accomplishment and much like the.

Wendy: And it is a great Testament to the.

Wendy: The amount of work that each one of our agents do out in the market.

Wendy: Actually in what has been a challenging market across the country. So it is a great opportunity to say thank you to all of our agents here today for making this accomplishment possible and that certainly was a great way to start our Q1 this year with this accomplishment and much like the.

Wendy: Entertainment industry, the first quarter as the year is award season here in the real estate industry and we definitely led the way.

Wendy: With many great acknowledgment and a lot of recognition or DXP and the first quarter not only the recognition of being number one in the market.

Wendy: Entertainment industry, the first quarter as the year is award season here in the real estate industry and we definitely led the way.

Wendy: Transactions here in the U S, but I just mentioned, but we were also named for the first time.

Wendy: With many great acknowledgment and a lot of recognition for ESP in the first quarter not only the recognition of being number one in the market by transactions here in the U S. But I just mentioned, but we were also named for the first time.

Wendy: On a very distinguished list by the USA today's top workplaces.

Wendy: This is a particular a prominent because it is a survey done of our employees done by a third party that then ranks feedback by our employees and we were ranked number 18 on this list. So we're particularly proud of this ranking in of this feedback.

Wendy: I'm, a very distinguished list by the USA today's top workplaces and this is a particular a prominent because it is a survey of our employees done by a third party that then ranks feedback by our employees and we were ranked number 18 on.

Wendy: Based on culture and community of our employee base here at DXP.

Wendy: We also received a lot of industry recognition, you'll see a number of the various icons and logos at the bottom or various leaders within our organization and we're very proud of that really speaks to the testament of the importance of our leadership.

Wendy: This list. So we're particularly proud of this ranking and of this feedback based on culture and community of our employee base here at DXP.

Wendy: We also received a lot of industry recognition and Youll see a number of the various an icon and logos at the bottom for various leaders within our organization and we're very proud of as that really speaks to the testament of the importance of our leadership.

Wendy: And of course, many of our leaders have stepped to the forefront in particular Leo that you just heard talk about the many challenges and changes that are happening in our industry and we have very much been a champion and a voice.

Wendy: And of course, many of our leaders.

<unk> to the forefront in particular lay out that you just heard us talk about the many challenges and changes that are happening in our industry and we have very much been a champion and a voice.

Wendy: In some cases reason of what's happening in the industry around clear cooperation and other changes so that's very much been a.

Wendy: Tommy.

Wendy: Our guests in the first quarter of the year. So it was a very active first quarter in terms of the.

Wendy: In some cases reason of what's happening in the industry around clear cooperation and other changes. So that's very much been a prominent part of our focus in the first quarter of the year. So it was a very active first quarter in terms of.

Wendy: Industry thought leadership and recognition and we expect that that will continue throughout the rest of the year.

Wendy: Changing gears, just a little bit we showed you. This graph for the first time in our last fireside chat and I wanted to pull it up and down because we got so many questions about it and so many requests to share. It. After we debuted at last quarter and this is what we call our value.

Wendy: Industry thought leadership and recognition and we expect that that will continue throughout the rest of the year.

Wendy: You stack and what we wanted to do is put together for you.

Wendy: All in one place all of the various tools and services and technology that we have available for our agents to operate their business and categorize them in a very simple way. It's a classic sort of won a geron I'm a big fan of as the one.

Wendy: You stack and what we wanted to do is put together for you all in one place all of the various tools and services and technology that we have available for our agents to operate their business and categorize them in a very simple way.

Wendy: And I loved and I'm going to borrow this analogy from one of our agents when we shared this at our mastermind in February the way that he described the FCC said that being at EXLP is like having access to the very vast buffet that.

Wendy: A classic sort of one page era, and I'm, a big fan of as the one pager and.

Wendy: I loved and I'm going to borrow this analogy from one of our agents when we shared this at our mastermind in February the way that he described this as he said that being an ESP is like having access to the very vast buffet that has like the best food.

Wendy: Like the best food ever on it or you can go to that buffet three times, a day and get them the best meal.

Wendy: Every time you go to that buffet, you don't kick everything off of the buffet to eat every time you go to sit down to eat you pick a different things depending on what you are looking to do and what you need to Julia body or fuel year business. In this case to use the analogy.

Wendy: Ever on it you can go to that buffet three times, a day and get them. The best meal ever every time you go to that buffet you don't pick everything off of the buffet to eat every time you go to sit down to eat you pick a different things depending on what year look.

Wendy: And that's exactly what our agents here at <unk> had the opportunity to do every day is take this from the value stack.

Wendy: King.

Speaker Change: <unk> and what you need to fuel your body or fuel year business. In this case to use the analogy and that's exactly what our agents here at DXP had the opportunity to do every day is take this from the value stack the tools services and technology that they need at a particular.

Wendy: Tools services and technology that they need at a particular time to fuel their business and get their business to that next level. So allow me to give you. The analogy building off that analogy and example of some of the top tools, we've seen in Q1 our agents.

Speaker Change: Turn to fuel their business and get their business to that next level.

Wendy: Leverage in their businesses and we're seeing our agents use these tools to build their brands lean into building their skills throughout a changing market and.

Speaker Change: Allow me to give you the analogy building off that analogy and example of some of the top tools. We've seen in Q1, our agents leverage in their businesses and we're seeing our agents use these tools to build their brands lean into building their skills throughout <unk>.

Wendy: To leverage these tools into the process management and the operational side of their businesses and we're seeing increased usage of our agents from these tools so to add some numbers to this so that you can see some of the the actuality of this towards here are some examples and taking from this.

Speaker Change: <unk> market and <unk>.

Speaker Change: Leverage these tools into the process management and the operational side of their businesses and we're seeing increased usage of our agents from these tools so to add some numbers to this that you can see some of the the actuality of this 12, here's some examples and taking from this.

Wendy: For Canada from building brand and we knew that Canada was such a critical tool when we rolled it out last year, we rolled it out in December and immediately saw tremendous adoption of the tool going into Q1, we averaged just under 3500 unique design.

Speaker Change: For Canada from building brand and we knew that Canada was such a critical flow when we rolled it out last year, we rolled it out in December and immediately saw tremendous adoption of the tool going into Q1, we averaged just under 3500 unique design.

Wendy: <unk> per day, and we saw just over 4700, almost 4800 designs per day, either published shared or downloaded by our agents. So we're seeing tremendous adoption of Canada as a design oriented technology tool for our age.

Speaker Change: <unk> per day, and we saw just over 4700, almost 4800 designs per day, either published shared or downloaded by our agents. So we're seeing tremendous adoption of Kansas as a design oriented technology tools for our agent.

Wendy: <unk> in their businesses.

Leo Pereira: We're also seeing our agents continue to invest in developing their skills and I think this is particularly important as Leo talked about all the changes that are happening in the industry the importance of staying up to date.

Speaker Change: <unk> in their businesses.

Speaker Change: We're also seeing our agents continue to invest in developing their skills and I think this is particularly important as Leo talked about all the changes that are happening in the industry the importance of staying up to date.

Leo Pereira: We're seeing our agents shell up and get out with our University programs at a higher rate in fact, we saw 118% increase in attendees and views of ESP University trainings.

Speaker Change: We're seeing our agent show up and get out with our University programs at a higher rate in fact, we saw a 118% increase in attendees and views of DXP University trainings.

Leo Pereira: Q1 year over year, so great adoption and participation in our ESP University programs.

Leo Pereira: Similar with market expansion, our ESP luxury program continues to grow and continues to be well adopted by our agents with a 36% increase in ESP luxury revenue quarter over quarter.

Speaker Change: Q1 year over year, so great adoption and participation in our ESP University programs.

Speaker Change: Similar with market expansion, our ESP luxury program continues to grow and continues to be well adopted by our agents with a 36% increase in ESP luxury revenue quarter over quarter.

