Redfin Reports Second Quarter 2022 Financial Results

SEATTLE - August 4, 2022 - Redfin Corporation (NASDAQ: RDFN) today announced results for its second quarter ended June 30, 2022.

Second Quarter 2022

Second quarter revenue was $606.9 million, an increase of 29% compared to the second quarter of 2021. Gross profit was $118.0 million, a decrease of 6% year-over-year. Real estate services gross profit was $74.1 million, a decrease of 16% year-over-year, and real estate services gross margin was 29%, compared to 35% in the second quarter of 2021.

Net loss was $78.1 million, compared to a net loss of $27.9 million in the second quarter of 2021. Net loss attributable to common stock was $78.5 million. Net loss per share attributable to common stock, diluted, was $0.73, compared to net loss per share, diluted, of $0.29 in the second quarter of 2021.

Adjusted EBITDA loss was $28.6 million, compared to adjusted EBITDA income of $2.8 million in the second quarter of 2021.

“The housing market took a turn for the worse in the second quarter,” said Redfin CEO Glenn Kelman. “But I have never been more proud of how this company has responded: we cut costs, grew traffic, accelerated share gains and loyalty sales, lowered voluntary attrition and, for the first time since April 2020, improved the rate at which people buying homes stuck with a Redfin agent. Our rentals business recorded its first quarter-over-quarter revenue gain since 2017, and re-launched itself across every platform as Rent. Best of all, the rate at which Redfin homebuyers got a Redfin mortgage hit 15% in July, a near doubling of the all-time high before 2022. For the quarter, title attach rates more than doubled year over year. There will be more market ups and downs in the road ahead, but our whole engine to drive traffic, brokerage share, customer value and monetization is running more efficiently than ever.”

Second Quarter Highlights

•Reached market share of 0.82% of U.S. existing home sales by units in the second quarter of 2022, an increase of 5 basis points from the second quarter of 2021.(1)

•Redfin’s mobile apps and website reached nearly 53 million average monthly users in the second quarter, an increase of 9% compared to the second quarter of 2021.

•Expanded listing coverage from 91% to 94% of the U.S. population, adding 52 new MLSs.

•Made significant progress with the integration of Bay Equity, ending the second quarter with attach rates of 11% for the month of June, up from an attach rate of 6% in March.

•Improved customer retention, with loyalty mix at 35% in the second quarter, up from 33% in the prior year.

•Relaunched our rentals business under a new brand, Rent., with a newly redesigned consumer app experience, and updated solutions website.

•Delivered improved software for customers, agents, partners and renovations staff including:

◦Added internet provider and speed data to U.S. home listings, making our most-requested feature available to potential homebuyers.

◦Released Mobile Agent Tools in the Apple App Store, making it easier for agents to have the latest and greatest version of our software while on the go.

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Business Outlook

The following forward-looking statements reflect Redfin's expectations as of August 4, 2022, and are subject to substantial uncertainty.

For the third quarter of 2022 we expect:

•Total revenue between $590 million and $627 million, representing a year-over-year growth between 9% and 16% compared to the third quarter of 2021. Included within total revenue are real estate services segment revenue between $200 million and $208 million, properties segment revenue between $305 million and $330 million, rentals revenue between $37 million and $38 million and mortgage revenue between $45 million and $48 million.

•Total net loss is expected to be between $87 million and $79 million, compared to net loss of $19 million in the third quarter of 2021. This guidance includes approximately $37 million in total marketing expenses, $19 million of stock-based compensation, $16 million of depreciation and amortization, and $5 million of net interest expense. Adjusted EBITDA loss is expected to be between $47 million and $39 million. Furthermore, we expect to pay a quarterly dividend of 30,640 shares of common stock to our preferred stockholder.

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.

