Equity research analyst for real estate and technology at Berenberg Capital Markets. We are happy to welcome back Justin as our moderator. Following this initial segment, we will move into a presentation which includes a review of the second quarter, 2022 and year to date 2022 financial highlights presented by Jeff Whiteside, CFO and Chief Collaboration Officer at eXp World Holdings, followed by Shoeb Ansari, Chief Information Officer, and Leo Pareja, President of Affiliate Services, to give an overview of our technology and referral services priorities respectively. We will then return to Justin Ages, our leadership team, for a continuation of the Q&A. Finally, we'll share details on the upcoming eXpcon event, which will focus on delivering first-class education, training, coaching, and networking for our agents and brokers and bring today's session to a conclusion.
Let's begin with a review of the forward-looking statement. There will be a number of forward-looking statements made today that should be considered in conjunction with the cautionary statements contained in the company's SEC filings. Forward-looking statements are subject to various risks, uncertainties that could cause our actual results to differ materially from these statements. Please see our filings with the SEC, including our most recent quarterly report 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 replay will also be made available on expworldholdings.com. Now, for a few logistics before we get started, for those of you in the eXp Campus today.
You will note that there are three screens. If you hit the stage Zoom button to the right of your chat box, you'll be able to zoom into a specific screen. You can hit the plus icon button above that screen. If you happen to see no slides or a gray slide, hit the refresh icon at the top of the right-hand corner of that screen to correct. While in eXp Campus, should you need any help or have any questions, please enter your comments into the chat box at the bottom on the left, and a member of the team will contact you. As mentioned, the last segment of our fireside chat is a continuation of our Q&A.
Should you wish to ask a question during this presentation, you can enter your questions by scanning the QR code presented on the screen with your phone, or go to slido.com and type in the event code EXPI. From there, you can submit a question or vote up an existing question by giving a thumbs up. If you would also like to ask that question, this screen will bring up on the left-hand side of the stage. At this time, I would like to turn the fireside chat over to Glenn Sanford, our founder, and Justin Ages to start the earnings conversation and opening remarks.
Awesome. Thank you. Thank you, Courtney. And welcome again, Justin, for helping host today. Justin is one of our covering analysts, and I know that you cover the housing market and watched actually a few videos recently of you on CNBC and other places, so it's great to have you here as part of our fireside.
Yeah. Glenn, thanks for having me. It's great to be back here. Happy to, you know, chat with you and the rest of the EXPI team. You know, I'll start, obviously, the housing market is always a topic of interest for both the public and investors alike, so hopefully each is gonna find something worthwhile from our chat today. You know, just starting there then, given all the headlines surrounding the housing market, whether it's ongoing price increases or affordability issues, you know, I think I would describe the quarter for EXPI as pretty solid. You guys saw brokers and agents continue to grow, transaction volume increased. You even increased the dividend. With that in mind, Glenn, how do you feel the second quarter was compared to your expectations? You know, what exceeded? What fell below?
Yeah. I think the big part was, you know, in Q2, obviously the headline was the Fed raising interest rates. That was, that changed the game quite a bit. We definitely saw a softening, especially, you know, toward the end of Q2. You know, June especially, we saw, you know, a slowdown in transactions, I think primarily around interest rates. What's interesting is interest rates have now retreated somewhat, which is actually, I think we will start to see some increase in buyer volume because of that. You know, that's still yet to be seen. I think the interest rates definitely slowed things down, and certainly slowed it down below what we were expecting at the beginning of the year.
What we've been able to do is we've started to moderate some of our, you know, expenses and other things to match the market, which is part of the reason why I think we were able to increase our dividend, even though, you know, we saw the market slowing down. We did just increased it modestly, but it certainly showed that we were making some progress. I think the other piece and certainly, you know, as we look at, you know, what took place in eXp, you know, we definitely saw, you know, us start to retrench based on the market. We introduced some new education around what we're calling Level Up. We've got external outreach.