Leo Pereira: And lead generation continues to be a focus for our agents and to our various lead generation programs offered to ESP revenue <unk> XP solutions, we've seen our referral team's facilitate 70% more closed deals year over year Q1 from 2024 to <unk>.

Speaker Change: And lead generation continues to be a focus for our agents and to our various lead generation programs offered to ESP revenue and ESP solutions, we've seen our referral team's facilitate 70% more closed deals year over year Q1 from 2024 to <unk>.

Leo Pereira: 25, so we're very happy with the increased adoption increase participation and of course that balanced zac coming to life every single day.

Leo Pereira: Our agents.

Leo Pereira: We also continue to attract the very best of the best two ESP, our tagline of where the pros go to grow is true and every single day, we welcome new agents to ESP are truly the best in the business.

Speaker Change: 25, so we're very happy with the increased adoption increased participation and of course that value stack coming to life every single day for our agents.

Speaker Change: We also continue to attract the very best of the best two ESP, our tagline of where the pros go to grow is true and every single day, we welcome new agents to ESP were truly the best in the business.

Leo Pereira: And three of those examples from the last quarter are highlighted here and I want to.

Leo Pereira: Really call out one of the the trends that we have discussed in the past that we're continuing to see independent brokerages.

Speaker Change: And three of those examples from the last quarter are highlighted here and I want to.

Leo Pereira: Merge into and shoes ESP as a platform for other businesses.

Speaker Change: And Kelly followed tariff do you see on the left on the screen is an example of that she ran a very successful independent brokerage and decided to join US here at <unk> with her and her team.

Speaker Change: Really call out one of the the trends that we have discussed in the past that we're continuing to see independent brokerages.

Speaker Change: Merge into and shoes ESP as a platform for other businesses.

Speaker Change: And it's really an opportunity for many independent brokerages to look at what the future of brokerage looks like.

Speaker Change: And Kelly <unk>, who you see on the left on the screen is an example of that she ran a very successful independent brokerage and decided to join US here at EXLP with her and her team.

Speaker Change: And really align in a different way to run their businesses as negative leaders and his team leaders under our ESP umbrella and our growth team is having those conversations every single day with independent brokerages across the country and we expect to see that trend.

Speaker Change: And it's really an opportunity for many independent brokerages to look at what the future of brokerage looks like and really align in a different way to run their businesses as mega team leaders and his team leaders under our ESP umbrella.

Speaker Change: Continue as we go through the current market conditions.

Speaker Change: We also see teams and solo agents as you see the other two examples that we pulled here continue to choose <unk> as their destination brokerage. So we're very excited to continue to welcome these agents and be that brokerage or the crows out in the industry and to choose.

Speaker Change: And our growth team is having those conversations every single day with independent brokerages across the country and we expect to see that trend continue as we go through the current market conditions.

Speaker Change: To partner with.

Speaker Change: Last up we successfully executed in Q1, our first of our three major ESP con events for 2025 and that was <unk> in Montreal.

Speaker Change: Which I guess technically happened just outside of Q1. It happened the first of April but the planning for it definitely happened in Q1.

Speaker Change: To partner with.

Speaker Change: Last up we successfully executed in Q1, our first of our three major ESP con events for 2025 and that was <unk> in Montreal.

Speaker Change: We had the ESP on Montreal, and the first steps first four days of April It was a tremendous event very successful we had a higher attendance rate than the previous year, we're now into planning.

Speaker Change: And which I guess technically happens just outside of Q1. It happened the first of April but the planning for it definitely happened in Q1.

Speaker Change: XD Khan of Barcelona, and DXP Con Miami events for this year and very much looking forward to welcoming our <unk> XP agents across the globe at home with us.

Speaker Change: We had the ESP con Montreal and the first steps first four days of April It was a tremendous event very successful we had a higher attendance rates than the previous year, we're now into planning.

Speaker Change: And with that I am going to hand, the floor over to Jessie Hill, our interim Chief Financial Officer Jesse <unk>.

Speaker Change: DXP Khan of Barcelona, and DXP Con Miami events, or this year and very much looking forward to welcoming our ESP agents across the globe apples with us.

Jesse Hill: Thank you Wendy.

Jesse Hill: He used to be here to present earnings as the interim CFO just a quick introduction for those that May not know me I've been at ESP for over six years I've had the opportunity to lead finance teams in every business segment and the company. Most recently heading up the international finance team as well as the corporate SG&A team and I look forward to sharing more details about the business over.

Speaker Change: And with that I am going to hand, the floor over to Jessie Hill, our interim Chief Financial Officer, Jesse over to you.

Jessie Hill: Thank you Wendy.

Jessie Hill: I am pleased to be here to present earnings as the interim CFO.

Jessie Hill: A quick introduction for those that May not know me I've been at DXP for over six years I've had the opportunity to lead finance teams in every business segment and the company. Most recently heading up the international finance team as well as the corporate SG&A team.

Jesse Hill: Raul and walking everyone through our financial and operational highlights for Q1 2025, starting on the next slide.

Jesse Hill: Starting with revenue, we generated $954 9 million in the first quarter. Despite admittedly a continued tough macroeconomic environment.

And I'm looking forward to sharing more details about the business overall and walking everyone through our financial and operational highlights for Q1 2025, starting on the next slide.

Jesse Hill: Real estate sales volume was up 4% in the first quarter driven by an increase in home sales price as well as increased productivity in our international segment.

Jessie Hill: Starting with revenue, we generated $954 9 million in the first quarter. Despite admittedly a continued tough macroeconomic environment.

Jesse Hill: We did see a lower agent count at 81904. However, we saw an increase in transactions per agent, which indicates that we do continue to attract and retain the highest productive agents in the industry.

Jessie Hill: Real estate sales volume was up 4% in the first quarter driven by an increase in home sales price as well as increased productivity in our international segment.

Jesse Hill: Majority of our departing agents continue to be in the low producing cohort of zero to two sales per year.

Jessie Hill: We did see a lower agent count at 81904. However, we saw an increase in transactions per agent, which indicates that we do continue to attract and retain the highest productive agents in the industry.

Jesse Hill: Our non-GAAP gross margin and we use this metric it's a comparable benchmark to what other brokerages in the industry use it pulls out stock comp and revenue share was 13%. This was 70 basis points down from prior year. Our GAAP gross margin was 8%, which was 30 basis points down from prior year and both of these were.

Jessie Hill: The majority of our departing agents continue to be in the low producing cohort of zero to two sales per year.

Jessie Hill: Our non-GAAP gross margin and we use this metric it's a comparable benchmark to what other brokerages in the industry use it pulls out stock comp and revenue share was 13%. This was 70 basis points down from prior year. Our GAAP gross margin was 8%, which was 30 basis points down from prior year and both of these were.

Jesse Hill: <unk> impacted due to the high producing agents that we saw in Q1 is that as I mentioned, we saw a notch up in transactions per agent and when that happens you generally have more agents cap and thats, what we saw here, which puts some downward pressure on our margin percentage.

Jesse Hill: Our adjusted EBITDA was $2 2 million, which continues to be positive that was down year over year, partially driven by the margin compression that I just mentioned as well as increased investments in the agent value stack, So technologies, such as canvas CSU fixer.

Jessie Hill: Impacted due to the high producing agents that we saw in Q1 is that as I mentioned, we saw a notch up in transactions per agent and when that happens you generally have more agents cap and thats, what we saw here, which puts some downward pressure on our margin percentage.

Jessie Hill: Our adjusted EBITDA was $2 2 million, which continues to be positive that was down year over year, partially driven by the margin compression that I just mentioned as well as increased investments in the agent value stack, So technologies, such as canvas CSU fixer.

Jesse Hill: Internally, we've been using AI quota.

