Redfin Reports Second Quarter 2023 Financial Results
Second Quarter 2023
Second quarter revenue was
Net loss was
“In a declining market, Redfin improved our second-quarter net income by
Second Quarter Highlights
-
Second quarter market share was
0.75% ofU.S. existing home sales by units, compared to0.83% in the second quarter of 2022. - Redfin’s mobile apps and website reached more than 52 million average monthly users, compared to 53 million in the second quarter of 2022.
-
Maintained momentum in mortgage cross-selling with
19% attach rates for the second quarter, up from8% in the second quarter of 2022. -
Brought Title Forward closing services to
Florida and made significant progress in cross-selling, with57% attach rates in the second quarter, up from29% in the second quarter of 2022. -
Experienced an uptick in high-end demand with over 1,300
$1M + listings since launching the new Redfin Premier brand in the first quarter. In large coastal markets likeSan Francisco andLos Angeles , Redfin's year-over-year growth in$1M + pending transactions began outpacing the broader market in June. - Began leveraging AI to improve both employee efficiency and the user experience on Redfin.com, including using large language models to assist with internal engineering tasks and to create content at scale for users.
-
Increased the mix of sales to loyalty customers from
35% in the second quarter of 2022 to37% in the second quarter of 2023, driven by better agent follow-up and pipeline mining efforts. -
Delivered software to improve customer and agent experience while driving customer contacts and boosting traffic to Redfin:
- Launched a new design system for all property pages on Redfin.com, improving the visual appearance and making it easier for Redfin teams to create beautiful, scalable features in the future. These improvements also drove significant growth in the number of buyers and sellers contacting Redfin for service.
- Updated SMS surveys for customers who tour with Redfin Partner Agents, making it easier for them to submit feedback about their experience and improving Redfin’s understanding of tour completion rate.
-
Improved prioritization in Redfin’s support queue, helping high-intent customers get personalized help faster and generating a
1% increase in listing customers. - Updated rental contact request process that makes it easier for potential renters to browse additional properties and contact multiple properties at once.
Business Outlook
The following forward-looking statements reflect Redfin's expectations as of August 3, 2023, and are subject to substantial uncertainty.
For the third quarter of 2023 we expect:
-
Total revenue between
$265 million $279 million $172 million $182 million $46 million $47 million $35 million $38 million $12 million -
Total net loss is expected to be between
$30 million $21 million $90 million $25 million $18 million $17 million $4 million $14 million
Conference Call
Redfin will webcast a conference call to discuss the results at 1:30 p.m. Pacific Time today. The webcast will be open to the public at http://investors.redfin.com. The webcast will remain available on the investor relations website for at least three months following the conference call.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including our future operating results, as described under Business Outlook. We believe our expectations related to these forward-looking statements are reasonable, but actual results may turn out to be materially different. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our annual report for the year ended December 31, 2022, as supplemented by our quarterly report for the quarter ended June 30, 2023, both of which are available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.
Non-GAAP Financial Measure
To supplement our consolidated financial statements that are prepared and presented in accordance with GAAP, we also compute and present adjusted EBITDA, which is a non-GAAP financial measure. We believe adjusted EBITDA is useful for investors because it enhances period-to-period comparability of our financial statements on a consistent basis and provides investors with useful insight into the underlying trends of the business. The presentation of this financial measure is not intended to be considered in isolation or as a substitute of, or superior to, our financial information prepared and presented in accordance with GAAP. Our calculation of adjusted EBITDA may be different from adjusted EBITDA or similar non-GAAP financial measures used by other companies, limiting its usefulness for comparison purposes. Our adjusted EBITDA for the three months ended June 30, 2023 and 2022 is presented below, along with a reconciliation of adjusted EBITDA to net loss.
