Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported) February 14, 2019

 
Redfin Corporation
 
 
(Exact name of registrant as specific in its charter)
 

 
Delaware
 
001-38160
 
74-3064240
 
 
(State or other jurisdiction of incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
 
 
 
 
 
 
 
 
 
1099 Stewart Street, Suite 600
Seattle, WA
 
 
 
98101
 
 
(Address of principal executive offices)
 
 
 
(Zip Code)
 

Registrant's telephone number, including area code (206) 576-8333

 
 
 
 
(Former name or former address, if changed since last report.)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
 
¨
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
 
¨
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
 
¨
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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. ¨



Item 2.02 Results of Operations and Financial Condition.

On February 14, 2019, Redfin Corporation (the "Company") reported its financial results for the quarter and year ended December 31, 2018. A copy of the press release issued by the Company is furnished as Exhibit 99.1 to this report.

Item 9.01 Financial Statements and Exhibits.

 
Exhibit Number
 
Description
 
 
99.1
 
 


1


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
 
Redfin Corporation
 
 
 
 
(Registrant)
 
 
 
 
 
 
 
Date: February 14, 2019
 
/s/ Chris Nielsen
 
 
 
 
Chris Nielsen
Chief Financial Officer
 

Exhibit




http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12713636&doc=3

Redfin Fourth-Quarter 2018 Revenue up 30% Year-over-Year to $124.1 Million

SEATTLE - February 14, 2019 - Redfin Corporation (NASDAQ: RDFN) today announced financial results for the fourth quarter and full year ended December 31, 2018. All financial measures, unless otherwise noted, are presented on a GAAP basis and include stock-based compensation as well as depreciation and amortization expenses.

Fourth Quarter 2018
Revenue increased 30% year-over-year to $124.1 million during the fourth quarter. Gross profit was $26.2 million, a decrease of 10% from $29.2 million in the fourth quarter of 2017. Gross margin was 21%, compared to 30% in the fourth quarter of 2017. Real estate services(1) gross profit was $27.8 million, a decrease of 6% from $29.7 million in the fourth quarter of 2017. Real estate services gross margin was 28%, compared to 33% in the fourth quarter of 2017. Operating expenses were $38.7 million, an increase of 23% from $31.5 million in the fourth quarter of 2017. Operating expenses were 31% of revenue, down from 33% in the fourth quarter of 2017.

Net loss was $12.2 million, compared to net loss of $1.8 million in the fourth quarter of 2017. Stock-based compensation was $6.0 million, up from $3.1 million in the fourth quarter of 2017. Depreciation and amortization was $2.3 million, up from $1.9 million in the fourth quarter of 2017. Interest income was $2.3 million and interest expense was $2.1 million, up from $0.5 million and zero, respectively, in the fourth quarter of 2017.

GAAP net loss per share, basic and diluted, was $0.14, compared to GAAP net loss per share, basic and diluted, of $0.02 in the fourth quarter of 2017.

Full Year 2018
Revenue increased 32% year-over-year to $486.9 million in 2018. Gross profit was $119.4 million, an increase of 7% from $111.8 million in 2017. Gross margin was 25%, compared to 30% in 2017. Operating expenses were $163.4 million, an increase of 28% from $127.8 million in 2017. Operating expenses were 34% of revenue, down from 35% in 2017.

Net loss was $42.0 million, compared to net loss of $15.0 million in 2017. Stock-based compensation was $20.4 million, up from $11.1 million in 2017. Depreciation and amortization was $8.5 million, up from $7.2 million in 2017.

GAAP net loss per share, basic and diluted, reflects accretion expense for changes in the fair value of our redeemable convertible preferred stock, which was outstanding prior to its conversion to common stock following our initial public offering ("IPO"). GAAP net loss per share, basic and diluted, was $0.49, compared to GAAP net loss per share, basic and diluted, of $4.47 in 2017. Adjusted net loss per share, basic and diluted,(2) which excludes accretion expense for changes in the fair value of our redeemable convertible preferred stock and assumes its conversion to common stock in connection with our IPO as of the first day of the reported period, was $0.49 and $0.20 in 2018 and 2017, respectively. As a result of the

1



conversion of our redeemable convertible preferred stock in connection with our IPO, there was no accretion expense in 2018.

