Redfin Corporation (NASDAQ: RDFN) today announced results for
its second quarter ended June 30, 2024.
Second Quarter 2024
Second quarter revenue was $295.2 million, an increase of 7%
compared to the second quarter of 2023. Gross profit was $109.6
million, an increase of 9% year-over-year. Real estate services
gross profit was $53.7 million, a decrease of 4% year-over-year,
and real estate services gross margin was 29%, compared to 31% in
the second quarter of 2023.
Net loss was $27.9 million, compared to a net loss of $27.4
million in the second quarter of 2023. Net loss attributable to
common stock was $28.1 million. Net loss per share attributable to
common stock, diluted, was $0.23, compared to net loss per share,
diluted, of $0.25 in the second quarter of 2023.
Adjusted EBITDA was flat, up from an adjusted EBITDA loss of
$6.9 million in the second quarter of 2023.
“In a still-declining market, Redfin grew revenues, profits and
market share,” said Redfin CEO Glenn Kelman. “The restructuring of
our brokerage sales force, and the integration of Rent and Redfin
operations, cap a series of seismic changes to increase Redfin’s
profitability: we had already abandoned our own loan-origination
system in 2022. In 2023, we closed our iBuying business, RedfinNow,
and invested in digital businesses that immediately began
contributing significant profits. Our adjusted EBITDA should be
about break-even this year, and we plan to be significantly
profitable in the years ahead.”
Second Quarter Highlights
- Second quarter market share was 0.77% of U.S. existing home
sales by units, compared to 0.75% in the second quarter of
2023.
- Redfin’s mobile apps and website reached nearly 52 million
average monthly users, compared to 52 million the second quarter of
2023.
- Achieved a 28% mortgage attach rate in the second quarter of
2024, up 4 points from the second quarter of 2023.1
- Sequential step-up in loyalty sales, with 37% of sales coming
from loyalty customers compared to 34% in the first quarter of
2024.
- Announced our Redfin Next agent pay plan will expand to 25
additional markets in August, bringing the program to markets
accounting for approximately 74% of brokerage revenues. To date,
Redfin has signed more than 200 top producing agents to join the
brokerage under Redfin Next.
- Launched Redfin Redesign for homeowners, helping those who have
claimed their home on Redfin use AI to redesign their spaces. We
also partnered with five additional MLSs to make Redfin Redesign
available for more than 240,000 for-sale listings.
- Launched products to help property managers connect with
renters:
- Self-service rental tools on Redfin.com that allow homeowners,
investors, property managers and agents to list properties for rent
on Redfin.
- Rent.com photo optimization feature that uses machine learning
to arrange rental listing photos to drive the most renter
engagement.
(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 22% in
the second quarter of 2024, compared to 19% in the second quarter
of 2023.
Business Outlook
The following forward-looking statements reflect Redfin's
expectations as of August 6, 2024, and are subject to substantial
uncertainty.
For the third quarter of 2024 we expect:
- Total revenue between $273 million and $285 million,
representing a year-over-year growth between 1% and 6% compared to
the third quarter of 2023. Included within total revenue are real
estate services revenue between $171 million and $179 million,
rentals revenue between $50 million and $51 million, mortgage
revenue between $36 million and $39 million and other revenue
between $15 million and $16 million.
- Total net loss is expected to be between $30 million and $22
million, compared to net loss of $19 million in the third quarter
of 2023. This guidance includes approximately $29 million in total
marketing expenses, $18 million of stock-based compensation, $9
million in depreciation and amortization, and $6 million in net
interest expense. Adjusted EBITDA is expected to be between $4
million and $12 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, as supplemented by our quarterly report for the
quarter ended March 31, 2024, both of which are available on our
Investor Relations website at http://investors.redfin.com and on
the SEC website at www.sec.gov. All forward-looking statements
reflect our beliefs and assumptions only as of the date of this
press release. We undertake no obligation to update forward-looking
statements to reflect future events or circumstances.