Jesse Hill: And other additional tools to find efficiencies to support the brokerage and the back office and so as we continue these investments to build out the agent value stack can have more efficient operations, we do see some incremental expenses here, which compressed our adjusted EBITDA.

Jessie Hill: Internally, we've been using AI coda.

Jessie Hill: And other additional tools to find efficiencies to support the brokerage and the back office and so as we continue these investments to build out the agent value stack can have more efficient operations, we do see some incremental expenses here, which compressed our adjusted EBITDA.

Jesse Hill: That said I will say this we are actively reviewing our expenses, we acknowledge the headwinds at our largest market. The U S is facing.

Jesse Hill: And we as a leadership team are building a plan to have more efficient operations in the back half of 2025.

Jesse Hill: Cash continue to be strong we ended the quarter up 6% year over year with $115 7 million in cash.

Jessie Hill: That said I will say this we are actively reviewing our expenses, we acknowledge the headwinds at our largest market. The U S is facing and we as a leadership team are building a plan to have more efficient operations in the back half of 2025.

Jesse Hill: Now on the next slide I will take you through our financial results by segment for the quarter.

Jesse Hill: In North America royalty segment continues to be the largest revenue and profit generator for the company.

Jessie Hill: Cash continue to be strong we ended the quarter up 6% year over year with $115 7 million in cash.

Jesse Hill: North America revenue was $923 million for Q1 with adjusted EBITDA of $7 7 million.

Jessie Hill: Now on the next slide I'll take you through our financial results by segment for the quarter.

Jesse Hill: I would like to note on this slide for the first time, we're showing operating loss or income by segment.

Jessie Hill: In North America <unk> segment continues to be the largest revenue and profit generator for the company.

Jesse Hill: An additional view that we utilize internally as a leadership team and we wanted to begin including that for our analyst and investor perspective here.

Jessie Hill: North America revenue was $923 million for Q1 with adjusted EBITDA of $7 7 million.

Felix Bravo: International continues to stay at a scale as Felix mentioned.

Jessie Hill: I would like to note on this slide for the first time, we're showing operating loss or income by segment.

Felix Bravo: Revenue was up 103% year over year, and we significantly narrowed our adjusted EBITDA loss, which improved 52% year over year.

Jessie Hill: One additional view that we utilize internally as a leadership team and we wanted to begin including that for our analyst and investor perspective here.

Felix Bravo: I will note something specific and you know now in 26 markets and growing we won't take you through every macroeconomic events in every country, but there was a pretty big tax change in the U K in April and we think that that affected negatively impacted buyers. It's an additional tax if they see depending on the wholesale price.

Speaker Change: International continues to stay at scale as Felix mentioned.

Speaker Change: Revenue was up 103% year over year, and we significantly narrowed our adjusted EBITDA loss, which improved 52% year over year.

Speaker Change: I will note something specific and you know now in 26 markets and growing we won't take you through every macroeconomic events in every country, but there was a pretty big tax change in the U K in April and we think that that affected negatively impacted buyers. It's an additional tax if they see it depending on the wholesale price.

Felix Bravo: And we think that that pulled forward some transactions into February and March and as that is one of our more material markets probably positively impacted our revenue here in Q1, and so it's more or less going to be pull forward from Q2.

Felix Bravo: And with the really strong growth that we have overall in the segment were not too concerned with it but I did just want to call out that Nokia for transparency.

Speaker Change: And we think that that pulled forward some transactions into February and March and as that is one of our more material markets. It probably positively impacted our revenue here in Q1, and so it's more or less going to be pull forward from Q2 and with the really strong growth that we have overall in the segment were not too concerned with it but I did just want to call out that Nokia for transparency.

Felix Bravo: Our other affiliated services segment, which is primarily success contributed modest revenue growth and an adjusted EBITDA loss of $1 5 million.

Felix Bravo: Now on the next slide we'll take a quick look at some of our agent productivity statistics.

Felix Bravo: So whats driving these results on the top end, where we are maintaining our market position.

Speaker Change: Our other affiliated services segment, which is primarily success contributed modest revenue growth and an adjusted EBITDA loss of $1 5 million.

Felix Bravo: What is really a challenging macroeconomic environment in the United States is that.

Speaker Change: Now on the next slide we'll take a quick look at some of our agent productivity statistics.

Felix Bravo: We do continue to maintain and add high quality highly productive agents, which we show here. This is our agent attrition in Q1, and we show it by law.

Speaker Change: So what is driving these results on the top end, where we are maintaining our market position.

Felix Bravo: Loss of agents and the productive cohort that they are in and so you can see that the majority of our departing agents are in the lowest producing cohort was 77% of agent attrition, having zero to two sales and then the logic flows down the more productive our agents are the stickier they are and our most productive agent.

Speaker Change: It's really a challenging macroeconomic environment in the United States.

Speaker Change: We do continue to maintain and add high quality highly productive agents, which we show here. This is our agent attrition in Q1, and we show it by.

Speaker Change: Loss of agents and the productive cohort that they are in and so you can see that the majority of our departing agents are in the lowest producing cohort was 77% of agent attrition, having zero to two sales and then the logic flows down the more productive our agents are the stickier they are and our most productive age.

Felix Bravo: Base 21, plus sales was only 2% of our attrition in Q1.

Felix Bravo: One one additional start I'd, just like to call out here, while we're talking agent attrition, we actually saw this metric materially improved this quarter it improved 22% year over year. So while we did see a net agent down we see this metric improving overall as we continue into 2025 here.

Speaker Change: Base 21, plus sales was only 2% of our attrition in Q1.

Speaker Change: One one additional start I'd, just like to call out here, while we're talking agent attrition, we actually saw this metric materially improved this quarter it improved 22% year over year. So while we did see a net agent down we see this metric improving overall as we continue into 2025 here.

Felix Bravo: And now in the last slide I'll take us through just a summary of all of these results our agent NPS actually hit a record for Q1, so highest all time Q1, NPS at 78 versus <unk> 73 in prior year and this speaks to the agent value stack that I discussed and that we continue to recruit the highest productive age.

Speaker Change: And now in the last slide I'll take us through just a summary of all of these results our agent NPS actually hit a record for Q1, so highest all time Q1, NPS at 78 versus 73 in prior year and this speaks to the agent value stack that I discussed and that we continue to recruit the highest productive <unk>.

Felix Bravo: Once and retain them as well.

Felix Bravo: Sales volume per transaction was up 6% year over year, driven by a 4% increase in volume and 2% increase in agent productivity.

Felix Bravo: We do continue to achieve positive adjusted EBITDA with $2 2 million in the first quarter <unk>.

Speaker Change: <unk> and retain them as well.

Felix Bravo: International revenue continued to gain momentum and scale with a 103% revenue growth year over year, driven by all time high and productive agent count and an adjusted EBITDA loss improvement by 52% year over year.

Speaker Change: Sales volume per transaction was up 6% year over year, driven by a 4% increase in volume and 2% increase in agent productivity.

Speaker Change: We do continue to achieve positive adjusted EBITDA with $2 2 million in the first quarter International.

Felix Bravo: And finally, we ended the quarter with a strong cash position of $115 7 million, which provides us with the flexibility to navigate the current market environment and also invest strategically should opportunities present themselves.

Speaker Change: <unk> revenue continued to gain momentum and scale with 103% revenue growth year over year, driven by all time high and productive agent count and an adjusted EBITDA loss improvement by 52% year over year.

Denise Garcia: With that said I'd like to turn the presentation back to Denise who will facilitate the Q&A. Thank you.

Speaker Change: And finally, we ended the quarter with a strong cash position of $115 7 million, which provides us with the flexibility to navigate the current market environment and also invest strategically should opportunities present themselves.

Denise Garcia: Great. Thanks, Jesse I'll kick off with a question for everyone on the team before we open the call to your questions generally.