Something to note that's not even part of Q2 but will be part of Q3 is we have the largest agent-run event in the entire industry going to actually take place this month in Dallas. That's pretty exciting. We'll have over 4,000 agents, you know, hosted by a number of our top agents, you know. Brent Gove, one of our top agents and brokers, has actually put this event together and actually has Tony Robbins coming to close that out. We're still seeing, you know, a lot of agents looking to join, a lot of agents exposing the business model to other agents. We're supporting them with a lot of technology and tools.
We've got some cool things we'll be announcing in the next month or so around a marketing suite, which we're excited about. We start to look at some of the other businesses. You know, Virbela, you know, it's continued to grow from a metaverse perspective, but the Frame platform is actually the one I've been, you know, talking about and most excited about because it's completely web-based. We're starting to attract a number of larger clients to that platform. I think there were about four Fortune 500, global 500 companies in the last quarter or so that have actually started to use the platform. Some of them are paying clients, and some of our bigger clients now are actually using Frame. We're excited about sort of the growth there.
I know I'm jumping into some of the other parts of the business, but you know, SUCCESS itself has continued to grow and expand, and SUCCESS Coaching has really started to get some traction. So that's been exciting. You look at the fact that personal development coaching has about a $20 billion a year TAM with some good profit margins. We're actually pretty excited about you know, the fact that we are really in a position to be actually making money in this in SUCCESS and starting to actually grow into that business. We introduced a new coaching model. We did that actually at Shareholders, so anybody who attended there got to hear a little bit about that, and that's starting to get some traction.
Oh, one other note around SUCCESS is that we also have a co-working model under the name of SUCCESS Space, and we've actually got 10 franchises now committed. The first location's opening up this month in August. A lot of good things there. Then I think the last piece, and again, a lot of these are really more current quarter than prior quarter because we tend to think about all the things that we can do, and obviously, the results are the results. We did close the purchase of Zoocasa, which matches up with something we've been talking about for a number of years, which is what we've referred to as our altportal strategy.
We've had a number of great strategic conversations and meetings to create alignment to expand Zoocasa across most of Canada and starting to expand into the U.S., starting to get leads into the hands of agents in other markets outside of their primary market of Toronto, Canada. That's starting to get some traction as well. I think, you know, those are some of the highlights. I know that Leo will talk a little bit about what we're doing with SUCCESS Lending and Affiliate Services. You know, one thing to note is just that we've started to really expand our leadership team.
You know, we'll hear a little bit from Shoeb and Leo here in a little bit. Shoeb Ansari joined us as our Chief Information Officer and has really been retooling the way we think about improving workflows and technologies. He actually helped us find somebody who's joining us starting tomorrow, Patrick O'Neill, our Chief Operating Officer for eXp Realty. Of course, Leo Pareja is our new President of Affiliate Services. That's exciting and we'll get to hear a little bit from them as well. Those are some highlights, some commentary obviously on the housing market earlier.
Yeah. That's a pretty good synopsis, Glenn, and it just kinda shows the breadth of everything that you know you're involved in and everything that you're growing to. In specifics to the quarter, maybe you could talk a little more about what were the key drivers of, let's say, the transaction volume growing. Was it more on the housing price side as home prices continue to accelerate? As you continue to grow your agent base, you know, what's resonated with attracting productive agents to your platform?
Yeah. You know, the key drivers, you know, certainly, agent growth is a big part of it. We think about the idea that, you know, the average agent in the industry is gonna do X number of transactions based on what's going on. That's gonna be the biggest single predictor of the longer term of the company. That was the biggest driver. Our sales prices were generally steady in the quarter. There was, you know, quite frankly, more notable churn in the lower to non-producing agent category.
I think that was because, especially as we got, you know, toward the second half of the second quarter, you know, the fact that there were fewer transactions due to higher interest rates, some of those agents who are struggling to put deals together, they you know generally churned out or in some cases may have just, you know, tried to find someplace they could hang their license that was cheaper. We did see some of that, but our, you know, our biggest drivers really were around, you know, continued growth and market share and, as a result, you know, the sales followed.