Non-GAAP Financial Measure
To supplement our consolidated financial statements that are
prepared and presented in accordance with GAAP, we also compute and
present adjusted EBITDA, which is a non-GAAP financial measure. We
believe adjusted EBITDA is useful for investors because it enhances
period-to-period comparability of our financial statements on a
consistent basis and provides investors with useful insight into
the underlying trends of the business. The presentation of this
financial measure is not intended to be considered in isolation or
as a substitute of, or superior to, our financial information
prepared and presented in accordance with GAAP. Our calculation of
adjusted EBITDA may be different from adjusted EBITDA or similar
non-GAAP financial measures used by other companies, limiting its
usefulness for comparison purposes. Our adjusted EBITDA for the
three and six months ended June 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, 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-F
Redfin Corporation and
Subsidiaries
Consolidated Balance
Sheets
(in thousands, except share
and per share amounts, unaudited)
June 30, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalents
$
201,812
$
149,759
Restricted cash
756
1,241
Short-term investments
—
41,952
Accounts receivable, net of allowances for
credit losses of $4,677 and $3,234
75,522
51,738
Loans held for sale
208,460
159,587
Prepaid expenses
28,002
33,296
Other current assets
9,872
7,472
Total current assets
524,424
445,045
Property and equipment, net
45,303
46,431
Right-of-use assets, net
28,389
31,763
Mortgage servicing rights, at fair
value
2,695
32,171
Long-term investments
—
3,149
Goodwill
461,349
461,349
Intangible assets, net
108,832
123,284
Other assets, noncurrent
10,492
10,456
Total assets
$
1,181,484
$
1,153,648
Liabilities, mezzanine equity, and
stockholders' (deficit) equity
Current liabilities
Accounts payable
$
11,612
$
10,507
Accrued and other liabilities
125,082
90,360
Warehouse credit facilities
202,559
151,964
Lease liabilities
14,123
15,609
Total current liabilities
353,376
268,440
Lease liabilities, noncurrent
25,193
29,084
Convertible senior notes, net,
noncurrent
571,077
688,737
Term loan
243,961
124,416
Deferred tax liabilities
642
264
Total liabilities
1,194,249
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 June 30, 2024 and December 31, 2023
39,981
39,959
Stockholders’ (deficit) equity
Common stock—par value $0.001 per share;
500,000,000 shares authorized; 121,743,620 and 117,372,171 shares
issued and outstanding at June 30, 2024 and December 31, 2023,
respectively
122
117
Additional paid-in capital
865,263
826,146
Accumulated other comprehensive loss
(144
)
(182
)
Accumulated deficit
(917,987
)
(823,333
)
Total stockholders’ (deficit) equity
(52,746
)
2,748
Total liabilities, mezzanine equity, and
stockholders’ (deficit) equity
$
1,181,484
$
1,153,648
Redfin Corporation and
Subsidiaries
Consolidated Statements of
Comprehensive Loss
(in thousands, except share
and per share amounts, unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue
$
295,203
$
275,556
$
520,682
$
489,639
Cost of revenue(1)
185,617
175,366
340,284
331,311
Gross profit
109,586
100,190
180,398
158,328
Operating expenses
Technology and development(1)
42,215
47,141
88,644
94,804
Marketing(1)
40,260
33,033
65,138
73,436
General and administrative(1)
54,705
61,765
122,578
131,204
Restructuring and reorganization
1,334
6,106
2,223
7,159
Total operating expenses
138,514
148,045
278,583
306,603
Loss from continuing operations
(28,928
)
(47,855
)
(98,185
)
(148,275
)
Interest income
1,461
2,704
3,293
6,110
Interest expense
(6,086
)
(1,766
)
(10,960
)
(3,688
)
Income tax expense
(559
)
(233
)
(387
)