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with same day tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can 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. Customers who buy and sell with Redfin pay a
Redfin-F
Redfin Corporation and Subsidiaries Consolidated Balance Sheets (in thousands, except share and per share amounts, unaudited) |
||||||||
|
June 30, 2023 |
|
December 31, 2022 |
|||||
Assets |
|
|
|
|||||
Current assets |
|
|
|
|||||
Cash and cash equivalents |
$ |
118,776 |
|
|
$ |
232,200 |
|
|
Restricted cash |
|
2,377 |
|
|
|
2,406 |
|
|
Short-term investments |
|
100,643 |
|
|
|
122,259 |
|
|
Accounts receivable, net of allowances for credit losses of |
|
67,753 |
|
|
|
46,375 |
|
|
Loans held for sale |
|
233,550 |
|
|
|
199,604 |
|
|
Prepaid expenses |
|
26,042 |
|
|
|
34,006 |
|
|
Other current assets |
|
9,979 |
|
|
|
7,449 |
|
|
Current assets of discontinued operations |
|
1,378 |
|
|
|
132,159 |
|
|
Total current assets |
|
560,498 |
|
|
|
776,458 |
|
|
Property and equipment, net |
|
49,241 |
|
|
|
54,939 |
|
|
Right-of-use assets, net |
|
37,270 |
|
|
|
40,889 |
|
|
Mortgage servicing rights, at fair value |
|
35,503 |
|
|
|
36,261 |
|
|
Long-term investments |
|
5,473 |
|
|
|
29,480 |
|
|
Goodwill |
|
461,349 |
|
|
|
461,349 |
|
|
Intangible assets, net |
|
142,778 |
|
|
|
162,272 |
|
|
Other assets, noncurrent |
|
11,493 |
|
|
|
11,247 |
|
|
Noncurrent assets of discontinued operations |
|
— |
|
|
|
1,309 |
|
|
Total assets |
$ |
1,303,605 |
|
|
$ |
1,574,204 |
|
|
Liabilities, mezzanine equity, and stockholders' equity |
|
|
|
|||||
Current liabilities |
|
|
|
|||||
Accounts payable |
$ |
14,661 |
|
|
$ |
11,065 |
|
|
Accrued and other liabilities |
|
102,568 |
|
|
|
106,763 |
|
|
Warehouse credit facilities |
|
227,801 |
|
|
|
190,509 |
|
|
Convertible senior notes, net |
|
23,506 |
|
|
|
23,431 |
|
|
Lease liabilities |
|
16,234 |
|
|
|
18,560 |
|
|
Current liabilities of discontinued operations |
|
44 |
|
|
|
4,311 |
|
|
Total current liabilities |
|
384,814 |
|
|
|
354,639 |
|
|
Lease liabilities, noncurrent |
|
34,383 |
|
|
|
36,906 |
|
|
Convertible senior notes, net, noncurrent |
|
834,716 |
|
|
|
1,078,157 |
|
|
Deferred tax liabilities |
|
255 |
|
|
|
243 |
|
|
Noncurrent liabilities of discontinued operations |
|
— |
|
|
|
392 |
|
|
Total liabilities |
|
1,254,168 |
|
|
|
1,470,337 |
|
|
Series A convertible preferred stock—par value |
|
39,936 |
|
|
|
39,914 |
|
|
Stockholders’ equity |
|
|
|
|||||
Common stock—par value |
|
114 |
|
|
|
110 |
|
|
Additional paid-in capital |
|
791,302 |
|
|
|
757,951 |
|
|
Accumulated other comprehensive loss |
|
(452 |
) |
|
|
(801 |
) |
|
Accumulated deficit |
|
(781,463 |
) |
|
|
(693,307 |
) |
|
Total stockholders’ equity |
|
9,501 |
|
|
|
63,953 |
|
|
Total liabilities, mezzanine equity, and stockholders’ equity |
$ |
1,303,605 |
|
|
$ |
1,574,204 |
|
|
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, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
275,556 |
|
|
|
349,049 |
|
|
|
489,639 |
|
|
|
571,865 |
|
Cost of revenue(1) |
|
175,366 |
|
|
|
237,813 |
|
|
|
331,311 |
|
|
|
408,980 |
|
Gross profit |
|
100,190 |
|
|
|
111,236 |
|
|
|
158,328 |
|
|
|
162,885 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Technology and development(1) |
|
47,141 |
|
|
|
46,822 |
|
|
|
94,804 |
|
|
|
92,343 |
|
Marketing(1) |
|
33,033 |
|
|
|
55,922 |
|
|
|
73,436 |
|
|
|
98,111 |
|
General and administrative(1) |
|
61,765 |
|
|
|
68,523 |
|
|
|
131,204 |
|
|
|
124,664 |
|
Restructuring and reorganization |
|
6,106 |
|
