Redfin Reports Fourth Quarter and Full Year 2023 Financial Results

SEATTLE - February 27, 2024 - Redfin Corporation (NASDAQ: RDFN) today announced results for its fourth quarter and full year ended December 31, 2023.

Fourth Quarter 2023

Fourth quarter revenue was $218.1 million, a decrease of 2% compared to the fourth quarter of 2022. Gross profit was $73.2 million, an increase of 32% year-over-year. Real estate services gross profit was $29.9 million, an increase of 14% year-over-year, and real estate services gross margin was 22.5%, compared to 18.0% in the fourth quarter of 2022.

Net loss was $22.9 million, compared to a net loss of $61.9 million in the fourth quarter of 2022. Net loss attributable to common stock was $23.1 million. Net loss per share attributable to common stock, diluted, was $0.20, compared to net loss per share, diluted, of $0.57 in the fourth quarter of 2022.

Adjusted EBITDA loss was $13.5 million, compared to adjusted EBITDA loss of $40.2 million in the fourth quarter of 2022.

Full Year 2023

Full year revenue from continuing operations was $976.7 million, a decrease of 11% year-over-year. Gross profit from continuing operations was $329.8 million, an increase of 7% year-over-year. Real estate services gross profit was $156.0 million, a decrease of 13% year-over-year, and real estate services gross margin was 25.2%, compared to 22.7% in 2022.

Total net loss was $130.0 million, compared to a net loss of $321.1 million in 2022. Total net loss attributable to common stock was $131.1 million. Net loss per share attributable to common stock, diluted, was $1.16, compared to a net loss per share, diluted, of $2.99 in 2022.

Adjusted EBITDA loss was $76.4 million, compared to adjusted EBITDA loss of $145.1 million in 2022.

“In a dreadful housing market, Redfin got more efficient in the fourth quarter, again improving gross margins and operating margins, even as we laid the foundation for meaningful long-term growth,” said Redfin CEO Glenn Kelman. “Our site continued to draw visitors from rivals. And new sales initiatives are driving breakthroughs on fronts where Redfin has been stymied for years. First, our all-variable pay plan is delivering significant revenue growth in major California cities. Second, a commission refund to customers who hire a Redfin agent after the first tour seems likely to increase home-buyer close-rates in its first four pilot markets. We expect these projects to pay off throughout 2024 and 2025.”

Fourth Quarter and Full Year Highlights

•#1 brokerage website for 2023, with 5x the traffic of our next closest brokerage competitor. Redfin’s mobile apps and website reached approximately 49 million average monthly users in 2023, which was roughly flat compared to 2022.

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•Our agents and partners helped approximately 62,000 customers buy or sell a home in 2023 and Redfin’s market share was 0.76% of U.S. existing home sales, a change of -4 bps compared to 2022.

•Achieved mortgage attach rate (excluding cash transactions) of 25% in the fourth quarter, compared to 21% in the fourth quarter of 2022.1

•Increased the mix of sales to loyalty customers to 36% in the fourth quarter of 2023, compared to 32% in the fourth quarter of 2022. For the year, a record 36% of sales came from loyalty customers.

•Expanded Redfin Next agent pay plan to San Diego and Orange County following strong recruiting interest in Los Angeles and San Francisco. To date, Redfin has signed more than 60 top producing agents to join the brokerage under the Redfin Next program.

•Launched “Sign & Save” program for buyers who hire Redfin after their first tour, saving them thousands of dollars at closing. The program, which expanded to qualifying markets nationwide on February 1st, is expected to help Redfin agents win more business and close more sales.

•Expanded listing coverage to a total of 99% of the U.S. population by adding 138 new MLSs and thousands of new construction listings.

•Launched Redfin Redesign, which allows home searchers to change the appearance of Redfin and Bright MLS listing photos and envision the potential in for-sale homes.

(1) Attach rate reflects total closed loans for Redfin buy-side customers divided by Redfin buy-side transactions with a mortgage (excluding cash transactions) for the period. We previously reported only the inclusive attach rate (includes cash transactions in the denominator), which was 19% in the fourth quarter, compared to 17% in Q4 2022.

Business Outlook

The following forward-looking statements reflect Redfin's expectations as of February 27, 2024, and are subject to substantial uncertainty.

