Redfin Reports Second Quarter 2022 Financial Results

Rhea-AI Summary

Redfin Corporation (NASDAQ: RDFN) reported its Q2 2022 results, revealing a revenue increase of 29% year-over-year to $606.9 million. However, gross profit declined by 6% to $118.0 million, with real estate services gross profit down 16%. The net loss worsened to $78.1 million from $27.9 million in Q2 2021, with a diluted loss per share of $0.73. Despite challenges in the housing market, Redfin achieved a market share of 0.82% in existing home sales and saw a 9% rise in monthly users. Notable progress was made in loyalty and rental services, marking a strategic adaptation to market conditions.

Positive

• Revenue increased by 29% year-over-year to $606.9 million.
• Market share in U.S. existing home sales rose to 0.82%, up 5 basis points from Q2 2021.
• Monthly users on mobile apps and website reached nearly 53 million, a 9% increase.
• Relaunched rentals business achieved its first revenue gain since 2017.
• Title attach rates more than doubled year-over-year.

Negative

• Gross profit decreased by 6% year-over-year to $118.0 million.
• Real estate services gross profit fell by 16%, with a gross margin decline from 35% to 29%.
• Net loss increased to $78.1 million, up from $27.9 million in Q2 2021.
• Adjusted EBITDA loss was $28.6 million, a significant decline from adjusted EBITDA income of $2.8 million in Q2 2021.

SEATTLE--(BUSINESS WIRE)-- Redfin Corporation (NASDAQ: RDFN) today announced results for its second quarter ended June 30, 2022.

Second Quarter 2022

Second quarter revenue was $606.9 million, an increase of 29% compared to the second quarter of 2021. Gross profit was $118.0 million, a decrease of 6% year-over-year. Real estate services gross profit was $74.1 million, a decrease of 16% year-over-year, and real estate services gross margin was 29%, compared to 35% in the second quarter of 2021.

Net loss was $78.1 million, compared to a net loss of $27.9 million in the second quarter of 2021. Net loss attributable to common stock was $78.5 million. Net loss per share attributable to common stock, diluted, was $0.73, compared to net loss per share, diluted, of $0.29 in the second quarter of 2021.

Adjusted EBITDA loss was $28.6 million, compared to adjusted EBITDA income of $2.8 million in the second quarter of 2021.

“The housing market took a turn for the worse in the second quarter,” said Redfin CEO Glenn Kelman. “But I have never been more proud of how this company has responded: we cut costs, grew traffic, accelerated share gains and loyalty sales, lowered voluntary attrition and, for the first time since April 2020, improved the rate at which people buying homes stuck with a Redfin agent. Our rentals business recorded its first quarter-over-quarter revenue gain since 2017, and re-launched itself across every platform as Rent. Best of all, the rate at which Redfin homebuyers got a Redfin mortgage hit 15% in July, a near doubling of the all-time high before 2022. For the quarter, title attach rates more than doubled year over year. There will be more market ups and downs in the road ahead, but our whole engine to drive traffic, brokerage share, customer value and monetization is running more efficiently than ever.”

Second Quarter Highlights

• Reached market share of 0.82% of U.S. existing home sales by units in the second quarter of 2022, an increase of 5 basis points from the second quarter of 2021.⁽¹⁾
• Redfin’s mobile apps and website reached nearly 53 million average monthly users in the second quarter, an increase of 9% compared to the second quarter of 2021.
• Expanded listing coverage from 91% to 94% of the U.S. population, adding 52 new MLSs.
• Made significant progress with the integration of Bay Equity, ending the second quarter with attach rates of 11% for the month of June, up from an attach rate of 6% in March.
• Improved customer retention, with loyalty mix at 35% in the second quarter, up from 33% in the prior year.
• Relaunched our rentals business under a new brand, Rent., with a newly redesigned consumer app experience, and updated solutions website.
• Delivered improved software for customers, agents, partners and renovations staff including:
  • Added internet provider and speed data to U.S. home listings, making our most-requested feature available to potential homebuyers.
  • Released Mobile Agent Tools in the Apple App Store, making it easier for agents to have the latest and greatest version of our software while on the go.

