Press releases

Redfin Reports Third Quarter 2024 Financial Results

SEATTLE--(BUSINESS WIRE)-- Redfin Corporation (NASDAQ: RDFN) today announced results for its third quarter ended September 30, 2024.

Third Quarter 2024

Third quarter revenue was $278.0 million, an increase of 3% compared to the third quarter of 2023. Gross profit was $101.9 million, an increase of 4% year-over-year. Real estate services gross profit was $48.7 million, a decrease of 10% year-over-year, and real estate services gross margin was 28%, compared to 30% in the third quarter of 2023.

Net loss was $33.8 million, compared to a net loss of $19.0 million in the third quarter of 2023. Net loss attributable to common stock was $34.1 million. Net loss per share attributable to common stock, diluted, was $0.28, compared to net loss per share, diluted, of $0.17 in the third quarter of 2023.

Adjusted EBITDA was $3.9 million, down from an adjusted EBITDA of $7.7 million in the third quarter of 2023.

“Redfin’s third-quarter results were within our guidance range, and we’re now forecasting fourth-quarter growth in market share and revenues,” said Redfin CEO Glenn Kelman. “Already, shifting our real estate agents to a commissions-based model has improved close rates, with industry-leading attach rates for mortgage and title services. And now, the growth in our digital businesses and our reductions in headquarters costs will let us fund more demand-generation. With plans to hire hundreds of agents between now and next spring, we’re emerging from a year of record low U.S. home sales ready to go on the attack.”

Third Quarter Highlights

  • Third quarter market share was 0.76% of U.S. existing home sales by units, compared to 0.78% in the third quarter of 2023.
  • Average lead agents of 1,757, up 1 percent compared to the third quarter of 2023 and marking Redfin’s second straight quarter of sequential agent growth.
  • Achieved a 27% mortgage attach rate in the third quarter of 2024, up from 22% in the third quarter of 2023.1
  • Maintained momentum in loyalty sales, with 37% of sales coming from loyalty customers compared to 36% in the third quarter of 2023.
  • Announced the nationwide expansion of our Redfin Next agent pay plan and transitioned all existing agents to the plan on October 27. To date, Redfin has hired more than 500 agents to join the brokerage under Next.
  • Launched Redfin Teams nationwide, helping teams of up to five agents formally partner to expand their business and grow their career to a new level. More than 180 agents have joined the program since it launched in September, including over 50 who are new to the brokerage.
  • Extended Redfin Redesign’s reach by partnering with five additional multiple listing services. The AI-powered home design tool is now available on more than 355,000 for-sale listings across the U.S. and to any U.S. homeowner who has claimed their home on Redfin.
  • Expanded Redfin’s rental tools nationwide, which was announced on October 15. Property managers across the country can now use Redfin to list rental homes for free, connect with renters across Redfin’s family of sites, and manage the application and renter screening process.
  • Supported agents and customers through the National Association of Realtors settlement changes by integrating a consumer-friendly fee agreement into our tour scheduling process and giving customers who commit to Redfin early a better deal through Sign & Save.

(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 21% in the third quarter of 2024, compared to 18% in the third quarter of 2023.

Business Outlook

The following forward-looking statements reflect Redfin's expectations as of November 7, 2024, and are subject to substantial uncertainty.

For the fourth quarter of 2024 we expect:

  • Total revenue between $237 million and $247 million, representing a year-over-year growth between 9% and 13% compared to the fourth quarter of 2023. Included within total revenue are real estate services revenue between $144 million and $150 million, rentals revenue of $51 million, mortgage revenue between $28 million and $32 million and other revenue between $13 million and $14 million.
  • Total net loss is expected to be between $32 million and $25 million, compared to net loss of $23 million in the fourth quarter of 2023. This guidance includes approximately $22 million in total marketing expenses, $18 million of stock-based compensation, $9 million in depreciation and amortization, and $7 million in net interest expense. Adjusted EBITDA is expected to be between $1 million and $8 million. Furthermore, we expect to pay a final dividend of 20,427 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, as supplemented by our quarterly report for the quarter ended March 31, 2024, each 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 and nine months ended September 30, 2024 and 2023 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, and title insurance 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. 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 approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin-F