Thanks, Glenn. You know, really good to kind of dig in there and get the puts and the takes of what's driving the quarter. We touched on the housing market in general, so I won't ask you directly to go to your crystal ball and what you think. I'll come at it from a different angle. Even as mortgage rates kinda retreat from their highs, many are expecting the housing market to slow. You know, one of the things that we've been really keen on is the advantages that EXPI has in recruiting agents. You know, can you take this opportunity to talk about those advantages over other models and how that translates to your growth and market share gains?
Yeah. You know, most agents in the industry belong to more traditional real estate brokerages. You know, whether they be part of the Realogy brand, or actually now the Anywhere Group of Companies, you know, RE/MAX, Keller Williams, Berkshire Hathaway, most companies are geared as a if they're a franchise with some sort of franchise fee off the top, typically, you know, 5%, 6%, 7%, and then they're typically on a 70/30, 60/40, but probably a 70/30 with the local office. In most cases, there's some sort of cap where they reset every year, and that might be anywhere from, you know, $20,000-$30,000 that they pay the local office before they go to 100% if they do have a cap.
In the eXp model, you know, we don't have a franchise fee. Our agents are on an 80/20, and they have a $16,000 cap. Just right off the bat, agents effectively get a raise coming to eXp. I mean, we do have a $85 a month tech and education fee, so that's included in our model. Most brokerages charge more than that on a monthly basis as well. You know, agents save money, but then, you know, the next part of it is that of that 20%, we pay half of that back out in the form of what we refer to as a revenue share.
That's the benefits that agents get from helping the company grow by attracting other agents that they're doing cross sales with, et cetera. Of course, we're the first company to really provide meaningful equity to agents and that being in a public company. That was another element that's again missing from you know 90%+ of agents out in the field don't have you know revenue share and equity benefits and a competitive cap and split model. All of those make us you know attractive, and I think it's one of the reasons why we're picking up market share you know across you know not just the U.S., but actually now the globe.
We're in 21-22 countries and starting to grow with a very similar model even internationally, which is quite attractive when you look at other models internationally, which are more akin to a 50/50 split with the agent. Our model is normally around a 75/25 internationally, which makes us again a very competitive model even before you start to add in the revenue share and equity benefits.
Yeah. That's really interesting, Glenn, and it just shows how kinda nimble EXPI can be in various kinda housing markets. You know, I'd be remiss to mention something that you didn't even know you called it a little modest, is that the dividend increase, you know, makes that share for the agents just a little more valuable. You know, I think that's a good stopping point on the high level questions that I have. I'll turn it back to, you know, EXPI to continue the presentation.
Okay, awesome. Well, let's welcome up Jeff Whiteside to talk a little bit about the financials.
All right. Well, thank you very much, Glenn, and thank you, Justin, for hosting today. Good morning all and thank you for joining our second quarter 2022 virtual fireside chat. On behalf of our great agents, business units, and staff, I'm proud to share our results and highlights with you today. A special welcome to, I know that Michael Valdes made the entire international team stay up for this, so thank you for staying up, and we really appreciate you being here. As we look at our first page, summary, eXp, EXPI delivered another record quarter and a strong performance in Q2. We've had continued growth in agent count, transaction volume, revenue, gross margin dollars, and cash flow.
You know, as we see, we continue to grow our market share, as Glenn mentioned, with sustainable operating model and cash flow. The board of directors vote to increase our dividend by 13%, so that will go out. I think that's, you know, part of that is it's a proof of the solid model that we're operating on. As we go forward, you know, we see we finished the first half with a very strong, resilient model, and we use the term built for this in the past. We're gonna lever up for the next level up for the next part of challenges that we're gonna face. We have a team that's successfully navigated numerous cycles of the economy in challenging markets. We again have zero debt on the balance sheet, variable cost structure and our organic growth model.