(1) Prior to the second quarter of 2022, we reported our U.S. market share based on the aggregate home value of our real estate services transactions, relative to the aggregate value of all U.S. home sales, which we computed based on the mean sale price of U.S. homes provided by the National Association of REALTORS® (“NAR”). Beginning in the second quarter of 2022, NAR (1) revised its methodology of computing the mean sale price, (2) restated its previously reported mean sale price beginning from January 2020 (and indicated that previously reported mean sale price prior to January 2020 is not comparable), and (3) discontinued publication of the mean sale price as part of its primary data set. Due to these changes, we are now reporting our U.S. market share based on the number of homes sold, rather than the dollar value of homes sold. Our market share by number of homes sold has historically been lower than our market share by dollar value of homes sold.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, including 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 for the year ended December 31, 2021, as supplemented by our quarterly report for the quarter ended June 30, 2022, both of which are 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.

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Non-GAAP Financial Measure

To supplement our consolidated financial statements that are prepared and presented in accordance with GAAP, we also compute and present adjusted EBITDA, which is a non-GAAP financial measure. We believe adjusted EBITDA is useful for investors because it enhances period-to-period comparability of our financial statements on a consistent basis and provides investors with useful insight into the underlying trends of the business. The presentation of this financial measure is not intended to be considered in isolation or as a substitute of, or superior to, our financial information prepared and presented in accordance with GAAP. Our calculation of adjusted EBITDA may be different from adjusted EBITDA or similar non-GAAP financial measures used by other companies, limiting its usefulness for comparison purposes. Our adjusted EBITDA, on a consolidated basis and for each reportable segment, for the three months ended June 30, 2022 and 2021 is presented below, along with a reconciliation of adjusted EBITDA to net loss. The reconciliation of adjusted EBITDA to net loss for the three months ended September 30, 2022 is also below.

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.

Redfin-F

Contacts

Investor Relations

Meg Nunnally, 206-576-8610

ir@redfin.com

Public Relations

Mariam Sughayer, 206-876-1322

press@redfin.com

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Redfin Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share and per share amounts, unaudited)

			June 30, 2022						December 31, 2021
Assets
Current assets
Cash and cash equivalents			$	379,922					$	591,003
Restricted cash			28,279						127,278
Short-term investments			82,506						33,737
Accounts receivable, net of allowances for credit losses of $1,655 and $1,298			86,082						69,594
Inventory			377,518						358,221
Loans held for sale			306,364						35,759
Prepaid expenses			30,775						22,948
Other current assets			18,378						7,524
Total current assets			1,309,824						1,246,064
Property and equipment, net			59,709						58,671
Right-of-use assets, net			54,321						54,200
Mortgage servicing rights, at fair value			35,050						—
Long-term investments			52,989						54,828
Goodwill			461,349						409,382
Intangible assets, net			181,766						185,929
Other assets, noncurrent			12,720						12,898
Total assets			$	2,167,728					$	2,021,972
Liabilities, mezzanine equity, and stockholders' equity
Current liabilities
Accounts payable			$	20,237					$	12,546
Accrued and other liabilities			161,803						118,122
Warehouse credit facilities			298,303						33,043
Secured revolving credit facility			156,540						199,781
Convertible senior notes, net			—						23,280
Lease liabilities			18,180						15,040
Total current liabilities			655,063						401,812
Lease liabilities, noncurrent			50,920						55,222
Convertible senior notes, net, noncurrent			1,239,873						1,214,017
Deferred tax liabilities			728						1,201
Total liabilities			1,946,584						1,672,252
Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively			39,891						39,868
Stockholders’ equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 108,415,939 and 106,308,767 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively			108						106
Additional paid-in capital			723,251						682,084
Accumulated other comprehensive loss			(990)						(174)
Accumulated deficit			(541,116)						(372,164)
Total stockholders’ equity			181,253						309,852
Total liabilities, mezzanine equity, and stockholders’ equity			$	2,167,728					$	2,021,972

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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,
			2022						2021						2022						2021
Revenue
Service			$	344,309					$	298,870					$	561,902					$	474,463
Product			262,606						172,445						642,359						265,171
Total revenue			606,915						471,315						1,204,261						739,634
Cost of revenue(1)
Service			232,886						177,762						398,695						312,613
Product			256,026						167,417						615,026						258,527
Total cost of revenue			488,912						345,179						1,013,721						571,140
Gross profit			118,003						126,136						190,540						168,494
Operating expenses
Technology and development(1)			51,506						41,488						101,146						69,166
Marketing(1)			56,743						55,398						100,085						67,200
General and administrative(1)			71,733						59,567						130,699						96,957
Restructuring and reorganization			12,677						—						18,386						—
Total operating expenses			192,659						156,453						350,316						233,323
Loss from operations			(74,656)						(30,317)						(159,776)						(64,829)
Interest income			554						135						774						293
Interest expense			(3,620)						(2,813)						(7,481)						(4,151)
Income tax (expense) benefit			(159)						5,052						(293)						5,052
Other (expense) income, net			(265)						65						(2,176)						(27)
Net loss			$	(78,146)					$	(27,878)					$	(168,952)					$	(63,662)
Dividends on convertible preferred stock			(350)						(1,878)						(1,144)						(4,214)
Net loss attributable to common stock—basic and diluted			$	(78,496)					$	(29,756)					$	(170,096)					$	(67,876)
Net loss per share attributable to common stock—basic and diluted			$	(0.73)					$	(0.29)					$	(1.59)					$	(0.65)
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted			107,396,575						104,391,337						107,032,381						103,912,212
Net loss			$	(78,146)					$	(27,878)					$	(168,952)					$	(63,662)
Other comprehensive income
Foreign currency translation adjustments			34						—						38						—
Unrealized gain on available-for-sale debt securities			217						84						778						134
Comprehensive loss			$	(77,895)					$	(27,794)					$	(168,136)					$	(63,528)

(1) Includes stock-based compensation as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
			2022						2021						2022						2021
Cost of revenue			$	3,879					$	3,758					$	7,257					$	6,736
Technology and development			7,700						5,771						15,665						11,532
Marketing			924						535						1,996						1,078
General and administrative			4,310						3,679						8,683						6,981
Total			$	16,813					$	13,743					$	33,601					$	26,327

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Redfin Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands, unaudited)

			Six Months Ended June 30,
			2022						2021
Operating Activities
Net loss			$	(168,952)					$	(63,662)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization			31,140						18,018
Stock-based compensation			33,601						26,327
Amortization of debt discount and issuance costs			2,899						2,203
Non-cash lease expense			7,096						5,448
Net loss on IRLCs, forward sales commitments, and loans held for sale			2,721						238
Other			3,170						169
Change in assets and liabilities:
Accounts receivable, net			(6,791)						(22,312)
Inventory			(19,297)						(199,845)
Prepaid expenses and other assets			(2,852)						(7,137)
Accounts payable			5,964						15,766
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent			5,529						26,915
Lease liabilities			(8,042)						(6,144)
Change in fair value of mortgage servicing rights, net			(878)						—
Origination of mortgage servicing rights			(964)						—
Proceeds from sale of mortgage servicing rights			774						—
Origination of loans held for sale			(1,641,377)						(488,274)
Proceeds from sale of loans originated as held for sale			1,587,759						478,652
Net cash used in operating activities			(168,500)						(213,638)
Investing activities
Purchases of property and equipment			(12,131)						(13,580)
Purchases of investments			(82,184)						(104,877)
Sales of investments			12,946						89,536
Maturities of investments			19,425						92,843
Cash paid for acquisition, net of cash acquired			(97,341)						(608,000)
Net cash used in investing activities			(159,285)						(544,078)
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans			9,258						12,496
Tax payments related to net share settlements on restricted stock units			(3,743)						(16,530)
Borrowings from warehouse credit facilities			1,628,684						464,250
Repayments to warehouse credit facilities			(1,572,033)						(456,854)
Borrowings from secured revolving credit facility			326,025						230,608
Repayments to secured revolving credit facility			(369,266)						(130,788)
Proceeds from issuance of convertible senior notes, net of issuance costs			—						561,529
Purchases of capped calls related to convertible senior notes			—						(62,647)
Payments for repurchases and conversions of convertible senior notes			—						(1,925)
Other financing payables			—						97
Principal payments under finance lease obligations			(414)						(353)
Cash paid for secured revolving credit facility issuance costs			(764)						(305)
Net cash provided by financing activities			17,747						599,578
Effect of exchange rate changes on cash, cash equivalents, and restricted cash			(42)						—
Net change in cash, cash equivalents, and restricted cash			(310,080)						(158,138)
Cash, cash equivalents, and restricted cash:
Beginning of period			718,281						945,820
End of period			$	408,201					$	787,682

