Financial News

Redfin Reports Fourth Quarter and Full Year 2023 Financial Results

Redfin Corporation (NASDAQ: RDFN) today announced results for its fourth quarter and full year ended December 31, 2023.

Fourth Quarter 2023

Fourth quarter revenue was $218.1 million, a decrease of 2% compared to the fourth quarter of 2022. Gross profit was $73.2 million, an increase of 32% year-over-year. Real estate services gross profit was $29.9 million, an increase of 14% year-over-year, and real estate services gross margin was 22.5%, compared to 18.0% in the fourth quarter of 2022.

Net loss was $22.9 million, compared to a net loss of $61.9 million in the fourth quarter of 2022. Net loss attributable to common stock was $23.1 million. Net loss per share attributable to common stock, diluted, was $0.20, compared to net loss per share, diluted, of $0.57 in the fourth quarter of 2022.

Adjusted EBITDA loss was $13.5 million, compared to adjusted EBITDA loss of $40.2 million in the fourth quarter of 2022.

Full Year 2023

Full year revenue from continuing operations was $976.7 million, a decrease of 11% year-over-year. Gross profit from continuing operations was $329.8 million, an increase of 7% year-over-year. Real estate services gross profit was $156.0 million, a decrease of 13% year-over-year, and real estate services gross margin was 25.2%, compared to 22.7% in 2022.

Total net loss was $130.0 million, compared to a net loss of $321.1 million in 2022. Total net loss attributable to common stock was $131.1 million. Net loss per share attributable to common stock, diluted, was $1.16, compared to a net loss per share, diluted, of $2.99 in 2022.

Adjusted EBITDA loss was $76.4 million, compared to adjusted EBITDA loss of $145.1 million in 2022.

“In a dreadful housing market, Redfin got more efficient in the fourth quarter, again improving gross margins and operating margins, even as we laid the foundation for meaningful long-term growth,” said Redfin CEO Glenn Kelman. “Our site continued to draw visitors from rivals. And new sales initiatives are driving breakthroughs on fronts where Redfin has been stymied for years. First, our all-variable pay plan is delivering significant revenue growth in major California cities. Second, a commission refund to customers who hire a Redfin agent after the first tour seems likely to increase home-buyer close-rates in its first four pilot markets. We expect these projects to pay off throughout 2024 and 2025.”

Fourth Quarter and Full Year Highlights

  • #1 brokerage website for 2023, with 5x the traffic of our next closest brokerage competitor. Redfin’s mobile apps and website reached approximately 49 million average monthly users in 2023, which was roughly flat compared to 2022.
  • Our agents and partners helped approximately 62,000 customers buy or sell a home in 2023 and Redfin’s market share was 0.76% of U.S. existing home sales, a change of -4 bps compared to 2022.
  • Achieved mortgage attach rate (excluding cash transactions) of 25% in the fourth quarter, compared to 21% in the fourth quarter of 2022.1
  • Increased the mix of sales to loyalty customers to 36% in the fourth quarter of 2023, compared to 32% in the fourth quarter of 2022. For the year, a record 36% of sales came from loyalty customers.
  • Expanded Redfin Next agent pay plan to San Diego and Orange County following strong recruiting interest in Los Angeles and San Francisco. To date, Redfin has signed more than 60 top producing agents to join the brokerage under the Redfin Next program.
  • Launched “Sign & Save” program for buyers who hire Redfin after their first tour, saving them thousands of dollars at closing. The program, which expanded to qualifying markets nationwide on February 1st, is expected to help Redfin agents win more business and close more sales.
  • Expanded listing coverage to a total of 99% of the U.S. population by adding 138 new MLSs and thousands of new construction listings.
  • Launched Redfin Redesign, which allows home searchers to change the appearance of Redfin and Bright MLS listing photos and envision the potential in for-sale homes.

(1) Attach rate reflects total closed loans for Redfin buy-side customers divided by Redfin buy-side transactions with a mortgage (excluding cash transactions) for the period. We previously reported only the inclusive attach rate (includes cash transactions in the denominator), which was 19% in the fourth quarter, compared to 17% in Q4 2022.

Business Outlook

The following forward-looking statements reflect Redfin's expectations as of February 27, 2024, and are subject to substantial uncertainty.