For the first quarter of 2024 we expect:

•Total revenue between $214 million and $223 million, representing a year-over-year change between 0% and 4% compared to the first quarter of 2023. Included within total revenue are real estate services revenue between $126 million and $131 million, rentals revenue between $49 million and $50 million, mortgage revenue between $29 million and $32 million, and other revenue between $9 million and $10 million.

•Total net loss is expected to be between $72 million and $65 million. This guidance includes approximately $25 million in total marketing expenses, $18 million in stock-based compensation, $14 million in depreciation and amortization, and $3 million in net interest expense. Adjusted EBITDA loss is expected to be between $36 million and $29 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.

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

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Factors" in our annual report for the year ended December 31, 2023, 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.

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 run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. 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 have our renovations crew fix it up 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 $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com.

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)

			December 31,
			2023						2022
Assets
Current assets
Cash and cash equivalents			$	149,759					$	232,200
Restricted cash			1,241						2,406
Short-term investments			41,952						122,259
Accounts receivable, net of allowances for credit losses of $3,234 and $2,223			51,738						46,375
Loans held for sale			159,587						199,604
Prepaid expenses			33,296						34,006
Other current assets			7,472						7,449
Current assets of discontinued operations			—						132,159
Total current assets			445,045						776,458
Property and equipment, net			46,431						54,939
Right-of-use assets, net			31,763						40,889
Mortgage servicing rights, at fair value			32,171						36,261
Long-term investments			3,149						29,480
Goodwill			461,349						461,349
Intangible assets, net			123,284						162,272
Other assets, noncurrent			10,456						11,247
Noncurrent assets of discontinued operations			—						1,309
Total assets			$	1,153,648					$	1,574,204
Liabilities, mezzanine equity, and stockholders' equity
Current liabilities
Accounts payable			$	10,507					$	11,065
Accrued and other liabilities			90,360						106,763
Warehouse credit facilities			151,964						190,509
Convertible senior notes, net			—						23,431
Lease liabilities			15,609						18,560
Current liabilities of discontinued operations			—						4,311
Total current liabilities			268,440						354,639
Lease liabilities, noncurrent			29,084						36,906
Convertible senior notes, net, noncurrent			688,737						1,078,157
Term loan			124,416						—
Deferred tax liabilities			264						243
Noncurrent liabilities of discontinued operations			—						392
Total liabilities			1,110,941						1,470,337
Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 and 40,000 shares issued and outstanding at December 31, 2023 and 2022, respectively			39,959						39,914
Stockholders’ equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 117,372,171 and 109,696,178 shares issued and outstanding at December 31, 2023 and 2022, respectively			117						110
Additional paid-in capital			826,146						757,951
Accumulated other comprehensive loss			(182)						(801)
Accumulated deficit			(823,333)						(693,307)
Total stockholders’ equity			2,748						63,953
Total liabilities, mezzanine equity, and stockholders’ equity			$	1,153,648					$	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 December 31,												Year Ended December 31,
			2023						2022						2023						2022
Revenue			218,077						221,935						976,672						1,099,574
Cost of revenue(1)			144,926						166,368						646,853						790,455
Gross profit			73,151						55,567						329,819						309,119
Operating expenses
Technology and development(1)			44,098						43,247						183,294						178,924
Marketing(1)			20,332						23,956						117,863						155,309
General and administrative(1)			52,206						60,751						238,790						243,390
Restructuring and reorganization			768						13,954						7,927						32,353
Total operating expenses			117,404						141,908						547,874						609,976
Loss from continuing operations			(44,253)						(86,341)						(218,055)						(300,857)
Interest income			2,362						4,691						10,532						6,639
Interest expense			(4,233)						(2,238)						(9,524)						(8,886)
Income tax (expense) benefit			(97)						309						(979)						(116)
Gain on extinguishment of convertible senior notes			25,171						57,193						94,019						57,193
Other expense, net			(1,848)						(693)						(2,385)						(3,770)
Net loss from continuing operations			(22,898)						(27,079)						(126,392)						(249,797)
Net loss from discontinued operations			—						(34,867)						(3,634)						(71,346)
Net loss			$	(22,898)					$	(61,946)					$	(130,026)					$	(321,143)
Dividends on convertible preferred stock			(216)						(144)						(1,074)						(1,560)
Net loss from continuing operations attributable to common stock—basic and diluted			$	(23,114)					$	(27,223)					$	(127,466)					$	(251,357)
Net loss attributable to common stock—basic and diluted			$	(23,114)					$	(62,090)					$	(131,100)					$	(322,703)
Net loss from continuing operations per share attributable to common stock—basic and diluted			$	(0.20)					$	(0.25)					$	(1.13)					$	(2.33)
Net loss per share attributable to common stock—basic and diluted			$	(0.20)					$	(0.57)					$	(1.16)					$	(2.99)
Weighted average shares of common stock—basic and diluted			116,154,001						108,997,415						113,152,752						107,927,464
Net loss			$	(22,898)					$	(61,946)					$	(130,026)					$	(321,143)
Other comprehensive income
Foreign currency translation adjustments			2						29						(71)						94
Unrealized gain (loss) on available-for-sale securities			73						(279)						690						533
Comprehensive loss			$	(22,823)					$	(62,196)					$	(129,407)					$	(320,516)