Business Outlook

The following forward-looking statements reflect Redfin's expectations as of August 4, 2022, and are subject to substantial uncertainty.

For the third quarter of 2022 we expect:

• Total revenue between $590 million and $627 million, representing a year-over-year growth between 9% and 16% compared to the third quarter of 2021. Included within total revenue are real estate services segment revenue between $200 million and $208 million, properties segment revenue between $305 million and $330 million, rentals revenue between $37 million and $38 million and mortgage revenue between $45 million and $48 million.
• Total net loss is expected to be between $87 million and $79 million, compared to net loss of $19 million in the third quarter of 2021. This guidance includes approximately $37 million in total marketing expenses, $19 million of stock-based compensation, $16 million of depreciation and amortization, and $5 million of net interest expense. Adjusted EBITDA loss is expected to be between $47 million and $39 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.

⁽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, we are now reporting 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.

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, 2021, as supplemented by our quarterly report for the quarter ended June 30, 2022, both of which are available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.

Non-GAAP Financial Measure

To supplement our consolidated financial statements that are prepared and presented in accordance with GAAP, we also compute and present adjusted EBITDA, which is a non-GAAP financial measure. We believe adjusted EBITDA is useful for investors because it enhances period-to-period comparability of our financial statements on a consistent basis and provides investors with useful insight into the underlying trends of the business. The presentation of this financial measure is not intended to be considered in isolation or as a substitute of, or superior to, our financial information prepared and presented in accordance with GAAP. Our calculation of adjusted EBITDA may be different from adjusted EBITDA or similar non-GAAP financial measures used by other companies, limiting its usefulness for comparison purposes. Our adjusted EBITDA, on a consolidated basis and for each reportable segment, for the three months ended June 30, 2022 and 2021 is presented below, along with a reconciliation of adjusted EBITDA to net loss. The reconciliation of adjusted EBITDA to net loss for the three months ended September 30, 2022 is also below.

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.

Redfin-F

Redfin Corporation and Subsidiaries Consolidated Balance Sheets (in thousands, except share and per share amounts, unaudited)
	June 30, 2022				December 31, 2021
Assets
Current assets
Cash and cash equivalents	$	379,922			$	591,003
Restricted cash		28,279				127,278
Short-term investments		82,506				33,737
Accounts receivable, net of allowances for credit losses of $1,655 and $1,298		86,082				69,594
Inventory		377,518				358,221
Loans held for sale		306,364				35,759
Prepaid expenses		30,775				22,948
Other current assets		18,378				7,524
Total current assets		1,309,824				1,246,064
Property and equipment, net		59,709				58,671
Right-of-use assets, net		54,321				54,200
Mortgage servicing rights, at fair value		35,050				—
Long-term investments		52,989				54,828
Goodwill		461,349				409,382
Intangible assets, net		181,766				185,929
Other assets, noncurrent		12,720				12,898
Total assets	$	2,167,728			$	2,021,972
Liabilities, mezzanine equity, and stockholders' equity
Current liabilities
Accounts payable	$	20,237			$	12,546
Accrued and other liabilities		161,803				118,122
Warehouse credit facilities		298,303				33,043
Secured revolving credit facility		156,540				199,781
Convertible senior notes, net		—				23,280
Lease liabilities		18,180				15,040
Total current liabilities		655,063				401,812
Lease liabilities, noncurrent		50,920				55,222
Convertible senior notes, net, noncurrent		1,239,873				1,214,017
Deferred tax liabilities		728				1,201
Total liabilities		1,946,584				1,672,252
Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		39,891				39,868
Stockholders’ equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 108,415,939 and 106,308,767 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively		108				106
Additional paid-in capital		723,251				682,084
Accumulated other comprehensive loss		(990	)			(174	)
Accumulated deficit		(541,116	)			(372,164	)
Total stockholders’ equity		181,253				309,852
Total liabilities, mezzanine equity, and stockholders’ equity	$	2,167,728			$	2,021,972