(643
)
Gain on extinguishment of convertible
senior notes
6,314
20,083
12,000
62,353
Other expense, net
(82
)
(145
)
(415
)
(379
)
Net loss from continuing operations
(27,880
)
(27,212
)
(94,654
)
(84,522
)
Net loss from discontinued operations
—
(146
)
—
(3,634
)
Net loss
$
(27,880
)
$
(27,358
)
$
(94,654
)
$
(88,156
)
Dividends on convertible preferred
stock
(191
)
(297
)
(424
)
(523
)
Net loss from continuing operations
attributable to common stock—basic and diluted
$
(28,071
)
$
(27,509
)
$
(95,078
)
$
(85,045
)
Net loss attributable to common
stock—basic and diluted
$
(28,071
)
$
(27,655
)
$
(95,078
)
$
(88,679
)
Net loss from continuing operations per
share attributable to common stock—basic and diluted
$
(0.23
)
$
(0.25
)
$
(0.80
)
$
(0.77
)
Net loss attributable to common stock per
share—basic and diluted
$
(0.23
)
$
(0.25
)
$
(0.80
)
$
(0.80
)
Weighted-average shares to compute net
loss per share attributable to common stock—basic and diluted
120,393,897
111,678,417
119,379,082
110,895,358
Net loss
$
(27,880
)
$
(27,358
)
$
(94,654
)
$
(88,156
)
Other comprehensive income (loss)
Foreign currency translation
adjustments
1
—
(2
)
(58
)
Unrealized (loss) gain on
available-for-sale debt securities
—
(17
)
40
407
Comprehensive loss
$
(27,879
)
$
(27,375
)
$
(94,616
)
$
(87,807
)
(1) Includes stock-based compensation as
follows:
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Cost of revenue
$
3,045
$
3,001
$
5,784
$
7,136
Technology and development
8,718
8,241
16,957
16,368
Marketing
1,349
1,254
2,780
2,499
General and administrative
5,119
5,025
10,119
10,345
Total
$
18,231
$
17,521
$
35,640
$
36,348
Redfin Corporation and
Subsidiaries
Consolidated Statements of
Cash Flows
(in thousands,
unaudited)
Six Months Ended June
30,
2024
2023
Operating Activities
Net loss
$
(94,654
)
$
(88,156
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
23,855
34,146
Stock-based compensation
35,640
36,582
Amortization of debt discount and issuance
costs
1,372
2,029
Non-cash lease expense
6,164
9,578
Impairment costs
—
113
Net gain on IRLCs, forward sales
commitments, and loans held for sale
(2,196
)
(4,565
)
Change in fair value of mortgage servicing
rights, net
(944
)
599
Gain on extinguishment of convertible
senior notes
(12,000
)
(62,353
)
Other
380
(1,794
)
Change in assets and liabilities:
Accounts receivable, net
(23,928
)
(14,069
)
Inventory
—
114,232
Prepaid expenses and other assets
2,100
8,868
Accounts payable
1,135
2,812
Accrued and other liabilities, deferred
tax liabilities, and payroll tax liabilities, noncurrent
35,360
(4,522
)
Lease liabilities
(8,116
)
(10,790
)
Origination of mortgage servicing
rights
(84
)
(579
)
Proceeds from sale of mortgage servicing
rights
30,503
738
Origination of loans held for sale
(1,989,240
)
(1,922,690
)
Proceeds from sale of loans originated as
held for sale
1,940,725
1,888,706
Net cash used in operating activities
(53,928
)
(11,115
)
Investing activities
Purchases of property and equipment
(6,795
)
(6,213
)
Purchases of investments
—
(76,866
)
Sales of investments
39,225
65,099
Maturities of investments
6,395
59,383
Net cash provided by investing
activities
38,825
41,403
Financing activities
Proceeds from the issuance of common stock
pursuant to employee equity plans
2,158
5,665
Tax payments related to net share
settlements on restricted stock units
(940
)
(11,096
)
Borrowings from warehouse credit
facilities
1,987,822
1,920,487
Repayments to warehouse credit
facilities
(1,937,227
)
(1,883,196
)
Principal payments under finance lease
obligations
(46
)
(53
)
Repurchases of convertible senior
notes
(106,953
)
(183,019
)
Repayment of term loan principal
(938
)
—
Payments of debt issuance costs
(2,203
)
—
Proceeds from term loan
