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Redfin Reports Second Quarter 2023 Financial Results

SEATTLE - August 3, 2023 - Redfin Corporation (NASDAQ: RDFN) today announced results for its second quarter ended June 30, 2023.

Second Quarter 2023
Second quarter revenue was $275.6 million, a decrease of 21% compared to the second quarter of 2022. Gross profit was $100.2 million, a decrease of 10% year-over-year. Real estate services gross profit was $56.2 million, a decrease of 24% year-over-year, and real estate services gross margin was 31%, compared to 29% in the second quarter of 2022.

Net loss was $27.4 million, compared to a net loss of $78.1 million in the second quarter of 2022. Net loss attributable to common stock was $27.7 million. Net loss per share attributable to common stock, diluted, was $0.25, compared to net loss per share, diluted, of $0.73 in the second quarter of 2022.

“In a declining market, Redfin improved our second-quarter net income by $50 million,” said Redfin CEO Glenn Kelman. “We expect to break-even on an adjusted-EBITDA basis over the next 12 months rather than in 2023, which is a setback, but still we project that our adjusted EBITDA this year will improve by more than $140 million. We lost market share due to one-time setbacks from agent layoffs and the closure of RedfinNow, but we expect to return to quarter-over-quarter gains in the second half, as Redfin.com has been competing better for traffic. The year-over-year change in visitors to Redfin.com was 17 points better in the second quarter than it was for the two largest portals to for-sale listings, an acceleration from our first-quarter advantage of 12 points. Gross margins in our core real-estate-services business improved by nearly two percentage points. We believe Redfin is set up for profitable growth.”

Second Quarter Highlights
•Second quarter market share was 0.75% of U.S. existing home sales by units, compared to 0.83% in the second quarter of 2022.
•Redfin’s mobile apps and website reached more than 52 million average monthly users, compared to 53 million in the second quarter of 2022.
•Maintained momentum in mortgage cross-selling with 19% attach rates for the second quarter, up from 8% in the second quarter of 2022.
•Brought Title Forward closing services to Florida and made significant progress in cross-selling, with 57% attach rates in the second quarter, up from 29% in the second quarter of 2022.
•Experienced an uptick in high-end demand with over 1,300 $1M+ listings since launching the new Redfin Premier brand in the first quarter. In large coastal markets like San Francisco and Los Angeles, Redfin's year-over-year growth in $1M+ pending transactions began outpacing the broader market in June.
•Began leveraging AI to improve both employee efficiency and the user experience on Redfin.com, including using large language models to assist with internal engineering tasks and to create content at scale for users.
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•Increased the mix of sales to loyalty customers from 35% in the second quarter of 2022 to 37% in the second quarter of 2023, driven by better agent follow-up and pipeline mining efforts.
•Delivered software to improve customer and agent experience while driving customer contacts and boosting traffic to Redfin:
◦Launched a new design system for all property pages on Redfin.com, improving the visual appearance and making it easier for Redfin teams to create beautiful, scalable features in the future. These improvements also drove significant growth in the number of buyers and sellers contacting Redfin for service.
◦Updated SMS surveys for customers who tour with Redfin Partner Agents, making it easier for them to submit feedback about their experience and improving Redfin’s understanding of tour completion rate.
◦Improved prioritization in Redfin’s support queue, helping high-intent customers get personalized help faster and generating a 1% increase in listing customers.
◦Updated rental contact request process that makes it easier for potential renters to browse additional properties and contact multiple properties at once.

Business Outlook
The following forward-looking statements reflect Redfin's expectations as of August 3, 2023, and are subject to substantial uncertainty.

For the third quarter of 2023 we expect:
•Total revenue between $265 million and $279 million, representing a year-over-year decline between (13)% and (9)% compared to the third quarter of 2022. Included within total revenue are real estate services revenue between $172 million and $182 million, rentals revenue between $46 million and $47 million, mortgage revenue between $35 million and $38 million and other revenue of approximately $12 million.
•Total net loss is expected to be between $30 million and $21 million, compared to net loss of $90 million in the third quarter of 2022. This guidance includes approximately $25 million in total marketing expenses, $18 million of stock-based compensation and $17 million of depreciation and amortization. Adjusted EBITDA is expected to be between $4 million and $14 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.