For the first quarter of 2024 we expect:

  • Total revenue between $214 million and $223 million, representing a year-over-year change between 0% and 4% compared to the first quarter of 2023. Included within total revenue are real estate services revenue between $126 million and $131 million, rentals revenue between $49 million and $50 million, mortgage revenue between $29 million and $32 million, and other revenue between $9 million and $10 million.
  • Total net loss is expected to be between $72 million and $65 million. This guidance includes approximately $25 million in total marketing expenses, $18 million in stock-based compensation, $14 million in depreciation and amortization, and $3 million in net interest expense. Adjusted EBITDA loss is expected to be between $36 million and $29 million. Furthermore, we expect to pay a quarterly dividend of 30,640 shares of common stock to our preferred stockholder.

Conference Call

Redfin will webcast a conference call to discuss the results at 1:30 p.m. Pacific Time today. The webcast will be open to the public at http://investors.redfin.com. The webcast will remain available on the investor relations website for at least three months following the conference call.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, including our future operating results, as described under Business Outlook. We believe our expectations related to these forward-looking statements are reasonable, but actual results may turn out to be materially different. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our annual report for the year ended December 31, 2023, which is available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com.

Redfin-F

Redfin Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share and per share amounts, unaudited)

 

 

December 31,

 

2023

 

2022

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

149,759

 

 

$

232,200

 

Restricted cash

 

1,241

 

 

 

2,406

 

Short-term investments

 

41,952

 

 

 

122,259

 

Accounts receivable, net of allowances for credit losses of $3,234 and $2,223

 

51,738

 

 

 

46,375

 

Loans held for sale

 

159,587

 

 

 

199,604

 

Prepaid expenses

 

33,296

 

 

 

34,006

 

Other current assets

 

7,472

 

 

 

7,449

 

Current assets of discontinued operations

 

 

 

 

132,159

 

Total current assets

 

445,045

 

 

 

776,458

 

Property and equipment, net

 

46,431

 

 

 

54,939

 

Right-of-use assets, net

 

31,763

 

 

 

40,889

 

Mortgage servicing rights, at fair value

 

32,171

 

 

 

36,261

 

Long-term investments

 

3,149

 

 

 

29,480

 

Goodwill

 

461,349

 

 

 

461,349

 

Intangible assets, net

 

123,284

 

 

 

162,272

 

Other assets, noncurrent

 

10,456

 

 

 

11,247

 

Noncurrent assets of discontinued operations

 

 

 

 

1,309

 

Total assets

$

1,153,648

 

 

$

1,574,204

 

Liabilities, mezzanine equity, and stockholders' equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

10,507

 

 

$

11,065

 

Accrued and other liabilities

 

90,360

 

 

 

106,763

 

Warehouse credit facilities

 

151,964

 

 

 

190,509

 

Convertible senior notes, net

 

 

 

 

23,431

 

Lease liabilities

 

15,609

 

 

 

18,560

 

Current liabilities of discontinued operations

 

 

 

 

4,311

 

Total current liabilities

 

268,440

 

 

 

354,639

 

Lease liabilities, noncurrent

 

29,084

 

 

 

36,906

 

Convertible senior notes, net, noncurrent

 

688,737

 

 

 

1,078,157

 

Term loan

 

124,416

 

 

 

 

Deferred tax liabilities

 

264

 

 

 

243

 

Noncurrent liabilities of discontinued operations

 

 

 

 

392

 

Total liabilities

 

1,110,941

 

 

 

1,470,337

 

Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 and 40,000 shares issued and outstanding at December 31, 2023 and 2022, respectively

 

39,959

 

 

 

39,914

 

Stockholders’ equity

 

 

 

Common stock—par value $0.001 per share; 500,000,000 shares authorized; 117,372,171 and 109,696,178 shares issued and outstanding at December 31, 2023 and 2022, respectively

 

117

 

 

 

110

 

Additional paid-in capital

 

826,146

 

 

 

757,951

 

Accumulated other comprehensive loss

 

(182

)

 

 

(801

)

Accumulated deficit

 

(823,333

)

 

 

(693,307

)

Total stockholders’ equity

 

2,748

 

 

 

63,953

 

Total liabilities, mezzanine equity, and stockholders’ equity

$

1,153,648

 

 

$

1,574,204

 

Redfin Corporation and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands, except share and per share amounts, unaudited)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

Revenue

 

218,077

 

 

 

221,935

 

 

 

976,672

 

 

 

1,099,574

 

Cost of revenue(1)

 

144,926

 

 

 

166,368

 

 

 

646,853

 

 

 

790,455

 

Gross profit

 

73,151

 

 

 

55,567

 

 

 

329,819

 

 

 

309,119

 

Operating expenses

 

 

 

 

 

 

 

Technology and development(1)

 

44,098

 

 

 

43,247

 

 

 

183,294

 

 

 

178,924

 

