Redfin Reports Fourth Quarter and Full Year 2023 Financial Results

SEATTLE--(BUSINESS WIRE)-- 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.
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 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

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

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

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

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.

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.

	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.

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

	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.

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

	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.

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	)