|
|
12,406 |
|
|
|
7,159 |
|
|
|
18,115 |
|
Total operating expenses |
|
148,045 |
|
|
|
183,673 |
|
|
|
306,603 |
|
|
|
333,233 |
|
Loss from operations |
|
(47,855 |
) |
|
|
(72,437 |
) |
|
|
(148,275 |
) |
|
|
(170,348 |
) |
Interest income |
|
2,704 |
|
|
|
554 |
|
|
|
6,110 |
|
|
|
774 |
|
Interest expense |
|
(1,766 |
) |
|
|
(2,217 |
) |
|
|
(3,688 |
) |
|
|
(4,429 |
) |
Income tax expense |
|
(233 |
) |
|
|
(159 |
) |
|
|
(643 |
) |
|
|
(293 |
) |
Gain on extinguishment of convertible senior notes |
|
20,083 |
|
|
|
— |
|
|
|
62,353 |
|
|
|
— |
|
Other expense, net |
|
(145 |
) |
|
|
(264 |
) |
|
|
(379 |
) |
|
|
(2,175 |
) |
Net loss from continuing operations |
$ |
(27,212 |
) |
|
$ |
(74,523 |
) |
|
$ |
(84,522 |
) |
|
$ |
(176,471 |
) |
Net (loss) income from discontinued operations |
|
(146 |
) |
|
|
(3,623 |
) |
|
|
(3,634 |
) |
|
7,519 |
|
|
Net loss |
$ |
(27,358 |
) |
|
$ |
(78,146 |
) |
|
$ |
(88,156 |
) |
|
$ |
(168,952 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss from continuing operations |
|
(27,212 |
) |
|
|
(74,523 |
) |
|
|
(84,522 |
) |
|
|
(176,471 |
) |
Dividends on convertible preferred stock |
|
(297 |
) |
|
|
(350 |
) |
|
|
(523 |
) |
|
|
(1,144 |
) |
Net loss from continuing operations attributable to common stock—basic and diluted |
$ |
(27,509 |
) |
|
$ |
(74,873 |
) |
|
$ |
(85,045 |
) |
|
$ |
(177,615 |
) |
Net loss from continuing operations per share attributable to common stock—basic and diluted |
$ |
(0.25 |
) |
|
$ |
(0.70 |
) |
|
$ |
(0.77 |
) |
|
$ |
(1.66 |
) |
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted |
|
111,678,417 |
|
|
|
107,396,575 |
|
|
|
110,895,358 |
|
|
|
107,032,381 |
|
Net loss attributable to common stock—basic and diluted |
$ |
(27,655 |
) |
|
$ |
(78,496 |
) |
|
$ |
(88,679 |
) |
|
$ |
(170,096 |
) |
Net loss attributable to common stock per share—basic and diluted |
$ |
(0.25 |
) |
|
$ |
(0.73 |
) |
|
$ |
(0.80 |
) |
|
$ |
(1.59 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(27,358 |
) |
|
$ |
(78,146 |
) |
|
$ |
(88,156 |
) |
|
$ |
(168,952 |
) |
Other comprehensive (loss) income |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
— |
|
|
|
34 |
|
|
|
(58 |
) |
|
|
38 |
|
Unrealized (loss) gain on available-for-sale debt securities |
|
(17 |
) |
|
|
217 |
|
|
|
407 |
|
|
|
778 |
|
Comprehensive loss |
$ |
(27,375 |
) |
|
$ |
(77,895 |
) |
|
|
(87,807 |
) |
|
|
(168,136 |
) |
(1) Includes stock-based compensation as follows: |
||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|||||
Cost of revenue |
$ |
3,001 |
|
$ |
3,615 |
|
$ |
7,136 |
|
$ |
6,605 |
|||||
Technology and development |
|
8,241 |
|
|
6,768 |
|
|
16,368 |
|
|
13,877 |
|||||
Marketing |
|
1,254 |
|
|
894 |
|
|
2,499 |
|
|
1,937 |
|||||
General and administrative |
|
5,025 |
|
|
4,009 |
|
|
10,345 |
|
|
8,118 |
|||||
Total |
$ |
17,521 |
|
$ |
15,286 |
|
$ |
36,348 |
|
$ |
30,537 |
|||||
Redfin Corporation and Subsidiaries Consolidated Statements of Cash Flows (in thousands, unaudited) |
||||||||
|
Six Months Ended June 30, |
|||||||
|
|
2023 |
|
|
|
2022 |
|
|
Operating Activities |
|
|
|
|||||
Net loss |
$ |
(88,156 |
) |
|
$ |
(168,952 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
34,146 |
|
|
|
31,140 |
|
|
Stock-based compensation |
|
36,582 |
|
|
|
33,601 |
|
|
Amortization of debt discount and issuance costs |
|
2,029 |
|
|
|
2,899 |
|
|
Non-cash lease expense |
|
9,578 |
|
|
|
7,096 |
|
|
Impairment costs |
|
113 |
|
|
|
— |
|
|
Net (gain) loss on IRLCs, forward sales commitments, and loans held for sale |
|
(4,565 |
) |
|
|
2,721 |
|
|