Marketing(1)

 

20,332

 

 

 

23,956

 

 

 

117,863

 

 

 

155,309

 

General and administrative(1)

 

52,206

 

 

 

60,751

 

 

 

238,790

 

 

 

243,390

 

Restructuring and reorganization

 

768

 

 

 

13,954

 

 

 

7,927

 

 

 

32,353

 

Total operating expenses

 

117,404

 

 

 

141,908

 

 

 

547,874

 

 

 

609,976

 

Loss from continuing operations

 

(44,253

)

 

 

(86,341

)

 

 

(218,055

)

 

 

(300,857

)

Interest income

 

2,362

 

 

 

4,691

 

 

 

10,532

 

 

 

6,639

 

Interest expense

 

(4,233

)

 

 

(2,238

)

 

 

(9,524

)

 

 

(8,886

)

Income tax (expense) benefit

 

(97

)

 

 

309

 

 

 

(979

)

 

 

(116

)

Gain on extinguishment of convertible senior notes

 

25,171

 

 

 

57,193

 

 

 

94,019

 

 

 

57,193

 

Other expense, net

 

(1,848

)

 

 

(693

)

 

 

(2,385

)

 

 

(3,770

)

Net loss from continuing operations

 

(22,898

)

 

 

(27,079

)

 

 

(126,392

)

 

 

(249,797

)

Net loss from discontinued operations

 

 

 

 

(34,867

)

 

 

(3,634

)

 

 

(71,346

)

Net loss

$

(22,898

)

 

$

(61,946

)

 

$

(130,026

)

 

$

(321,143

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends on convertible preferred stock

 

(216

)

 

 

(144

)

 

 

(1,074

)

 

 

(1,560

)

 

 

 

 

 

 

 

 

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

$

(23,114

)

 

$

(27,223

)

 

$

(127,466

)

 

$

(251,357

)

Net loss attributable to common stock—basic and diluted

$

(23,114

)

 

$

(62,090

)

 

$

(131,100

)

 

$

(322,703

)

 

 

 

 

 

 

 

 

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

$

(0.20

)

 

$

(0.25

)

 

$

(1.13

)

 

$

(2.33

)

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

$

(0.20

)

 

$

(0.57

)

 

$

(1.16

)

 

$

(2.99

)

 

 

 

 

 

 

 

 

Weighted average shares of common stock—basic and diluted

 

116,154,001

 

 

 

108,997,415

 

 

 

113,152,752

 

 

 

107,927,464

 

 

 

 

 

 

 

 

 

Net loss

$

(22,898

)

 

$

(61,946

)

 

$

(130,026

)

 

$

(321,143

)

Other comprehensive income

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

2

 

 

 

29

 

 

 

(71

)

 

 

94

 

Unrealized gain (loss) on available-for-sale securities

 

73

 

 

 

(279

)

 

 

690

 

 

 

533

 

Comprehensive loss

$

(22,823

)

 

$

(62,196

)

 

$

(129,407

)

 

$

(320,516

)

(1) Includes stock-based compensation as follows:

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

Cost of revenue

$

2,741

 

 

$

4,367

 

 

$

12,914

 

 

$

15,137

 

Technology and development

 

8,352

 

 

6,135

 

 

33,111

 

 

26,365

Marketing

 

1,312

 

 

 

1,052

 

 

 

5,148

 

 

 

3,991

 

General and administrative

 

3,148

 

 

 

4,504

 

 

 

19,528

 

 

 

17,526

 

Total

$

15,553

 

 

$

16,058

 

 

$

70,701

 

 

$

63,019

 

Redfin Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

 

Year Ended December 31,

 

2023

 

2022

Operating Activities

 

 

 

Net loss

$

(130,026

)

 

$

(321,143

)

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

 

 

 

Depreciation and amortization

 

62,851

 

 

 

64,907

 

Stock-based compensation

 

70,935

 

 

 

68,257

 

Amortization of debt discount and issuance costs

 

3,620

 

 

 

6,137

 

Non-cash lease expense

 

16,269

 

 

 

16,234

 

Impairment costs

 

1,948

 

 

 

1,136

 

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

 

(1,992

)

 

 

14,427

 

Change in fair value of mortgage servicing rights, net

 

3,198

 

 

 

(801

)

Gain on extinguishment of convertible senior notes

 

(94,019

)

 

 

(57,193

)

Other

 

(2,113

)

 

 

3,791

 

Change in assets and liabilities:

 

 

 

Accounts receivable, net

 

3,286

 

 

 

24,411

 

Inventory

 

114,232

 

 