Denise Garcia: Glen can you share more details on how <unk> is leveraging AI now and what it enables exa platform might look like in the future.

Speaker Change: With that said I'd like to turn the presentation back to Denise who will facilitate the Q&A. Thank you.

Denise: Alright, Thanks, Jesse I'll kick off with a question for everyone on the team before we open the call to your question is generally.

Speaker Change: Yeah. So thanks, thanks, Thanks, Denise for the.

Denise Garcia:

Denise Garcia: So.

Glen: Glen can you share more details on how <unk> is leveraging AI now and what it enables exa platform might look like in the future.

Denise Garcia: We are.

Denise Garcia: We have been kind of in this forward now for about two years of really getting.

Denise Garcia: Two a pivot point, where we can actually make rapid changes with with AI.

Speaker Change: Yes. Thanks.

Glen: Thanks, Denise for the questions.

Denise Garcia: We did a enterprise deal with open AI, but a year ago of course Theres a lot of other tools now that are available we're big.

Speaker Change: So.

Speaker Change: We are.

Speaker Change: We have been kind of in this mode now for about two years.

Speaker Change: Really getting.

Denise Garcia: Google Workspace users. So we've got access to Gemini two five.

Speaker Change: Two a pivot point, where we can actually make rapid changes with with AI.

Denise Garcia: And there's a lot of tools coming out is really really quick.

Speaker Change: <unk>.

Speaker Change: We did a enterprise deal with open AI, but a year ago of course Theres a lot of other tools now that are available.

Denise Garcia: What is probably the more notable things that we're doing with AI is on the international side of the house.

Speaker Change:

Speaker Change: Google Workspace users. So we've got access to Gemini two five.

Denise Garcia: Alright.

Denise Garcia: I've been spending some time over there.

Denise Garcia: <unk>.

Denise Garcia: To say the least.

Speaker Change: And there's a lot of tools coming out is really really quick.

Denise Garcia: Just a.

Denise Garcia: A slight tick and.

Speaker Change: What is probably the more notable things that we're doing with AI is on the international side of the house.

Denise Garcia: We have actually started to take things that would normally have been built by developers were actually turning those over to the subject matter expert to actually build.

Speaker Change: Hi.

Speaker Change: I have been spending some time over there.

Speaker Change: I'm a.

Denise Garcia: And this is all a result of really very very recent.

Speaker Change: To say the least.

Speaker Change: A slight kick.

Denise Garcia: Technology shifts that have become available in the last really three months I would say so.

Speaker Change: And.

Speaker Change: We have actually started to take things that would normally have been built by developers who are actually turning those over to the subject matter expert to actually build.

Denise Garcia: Shift.

Denise Garcia: Is real we have teams in South Africa, France and.

Speaker Change: And this is all a result of really very very recent.

Denise Garcia: <unk>.

Denise Garcia: It really in all the markets.

Speaker Change: Technology shifts that have become available in the last really three months. So I would say so the shift is real we have teams in South Africa, France and.

Denise Garcia: Starting to actually build out a lot of the tech stack.

Denise Garcia: The country leaders or the or staff on their teams or people who lead up.

Denise Garcia: Domains on.

Speaker Change: Really in all the markets.

Denise Garcia: On the international team and then that's also had ripple effects into.

Speaker Change: Starting to actually build out a lot of the tech stack by the country leaders or the or staff on their teams or people who lead up.

Denise Garcia: Into North America as well.

Denise Garcia: Significant way so we've got a lot of new things being stood up very quickly that previously would have taken months and in some cases, we're doing it in hours. One example, that'll.

Speaker Change: Domains on.

Speaker Change: On the international team and then that's also had ripple effects into.

Denise Garcia: That I'll call out is in.

Speaker Change: Into North America as well.

Denise Garcia: Peru.

Denise Garcia: We were in the middle of launching maybe.

Speaker Change: Significant way so we've got a lot of new things being stood up very quickly that previously would have taken months and in some cases, we're doing it in hours. One example.

Denise Garcia: Maybe five six weeks ago I think it was.

Felix Bravo: And Felix can certainly add to this as well but.

Felix Bravo: We had a website that was built by a third party.

Speaker Change: That I'll call out is in.

Felix Bravo: The website wasn't actually that great, even though we were.

Speaker Change: Peru.

Speaker Change: We were in the middle of launching maybe.

Felix Bravo: Positioned to.

Speaker Change: Maybe five six weeks ago I think it was.

Felix Bravo: Effective we pay them a lot of money over time.

Felix Bravo: And Felix can certainly add to this as well but.

Felix Bravo: And they had went on vacation and.

Speaker Change: Yeah.

Felix Bravo: And we actually rebuilt.

Speaker Change: We had a website that was built by a third party.

Felix Bravo: The Peru website in a matter of hours.

Speaker Change: The website wasn't actually that great, even though we were.

Felix Bravo: With our non technical teams and we've taken that approach now from Peru, now to Turkey and.

Speaker Change: Positioned to effectively pay them a lot of money over time.

Speaker Change: And they had went on vacation and and.

Felix Bravo: And now we're rolling it out really in each country, where theyre going to actually be responsible for building out their own tech stacks.

Speaker Change: And we actually rebuilt.

Speaker Change: The Peru website in a matter of hours.

Speaker Change: With our non technical teams and we've taken that approach now from Peru, now to Turkey and.

Felix Bravo: Getting a API is where needed for work for some of the things that are that have been built previously.

Felix Bravo: By the domestic team, but we're really leveraging and.

Speaker Change: And now we're rolling it out really in each country, where theyre going to actually be responsible for building out their own tech stacks.

Felix Bravo: And we think about just the unlock that's going to take place because of this shift we think that it's going to be pretty incredible and of course on international we're seeing it upfront.

Speaker Change: Getting a API is where needed for for some of the things that are that have been built previously.

Felix Bravo: Front and center playing out in front of our eyes, and we think it's a really great proving ground for the rest of the company. So Super excited Super Stoked I think that it changes the game.

Speaker Change: By the domestic team, but we're really leveraging this and we think about just the unlock that's going to take place because of this shift we think that it's going to be pretty incredible and of course on international we're seeing it.

Speaker Change: We have some internal metrics.

Speaker Change: What we think we want to automate on them on a monthly basis in terms of percentage of annual workflows automated or things that would go to the technical teams are being done by the subject matter experts and we're already seeing that just in Q1.

Speaker Change: Right and center playing out in front of our eyes, and we think it's a really great proving ground for the rest of the company. So Super excited Super Stoked I think it changes the game.

We have some internal metrics of what we think we want to automate on them on a monthly basis in terms of percentage of manual workflows automated or things that would go to the technical teams are being done by the subject matter experts.

Speaker Change: It was really the first time, where we were able to create true citizen developers subject matter experts.

Speaker Change: The tools that would actually allow them to be full blown.

Speaker Change: And we're already seeing that just in Q1.

Speaker Change: Software developers, so it's been pretty cool to see all of that has played out.

Speaker Change: It was really the first time, where we were able to create true citizen developers subject matter experts.

Speaker Change: Great. Thanks, Thanks, Brian.

Felix Bravo: The next question is for Felix.

Speaker Change: Can you discuss what you learned about opening new countries and what's the different difference in your launches today compare to a year ago.

Speaker Change: And give them the tools that would actually allow them to be full blown.

Speaker Change: Software developers, so it's been pretty cool to see all of that has played out.

Felix Bravo: Yeah, absolutely. Thank you Denise.

Speaker Change: Very similar to what Glenn said over the past year, we've completely evolved the way we approach international launches were leveraging a ton of that technology that we just spoke about and it's really streamlines.

Speaker Change: Great. Thanks. Thanks, Brian. The next question is for Felix Felix can you discuss what you've learned about opening new countries and what's the different difference in your launches today compare to a year ago.