Redfin Corporation and Subsidiaries Consolidated Statements of Comprehensive Loss (in thousands, except share and per share amounts, unaudited)
	Three Months Ended June 30,								Six Months Ended June 30,
	2022				2021				2022				2021
Revenue
Service	$	344,309			$	298,870			$	561,902			$	474,463
Product		262,606				172,445				642,359				265,171
Total revenue		606,915				471,315				1,204,261				739,634
Cost of revenue(1)
Service		232,886				177,762				398,695				312,613
Product		256,026				167,417				615,026				258,527
Total cost of revenue		488,912				345,179				1,013,721				571,140
Gross profit		118,003				126,136				190,540				168,494
Operating expenses
Technology and development(1)		51,506				41,488				101,146				69,166
Marketing(1)		56,743				55,398				100,085				67,200
General and administrative(1)		71,733				59,567				130,699				96,957
Restructuring and reorganization		12,677				—				18,386				—
Total operating expenses		192,659				156,453				350,316				233,323
Loss from operations		(74,656	)			(30,317	)			(159,776	)			(64,829	)
Interest income		554				135				774				293
Interest expense		(3,620	)			(2,813	)			(7,481	)			(4,151	)
Income tax (expense) benefit		(159	)			5,052				(293	)			5,052
Other (expense) income, net		(265	)			65				(2,176	)			(27	)
Net loss	$	(78,146	)		$	(27,878	)		$	(168,952	)		$	(63,662	)
Dividends on convertible preferred stock		(350	)			(1,878	)			(1,144	)			(4,214	)
Net loss attributable to common stock—basic and diluted	$	(78,496	)		$	(29,756	)		$	(170,096	)		$	(67,876	)
Net loss per share attributable to common stock—basic and diluted	$	(0.73	)		$	(0.29	)		$	(1.59	)		$	(0.65	)
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted		107,396,575				104,391,337				107,032,381				103,912,212
Net loss	$	(78,146	)		$	(27,878	)		$	(168,952	)		$	(63,662	)
Other comprehensive income
Foreign currency translation adjustments		34				—				38				—
Unrealized gain on available-for-sale debt securities		217				84				778				134
Comprehensive loss	$	(77,895	)		$	(27,794	)		$	(168,136	)		$	(63,528	)
(1) Includes stock-based compensation as follows:
	Three Months Ended June 30,								Six Months Ended June 30,
	2022				2021				2022				2021
Cost of revenue	$	3,879			$	3,758			$	7,257			$	6,736
Technology and development		7,700				5,771				15,665				11,532
Marketing		924				535				1,996				1,078
General and administrative		4,310				3,679				8,683				6,981
Total	$	16,813			$	13,743			$	33,601			$	26,327