Redfin Corporation and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share amounts, unaudited)

 

 

September 30, 2024

 

December 31, 2023

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

165,660

 

 

$

149,759

 

Restricted cash

 

174

 

 

 

1,241

 

Short-term investments

 

 

 

 

41,952

 

Accounts receivable, net of allowances for credit losses of $3,945 and $3,234

 

74,971

 

 

 

51,738

 

Loans held for sale

 

212,921

 

 

 

159,587

 

Prepaid expenses

 

30,531

 

 

 

33,296

 

Other current assets

 

20,514

 

 

 

7,472

 

Total current assets

 

504,771

 

 

 

445,045

 

Property and equipment, net

 

43,312

 

 

 

46,431

 

Right-of-use assets, net

 

26,275

 

 

 

31,763

 

Mortgage servicing rights, at fair value

 

2,534

 

 

 

32,171

 

Long-term investments

 

 

 

 

3,149

 

Goodwill

 

461,349

 

 

 

461,349

 

Intangible assets, net

 

104,127

 

 

 

123,284

 

Other assets, noncurrent

 

8,705

 

 

 

10,456

 

Total assets

$

1,151,073

 

 

$

1,153,648

 

Liabilities, mezzanine equity, and stockholders' (deficit) equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

14,280

 

 

$

10,507

 

Accrued and other liabilities

 

101,040

 

 

 

90,360

 

Warehouse credit facilities

 

208,817

 

 

 

151,964

 

Lease liabilities

 

13,347

 

 

 

15,609

 

Total current liabilities

 

337,484

 

 

 

268,440

 

Lease liabilities, noncurrent

 

22,853

 

 

 

29,084

 

Convertible senior notes, net, noncurrent

 

571,644

 

 

 

688,737

 

Term loan

 

243,646

 

 

 

124,416

 

Deferred tax liabilities

 

647

 

 

 

264

 

Total liabilities

 

1,176,274

 

 

 

1,110,941

 

Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 shares issued and outstanding at September 30, 2024 and December 31, 2023

 

39,992

 

 

 

39,959

 

Stockholders’ (deficit) equity

 

 

 

Common stock—par value $0.001 per share; 500,000,000 shares authorized; 123,945,380 and 117,372,171 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively

 

124

 

 

 

117

 

Additional paid-in capital

 

886,592

 

 

 

826,146

 

Accumulated other comprehensive loss

 

(140

)

 

 

(182

)

Accumulated deficit

 

(951,769

)

 

 

(823,333

)

Total stockholders’ (deficit) equity

 

(65,193

)

 

 

2,748

 

Total liabilities, mezzanine equity, and stockholders’ (deficit) equity

$

1,151,073

 

 

$

1,153,648

 

Redfin Corporation and Subsidiaries
Consolidated Statements of Comprehensive Loss
(in thousands, except share and per share amounts, unaudited)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

Revenue

$

278,015

 

 

$

268,956

 

 

$

798,697

 

 

$

758,595

 

Cost of revenue(1)

 

176,152

 

 

 

170,616

 

 

 

516,436

 

 

 

501,927

 

Gross profit

 

101,863

 

 

 

98,340

 

 

 

282,261

 

 

 

256,668

 

Operating expenses

 

 

 

 

 

 

 

Technology and development(1)

 

40,332

 

 

 

44,392

 

 

 

128,976

 

 

 

139,196

 

Marketing(1)

 

27,186

 

 

 

24,095

 

 

 

92,324

 

 

 

97,531

 

General and administrative(1)

 

58,788

 

 

 

55,380

 

 

 

181,366

 

 

 

186,584

 

Restructuring and reorganization

 

2,509

 

 

 

 

 

 

4,732

 

 

 

7,159

 

Total operating expenses

 

128,815

 

 

 

123,867

 

 

 

407,398

 

 

 

430,470

 

Loss from continuing operations

 

(26,952

)