Speaker Change: Assets across Onboarding training and operations.

Speaker Change: Yeah, absolutely. Thank you Denise.

Speaker Change: Very similar to what Glenn said over the past year, we've completely evolve the way we approach international launches were leveraging a ton of that technology that we just spoke about and it's really streamlined.

Speaker Change: We focus as well on partnering right in country leaders, So youll see E protocol in Turkey, and Ricardo Oro in Peru have been really leading the charge and that's been an important part of our formula.

Speaker Change: Assess across Onboarding training and operations.

Speaker Change: We've been building strong local value propositions ahead of the launch. So we are actually spending the time upfront to understand the real pain points of aging agents are facing in that specific market and then we are blending that with our global model and tools and our top tier local solutions are.

Really focused as well on partnering with the right in country leaders. So youll see E protocol in Turkey, and Ricardo Oro in Peru have been really leading the charge and that's been an important part of our formula.

Speaker Change: We've been building strong local value propositions ahead of the launch so we're actually spending the time upfront to understand the real pain points of aging agents are facing in that specific market and then we are blending that with our global model and tools and our top tier local solutions.

Adam: Our own technology that we're not building that resonates with the agent. So this localized approach has really become one of our greatest strengths. We've also shifted to self managed and regionalized teams that take ownership and move quickly you'll see Adam day regional director of EMEA in Virginia, restrict our regional director of Latam with Colo.

Speaker Change: Our own technology that we're not building that resonates with the agents. So this localized approach has really become one of our greatest strengths. We've also shifted to self managed and regionalized teams that take ownership and move quickly. So youll see Adam day Regional director of EMEA, Virginia, Restrepo regional director of Latam with Carla.

Adam: And this structure really gives us more accountability and agility on the ground to be making decisions really from a <unk> strategy and finally, we've really revamped our marketing strategy Cerro Hutchinson, our VP of international marketing has come in and we've really created more momentum by leading with social campaigns local.

Speaker Change: And this structure really gives us more accountability and agility on the ground to be making decisions really from some just some strategy.

Adam: Storytelling and those in person launch events that we just talked about really help bring the brand to life at a local level with our international presence. So that has helped us build energy and trust from day, one and the combination of all these elements have made our recent launches most impactful that we've had to date and we will just continue to improve and get better.

Speaker Change: Finally, we've really revamped our marketing strategy Cerro Hutchinson, our VP of international marketing has come in and we've really created more momentum by leading with social campaigns localized storytelling and those in person launch events that we just talked about really help bring the brand to life at a local level with our international presence.

Adam: As we continue to scale into new markets.

Speaker Change: Thanks, Felix I appreciate the color and this one for Leo Leo can you dive a bit deeper on the agent count trends that Jesse.

Speaker Change: So that has helped us build energy entrust from day, one and the combination of all these elements have made our recent launches. The most impactful that we've had to date and we will just continue to improve and get better as we continue to scale into new markets.

Adam: Adjusting pointed out and we saw this quarter.

Leo Pereira: Yes, we continue to retain our most productive agents, which is the metric I am most focused on over the last 18 months or so.

Speaker Change: Thanks.

Speaker Change: I appreciate the color.

Leo Pereira: We've really focused on attracting the most productive agents and teams and thats because agents on teams or 67% more productive just individual agents and with that comes a longer onboarding cycle seems to take longer to onboard.

Speaker Change: And this is for Leo Leo can you dive a bit deeper on the agent count trends that adjusting pointed out and we saw this quarter.

Speaker Change: Yes, we can.

Speaker Change: Continued to retain our most productive agents, which is the metric I am most focused on over the last 18 months or so.

Leo Pereira: This strategy is working and showing up in our results 41% of our agents were on teams in Q1, and we are more productive agents in Q1 this year.

Speaker Change: We've really focused on attracting the most productive agents and teams and thats because agents on teams or 67% more productive just individual agents.

Leo Pereira: With mortgages, Kathy and this quarter agent attrition improved two 2% for the fourth quarter, so quarter over quarter and a year over year and we're excited about that moment, we're seeing.

Speaker Change: With that comes in longer Onboarding cycle seems to take longer to onboard with.

Speaker Change: This strategy is working and showing up in our results 41% of our agents were on teams in Q1.

Leo Pereira: What this means for future agent count.

Speaker Change: We have more productive agents in Q1 this year.

Leo Pereira: So not sure when we'll make that turning point this year, but super excited about what more productive groups of agents need to exceed long term and to that effect.

Speaker Change: With more agents, Kathy and this quarter agent attrition improved 22% for the fourth quarter, so quarter over quarter and a year over year and we're excited about the momentum we're seeing.

Leo Pereira: Two huge joiners that literally joined in the last 72 hours. So as we were preparing to slides we didn't have the time to get the press releases and their costs that were just published.

Speaker Change: What this means for future agent count.

Speaker Change: So not sure when we'll make that turning point this year, but super excited about what more productive groups of agents need to <unk> long term and to that effect.

Leo Pereira: Friday.

Leo Pereira: <unk> real estate group out of Nebraska joined US with 60 agents coming to us from <unk> one of the top teams in the state of Nebraska as well as well.

Two huge joiners that literally joined in the last 72 hours. So as we were preparing to slides we didn't have time to get the press releases in there because they were just published.

Leo Pereira: One of the top teams at <unk> and then as of yesterday, we had the neo neo team out of San Antonio join US who was the number one team <unk>, Texas and number two in units in the entire company was 914 homes sold in 2024 so the.

Speaker Change: Friday.

Speaker Change: <unk> real estate group out of Nebraska joins us with 60 agents coming to us from <unk> one of the top teams in the state of Nebraska as well as.

One of the top teams at <unk> and then as of yesterday, we had the neo neo team out of San Antonio join US who was the number one team at Keller Williams, Texas and number two in the units in the entire company was 914 homes sold in 2024, so the <unk>.

Leo Pereira: Momentum you saw in 2024, followed by Q1, where we saw such big.

Leo Pereira: Team leaders such as spring Hudson joined.

Leo Pereira: We continue that March forward.

Leo Pereira: With with this performance.

Speaker Change: Mentum you saw in 2024, followed by Q1, where we saw such big.

Leo Pereira: And I can tell you that we continue to have more active conversations but as a perfect. Anecdotal example.

Speaker Change: Team leaders such as prevention joined.

Leo Pereira: I started speaking to a Neil brothers by 18 months ago and at that size of team and complexity. It takes a little bit of time to get them over but that pipeline is full and the excitement continues.

Speaker Change: We continue that March forward.

Speaker Change: With this performance.

Speaker Change: And I can tell you that we continue to have more active conversations but is a perfect.

Speaker Change: That's great. Thanks, Leo and now moving on to Wendy when do you what are the agents, saying about the cosponsor program how much of a game changer is it.

Speaker Change: I started speaking to Neil brothers by 18 months ago and at that size of team and complexity.

Speaker Change: Agents are very excited about the co sponsor program and it really dovetails into what Lee I was just talking about in terms of momentum and collaboration and we are currently in the second week of a three week spring rally spreads that we do.

Speaker Change: Takes a little bit of time to get them over but that pipeline is full and the excitement continues.

Speaker Change: That's great. Thanks, Leo and now moving on to Wendy when do you what are the agents, saying about the cosponsor program how much of a game changer is it.

Wendy: Agents are very excited about the co sponsor program and it really dovetails in slightly I was just talking about in terms of momentum and collaboration and we are currently into the second week of a three week.

Wendy: Do each spring.

Wendy: And we're traveling across the country and we have a series of agent gatherings, we call our spring rallies and co sponsor is the topic of conversation. So we're seeing.

Wendy: Spring rally spreads that we do.