(1) Includes stock-based compensation as follows:

			Three Months Ended December 31,												Year Ended December 31,
			2023						2022						2023						2022
Cost of revenue			$	2,741					$	4,367					$	12,914					$	15,137
Technology and development			8,352						6,135						33,111						26,365
Marketing			1,312						1,052						5,148						3,991
General and administrative			3,148						4,504						19,528						17,526
Total			$	15,553					$	16,058					$	70,701					$	63,019

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Redfin Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands, unaudited)

			Year Ended December 31,
			2023						2022
Operating Activities
Net loss			$	(130,026)					$	(321,143)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			62,851						64,907
Stock-based compensation			70,935						68,257
Amortization of debt discount and issuance costs			3,620						6,137
Non-cash lease expense			16,269						16,234
Impairment costs			1,948						1,136
Net (gain) loss on IRLCs, forward sales commitments, and loans held for sale			(1,992)						14,427
Change in fair value of mortgage servicing rights, net			3,198						(801)
Gain on extinguishment of convertible senior notes			(94,019)						(57,193)
Other			(2,113)						3,791
Change in assets and liabilities:
Accounts receivable, net			3,286						24,411
Inventory			114,232						243,948
Prepaid expenses and other assets			6,004						(5,904)
Accounts payable			(1,323)						(2,472)
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent			(19,085)						(46,454)
Lease liabilities			(18,998)						(18,452)
Origination of mortgage servicing rights			(565)						(3,140)
Proceeds from sale of mortgage servicing rights			1,457						1,662
Origination of loans held for sale			(3,525,987)						(3,949,442)
Proceeds from sale of loans originated as held for sale			3,567,066						4,000,582
Net cash provided by operating activities			56,758						40,491
Investing activities
Purchases of property and equipment			(12,056)						(21,531)
Purchases of investments			(76,866)						(182,466)
Sales of investments			124,681						17,545
Maturities of investments			61,723						99,455
Cash paid for acquisition, net of cash, cash equivalents, and restricted cash acquired			—						(97,341)
Net cash provided by (used in) investing activities			97,482						(184,338)
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans			9,613						11,528
Tax payments related to net share settlements on restricted stock units			(16,348)						(7,498)
Borrowings from warehouse credit facilities			3,532,119						3,938,265
Repayments to warehouse credit facilities			(3,570,664)						(3,989,407)
Borrowings from secured revolving credit facility			—						565,334
Repayments to secured revolving credit facility			—						(765,114)
Cash paid for secured revolving credit facility issuance costs			—						(733)
Principal payments under finance lease obligations			(89)						(855)
Repurchases of convertible senior notes			(241,808)						(83,614)
Repayments of convertible senior notes			(23,512)						—
Repayment of term loan principal			(313)						—
Extinguishment of convertible senior notes associated with closing of term loan			(57,075)						—
Payments of debt issuance costs			(2,338)						—
Proceeds from term loan			125,000						—
Net cash used in financing activities			(245,415)						(332,094)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash			(71)						(94)
Net change in cash, cash equivalents, and restricted cash			(91,246)						(476,035)
Cash, cash equivalents, and restricted cash:
Beginning of period			242,246						718,281
End of period			$	151,000					$	242,246

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Redfin Corporation and Subsidiaries

Supplemental Financial Information and Business Metrics

(unaudited)