125,000
—
Net cash provided by (used in) financing
activities
66,673
(151,212
)
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(2
)
(58
)
Net change in cash, cash equivalents, and
restricted cash
51,568
(120,982
)
Cash, cash equivalents, and restricted
cash:
Beginning of period
151,000
242,246
End of period
$
202,568
$
121,264
Redfin Corporation and
Subsidiaries
Supplemental Financial
Information and Business Metrics
(unaudited)
Three Months Ended
Jun. 30,
2024
Mar. 31,
2024
Dec. 31,
2023
Sep. 30,
2023
Jun. 30,
2023
Mar. 31,
2023
Dec. 31,
2022
Sep. 30,
2022
Monthly average visitors (in
thousands)
51,619
48,803
43,861
51,309
52,308
50,440
43,847
50,785
Real estate services transactions
Brokerage
14,178
10,039
10,152
13,075
13,716
10,301
12,743
18,245
Partner
3,395
2,691
3,186
4,351
3,952
3,187
2,742
3,507
Total
17,573
12,730
13,338
17,426
17,668
13,488
15,485
21,752
Real estate services revenue per
transaction
Brokerage
$
12,545
$
12,433
$
12,248
$
12,704
$
12,376
$
11,556
$
10,914
$
11,103
Partner
2,859
2,367
2,684
2,677
2,756
2,592
2,611
2,556
Aggregate
10,674
10,305
9,963
10,200
10,224
9,438
9,444
9,725
U.S. market share by units
0.77
%
0.77
%
0.72
%
0.78
%
0.75
%
0.79
%
0.76
%
0.80
%
Revenue from top-10 Redfin markets as a
percentage of real estate services revenue
56
%
55
%
55
%
56
%
55
%
53
%
57
%
58
%
Average number of lead agents
1,719
1,658
1,692
1,744
1,792
1,876
2,022
2,293
Mortgage originations by dollars (in
millions)
$
1,338
$
969
$
885
$
1,110
$
1,282
$
991
$
1,036
$
1,557
Mortgage originations by units (in
ones)
3,192
2,365
2,293
2,786
3,131
2,444
2,631
3,720
Redfin Corporation and
Subsidiaries
Supplemental Financial
Information
(unaudited, in
thousands)
Three Months Ended June 30,
2024
Real estate
services
Rentals
Mortgage
Other
Corporate
overhead
Total
(in thousands)
Revenue
$
187,569
$
50,927
$
40,179
$
16,528
$
—
$
295,203
Cost of revenue
133,863
11,630
32,528
7,596
—
185,617
Gross profit
53,706
39,297
7,651
8,932
—
109,586
Operating expenses
Technology and development
28,920
10,417
700
965
1,213
42,215
Marketing
23,855
15,749
648
8
—
40,260
General and administrative
19,140
20,242
6,519
910
7,894
54,705
Restructuring and reorganization
—
—
—
—
1,334
1,334
Total operating expenses
71,915
46,408
7,867
1,883
10,441
138,514
(Loss) income from continuing
operations
(18,209
)
(7,111
)
(216
)
7,049
(10,441
)
(28,928
)
Interest income, interest expense, income
tax expense, gain on extinguishment of convertible senior notes,
and other expense, net
14
(42
)
1
180
895
1,048
Net (loss) income from continuing
operations
$
(18,195
)
$
(7,153
)
$
(215
)
$
7,229
$
(9,546
)
$
(27,880
)
Three Months Ended June 30,
2024
Real estate
services
Rentals
Mortgage
Other
Corporate
overhead
Total
(in thousands)
Net (loss) income from continuing
operations
$
(18,195
)
$
(7,153
)
$
(215
)
$
7,229
$
(9,546
)
$
(27,880
)
Interest income(1)
(14
)
(51
)
(2,990
)
(180
)
(1,217
)
(4,452
)
Interest expense(2)
—
—
2,953
—
6,084
9,037
Income tax expense
—
38
—
—
521
559
Depreciation and amortization
3,116
4,972
920
242
207
9,457
Stock-based compensation(3)
11,525
3,125
476
600
2,505
18,231
Restructuring and reorganization(4)
—
—
—
—
1,334
1,334
Gain on extinguishment of convertible
senior notes
—
—
—
—
(6,314
)
(6,314
)
Adjusted EBITDA
$
(3,568
)
$
931
$
1,144
$
7,891
$
(6,426
)
$
(28
)
(1) Interest income includes $3.0 million
of interest income related to originated mortgage loans for the
three months ended June 30, 2024.
(2) Interest expense includes $3.0 million
of interest expense related to our warehouse credit facilities for
the three months ended June 30, 2024.
(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.
(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.
