Document

Redfin Corporation and Subsidiaries

Segment Financial Information

(in thousands, unaudited)


	Three Months Ended
	March 31, 2022
	Real estate services		Properties		Rentals		Mortgage		Other		Corporate Overhead and Intercompany Eliminations		Total
Revenue	$	177,487	$	379,753	$	38,044	$	2,917	$	4,368	$	(5,223)	$	597,346
Cost of revenue	153,784		358,866		7,193		5,517		4,671		(5,223)		524,808
Gross profit	23,703		20,887		30,851		(2,600)		(303)		—		72,538
Operating expenses
Technology and development	26,739		4,119		14,282		2,347		1,036		1,117		49,640
Marketing	30,844		1,153		11,042		28		53		222		43,342
General and administrative	22,992		2,825		24,192		1,524		712		6,721		58,966
Restructuring and reorganization(5)	—		—		—		—		—		5,710		5,710
Total operating expenses	80,575		8,097		49,516		3,899		1,801		13,770		157,658
Income (loss) from operations	(56,872)		12,790		(18,665)		(6,499)		(2,104)		(13,770)		(85,120)
Interest income, interest expense, income tax expense, and other expense, net	—		(1,624)		469		1		1		(4,533)		(5,686)
Net (loss) income	$	(56,872)	$	11,166	$	(18,196)	$	(6,498)	$	(2,103)	$	(18,303)	$	(90,806)


	Three Months Ended
	March 31, 2022
	Real estate services		Properties		Rentals		Mortgage		Other		Corporate Overhead and Intercompany Eliminations		Total
Net (loss) income	$	(56,872)	$	11,166	$	(18,196)	$	(6,498)	$	(2,103)	$	(18,303)	$	(90,806)
Interest income(1)	—		(25)		—		(318)		(1)		(194)		(538)
Interest expense(2)	—		1,649		—		277		—		2,212		4,138
Income tax expense	—		—		(203)		—		—		337		134
Depreciation and amortization	4,018		537		9,356		302		255		345		14,813
Stock-based compensation(3)	10,140		1,537		2,240		601		369		1,901		16,788
Acquisition-related costs(4)	—		—		—		—		—		917		917
Restructuring and reorganization(5)	—		—		—		—		—		5,710		5,710

Adjusted EBITDA	$	(42,714)	$	14,864	$	(6,803)	$	(5,636)	$	(1,480)	$	(7,075)	$	(48,844)

(1) Interest income includes $0.3 million of interest income related to originated mortgage loans for the three months ended March 31, 2022.

(2) Interest expense includes $0.3 million of interest expense related to our warehouse credit facilities for the three months ended March 31, 2022.

(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.

(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention for our mortgage and rentals segments due to the restructuring and reorganization activities from our acquisitions of Bay Equity and RentPath, respectively.


	Three Months Ended
	December 31, 2021
	Real estate services		Properties		Rentals		Mortgage		Other		Corporate Overhead and Intercompany Eliminations		Total
Revenue	$	224,732	$	377,065	$	38,923	$	3,996	$	3,347	$	(5,006)	$	643,057
Cost of revenue	149,529		373,105		6,774		6,690		3,941		(5,006)		535,033
Gross profit	75,203		3,960		32,149		(2,694)		(594)		—		108,024
Operating expenses
Technology and development	20,727		3,724		13,876		2,582		990		1,995		43,894
Marketing	11,923		466		9,450		149		104		305		22,397
General and administrative	23,842		2,828		25,530		2,620		823		11,319		66,962

Total operating expenses	56,492		7,018		48,856		5,351		1,917		13,619		133,253
Income (loss) from operations	18,711		(3,058)		(16,707)		(8,045)		(2,511)		(13,619)		(25,229)
Interest income, interest expense, income tax expense, and other expense, net	—		(1,723)		2,777		1		1		(2,829)		(1,773)
Net income (loss)	$	18,711	$	(4,781)	$	(13,930)	$	(8,044)	$	(2,510)	$	(16,448)	$	(27,002)


	Three Months Ended
	December 31, 2021
	Real estate services		Properties		Rentals		Mortgage		Other		Corporate Overhead and Intercompany Eliminations		Total
Net income (loss)	$	18,711	$	(4,781)	$	(13,930)	$	(8,044)	$	(2,510)	$	(16,448)	$	(27,002)
Interest income(1)	—		(2)		—		(424)		(1)		(159)		(586)
Interest expense(2)	—		1,725		—		431		—		2,214		4,370
Income tax expense	—		—		(2,177)		—		—		1,433		(744)
Depreciation and amortization	3,583		554		9,307		387		247		525		14,603
Stock-based compensation(3)	8,963		1,492		994		820		348		2,669		15,286



Adjusted EBITDA	$	31,257	$	(1,012)	$	(5,806)	$	(6,830)	$	(1,916)	$	(9,766)	$	5,927

(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended December 31, 2021.

(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended December 31, 2021.

(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.