As Glenn mentioned again, we have massive agent events all over the country. Mentioned Brent's event that's coming up soon. If you look, you know, if you follow us on social media, this organic growth model keeps building and building and building. One thing I mentioned before was back in, you know, when I joined in 2018, you know, there was a relatively small group of influencers, and now we really have hundreds across the country. Then, you know, that's also influencing growth of international. Finally on this page, you know, recognizing that the second half of 2022 could be challenging in the industry. You know, we've made ongoing adjustments to our cost structure for the full year and in preparation for changes in the economy and real estate industry.
I think, you know, we have been looking at the business, the cost structure, the volumes that we see in forecasting, towards the second half of the year, and we are adjusting and we can adjust for that as time goes on. If we would just move to the second page. At a highlight level and starting with revenue in Q2, our revenue was $1.4 billion, which was up 42% versus Q2 2022. Our gross profit dollars in Q2 was $107.3 million, and that's up 34% versus 2022. Our net income was $9.4 million, and that was down 75% versus 2022 and up 6% versus Q1 2022.
The variance is we had a very favorable tax benefit of $22.2 million in Q2 of 2021. That's basically just following GAAP. We had a number of different tax benefits that was applied to net income. That's why there's such a big difference year-over-year. Our adjusted EBITDA, a metric we use that excludes non-cash charges, i.e. stock compensation, was $26.9 million which was flat year-over-year versus Q2 2022. Lastly, on this page, Q2 operating cash flow was $77.2 million, an increase of 27% year-over-year. Now I'd like to take a look on the next page at some of our key metrics. This page is broken down into two categories.
One is the operating metrics, and two is our financial metrics. Looking at our operating metrics for Q2, our agent NPS was 68 and our employee NPS was 78. As a reminder, we run our business on net promoter scores with a world-class goal of 70, and that's kind of what we shoot for. We've talked about it, you know, in a lot of detail in the past. In our realty business, which is the primary driver of our financial results, adding productive agents to our platform drives unit sales, volume, revenue, and gross margin dollars that we utilize to invest in our agents and return to our shareholders.
If you look at some of these metrics, our agent count at the end of Q2 ended at 82,856, and that was up 42% year-over-year this time last year. In terms of unit sales, we transacted 150,032 units in Q2, up 30% from 2021. Our price actually over the quarter, we did see some flatness in the last part of the quarter, but overall, the price per unit was up 11% versus 2021. Volume was up at $57.9 billion versus $40.1 billion, increase of 44% versus last year. Now we'll take a look at some of our financial metrics. We have discussed revenue on the first page, gross dollars, net income, adjusted EBITDA and operating cash flow.
Some other key metrics that we look at is gross margin percentage. Our gross margin percentage was 7.6% in Q2 versus 8% in Q2 2021. Again, you know, we're still coming off a very high volume business and with price increases, that puts pressure on the percentage. As we've seen over time, our growth in dollars has been very, you know, extraordinary. Our percentage growth gets pressure with the volume and the price increases. SG&A. This SG&A is what we kind of spend in the company to invest in our agents, invest in expansion, invest in our staff and prepare for the future.
You know, it increased from $63.4 million to $95.6 million, driven primarily by investments in our business. You know, we've talked before about technology, international, affiliate services, et cetera, and that's where most of that money goes, the incremental money. Our operating income was $11.6 million in Q2 2022 from $16.5 million in 2021. This quarter was driven primarily by one-time incremental expenses that hit Q2 2022 and a slowdown in some of the volume we saw towards the end of Q2 in 2022. Finally, on our key metrics results, our cash balance ended the quarter at $134.9 million versus $107.4 million, an increase of 25%.
We, you know, both from a situation where we have no debt on the balance sheet, cash flow and cash balance. It's very healthy balance sheet. If I'm looking at our chart four, if we just turn the page, we'll take some other Q2 2021 milestones. EXPI in Q2 2022 achieved positive GAAP net income for the 11th quarter in a row. We continued positive accumulated earnings in shareholder equity. As I mentioned, the board decided to increase the dividend 13% from $0.04 to $0.045. Our share buyback, this is our commitment to offset dilution of agent awards. We repurchased approximately $50 million in common stock in Q2.
