Washington, D.C. 20549


Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 5, 2021
Redfin Corporation
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
1099 Stewart Street
Suite 600
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code
(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.001 par value per shareRDFNThe Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02 Results of Operations and Financial Condition.

On May 5, 2021, we reported our financial results for the quarter ended March 31, 2021. A copy of our earnings release is furnished as exhibit 99.1 to this report.

Item 9.01 Financial Statements and Exhibits.
Exhibit Number
Cover page interactive data file, submitted using inline XBRL



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Redfin Corporation
Date: May 5, 2021/s/ Chris Nielsen
Chris Nielsen
Chief Financial Officer


Redfin Reports First Quarter 2021 Financial Results

SEATTLE - May 5, 2021 - Redfin Corporation (NASDAQ: RDFN) today announced financial results for the first quarter ended March 31, 2021. All financial measures, unless otherwise noted, are presented on a GAAP basis and include stock-based compensation, and depreciation and amortization.

Revenue increased 40% year-over-year to $268 million during the first quarter. Gross profit was $42 million, an increase of 229% from $13 million in the first quarter of 2020. Real estate services gross profit was $40 million, an increase of 168% from $15 million in the first quarter of 2020. Real estate services gross margin was 24%, compared to 14% in the first quarter of 2020. Operating expenses were $77 million, an increase of 9% from $70 million in the first quarter of 2020. Operating expenses were 29% of revenue, down from 37% in the first quarter of 2020.

Net loss was $36 million, compared to net loss of $60 million in the first quarter of 2020. The dividend on our convertible preferred stock was $2.3 million in the first quarter. Net loss attributable to common stock was $38 million. Stock-based compensation was $12.6 million, up from $7.2 million in the first quarter of 2020. Depreciation and amortization was $4.4 million, up from $3.3 million in the first quarter of 2020. Interest income was $0.2 million and interest expense was $1.3 million, compared to $1.1 million and $2.4 million, respectively, in the first quarter of 2020.

Net loss per share attributable to common stock, diluted, was $0.37, compared to net loss per share, diluted, of $0.64 in the first quarter of 2020.

“After scrambling in the second half of 2020 to hire enough agents and lenders to handle a pandemic-driven surge in demand, Redfin is just about hitting on all cylinders,” said Redfin CEO Glenn Kelman. “From the fourth quarter of 2020 to the first quarter of 2021, our year-over-year market-share gains more than doubled, and our year-over-year gross-margin gains also accelerated. We tripled the rate at which we’re scheduling home tours instantly and automatically, giving our customers a competitive advantage when homes are selling faster than ever. Our RedfinNow business of buying and selling homes returned to growth and earned its first significant gross profits, and our mortgage business continued to grow at a year-over-year rate of about 200%.”


First Quarter Highlights
Reached market share of 1.14% of U.S. existing home sales by value in the first quarter of 2021, an increase of 21 basis points from the first quarter of 2020.(1)
Saved homebuyers and sellers over $42 million in the first quarter. This includes the savings Redfin offers buyers through the Redfin Refund and sellers through Redfin’s lower listing fee when compared to a 2.5% listing commission typically charged by traditional agents.
Redfin’s mobile application and website reached 46 million average monthly users in the first quarter, an increase of 30% compared to the first quarter of 2020.
Completed the acquisition of RentPath on April 2. RentPath is a leading rental listings company, with sites including ApartmentGuide.com, Rent.com, and Rentals.com. Combined with RentPath, Redfin can now be a nationwide destination for all consumers looking for a home.
Continued expansion of RedfinNow by launching in Phoenix, Maryland, Northern Virginia and Washington D.C. in the first quarter of 2021.
Launched Redfin Premier service for luxury homes in Lake Tahoe, Los Angeles, Santa Barbara, San Francisco, Seattle and Washington, D.C., expanding from 14 to 20 markets. Redfin Premier offers high-end photography and premium marketing to showcase million dollar homes and reach luxury buyers around the globe.
Upgraded our software for customers, agents, partners, home services and mortgage teams, including:
Shipped new software for home sale advisors to stay in touch with prospective home sellers and guide them toward the Redfin selling solution that meets their needs whether that is listing with a Redfin agent or getting a cash offer from RedfinNow.
Began publishing the commission offered to the buyer agent on homes for sale to give consumers more transparent information about real estate agent fees.
Published our 2020 Diversity at Redfin report to track our progress and the next steps in our efforts to make Redfin a better place to work for all people. The share of women and people of color at the company and within leadership roles increased from 2019 to 2020. While there is continued opportunity for improvement, the percentage of Black employees rose from 7.5% to 8.5% and the number of Latinx employees rose from 8.4% to 10.0%.
Subsequent to the first quarter, launched our annual media campaign on April 19 featuring on-demand tours.
TV ads are airing in 15 markets and on national cable networks: Welcome to Redfin.
Supporting listing growth with digital videos on YouTube and Facebook.
Developed new radio ads to drive customers to tour with Redfin.