 

243,948

 

Prepaid expenses and other assets

 

6,004

 

 

 

(5,904

)

Accounts payable

 

(1,323

)

 

 

(2,472

)

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

 

(19,085

)

 

 

(46,454

)

Lease liabilities

 

(18,998

)

 

 

(18,452

)

Origination of mortgage servicing rights

 

(565

)

 

 

(3,140

)

Proceeds from sale of mortgage servicing rights

 

1,457

 

 

 

1,662

 

Origination of loans held for sale

 

(3,525,987

)

 

 

(3,949,442

)

Proceeds from sale of loans originated as held for sale

 

3,567,066

 

 

 

4,000,582

 

Net cash provided by operating activities

 

56,758

 

 

 

40,491

 

Investing activities

 

 

 

Purchases of property and equipment

 

(12,056

)

 

 

(21,531

)

Purchases of investments

 

(76,866

)

 

 

(182,466

)

Sales of investments

 

124,681

 

 

 

17,545

 

Maturities of investments

 

61,723

 

 

 

99,455

 

Cash paid for acquisition, net of cash, cash equivalents, and restricted cash acquired

 

 

 

 

(97,341

)

Net cash provided by (used in) investing activities

 

97,482

 

 

 

(184,338

)

Financing activities

 

 

 

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

 

9,613

 

 

 

11,528

 

Tax payments related to net share settlements on restricted stock units

 

(16,348

)

 

 

(7,498

)

Borrowings from warehouse credit facilities

 

3,532,119

 

 

 

3,938,265

 

Repayments to warehouse credit facilities

 

(3,570,664

)

 

 

(3,989,407

)

Borrowings from secured revolving credit facility

 

 

 

 

565,334

 

Repayments to secured revolving credit facility

 

 

 

 

(765,114

)

Cash paid for secured revolving credit facility issuance costs

 

 

 

 

(733

)

Principal payments under finance lease obligations

 

(89

)

 

 

(855

)

Repurchases of convertible senior notes

 

(241,808

)

 

 

(83,614

)

Repayments of convertible senior notes

 

(23,512

)

 

 

 

Repayment of term loan principal

 

(313

)

 

 

 

Extinguishment of convertible senior notes associated with closing of term loan

 

(57,075

)

 

 

 

Payments of debt issuance costs

 

(2,338

)

 

 

 

Proceeds from term loan

 

125,000

 

 

 

 

Net cash used in financing activities

 

(245,415

)

 

 

(332,094

)

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

 

(71

)

 

 

(94

)

Net change in cash, cash equivalents, and restricted cash

 

(91,246

)

 

 

(476,035

)

Cash, cash equivalents, and restricted cash:

 

 

 

Beginning of period

 

242,246

 

 

 

718,281

 

End of period

$

151,000

 

 

$

242,246

 

Redfin Corporation and Subsidiaries

Supplemental Financial Information and Business Metrics

(unaudited)

 

 

Three Months Ended

 

Dec. 31,

2023

 

Sep. 30,

2023

 

Jun. 30,

2023

 

Mar. 31,

2023

 

Dec. 31,

2022

 

Sep. 30,

2022

 

Jun. 30,

2022

 

Mar. 31,

2022

Monthly average visitors (in thousands)

 

43,861

 

 

 

51,309

 

 

 

52,308

 

 

 

50,440

 

 

 

43,847

 

 

 

50,785

 

 

 

52,698

 

 

 

51,287

 

Real estate services transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage

 

10,152

 

 

 

13,075

 

 

 

13,716

 

 

 

10,301

 

 

 

12,743

 

 

 

18,245

 

 

 

20,565

 

 

 

15,001

 

Partner

 

3,186

 

 

 

4,351

 

 

 

3,952

 

 

 

3,187

 

 

 

2,742

 

 

 

3,507

 

 

 

3,983

 

 

 

3,417

 

Total

 

13,338

 

 

 

17,426

 

 

 

17,668

 

 

 

13,488

 

 

 

15,485

 

 

 

21,752

 

 

 

24,548

 

 

 

18,418

 

Real estate services revenue per transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage

$

12,248

 

 

$

12,704

 

 

$

12,376

 

 

$

11,556

 

 

$

10,914

 

 

$

11,103

 

 

$

11,692

 

 

$

11,191

 

Partner

 

2,684

 

 

 

2,677

 

 

 

2,756

 

 

 

2,592

 

 

 

2,611

 

 

 

2,556

 

 

 

2,851

 

 

 

2,814

 

Aggregate

 

9,963

 

 

 

10,200

 

 

