Redfin Reports Fourth Quarter and Full Year 2023 Financial Results
Fourth Quarter 2023
Fourth quarter revenue was
Net loss was
Adjusted EBITDA loss was
Full Year 2023
Full year revenue from continuing operations was
Total net loss was
Adjusted EBITDA loss was
“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
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% ofU.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 to21% in the fourth quarter of 2022.1 -
Increased the mix of sales to loyalty customers to
36% in the fourth quarter of 2023, compared to32% in the fourth quarter of 2022. For the year, a record36% of sales came from loyalty customers. -
Expanded Redfin Next agent pay plan to
San Diego andOrange County following strong recruiting interest inLos Angeles andSan 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 theU.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
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 $223 million 0% and4% compared to the first quarter of 2023. Included within total revenue are real estate services revenue between$126 million $131 million $49 million $50 million $29 million $32 million $9 million $10 million -
Total net loss is expected to be between
$72 million $65 million $25 million $18 million $14 million $3 million $36 million $29 million
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
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 |
|
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 |
|
39,959 |
|
|
|
39,914 |
|
Stockholders’ equity |
|
|
|
||||
Common stock—par value |
|
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,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
||||||||||||||||
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 |
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
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
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
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
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) Interest expense includes |
(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
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
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 |
|
Three Months Ended December 31, 2022 |
||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
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 |
(2) Interest expense includes |
(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. |
|
Year ended December 31, 2023 |
|||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
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 |
|
Year ended December 31, 2023 |
||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
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 |
(2) Interest expense includes |
| (3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. |
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies. |
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities. |
(6) Impairment consists of impairment losses due to subleasing two of our operating leases. |
|
Year ended December 31, 2022 |
||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
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 |
|
Year ended December 31, 2022 |
||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
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 |
(2) Interest expense includes |
(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 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240227444269/en/
Investor Relations
Meg Nunnally, 206-576-8610
ir@redfin.com
Public Relations
Mariam Sughayer, 206-876-1322
press@redfin.com
Source: Redfin Corporation