“Redfin’s fourth-quarter results again exceeded our expectations, with continued year-over-year gains in market share, and a new report showing that our customer satisfaction is 49% higher than our competitors’,” said Redfin CEO Glenn Kelman. “But what we’re most excited about are the first signs that our broader vision is coming to life in 2019: more Redfin homebuyers are choosing a Redfin mortgage because of an investment in local service, more Redfin home sellers are signing up for our concierge service to spruce up the home before its market debut, and then more of those home sellers are also meeting our agents to buy their next place. RedfinNow, our business of buying a home on our own account and then selling it, is increasingly drawing on our brokerage’s field organization and systems, giving us more confidence that we can grow this business quickly without having to build everything from scratch.”

Highlights
Reached market share of 0.81% of U.S. existing home sales by value in the fourth quarter of 2018, an increase of 0.10 percentage points from the fourth quarter of 2017.(3) 
Redfin saved homebuyers and sellers over $31 million in the fourth quarter and over $154 million in 2018, compared to a 2.5% commission typically charged by traditional agents.
Earned a Net Promoter Score, a measure of customer satisfaction, that is 49% higher than competing brokerages’, as measured in a Redfin-commissioned November 2018 survey of people who bought or sold a home in the previous 12 months. 2018 marked the fourth consecutive year that our customer satisfaction was higher than that of traditional brokers.
Redfin continued to expand its nationwide footprint in 2018, launching brokerage services in four new markets: Asheville, NC, Connecticut, Palm Springs, CA and Spokane, WA. Redfin is now reaching customers across 89 markets total and services 77% of the U.S. population. In addition, Redfin introduced the 1% listing fee to Nashville and Salt Lake City in the fourth quarter.
Expanded Redfin Concierge Service to Seattle, where Redfin coordinates, supervises and pays for services such as deep cleaning, painting, staging and landscaping, all for a two percent listing fee. Redfin agents create a custom plan for each home to make sure it has a great debut on the market. The service is also available for homes $500K or higher in Los Angeles, Washington, D.C. and San Francisco, with additional markets slated to launch in 2019.
Redfin is now providing customers with an entirely digital home buying experience in markets that offer Redfin Mortgage. Through a new partnership with Notarize, Redfin Mortgage clients have the ability to close on a home quickly, easily and completely online. This is another example of Redfin using technology to improve the entire home-buying process from home search, mortgage application and approval, to purchasing and closing on a home.
Expanded Redfin Mortgage to Colorado. As of the end of 2018, Redfin Mortgage had launched in ten states and Washington, D.C., with plans to launch in additional states in the coming months. Customers in those states can now get conforming mortgages and jumbo loans, with a 30-day closing guarantee. By integrating a lending operation with Redfin's existing brokerage and title businesses, Redfin makes closing on a home more efficient.
Redfin increased our proportion of women technologists from 32 percent in 2017 to 33 percent in 2018. We continue to work towards our goal of 50 percent overall. We are also prioritizing racial and ethnic diversity, as we believe employing a diverse workforce will help us deliver better service to all people.

(1) Prior to reporting our financial results for the second quarter ended June 30, 2018, we had one reportable segment ("Real estate") that reflected revenue derived from commissions and fees charged on real estate services transactions closed by us or partner agents representing customers in buying and selling homes. Beginning with our financial results for the second quarter ended June 30, 2018, we recognized a new reportable segment ("Properties") that reflects revenue from when we sell homes that we previously bought directly from homeowners through RedfinNow. Concurrent with our recognition of the

2



new "Properties" segment, we changed the name of our "Real estate" segment to "Real estate services." Prior to our financial results for the second quarter ended June 30, 2018, we included the results from our "Properties" segment as part of our "Other" segment.