 

10,224

 

 

 

9,438

 

 

 

9,444

 

 

 

9,725

 

 

 

10,258

 

 

 

9,637

 

U.S. market share by units(1)

 

0.72

%

 

 

0.78

%

 

 

0.75

%

 

 

0.79

%

 

 

0.76

%

 

 

0.80

%

 

 

0.83

%

 

 

0.79

%

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

 

55

%

 

 

56

%

 

 

55

%

 

 

53

%

 

 

57

%

 

 

58

%

 

 

59

%

 

 

57

%

Average number of lead agents

 

1,692

 

 

 

1,744

 

 

 

1,792

 

 

 

1,876

 

 

 

2,022

 

 

 

2,293

 

 

 

2,640

 

 

 

2,750

 

Mortgage originations by dollars (in millions)

$

885

 

 

$

1,110

 

 

$

1,282

 

 

$

991

 

 

$

1,036

 

 

$

1,557

 

 

$

1,565

 

 

$

159

 

Mortgage originations by units (in ones)

 

2,293

 

 

 

2,786

 

 

 

3,131

 

 

 

2,444

 

 

 

2,631

 

 

 

3,720

 

 

 

3,860

 

 

 

414

 

 

Year Ended December 31,

 

2023

 

2022

Monthly average visitors (in thousands)

 

49,479

 

 

 

49,654

 

Real estate services transactions

 

 

 

Brokerage

 

47,244

 

 

 

66,554

 

Partner

 

14,676

 

 

 

13,649

 

Total

 

61,920

 

 

 

80,203

 

Real estate services revenue per transaction

 

 

 

Brokerage

$

12,260

 

 

$

11,269

 

Partner

 

2,681

 

 

 

2,718

 

Aggregate

 

9,990

 

 

 

9,814

 

U.S. market share by units(1)

 

0.76

%

 

 

0.80

%

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

 

55

%

 

 

58

%

Average number of lead agents

 

1,776

 

 

 

2,426

 

Mortgage originations by dollars (in millions)

$

4,268

 

 

$

4,317

 

Mortgage originations by units (in ones)

 

10,654

 

 

 

10,625

 

(1) Prior to the second quarter of 2022, we reported our U.S. market share based on the aggregate home value of our real estate services transactions, relative to the aggregate value of all U.S. home sales, which we computed based on the mean sale price of U.S. homes provided by the National Association of REALTORS® (“NAR”). Beginning in the second quarter of 2022, NAR (1) revised its methodology of computing the mean sale price, (2) restated its previously reported mean sale price beginning from January 2020 (and indicated that previously reported mean sale price prior to January 2020 is not comparable), and (3) discontinued publication of the mean sale price as part of its primary data set. Due to these changes, as of the second quarter of 2022, we report our U.S. market share based on the number of homes sold, rather than the dollar value of homes sold. Our market share by number of homes sold has historically been lower than our market share by dollar value of homes sold. We also stopped reporting the aggregate home value of our real estate services transactions.

Redfin Corporation and Subsidiaries

Segment Reporting and Reconciliation of Adjusted EBITDA to Net Income (Loss)

(unaudited, in thousands)

 

 

Three Months Ended December 31, 2023

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

Overhead

 

Total

Revenue

$

132,890

 

 

$

49,176

 

 

$

26,270

 

 

$

9,741

 

$

 

 

$

218,077

 

Cost of revenue

 

103,000

 

 

 

11,070

 

 

 

25,070

 

 

 

5,786

 

 

 

 

 

144,926

 

Gross profit

 

29,890

 

 

 

38,106

 

 

 

1,200

 

 

 

3,955

 

 

 

 

 

73,151

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Technology and development

 

25,551

 

 

 

15,853

 

 

 

694

 

 

 

1,029

 

 

971

 

 

 

44,098

 

Marketing

 

7,897

 

 

 

11,443

 

 

 

942

 

 

 

14

 

 

36

 

 

 

20,332

 

General and administrative

 

17,854

 

 

 

20,807

 

 

 

4,689

 

 

 

968

 

 

7,888

 

 

 

52,206

 

Restructuring and reorganization

 

 

 

 

503

 

 

 

 

 

 

 

 

265

 

 

 

768

 

Total operating expenses

 

51,302

 

 

 

48,606

 

 

 

6,325

 

 

 

2,011

 

 

9,160

 

 

 

117,404

 

(Loss) income from continuing operations

 

(21,412

)

 

 

(10,500

)

 

 

(5,125

)

 

 

1,944

 

 

(9,160

)

 

 

(44,253

)

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

 