Redfin Corporation and Subsidiaries Consolidated Statements of Cash Flows (in thousands, unaudited)
	Six Months Ended June 30,
	2022				2021
Operating Activities
Net loss	$	(168,952	)		$	(63,662	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		31,140				18,018
Stock-based compensation		33,601				26,327
Amortization of debt discount and issuance costs		2,899				2,203
Non-cash lease expense		7,096				5,448
Net loss on IRLCs, forward sales commitments, and loans held for sale		2,721				238
Other		3,170				169
Change in assets and liabilities:
Accounts receivable, net		(6,791	)			(22,312	)
Inventory		(19,297	)			(199,845	)
Prepaid expenses and other assets		(2,852	)			(7,137	)
Accounts payable		5,964				15,766
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent		5,529				26,915
Lease liabilities		(8,042	)			(6,144	)
Change in fair value of mortgage servicing rights, net		(878	)			—
Origination of mortgage servicing rights		(964	)			—
Proceeds from sale of mortgage servicing rights		774				—
Origination of loans held for sale		(1,641,377	)			(488,274	)
Proceeds from sale of loans originated as held for sale		1,587,759				478,652
Net cash used in operating activities		(168,500	)			(213,638	)
Investing activities
Purchases of property and equipment		(12,131	)			(13,580	)
Purchases of investments		(82,184	)			(104,877	)
Sales of investments		12,946				89,536
Maturities of investments		19,425				92,843
Cash paid for acquisition, net of cash acquired		(97,341	)			(608,000	)
Net cash used in investing activities		(159,285	)			(544,078	)
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans		9,258				12,496
Tax payments related to net share settlements on restricted stock units		(3,743	)			(16,530	)
Borrowings from warehouse credit facilities		1,628,684				464,250
Repayments to warehouse credit facilities		(1,572,033	)			(456,854	)
Borrowings from secured revolving credit facility		326,025				230,608
Repayments to secured revolving credit facility		(369,266	)			(130,788	)
Proceeds from issuance of convertible senior notes, net of issuance costs		—				561,529
Purchases of capped calls related to convertible senior notes		—				(62,647	)
Payments for repurchases and conversions of convertible senior notes		—				(1,925	)
Other financing payables		—				97
Principal payments under finance lease obligations		(414	)			(353	)
Cash paid for secured revolving credit facility issuance costs		(764	)			(305	)
Net cash provided by financing activities		17,747				599,578
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(42	)			—
Net change in cash, cash equivalents, and restricted cash		(310,080	)			(158,138	)
Cash, cash equivalents, and restricted cash:
Beginning of period		718,281				945,820
End of period	$	408,201			$	787,682

Redfin Corporation and Subsidiaries Supplemental Financial Information and Business Metrics (unaudited)
	Three Months Ended
	Jun. 30, 2022				Mar. 31, 2022				Dec. 31, 2021				Sep. 30, 2021				Jun. 30, 2021				Mar. 31, 2021				Dec. 31, 2020				Sep. 30, 2020				Jun. 30, 2020
Monthly average visitors (in thousands)		52,698				51,287				44,665				49,147				48,437				46,202				44,135				49,258				42,537
Real estate services transactions
Brokerage		20,565				15,001				19,428				21,929				21,006				14,317				16,951				18,980				13,828
Partner		3,983				3,417				4,603				4,755				4,597				3,944				4,940				5,180				2,691
Total		24,548				18,418				24,031				26,684				25,603				18,261				21,891				24,160				16,519
Real estate services revenue per transaction
Brokerage	$	11,692			$	11,191			$	10,900			$	11,107			$	11,307			$	10,927			$	10,751			$	10,241			$	9,296
Partner		2,851				2,814				2,819				2,990				3,195				3,084				3,123				2,988				2,417
Aggregate		10,258				9,637				9,352				9,661				9,850				9,233				9,030				8,686				8,175
U.S. market share by units(1)		0.82	%			0.79	%			0.78	%			0.78	%			0.77	%			0.75	%			0.68	%			0.70	%			0.66	%
Revenue from top-10 Redfin markets as a percentage of real estate services revenue		59	%			57	%			61	%			62	%			64	%			62	%			63	%			63	%			63	%
Average number of lead agents		2,640				2,750				2,485				2,370				2,456				2,277				1,981				1,820				1,399
RedfinNow homes sold		423				617				600				388				292				171				83				37				162
Revenue per RedfinNow home sold (in ones)	$	604,120			$	608,851			$	622,519			$	599,963			$	571,670			$	525,765			$	471,895			$	504,730			$	444,757
Mortgage originations by dollars (in millions)	$	1,565			$	159			$	242			$	258			$	261			$	227			$	206			$	185			$	161
Mortgage originations by units (in ones)		3,860				414				591				671				749				632				570				539				475

(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, we are now reporting 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.