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Redfin Corporation and Subsidiaries

Supplemental Financial Information and Business Metrics

(unaudited)

			Three Months Ended
			Jun. 30, 2022						Mar. 31, 2022						Dec. 31, 2021						Sep. 30, 2021						Jun. 30, 2021						Mar. 31, 2021						Dec. 31, 2020						Sep. 30 2020						Jun. 30, 2020
Monthly average visitors (in thousands)			52,698						51,287						44,665						49,147						48,437						46,202						44,135						49,258						42,537
Real estate services transactions
Brokerage			20,565						15,001						19,428						21,929						21,006						14,317						16,951						18,980						13,828
Partner			3,983						3,417						4,603						4,755						4,597						3,944						4,940						5,180						2,691
Total			24,548						18,418						24,031						26,684						25,603						18,261						21,891						24,160						16,519
Real estate services revenue per transaction
Brokerage			$	11,692					$	11,191					$	10,900					$	11,107					$	11,307					$	10,927					$	10,751					$	10,241					$	9,296
Partner			2,851						2,814						2,819						2,990						3,195						3,084						3,123						2,988						2,417
Aggregate			10,258						9,637						9,352						9,661						9,850						9,233						9,030						8,686						8,175
U.S. market share by units(1)			0.82		%				0.79		%				0.78		%				0.78		%				0.77		%				0.75		%				0.68		%				0.70		%				0.66		%
Revenue from top-10 Redfin markets as a percentage of real estate services revenue			59		%				57		%				61		%				62		%				64		%				62		%				63		%				63		%				63		%
Average number of lead agents			2,640						2,750						2,485						2,370						2,456						2,277						1,981						1,820						1,399
RedfinNow homes sold			423						617						600						388						292						171						83						37						162
Revenue per RedfinNow home sold (in ones)			$	604,120					$	608,851					$	622,519					$	599,963					$	571,670					$	525,765					$	471,895					$	504,730					$	444,757
Mortgage originations by dollars (in millions)			$	1,565					$	159					$	242					$	258					$	261					$	227					$	206					$	185					$	161
Mortgage originations by units (in ones)			3,860						414						591						671						749						632						570						539						475

(1) Prior to the second quarter of 2022, we reported our U.S. market share based on the aggregate home value of our real estate services transactions, relative to the aggregate value of all U.S. home sales, which we computed based on the mean sale price of U.S. homes provided by the National Association of REALTORS® (“NAR”). Beginning in the second quarter of 2022, NAR (1) revised its methodology of computing the mean sale price, (2) restated its previously reported mean sale price beginning from January 2020 (and indicated that previously reported mean sale price prior to January 2020 is not comparable), and (3) discontinued publication of the mean sale price as part of its primary data set. Due to these changes, we are now reporting our U.S. market share based on the number of homes sold, rather than the dollar value of homes sold. Our market share by number of homes sold has historically been lower than our market share by dollar value of homes sold.