(2) Adjusted net loss per share, basic and diluted, are non-GAAP financial measures as defined by the Securities and Exchange Commission ("SEC"). A reconciliation of GAAP to non-GAAP financial measures is provided below in the tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

(3) We calculate the aggregate value of U.S. home sales by multiplying the total number of U.S. existing home sales by the mean sale price of these homes, each as reported by the National Association of REALTORS®. We calculate our market share by aggregating the home value of real estate services transactions conducted by our lead agents or our partner agents. Then, in order to account for both the sell- and buy-side components of each transaction, we divide that value by two-times the estimated aggregate value of U.S. home sales.

Business Outlook
The following forward-looking statements reflect Redfin's expectations as of February 14, 2019, and are subject to substantial uncertainty.

For the first quarter of 2019 we expect:
Total revenue between $101.5 million and $105.1 million, representing year-over-year growth between 27% and 32% compared to the first quarter of 2018. Properties segment revenue between $15.0 million and $16.5 million is included in the guidance provided.
Net loss between $69.2 million and $67.8 million, compared to net loss of $36.4 million in the first quarter of 2018. This guidance includes approximately $6.6 million of expected stock-based compensation and $2.1 million of expected depreciation and amortization.

Conference Call
Redfin will webcast a conference call to discuss the results at 1:30 p.m. Pacific Time today. The webcast will be open to the public at http://investors.redfin.com. The webcast will remain available on the investor relations website for at least three months following the conference call.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including statements regarding expansion of Redfin Concierge Service and Redfin Mortgage and our employee diversity goals, each as described under Highlights, and our future operating results, as described under Business Outlook. We believe our expectations related to these forward-looking statements are reasonable, but actual results may turn out to be materially different. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2018, which is available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.

Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we have used non-GAAP financial measures, specifically adjusted net loss per share, basic

3



and diluted, in this press release. The presentation of these financial measures is not intended to be considered in isolation or as a substitute of, or superior to, financial information prepared and presented in accordance with GAAP.

We believe these non-GAAP financial measures enable comparison of financial results between periods where net loss per share, basic and diluted, may vary independent of business performance. There are limitations associated with the use of non-GAAP financial measures as an analytical tool, in particular the adjustments to our GAAP financial measures reflect the exclusion of accretion expense, which is related to our redeemable convertible preferred stock that converted into common stock upon the completion of our IPO in August 2017. Included in weighted-average shares outstanding, basic and diluted, are shares of redeemable convertible preferred stock as if all such shares were converted to common stock on the first date of each period presented. These measures may be different from non-GAAP financial measures used by other companies, limiting its usefulness for comparison purposes. A reconciliation of adjusted net loss per share, basic and diluted, to net loss per share, basic and diluted, has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

About Redfin
Redfin (www.redfin.com) is a technology-powered residential real estate company. Founded by software engineers, we run the country's #1 most-visited brokerage website and offer a host of online tools to consumers, including the Redfin Estimate. We represent people buying and selling homes in over 85 markets throughout the United States and Canada. Our mission is to redefine real estate in the consumer’s favor. In a commission-driven industry, we put the customer first. We do this by pairing our own agents with our own technology to create a service that is faster, better, and costs less. Since our launch in 2006 through 2018, we have helped customers buy or sell more than 170,000 homes worth more than $85 billion.

Redfin-F

Contacts

Investor Relations
Elena Perron, 206-576-8610
ir@redfin.com

Public Relations
Mariam Sughayer, 206-876-1322
press@redfin.com

4




Redfin Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2018
 
2017
 
2018
 
2017
 
Unaudited
 
 
 
 
Revenue
$
124,129

 
$
95,754

 
$
486,920

 
$
370,036

Cost of revenue (1)
97,920

 
66,583

 
367,496

 
258,216

Gross profit
26,209

 
29,171

 
119,424

 
111,820

Operating expenses
 
 
 
 
 
 
 
Technology and development (1)
13,692

 
11,287

 
53,797

 
42,532

Marketing (1)
8,054

 
6,072

 
44,061

 
32,251

General and administrative (1)
16,969

 
14,181

 
65,500

 
53,009

Total operating expenses
38,715

 
31,540

 
163,358

 
127,792

Loss from operations
(12,506
)
 
(2,369
)
 
(43,934
)
 
(15,972
)
Interest income
2,334

 
495

 
5,416

 
882

Interest expense
(2,071
)
 