 

 

(25,527

)

 

 

(125,137

)

 

 

(173,802

)

Interest income

 

1,839

 

 

 

2,060

 

 

 

5,132

 

 

 

8,170

 

Interest expense

 

(8,537

)

 

 

(1,603

)

 

 

(19,497

)

 

 

(5,291

)

Income tax expense

 

12

 

 

 

(239

)

 

 

(375

)

 

 

(882

)

Gain on extinguishment of convertible senior notes

 

 

 

 

6,495

 

 

 

12,000

 

 

 

68,848

 

Other expense, net

 

(144

)

 

 

(158

)

 

 

(559

)

 

 

(537

)

Net loss from continuing operations

 

(33,782

)

 

 

(18,972

)

 

 

(128,436

)

 

 

(103,494

)

Net loss from discontinued operations

 

 

 

 

 

 

 

 

 

 

(3,634

)

Net loss

$

(33,782

)

 

$

(18,972

)

 

$

(128,436

)

 

$

(107,128

)

 

 

 

 

 

 

 

 

Dividends on convertible preferred stock

 

(282

)

 

 

(335

)

 

 

(706

)

 

 

(858

)

 

 

 

 

 

 

 

 

Net loss from continuing operations attributable to common stock—basic and diluted

$

(34,064

)

 

$

(19,307

)

 

$

(129,142

)

 

$

(104,352

)

Net loss attributable to common stock—basic and diluted

$

(34,064

)

 

$

(19,307

)

 

$

(129,142

)

 

$

(107,986

)

 

 

 

 

 

 

 

 

Net loss from continuing operations per share attributable to common stock—basic and diluted

$

(0.28

)

 

$

(0.17

)

 

$

(1.07

)

 

$

(0.93

)

Net loss attributable to common stock per share—basic and diluted

$

(0.28

)

 

$

(0.17

)

 

$

(1.07

)

 

$

(0.96

)

 

 

 

 

 

 

 

 

Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted

 

122,876,102

 

 

 

114,592,679

 

 

 

120,553,264

 

 

 

112,141,342

 

 

 

 

 

 

 

 

 

Net loss

$

(33,782

)

 

$

(18,972

)

 

$

(128,436

)

 

$

(107,128

)

Other comprehensive income

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

4

 

 

 

(15

)

 

 

2

 

 

 

(73

)

Unrealized gain on available-for-sale debt securities

 

 

 

 

210

 

 

 

40

 

 

 

617

 

Comprehensive loss

$

(33,778

)

 

$

(18,777

)

 

$

(128,394

)

 

$

(106,584

)

(1) 

 

Includes stock-based compensation as follows:

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

 

2024

 

2023

Cost of revenue

$

2,819

 

$

3,037

 

$

8,603

 

$

10,173

Technology and development

 

9,135

 

 

8,391

 

 

26,092

 

 

24,759

Marketing

 

1,131

 

 

1,337

 

 

3,911

 

 

3,836

General and administrative

 

5,217

 

 

6,035

 

 

15,336

 

 

16,380

Total

$

18,302

 

$

18,800

 

$

53,942

 

$

55,148

Redfin Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands, unaudited)

 

 

Nine Months Ended September 30,

 

2024

 

2023

Operating Activities

 

 

 

Net loss

$

(128,436

)

 

$

(107,128

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

33,340

 

 

 

48,443

 

Stock-based compensation

 

53,942

 

 

 

55,382

 

Amortization of debt discount and issuance costs

 

2,280

 

 

 

2,873

 

Non-cash lease expense

 

9,046

 

 

 

12,909

 

Impairment costs

 

 

 

 

113

 

Net gain on IRLCs, forward sales commitments, and loans held for sale

 

(1,809

)

 

 

(1,767

)

Change in fair value of mortgage servicing rights, net

 

(742

)

 

 

1,065

 

Gain on extinguishment of convertible senior notes

 

(12,000

)

 

 

(68,848

)

Other

 

548

 

 

 

(2,013

)

Change in assets and liabilities:

 

 

 