18

 

 

 

100

 

 

 

(168

)

 

 

237

 

 

21,168

 

 

 

21,355

 

Net (loss) income from continuing operations

$

(21,394

)

 

$

(10,400

)

 

$

(5,293

)

 

$

2,181

 

$

12,008

 

 

$

(22,898

)

 

Three Months Ended December 31, 2023

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

Overhead

 

Total

Net (loss) income from continuing operations

$

(21,394

)

 

$

(10,400

)

 

$

(5,293

)

 

$

2,181

 

 

$

12,008

 

 

$

(22,898

)

Interest income(1)

 

(18

)

 

 

(100

)

 

 

(2,176

)

 

 

(237

)

 

 

(2,007

)

 

 

(4,538

)

Interest expense(2)

 

 

 

 

 

 

 

2,318

 

 

 

 

 

 

4,132

 

 

 

6,450

 

Income tax expense

 

 

 

 

 

 

 

68

 

 

 

 

 

 

29

 

 

 

97

 

Depreciation and amortization

 

3,201

 

 

 

9,808

 

 

 

935

 

 

 

246

 

 

 

255

 

 

 

14,445

 

Stock-based compensation(3)

 

10,961

 

 

 

3,073

 

 

 

(1,088

)

 

 

550

 

 

 

2,057

 

 

 

15,553

 

Restructuring and reorganization(4)

 

 

 

 

503

 

 

 

 

 

 

 

 

 

265

 

 

 

768

 

Impairment(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

1,835

 

 

 

1,835

 

Gain on extinguishment of convertible senior notes

 

 

 

 

 

 

 

 

 

 

 

 

 

(25,171

)

 

 

(25,171

)

Adjusted EBITDA

$

(7,250

)

 

$

2,884

 

 

$

(5,236

)

 

$

2,740

 

 

$

(6,597

)

 

$

(13,459

)

(1) Interest income includes $2.2 million of interest income related to originated mortgage loans for the three months ended December 31, 2023.

(2) Interest expense includes $2.2 million of interest expense related to our warehouse credit facilities for the three months ended December 31, 2023.

(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.

(4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June and October 2022 workforce reductions.

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

 

Three Months Ended December 31, 2022

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

Overhead

 

Total

Revenue(1)

$

146,242

 

 

$

40,931

 

 

$

28,420

 

 

$

6,342

 

 

$

 

 

$

221,935

 

Cost of revenue

 

119,913

 

 

 

9,647

 

 

 

30,936

 

 

 

5,872

 

 

 

 

 

 

166,368

 

Gross profit

 

26,329

 

 

 

31,284

 

 

 

(2,516

)

 

 

470

 

 

 

 

 

 

55,567

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Technology and development

 

25,052

 

 

 

15,360

 

 

 

798

 

 

 

616

 

 

 

1,421

 

 

 

43,247

 

Marketing

 

8,293

 

 

 

14,258

 

 

 

1,364

 

 

 

26

 

 

 

15

 

 

 

23,956

 

General and administrative

 

20,594

 

 

 

23,990

 

 

 

7,633

 

 

 

960

 

 

 

7,574

 

 

 

60,751

 

Restructuring and reorganization

 

 

 

 

 

 

 

 

 

 

 

 

 

13,954

 

 

 

13,954

 

Total operating expenses

 

53,939

 

 

 

53,608

 

 

 

9,795

 

 

 

1,602

 

 

 

22,964

 

 

 

141,908

 

(Loss) income from continuing operations

 

(27,610

)

 

 

(22,324

)

 

 

(12,311

)

 

 

(1,132

)

 

 

(22,964

)

 

 

(86,341

)

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

 

 

 

 

291

 

 

 

50

 

 

 

88

 

 

 

58,833

 

 

 

59,262

 

Net (loss) income from continuing operations

$

(27,610

)

 

$

(22,033

)

 

$

(12,261

)

 

$

(1,044

)

 

$

35,869

 

 

$

(27,079

)

(1) Included in revenue is $2.9 million from providing services to our discontinued properties segment.