 
(3,681
)
 

Other income, net
21

 
76

 
221

 
88

Net loss
$
(12,222
)
 
$
(1,798
)
 
$
(41,978
)
 
$
(15,002
)
Accretion of redeemable convertible preferred stock
$

 
$

 
$

 
$
(175,915
)
Net loss attributable to common stock - basic and diluted
$
(12,222
)
 
$
(1,798
)
 
$
(41,978
)
 
$
(190,917
)
Net loss per share attributable to common stock - basic and diluted
$
(0.14
)
 
$
(0.02
)
 
$
(0.49
)
 
$
(4.47
)
Weighted average shares - basic and diluted
89,650,602

 
81,428,862

 
85,669,039

 
42,722,114


(1) Includes stock-based compensation as follows:
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2018
 
2017
 
2018
 
2017
 
Unaudited
 
 
 
 
Cost of revenue
$
1,506

 
$
774

 
$
5,567

 
$
2,902

Technology and development
2,241

 
1,024

 
7,576

 
3,325

Marketing
231

 
124

 
662

 
487

General and administrative
1,988

 
1,151

 
6,633

 
4,387

Total
$
5,966

 
$
3,073

 
$
20,438

 
$
11,101


5



Redfin Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
 
December 31, 2018
 
December 31, 2017
Assets
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
432,608

 
$
208,342

Restricted cash
6,446

 
4,316

Prepaid expenses
11,916

 
8,613

Accrued revenue, net
15,363

 
13,334

Inventory
22,694

 
3,382

Loans held for sale
4,913

 
1,891

Other current assets
2,307

 
328

Total current assets
496,247

 
240,206

Property and equipment, net
25,187

 
22,318

Intangible assets, net
2,806

 
3,294

Goodwill
9,186

 
9,186

Other assets
9,395

 
6,951

Total assets
542,821

 
281,955

Liabilities and stockholders' equity
 
 
 
Current liabilities
 
 
 
Accounts payable
$
2,516

 
$
1,901

Accrued liabilities
30,837

 
26,605

Other payables
6,544

 
4,068

Warehouse credit facilities
4,733

 
2,016

Current portion of deferred rent
1,588

 
1,267

Total current liabilities
46,218

 
35,857

Deferred rent, net of current portion
11,079

 
10,668

Convertible senior notes, net
113,586

 

Total liabilities
170,883

 
46,525

Stockholders’ equity/(deficit)
 
 
 
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 90,151,341 and 81,468,891 shares issued and outstanding, respectively
90

 
81

Preferred stock—par value $0.001 per share; 10,000,000 shares authorized and no shares issued and outstanding

 

Additional paid-in capital
542,829

 
364,352

Accumulated deficit
(170,981
)
 
(129,003
)
Total stockholders’ equity
371,938

 
235,430

Total liabilities and stockholders’ equity
$
542,821

 
$
281,955


6



Redfin Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
 
Year Ended December 31,
 
2018
 
2017
Operating activities
 
 
 
Net loss
$
(41,978
)
 
$
(15,002
)
Adjustments to reconcile net loss to net cash used in operating activities
 
 
 
Depreciation and amortization
8,465

 
7,176

Stock-based compensation
20,438

 
11,101

Amortization of debt discount and issuance costs
2,584

 

Change in assets and liabilities
 
 
 
Prepaid expenses
(3,303
)
 
(4,225
)
Accrued revenue
(2,029
)
 
(2,709
)
Inventory
(19,312
)
 
(3,382
)
Other current assets
(1,978
)
 
8,452

Other assets
(444
)
 
223

Accounts payable
617

 
(252
)
Accrued liabilities
4,191

 
5,115

Other payables
318

 

Deferred lease liability
(1,249
)
 
749

Origination of loans held for sale
(86,023
)
 
(11,008
)
Proceeds from sale of loans originated as held for sale
83,001

 
9,117

Net cash provided by (used in) operating activities
(36,702
)
 
5,355

Investing activities
 
 
 
Sales and maturities of short-term investments

 
2,741

Purchases of short-term investments

 
(992
)
Purchases of property and equipment
(8,303
)
 