Accounts receivable, net

 

(23,377

)

 

 

(238

)

Inventory

 

 

 

 

114,232

 

Prepaid expenses and other assets

 

(10,141

)

 

 

9,696

 

Accounts payable

 

3,802

 

 

 

177

 

Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent

 

11,772

 

 

 

(19,346

)

Lease liabilities

 

(11,993

)

 

 

(14,864

)

Origination of mortgage servicing rights

 

(170

)

 

 

(699

)

Proceeds from sale of mortgage servicing rights

 

30,549

 

 

 

1,122

 

Origination of loans held for sale

 

(3,071,291

)

 

 

(2,798,337

)

Proceeds from sale of loans originated as held for sale

 

3,018,634

 

 

 

2,858,656

 

Net cash (used in) provided by operating activities

 

(96,046

)

 

 

91,428

 

Investing activities

 

 

 

Purchases of property and equipment

 

(8,984

)

 

 

(9,235

)

Purchases of investments

 

 

 

 

(76,866

)

Sales of investments

 

39,225

 

 

 

124,681

 

Maturities of investments

 

6,395

 

 

 

59,383

 

Net cash provided by investing activities

 

36,636

 

 

 

97,963

 

Financing activities

 

 

 

Proceeds from the issuance of common stock pursuant to employee equity plans

 

4,757

 

 

 

5,790

 

Tax payments related to net share settlements on restricted stock units

 

(1,574

)

 

 

(15,961

)

Borrowings from warehouse credit facilities

 

3,088,179

 

 

 

2,803,589

 

Repayments to warehouse credit facilities

 

(3,031,326

)

 

 

(2,861,779

)

Principal payments under finance lease obligations

 

(56

)

 

 

(73

)

Repurchases of convertible senior notes

 

(106,953

)

 

 

(212,401

)

Repayment of term loan principal

 

(1,563

)

 

 

 

Payments of debt issuance costs

 

(2,222

)

 

 

 

Proceeds from term loan

 

125,000

 

 

 

 

Net cash provided by (used in) financing activities

 

74,242

 

 

 

(304,347

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

2

 

 

 

(73

)

Net change in cash, cash equivalents, and restricted cash

 

14,834

 

 

 

(115,029

)

Cash, cash equivalents, and restricted cash:

 

 

 

Beginning of period

 

151,000

 

 

 

242,246

 

End of period

$

165,834

 

 

$

127,217

 

Redfin Corporation and Subsidiaries
Supplemental Financial Information and Business Metrics
(unaudited)

 

 

Three Months Ended

 

Sep. 30,
2024

 

Jun. 30,
2024

 

Mar. 31,
2024

 

Dec. 31,
2023

 

Sep. 30,
2023

 

Jun. 30,
2023

 

Mar. 31,
2023

 

Dec. 31,
2022

Monthly average visitors (in thousands)

 

49,413

 

 

 

51,619

 

 

 

48,803

 

 

 

43,861

 

 

 

51,309

 

 

 

52,308

 

 

 

50,440

 

 

 

43,847

 

Real estate services transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage

 

13,324

 

 

 

14,178

 

 

 

10,039

 

 

 

10,152

 

 

 

13,075

 

 

 

13,716

 

 

 

10,301

 

 

 

12,743

 

Partner

 

3,440

 

 

 

3,395

 

 

 

2,691

 

 

 

3,186

 

 

 

4,351

 

 

 

3,952

 

 

 

3,187

 

 

 

2,742

 

Total

 

16,764

 

 

 

17,573

 

 

 

12,730

 

 

 

13,338

 

 

 

17,426

 

 

 

17,668

 

 

 

13,488

 

 

 

15,485

 

Real estate services revenue per transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage

$

12,363

 

 

$

12,545

 

 

$

12,433

 

 

$

12,248

 

 

$

12,704

 

 

$

12,376

 

 

$

11,556

 

 

$

10,914

 

Partner

 

3,025

 

 

 

2,859

 

 

 

2,367

 

 

 

2,684

 

 

 

2,677

 

 

 