Then lastly, we returned about $6 million to shareholders in the form of dividends. In total, it was about $56 million we returned back to our shareholders in the form of stock buybacks and the dividends. We're gonna take a quick look at our year-to-date 2022 results versus 2021. You can see the agent number is the same thing, we're up 42%. Our units went from 189,000 to 264,000 year-to-date, up 40%. Volume went from $64 billion to $99 billion, up 54%. Our revenue on a year-to-date basis is up 53%. We're at $2.4 billion versus $1.5 billion.
You can see, you can just follow the chart along. Our gross margin grew at $57.3 million, up 43%, due to increased transaction volume. As I mentioned before, with that volume and the price, the percentage did decline. SP&A, we talked about. Net income, we did talk about. As I mentioned previously, the cash and cash equivalents increased by 25% on a year-to-date basis. If we go to our next chart, this is a chart I always like to kind of bring back to a little bit. You know, taking a quick look at our historical growth in agents and revenue from 2018 through Q2 2022, we've gone from $500 million in revenue in 2018 with 15,000 agents to $2.4 billion, I mean, year-to-date in Q2 2022 with 83,000+ agents.
When we look at this chart, you know, it's actually very extremely strong growth, extremely strong business model that we've grown on with cash flow and zero debt, and what we believe a long road of growth opportunities ahead for EXPI. If I go to my final chart, please. We've been asked to quantify our addressable market a number of times, and you'll see in the last chart, you know, our estimates that we see from an addressable market standpoint, you know, there's about $467 billion in revenue that we see being in our addressable market.
If I just start at the bottom of this chart, our core market, which is a U.S. residential real estate brokerage, is $106 billion. Our professional coaching opportunity, as Glenn mentioned before, is about $20 billion. Our growth verticals, mortgage, title, escrow, affiliate services, $54 billion. Expansion in U.S. commercial is $112 billion. Our expanded opportunity in an international real estate is $195 billion. As you can see, our growth, historical growth has been fantastic, but there's still a long way to go, and we think the addressable market is wide open.
As we go through these challenging times, potentially in the second half of this year, we're also investing in the company both from a leadership standpoint and a technology standpoint to actually go after these markets. Feeling really good where we are. That's my report from a financial standpoint. Right now I'd like to pass it on to Leo, our President of Affiliate Services. Thank you all, and welcome, Leo.
Thank you very much, Jeff. I'm actually very grateful to be here and be part of this team. Over the last several years, eXp has experienced explosive growth in agent count, and that's actually translated into hyper-growth of transactions. Of a company of our size now, we're poised to take advantage of that big opportunity and create higher catchment rates across the board and create additional monetization that is similar to the incumbent players like Anywhere and Berkshire Hathaway. Second part of my focus initially will be to really build out a diversified channel of corporate referral sources, ranging from foreclosure sales, corporate relocation contracts, affinity networks, and captive channels of partners due to our robust national coverage that makes us an amazing partner for large participants.
We're a large monolithic brokerage with national coverage, which makes us an easy button for a lot of these players that we weren't before. This internal discipline will be competency that we will use for attraction and retention. This can potentially also increase our per person productivity, which is a very important metric to focus on. In addition to our external opportunities of attraction, we'll also be investing in our internal lead generation capabilities with our new investment in Zoocasa and potentially scaling that. We're really focused on two categories. One, generating attachment across the enterprise at all transaction levels. Two, being able to refer additional opportunities to our agents to increase company dollar as well as retention and attraction. With that, I'll hand it over to Shoeb. Thank you very much.