Change in fair value of mortgage servicing rights, net |
|
599 |
|
|
|
(878 |
) |
|
Gain on extinguishment of convertible senior notes |
|
(62,353 |
) |
|
|
— |
|
|
Other |
|
(1,794 |
) |
|
|
3,170 |
|
|
Change in assets and liabilities: |
|
|
|
|||||
Accounts receivable, net |
|
(14,069 |
) |
|
|
(6,791 |
) |
|
Inventory |
|
114,232 |
|
|
|
(19,297 |
) |
|
Prepaid expenses and other assets |
|
8,868 |
|
|
|
(2,852 |
) |
|
Accounts payable |
|
2,812 |
|
|
|
5,964 |
|
|
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent |
|
(4,522 |
) |
|
|
5,529 |
|
|
Lease liabilities |
|
(10,790 |
) |
|
|
(8,042 |
) |
|
Origination of mortgage servicing rights |
|
(579 |
) |
|
|
(964 |
) |
|
Proceeds from sale of mortgage servicing rights |
|
738 |
|
|
|
774 |
|
|
Origination of loans held for sale |
|
(1,922,690 |
) |
|
|
(1,641,377 |
) |
|
Proceeds from sale of loans originated as held for sale |
|
1,888,706 |
|
|
|
1,587,759 |
|
|
Net cash used in operating activities |
|
(11,115 |
) |
|
|
(168,500 |
) |
|
Investing activities |
|
|
|
|||||
Purchases of property and equipment |
|
(6,213 |
) |
|
|
(12,131 |
) |
|
Purchases of investments |
|
(76,866 |
) |
|
|
(82,184 |
) |
|
Sales of investments |
|
65,099 |
|
|
|
12,946 |
|
|
Maturities of investments |
|
59,383 |
|
|
|
19,425 |
|
|
Cash paid for acquisition, net of cash, cash equivalents, and restricted cash acquired |
|
— |
|
|
|
(97,341 |
) |
|
Net cash provided by (used in) investing activities |
|
41,403 |
|
|
|
(159,285 |
) |
|
Financing activities |
|
|
|
|||||
Proceeds from the issuance of common stock pursuant to employee equity plans |
|
5,665 |
|
|
|
9,258 |
|
|
Tax payments related to net share settlements on restricted stock units |
|
(11,096 |
) |
|
|
(3,743 |
) |
|
Borrowings from warehouse credit facilities |
|
1,920,487 |
|
|
|
1,628,684 |
|
|
Repayments to warehouse credit facilities |
|
(1,883,196 |
) |
|
|
(1,572,033 |
) |
|
Borrowings from secured revolving credit facility |
|
— |
|
|
|
326,025 |
|
|
Repayments to secured revolving credit facility |
|
— |
|
|
|
(369,266 |
) |
|
Cash paid for secured revolving credit facility issuance costs |
|
— |
|
|
|
(764 |
) |
|
Principal payments under finance lease obligations |
|
(53 |
) |
|
|
(414 |
) |
|
Repurchases of convertible senior notes |
|
(183,019 |
) |
|
|
— |
|
|
Net cash (used in) provided by financing activities |
|
(151,212 |
) |
|
|
17,747 |
|
|
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(58 |
) |
|
|
(42 |
) |
|
Net change in cash, cash equivalents, and restricted cash |
|
(120,982 |
) |
|
|
(310,080 |
) |
|
Cash, cash equivalents, and restricted cash: |
|
|
|
|||||
Beginning of period |
|
242,246 |
|
|
|
718,281 |
|
|
End of period |
$ |
121,264 |
|
|
$ |
408,201 |
|
|
Redfin Corporation and Subsidiaries Supplemental Financial Information and Business Metrics (unaudited) |
|||||||||||||||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||||||||||||
|
Jun. 30, 2023 |
|
Mar. 31, 2023 |
|
Dec. 31, 2022 |
|
Sep. 30, 2022 |
|
Jun. 30, 2022 |
|
Mar. 31, 2022 |
|
Dec. 31, 2021 |
|
Sep. 30, 2021 |
||||||||||||||||||
Monthly average visitors (in thousands) |
|
52,308 |
|
|
|
50,440 |
|
|
|
43,847 |
|
|
|
50,785 |
|
|
|
52,698 |
|
|
|
51,287 |
|
|
|
44,665 |
|
|
|
49,147 |
|
||
Real estate services transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Brokerage |
|
13,716 |
|
|
|
10,301 |
|
|
|
12,743 |
|
|
|
18,245 |
|
|
|
20,565 |
|
|
|
15,001 |
|
|
|
19,428 |
|
|
|
21,929 |
|
||
Partner |
|
3,952 |
|
|
|
3,187 |
|
|
|
2,742 |
|
|
|
3,507 |
|
|
|
3,983 |
|
|
|
3,417 |
|
|
|
4,603 |