Wendy: Spring and we're traveling across the country and we have a series of agent gatherings, we call our spring rallies and co sponsor is the topic of conversation. So we're seeing.

Wendy: Agents make connections were.

Wendy: Anecdotally I may be a producing agents that maybe I haven't started to build may Rev share line or I have a few.

Wendy: <unk> and my Org that I've been focusing on production, but I'm, making a connection with another agent that has built in more mature Rev share organization and has built tools and support and systems around that and with the co sponsor program, we're able to partner to.

Wendy: Agents make connections were.

Wendy: Anecdotally I may be a producing agents that maybe I haven't started to build may Rev share liner or I have a few agents in my org, but I've been focusing on production, but I'm, making a connection with another agent that has built in more mature Rev share organs.

Wendy: Bring benefits to one another to drive growth.

Wendy: Seeing the opposite where I may be a more mature leader that has a rev share organization, but maybe I had somebody in a local market that I don't have a lot of presence in but I can partner with a team leader or a solo agent that I can connect with a new agent that wants to join <unk>.

Wendy: Asian, and has built tools and support and systems around that and with the co sponsor program, we're able to partner to bring benefits to one another to drive growth.

Seeing the opposite where I may be a more mature leader that has a rev share organization, but maybe I had somebody in a local market that I don't have a lot of presence in but I can partner with a team leader or a solo agent that I can connect with a new agent that once they join DXP.

Wendy: And connect them through the co sponsored program. So that they have a bulk bulk action in that local market and they get the best of both worlds. So we're seeing the synergies and the connections happening in real time as we're traveling across the countries through rally season, and that's just that.

Wendy: And connect demonstrated a co sponsor program so that they have a local connection in that local market and they get the best of both worlds. So we're seeing the synergies and the connections happening in real time as we're traveling across the countries through rally season, and that's just the <unk>.

Wendy: Tip of the iceberg. So we're excited to see those.

Wendy: Numbers are.

Wendy: Funnel in as the their relationships happen as we move into the latter part of this year.

Speaker Change: Alright, Thank you Andy and Jeff a question for you you mentioned getting more efficient over the course of 2025, how should we think about operating expenses for the remainder of the year and to what extent can you excited to be flexed up or down based on sales.

Wendy: Tip of the iceberg. So we're excited to see those.

Wendy: Numbers are.

Wendy: Funnel in as the their relationships have.

Wendy: As we move into the latter part of this year.

Speaker Change: Great. Thank you Andy and Jeff a question for you you mentioned getting more efficient over the course of 2025, how should we think about operating expenses for the remainder of the year and to what extent can you expected to be flexed up or down based on sales.

Speaker Change: Sure. Thank you Denise I'll start with the second part we don't flex our cost structure dramatically from quarter to quarter, we do have the ability to dial spending up or down certainly in specific areas, depending on the driver and the desired outcome.

Speaker Change: I will say you know real estate is an interesting business. The venn diagram of our fixed and variable expenses has a lot more overlap than one might imagine theres a lot of gray in the middle.

Speaker Change: Sure. Thank you Denise.

Speaker Change: Start with the second part, we don't flex our cost structure dramatically from quarter to quarter, we do have the ability to dial spending up or down certainly in specific areas, depending on the driver and the desired outcome.

Speaker Change: The variable expenses aren't purely linear with sales it's more of like a step variable function. If that makes sense. So every incremental transaction is it's not like it's adding an incremental X X dollars.

Speaker Change: I will say you know real estate is an interesting business. The venn diagram of our fixed and variable expenses has a lot more overlap than one might imagine so theres a lot of gray in the middle.

Speaker Change: But every incremental two to 300 transactions at that might layer on an additional staffing requirement or software licensing that sort of thing. So that's how we look at the business between fixed and variable.

Speaker Change: The variable expenses aren't purely linear with sales.

Speaker Change: More of like a step variable function if that makes sense. So every incremental transaction is it's not like it's adding an incremental X X dollars.

Speaker Change: Longer term you know Glen took us through where our focus is right, where we're really focusing on AI and automation and I will say in my tenure here in six years <unk> has always been focused on automation and efficiency paying agents faster, having one of the most efficient brokerage operations.

Speaker Change: But every incremental two to 300 transactions that might layer on an additional staffing requirement or software licensing that sort of thing. So that's how we look at the business between fixed and variable.

Speaker Change: Longer term Glen took us through where our focus is right, where we're really focusing on AI and automation and I'll say in my tenure here in six years <unk> has always been focused on automation and efficiency paying agents faster, having one of the most efficient brokerage operations.

Speaker Change: In the world.

Speaker Change: But now with AI layered on top of that that's where we're really looking to find some synergies and our unit economics of our expenses, particularly in like the repeatable high volume workflows, which we just we just closed 90000 transactions in Q1, so there's a lot of low hanging fruit there when it comes to AI enabled AI enablement and <unk>.

Speaker Change: In the world.

Speaker Change: But now with AI layered on top of that that's where we're really looking to find some synergies and our unit economics of our expenses, particularly unlike the repeatable high volume workflows, which we just we just closed 90000 transactions in Q1, so there's a lot of low hanging fruit there when it comes to AI enabled AI enablement and <unk>.

Speaker Change: Automation.

Speaker Change: And then so just taking that back to the first part of your question how to model operating expenses for the remainder of 2025.

Speaker Change: I'd say, we don't we don't provide forward guidance right, but high level.

Speaker Change: The trend is your friend so what we've been doing with the last couple of quarters and we did see a.

Speaker Change: <unk>.

Speaker Change: Notch up and our unit economics, and the SG&A per unit, which which we talked through here a bit and we also have some additional color in the queue.

Speaker Change: And then so just taking that back to the first part of your question how to model operating expenses for the remainder of 2025.

Speaker Change: I'd say, we don't we don't provide forward guidance right, but high level.

Speaker Change: I'd say.

Speaker Change: AI layering of expenses that we're putting in on the front end now should result in synergies in the back half of 2025 and then we're also just taking a traditional look at our cost basis, and where we can find opportunities. We acknowledge some of the headwinds that exist in the U S market and like I said, we're always looking for.

Speaker Change: The trend is your friend so what we've been doing with the last couple of quarters and we did see a.

Speaker Change: Notch up and our unit economics, and the SG&A per unit, which which we talked through here a bit and we also have some additional color in the queue.

I'd say.

Speaker Change: AI layering of expenses that we're putting in on the front end now should result in synergies in the back half of 2025 and then we're also just taking a traditional look at our cost basis, and where we can find opportunities. We acknowledged some of the headwinds that exist in the U S market and like I said, we're always looking for.

Speaker Change: Opportunities and efficiencies.

Speaker Change: In our business. So I think that's the high level color I can share on where we're looking to land.

Speaker Change: As far as our unit economics and expense Cisco.

Speaker Change: Thanks, Jesse I appreciate it.

Speaker Change: Well open the call to questions for those of you in.

Speaker Change: Opportunities and efficiencies.

Speaker Change: And the audience you can go to slide or scan the code here and ask a question there.

Speaker Change: Business so.

Speaker Change: That's the high level color I can share on where we're looking to land.

Speaker Change: Got it off with our analysts that are on the stage here Oscar.

Speaker Change: As far as our unit economics, and the inexpensive scope.

Speaker Change: Our first question from you Oskar <unk> from Stephens. Please go ahead, Hey, good afternoon. This is Austin on for John Campbell Stephens. So we have a Jesse this one is for you earlier, you mentioned that adjusted EBITDA was down year over year, primarily due to the gross margin compression. So we are we want.

Speaker Change: Thanks, Jesse I appreciate it.

Speaker Change: Well open the call to questions for those of you in the audience you can go to slide or scan the code here.

Speaker Change: And asked a question there.

Oscar: I'll start off with our analysts that are on the stage here Oscar.