Supplemental Financial Information Segment Reporting and Reconciliation of Adjusted EBITDA to Net Income (Loss) (unaudited, in thousands)
	Three Months Ended June 30, 2022
	Real estate services				Properties				Rentals				Mortgage				Other				Corporate Overhead and Intercompany Eliminations				Total
Revenue	$	251,809			$	262,606			$	38,248			$	53,098			$	5,894			$	(4,740	)		$	606,915
Cost of revenue		177,698				255,839				7,901				46,316				5,898				(4,740	)			488,912
Gross profit		74,111				6,767				30,347				6,782				(4	)			—				118,003
Operating expenses
Technology and development		27,696				4,684				14,871				1,904				1,189				1,162				51,506
Marketing		40,765				821				13,086				1,843				71				157				56,743
General and administrative		24,341				3,210				21,824				9,450				850				12,058				71,733
Restructuring and reorganization		—				—				—				—				—				12,677				12,677
Total operating expenses		92,802				8,715				49,781				13,197				2,110				26,054				192,659
Loss from operations		(18,691	)			(1,948	)			(19,434	)			(6,415	)			(2,114	)			(26,054	)			(74,656	)
Interest income, interest expense, income tax expense, and other expense, net		(123	)			(1,245	)			232				(35	)			11				(2,330	)			(3,490	)
Net loss	$	(18,814	)		$	(3,193	)		$	(19,202	)		$	(6,450	)		$	(2,103	)		$	(28,384	)		$	(78,146	)

	Three Months Ended June 30, 2022
	Real estate services				Properties				Rentals				Mortgage				Other				Corporate Overhead and Intercompany Eliminations				Total
Net loss	$	(18,814	)		$	(3,193	)		$	(19,202	)		$	(6,450	)		$	(2,103	)		$	(28,384	)		$	(78,146	)
Interest income(1)		—				(159	)			(1	)			(2,929	)			(12	)			(381	)			(3,482	)
Interest expense(2)		—				1,403				—				1,958				—				2,214				5,575
Income tax expense		—				—				(230	)			33				—				356				159
Depreciation and amortization		4,551				603				9,511				1,070				318				274				16,327
Stock-based compensation(3)		9,670				1,527				2,739				780				441				1,656				16,813
Acquisition-related costs(4)		—				—				—				—				—				1,507				1,507
Restructuring and reorganization(5)		—				—				—				—				—				12,677				12,677
Adjusted EBITDA	$	(4,593	)		$	181			$	(7,183	)		$	(5,538	)		$	(1,356	)		$	(10,081	)		$	(28,570	)

(1) Interest income includes $2.9 million of interest income related to originated mortgage loans for the three months ended June 30, 2022.
(2) Interest expense includes $2.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2022.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 12 to our consolidated financial statements for more information.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022 workforce reduction.

	Three Months Ended June 30, 2021
	Real estate services				Properties				Rentals				Mortgage				Other				Corporate Overhead and Intercompany Eliminations				Total
Revenue	$	252,199			$	172,445			$	42,548			$	5,099			$	3,422			$	(4,398	)		$	471,315
Cost of revenue		164,125				167,420				7,570				6,832				3,630				(4,398	)			345,179
Gross profit		88,074				5,025				34,978				(1,733	)			(208	)			—				126,136
Operating expenses
Technology and development		20,010				3,080				13,568				2,536				479				1,815				41,488
Marketing		41,746				572				12,607				130				30				313				55,398
General and administrative		18,498				2,078				23,116				1,927				416				13,532				59,567
Total operating expenses		80,254				5,730				49,291				4,593				925				15,660				156,453
Income (loss) from operations		7,820				(705	)			(14,313	)			(6,326	)			(1,133	)			(15,660	)			(30,317	)
Interest income, interest expense, income tax expense, and other expense, net		(3	)			(662	)			212				1				1				2,890				2,439
Net income (loss)	$	7,817			$	(1,367	)		$	(14,101	)		$	(6,325	)		$	(1,132	)		$	(12,770	)		$	(27,878	)