			Three Months Ended
			Dec. 31, 2023						Sep. 30, 2023						Jun. 30, 2023						Mar. 31, 2023						Dec. 31, 2022						Sep. 30, 2022						Jun. 30, 2022						Mar. 31, 2022
Monthly average visitors (in thousands)			43,861						51,309						52,308						50,440						43,847						50,785						52,698						51,287
Real estate services transactions
Brokerage			10,152						13,075						13,716						10,301						12,743						18,245						20,565						15,001
Partner			3,186						4,351						3,952						3,187						2,742						3,507						3,983						3,417
Total			13,338						17,426						17,668						13,488						15,485						21,752						24,548						18,418
Real estate services revenue per transaction
Brokerage			$	12,248					$	12,704					$	12,376					$	11,556					$	10,914					$	11,103					$	11,692					$	11,191
Partner			2,684						2,677						2,756						2,592						2,611						2,556						2,851						2,814
Aggregate			9,963						10,200						10,224						9,438						9,444						9,725						10,258						9,637
U.S. market share by units(1)			0.72		%				0.78		%				0.75		%				0.79		%				0.76		%				0.80		%				0.83		%				0.79		%
Revenue from top-10 Redfin markets as a percentage of real estate services revenue			55		%				56		%				55		%				53		%				57		%				58		%				59		%				57		%
Average number of lead agents			1,692						1,744						1,792						1,876						2,022						2,293						2,640						2,750
Mortgage originations by dollars (in millions)			$	885					$	1,110					$	1,282					$	991					$	1,036					$	1,557					$	1,565					$	159
Mortgage originations by units (in ones)			2,293						2,786						3,131						2,444						2,631						3,720						3,860						414

			Year Ended December 31,
			2023						2022
Monthly average visitors (in thousands)			49,479						49,654
Real estate services transactions
Brokerage			47,244						66,554
Partner			14,676						13,649
Total			61,920						80,203
Real estate services revenue per transaction
Brokerage			$	12,260					$	11,269
Partner			2,681						2,718
Aggregate			9,990						9,814
U.S. market share by units(1)			0.76		%				0.80		%
Revenue from top-10 markets as a percentage of real estate services revenue			55		%				58		%
Average number of lead agents			1,776						2,426
Mortgage originations by dollars (in millions)			$	4,268					$	4,317
Mortgage originations by units (in ones)			10,654						10,625

(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

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

(unaudited, in thousands)

			Three Months Ended December 31, 2023
			Real estate services						Rentals						Mortgage						Other						Corporate Overhead						Total
Revenue			$	132,890					$	49,176					$	26,270					$	9,741					$	—					$	218,077
Cost of revenue			103,000						11,070						25,070						5,786						—						144,926
Gross profit			29,890						38,106						1,200						3,955						—						73,151
Operating expenses
Technology and development			25,551						15,853						694						1,029						971						44,098
Marketing			7,897						11,443						942						14						36						20,332
General and administrative			17,854						20,807						4,689						968						7,888						52,206
Restructuring and reorganization			—						503						—						—						265						768
Total operating expenses			51,302						48,606						6,325						2,011						9,160						117,404
(Loss) income from continuing operations			(21,412)						(10,500)						(5,125)						1,944						(9,160)						(44,253)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net			18						100						(168)						237						21,168						21,355
Net (loss) income from continuing operations			$	(21,394)					$	(10,400)					$	(5,293)					$	2,181					$	12,008					$	(22,898)

			Three Months Ended December 31, 2023
			Real estate services						Rentals						Mortgage						Other						Corporate Overhead						Total
Net (loss) income from continuing operations			$	(21,394)					$	(10,400)					$	(5,293)					$	2,181					$	12,008					$	(22,898)
Interest income(1)			(18)						(100)						(2,176)						(237)						(2,007)						(4,538)
Interest expense(2)			—						—						2,318						—						4,132						6,450
Income tax expense			—						—						68						—						29						97
Depreciation and amortization			3,201						9,808						935						246						255						14,445
Stock-based compensation(3)			10,961						3,073						(1,088)						550						2,057						15,553
Restructuring and reorganization(4)			—						503						—						—						265						768
Impairment(5)			—						—						—						—						1,835						1,835
Gain on extinguishment of convertible senior notes			—						—						—						—						(25,171)						(25,171)
Adjusted EBITDA			$	(7,250)					$	2,884					$	(5,236)					$	2,740					$	(6,597)					$	(13,459)

(1) Interest income includes $2.2 million of interest income related to originated mortgage loans for the three months ended December 31, 2023.

