rdfn-20200630
0001382821--12-312020Q2false0.0010.001500,000,000500,000,00099,394,43293,001,59799,394,43293,001,5970.0010.00110,000,00010,000,00040,00040,000no23one year4884884884881222,074122244500,000,0000.00110,000,0000.001nofour yearstwo yearsfour years00013828212020-01-012020-06-30xbrli:shares00013828212020-07-23iso4217:USD00013828212020-06-3000013828212019-12-31iso4217:USDxbrli:shares0001382821us-gaap:ServiceMember2020-04-012020-06-300001382821us-gaap:ServiceMember2019-04-012019-06-300001382821us-gaap:ServiceMember2020-01-012020-06-300001382821us-gaap:ServiceMember2019-01-012019-06-300001382821us-gaap:ProductMember2020-04-012020-06-300001382821us-gaap:ProductMember2019-04-012019-06-300001382821us-gaap:ProductMember2020-01-012020-06-300001382821us-gaap:ProductMember2019-01-012019-06-3000013828212020-04-012020-06-3000013828212019-04-012019-06-3000013828212019-01-012019-06-300001382821rdfn:COVID19Member2020-01-012020-06-3000013828212018-12-3100013828212019-06-300001382821us-gaap:CommonStockMember2019-03-310001382821us-gaap:AdditionalPaidInCapitalMember2019-03-310001382821us-gaap:RetainedEarningsMember2019-03-310001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-3100013828212019-03-310001382821us-gaap:CommonStockMember2019-04-012019-06-300001382821us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001382821us-gaap:RetainedEarningsMember2019-04-012019-06-300001382821us-gaap:CommonStockMember2019-06-300001382821us-gaap:AdditionalPaidInCapitalMember2019-06-300001382821us-gaap:RetainedEarningsMember2019-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001382821us-gaap:CommonStockMember2020-03-310001382821us-gaap:AdditionalPaidInCapitalMember2020-03-310001382821us-gaap:RetainedEarningsMember2020-03-310001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-3100013828212020-03-310001382821us-gaap:CommonStockMember2020-04-012020-06-300001382821us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001382821us-gaap:RetainedEarningsMember2020-04-012020-06-300001382821us-gaap:CommonStockMember2020-06-300001382821us-gaap:AdditionalPaidInCapitalMember2020-06-300001382821us-gaap:RetainedEarningsMember2020-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001382821us-gaap:CommonStockMember2018-12-310001382821us-gaap:AdditionalPaidInCapitalMember2018-12-310001382821us-gaap:RetainedEarningsMember2018-12-310001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001382821us-gaap:CommonStockMember2019-01-012019-06-300001382821us-gaap:AdditionalPaidInCapitalMember2019-01-012019-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-06-300001382821us-gaap:RetainedEarningsMember2019-01-012019-06-300001382821us-gaap:CommonStockMember2019-12-310001382821us-gaap:AdditionalPaidInCapitalMember2019-12-310001382821us-gaap:RetainedEarningsMember2019-12-310001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001382821us-gaap:CommonStockMember2020-01-012020-06-300001382821us-gaap:AdditionalPaidInCapitalMember2020-01-012020-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300001382821us-gaap:RetainedEarningsMember2020-01-012020-06-30rdfn:investment_typerdfn:segment0001382821rdfn:BrokerageRevenueMemberrdfn:RealEstateSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300001382821rdfn:BrokerageRevenueMemberrdfn:RealEstateSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300001382821rdfn:BrokerageRevenueMemberrdfn:RealEstateSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300001382821rdfn:BrokerageRevenueMemberrdfn:RealEstateSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300001382821rdfn:RealEstateSegmentMemberrdfn:PartnerRevenueMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300001382821rdfn:RealEstateSegmentMemberrdfn:PartnerRevenueMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300001382821rdfn:RealEstateSegmentMemberrdfn:PartnerRevenueMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300001382821rdfn:RealEstateSegmentMemberrdfn:PartnerRevenueMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300001382821rdfn:RealEstateSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300001382821rdfn:RealEstateSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300001382821rdfn:RealEstateSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300001382821rdfn:RealEstateSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300001382821rdfn:PropertiesSegmentMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300001382821rdfn:PropertiesSegmentMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300001382821rdfn:PropertiesSegmentMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300001382821rdfn:PropertiesSegmentMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300001382821us-gaap:CorporateNonSegmentMember2020-04-012020-06-300001382821us-gaap:CorporateNonSegmentMember2019-04-012019-06-300001382821us-gaap:CorporateNonSegmentMember2020-01-012020-06-300001382821us-gaap:CorporateNonSegmentMember2019-01-012019-06-300001382821us-gaap:IntersegmentEliminationMember2020-04-012020-06-300001382821us-gaap:IntersegmentEliminationMember2019-04-012019-06-300001382821us-gaap:IntersegmentEliminationMember2020-01-012020-06-300001382821us-gaap:IntersegmentEliminationMember2019-01-012019-06-300001382821us-gaap:InterestRateLockCommitmentsMember2020-06-300001382821us-gaap:InterestRateLockCommitmentsMember2019-06-300001382821us-gaap:ForwardContractsMember2020-06-300001382821us-gaap:ForwardContractsMember2019-06-300001382821rdfn:ServiceRevenueMemberus-gaap:InterestRateLockCommitmentsMember2020-04-012020-06-300001382821rdfn:ServiceRevenueMemberus-gaap:InterestRateLockCommitmentsMember2019-04-012019-06-300001382821rdfn:ServiceRevenueMemberus-gaap:InterestRateLockCommitmentsMember2020-01-012020-06-300001382821rdfn:ServiceRevenueMemberus-gaap:InterestRateLockCommitmentsMember2019-01-012019-06-300001382821us-gaap:ForwardContractsMemberrdfn:ServiceRevenueMember2020-04-012020-06-300001382821us-gaap:ForwardContractsMemberrdfn:ServiceRevenueMember2019-04-012019-06-300001382821us-gaap:ForwardContractsMemberrdfn:ServiceRevenueMember2020-01-012020-06-300001382821us-gaap:ForwardContractsMemberrdfn:ServiceRevenueMember2019-01-012019-06-300001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821rdfn:AgencyBondsMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:FairValueInputsLevel1Memberrdfn:AgencyBondsMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:FairValueInputsLevel2Memberrdfn:AgencyBondsMemberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821rdfn:AgencyBondsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-06-300001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:ForwardContractsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001382821us-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-31xbrli:pure0001382821rdfn:MarketingpricingMemberus-gaap:InterestRateLockCommitmentsMemberrdfn:MeasurementInputWeightedAveragePullThroughRatMember2020-06-300001382821rdfn:MarketingpricingMemberus-gaap:InterestRateLockCommitmentsMemberrdfn:MeasurementInputWeightedAveragePullThroughRatMember2019-12-3100013828212020-01-012020-03-310001382821us-gaap:CashMember2020-06-300001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2020-06-300001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-06-300001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-06-300001382821us-gaap:FairValueInputsLevel1Memberrdfn:AgencyBondsMember2020-06-300001382821us-gaap:CashMember2019-12-310001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2019-12-310001382821us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2019-12-310001382821us-gaap:LeaseholdImprovementsMember2020-06-300001382821us-gaap:LeaseholdImprovementsMember2019-12-310001382821us-gaap:SoftwareDevelopmentMember2020-06-300001382821us-gaap:SoftwareDevelopmentMember2019-12-310001382821us-gaap:OfficeEquipmentMember2020-01-012020-06-300001382821us-gaap:OfficeEquipmentMember2020-06-300001382821us-gaap:OfficeEquipmentMember2019-12-310001382821rdfn:SoftwareMember2020-01-012020-06-300001382821rdfn:SoftwareMember2020-06-300001382821rdfn:SoftwareMember2019-12-310001382821us-gaap:FurnitureAndFixturesMember2020-01-012020-06-300001382821us-gaap:FurnitureAndFixturesMember2020-06-300001382821us-gaap:FurnitureAndFixturesMember2019-12-310001382821us-gaap:ConstructionInProgressMember2020-06-300001382821us-gaap:ConstructionInProgressMember2019-12-310001382821srt:MinimumMemberus-gaap:SoftwareDevelopmentMember2020-01-012020-06-300001382821srt:MaximumMemberus-gaap:SoftwareDevelopmentMember2020-01-012020-06-300001382821us-gaap:CostOfSalesMember2020-04-012020-06-300001382821us-gaap:CostOfSalesMember2019-04-012019-06-300001382821us-gaap:CostOfSalesMember2020-01-012020-06-300001382821us-gaap:CostOfSalesMember2019-01-012019-06-300001382821us-gaap:OperatingExpenseMember2020-04-012020-06-300001382821us-gaap:OperatingExpenseMember2019-04-012019-06-300001382821us-gaap:OperatingExpenseMember2020-01-012020-06-300001382821us-gaap:OperatingExpenseMember2019-01-012019-06-30rdfn:complaint00013828212020-05-112020-05-110001382821rdfn:MrErakerVRedfinAndMadronaVentureGroupLLCMember2020-05-112020-05-110001382821srt:MaximumMember2020-06-300001382821us-gaap:VehiclesMember2020-06-300001382821srt:MinimumMember2020-06-300001382821us-gaap:TradeNamesMember2020-01-012020-06-300001382821us-gaap:TradeNamesMember2020-06-300001382821us-gaap:TradeNamesMember2019-12-310001382821us-gaap:DevelopedTechnologyRightsMember2020-01-012020-06-300001382821us-gaap:DevelopedTechnologyRightsMember2020-06-300001382821us-gaap:DevelopedTechnologyRightsMember2019-12-310001382821us-gaap:CustomerRelationshipsMember2020-01-012020-06-300001382821us-gaap:CustomerRelationshipsMember2020-06-300001382821us-gaap:CustomerRelationshipsMember2019-12-310001382821us-gaap:CommonStockMember2020-04-012020-04-010001382821us-gaap:CommonStockMember2020-04-010001382821us-gaap:PreferredStockMember2020-04-012020-04-010001382821us-gaap:PreferredStockMember2020-04-0100013828212020-04-012020-04-0100013828212020-04-01rdfn:numberOfTradingDays0001382821rdfn:A2004EquityIncentivePlanMemberus-gaap:EmployeeStockMember2020-06-300001382821rdfn:A2004EquityIncentivePlanMember2020-01-012020-06-300001382821rdfn:A2017EquityIncentivePlanMember2017-07-260001382821rdfn:A2017EquityIncentivePlanMember2020-01-012020-03-310001382821rdfn:A2017EquityIncentivePlanMember2020-06-300001382821rdfn:A2017EquityIncentivePlanMember2019-12-310001382821us-gaap:EmployeeStockMemberrdfn:A2017EmployeeStockPurchasePlanMember2017-07-270001382821us-gaap:EmployeeStockMemberrdfn:A2017EmployeeStockPurchasePlanMember2017-07-272017-07-270001382821us-gaap:EmployeeStockMemberrdfn:A2017EmployeeStockPurchasePlanMember2020-01-012020-03-310001382821rdfn:A2017EmployeeStockPurchasePlanMember2020-06-300001382821rdfn:A2017EmployeeStockPurchasePlanMember2019-12-3100013828212019-01-012019-12-310001382821us-gaap:EmployeeStockOptionMember2020-01-012020-06-300001382821srt:ChiefExecutiveOfficerMemberus-gaap:PerformanceSharesMember2019-06-012019-06-010001382821srt:MaximumMembersrt:ChiefExecutiveOfficerMemberus-gaap:PerformanceSharesMember2019-06-012019-06-010001382821us-gaap:RestrictedStockUnitsRSUMember2019-12-310001382821us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-06-300001382821us-gaap:RestrictedStockUnitsRSUMember2020-06-300001382821us-gaap:PerformanceSharesMember2020-06-300001382821rdfn:PerformanceRestrictedStockUnitsMember2020-01-012020-06-300001382821srt:MinimumMemberus-gaap:PerformanceSharesMember2020-01-012020-06-300001382821srt:MaximumMemberus-gaap:PerformanceSharesMember2020-01-012020-06-300001382821us-gaap:PerformanceSharesMember2020-01-012020-06-300001382821us-gaap:PerformanceSharesMemberrdfn:JanuaryToDecember2018AwardsMember2020-01-012020-06-300001382821rdfn:JanuaryToDecember2019AwardsMemberus-gaap:PerformanceSharesMember2020-01-012020-06-300001382821us-gaap:PerformanceSharesMember2019-01-012019-06-300001382821us-gaap:PerformanceSharesMemberrdfn:JanuaryToDecember2018AwardsMember2019-01-012019-06-300001382821rdfn:JanuaryToDecember2019AwardsMemberus-gaap:PerformanceSharesMember2019-01-012019-06-300001382821us-gaap:ResearchAndDevelopmentExpenseMember2020-04-012020-06-300001382821us-gaap:ResearchAndDevelopmentExpenseMember2019-04-012019-06-300001382821us-gaap:ResearchAndDevelopmentExpenseMember2020-01-012020-06-300001382821us-gaap:ResearchAndDevelopmentExpenseMember2019-01-012019-06-300001382821us-gaap:SellingAndMarketingExpenseMember2020-04-012020-06-300001382821us-gaap:SellingAndMarketingExpenseMember2019-04-012019-06-300001382821us-gaap:SellingAndMarketingExpenseMember2020-01-012020-06-300001382821us-gaap:SellingAndMarketingExpenseMember2019-01-012019-06-300001382821us-gaap:GeneralAndAdministrativeExpenseMember2020-04-012020-06-300001382821us-gaap:GeneralAndAdministrativeExpenseMember2019-04-012019-06-300001382821us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-06-300001382821us-gaap:GeneralAndAdministrativeExpenseMember2019-01-012019-06-300001382821rdfn:A2017EquityIncentivePlanMembersrt:MinimumMember2020-01-012020-06-300001382821srt:MaximumMemberrdfn:A2017EquityIncentivePlanMember2020-01-012020-06-300001382821us-gaap:EmployeeStockOptionMember2020-04-012020-06-300001382821us-gaap:EmployeeStockOptionMember2019-04-012019-06-300001382821us-gaap:EmployeeStockOptionMember2020-01-012020-06-300001382821us-gaap:EmployeeStockOptionMember2019-01-012019-06-300001382821us-gaap:RestrictedStockUnitsRSUMember2020-04-012020-06-300001382821us-gaap:RestrictedStockUnitsRSUMember2019-04-012019-06-300001382821us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-06-300001382821us-gaap:RestrictedStockUnitsRSUMember2019-01-012019-06-300001382821us-gaap:EmployeeStockMember2020-04-012020-06-300001382821us-gaap:EmployeeStockMember2019-04-012019-06-300001382821us-gaap:EmployeeStockMember2020-01-012020-06-300001382821us-gaap:EmployeeStockMember2019-01-012019-06-300001382821us-gaap:ConvertiblePreferredStockMember2020-04-012020-06-300001382821us-gaap:ConvertiblePreferredStockMember2019-04-012019-06-300001382821us-gaap:ConvertiblePreferredStockMember2020-01