Speaker Change: Our first question from you Oskar <unk> from Stephens. Please go ahead.

Speaker Change: You know what what's your expectation for the full year on gross margin.

Speaker Change: Hey, Good afternoon. This is Austin on for John Campbell Stephens. So we have a Jesse this one's for you earlier, you mentioned that adjusted EBITDA was down year over year, primarily due to the gross margin compression. So we are.

Speaker Change: Gross margin and also for operating expenses, how do you see those moving for the rest of the year.

Speaker Change: Yes. Thank you for the question I would say, it's a bit of a double edged sword right. When we talk about our agents are more productive so it compresses the percentage right and it's like that age old question and business do you want more rate or volume.

Speaker Change: We want to know what what's your expectation for the full year on gross margin.

Speaker Change: Gross margin and also for operating expenses, how do you see those moving for the rest of the year.

Speaker Change: Yes. Thank you for the question I would say, it's a bit of a double edged sword right. When we talk about our agents are more productive so it compressed as a percentage right and it's like that age old question and business do you want more rate or volume.

Speaker Change: A bit more just due to the nature of our model and the way that we've structured it and that brings down the percentage on margin. We're okay. On that now we know that we're working with with smaller margins in general right. We give a lot of commission.

Speaker Change: Obviously, you'd like Bose I'd say right now our focus is on volume we want the most productive agents at our brokerage. It's one of the core metrics that we examine every day here at DXP and so if we have higher productive agents that cap a bit more just due to the nature of our model and the way that we've structured it and that brings down the percentage on margin.

Commission revenue share stock back to our agents and that's the whole essence of the model.

Speaker Change: But it is something that we pay attention to I suspect again without providing direct for guidance I suspect that you will see this continue as especially the U S market continues to face some headwinds youre seeing this concentration and productivity, where we showed that on the slide right a lot of the agents that have two or less transactions.

Speaker Change: We're okay on that now we know that we're working with with smaller margins in general right. We give a lot of commission.

Speaker Change: Commission revenue share stock back to our agents and that's the whole essence of the model.

Speaker Change: I think that we pay attention to I suspect again without providing direct Ford guidance I suspect that you will see this continue as especially the U S market continues to face some headwinds youre seeing this concentration and productivity, where we showed that on the slide right a lot of the agents that have two or less.

Speaker Change: Our sort of falling out of the industry. Unfortunately, and what's happening is those transactions are still occurring home sales are still occurring and so you have this sort of sat NAV.

Speaker Change: Natural function, that's happening, where maybe an agent that was selling one or two properties a year. Unfortunately falls out of the business and agent that was selling 10 or 12 properties a year now selling 12 or 14, and so that's kind of put some downward pressure on the margin percentage, but we're okay. Because we're still capturing it in total nominal dollars and we're retaining those agents.

Speaker Change: <unk> are sort of falling out of the industry. Unfortunately, and what's happening is those transactions are still occurring home sales are still occurring and so you have this sort of natura.

Speaker Change: Natural function, that's happening, where maybe an agent that was selling one or two properties a year. Unfortunately falls out of the business and agent that was selling 10 or 12 properties. A year now is selling 12 or 14, and so that's going to put some downward pressure on our margin percentage, but we're okay. Because we're still capturing it in total nominal dollars and we're retaining those agents and then.

Speaker Change: And then on the expense question.

Speaker Change: I think I took us through it kind of at a high level I'll just add a bit more color I mean, we're constantly examining the unit economics I will say, we mostly I think its fair to say here with the leadership team. We're viewing it from an efficiency perspective, right. We we want to pay our agents faster we want to have the most streamlined process, where we're constantly.

Speaker Change: On the expense question.

Speaker Change: Gently even on the finance team, we're examining it through a like do we need five steps here do we need three so it's more of an efficiency perspective, and then the follow on from that should be a cost savings down the line and so that's how we're examining our operating expenses, we do acknowledge that they took a notch up in Q1, I think all of the investor.

Speaker Change: Instantly even on the finance team, we're examining it through a like do we need five steps here do we need three so it's more of an efficiency perspective, and then the follow on from that should be a cost savings down the line and so that's how we're examining our operating expenses, we do acknowledge that they took a notch up in Q1, I think all of the inverse.

Speaker Change: But that we're building into the back end of the business is going to provide some some opportunity in the back half of 'twenty five here, where we can we can have some stronger unit economics on the SG&A there.

Speaker Change: Alright.

Speaker Change: Thank you and I have one for Leo.

Speaker Change: Leo earlier, you outlined your views on the CCP and particularly you said that delay marketing will create market confusion.

Speaker Change: <unk> that we're building into the back end of the business is going to provide.

Speaker Change: Some opportunity in the back half of 'twenty five here, where we can we can have some stronger unit economics on the SG&A there.

Speaker Change: And on that note how does your alignment with Zillow and the new leasing standards do they resolved and the negative impact or just they have no impact on your private leasing strategy.

Speaker Change: Alright. Thank.

Speaker Change: Thank you and I have one for Leo So Leo earlier, you outlined your views on the CCP and particularly you said that delay marketing will create market confusion.

Speaker Change: No.

Speaker Change: <unk> always had an office exclusive strategy, which is compliant with CCT. The biggest difference between us and the other company. You mentioned is that they are treating that as a business model, which is firmly believes.

Speaker Change: And on that note how does your alignment with Zillow and the new leasing standards.

Speaker Change: Do they resolved and the negative impact or just they have no impact on your private leasing strategy.

Speaker Change: Real liability to themselves and their shareholders.

Speaker Change: There is almost an article with day dropping right now from Siemens.

Speaker Change: So we've always had an office exclusive strategy, which is compliant with CCT. The biggest difference between us and the other company you mentioned is that.

Speaker Change: Market watch.

Speaker Change: Another one came out today, where there is some very serious.

Speaker Change: They are pretty good as a business model, which I firmly believe is going to create real liability to themselves and to shareholders.

Speaker Change: Non industry participants meeting not a brokerage or a portal weighing in from <unk>.

Speaker Change: For housing violations and I think every investor was calling for pay attention. The decisions, we make impact of our enterprise value and we want to make sure that we're doing right by the consumer but also not creating them.

Speaker Change: There is almost an article with day dropping right now from CNN So tomorrow.

Speaker Change: Market watch.

Speaker Change: Another one came out today.

Speaker Change: So very serious.

Speaker Change: Non industry participants, meaning not a brokerage or a portal weighing in from <unk>.

Speaker Change: Reliability for our shareholders and the enterprise. So our position is one that protects consumers, but also protect the enterprise we run here and so just like last summer whereas.

Speaker Change: For housing violations and I think every investor and his colleagues who pay attention the decisions, we make impact of our enterprise value and we want to make sure that we're doing right by the consumer but also not creating.

Speaker Change: My impression was that the settlement was unclear and created some ambiguity and we made a business decision to no longer co broke and we rolled out a whole set of rules for the industry.

Speaker Change: Reliability for our shareholders and the enterprise. So our position is one that protects consumers, but also protects the enterprise we run here and so just like last summer.

Speaker Change: We found ourselves in that same position again.

Speaker Change: Fundamentally disagree with the way marketing either properties off the market through a private exclusive where it's on the market and we don't want any shades of green metal. So as the property has been entered into the Mos we wanted to distribute it to as many eyeballs as possible because our jobs fiduciary is to garner the most amount of attention and money for that selling in the shortest amount of time so.

Speaker Change: My impression was that the the end of our settlement was unclear and created some ambiguity and we made a business decision to no longer co broke and we rolled out a whole set of open source for the industry. We found ourselves in that same position again, I fundamentally disagree with delayed marketing either properties off the market through a private exclusive works on the.

Speaker Change: No way do we think it's detrimental to our business I think it protects consumers and it actually creates less liability presses us another question alright.