	Three Months Ended June 30, 2021
	Real estate services			Properties				Rentals				Mortgage				Other				Corporate Overhead and Intercompany Eliminations				Total
Net income (loss)	$	7,817		$	(1,367	)		$	(14,101	)		$	(6,325	)		$	(1,132	)		$	(12,770	)		$	(27,878	)
Interest income(1)		—			(2	)			—				(414	)			(1	)			(131	)			(548	)
Interest expense(2)		—			664				—				407				—				2,149				3,220
Income tax expense		—			—				(212	)			—				—				(4,840	)			(5,052	)
Depreciation and amortization		3,180			412				9,110				313				167				495				13,677
Stock-based compensation(3)		9,042			1,239				113				770				191				2,388				13,743
Acquisition-related costs(4)		—			—				—				—				—				5,616				5,616
Restructuring and reorganization(5)		—			—				—				—				—				—				—
Adjusted EBITDA	$	20,039		$	946			$	(5,090	)		$	(5,249	)		$	(775	)		$	(7,093	)		$	2,778

(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended June 30, 2021.
(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 12 to our consolidated financial statements for more information.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022 workforce reduction.

	Six Months Ended June 30, 2022
	Real estate services				Properties				Rentals				Mortgage				Other				Corporate Overhead and Intercompany Eliminations				Total
Revenue	$	429,295			$	642,359			$	76,292			$	56,015			$	10,263			$	(9,963	)		$	1,204,261
Cost of revenue		331,482				614,704				15,094				51,834				10,570				(9,963	)			1,013,721
Gross profit		97,813				27,655				61,198				4,181				(307	)			—				190,540
Operating expenses
Technology and development		54,435				8,803				29,154				4,251				2,225				2,278				101,146
Marketing		71,608				1,974				24,128				1,871				125				379				100,085
General and administrative		47,333				6,035				46,015				10,974				1,562				18,780				130,699
Restructuring and reorganization		—				—				—				—				—				18,386				18,386
Total operating expenses		173,376				16,812				99,297				17,096				3,912				39,823				350,316
Loss from operations		(75,563	)			10,843				(38,099	)			(12,915	)			(4,219	)			(39,823	)			(159,776	)
Interest income, interest expense, income tax expense, and other expense, net		(123	)			(2,869	)			701				(35	)			12				(6,862	)			(9,176	)
Net (loss) income	$	(75,686	)		$	7,974			$	(37,398	)		$	(12,950	)		$	(4,207	)		$	(46,685	)		$	(168,952	)

	Six Months Ended June 30, 2022
	Real estate services				Properties				Rentals				Mortgage				Other				Corporate Overhead and Intercompany Eliminations				Total
Net (loss) income	$	(75,686	)		$	7,974			$	(37,398	)		$	(12,950	)		$	(4,207	)		$	(46,685	)		$	(168,952	)
Interest income(1)		—				(184	)			(1	)			(3,247	)			(13	)			(575	)			(4,020	)
Interest expense(2)		—				3,052				—				2,235				—				4,427				9,714
Income tax expense		—				—				(434	)			33				—				694				293
Depreciation and amortization		8,569				1,141				18,867				1,372				573				618				31,140
Stock-based compensation(3)		19,810				3,064				4,979				1,381				810				3,557				33,601
Acquisition-related costs(4)		—				—				—				—				—				2,424				2,424
Restructuring and reorganization(5)		—				—				—				—				—				18,386				18,386
Adjusted EBITDA	$	(47,307	)		$	15,047			$	(13,987	)		$	(11,176	)		$	(2,837	)		$	(17,154	)		$	(77,414	)

(1) Interest income includes $3.2 million of interest income related to originated mortgage loans for the six months ended June 30, 2022.
(2) Interest expense includes $2.2 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2022.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 12 to our consolidated financial statements for more information.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022 workforce reduction.