-012020-06-300001382821us-gaap:ConvertiblePreferredStockMember2019-01-012019-06-3000013828212017-06-300001382821us-gaap:DomesticCountryMember2019-12-310001382821us-gaap:StateAndLocalJurisdictionMember2019-12-310001382821rdfn:WesternAllianceBankMemberus-gaap:WarehouseAgreementBorrowingsMember2020-06-300001382821rdfn:WesternAllianceBankMemberus-gaap:WarehouseAgreementBorrowingsMember2019-12-310001382821rdfn:TexasCapitalBankNationalAssociationMemberus-gaap:WarehouseAgreementBorrowingsMember2020-06-300001382821rdfn:TexasCapitalBankNationalAssociationMemberus-gaap:WarehouseAgreementBorrowingsMember2019-12-310001382821rdfn:FlagstarBankMemberus-gaap:WarehouseAgreementBorrowingsMember2020-06-300001382821rdfn:FlagstarBankMemberus-gaap:WarehouseAgreementBorrowingsMember2019-12-310001382821us-gaap:WarehouseAgreementBorrowingsMember2020-06-300001382821us-gaap:WarehouseAgreementBorrowingsMember2019-12-310001382821rdfn:WesternAllianceBankMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:WarehouseAgreementBorrowingsMember2020-01-012020-06-300001382821rdfn:WesternAllianceBankMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:WarehouseAgreementBorrowingsMember2020-06-300001382821rdfn:WesternAllianceBankMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:WarehouseAgreementBorrowingsMember2019-12-310001382821rdfn:TexasCapitalBankNationalAssociationMemberus-gaap:WarehouseAgreementBorrowingsMember2020-01-012020-06-300001382821us-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMemberrdfn:FlagstarWarehouseCreditFacilityMemberus-gaap:LineOfCreditMember2020-01-012020-06-300001382821us-gaap:RevolvingCreditFacilityMemberrdfn:FlagstarWarehouseCreditFacilityMemberus-gaap:LineOfCreditMember2020-06-300001382821us-gaap:RevolvingCreditFacilityMemberrdfn:FlagstarWarehouseCreditFacilityMemberus-gaap:LineOfCreditMember2019-12-310001382821us-gaap:RevolvingCreditFacilityMemberrdfn:GoldmanSachsBankUSAMember2020-06-300001382821us-gaap:RevolvingCreditFacilityMemberrdfn:GoldmanSachsBankUSAMember2019-12-310001382821us-gaap:RevolvingCreditFacilityMemberrdfn:GoldmanSachsBankUSAMember2020-01-012020-06-300001382821us-gaap:RevolvingCreditFacilityMembersrt:MinimumMemberrdfn:GoldmanSachsBankUSAMember2020-01-012020-06-300001382821srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberrdfn:GoldmanSachsBankUSAMember2020-01-012020-06-300001382821us-gaap:RevolvingCreditFacilityMember2020-06-300001382821us-gaap:RevolvingCreditFacilityMember2019-12-310001382821us-gaap:RevolvingCreditFacilityMember2020-04-012020-06-300001382821us-gaap:RevolvingCreditFacilityMember2020-01-012020-06-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Member2018-07-230001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Member2020-06-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Member2019-12-310001382821us-gaap:FairValueInputsLevel2Memberrdfn:A1.75ConvertibleSeniorNotesdue2023Member2020-06-300001382821us-gaap:FairValueInputsLevel2Memberrdfn:A1.75ConvertibleSeniorNotesdue2023Member2019-12-310001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Member2020-04-012020-06-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Member2019-04-012019-06-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Member2020-01-012020-06-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Member2019-01-012019-06-300001382821rdfn:TexasCapitalBankNationalAssociationMemberus-gaap:SubsequentEventMemberus-gaap:WarehouseAgreementBorrowingsMember2020-07-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020