(2) Interest expense includes $2.2 million of interest expense related to our warehouse credit facilities for the three months ended December 31, 2023.

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

(4) 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.

(5) Impairment consists of an impairment loss due to subleasing one of our operating leases.

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			Three Months Ended December 31, 2022
			Real estate services						Rentals						Mortgage						Other						Corporate Overhead						Total
Revenue(1)			$	146,242					$	40,931					$	28,420					$	6,342					$	—					$	221,935
Cost of revenue			119,913						9,647						30,936						5,872						—						166,368
Gross profit			26,329						31,284						(2,516)						470						—						55,567
Operating expenses
Technology and development			25,052						15,360						798						616						1,421						43,247
Marketing			8,293						14,258						1,364						26						15						23,956
General and administrative			20,594						23,990						7,633						960						7,574						60,751
Restructuring and reorganization			—						—						—						—						13,954						13,954
Total operating expenses			53,939						53,608						9,795						1,602						22,964						141,908
(Loss) income from continuing operations			(27,610)						(22,324)						(12,311)						(1,132)						(22,964)						(86,341)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net			—						291						50						88						58,833						59,262
Net (loss) income from continuing operations			$	(27,610)					$	(22,033)					$	(12,261)					$	(1,044)					$	35,869					$	(27,079)

(1) Included in revenue is $2.9 million from providing services to our discontinued properties segment.

			Three Months Ended December 31, 2022
			Real estate services						Rentals						Mortgage						Other						Corporate Overhead						Total
Net (loss) income from continuing operations			$	(27,610)					$	(22,033)					$	(12,261)					$	(1,044)					$	35,869					$	(27,079)
Interest income(1)			—						(23)						(3,203)						(88)						(4,571)						(7,885)
Interest expense(2)			—						—						2,981						—						2,136						5,117
Income tax expense			—						(288)						(174)						—						153						(309)
Depreciation and amortization			4,569						10,133						1,013						274						953						16,942
Stock-based compensation(3)			7,008						2,709						1,542						345						4,454						16,058
Restructuring and reorganization(4)			—						—						—						—						13,954						13,954
Impairment(5)			—						—						—						—						224						224
Gain on extinguishment of convertible senior notes			—						—						—						—						(57,193)						(57,193)
Adjusted EBITDA			$	(16,033)					$	(9,502)					$	(10,102)					$	(513)					$	(4,021)					$	(40,171)

(1) Interest income includes $3.2 million of interest income related to originated mortgage loans for the three months ended December 31, 2022.

(2) Interest expense includes $2.9 million of interest expense related to our warehouse credit facilities for the three months ended December 31, 2022.

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

(4) 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.

(5) Impairment consists of an impairment loss due to subleasing one of our operating leases.

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			Year ended December 31, 2023
			Real estate services						Rentals						Mortgage						Other						Corporate overhead						Total
Revenue(1)			$	618,577					$	184,812					$	134,108					$	39,175					$	—					$	976,672
Cost of revenue			462,625						42,086						118,178						23,964						—						646,853
Gross profit			155,952						142,726						15,930						15,211						—						329,819
Operating expenses
Technology and development			108,201						63,934						2,871						4,504						3,784						183,294
Marketing			59,746						53,952						4,064						60						41						117,863
General and administrative			76,851						94,252						25,012						4,017						38,658						238,790
Restructuring and reorganization			—						503						—						—						7,424						7,927
Total operating expenses			244,798						212,641						31,947						8,581						49,907						547,874
(Loss) income from continuing operations			(88,846)						(69,915)						(16,017)						6,630						(49,907)						(218,055)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net			59						215						(392)						712						91,069						91,663
Net (loss) income from continuing operations			$	(88,787)					$	(69,700)					$	(16,409)					$	7,342					$	41,162					$	(126,392)

1) Included in revenue is $1.2 million from providing services to our discontinued properties segment.