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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, 2022, as supplemented by our quarterly report for the quarter ended June 30, 2023, 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.

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 for the three months ended June 30, 2023 and 2022 is presented below, along with a reconciliation of adjusted EBITDA to net loss.

About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with same day tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can 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. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we've saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 5,000 people.

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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, 2023December 31, 2022
Assets
Current assets
Cash and cash equivalents$118,776 $232,200 
Restricted cash2,377 2,406 
Short-term investments100,643 122,259 
Accounts receivable, net of allowances for credit losses of $2,206 and $2,22367,753 46,375 
Loans held for sale233,550 199,604 
Prepaid expenses26,042 34,006 
Other current assets9,979 7,449 
Current assets of discontinued operations1,378 132,159 
Total current assets560,498 776,458 
Property and equipment, net49,241 54,939 
Right-of-use assets, net37,270 40,889 
Mortgage servicing rights, at fair value35,503 36,261 
Long-term investments5,473 29,480 
Goodwill461,349 461,349 
Intangible assets, net142,778 162,272 
Other assets, noncurrent11,493 11,247 
Noncurrent assets of discontinued operations— 1,309 
Total assets$1,303,605 $1,574,204 
Liabilities, mezzanine equity, and stockholders' equity
Current liabilities
Accounts payable$14,661 $11,065 
Accrued and other liabilities102,568 106,763 
Warehouse credit facilities227,801 190,509 
Convertible senior notes, net23,506 23,431 
Lease liabilities16,234 18,560 
Current liabilities of discontinued operations44 4,311 
Total current liabilities384,814 354,639 
Lease liabilities, noncurrent34,383 36,906 
Convertible senior notes, net, noncurrent834,716 1,078,157 
Deferred tax liabilities255 243 
Noncurrent liabilities of discontinued operations— 392 
Total liabilities1,254,168 1,470,337 
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, 2023 and December 31, 2022, respectively39,936 39,914 
Stockholders’ equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 113,934,673 and 109,696,178 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively114 110 
Additional paid-in capital791,302 757,951 
Accumulated other comprehensive loss(452)(801)
Accumulated deficit(781,463)(693,307)
Total stockholders’ equity9,501 63,953 
Total liabilities, mezzanine equity, and stockholders’ equity$1,303,605 $1,574,204 
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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,
2023202220232022
Revenue275,556 349,049 489,639 571,865 
Cost of revenue(1)
175,366 237,813 331,311 408,980 
Gross profit100,190 111,236 158,328 162,885 
Operating expenses
Technology and development(1)
47,141 46,822 94,804 92,343 
Marketing(1)
33,033 55,922 73,436 98,111 
General and administrative(1)
61,765 68,523 131,204 124,664 
Restructuring and reorganization6,106 12,406 7,159 18,115 
Total operating expenses148,045 183,673 306,603 333,233 
Loss from operations(47,855)(72,437)(148,275)(170,348)
Interest income2,704 554 6,110 774 
Interest expense(1,766)(2,217)(3,688)(4,429)
Income tax expense(233)(159)(643)(293)
Gain on extinguishment of convertible senior notes20,083 — 62,353 — 
Other expense, net(145)(264)(379)(2,175)
Net loss from continuing operations$(27,212)$(74,523)$(84,522)$(176,471)
Net (loss) income from discontinued operations(146)(3,623)(3,634)7,519 
Net loss$(27,358)$(78,146)$(88,156)$(168,952)
Net loss from continuing operations(27,212)(74,523)(84,522)(176,471)
Dividends on convertible preferred stock(297)(350)(523)(1,144)
Net loss from continuing operations attributable to common stock—basic and diluted$(27,509)$(74,873)$(85,045)$(177,615)
Net loss from continuing operations per share attributable to common stock—basic and diluted$(0.25)$(0.70)$(0.77)$(1.66)
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted111,678,417 107,396,575 110,895,358 107,032,381 
Net loss attributable to common stock—basic and diluted$(27,655)$(78,496)$(88,679)$(170,096)
Net loss attributable to common stock per share—basic and diluted$(0.25)$(0.73)$(0.80)$(1.59)
Net loss$(27,358)$(78,146)$(88,156)$(168,952)
Other comprehensive (loss) income
Foreign currency translation adjustments— 34 (58)38 
Unrealized (loss) gain on available-for-sale debt securities(17)217 407 778 
Comprehensive loss$(27,375)$(77,895)(87,807)(168,136)