or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___ to ___

Commission file number 001-38160
Redfin Corporation
(Exact name of registrant as specified in its charter)
Delaware
74-3064240
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
1099 Stewart Street
Suite 600
Seattle
WA
98101
(Address of Principal Executive Offices)
(Zip Code)
(206)
576-8333
Registrant's telephone number, including area code
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.001 par value per shareRDFNThe Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
 No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes
 No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
Accelerated filer
Non-accelerated filer  
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 Yes
 No

The registrant had 99,476,640 shares of common stock outstanding as of July 23, 2020.




Redfin Corporation

Quarterly Report on Form 10-Q
For the Quarter Ended June 30, 2020

Table of Contents
PART I
Page
Item 1.
Item 2.
Item 3.
Item 4.
PART II
Item 1.
Item 1A.
Item 2.
Item 6.



As used in this quarterly report, the terms "Redfin," "we," "us," and "our" refer to Redfin Corporation and its subsidiaries taken as a whole, unless otherwise noted or unless the context indicates otherwise.

Note Regarding Forward-Looking Statements

This quarterly report contains forward-looking statements. All statements contained in this report other than statements of historical fact, including statements regarding COVID-19's anticipated impacts on our business, our future operating results and financial position, our business strategy and plans, our market growth and trends, and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” "hope," “potentially,” “preliminary,” “likely,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including those described under Item 1A of our annual report for the year ended December 31, 2019, as supplemented by Part II, Item 1A of this report. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the effect of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely on forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this report or to conform these statements to actual results or revised expectations.

Note Regarding Industry and Market Data

This quarterly report contains information using industry publications that generally state that the information contained therein has been obtained from sources believed to be reliable, but such information may not be accurate or complete. While we are not aware of any misstatements regarding the information from these industry publications, we have not independently verified any of the data from third-party sources nor have we ascertained the underlying economic assumptions relied on therein.
i

Table of Contents
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Redfin Corporation and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share amounts, unaudited)
June 30, 2020December 31, 2019
Assets
Current assets
Cash and cash equivalents$325,352  $234,679  
Restricted cash35,102  12,769  
Short-term investments128,056  70,029  
Accounts receivable, net34,182  19,223  
Inventory9,437  74,590  
Loans held for sale42,439  21,985  
Prepaid expenses7,624  14,822  
Other current assets4,555  3,496  
Total current assets586,747  451,593  
Property and equipment, net41,414  39,577  
Right-of-use assets, net47,697  52,004  
Long-term investments18,792  30,978  
Goodwill and intangibles, net11,260  11,504  
Other non-current assets9,430  10,557  
Total assets$715,340  $596,213  
Liabilities, mezzanine equity and stockholders' equity
Current liabilities
Accounts payable$3,389  $2,122  
Accrued liabilities48,967  38,022  
Other payables27,614  7,884  
Warehouse credit facilities40,566  21,302  
Secured revolving credit facility7,215  4,444  
Current lease liabilities11,614  11,408  
Total current liabilities139,365  85,182  
Non-current lease liabilities54,362  59,869  
Convertible senior notes, net122,884  119,716  
Non-current payroll tax liabilities3,668    
Total liabilities320,279  264,767  
Commitments and contingencies (Note 7)
Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 and no shares issued and outstanding, respectively39,801    
Stockholders’ equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 99,394,432 and 93,001,597 shares issued and outstanding, respectively99  93  
Additional paid-in capital673,234  583,097  
Accumulated other comprehensive income441  42  
Accumulated deficit(318,514) (251,786) 
Total stockholders’ equity355,260  331,446  
Total liabilities, mezzanine equity and stockholders’ equity$715,340  $596,213  