Thank you, Leo. Good morning, everyone. I'd like to highlight three key outcomes we are after to continue to fuel our growth here. First one, increasing operational. Number two, providing an exceptional experience to our agents. Number three, regional expansion. Let's go through each one of them. Over the last several years, we have done an outstanding job in scaling our operational processes to support the growth we have had. Using our experience, we are building just the right solutions, driving up productivity to further enhance our transaction unit economics. For example, tighter integration between our transaction processing system and ancillary systems that surround it. That reduces the steps necessary to process a transaction. Expansion of our work queue management process, where we can be very efficient in how we process each one of the transaction with speed. Let's talk about exceptional experience.
With solutions like My eXp, we aim to provide an easy-to-use interface for our agents to conduct their business with. We will continue to deliver incremental improvements to My eXp in an agile manner with our agents, such as using it as an agent-facing portal into our transaction management system, making it easier for agents to find what they need. Let's talk about regional expansion. Using our cloud-first strategy and effective use of partnerships across the globe, coupled with having a set of eXp core systems that is common to our global eXp footprint, we can provide regional experiences while leveraging our domestic expertise and operational processes to process transactions and serve agents. Now I'll pass back to Justin Ages for the continuation of our Q&A with Glenn and Jeff. Justin?
Thank you for that presentation. You know, a lot of interesting information to come out. Hopefully, we have enough time to get to all of it. Given, you know, Jeff's presentation, I think I'll just start with, you know, from the CFO's perspective, Jeff, what stood out to you? Was it, you know, maybe the elevated SG&A? Was it the ongoing performance? Give you the opportunity to expand upon that.
Yeah. Justin, thank you for that. I, you know, the growth, what we saw was, we saw, you know, we had a great first quarter of the year, and now we're seeing, you know, the first two-thirds of the second quarter was pretty strong. We're, you know, as Glenn mentioned, we're starting to see a bit of a slowdown from the growth numbers we expected in June, based on the economy. I think that, I mean, what impresses me and what has impressed me for the last couple of years now is the organic growth model. All right. If you follow our agents across the country, I mean, they're in Detroit, they're in Nashville, they're all over the country growing the business.
That's the biggest thing, and that's gonna continue. Regardless of what happens in the economy, that's gonna continue. I think as we pointed out, the opportunity for growth here in all the business lines we're going after is substantial. That's my view from. My last point on it, Justin, too, would be that we have prepared. Glenn and I were out in the market talking to a lot of the analysts in the first quarter, and did hear a lot of feedback on the expectation that it's gonna be a you know, a tougher second half and, you know, possibly next year, you know, first half of next year.
We started adjusting our full 2022 plan from a cost standpoint back in Q1. We're spending a lot of time on that now to make sure it's adjusted properly to reflect the volume that we're gonna see. I think we're gonna be prepared for whatever happens.
Thanks, Jeff. Continuing along with that, I got a question from Slido here. Tom White. Hoping you can quantify the slowdown in that operating expense in the second half of the year. You know, were you able to put, you know, any numbers on it or directionally how we should be thinking about that?
Yeah. I mean, directionally, we had a plan, and we're, you know, going into 2022, and we're looking to decrease that plan by approximately 25%. That's kinda, you know, we don't really break out our forecast for SG&A and things like that, but we're looking to decrease our spending by about 25% compared to what plan we had going into 2022.
Okay. Thanks, Jeff. That's helpful. Then I just want to jump to some of the new presenters. You know, on the affiliated services view, I think, you know, there's plenty of opportunity there, and it could, you know, lead to some really exciting movements for EXPI. Can you discuss the high level strategy or what you have in mind in general for that business and also add on, you know, as it pertains to the lead gen business?
Leo.
Sorry.
Want to take that?
Absolutely. At a high level, you know, there are services that attach to every real estate transaction across the country. With our current size and scale, we have an untapped opportunity to try to get aligned with the right partners and get the proper conversions that you see other established legacy players have. If we switch over to the referral business, I think you can point to companies like Cartus inside of the Anywhere family of companies, where there is a very strong affinity from the agents inside of the platform to stay within the company and really count on that referral business that's corporately generated on their behalf on an annual basis.
