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
)
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
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