(12,113
)
Purchases of investments
(2,000
)
 

Net cash used in investing activities
(10,303
)
 
(10,364
)
Financing activities
 
 
 
Proceeds from issuance of convertible senior notes, net
138,953

 

Proceeds from follow-on offering, net
107,593

 

Proceeds from exercise of stock options
23,407

 
3,003

Tax payment related to net share settlements on restricted stock units
(1,426
)
 

Proceeds from initial public offering, net of underwriting discounts

 
148,088

Payment of initial public offering costs

 
(3,558
)
Borrowings from warehouse credit facilities
83,842

 
10,746

Repayments of warehouse credit facilities
(81,125
)
 
(8,730
)
Other payables - deposits held in escrow
2,158

 
273

Net cash provided by financing activities
273,402

 
149,822

Net change in cash, cash equivalents, and restricted cash
226,397

 
144,813

Cash, cash equivalents, and restricted cash
 
 
 
Beginning of period
212,658

 
67,845

End of period
$
439,055

 
$
212,658

Supplemental disclosure of non-cash investing and financing activities
 
 
 
Conversion of redeemable convertible preferred stock to common stock
$

 
$
831,331

Accretion of redeemable convertible preferred stock
$

 
$
(175,915
)
Stock-based compensation capitalized in property and equipment
$
(522
)
 
$
(268
)
Property and equipment additions in accounts payable and accrued expenses
$
(82
)
 
$
(31
)
Leasehold improvements paid directly by lessor
$
(1,980
)
 
$
(822
)

7




Redfin Corporation and Subsidiaries
Supplemental Financial Information and Business Metrics
(unaudited)
 
Three Months Ended
 
Twelve Months Ended
 
Dec. 31, 2018
 
Sep. 30, 2018
 
Jun. 30, 2018
 
Mar. 31, 2018
 
Dec. 31, 2017
 
Sep. 30, 2017
 
Jun. 30, 2017
 
Mar. 31, 2017
 
Dec. 31, 2016
 
Dec. 31, 2018
 
Dec. 31, 2017
 
Dec. 31, 2016
Monthly average visitors (in thousands)
25,212

 
29,236

 
28,777

 
25,820

 
21,377

 
24,518

 
24,400

 
20,162

 
16,058

 
27,261

 
22,623

 
16,215

Real estate services transactions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokerage
9,822

 
12,876

 
12,971

 
7,285

 
8,598

 
10,527

 
10,221

 
5,692

 
6,432

 
42,954

 
35,038

 
25,868

Partner
2,749

 
3,333

 
3,289

 
2,237

 
2,739

 
3,101

 
2,874

 
2,041

 
2,281

 
11,608

 
10,755

 
9,482

Total
12,571

 
16,209

 
16,260

 
9,522

 
11,337

 
13,628

 
13,095

 
7,733

 
8,713

 
54,562

 
45,793

 
35,350

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate services revenue per transaction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brokerage
$
9,569

 
$
9,227

 
$
9,510

 
$
9,628

 
$
9,659

 
$
9,289

 
$
9,301

 
$
9,570

 
$
9,428

 
$
9,459

 
$
9,429

 
$
9,436

Partner
2,232

 
2,237

 
2,281

 
2,137

 
2,056

 
1,960

 
1,945

 
1,911

 
1,991

 
2,229

 
1,971

 
1,719

Aggregate
$
7,964

 
$
7,790

 
$
8,048

 
$
7,869

 
$
7,822

 
$
7,621

 
$
7,687

 
$
7,548

 
$
7,481

 
$
7,921

 
$
7,677

 
$
7,366

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate home value of real estate services transactions (in millions)
$
5,825

 
$
7,653

 
$
7,910

 
$
4,424

 
$
5,350

 
$
6,341

 
$
6,119

 
$
3,470

 
$
4,018

 
$
25,812

 
$
21,280

 
$
16,199

U.S. market share by value
0.81
%
 
0.85
%
 
0.83
%
 
0.73
%
 
0.71
%
 
0.71
%
 
0.64
%
 
0.58
%
 
0.56
%
 
0.81
%
 
0.67
%
 
0.54
%
Revenue from top-10 Redfin markets as a percentage of real estate services revenue
66
%
 