See Notes to the consolidated financial statements.
1

Table of Contents
Redfin Corporation and Subsidiaries
Consolidated Statements of Comprehensive Loss
(in thousands, except share and per share amounts, unaudited)
Three Months Ended June 30,Six Months Ended June 30, 2020
2020201920202019
Revenue
Service$141,135  $157,872  $252,613  $246,641  
Product72,530  39,908  152,047  61,281  
Total revenue213,665  197,780  404,660  307,922  
Cost of revenue
Service93,891  108,528  192,259  192,923  
Product73,735  40,906  153,483  63,898  
Total cost of revenue167,626  149,434  345,742  256,821  
Gross profit46,039  48,346  58,918  51,101  
Operating expenses
Technology and development17,961  16,063  38,235  31,620  
Marketing9,482  27,050  35,190  60,250  
General and administrative(1)
23,022  17,654  47,349  39,102  
Total operating expenses50,465  60,767  120,774  130,972  
Loss from operations(4,426) (12,421) (61,856) (79,871) 
Interest income437  1,913  1,540  4,229  
Interest expense(2,665) (2,153) (5,109) (4,290) 
Other income (expense), net43  36  (1,303) 128  
Net loss$(6,611) $(12,625) $(66,728) $(79,804) 
Dividend on convertible preferred stock(1,284)   (1,284)   
Net loss attributable to common stock—basic and diluted$(7,895) $(12,625) $(68,012) $(79,804) 
Net loss per share attributable to common stock—basic and diluted$(0.08) $(0.14) $(0.71) $(0.88) 
Weighted average shares of common stock—basic and diluted98,785,318  91,216,886  96,114,012  90,915,334  
Other comprehensive income (loss)
Net loss$(6,611) $(12,625) $(66,728) $(79,804) 
Foreign currency translation adjustments3  37  (22) 38  
Unrealized gain (loss) on available-for-sale securities(137) 6  421  6  
Total comprehensive loss$(6,745) $(12,582) $(66,329) $(79,760) 

(1) Includes direct and incremental costs related to COVID-19 of $7,525, which are partially offset by $1,292 in employee retention credits allowed under the CARES Act, for the three and six months ended June 30, 2020.

See Notes to the consolidated financial statements.

2

Table of Contents
Redfin Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Six Months Ended June 30,
20202019
Operating Activities
Net loss
$(66,728) $(79,804) 
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization6,865  3,809  
Stock-based compensation14,416  12,282  
Amortization of debt discount and issuance costs3,477  3,031  
Non-cash lease expense4,522  2,943  
Impairment costs1,420    
Other(1,190) (100) 
Change in assets and liabilities:
Accounts receivable, net(14,959) (23,323) 
Inventory65,153  (62,960) 
Prepaid expenses and other assets5,446  1,230  
Accounts payable1,040  1,350  
Accrued liabilities, other payables, and non-current payroll tax liabilities14,244  26,489  
Lease liabilities (5,481) (3,301) 
Origination of loans held for sale(294,076) (153,335) 
Proceeds from sale of loans originated as held for sale274,595  128,080  
Net cash provided by (used in) operating activities8,744  (143,609) 
Investing activities
Purchases of property and equipment(6,072) (9,504) 
Purchases of investments(88,724) (70,312) 
Sales of investments3,183  100  
Maturities of investments40,351    
Net cash used in investing activities(51,262) (79,716) 
Financing activities
Proceeds from the issuance of convertible preferred stock, net of issuance costs39,801    
Proceeds from the issuance of common stock, net of issuance costs69,701    
Proceeds from the issuance of shares resulting from employee equity plans11,052  8,965  
Tax payments related to net share settlements on restricted stock units(6,065) (1,792) 
Borrowings from warehouse credit facilities290,891  149,900  
Repayments to warehouse credit facilities(271,627) (125,206) 
Borrowings from secured revolving credit facility39,587    
Repayments to secured revolving credit facility(36,816)   
Other payables—deposits held in escrow19,056  11,602  
Principal payments for finance lease obligations(30)   
Cash paid for debt issuance costs(4)   
Net cash provided by financing activities155,546  43,469  
Effect of exchange rate changes on cash and cash equivalents(22) 38  
Net change in cash, cash equivalents, and restricted cash113,006  (179,818) 
Cash, cash equivalents, and restricted cash:
Beginning of period247,448  439,055  
End of period
$360,454  $259,237  
Supplemental disclosure of cash flow information
Cash paid for interest
2,133  1,202  
Non-cash transactions
Stock-based compensation capitalized in property and equipment1,151  561  
Property and equipment additions in accounts payable and accrued liabilities1,492  620  
Leasehold improvements paid directly by lessor  3,444  

See Notes to the consolidated financial statements.