All right. Thanks for that, Leo. That's helpful. Then maybe one for Shoeb. On the technology side, you know, one of the key kind of growth facets is making agents more productive. You know, my ears were a little piqued with this My eXp, you know, the incremental improvements there, the agent-facing portal. So maybe you can talk about what you're seeing in terms of or what you're expecting in terms of kind of improvements or new products to bring online, both in terms of attracting agents and then making them more productive once they come onto the platform.
Sure. From a perspective of My eXp, we obviously want to offer a service that the agents pretty much look at it as their place to work. Any information they need to get from eXp, whether it is about their transactions, their commissions, how it is processing, we want it at their fingertips at all times. Let's talk about communication. The communication that goes on between the brokerage staff and the agents. We'd like to make sure that the My eXp interface is the place for them to go to.
If we make it easier for an agent to do business with us, where all the information they need about their transactions are right on their fingertips, on their mobile, on their tablet, on the PC, then it becomes easier for them to do business. It becomes faster for them, faster for us. It's very important for us to provide a great experience, great mobile experience, great tablet experience, great PC experience.
That by itself, if you think about it, if we can offer our most important constituent, which is the agent, the level of service, the speed of service, experience that we provide, that in and by itself will attract more and more agents to come to us because we are making it easier for them to focus on what they do best, which is go out and sell properties, go out and help buyers to buy properties. That is where we are focused on.
All right. That's, you know, that's helpful and a good kind of peek into what you guys are looking to do. Maybe just a follow-up for you, or anyone who wants to take it. A couple questions on Slido on Zoocasa. Is there the opportunity to expand that beyond Canada and then U.S., and how are you guys thinking about that?
Yeah, there certainly is. I mean, obviously the bulk of our agents are in the U.S. and Canada at the moment, and there's robust MLS integrations that allow us to quickly display a large volume of properties, basically all properties that are listed for sale in the U.S. and Canada. Where it gets a little bit unique when we start to think about going into other markets, and we do plan to go into other markets, is there's not normally an MLS. We're looking at as we continue to expand, how do we aggregate a volume of listings to make it a true consumer portal?
Is that strictly with eXp listings or are there ways to maybe include or even use it as a bit of a way to attract agents to eXp to use, you know, Zoocasa and/or other forms of marketing to create a more sticky eXp? You know, Zoocasa will definitely go beyond the U.S. and Canada. Most natural market next would be to go into Mexico. There's some initiatives there around actually an MLS initiative that we're part of driving in Mexico, and that would provide a natural feeder for Zoocasa. We'll be looking at, you know, how can we, you know, aggregate listings into that.
All right. That's helpful, Glenn. It could set the stage, you know, for some more growth. Are you able to project, you know, or estimate how it will translate into increases in transactions and revenue, or is it still kinda early innings at this point?
It is early, but the Zoocasa historically was one of the most advertised portals in all of Canada. It was used to be owned by Rogers Communications, and they were advertising somewhere in the vicinity of CAD 1.5 million a month in advertising spend. Because of regulatory reasons, they had to sell it off. Their paper brokerages weren't allowed in Canada, so there was a need to sell it off, which created the opportunity for the incumbent team that's now running it to scale and use the well-established brand of Zoocasa.
From a consumer portal perspective, we think it's got a lot of opportunities, and it was the plan of the Zoocasa team to actually build it out across Canada in you know around North America with a strategy that provides a much higher value per lead through the platform. You can think about the idea that you know leads may have something akin to what a Zillow or Realtor.com would charge in terms of a referral fee on leads. You can think about almost Zillow Flex like opportunity, but we own it together. All of our agents, brokers are shareholders as well as the primary beneficiary of those leads.
The next piece is the ability to pre-approve and predispose consumers through that platform to, you know, SUCCESS Lending, to our title escrow operations, etc. It's a great entry point. You know, it has a large net traffic base already across Canada, and so there's a lot of markets in Canada that even this month will start to be able to put leads into agents' hands in a high accountability type of format, which we're pretty excited about. Not ready to quantify it, but we are going to be investing in Zoocasa quite extensively because we believe that it could be a major portal in the next, you know, three to five years.