|
|
|
4,755 |
|
||
Total |
|
17,668 |
|
|
|
13,488 |
|
|
|
15,485 |
|
|
|
21,752 |
|
|
|
24,548 |
|
|
|
18,418 |
|
|
|
24,031 |
|
|
|
26,684 |
|
||
Real estate services revenue per transaction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Brokerage |
$ |
12,376 |
|
|
$ |
11,556 |
|
|
$ |
10,914 |
|
|
$ |
11,103 |
|
|
$ |
11,692 |
|
|
$ |
11,191 |
|
|
$ |
10,900 |
|
|
$ |
11,107 |
|
||
Partner |
|
2,756 |
|
|
|
2,592 |
|
|
|
2,611 |
|
|
|
2,556 |
|
|
|
2,851 |
|
|
|
2,814 |
|
|
|
2,819 |
|
|
|
2,990 |
|
||
Aggregate |
|
10,224 |
|
|
|
9,438 |
|
|
|
9,444 |
|
|
|
9,725 |
|
|
|
10,258 |
|
|
|
9,637 |
|
|
|
9,352 |
|
|
|
9,661 |
|
||
U.S. market share by units(1) |
|
0.75 |
% |
|
|
0.79 |
% |
|
|
0.76 |
% |
|
|
0.80 |
% |
|
|
0.83 |
% |
|
|
0.79 |
% |
|
|
0.78 |
% |
|
|
0.78 |
% |
||
Revenue from top-10 Redfin markets as a percentage of real estate services revenue |
|
55 |
% |
|
|
53 |
% |
|
|
57 |
% |
|
|
58 |
% |
|
|
59 |
% |
|
|
57 |
% |
|
|
61 |
% |
|
|
62 |
% |
||
Average number of lead agents |
|
1,792 |
|
|
|
1,876 |
|
|
|
2,022 |
|
|
|
2,293 |
|
|
|
2,640 |
|
|
|
2,750 |
|
|
|
2,485 |
|
|
|
2,370 |
|
||
Mortgage originations by dollars (in millions) |
$ |
1,282 |
|
|
$ |
991 |
|
|
$ |
1,036 |
|
|
$ |
1,557 |
|
|
$ |
1,565 |
|
|
$ |
159 |
|
|
$ |
242 |
|
|
$ |
258 |
|
||
Mortgage originations by units (in ones) |
|
3,131 |
|
|
|
2,444 |
|
|
|
2,631 |
|
|
|
3,720 |
|
|
|
3,860 |
|
|
|
414 |
|
|
|
591 |
|
|
|
671 |
|
||
(1) Prior to the second quarter of 2022, we reported our U.S. market share based on the aggregate home value of our real estate services transactions, relative to the aggregate value of all |
Redfin Corporation and Subsidiaries Supplemental Financial Information (unaudited, in thousands) |
||||||||||||||||||||||||
|
Three Months Ended June 30, 2023 |
|||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
|||||||||||||
Revenue(1) |
$ |
180,641 |
|
|
$ |
45,356 |
|
|
$ |
38,426 |
|
|
$ |
11,133 |
|
$ |
— |
|
|
$ |
275,556 |
|
||
Cost of revenue |
|
124,447 |
|
|
|
10,427 |
|
|
|
34,266 |
|
|
|
6,226 |
|
|
— |
|
|
|
175,366 |
|
||
Gross profit |
|
56,194 |
|
|
|
34,929 |
|
|
|
4,160 |
|
|
|
4,907 |
|
|
— |
|
|
|
100,190 |
|
||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Technology and development |
|
28,044 |
|
|
|
16,304 |
|
|
|
734 |
|
|
|
1,118 |
|
|
941 |
|
|
|
47,141 |
|
||
Marketing |
|
16,004 |
|
|
|
15,938 |
|
|
|
1,054 |
|
|
|
16 |
|
|
21 |
|
|
|
33,033 |
|
||
General and administrative |
|
20,961 |
|
|
|
25,305 |
|
|
|
6,724 |
|
|
|
1,044 |
|
|
7,731 |
|
|
|
61,765 |
|
||
Restructuring and reorganization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
6,106 |
|
|
|
6,106 |
|
||
Total operating expenses |
|
65,009 |
|
|
|
57,547 |
|
|
|
8,512 |
|
|
|
2,178 |
|
|
14,799 |
|
|
|
148,045 |
|
||
(Loss) income from continuing operations |
|
(8,815 |
) |
|
|
(22,618 |
) |
|
|
(4,352 |
) |
|
|
2,729 |
|
|
(14,799 |
) |
|
|
(47,855 |
) |
||
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net |
|
— |
|
|
|
28 |
|
|
|
(91 |
) |
|
|
153 |
|
|
20,553 |
|
|
|
20,643 |
|
||
Net (loss) income from continuing operations |
$ |
(8,815 |
) |
|
$ |
(22,590 |
) |
|
$ |
(4,443 |
) |
|
$ |
2,882 |
|
$ |
5,754 |
|
|
$ |
(27,212 |
) |
||
(1) Included in revenue is |
||||||||||||||||||||||||
|
Three Months Ended June 30, 2023 |
||||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||||
Net (loss) income from continuing operations |
$ |
(8,815 |
) |
|
$ |
(22,590 |
) |
|
$ |
(4,443 |
) |
|
$ |
2,882 |
|
|
$ |
5,754 |
|
|
$ |
(27,212 |
) |
||
Interest income(1) |
|
— |
|
|
|
(77 |
) |
|
|