 

Three Months Ended December 31, 2022

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

Overhead

 

Total

Net (loss) income from continuing operations

$

(27,610

)

 

$

(22,033

)

 

$

(12,261

)

 

$

(1,044

)

 

$

35,869

 

 

$

(27,079

)

Interest income(1)

 

 

 

 

(23

)

 

 

(3,203

)

 

 

(88

)

 

 

(4,571

)

 

 

(7,885

)

Interest expense(2)

 

 

 

 

 

 

 

2,981

 

 

 

 

 

 

2,136

 

 

 

5,117

 

Income tax expense

 

 

 

 

(288

)

 

 

(174

)

 

 

 

 

 

153

 

 

 

(309

)

Depreciation and amortization

 

4,569

 

 

 

10,133

 

 

 

1,013

 

 

 

274

 

 

 

953

 

 

 

16,942

 

Stock-based compensation(3)

 

7,008

 

 

 

2,709

 

 

 

1,542

 

 

 

345

 

 

 

4,454

 

 

 

16,058

 

Restructuring and reorganization(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

13,954

 

 

 

13,954

 

Impairment(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

224

 

 

 

224

 

Gain on extinguishment of convertible senior notes

 

 

 

 

 

 

 

 

 

 

 

 

 

(57,193

)

 

 

(57,193

)

Adjusted EBITDA

$

(16,033

)

 

$

(9,502

)

 

$

(10,102

)

 

$

(513

)

 

$

(4,021

)

 

$

(40,171

)

(1) Interest income includes $3.2 million of interest income related to originated mortgage loans for the three months ended December 31, 2022.

(2) Interest expense includes $2.9 million of interest expense related to our warehouse credit facilities for the three months ended December 31, 2022.

(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.

(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

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

overhead

 

Total

Revenue(1)

$

618,577

 

 

$

184,812

 

 

$

134,108

 

 

$

39,175

 

$

 

 

$

976,672

 

Cost of revenue

 

462,625

 

 

 

42,086

 

 

 

118,178

 

 

 

23,964

 

 

 

 

 

646,853

 

Gross profit

 

155,952

 

 

 

142,726

 

 

 

15,930

 

 

 

15,211

 

 

 

 

 

329,819

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Technology and development

 

108,201

 

 

 

63,934

 

 

 

2,871

 

 

 

4,504

 

 

3,784

 

 

 

183,294

 

Marketing

 

59,746

 

 

 

53,952

 

 

 

4,064

 

 

 

60

 

 

41

 

 

 

117,863

 

General and administrative

 

76,851

 

 

 

94,252

 

 

 

25,012

 

 

 

4,017

 

 

38,658

 

 

 

238,790

 

Restructuring and reorganization

 

 

 

 

503

 

 

 

 

 

 

 

 

7,424

 

 

 

7,927

 

Total operating expenses

 

244,798

 

 

 

212,641

 

 

 

31,947

 

 

 

8,581

 

 

49,907

 

 

 

547,874

 

(Loss) income from continuing operations

 

(88,846

)

 

 

(69,915

)

 

 

(16,017

)

 

 

6,630

 

 

(49,907

)

 

 

(218,055

)

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

 

59

 

 

 

215

 

 

 

(392

)

 

 

712

 

 

91,069

 

 

 

91,663

 

Net (loss) income from continuing operations

$

(88,787

)

 

$

(69,700

)

 

$

(16,409

)

 

$

7,342

 

$

41,162

 

 

$

(126,392

)

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

 

Year ended December 31, 2023

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

overhead

 

Total

Net (loss) income from continuing operations

$

(88,787

)

 

$

(69,700

)

 

$

(16,409

)

 

$

7,342

 

 

$

41,162

 

 

$

(126,392

)

Interest income(1)

 

(59

)

 

 

(338

)

 

 

(11,238

)

 

 

(712

)

 

 

(9,407

)

 

 

(21,754

)

Interest expense(2)

 

 

 

 

 

 

 

12,055

 

 

 

 

 

 

9,417

 

 

 

21,472

 

Income tax expense

 

 

 

 

123

 

 

 

289

 

 

 

 

 

 

567

 

 

 

979

 

Depreciation and amortization

 

16,020

 

 

 

39,876

 

 

 

3,864

 

 

 

1,002

 

 

 

2,000

 

 

 

62,762

 

Stock-based compensation(3)

 

44,002

 

 

 

14,653

 

 

 

1,466

 

 

 

2,246

 

 

 

8,334

 

 

 

70,701

 

Acquisition-related costs(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

 

 

8

 

Restructuring and reorganization(5)

 

 

 

 

503

 

 

 

 

 

 

 

 

 

7,424

 

 

 

7,927

 

Impairment(6)

 

 

 

 

 

 

 

 

 

 

 

 

 

1,948

 

 

 

1,948

 

Gain on extinguishment of convertible senior notes

 

 

 

 

 

 

 

 

 

 

 

 

 

(94,019

)

 

 

(94,019

)

Adjusted EBITDA

$

(28,824

)

 

$

(14,883

)

 

$

(9,973

)

 

$

9,878

 

 

$

(32,566

)

 

$

(76,368

)

(1) Interest income includes $11.2 million of interest income related to originated mortgage loans for the year ended December 31, 2023.