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Supplemental Financial Information

Segment Reporting and Reconciliation of Adjusted EBITDA to Net Income (Loss)

(unaudited, in thousands)

			Three Months Ended June 30, 2022
			Real estate services						Properties						Rentals						Mortgage						Other						Corporate Overhead and Intercompany Eliminations						Total
Revenue			$	251,809					$	262,606					$	38,248					$	53,098					$	5,894					$	(4,740)					$	606,915
Cost of revenue			177,698						255,839						7,901						46,316						5,898						(4,740)						488,912
Gross profit			74,111						6,767						30,347						6,782						(4)						—						118,003
Operating expenses
Technology and development			27,696						4,684						14,871						1,904						1,189						1,162						51,506
Marketing			40,765						821						13,086						1,843						71						157						56,743
General and administrative			24,341						3,210						21,824						9,450						850						12,058						71,733
Restructuring and reorganization			—						—						—						—						—						12,677						12,677
Total operating expenses			92,802						8,715						49,781						13,197						2,110						26,054						192,659
Loss from operations			(18,691)						(1,948)						(19,434)						(6,415)						(2,114)						(26,054)						(74,656)
Interest income, interest expense, income tax expense, and other expense, net			(123)						(1,245)						232						(35)						11						(2,330)						(3,490)
Net loss			$	(18,814)					$	(3,193)					$	(19,202)					$	(6,450)					$	(2,103)					$	(28,384)					$	(78,146)

			Three Months Ended June 30, 2022
			Real estate services						Properties						Rentals						Mortgage						Other						Corporate Overhead and Intercompany Eliminations						Total
Net loss			$	(18,814)					$	(3,193)					$	(19,202)					$	(6,450)					$	(2,103)					$	(28,384)					$	(78,146)
Interest income(1)			—						(159)						(1)						(2,929)						(12)						(381)						(3,482)
Interest expense(2)			—						1,403						—						1,958						—						2,214						5,575
Income tax expense			—						—						(230)						33						—						356						159
Depreciation and amortization			4,551						603						9,511						1,070						318						274						16,327
Stock-based compensation(3)			9,670						1,527						2,739						780						441						1,656						16,813
Acquisition-related costs(4)			—						—						—						—						—						1,507						1,507
Restructuring and reorganization(5)			—						—						—						—						—						12,677						12,677
Adjusted EBITDA			$	(4,593)					$	181					$	(7,183)					$	(5,538)					$	(1,356)					$	(10,081)					$	(28,570)

(1) Interest income includes $2.9 million of interest income related to originated mortgage loans for the three months ended June 30, 2022.

(2) Interest expense includes $2.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2022.

(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 12 to our consolidated financial statements for more information.

(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 due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022 workforce reduction.

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			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
Restructuring and reorganization(5)			—						—						—						—						—						—						—
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. See Note 12 to our consolidated financial statements for more information.

(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 due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022 workforce reduction.

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			Six Months Ended June 30, 2022
			Real estate services						Properties						Rentals						Mortgage						Other						Corporate Overhead and Intercompany Eliminations						Total
Revenue			$	429,295					$	642,359					$	76,292					$	56,015					$	10,263					$	(9,963)					$	1,204,261
Cost of revenue			331,482						614,704						15,094						51,834						10,570						(9,963)						1,013,721
Gross profit			97,813						27,655						61,198						4,181						(307)						—						190,540
Operating expenses
Technology and development			54,435						8,803						29,154						4,251						2,225						2,278						101,146
Marketing			71,608						1,974						24,128						1,871						125						379						100,085
General and administrative			47,333						6,035						46,015						10,974						1,562						18,780						130,699
Restructuring and reorganization			—						—						—						—						—						18,386						18,386
Total operating expenses			173,376						16,812						99,297						17,096						3,912						39,823						350,316
Loss from operations			(75,563)						10,843						(38,099)						(12,915)						(4,219)						(39,823)						(159,776)
Interest income, interest expense, income tax expense, and other expense, net			(123)						(2,869)						701						(35)						12						(6,862)						(9,176)
Net (loss) income			$	(75,686)					$	7,974					$	(37,398)					$	(12,950)					$	(4,207)					$	(46,685)					$	(168,952)