(1) We calculate the aggregate value of U.S. home sales by multiplying the total number of U.S. existing home sales by the mean sale price of these homes, each as reported by the National Association of REALTORS®. We calculate our market share by aggregating the home value of brokerage and partner real estate services transactions. Then, in order to account for both the sell- and buy-side components of each transaction, we divide that value by two-times the estimated aggregate value of U.S. home sales.

Business Outlook
The following forward-looking statements reflect Redfin's expectations as of May 5, 2021, and are subject to substantial uncertainty.

For the second quarter of 2021 we expect:
Total revenue between $446 million and $457 million, representing a year-over-year increase between 109% and 114% compared to the second quarter of 2020. Included within total revenue are properties segment revenue between $151 million and $156 million, and RentPath revenue between $41 million and $42 million.

Total net loss between $38 million and $32 million, compared to total net loss of $7 million in the second quarter of 2020. RentPath’s contribution to the net loss is expected to be between $10 million and $9 million. This guidance includes approximately $13 million of expected stock-based compensation, $10 million of expected depreciation and amortization, $6 million of expected transaction fees associated with the RentPath acquisition, and $3 million of expected net interest expense. Net income attributable to common stockholders will include the value of dividends on our convertible preferred stock, which we expect to pay in shares of our common stock.

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, 2020, as supplemented by our quarterly report for the quarter ended March 31, 2021, both of which are available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.

About Redfin
Redfin (www.redfin.com) is a technology-powered real estate broker, instant home-buyer (iBuyer), lender, title insurer, and renovations company. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 95 markets across the U.S. and Canada and employ over 4,100 people.



Investor Relations
Meg Nunnally, 206-576-8132

Public Relations
Mariam Sughayer, 206-876-1322

Redfin Corporation and Subsidiaries
Consolidated Statements of Comprehensive Loss
(in thousands, except share and per share amounts, unaudited)
Three Months Ended March 31,
Service$175,593 $111,478 
Product92,726 79,517 
Total revenue268,319 190,995 
Cost of revenue(1)
Service134,851 98,368 
Product91,110 79,748 
Total cost of revenue225,961 178,116 
Gross profit42,358 12,879 
Operating expenses
Technology and development(1)
27,678 20,274 
11,802 25,708 
General and administrative(1)
37,391 24,327 
Total operating expenses76,871 70,309 
Loss from operations(34,513)(57,430)
Interest income159 1,103 
Interest expense(1,338)(2,444)
Other income (expense), net(92)(1,346)
Net loss$(35,784)$(60,117)
Dividends on convertible preferred stock(2,336)— 
Net loss attributable to common stock—basic and diluted$(38,120)$(60,117)
Net loss per share attributable to common stock—basic and diluted$(0.37)$(0.64)
Weighted average shares to compute net loss per share attributable to common stock—basic and diluted103,427,764 93,442,706 
Net Loss$(35,784)$(60,117)
Other comprehensive income (loss)
Foreign currency translation adjustments$— $(25)
Unrealized gain (loss) on available-for-sale securities(50)559 
Comprehensive loss$(35,834)$(59,583)

(1) Includes stock-based compensation as follows:
Three Months Ended March 31,
Cost of revenue$2,978 $1,638 
Technology and development5,761 3,648 
Marketing542 375 
General and administrative3,302 1,550 
Total$12,583 $7,211 


Redfin Corporation and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share amounts, unaudited)
March 31, 2021December 31, 2020
Current assets
Cash and cash equivalents$1,241,255 $925,276 
Restricted cash101,790 20,544 
Short-term investments140,843 131,561 
Accounts receivable, net of allowances for credit losses of $182 and $16047,416 54,719 
Inventory97,371 49,158 
Loans held for sale43,447 42,539 
Prepaid expenses15,224 12,131 
Other current assets7,014 4,898 
Total current assets1,694,360 1,240,826 
Property and equipment, net47,649 43,988 
Right-of-use assets, net47,932 44,149 
Long-term investments6,906 11,922 
Goodwill and intangibles, net10,894 11,016 
Other assets, noncurrent8,836 8,619 
Total assets$1,816,577 $1,360,520 
Liabilities, mezzanine equity and stockholders' equity
Current liabilities
Accounts payable$15,568 $5,644 
Accrued liabilities75,754 69,460 
Other payables19,117 13,184 
Warehouse credit facilities40,663 39,029 
Secured revolving credit facility48,851 23,949 
Convertible senior notes, net23,428 22,482 
Lease liabilities12,611 11,973 
Total current liabilities235,992 185,721 
Lease liabilities and deposits, noncurrent53,333 49,339 
Convertible senior notes, net, noncurrent1,136,974 488,268 
Payroll tax liabilities, noncurrent6,812 6,812 
Total liabilities1,433,111 730,140 
Commitments and contingencies (Note 7)
Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 shares issued and outstanding39,834 39,823 
Stockholders’ equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 103,983,585 and 103,000,594 shares issued and outstanding, respectively104 103 
Additional paid-in capital641,702 860,556 
Accumulated other comprehensive income161 211 
Accumulated deficit(298,335)(270,313)
Total stockholders’ equity343,632 590,557 
Total liabilities, mezzanine equity and stockholders’ equity$1,816,577 $1,360,520 