Yeah. It definitely sounds like the opportunity is there. I wanna switch the discussion to the agent side of the business, just given how integral it really is to the whole operations. A question from Slido, from Gordon Selene. Agent growth was still very strong at 42%. Sounds like churn of low producing or non-producing agents is up. What's happening to gross agent growth, you know, pre that churn that you mentioned in your prepared remarks?
You broke up just slightly for me. What was the final part?
Yeah, you know, had a question from Slido looking to look at gross agent growth before the churn that you mentioned in your prepared remarks on the lower end of the productive agent side.
Okay. Yeah. Jeff, do you know the gross agent adds for the quarter?
Just give me one sec, Glenn.
Okay. We'll look that up.
Yeah.
Okay. While Glenn looks that up, you know, while we're on the topic of agents, I did ask this at the top, and I wanna, you know, get in a little bit recruit tools you're deploying to ensure, you know, ongoing agent growth.
Yeah. You know, our primary tools is really our what we refer to as our aligned compensation model, which is, you know, the key driver. Obviously, you know, having been, you know, productive agent and team builder and brokerage owner, you know, there's a lot of things that we're able to identify and help identify that are pain points for agents. We've got, it's either this month or next month, we're actually rolling out a new marketing suite of tools which we're really excited about to, you know, automate a lot more marketing for agents. The education and training is a big part of it.
What we're seeing, which is really interesting, is given a little bit of the slowdown in the market, we're actually seeing our top producing agents and brokers and those who have grown large organizations actually doing more on the education and attraction and retention side of the business because they basically all have many effective brokerages inside the brokerage just through the way that the compensation model is designed. We're really seeing a doubling down on education and training, as well as, you know, we're continuing to look at tools and technologies.
I mean, Zoocasa is one, a way that we're looking at, you know, improving leads to agents, and then we're putting in some lead qualification scrubbing systems, that we're excited about to help agents when they do get leads from either exprealty.com or anywhere that the leads come in as something that's actionable and then we're providing, you know, more, you know, accountability around those leads, which will help agents be more productive just by getting better training.
Glenn, the net number that we report on is 4,600 agents in the quarter from Q1 to Q2.
What was the gross?
Closer to 6,500.
Okay. I know that will continue to be attractive. There will always be cheaper places. There will always be more expensive places. What we don't wanna do is introduce any concept that we might even increase any sort of cap or fees to agents. It's not our intention or our belief that we'll do that. We get investors that ask us to do that, but we think that's a short-term solution that won't solve for how do we get to 500,000 agents, you know, over the long haul. We think about market share as being our biggest driver, and having a competitive model, not increasing the expenses to agents, recognizing there's gonna be continued competitive pressures in the marketplace.
As long as we, you know, continue to grow the agent base, we start to look at affiliate services. We look at other things like, you know, Zoocasa and other premium lead gen programs. There are ways to increase margins without increasing the cap or the fees on agents in general.
All right. That's really informative, Glenn. Thank you. With that does it for my questions. I'll turn it back over to you, and your team for any closing remarks.
Courtney.
Thank you very much. As a reminder, I'm gonna talk a little bit about the eXpcon. You know, we talk about being built for this, but we're also built for the future, right? A reminder, we do have our annual eXpcon summit just around the corner. This year's event is hosted in Las Vegas, Nevada, October 11th through the 14th. Now, eXp is a great reminder of how fast we've grown as a company and our continued commitment to agents and brokers' success. Looking back, 2014, a group of 75 people joined our first eXpcon in Chicago. Eight years later, we're hosting thousands of agents and brokers across the world with the goal of helping them take their businesses to the next level, serve their customers, and expand the eXp community.
Register. We'd love you to join. Please scan the QR code on the screen with your phone or visit expcon.exprealty.com. We wanna thank you for joining today. This concludes the eXp World Holdings Q2 2022 earnings fireside chat.
Thanks, everyone.
Take care, everyone. Have a nice day. Bye all.