Three Months Ended June 30,
2023
Real estate
services
Rentals
Mortgage
Other
Corporate
overhead
Total
(in thousands)
Revenue(1)
$
180,641
$
45,356
$
38,426
$
11,133
$
—
$
275,556
Cost of revenue
124,447
10,427
34,266
6,226
—
175,366
Gross profit
56,194
34,929
4,160
4,907
—
100,190
Operating expenses
Technology and development
28,044
16,304
734
1,118
941
47,141
Marketing
16,004
15,938
1,054
16
21
33,033
General and administrative
20,961
25,305
6,724
1,044
7,731
61,765
Restructuring and reorganization
—
—
—
—
6,106
6,106
Total operating expenses
65,009
57,547
8,512
2,178
14,799
148,045
(Loss) income from continuing
operations
(8,815
)
(22,618
)
(4,352
)
2,729
(14,799
)
(47,855
)
Interest income, interest expense, income
tax expense, gain on extinguishment of convertible senior notes,
and other expense, net
—
28
(91
)
153
20,553
20,643
Net (loss) income from continuing
operations
$
(8,815
)
$
(22,590
)
$
(4,443
)
$
2,882
$
5,754
$
(27,212
)
(1) Included in revenue is $0.1 million
from providing services to our discontinued properties segment.
Three Months Ended June 30,
2023
Real estate
services
Rentals
Mortgage
Other
Corporate
overhead
Total
(in thousands)
Net (loss) income from continuing
operations
$
(8,815
)
$
(22,590
)
$
(4,443
)
$
2,882
$
5,754
$
(27,212
)
Interest income(1)
—
(77
)
(3,686
)
(153
)
(2,467
)
(6,383
)
Interest expense(2)
—
—
3,990
—
1,766
5,756
Income tax expense
—
43
83
—
107
233
Depreciation and amortization
5,264
10,235
994
307
329
17,129
Stock-based compensation(3)
12,297
3,709
823
561
131
17,521
Acquisition-related costs(4)
—
—
—
—
8
8
Restructuring and reorganization(5)
—
—
—
—
6,106
6,106
Gain on extinguishment of convertible
senior notes
—
—
—
—
(20,083
)
(20,083
)
Adjusted EBITDA
$
8,746
$
(8,680
)
$
(2,239
)
$
3,597
$
(8,349
)
$
(6,925
)
(1) Interest income includes $3.7 million
of interest income related to originated mortgage loans for the
three months ended June 30, 2023.
(2) Interest expense includes $4.0 million
of interest expense related to our warehouse credit facilities for
the three months ended June 30, 2023.
(3) Stock-based compensation consists of
expenses related to restricted stock units and our employee stock
purchase program. See Note 11 to our consolidated financial
statements for more information.
(4) Acquisition-related costs consist of
fees for external advisory, legal, and other professional services
incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization
expenses primarily consist of personnel-related costs associated
with employee terminations, furloughs, or retention due to the
restructuring and reorganization activities.
Six Months Ended June 30,
2024
Real estate
services
Rentals
Mortgage
Other
Corporate
overhead
Total
(in thousands)
Revenue
$
318,749
$
100,445
$
73,998
$
27,490
$
—
$
520,682
Cost of revenue
244,777
23,087
58,432
13,988
—
340,284
Gross profit
73,972
77,358
15,566
13,502
—
180,398
Operating expenses
Technology and development
57,427
25,929
1,356
1,797
2,135
88,644
Marketing
35,032
28,537
1,554
15
—
65,138
General and administrative
38,915
42,720
13,202
2,064
25,677
122,578
Restructuring and reorganization
—
—
—
—
2,223
2,223
Total operating expenses
131,374
97,186
16,112
3,876
30,035
278,583
(Loss) income from continuing
operations
(57,402
)
(19,828
)
(546
)
9,626
(30,035
)
(98,185
)
Interest income, interest expense, income
tax expense, gain on extinguishment of convertible senior notes,
and other expense, net
(32
)
(35
)
4
424
3,170
3,531
Net (loss) income from continuing
operations
$
(57,434
)
$
(19,863
)
$
(542
)
$
10,050
$
(26,865
)
$
(94,654
)
Six Months Ended June 30,
2024
Real estate
services
Rentals
Mortgage
Other
Corporate
overhead
Total
(in thousands)
Net (loss) income from continuing
operations
$
(57,434
)
$
(19,863
)
$
(542
)
$
10,050
$
(26,865
)
$
(94,654
)
Interest income(1)
(30
)
(122
)
(5,024
)
(424
)
(2,718
)
(8,318
)
Interest expense(2)
—
—
5,038
—
10,957
15,995
Income tax expense
—
98
—
—
289
387
Depreciation and amortization
6,300
14,811
1,884
440
420
23,855
Stock-based compensation(3)
22,913
6,463
752
1,100
4,412
35,640
Restructuring and reorganization(4)
—
—
—
—
2,223
2,223
Gain on extinguishment of convertible
senior notes
—
—
—
—
(12,000
)
(12,000
)
Legal contingencies(5)
—
—
—
—
9,250
9,250
Adjusted EBITDA
$
(28,251
)
$
1,387
$
2,108
$
11,166
$
(14,032
)
$
(27,622
)
(1) Interest income includes $5.0 million
of interest income related to originated mortgage loans for the six
months ended June 30, 2024.