2,756

 

 

 

2,592

 

 

 

2,611

 

Aggregate

 

10,447

 

 

 

10,674

 

 

 

10,305

 

 

 

9,963

 

 

 

10,200

 

 

 

10,224

 

 

 

9,438

 

 

 

9,444

 

U.S. market share by units

 

0.76

%

 

 

0.77

%

 

 

0.77

%

 

 

0.72

%

 

 

0.78

%

 

 

0.75

%

 

 

0.79

%

 

 

0.76

%

Revenue from top-10 Redfin markets as a percentage of real estate services revenue

 

56

%

 

 

56

%

 

 

55

%

 

 

55

%

 

 

56

%

 

 

55

%

 

 

53

%

 

 

57

%

Average number of lead agents

 

1,757

 

 

 

1,719

 

 

 

1,658

 

 

 

1,692

 

 

 

1,744

 

 

 

1,792

 

 

 

1,876

 

 

 

2,022

 

Mortgage originations by dollars (in millions)

$

1,214

 

 

$

1,338

 

 

$

969

 

 

$

885

 

 

$

1,110

 

 

$

1,282

 

 

$

991

 

 

$

1,036

 

Mortgage originations by units (in ones)

 

2,900

 

 

 

3,192

 

 

 

2,365

 

 

 

2,293

 

 

 

2,786

 

 

 

3,131

 

 

 

2,444

 

 

 

2,631

 

Redfin Corporation and Subsidiaries
Supplemental Financial Information
(unaudited, in thousands)

 

 

Three Months Ended September 30, 2024

 

Real estate
services

 

Rentals

 

Mortgage

 

Other

 

Corporate
overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

175,136

 

 

$

51,660

 

 

$

35,621

 

 

$

15,598

 

$

 

 

$

278,015

 

Cost of revenue

 

126,421

 

 

 

12,366

 

 

 

30,214

 

 

 

7,151

 

 

 

 

 

176,152

 

Gross profit

 

48,715

 

 

 

39,294

 

 

 

5,407

 

 

 

8,447

 

 

 

 

 

101,863

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Technology and development

 

26,927

 

 

 

10,648

 

 

 

675

 

 

 

889

 

 

1,193

 

 

 

40,332

 

Marketing

 

12,907

 

 

 

13,600

 

 

 

667

 

 

 

12

 

 

 

 

 

27,186

 

General and administrative

 

18,263

 

 

 

24,074

 

 

 

5,885

 

 

 

1,215

 

 

9,351

 

 

 

58,788

 

Restructuring and reorganization

 

 

 

 

 

 

 

 

 

 

 

 

2,509

 

 

 

2,509

 

Total operating expenses

 

58,097

 

 

 

48,322

 

 

 

7,227

 

 

 

2,116

 

 

13,053

 

 

 

128,815

 

(Loss) income from continuing operations

 

(9,382

)

 

 

(9,028

)

 

 

(1,820

)

 

 

6,331

 

 

(13,053

)

 

 

(26,952

)

Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net

 

38

 

 

 

100

 

 

 

(2,966

)

 

 

266

 

 

(4,268

)

 

 

(6,830

)

Net (loss) income from continuing operations

$

(9,344

)

 

$

(8,928

)

 

$

(4,786

)

 

$

6,597

 

$

(17,321

)

 

$

(33,782

)

 

Three Months Ended September 30, 2024

 

Real estate
services

 

Rentals

 

Mortgage

 

Other

 

Corporate
overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

$

(9,344

)

 

$

(8,928

)

 

$

(4,786

)

 

$

6,597

 

 

$

(17,321

)

 

$

(33,782

)

Interest income(1)

 

(10

)

 

 

(111

)

 

 

(3,392

)

 

 

(266

)

 

 

(1,451

)

 

 

(5,230

)

Interest expense(2)

 

 

 

 

 

 

 

6,208

 

 

 

 

 

 

5,565

 

 

 

11,773

 

Income tax expense

 

 

 

 

11

 

 

 

 

 

 

 

 

 

(23

)

 

 