			Six Months Ended June 30, 2022
			Real estate services						Properties						Rentals						Mortgage						Other						Corporate Overhead and Intercompany Eliminations						Total
Net (loss) income			$	(75,686)					$	7,974					$	(37,398)					$	(12,950)					$	(4,207)					$	(46,685)					$	(168,952)
Interest income(1)			—						(184)						(1)						(3,247)						(13)						(575)						(4,020)
Interest expense(2)			—						3,052						—						2,235						—						4,427						9,714
Income tax expense			—						—						(434)						33						—						694						293
Depreciation and amortization			8,569						1,141						18,867						1,372						573						618						31,140
Stock-based compensation(3)			19,810						3,064						4,979						1,381						810						3,557						33,601
Acquisition-related costs(4)			—						—						—						—						—						2,424						2,424
Restructuring and reorganization(5)			—						—						—						—						—						18,386						18,386
Adjusted EBITDA			$	(47,307)					$	15,047					$	(13,987)					$	(11,176)					$	(2,837)					$	(17,154)					$	(77,414)

(1) Interest income includes $3.2 million of interest income related to originated mortgage loans for the six months ended June 30, 2022.

(2) Interest expense includes $2.2 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2022.

(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 12 to our consolidated financial statements for more information.

(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 due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022 workforce reduction.

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			Six Months Ended June 30, 2021
			Real estate services						Properties						Rentals						Mortgage						Other						Corporate Overhead and Intercompany Eliminations						Total
Revenue			$	420,808					$	265,171					$	42,548					$	10,810					$	7,068					$	(6,771)					$	739,634
Cost of revenue			292,342						258,551						7,570						12,701						6,747						(6,771)						571,140
Gross profit			128,466						6,620						34,978						(1,891)						321						—						168,494
Operating expenses
Technology and development			40,130						5,910						13,767						4,904						952						3,503						69,166
Marketing			52,928						779						12,611						264						63						555						67,200
General and administrative			42,429						4,507						23,149						3,352						933						22,587						96,957
Total operating expenses			135,487						11,196						49,527						8,520						1,948						26,645						233,323
Loss from operations			(7,021)						(4,576)						(14,549)						(10,411)						(1,627)						(26,645)						(64,829)
Interest income, interest expense, income tax expense, and other expense, net			(31)						(1,082)						212						2						1						2,065						1,167
Net loss			$	(7,052)					$	(5,658)					$	(14,337)					$	(10,409)					$	(1,626)					$	(24,580)					$	(63,662)

			Six Months Ended June 30, 2021
			Real estate services						Properties						Rentals						Mortgage						Other						Corporate Overhead and Intercompany Eliminations						Total
Net loss			$	(7,052)					$	(5,658)					$	(14,337)					$	(10,409)					$	(1,626)					$	(24,580)					$	(63,662)
Interest income(1)			—						(7)						—						(771)						(1)						(284)						(1,063)
Interest expense(2)			—						1,089						—						835						—						3,063						4,987
Income tax expense			—						—						(212)						—						—						(4,840)						(5,052)
Depreciation and amortization			6,230						803						9,111						591						334						949						18,018
Stock-based compensation(3)			17,560						2,373						174						1,444						341						4,435						26,327
Acquisition-related costs(4)			—						—						—						—						—						7,723						7,723
Restructuring and reorganization(5)			—						—						—						—						—						—						—
Adjusted EBITDA			$	16,738					$	(1,400)					$	(5,264)					$	(8,310)					$	(952)					$	(13,534)					$	(12,722)

(1) Interest income includes $0.8 million of interest income related to originated mortgage loans for the six months ended June 30, 2021.

(2) Interest expense includes $0.8 million of interest expense related to our warehouse credit facilities for the six 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. See Note 12 to our consolidated financial statements for more information.

(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 due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022 workforce reduction.

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Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance

(unaudited, in millions)

			Three Months Ended September 30, 2022
			Low						High
Net loss			$	(87)					$	(79)
Net interest expense			5						5
Income tax expense			—						—
Depreciation and amortization			16						16
Stock-based compensation			19						19
Acquisition-related costs			—						—
Restructuring and reorganization			—						—
Adjusted EBITDA			$	(47)					$	(39)

Note: Figures may not sum due to rounding.

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