Speaker Change: A market and we don't want any shades of green in the middle So once the property has been entered into the months, we wanted to distribute it to as many eyeballs as possible because our jobs fiduciary is to garner the most amount of attention and money for that sell in the shortest amount of time so.

Speaker Change: All right very clear thank you so much.

Speaker Change: Thanks, Oscar and every quarter, we ask folks to submit questions in advance that they'd like us to ask on the call up to investors that <unk> World Holdings' Dot Com and we've received some questions from Andrew Thompson, He's our ESP country leader in South Africa.

Speaker Change: Where do we think it's detrimental to our business I think it protects consumers and it actually creates less liability presses us scale enterprise.

Speaker Change: So the group is in the U S going into a recession and what are your thoughts on the U S market in terms of property sales for the balance of this year.

Speaker Change: All right very clear thank you so much.

Speaker Change: Thanks, Oscar and every quarter, we ask folks to submit questions in advance that they'd like us to ask on the call. It two investors that DXP World Holdings' Dot Com and we've received some questions from Andrew Thompson, He's our ESP country leader in South Africa.

Speaker Change: Yes.

Speaker Change: I'll jump in on that one.

Speaker Change: Last Q.

Speaker Change: Q4 of 2024 going into this Q, we were feeling optimistic that we're going to have a little bump over 2024 through 2025.

Andrew Thompson: So the group is is the U S going into a recession and what are your thoughts on the U S market in terms of property sales for the balance of this year.

Speaker Change: I was speaking to one of the economists that helps formulate our forecast and I think right now we're almost like in a pause holding pattern to see where.

Speaker Change: I'll jump in on that one.

Andrew Thompson: Yes.

Andrew Thompson: Q4 of 2024 going into this Q, we were feeling optimistic that we're going to have a little bump over 2024 through 2025.

Speaker Change: The full.

Speaker Change: Oh wait of the April numbers and then we're also all collectively holding our breath tomorrow to see what happens with rates flat.

Speaker Change: This is to Jeff's point as we are watching every single metric.

Andrew Thompson: I was speaking to one of the economists that helps formulate our forecast and I think right now we're almost like in a pause holding pattern to see where the.

Speaker Change: I do think the one thing that Hasnt been mentioned.

Speaker Change: At least by me before is that.

Andrew Thompson: For the full.

Speaker Change: Oh wait of the April numbers and then we're also all collectively holding our breath tomorrow to see what happens with rates, but.

Speaker Change: Look at I look at the housing.

Speaker Change: Bowl of soup, three very important ingredients interest rates for affordability supply for.

Speaker Change: This is to Jeff's point as we are watching every single metric.

Speaker Change: It creates the demand supply ratio.

Speaker Change: I do think the one thing that Hasnt been mentioned.

Speaker Change: The fourth one that is not talked about enough.

Speaker Change: At least by me before is that.

I think is going to become a meaningful impact over the course of 2025 as consumer confidence and Thats, a little squishy and harder to underwrite.

Speaker Change: I look at the housing.

Speaker Change: Bowl of soup is three very important ingredients interest rates for affordability supply for.

Speaker Change: Think of it.

Speaker Change: The impact it has and that will be felt by tariffs and other kind of macro national policies.

Speaker Change: It creates the demand supply ratio.

Speaker Change: But the fourth one that is not talked about enough I think is going to become a meaningful impact over the course of 2025 as consumer confidence and that's a little squishy and harder to underwrite.

Speaker Change: Don't quite have my finger on and Thats, where we are going to be watching this extremely carefully and our entire business model as I said on other earnings calls is scalable up and down so if we need to adjust quicker.

Speaker Change: But I think that the impact that has and that will be felt by tariffs and other kind of macro national policies.

Speaker Change: Quickly.

Speaker Change: Luckily the model is designed to give us the ability to pivot and react to.

Speaker Change: Headwinds that we cannot control.

Speaker Change: I don't quite have my finger on and Thats, where we are going to be watching this extremely carefully and our entire business model as I've said on other earnings calls is scalable up and down so if we need to adjust.

Speaker Change: Alright, thank you.

Speaker Change: Thank you everyone for joining as always please stay connected by visits.

Speaker Change: Sitting ESP World Holdings' Dot com for the latest updates on ESP news results and events. Additionally, you'll find a recording of this call and our latest investor presentation on the investors section of the site.

Speaker Change: Quickly.

Speaker Change: Look we the model is designed to give us the ability to pivot and react to.

Speaker Change: Headwinds that we cannot control.

Speaker Change: Alright, thank you.

Speaker Change: This concludes the <unk> first quarter 2025.

Speaker Change: Thank you everyone for joining us.

Speaker Change: Always please stay connected by visiting ESP World Holdings' Dot com for the latest updates on ESP news results and events.

Speaker Change: <unk>, you'll find a recording of this call and our latest investor presentation on the investors section of the site. This concludes the <unk> World Holdings' first quarter 2025 are inspiring.

Speaker Change: Now, we Gotta go help people customized and save hundreds of Liberty mutual.

Speaker Change: We have a worser golf cart.

Speaker Change: [noise], they're the.

Only pay for what you need.

Speaker Change: Okay.

Speaker Change: At Firestone complete auto care, we hold our service to the highest standards. That's why we have thousands of ASC certified technicians nationally.

Speaker Change: We're here to change your oil, but also check on everything else on your vehicle bumper to bumper, that's what we're here for.

Speaker Change: Because by having great people you get great work.

Today to book your next appointment, helping our neighbors since 1926, Firestone complete auto care.

Speaker Change: Thank you very much everybody a great honor to have Prime Minister Mark Carney with US as you know just a few days ago. He won a very big election in Canada.

And I think I was probably the greatest thing that happened to him, but I can't say.

Speaker Change: They were his party was losing by a lot.

Speaker Change: And he ended up winning so I really want to congratulate them with probably one of the greatest comebacks in the history of politics, maybe even greater than mine.

Speaker Change: But I wanted to stay congratulate deal relative great election, actually we were watching it with interest and I think Canada chose a very talented person at a very good person as we spoke before the election quite a few times.

Speaker Change: And it's an honor to have you at the White house in the Oval office and you see the new and improved overall office as it becomes more and more beautiful with love.

Speaker Change: Handle it with great low end.

Speaker Change: In 24 karat gold that always helps.

Speaker Change: But it's a it's been a lot of fun going over some of the beautiful pictures that were sold in the rules that were for many many years in some cases over 100 years. It is stored involves of the great.

Speaker Change: Great Presidents, who are almost grade presents all while having a reason for being up every one of them.

Speaker Change: So it's a really interesting, but I just wanted to congratulate you and.

Speaker Change: Ran a really great race at Watson debate.

Speaker Change: You were excellent and I think we have a lot of things income and we have some tough tough points ago over and that'll be fine. We're going to also be discussing Ukraine, Russia. The war because mark wants it ended as quickly as I do think it has to end.

Speaker Change: We had some very good news last night, the hoodies of announced that they are not where they have been announced to us at least that they don't want to fight anymore.

Speaker Change: Just don't want to fight.

Speaker Change: We will honor that.

Speaker Change: And we will.

Speaker Change: We will stop the bombings and they have.

Speaker Change: Capitulated, but more importantly, they are we will take their word.

Speaker Change: They will not be blowing up ships anymore and.

Speaker Change: That's what the purpose of what we were doing so that's just news we just found out about that.

Speaker Change: So.

Speaker Change: That's very very positive they were there.

Speaker Change: They were knocking out a lot of ships going.

Speaker Change: As you know are scaling beautifully down the various fees.

Speaker Change: It wasn't just the canal it was a lot of other places.

Q1 2025 eXp World Holdings Inc Earnings Call

Request a DemoDemo

EXPI

eXp World Holdings

Earnings