(12

)

Depreciation and amortization

 

3,002

 

 

 

5,077

 

 

 

895

 

 

 

227

 

 

 

283

 

 

 

9,484

 

Stock-based compensation(3)

 

11,333

 

 

 

3,515

 

 

 

(89

)

 

 

588

 

 

 

2,955

 

 

 

18,302

 

Restructuring and reorganization(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

2,509

 

 

 

2,509

 

Legal contingencies(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

904

 

 

 

904

 

Adjusted EBITDA

$

4,981

 

 

$

(436

)

 

$

(1,164

)

 

$

7,146

 

 

$

(6,579

)

 

$

3,948

 

(1)

 

Interest income includes $3.4 million of interest income related to originated mortgage loans for the three months ended September 30, 2024.

(2)

 

Interest expense includes $3.2 million of interest expense related to our warehouse credit facilities for the three months ended September 30, 2024.

(3)

 

Stock-based compensation consists of expenses related to 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.

(5)

 

Legal contingencies includes expenses related to significant contingent liabilities resulting from litigation or other legal proceedings.

 

Three Months Ended September 30, 2023

 

Real estate
services

 

Rentals

 

Mortgage

 

Other

 

Corporate
overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

177,750

 

 

$

47,410

 

 

$

32,923

 

 

$

10,873

 

$

 

 

$

268,956

 

Cost of revenue

 

123,684

 

 

 

10,824

 

 

 

29,629

 

 

 

6,479

 

 

 

 

 

170,616

 

Gross profit

 

54,066

 

 

 

36,586

 

 

 

3,294

 

 

 

4,394

 

 

 

 

 

98,340

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Technology and development

 

25,711

 

 

 

15,813

 

 

 

800

 

 

 

1,133

 

 

935

 

 

 

44,392

 

Marketing

 

10,785

 

 

 

12,245

 

 

 

1,088

 

 

 

20

 

 

(43

)

 

 

24,095

 

General and administrative

 

18,418

 

 

 

21,838

 

 

 

6,670

 

 

 

952

 

 

7,502

 

 

 

55,380

 

Restructuring and reorganization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

54,914

 

 

 

49,896

 

 

 

8,558

 

 

 

2,105

 

 

8,394

 

 

 

123,867

 

(Loss) income from continuing operations

 

(848

)

 

 

(13,310

)

 

 

(5,264

)

 

 

2,289

 

 

(8,394

)

 

 

(25,527

)

Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net

 

41

 

 

 

42

 

 

 

(73

)

 

 

207

 

 

6,338

 

 

 

6,555

 

Net (loss) income from continuing operations

$

(807

)

 

$

(13,268

)

 

$

(5,337

)

 

$

2,496

 

$

(2,056

)

 

$

(18,972

)

 

Three Months Ended September 30, 2023

 

Real estate
services

 

Rentals

 

Mortgage

 

Other

 

Corporate
overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

$

(807

)

 

$

(13,268

)

 

$

(5,337

)

 

$

2,496

 

 

$

(2,056

)

 

$

(18,972

)

Interest income(1)

 

(41

)

 

 

(81

)

 

 

(2,886

)

 

 

(207

)

 

 

(1,732

)

 

 

(4,947

)

Interest expense(2)

 

 

 

 

 

 

 

3,132

 

 

 

 

 

 

1,598

 

 

 

4,730

 

Income tax expense

 

 

 

 

37

 

 

 

70

 

 

 

 

 

 

132

 

 

 

239

 

Depreciation and amortization

 

3,123

 

 

 

9,681

 

 

 

947

 

 

 

233

 

 

 

312

 

 

 

14,296

 

Stock-based compensation(3)

 

11,151

 

 

 

4,255

 

 

 

473

 

 

 

574

 

 

 

2,347

 

 

 

18,800

 

Gain on extinguishment of convertible senior notes

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,495

)

 

 

(6,495

)

Adjusted EBITDA

$

13,426

 

 

$

624

 

 

$

(3,601

)

 

$

3,096

 

 

$

(5,894

)

 

$

7,651

 

(1)

 

Interest income includes $2.9 million of interest income related to originated mortgage loans for the three months ended September 30, 2023.