(2) Interest expense includes $5.0 million
of interest expense related to our warehouse credit facilities for
the six months ended June 30, 2024.
(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.
(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 material contingent liabilities resulting from
litigation or other legal proceedings.
Six Months Ended June 30,
2023
Real estate
services
Rentals
Mortgage
Other
Corporate
overhead
Total
(in thousands)
Revenue(1)
$
307,937
$
88,226
$
74,915
$
18,561
$
—
$
489,639
Cost of revenue
235,941
20,192
63,479
11,699
—
331,311
Gross profit
71,996
68,034
11,436
6,862
—
158,328
Operating expenses
Technology and development
56,939
32,268
1,377
2,342
1,878
94,804
Marketing
41,064
30,264
2,034
26
48
73,436
General and administrative
40,579
51,607
13,653
2,097
23,268
131,204
Restructuring and reorganization
—
—
—
—
7,159
7,159
Total operating expenses
138,582
114,139
17,064
4,465
32,353
306,603
(Loss) income from continuing
operations
(66,586
)
(46,105
)
(5,628
)
2,397
(32,353
)
(148,275
)
Interest income, interest expense, income
tax expense, gain on extinguishment of convertible senior notes,
and other expense, net
—
73
(151
)
268
63,563
63,753
Net (loss) income from continuing
operations
$
(66,586
)
$
(46,032
)
$
(5,779
)
$
2,665
$
31,210
$
(84,522
)
(1) Included in revenue is $1.2 million
from providing services to our discontinued properties segment.
Six Months Ended June 30,
2023
Real estate
services
Rentals
Mortgage
Other
Corporate
overhead
Total
(in thousands)
Net (loss) income from continuing
operations
$
(66,586
)
$
(46,032
)
$
(5,779
)
$
2,665
$
31,210
$
(84,522
)
Interest income(1)
—
(157
)
(6,176
)
(268
)
(5,668
)
(12,269
)
Interest expense(2)
—
—
6,605
—
3,687
10,292
Income tax expense
—
86
151
—
406
643
Depreciation and amortization
9,696
20,387
1,982
523
1,432
34,020
Stock-based compensation(3)
21,890
7,325
2,081
1,122
3,930
36,348
Acquisition-related costs(4)
—
—
—
—
8
8
Restructuring and reorganization(5)
—
—
—
—
7,159
7,159
Impairment(6)
—
—
—
—
113
113
Gain on extinguishment of convertible
senior notes
—
—
—
—
(62,353
)
(62,353
)
Adjusted EBITDA
$
(35,000
)
$
(18,391
)
$
(1,136
)
$
4,042
$
(20,076
)
$
(70,561
)
(1) Interest income includes $6.2 million
of interest income related to originated mortgage loans for the six
months ended June 30, 2023.
(2) Interest expense includes $6.6 million
of interest expense related to our warehouse credit facilities for
the six months ended June 30, 2023.
(3) Stock-based compensation consists of
expenses related to restricted stock units and our employee stock
purchase program. See Note 11 to our consolidated financial
statements for more information.
(4) Acquisition-related costs consist of
fees for external advisory, legal, and other professional services
incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization
expenses primarily consist of personnel-related costs associated
with employee terminations, furloughs, or retention due to the
restructuring and reorganization activities.
(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 September
30, 2024
Low
High
Net loss
(30
)
(22
)
Net interest expense
6
6
Depreciation and amortization
9
9
Stock-based compensation
18
18
Adjusted EBITDA
4
12
Note: Figures may not sum due to
rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240806269083/en/
Investor Relations Meg Nunnally ir@redfin.com
Public Relations Mariam Sughayer press@redfin.com
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