	Six Months Ended June 30, 2021
	Real estate services				Properties				Rentals				Mortgage				Other				Corporate Overhead and Intercompany Eliminations				Total
Revenue	$	420,808			$	265,171			$	42,548			$	10,810			$	7,068			$	(6,771	)		$	739,634
Cost of revenue		292,342				258,551				7,570				12,701				6,747				(6,771	)			571,140
Gross profit		128,466				6,620				34,978				(1,891	)			321				—				168,494
Operating expenses
Technology and development		40,130				5,910				13,767				4,904				952				3,503				69,166
Marketing		52,928				779				12,611				264				63				555				67,200
General and administrative		42,429				4,507				23,149				3,352				933				22,587				96,957
Total operating expenses		135,487				11,196				49,527				8,520				1,948				26,645				233,323
Loss from operations		(7,021	)			(4,576	)			(14,549	)			(10,411	)			(1,627	)			(26,645	)			(64,829	)
Interest income, interest expense, income tax expense, and other expense, net		(31	)			(1,082	)			212				2				1				2,065				1,167
Net loss	$	(7,052	)		$	(5,658	)		$	(14,337	)		$	(10,409	)		$	(1,626	)		$	(24,580	)		$	(63,662	)

	Six Months Ended June 30, 2021
	Real estate services				Properties				Rentals				Mortgage				Other				Corporate Overhead and Intercompany Eliminations				Total
Net loss	$	(7,052	)		$	(5,658	)		$	(14,337	)		$	(10,409	)		$	(1,626	)		$	(24,580	)		$	(63,662	)
Interest income(1)		—				(7	)			—				(771	)			(1	)			(284	)			(1,063	)
Interest expense(2)		—				1,089				—				835				—				3,063				4,987
Income tax expense		—				—				(212	)			—				—				(4,840	)			(5,052	)
Depreciation and amortization		6,230				803				9,111				591				334				949				18,018
Stock-based compensation(3)		17,560				2,373				174				1,444				341				4,435				26,327
Acquisition-related costs(4)		—				—				—				—				—				7,723				7,723
Restructuring and reorganization(5)		—				—				—				—				—				—				—
Adjusted EBITDA	$	16,738			$	(1,400	)		$	(5,264	)		$	(8,310	)		$	(952	)		$	(13,534	)		$	(12,722	)

(1) Interest income includes $0.8 million of interest income related to originated mortgage loans for the six months ended June 30, 2021.
(2) Interest expense includes $0.8 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 12 to our consolidated financial statements for more information.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022 workforce reduction.

Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance (unaudited, in millions)
	Three Months Ended September 30, 2022
	Low				High
Net loss	$	(87	)		$	(79	)
Net interest expense		5				5
Income tax expense		—				—
Depreciation and amortization		16				16
Stock-based compensation		19				19
Acquisition-related costs		—				—
Restructuring and reorganization		—				—
Adjusted EBITDA	$	(47	)		$	(39	)

Note: Figures may not sum due to rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220804005874/en/

Investor Relations

Meg Nunnally, 206-576-8610

ir@redfin.com

Public Relations

Mariam Sughayer, 206-876-1322

press@redfin.com

Source: Redfin Corporation

FAQ

What are Redfin's Q2 2022 revenue figures?

Redfin reported a revenue of $606.9 million for Q2 2022, reflecting a 29% increase compared to the same quarter in 2021.

How did Redfin's net loss change in Q2 2022?

Redfin's net loss for Q2 2022 was $78.1 million, an increase from the $27.9 million net loss in Q2 2021.

What market share did Redfin achieve in Q2 2022?

Redfin reached a market share of 0.82% of U.S. existing home sales by units in Q2 2022.

How many users accessed Redfin's services in Q2 2022?

Redfin's mobile apps and website had nearly 53 million average monthly users in Q2 2022, up by 9% year-over-year.

What changes occurred in Redfin's real estate services gross profit?

In Q2 2022, Redfin's real estate services gross profit decreased by 16% year-over-year to $74.1 million.