(3,686 |
) |
|
|
(153 |
) |
|
|
(2,467 |
) |
|
|
(6,383 |
) |
||
Interest expense(2) |
|
— |
|
|
|
— |
|
|
|
3,990 |
|
|
|
— |
|
|
|
1,766 |
|
|
|
5,756 |
|
||
Income tax expense |
|
— |
|
|
|
43 |
|
|
|
83 |
|
|
|
— |
|
|
|
107 |
|
|
|
233 |
|
||
Depreciation and amortization |
|
5,264 |
|
|
|
10,235 |
|
|
|
994 |
|
|
|
307 |
|
|
|
329 |
|
|
|
17,129 |
|
||
Stock-based compensation(3) |
|
12,297 |
|
|
|
3,709 |
|
|
|
823 |
|
|
|
561 |
|
|
|
131 |
|
|
|
17,521 |
|
||
Acquisition-related costs(4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
8 |
|
||
Restructuring and reorganization(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,106 |
|
|
|
6,106 |
|
||
Gain on extinguishment of convertible senior notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(20,083 |
) |
|
|
(20,083 |
) |
||
Adjusted EBITDA |
$ |
8,746 |
|
|
$ |
(8,680 |
) |
|
$ |
(2,239 |
) |
|
$ |
3,597 |
|
|
$ |
(8,349 |
) |
|
$ |
(6,925 |
) |
||
(1) Interest income includes |
(2) Interest expense includes |
(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, October 2022, and March 2023 workforce reductions. |
|
Three Months Ended June 30, 2022 |
||||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||||
Revenue(1) |
$ |
251,809 |
|
|
$ |
38,248 |
|
|
$ |
53,098 |
|
|
$ |
5,894 |
|
|
$ |
— |
|
|
$ |
349,049 |
|
||
Cost of revenue |
|
177,698 |
|
|
|
7,901 |
|
|
|
46,316 |
|
|
|
5,898 |
|
|
|
— |
|
|
|
237,813 |
|
||
Gross profit |
|
74,111 |
|
|
|
30,347 |
|
|
|
6,782 |
|
|
|
(4 |
) |
|
|
— |
|
|
|
111,236 |
|
||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Technology and development |
|
27,696 |
|
|
|
14,871 |
|
|
|
1,904 |
|
|
|
1,189 |
|
|
|
1,162 |
|
|
|
46,822 |
|
||
Marketing |
|
40,765 |
|
|
|
13,086 |
|
|
|
1,843 |
|
|
|
71 |
|
|
|
157 |
|
|
|
55,922 |
|
||
General and administrative |
|
24,341 |
|
|
|
21,824 |
|
|
|
9,450 |
|
|
|
850 |
|
|
|
12,058 |
|
|
|
68,523 |
|
||
Restructuring and reorganization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,406 |
|
|
|
12,406 |
|
||
Total operating expenses |
|
92,802 |
|
|
|
49,781 |
|
|
|
13,197 |
|
|
|
2,110 |
|
|
|
25,783 |
|
|
|
183,673 |
|
||
Loss from continuing operations |
|
(18,691 |
) |
|
|
(19,434 |
) |
|
|
(6,415 |
) |
|
|
(2,114 |
) |
|
|
(25,783 |
) |
|
|
(72,437 |
) |
||
Interest income, interest expense, income tax expense, and other expense, net |
|
(123 |
) |
|
|
232 |
|
|
|
(35 |
) |
|
|
11 |
|
|
|
(2,171 |
) |
|
|
(2,086 |
) |
||
Net loss from continuing operations |
$ |
(18,814 |
) |
|
$ |
(19,202 |
) |
|
$ |
(6,450 |
) |
|
$ |
(2,103 |
) |
|
$ |
(27,954 |
) |
|
$ |
(74,523 |
) |
||
(1) Included in revenue is |
|||||||||||||||||||||||||
|
Three Months Ended June 30, 2022 |
||||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||||
Net loss from continuing operations |
$ |
(18,814 |
) |
|
$ |
(19,202 |
) |
|
$ |
(6,450 |
) |
|
$ |
(2,103 |
) |
|
$ |
(27,954 |
) |
|
$ |
(74,523 |
) |
||
Interest income(1) |
|
— |
|
|
|
(1 |
) |
|
|
(2,929 |
) |
|
|
(12 |
) |
|
|
(540 |
) |
|
|
(3,482 |
) |
||
Interest expense(2) |
|
— |
|
|
|
— |
|
|
|
1,958 |
|
|
|
— |
|
|
|
2,214 |
|
|
|
4,172 |
|
||
Income tax expense |
|
— |
|
|
|
(230 |
) |
|
|
33 |
|
|
|
— |
|
|
|
356 |
|
|
|
159 |
|
||
Depreciation and amortization |
|
4,551 |
|
|
|
9,511 |
|
|
|
1,070 |
|
|
|
318 |
|
|
|
272 |
|
|
|
15,722 |
|
||
Stock-based compensation(3) |
|
9,670 |
|
|
|
2,739 |
|
|
|
780 |
|
|
|
441 |
|
|
|
1,656 |
|
|
|
15,286 |
|
||
Acquisition-related costs(4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,507 |
|
|
|
1,507 |
|
||