(2)

 

Interest expense includes $3.1 million of interest expense related to our warehouse credit facilities for the three months ended September 30, 2023.

(3)

 

Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.

 

Nine Months Ended September 30, 2024

 

Real estate
services

 

Rentals

 

Mortgage

 

Other

 

Corporate
overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

493,885

 

 

$

152,105

 

 

$

109,619

 

 

$

43,088

 

$

 

 

$

798,697

 

Cost of revenue

 

371,198

 

 

 

35,453

 

 

 

88,646

 

 

 

21,139

 

 

 

 

 

516,436

 

Gross profit

 

122,687

 

 

 

116,652

 

 

 

20,973

 

 

 

21,949

 

 

 

 

 

282,261

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Technology and development

 

84,354

 

 

 

36,577

 

 

 

2,031

 

 

 

2,686

 

 

3,328

 

 

 

128,976

 

Marketing

 

47,939

 

 

 

42,137

 

 

 

2,221

 

 

 

27

 

 

 

 

 

92,324

 

General and administrative

 

57,178

 

 

 

66,794

 

 

 

19,087

 

 

 

3,279

 

 

35,028

 

 

 

181,366

 

Restructuring and reorganization

 

 

 

 

 

 

 

 

 

 

 

 

4,732

 

 

 

4,732

 

Total operating expenses

 

189,471

 

 

 

145,508

 

 

 

23,339

 

 

 

5,992

 

 

43,088

 

 

 

407,398

 

(Loss) income from continuing operations

 

(66,784

)

 

 

(28,856

)

 

 

(2,366

)

 

 

15,957

 

 

(43,088

)

 

 

(125,137

)

Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net

 

6

 

 

 

65

 

 

 

(2,962

)

 

 

690

 

 

(1,098

)

 

 

(3,299

)

Net (loss) income from continuing operations

$

(66,778

)

 

$

(28,791

)

 

$

(5,328

)

 

$

16,647

 

$

(44,186

)

 

$

(128,436

)

 

Nine Months Ended September 30, 2024

 

Real estate
services

 

Rentals

 

Mortgage

 

Other

 

Corporate
overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

$

(66,778

)

 

$

(28,791

)

 

$

(5,328

)

 

$

16,647

 

 

$

(44,186

)

 

$

(128,436

)

Interest income(1)

 

(40

)

 

 

(233

)

 

 

(8,416

)

 

 

(690

)

 

 

(4,169

)

 

 

(13,548

)

Interest expense(2)

 

 

 

 

 

 

 

11,246

 

 

 

 

 

 

16,522

 

 

 

27,768

 

Income tax expense

 

 

 

 

109

 

 

 

 

 

 

 

 

 

266

 

 

 

375

 

Depreciation and amortization

 

9,302

 

 

 

19,888

 

 

 

2,779

 

 

 

667

 

 

 

704

 

 

 

33,340

 

Stock-based compensation(3)

 

34,246

 

 

 

9,978

 

 

 

663

 

 

 

1,688

 

 

 

7,367

 

 

 

53,942

 

Restructuring and reorganization(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

4,732

 

 

 

4,732

 

Gain on extinguishment of convertible senior notes

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,000

)

 

 

(12,000

)

Legal contingencies(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

10,154

 

 

 

10,154

 

Adjusted EBITDA

$

(23,270

)

 

$

951

 

 

$

944

 

 

$

18,312

 

 

$

(20,610

)

 

$

(23,673

)

(1)

 

Interest income includes $8.4 million of interest income related to originated mortgage loans for the nine months ended September 30, 2024.

(2)

 

Interest expense includes $8.3 million of interest expense related to our warehouse credit facilities for the nine months ended September 30, 2024.

(3)

 

Stock-based compensation consists of expenses related to 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.

(5)

 

Legal contingencies includes expenses related to significant contingent liabilities resulting from litigation or other legal proceedings.