(1) Includes stock-based compensation as follows:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Cost of revenue$3,001 $3,615 $7,136 $6,605 
Technology and development8,241 6,768 16,368 13,877 
Marketing1,254 894 2,499 1,937 
General and administrative5,025 4,009 10,345 8,118 
Total$17,521 $15,286 $36,348 $30,537 

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Redfin Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Six Months Ended June 30,
20232022
Operating Activities
Net loss
$(88,156)$(168,952)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization34,146 31,140 
Stock-based compensation36,582 33,601 
Amortization of debt discount and issuance costs2,029 2,899 
Non-cash lease expense9,578 7,096 
Impairment costs113 — 
Net (gain) loss on IRLCs, forward sales commitments, and loans held for sale(4,565)2,721 
Change in fair value of mortgage servicing rights, net599 (878)
Gain on extinguishment of convertible senior notes(62,353)— 
Other(1,794)3,170 
Change in assets and liabilities:
Accounts receivable, net(14,069)(6,791)
Inventory114,232 (19,297)
Prepaid expenses and other assets8,868 (2,852)
Accounts payable2,812 5,964 
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent(4,522)5,529 
Lease liabilities(10,790)(8,042)
Origination of mortgage servicing rights(579)(964)
Proceeds from sale of mortgage servicing rights738 774 
Origination of loans held for sale(1,922,690)(1,641,377)
Proceeds from sale of loans originated as held for sale1,888,706 1,587,759 
Net cash used in operating activities(11,115)(168,500)
Investing activities
Purchases of property and equipment(6,213)(12,131)
Purchases of investments(76,866)(82,184)
Sales of investments65,099 12,946 
Maturities of investments59,383 19,425 
Cash paid for acquisition, net of cash, cash equivalents, and restricted cash acquired— (97,341)
Net cash provided by (used in) investing activities41,403 (159,285)
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans5,665 9,258 
Tax payments related to net share settlements on restricted stock units(11,096)(3,743)
Borrowings from warehouse credit facilities1,920,487 1,628,684 
Repayments to warehouse credit facilities(1,883,196)(1,572,033)
Borrowings from secured revolving credit facility— 326,025 
Repayments to secured revolving credit facility— (369,266)
Cash paid for secured revolving credit facility issuance costs— (764)
Principal payments under finance lease obligations(53)(414)
Repurchases of convertible senior notes(183,019)— 
Net cash (used in) provided by financing activities(151,212)17,747 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(58)(42)
Net change in cash, cash equivalents, and restricted cash(120,982)(310,080)
Cash, cash equivalents, and restricted cash:
Beginning of period242,246 718,281 
End of period
$121,264 $408,201 






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Redfin Corporation and Subsidiaries
Supplemental Financial Information and Business Metrics
(unaudited)
Three Months Ended
Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022Mar. 31, 2022Dec. 31, 2021Sep. 30, 2021
Monthly average visitors (in thousands)52,308 50,440 43,847 50,785 52,698 51,287 44,665 49,147 
Real estate services transactions
Brokerage13,716 10,301 12,743 18,245 20,565 15,001 19,428 21,929 
Partner3,952 3,187 2,742 3,507 3,983 3,417 4,603 4,755 
Total17,668 13,488 15,485 21,752 24,548 18,418 24,031 26,684 
Real estate services revenue per transaction
Brokerage$12,376 $11,556 $10,914 $11,103 $11,692 $11,191 $10,900 $11,107 
Partner2,756 2,592 2,611 2,556 2,851 2,814 2,819 2,990 
Aggregate10,224 9,438 9,444 9,725 10,258 9,637 9,352 9,661 
U.S. market share by units(1)
0.75 %0.79 %0.76 %0.80 %0.83 %0.79 %0.78 %0.78 %
Revenue from top-10 Redfin markets as a percentage of real estate services revenue55 %53 %57 %58 %59 %57 %61 %62 %
Average number of lead agents
1,792 1,876 2,022 2,293 2,640 2,750 2,485 2,370 
Mortgage originations by dollars (in millions)$1,282 $991 $1,036 $1,557 $1,565 $159 $242 $258 
Mortgage originations by units (in ones)3,131 2,444 2,631 3,720 3,860 414 591 671 
(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, as of the second quarter of 2022, we report 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. We also stopped reporting the aggregate home value of our real estate services transactions.