(2) Interest expense includes $11.9 million of interest expense related to our warehouse credit facilities for the year ended December 31, 2023.

(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.

(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

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

overhead

 

Total

Revenue(1)

$

787,076

 

 

$

155,910

 

 

$

132,904

 

 

$

23,684

 

 

$

 

 

$

1,099,574

 

Cost of revenue

 

608,027

 

 

 

33,416

 

 

 

126,552

 

 

 

22,460

 

 

 

 

 

 

790,455

 

Gross profit

 

179,049

 

 

 

122,494

 

 

 

6,352

 

 

 

1,224

 

 

 

 

 

 

309,119

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Technology and development

 

105,196

 

 

 

59,899

 

 

 

6,034

 

 

 

3,591

 

 

 

4,204

 

 

 

178,924

 

Marketing

 

98,673

 

 

 

51,064

 

 

 

4,889

 

 

 

199

 

 

 

484

 

 

 

155,309

 

General and administrative

 

88,171

 

 

 

92,728

 

 

 

25,680

 

 

 

3,307

 

 

 

33,504

 

 

 

243,390

 

Restructuring and reorganization

 

 

 

 

 

 

 

 

 

 

 

 

 

32,353

 

 

 

32,353

 

Total operating expenses

 

292,040

 

 

 

203,691

 

 

 

36,603

 

 

 

7,097

 

 

 

70,545

 

 

 

609,976

 

Loss from continuing operations

 

(112,991

)

 

 

(81,197

)

 

 

(30,251

)

 

 

(5,873

)

 

 

(70,545

)

 

 

(300,857

)

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

 

(123

)

 

 

1,389

 

 

 

(114

)

 

 

140

 

 

 

49,768

 

 

 

51,060

 

Net loss from continuing operations

$

(113,114

)

 

$

(79,808

)

 

$

(30,365

)

 

$

(5,733

)

 

$

(20,777

)

 

$

(249,797

)

(1) Included in revenue is $17.8 million from providing services to our discontinued properties segment.

 

Year ended December 31, 2022

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

overhead

 

Total

Net loss from continuing operations

$

(113,114

)

 

$

(79,808

)

 

$

(30,365

)

 

$

(5,733

)

 

$

(20,777

)

 

$

(249,797

)

Interest income(1)

 

 

 

 

(24

)

 

 

(10,499

)

 

 

(143

)

 

 

(6,447

)

 

 

(17,113

)

Interest expense(2)

 

 

 

 

 

 

 

8,580

 

 

 

 

 

 

8,778

 

 

 

17,358

 

Income tax expense

 

 

 

 

(1,077

)

 

 

 

 

 

 

 

 

1,193

 

 

 

116

 

Depreciation and amortization

 

17,526

 

 

 

38,683

 

 

 

3,438

 

 

 

1,089

 

 

 

1,836

 

 

 

62,572

 

Stock-based compensation(3)

 

36,652

 

 

 

11,319

 

 

 

4,132

 

 

 

1,496

 

 

 

9,420

 

 

 

63,019

 

Acquisition-related costs(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

2,437

 

 

 

2,437

 

Restructuring and reorganization(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

32,353

 

 

 

32,353

 

Impairment(6)

 

 

 

 

 

 

 

 

 

 

 

 

 

1,136

 

 

 

1,136

 

Gain on extinguishment of convertible senior notes

 

 

 

 

 

 

 

 

 

 

 

 

 

(57,193

)

 

 

(57,193

)

Adjusted EBITDA

$

(58,936

)

 

$

(30,907

)

 

$

(24,714

)

 

$

(3,291

)

 

$

(27,264

)

 

$

(145,112

)

(1) Interest income includes $10.5 million of interest income related to originated mortgage loans for the year ended December 31, 2022.

(2) Interest expense includes $8.5 million of interest expense related to our warehouse credit facilities for the year ended December 31, 2022.

(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.

(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June and October 2022 workforce reductions.

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

Redfin Corporation and Subsidiaries

Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance

(unaudited, in millions)

 

 

Three Months Ended March 31, 2024

 

Low

 

High

Net loss

$

(72

)

 

$

(65

)

Net interest expense

 

3

 

 

 

3

 

Depreciation and amortization

 

14

 

 

 

14

 

Stock-based compensation

 

18

 

 

 

18

 

Adjusted EBITDA

$

(36

)

 

$

(29

)

 

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