 

Nine Months Ended September 30, 2023

 

Real estate
services

 

Rentals

 

Mortgage

 

Other

 

Corporate
overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Revenue(1)

$

485,687

 

 

$

135,636

 

 

$

107,838

 

 

$

29,434

 

$

 

 

$

758,595

 

Cost of revenue

 

359,625

 

 

 

31,016

 

 

 

93,108

 

 

 

18,178

 

 

 

 

 

501,927

 

Gross profit

 

126,062

 

 

 

104,620

 

 

 

14,730

 

 

 

11,256

 

 

 

 

 

256,668

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Technology and development

 

82,650

 

 

 

48,081

 

 

 

2,177

 

 

 

3,475

 

 

2,813

 

 

 

139,196

 

Marketing

 

51,849

 

 

 

42,509

 

 

 

3,122

 

 

 

46

 

 

5

 

 

 

97,531

 

General and administrative

 

58,997

 

 

 

73,445

 

 

 

20,323

 

 

 

3,049

 

 

30,770

 

 

 

186,584

 

Restructuring and reorganization

 

 

 

 

 

 

 

 

 

 

 

 

7,159

 

 

 

7,159

 

Total operating expenses

 

193,496

 

 

 

164,035

 

 

 

25,622

 

 

 

6,570

 

 

40,747

 

 

 

430,470

 

(Loss) income from continuing operations

 

(67,434

)

 

 

(59,415

)

 

 

(10,892

)

 

 

4,686

 

 

(40,747

)

 

 

(173,802

)

Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net

 

41

 

 

 

115

 

 

 

(224

)

 

 

475

 

 

69,901

 

 

 

70,308

 

Net (loss) income from continuing operations

$

(67,393

)

 

$

(59,300

)

 

$

(11,116

)

 

$

5,161

 

$

29,154

 

 

$

(103,494

)

(1)

 

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

 

Nine Months Ended September 30, 2023

 

Real estate
services

 

Rentals

 

Mortgage

 

Other

 

Corporate
overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

$

(67,393

)

 

$

(59,300

)

 

$

(11,116

)

 

$

5,161

 

 

$

29,154

 

 

$

(103,494

)

Interest income(1)

 

(41

)

 

 

(238

)

 

 

(9,062

)

 

 

(475

)

 

 

(7,400

)

 

 

(17,216

)

Interest expense(2)

 

 

 

 

 

 

 

9,737

 

 

 

 

 

 

5,285

 

 

 

15,022

 

Income tax expense

 

 

 

 

123

 

 

 

222

 

 

 

 

 

 

537

 

 

 

882

 

Depreciation and amortization

 

12,819

 

 

 

30,068

 

 

 

2,929

 

 

 

756

 

 

 

1,745

 

 

 

48,317

 

Stock-based compensation(3)

 

33,041

 

 

 

11,580

 

 

 

2,554

 

 

 

1,696

 

 

 

6,277

 

 

 

55,148

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

(68,848

)

 

 

(68,848

)

Adjusted EBITDA

$

(21,574

)

 

$

(17,767

)

 

$

(4,736

)

 

$

7,138

 

 

$

(25,970

)

 

$

(62,909

)

(1)

 

Interest income includes $9.0 million of interest income related to originated mortgage loans for the nine months ended September 30, 2023.

(2)

 

Interest expense includes $9.7 million of interest expense related to our warehouse credit facilities for the nine months ended September 30, 2023.

(3)

 

Stock-based compensation consists of expenses related to 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 an impairment loss due to subleasing one of our operating leases.

Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance
(unaudited, in millions)

 

 

Three months ending December 31, 2024

 

Low

 

High

Net loss

(32

)

 

(25

)

Net interest expense

6

 

 

6

 

Depreciation and amortization

9

 

 

9

 

Stock-based compensation

18

 

 

18

 

Adjusted EBITDA

1

 

 

8

 

Note: Figures may not sum due to rounding.

 

Investor Relations
Meg Nunnally
ir@redfin.com

Public Relations
Mariam Sughayer
press@redfin.com

Source: Redfin Corporation

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