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Redfin Corporation and Subsidiaries
Supplemental Financial Information
(unaudited, in thousands)
Three Months Ended June 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Revenue(1)
$180,641 $45,356 $38,426 $11,133 $— $275,556 
Cost of revenue124,447 10,427 34,266 6,226 — 175,366 
Gross profit56,194 34,929 4,160 4,907 — 100,190 
Operating expenses
Technology and development28,044 16,304 734 1,118 941 47,141 
Marketing16,004 15,938 1,054 16 21 33,033 
General and administrative20,961 25,305 6,724 1,044 7,731 61,765 
Restructuring and reorganization— — — — 6,106 6,106 
Total operating expenses65,009 57,547 8,512 2,178 14,799 148,045 
(Loss) income from continuing operations(8,815)(22,618)(4,352)2,729 (14,799)(47,855)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net— 28 (91)153 20,553 20,643 
Net (loss) income from continuing operations$(8,815)$(22,590)$(4,443)$2,882 $5,754 $(27,212)
(1) Included in revenue is $0.1 million from providing services to our discontinued properties segment.

Three Months Ended June 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Net (loss) income from continuing operations$(8,815)$(22,590)$(4,443)$2,882 $5,754 $(27,212)
Interest income(1)
— (77)(3,686)(153)(2,467)(6,383)
Interest expense(2)
— — 3,990 — 1,766 5,756 
Income tax expense— 43 83 — 107 233 
Depreciation and amortization5,264 10,235 994 307 329 17,129 
Stock-based compensation(3)
12,297 3,709 823 561 131 17,521 
Acquisition-related costs(4)
— — — — 8 8 
Restructuring and reorganization(5)
— — — — 6,106 6,106 
Gain on extinguishment of convertible senior notes— — — — (20,083)(20,083)
Adjusted EBITDA$8,746 $(8,680)$(2,239)$3,597 $(8,349)$(6,925)
(1) Interest income includes $3.7 million of interest income related to originated mortgage loans for the three months ended June 30, 2023.
(2) Interest expense includes $4.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2023.
(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, October 2022, and March 2023 workforce reductions.

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Three Months Ended June 30, 2022
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Revenue(1)
$251,809 $38,248 $53,098 $5,894 $— $349,049 
Cost of revenue177,698 7,901 46,316 5,898 — 237,813 
Gross profit74,111 30,347 6,782 (4)— 111,236 
Operating expenses
Technology and development27,696 14,871 1,904 1,189 1,162 46,822 
Marketing40,765 13,086 1,843 71 157 55,922 
General and administrative24,341 21,824 9,450 850 12,058 68,523 
Restructuring and reorganization— — — — 12,406 12,406 
Total operating expenses92,802 49,781 13,197 2,110 25,783 183,673 
Loss from continuing operations(18,691)(19,434)(6,415)(2,114)(25,783)(72,437)
Interest income, interest expense, income tax expense, and other expense, net(123)232 (35)11 (2,171)(2,086)
Net loss from continuing operations$(18,814)$(19,202)$(6,450)$(2,103)$(27,954)$(74,523)
(1) Included in revenue is $4.7 million from providing services to our discontinued properties segment.

Three Months Ended June 30, 2022
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Net loss from continuing operations$(18,814)$(19,202)$(6,450)$(2,103)$(27,954)$(74,523)
Interest income(1)
— (1)(2,929)(12)(540)(3,482)
Interest expense(2)
— — 1,958 — 2,214 4,172 
Income tax expense— (230)33 — 356 159 
Depreciation and amortization4,551 9,511 1,070 318 272 15,722 
Stock-based compensation(3)
9,670 2,739 780 441 1,656 15,286 
Acquisition-related costs(4)
— — — — 1,507 1,507 
Restructuring and reorganization(5)
— — — — 12,406 12,406 
Adjusted EBITDA$(4,593)$(7,183)$(5,538)$(1,356)$(10,083)$(28,753)
(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 and October 2022 workforce reductions.
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Six Months Ended June 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Revenue(1)
$307,937 $88,226 $74,915 $18,561 $— $489,639 
Cost of revenue235,941 20,192 63,479 11,699 — 331,311 
Gross profit71,996 68,034 11,436 6,862 — 158,328 
Operating expenses
Technology and development56,939 32,268 1,377 2,342 1,878 94,804 
Marketing41,064 30,264 2,034 26 48 73,436 
General and administrative40,579 51,607 13,653 2,097 23,268 131,204 
Restructuring and reorganization— — — — 7,159 7,159 
Total operating expenses138,582 114,139 17,064 4,465 32,353 306,603 
(Loss) income from continuing operations(66,586)(46,105)(5,628)2,397 (32,353)(148,275)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net— 73 (151)268 63,563 63,753 
Net (loss) income from continuing operations$(66,586)$(46,032)$(5,779)$2,665 $31,210 $(84,522)
(1) Included in revenue is $1.2 million from providing services to our discontinued properties segment.