3

Table of Contents
Redfin Corporation and Subsidiaries
Consolidated Statements of Changes in Mezzanine Equity and Stockholders’ Equity
(in thousands, except share amounts, unaudited)
Series A Convertible Preferred StockCommon StockAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive IncomeTotal Stockholders' Equity
SharesAmountSharesAmount
Balance, March 31, 2019—  $—  90,926,249  $91  $552,418  $(238,160) $1  $314,349  
Issuance of common stock pursuant to employee stock purchase program—  —  262,110  —  3,246  —  —  3,246  
Issuance of common stock pursuant to exercise of stock options—  —  420,104  1  2,038  —  —  2,039  
Issuance of common stock pursuant to settlement of restricted stock units—  —  227,026  —  —  —  —    
Common stock surrendered for employees' tax liability upon settlement of restricted stock units—  —  (57,952) —  (975) —  —  (975) 
Stock-based compensation—  —  —  —  6,167  —  —  6,167  
Other comprehensive income—  —  —  —  —  —  43  43  
Net loss—  —  —  —  —  (12,625) —  (12,625) 
Balance, June 30, 2019—  $—  91,777,537  $92  $562,894  $(250,785) $44  $312,245  
Balance, March 31, 2020—  $—  93,957,774  $94  $591,420  $(311,903) $575  $280,186  
Issuance of convertible preferred stock, net40,000  39,801  —  —  —  —  —  —  
Issuance of common stock, net—  —  4,484,305  4  69,697  —  —  69,701  
Issuance of common stock pursuant to employee stock purchase program—  —  186,925  —  3,436  —  —  3,436  
Issuance of common stock pursuant to exercise of stock options—  —  519,432  1  3,588  —  —  3,589  
Issuance of common stock pursuant to settlement of restricted stock units—  —  344,075  —  —  —  —    
Common stock surrendered for employees' tax liability upon settlement of restricted stock units—  —  (98,079) —  (2,758) —  —  (2,758) 
Stock-based compensation—  —  —  —  7,851  —  —  7,851  
Other comprehensive loss—  —  —  —  —  —  (134) (134) 
Net loss—  —  —  —  —  (6,611) —  (6,611) 
Balance, June 30, 202040,000  $39,801  99,394,432  $99  $673,234  $(318,514) $441  $355,260  

4

Table of Contents

Series A Convertible Preferred StockCommon StockAdditional Paid-in CapitalAccumulated DeficitAccumulated
Other
Comprehensive
Income
Total Stockholders' Equity
SharesAmountSharesAmount
Balance, December 31, 2018—  $—  90,151,341  $90  $542,829  $(170,981) $  $371,938  
Issuance of common stock pursuant to employee stock purchase program—  —  262,110  —  3,246  —  —  3,246  
Issuance of common stock pursuant to exercise of stock options—  —  1,099,599  2  5,768  —  —  5,770  
Issuance of common stock pursuant to settlement of restricted stock units—  —  366,915  —  —  —  —    
Common stock surrendered for employees' tax liability upon settlement of restricted stock units—  —  (102,428) —  (1,792) —  —  (1,792) 
Stock-based compensation—  —  —  —  12,843  —  —  12,843  
Other comprehensive income—  —  —  —  —  —  44  44  
Net loss—  —  —  —  —  (79,804) —  (79,804) 
Balance, June 30, 2019—  $—  91,777,537  $92  $562,894  $(250,785) $44  $312,245  
Balance, December 31, 2019—  $—  93,001,597  $93  $583,097  $(251,786) $42  $331,446  
Issuance of convertible preferred stock, net40,000  39,801  —  —  —  —  —  —  
Issuance of common stock, net—  —  4,484,305  4  69,697  —  —  69,701  
Issuance of common stock pursuant to employee stock purchase program—  —  186,925  —  3,436  —  —  3,436  
Issuance of common stock pursuant to exercise of stock options—  —  1,257,830  1  7,503  —  —  7,504  
Issuance of common stock pursuant to settlement of restricted stock units—  —  664,515  1  (1) —  —    
Common stock surrendered for employees' tax liability upon settlement of restricted stock units—  —  (200,740) —  (6,065) —  —  (6,065) 
Stock-based compensation—  —  —  —