Redfin Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three Months Ended March 31,
Operating Activities
Net loss
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization4,341 3,307 
Stock-based compensation12,583 7,211 
Amortization of debt discount and issuance costs855 1,730 
Non-cash lease expense2,533 2,254 
Impairment costs— 1,420 
Net gain on IRLCs, forward sales commitments and loans held for sale(1,052)(494)
Other109 (119)
Change in assets and liabilities:
Accounts receivable, net7,303 (2,598)
Prepaid expenses and other assets(3,359)4,934 
Accounts payable5,947 514 
Accrued liabilities, other payables, and non-current payroll tax liabilities8,873 18,725 
Lease liabilities (2,951)(2,693)
Origination of loans held for sale(227,090)(132,697)
Proceeds from sale of loans originated as held for sale225,140 111,233 
Net cash provided by (used in) operating activities(50,765)(43,449)
Investing activities
Purchases of property and equipment(5,285)(3,406)
Purchases of investments(67,877)(33,267)
Sales of investments— 31,608 
Maturities of investments63,589 1,597 
Net cash used in investing activities(9,573)(3,468)
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans3,411 4,103 
Tax payments related to net share settlements on restricted stock units(10,860)(3,307)
Borrowings from warehouse credit facilities216,382 131,310 
Repayments to warehouse credit facilities(214,747)(110,025)
Borrowings from secured revolving credit facility71,177 11,854 
Repayments to secured revolving credit facility(46,275)(7,398)
Proceeds from issuance of convertible senior notes, net of issuance costs488,691 — 
Purchases of capped calls related to convertible senior notes(54,480)— 
Payments for repurchases and conversions of convertible senior notes(1,886)— 
Other payables—deposits held in escrow6,521 3,684 
Principal payments under finance lease obligations(67)(15)
Cash paid for secured revolving credit facility issuance costs(305)— 
Net cash provided by financing activities457,562 30,206 
Effect of exchange rate changes on cash and cash equivalents(25)
Net change in cash, cash equivalents, and restricted cash397,225 (16,736)
Cash, cash equivalents, and restricted cash:
Beginning of period945,820 247,448 
End of period
1,343,045 230,712 

Redfin Corporation and Subsidiaries
Supplemental Financial Information and Business Metrics
Three Months Ended
Mar. 31, 2021Dec. 31, 2020Sep. 30 2020Jun. 30, 2020Mar. 31, 2020Dec. 31, 2019Sep. 30, 2019Jun. 30, 2019Mar. 31, 2019
Monthly average visitors (in thousands)46,202 44,135 49,258 42,537 35,519 30,595 35,633 36,557 31,107 
Real estate services transactions
Brokerage14,317 16,951 18,980 13,828 10,751 13,122 16,098 15,580 8,435 
Partner3,944 4,940 5,180 2,691 2,479 2,958 3,499 3,357 2,125 
Total18,261 21,891 24,160 16,519 13,230 16,080 19,597 18,937 10,560 
Real estate services revenue per transaction
Brokerage$10,927 $10,751 $10,241 $9,296 $9,520 $9,425 $9,075 $9,332 $9,640 
Partner3,084 3,123 2,988 2,417 2,535 2,369 2,295 2,218 2,153 
Aggregate9,233 9,030 8,686 8,175 8,211 8,127 7,865 8,071 8,134 
Aggregate home value of real estate services transactions (in millions)$9,621 $11,478 $12,207 $7,576 $6,098 $7,588 $9,157 $8,986 $4,800 
U.S. market share by value
1.14 %1.04 %1.04 %0.93 %0.93 %0.94 %0.96 %0.94 %0.83 %
Revenue from top-10 Redfin markets as a percentage of real estate services revenue62 %63 %63 %63 %61 %62 %63 %64 %64 %
Average number of lead agents
2,277 1,981 1,820 1,399 1,826 1,526 1,579 1,603 1,503 
RedfinNow homes sold171 83 37 162 171 212 168 80 43 
Revenue per RedfinNow home sold$525,173 $471,551 $504,583 $444,690 $461,916 $466,939 $476,770 $498,083 $496,437 

Redfin Corporation and Subsidiaries
Supplemental Financial Information
(unaudited, in thousands)
Three Months Ended March 31,
Real estate services revenue
Brokerage revenue$156,447 $102,351 
Partner revenue12,162 6,285 
Total real estate services revenue168,609 108,636 
Properties revenue92,726 79,098 
Other revenue9,357 4,250 
Intercompany elimination(2,373)(989)
Total revenue$268,319 $190,995 
Cost of revenue
Real estate services$128,216 $93,562 
Properties91,130 79,299 
Other8,988 6,244 
Intercompany elimination(2,373)(989)
Total cost of revenue$225,961 $178,116 
Gross profit
Real estate services$40,393 $15,074 
Properties1,596 (201)
Other369 (1,994)
Total gross profit$42,358 $12,879 
Gross margin (percentage of revenue)
Real estate services24.0 %13.9 %
Properties1.7 (0.3)
Other3.9 (46.9)
Total gross margin15.8 6.7