Six Months Ended June 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Net (loss) income from continuing operations$(66,586)$(46,032)$(5,779)$2,665 $31,210 $(84,522)
Interest income(1)
— (157)(6,176)(268)(5,668)(12,269)
Interest expense(2)
— — 6,605 — 3,687 10,292 
Income tax expense— 86 151 — 406 643 
Depreciation and amortization9,696 20,387 1,982 523 1,432 34,020 
Stock-based compensation(3)
21,890 7,325 2,081 1,122 3,930 36,348 
Acquisition-related costs(4)
— — — — 8 8 
Restructuring and reorganization(5)
— — — — 7,159 7,159 
Impairment(6)
— — — — 113 113 
Gain on extinguishment of convertible senior notes— — — — (62,353)(62,353)
Adjusted EBITDA$(35,000)$(18,391)$(1,136)$4,042 $(20,076)$(70,561)
(1) Interest income includes $6.2 million of interest income related to originated mortgage loans for the six months ended June 30, 2023.
(2) Interest expense includes $6.6 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2023.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 11 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, October 2022, and March 2023 workforce reductions.
(6) Impairment consists of an impairment loss due to subleasing one of our operating leases.

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Six Months Ended June 30, 2022
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Revenue(1)
$429,295 $76,292 $56,015 $10,263 $— $571,865 
Cost of revenue331,482 15,094 51,834 10,570 — 408,980 
Gross profit97,813 61,198 4,181 (307)— 162,885 
Operating expenses
Technology and development54,435 29,154 4,251 2,225 2,278 92,343 
Marketing71,608 24,128 1,871 125 379 98,111 
General and administrative47,333 46,015 10,974 1,562 18,780 124,664 
Restructuring and reorganization— — — — 18,115 18,115 
Total operating expenses173,376 99,297 17,096 3,912 39,552 333,233 
Loss from operations(75,563)(38,099)(12,915)(4,219)(39,552)(170,348)
Interest income, interest expense, income tax expense, and other expense, net(123)701 (35)12 (6,678)(6,123)
Net loss from continuing operations$(75,686)$(37,398)$(12,950)$(4,207)$(46,230)$(176,471)
(1) Included in revenue is $10.0 million from providing services to our discontinued properties segment.

Six Months Ended June 30, 2022
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Net loss from continuing operations$(75,686)$(37,398)$(12,950)$(4,207)$(46,230)$(176,471)
Interest income(1)
— (1)(3,247)(13)(759)(4,020)
Interest expense(2)
— — 2,235 — 4,427 6,662 
Income tax expense— (434)33 — 694 293 
Depreciation and amortization8,569 18,867 1,372 573 618 29,999 
Stock-based compensation(3)
19,810 4,979 1,381 810 3,557 30,537 
Acquisition-related costs(4)
— — — — 2,424 2,424 
Restructuring and reorganization(5)
— — — — 18,115 18,115 
Adjusted EBITDA$(47,307)$(13,987)$(11,176)$(2,837)$(17,154)$(92,461)
(1) Interest income includes $3.2 million of interest income related to originated mortgage loans for the six months ended June 30, 2023.
(2) Interest expense includes $2.2 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2023.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 11 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, October 2022, and March 2023 workforce reductions.
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Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance
(unaudited, in millions)

Q3 2023
LowHigh
Net loss(30)(21)
Depreciation and amortization17 17 
Stock-based compensation18 18 
Adjusted EBITDA4 14 
Note: Figures may not sum due to rounding.
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