Restructuring and reorganization(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,406 |
|
|
|
12,406 |
|
||
Adjusted EBITDA |
$ |
(4,593 |
) |
|
$ |
(7,183 |
) |
|
$ |
(5,538 |
) |
|
$ |
(1,356 |
) |
|
$ |
(10,083 |
) |
|
$ |
(28,753 |
) |
||
(1) Interest income includes |
(2) Interest expense includes |
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. 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 and October 2022 workforce reductions. |
|
Six Months Ended June 30, 2023 |
|||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
|||||||||||||
Revenue(1) |
$ |
307,937 |
|
|
$ |
88,226 |
|
|
$ |
74,915 |
|
|
$ |
18,561 |
|
$ |
— |
|
|
$ |
489,639 |
|
||
Cost of revenue |
|
235,941 |
|
|
|
20,192 |
|
|
|
63,479 |
|
|
|
11,699 |
|
|
— |
|
|
|
331,311 |
|
||
Gross profit |
|
71,996 |
|
|
|
68,034 |
|
|
|
11,436 |
|
|
|
6,862 |
|
|
— |
|
|
|
158,328 |
|
||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Technology and development |
|
56,939 |
|
|
|
32,268 |
|
|
|
1,377 |
|
|
|
2,342 |
|
|
1,878 |
|
|
|
94,804 |
|
||
Marketing |
|
41,064 |
|
|
|
30,264 |
|
|
|
2,034 |
|
|
|
26 |
|
|
48 |
|
|
|
73,436 |
|
||
General and administrative |
|
40,579 |
|
|
|
51,607 |
|
|
|
13,653 |
|
|
|
2,097 |
|
|
23,268 |
|
|
|
131,204 |
|
||
Restructuring and reorganization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
7,159 |
|
|
|
7,159 |
|
||
Total operating expenses |
|
138,582 |
|
|
|
114,139 |
|
|
|
17,064 |
|
|
|
4,465 |
|
|
32,353 |
|
|
|
306,603 |
|
||
(Loss) income from continuing operations |
|
(66,586 |
) |
|
|
(46,105 |
) |
|
|
(5,628 |
) |
|
|
2,397 |
|
|
(32,353 |
) |
|
|
(148,275 |
) |
||
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net |
|
— |
|
|
|
73 |
|
|
|
(151 |
) |
|
|
268 |
|
|
63,563 |
|
|
|
63,753 |
|
||
Net (loss) income from continuing operations |
$ |
(66,586 |
) |
|
$ |
(46,032 |
) |
|
$ |
(5,779 |
) |
|
$ |
2,665 |
|
$ |
31,210 |
|
|
$ |
(84,522 |
) |
||
(1) Included in revenue is |
||||||||||||||||||||||||
|
Six Months Ended June 30, 2023 |
||||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||||
Net (loss) income from continuing operations |
$ |
(66,586 |
) |
|
$ |
(46,032 |
) |
|
$ |
(5,779 |
) |
|
$ |
2,665 |
|
|
$ |
31,210 |
|
|
$ |
(84,522 |
) |
||
Interest income(1) |
|
— |
|
|
|
(157 |
) |
|
|
(6,176 |
) |
|
|
(268 |
) |
|
|
(5,668 |
) |
|
|
(12,269 |
) |
||
Interest expense(2) |
|
— |
|
|
|
— |
|
|
|
6,605 |
|
|
|
— |
|
|
|
3,687 |
|
|
|
10,292 |
|
||
Income tax expense |
|
— |
|
|
|
86 |
|
|
|
151 |
|
|
|
— |
|
|
|
406 |
|
|
|
643 |
|
||
Depreciation and amortization |
|
9,696 |
|
|
|
20,387 |
|
|
|
1,982 |
|
|
|
523 |
|
|
|
1,432 |
|
|
|
34,020 |
|
||
Stock-based compensation(3) |
|
21,890 |
|
|
|
7,325 |
|
|
|
2,081 |
|
|
|
1,122 |
|
|
|
3,930 |
|
|
|
36,348 |
|
||
Acquisition-related costs(4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
8 |
|
||
Restructuring and reorganization(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,159 |
|
|
|
7,159 |
|
||
Impairment(6) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
113 |
|
|
|
113 |
|
||
Gain on extinguishment of convertible senior notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(62,353 |
) |
|
|
(62,353 |
) |
||
Adjusted EBITDA |
$ |
(35,000 |
) |
|
$ |
(18,391 |
) |
|
$ |
(1,136 |
) |
|
$ |
4,042 |
|
|
$ |
(20,076 |
) |
|
$ |
(70,561 |
) |
||
(1) Interest income includes |
(2) Interest expense includes |
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information. |
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies. |
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022, October 2022, and March 2023 workforce reductions. |