			Year ended December 31, 2023
			Real estate services						Rentals						Mortgage						Other						Corporate overhead						Total
Net (loss) income from continuing operations			$	(88,787)					$	(69,700)					$	(16,409)					$	7,342					$	41,162					$	(126,392)
Interest income(1)			(59)						(338)						(11,238)						(712)						(9,407)						(21,754)
Interest expense(2)			—						—						12,055						—						9,417						21,472
Income tax expense			—						123						289						—						567						979
Depreciation and amortization			16,020						39,876						3,864						1,002						2,000						62,762
Stock-based compensation(3)			44,002						14,653						1,466						2,246						8,334						70,701
Acquisition-related costs(4)			—						—						—						—						8						8
Restructuring and reorganization(5)			—						503						—						—						7,424						7,927
Impairment(6)			—						—						—						—						1,948						1,948
Gain on extinguishment of convertible senior notes			—						—						—						—						(94,019)						(94,019)
Adjusted EBITDA			$	(28,824)					$	(14,883)					$	(9,973)					$	9,878					$	(32,566)					$	(76,368)

(1) Interest income includes $11.2 million of interest income related to originated mortgage loans for the year ended December 31, 2023.

(2) Interest expense includes $11.9 million of interest expense related to our warehouse credit facilities for the year ended December 31, 2023.

(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 due to the restructuring and reorganization activities.

(6) Impairment consists of impairment losses due to subleasing two of our operating leases.

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			Year ended December 31, 2022
			Real estate services						Rentals						Mortgage						Other						Corporate overhead						Total
Revenue(1)			$	787,076					$	155,910					$	132,904					$	23,684					$	—					$	1,099,574
Cost of revenue			608,027						33,416						126,552						22,460						—						790,455
Gross profit			179,049						122,494						6,352						1,224						—						309,119
Operating expenses
Technology and development			105,196						59,899						6,034						3,591						4,204						178,924
Marketing			98,673						51,064						4,889						199						484						155,309
General and administrative			88,171						92,728						25,680						3,307						33,504						243,390
Restructuring and reorganization			—						—						—						—						32,353						32,353
Total operating expenses			292,040						203,691						36,603						7,097						70,545						609,976
Loss from continuing operations			(112,991)						(81,197)						(30,251)						(5,873)						(70,545)						(300,857)
Interest income, interest expense, income tax benefit, gain on extinguishment of convertible senior notes, and other expense, net			(123)						1,389						(114)						140						49,768						51,060
Net loss from continuing operations			$	(113,114)					$	(79,808)					$	(30,365)					$	(5,733)					$	(20,777)					$	(249,797)

(1) Included in revenue is $17.8 million from providing services to our discontinued properties segment.

			Year ended December 31, 2022
			Real estate services						Rentals						Mortgage						Other						Corporate overhead						Total
Net loss from continuing operations			$	(113,114)					$	(79,808)					$	(30,365)					$	(5,733)					$	(20,777)					$	(249,797)
Interest income(1)			—						(24)						(10,499)						(143)						(6,447)						(17,113)
Interest expense(2)			—						—						8,580						—						8,778						17,358
Income tax expense			—						(1,077)						—						—						1,193						116
Depreciation and amortization			17,526						38,683						3,438						1,089						1,836						62,572
Stock-based compensation(3)			36,652						11,319						4,132						1,496						9,420						63,019
Acquisition-related costs(4)			—						—						—						—						2,437						2,437
Restructuring and reorganization(5)			—						—						—						—						32,353						32,353
Impairment(6)			—						—						—						—						1,136						1,136
Gain on extinguishment of convertible senior notes			—						—						—						—						(57,193)						(57,193)
Adjusted EBITDA			$	(58,936)					$	(30,907)					$	(24,714)					$	(3,291)					$	(27,264)					$	(145,112)

(1) Interest income includes $10.5 million of interest income related to originated mortgage loans for the year ended December 31, 2022.

(2) Interest expense includes $8.5 million of interest expense related to our warehouse credit facilities for the year ended December 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 due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June and October 2022 workforce reductions.

(6) Impairment consists of an impairment loss due to subleasing one of our operating leases.

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Redfin Corporation and Subsidiaries

Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance

(unaudited, in millions)

			Three Months Ended March 31, 2024
			Low						High
Net loss			$	(72)					$	(65)
Net interest expense			3						3
Depreciation and amortization			14						14
Stock-based compensation			18						18
Adjusted EBITDA			$	(36)					$	(29)

12