66
%
 
68
%
 
66
%
 
69
%
 
69
%
 
69
%
 
68
%
 
71
%
 
67
%
 
69
%
 
72
%
Average number of lead agents
1,419

 
1,397

 
1,415

 
1,327

 
1,118

 
1,028

 
1,010

 
935

 
796

 
1,390

 
1,023

 
763


8



Redfin Corporation and Subsidiaries
Supplemental Financial Information
(in thousands)
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2018
 
2017
 
2018
 
2017
 
Unaudited
 
 
 
 
Revenue by segment
 
 
 
 
 
 
 
Brokerage revenue
$
93,985

 
$
83,045

 
$
406,293

 
$
330,372

Partner revenue
6,135

 
5,631

 
25,875

 
21,198

Total real estate services revenue
100,120

 
88,676

 
432,168

 
351,570

Properties revenue
21,604

 
5,147

 
44,993

 
10,491

Other revenue
2,476

 
1,931

 
9,882

 
7,975

Intercompany eliminations
(71
)
 

 
(123
)
 

Total revenue
$
124,129

 
$
95,754

 
$
486,920

 
$
370,036

 
 
 
 
 
 
 
 
Cost of revenue by segment
 
 
 
 
 
 
 
Real estate services cost of revenue
$
72,294

 
$
58,982

 
$
309,069

 
$
237,832

Properties cost of revenue
22,527

 
5,022

 
46,613

 
10,384

Other cost of revenue
3,170

 
2,579

 
11,937

 
10,000

Intercompany eliminations
(71
)
 

 
(123
)
 

Total cost of revenue
$
97,920

 
$
66,583

 
$
367,496

 
$
258,216

 
 
 
 
 
 
 
 
Gross profit by segment
 
 
 
 
 
 
 
Real estate services gross profit
$
27,826

 
$
29,694

 
$
123,099

 
$
113,738

Properties gross profit
(923
)
 
125

 
(1,620
)
 
107

Other gross profit
(694
)
 
(648
)
 
(2,055
)
 
(2,025
)
Total gross profit
$
26,209

 
$
29,171

 
$
119,424

 
$
111,820


9




Redfin Corporation and Subsidiaries
Reconciliation of GAAP to non-GAAP Financial Measures
(unaudited, in thousands, except share and per share amounts)
 
Three Months Ended December 31,
 
Twelve Months Ended December 31,
 
2018*
 
2017*
 
2018*
 
2017
Net loss attributable to common stock, as reported
$
(12,222
)
 
$
(1,798
)
 
$
(41,978
)
 
$
(190,917
)
Adjustments
 
 
 
 
 
 
 
Add-back: Accretion of redeemable convertible preferred stock

 

 

 
175,915

Net loss attributable to common stock, adjusted
$
(12,222
)
 
$
(1,798
)
 
$
(41,978
)
 
$
(15,002
)
Non-GAAP adjusted net loss per share - basic and diluted
$
(0.14
)
 
$
(0.02
)
 
$
(0.49
)
 
$
(0.20
)
Weighted-average shares used to compute non-GAAP adjusted net loss per share — basic and diluted
89,650,602

 
81,428,862

 
85,669,039

 
75,064,269

 
 
 
 
 
 
 
 
Reconciliation of weighted-average shares used to compute net loss per share attributable to common stockholders, from GAAP to non-GAAP — basic and diluted
 
 
 
 
 
 
 
Weighted-average shares used to compute GAAP net loss per share attributable to common stockholders — basic and diluted
89,650,602

 
81,428,862

 
85,669,039

 
42,722,114

Adjustments
 
 
 
 
 
 
 
Conversion of redeemable convertible preferred stock as of beginning of period presented

 

 

 
32,342,155

Weighted-average shares used to compute non-GAAP adjusted net loss per share — basic and diluted
89,650,602

 
81,428,862

 
85,669,039

 
75,064,269


* All amounts for 2018 and for three month ended December 31, 2017 are presented on a GAAP basis and included for comparative purposes.


10