(6) Impairment consists of an impairment loss due to subleasing one of our operating leases. |
|
Six Months Ended June 30, 2022 |
||||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||||
Revenue(1) |
$ |
429,295 |
|
|
$ |
76,292 |
|
|
$ |
56,015 |
|
|
$ |
10,263 |
|
|
$ |
— |
|
|
$ |
571,865 |
|
||
Cost of revenue |
|
331,482 |
|
|
|
15,094 |
|
|
|
51,834 |
|
|
|
10,570 |
|
|
|
— |
|
|
|
408,980 |
|
||
Gross profit |
|
97,813 |
|
|
|
61,198 |
|
|
|
4,181 |
|
|
|
(307 |
) |
|
|
— |
|
|
|
162,885 |
|
||
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Technology and development |
|
54,435 |
|
|
|
29,154 |
|
|
|
4,251 |
|
|
|
2,225 |
|
|
|
2,278 |
|
|
|
92,343 |
|
||
Marketing |
|
71,608 |
|
|
|
24,128 |
|
|
|
1,871 |
|
|
|
125 |
|
|
|
379 |
|
|
|
98,111 |
|
||
General and administrative |
|
47,333 |
|
|
|
46,015 |
|
|
|
10,974 |
|
|
|
1,562 |
|
|
|
18,780 |
|
|
|
124,664 |
|
||
Restructuring and reorganization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,115 |
|
|
|
18,115 |
|
||
Total operating expenses |
|
173,376 |
|
|
|
99,297 |
|
|
|
17,096 |
|
|
|
3,912 |
|
|
|
39,552 |
|
|
|
333,233 |
|
||
Loss from operations |
|
(75,563 |
) |
|
|
(38,099 |
) |
|
|
(12,915 |
) |
|
|
(4,219 |
) |
|
|
(39,552 |
) |
|
|
(170,348 |
) |
||
Interest income, interest expense, income tax expense, and other expense, net |
|
(123 |
) |
|
|
701 |
|
|
|
(35 |
) |
|
|
12 |
|
|
|
(6,678 |
) |
|
|
(6,123 |
) |
||
Net loss from continuing operations |
$ |
(75,686 |
) |
|
$ |
(37,398 |
) |
|
$ |
(12,950 |
) |
|
$ |
(4,207 |
) |
|
$ |
(46,230 |
) |
|
$ |
(176,471 |
) |
||
(1) Included in revenue is |
|||||||||||||||||||||||||
|
Six Months Ended June 30, 2022 |
||||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||||
Net loss from continuing operations |
$ |
(75,686 |
) |
|
$ |
(37,398 |
) |
|
$ |
(12,950 |
) |
|
$ |
(4,207 |
) |
|
$ |
(46,230 |
) |
|
$ |
(176,471 |
) |
||
Interest income(1) |
|
— |
|
|
|
(1 |
) |
|
|
(3,247 |
) |
|
|
(13 |
) |
|
|
(759 |
) |
|
|
(4,020 |
) |
||
Interest expense(2) |
|
— |
|
|
|
— |
|
|
|
2,235 |
|
|
|
— |
|
|
|
4,427 |
|
|
|
6,662 |
|
||
Income tax expense |
|
— |
|
|
|
(434 |
) |
|
|
33 |
|
|
|
— |
|
|
|
694 |
|
|
|
293 |
|
||
Depreciation and amortization |
|
8,569 |
|
|
|
18,867 |
|
|
|
1,372 |
|
|
|
573 |
|
|
|
618 |
|
|
|
29,999 |
|
||
Stock-based compensation(3) |
|
19,810 |
|
|
|
4,979 |
|
|
|
1,381 |
|
|
|
810 |
|
|
|
3,557 |
|
|
|
30,537 |
|
||
Acquisition-related costs(4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,424 |
|
|
|
2,424 |
|
||
Restructuring and reorganization(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,115 |
|
|
|
18,115 |
|
||
Adjusted EBITDA |
$ |
(47,307 |
) |
|
$ |
(13,987 |
) |
|
$ |
(11,176 |
) |
|
$ |
(2,837 |
) |
|
$ |
(17,154 |
) |
|
$ |
(92,461 |
) |
||
(1) Interest income includes |
(2) Interest expense includes |
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information. |
| (4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies. |
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022, October 2022, and March 2023 workforce reductions. |
|
Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance (unaudited, in millions) |
|||
|
Q3 2023 |
||
|
Low |
|
High |
Net loss |
(30) |
|
(21) |
Depreciation and amortization |
17 |
|
17 |
Stock-based compensation |
18 |
|
18 |
Adjusted EBITDA |
4 |
|
14 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230803933217/en/
Investor Relations
Meg Nunnally, 206-576-8610
ir@redfin.com
Public Relations
Mariam Sughayer, 206-876-1322
press@redfin.com
Source: Redfin Corporation