	Three Months Ended
	September 30, 2021
	Real estate services		Properties		Rentals		Mortgage		Other		Corporate Overhead and Intercompany Eliminations		Total
Revenue	$	257,795	$	238,417	$	40,406	$	5,013	$	3,193	$	(4,750)	$	540,074
Cost of revenue	161,449		238,397		7,395		6,705		3,576		(4,750)		412,772
Gross profit	96,346		20		33,011		(1,692)		(383)		—		127,302
Operating expenses
Technology and development	20,732		3,602		13,849		2,910		586		1,979		43,658
Marketing	33,894		645		14,113		149		42		300		49,143
General and administrative	18,383		2,258		23,264		2,334		533		7,623		54,395

Total operating expenses	73,009		6,505		51,226		5,393		1,161		9,902		147,196
Income (loss) from operations	23,337		(6,485)		(18,215)		(7,085)		(1,544)		(9,902)		(19,894)
Interest income, interest expense, income tax expense, and other expense, net	(56)		(1,456)		311		1		1		2,144		945
Net income (loss)	$	23,281	$	(7,941)	$	(17,904)	$	(7,084)	$	(1,543)	$	(7,758)	$	(18,949)


	Three Months Ended
	September 30, 2021
	Real estate services		Properties		Rentals		Mortgage		Other		Corporate Overhead and Intercompany Eliminations		Total
Net income (loss)	$	23,281	$	(7,941)	$	(17,904)	$	(7,084)	$	(1,543)	$	(7,758)	$	(18,949)
Interest income(1)	—		(1)		—		(402)		(1)		(176)		(580)
Interest expense(2)	—		1,456		—		399		—		2,216		4,071
Income tax expense	—		—		(311)		—		—		—		(311)
Depreciation and amortization	3,470		530		9,189		427		181		488		14,285
Stock-based compensation(3)	8,138		1,312		143		721		167		2,629		13,110
Acquisition-related costs(4)	—		—		—		—		—		202		202


Adjusted EBITDA	$	34,889	$	(4,644)	$	(8,883)	$	(5,939)	$	(1,196)	$	(2,399)	$	11,828

(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended September 30, 2021.

(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended September 30, 2021.

(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.


	Three Months Ended
	June 30, 2021
	Real estate services		Properties		Rentals		Mortgage		Other		Corporate Overhead and Intercompany Eliminations		Total
Revenue	$	252,199	$	172,445	$	42,548	$	5,099	$	3,422	$	(4,398)	$	471,315
Cost of revenue	164,125		167,420		7,570		6,832		3,630		(4,398)		345,179
Gross profit	88,074		5,025		34,978		(1,733)		(208)		—		126,136
Operating expenses
Technology and development	20,010		3,080		13,568		2,536		479		1,815		41,488
Marketing	41,746		572		12,607		130		30		313		55,398
General and administrative	18,498		2,078		23,116		1,927		416		13,532		59,567

Total operating expenses	80,254		5,730		49,291		4,593		925		15,660		156,453
Income (loss) from operations	7,820		(705)		(14,313)		(6,326)		(1,133)		(15,660)		(30,317)
Interest income, interest expense, income tax expense, and other expense, net	(3)		(662)		212		1		1		2,890		2,439
Net income (loss)	$	7,817	$	(1,367)	$	(14,101)	$	(6,325)	$	(1,132)	$	(12,770)	$	(27,878)


	Three Months Ended
	June 30, 2021
	Real estate services		Properties		Rentals		Mortgage		Other		Corporate Overhead and Intercompany Eliminations		Total
Net income (loss)	$	7,817	$	(1,367)	$	(14,101)	$	(6,325)	$	(1,132)	$	(12,770)	$	(27,878)
Interest income(1)	—		(2)		—		(414)		(1)		(131)		(548)
Interest expense(2)	—		664		—		407		—		2,149		3,220
Income tax expense	—		—		(212)		—		—		(4,840)		(5,052)
Depreciation and amortization	3,180		412		9,110		313		167		495		13,677
Stock-based compensation(3)	9,042		1,239		113		770		191		2,388		13,743
Acquisition-related costs(4)	—		—		—		—		—		5,616		5,616


Adjusted EBITDA	$	20,039	$	946	$	(5,090)	$	(5,249)	$	(775)	$	(7,093)	$	2,778

(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended June 30, 2021.

(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2021.

(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.


	Three Months Ended
	March 31, 2021
	Real estate services		Properties		Rentals		Mortgage		Other		Corporate Overhead and Intercompany Eliminations		Total
Revenue	$	168,609	$	92,726	$	—	$	5,711	$	3,646	$	(2,373)	$	268,319
Cost of revenue	128,216		91,130		—		5,869		3,119		(2,373)		225,961
Gross profit	40,393		1,596		—		(158)		527		—		42,358
Operating expenses
Technology and development	20,119		2,830		199		2,367		473		1,690		27,678
Marketing	11,182		207		5		134		34		240		11,802
General and administrative	23,932		2,429		33		1,426		517		9,054		37,391

Total operating expenses	55,233		5,466		237		3,927		1,024		10,984		76,871
Loss from operations	(14,840)		(3,870)		(237)		(4,085)		(497)		(10,984)		(34,513)
Interest income, interest expense, income tax expense, and other expense, net	(28)		(420)		—		1		1		(825)		(1,271)
Net loss	$	(14,868)	$	(4,290)	$	(237)	$	(4,084)	$	(496)	$	(11,809)	$	(35,784)


	Three Months Ended
	March 31, 2021
	Real estate services		Properties		Rentals		Mortgage		Other		Corporate Overhead and Intercompany Eliminations		Total
Net loss	$	(14,868)	$	(4,290)	$	(237)	$	(4,084)	$	(496)	$	(11,809)	$	(35,784)
Interest income(1)	—		(5)		—		(357)		(1)		(152)		(515)
Interest expense(2)	—		425		—		429		—		913		1,767
Income tax expense	—		—		—		—		—		—		—
Depreciation and amortization	3,049		391		1		279		167		454		4,341
Stock-based compensation(3)	8,518		1,135		61		674		150		2,045		12,583
Acquisition-related costs(4)	—		—		—		—		—		2,107		2,107


Adjusted EBITDA	$	(3,301)	$	(2,344)	$	(175)	$	(3,059)	$	(180)	$	(6,442)	$	(15,501)

(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended March 31, 2021.

(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended March 31, 2021.

(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.