Redfin Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Redfin (NASDAQ: RDFN) announced its Q2 2024 financial results with $295.2M in revenue, a 7% year-over-year increase. Gross profit rose by 9% to $109.6M. However, real estate services gross profit decreased by 4% to $53.7M, with a gross margin of 29%. The net loss was $27.9M, compared to $27.4M in Q2 2023. Net loss per share improved to $0.23 from $0.25 in the previous year. While Adjusted EBITDA broke even, up from a $6.9M loss in Q2 2023.

Additional Highlights:

• Market share increased to 0.77% of U.S. existing home sales.
• Mortgage attach rate rose to 28%.
• Loyalty sales comprised 37% of Q2 sales.
• Mobile apps and website saw 52 million average monthly users.

Positive

• Revenue increased by 7% to $295.2M.
• Gross profit rose by 9% to $109.6M.
• Adjusted EBITDA improved, breaking even from a loss of $6.9M.
• Market share increased to 0.77% of U.S. existing home sales.
• Net loss per share improved to $0.23 from $0.25.

Negative

• Real estate services gross profit decreased by 4% to $53.7M.
• Real estate services gross margin declined to 29% from 31%.
• Net loss increased slightly to $28.1M attributable to common stock.

Insights

Financial Analyst

Redfin's Q2 2024 results show mixed performance. Revenue increased 7% YoY to $295.2 million and gross profit grew 9% to $109.6 million. However, the net loss widened slightly to $27.9 million from $27.4 million in Q2 2023.

Positively, adjusted EBITDA improved to break-even from a $6.9 million loss last year, indicating better operational efficiency. The company's market share increased to 0.77% of U.S. existing home sales, up from 0.75% in Q2 2023.

Redfin's strategic shifts, including restructuring its brokerage sales force and integrating Rent operations, aim to boost profitability. The mortgage attach rate improvement to 28% and increased loyalty sales are promising signs for cross-selling opportunities.

Real Estate Market Analyst

Redfin's performance is noteworthy given the challenging real estate market conditions. The company's ability to grow revenue and market share in a "still-declining market" demonstrates resilience and effective strategy execution.

The expansion of the Redfin Next agent pay plan to 25 additional markets, covering 74% of brokerage revenues, could be a game-changer. Attracting over 200 top-producing agents under this plan may significantly boost Redfin's competitive position and revenue potential.

The launch of AI-powered Redfin Redesign for homeowners and the expansion of self-service rental tools show Redfin's commitment to innovation. These initiatives could drive user engagement and create new revenue streams in both the sales and rental markets, potentially offsetting challenges in the traditional brokerage business.

Tech Industry Analyst

Redfin's tech-driven approach is evident in its Q2 results. The company's focus on digital businesses and AI-powered tools aligns with industry trends and could provide a competitive edge. The Redfin Redesign feature, leveraging AI for home redesign visualization, demonstrates innovative use of technology to enhance user experience.

The stable monthly active user base of 52 million suggests strong platform engagement. However, the lack of growth in this metric warrants attention. Redfin's investments in self-service rental tools and machine learning for photo optimization on Rent.com show a strategic push into the rental market, diversifying revenue streams.

While these tech initiatives are promising, their impact on financial performance remains to be seen. The company's ability to monetize these innovations and drive user growth will be important for long-term success in the competitive proptech landscape.

SEATTLE--(BUSINESS WIRE)-- Redfin Corporation (NASDAQ: RDFN) today announced results for its second quarter ended June 30, 2024.

Second Quarter 2024

Second quarter revenue was $295.2 million, an increase of 7% compared to the second quarter of 2023. Gross profit was $109.6 million, an increase of 9% year-over-year. Real estate services gross profit was $53.7 million, a decrease of 4% year-over-year, and real estate services gross margin was 29%, compared to 31% in the second quarter of 2023.

Net loss was $27.9 million, compared to a net loss of $27.4 million in the second quarter of 2023. Net loss attributable to common stock was $28.1 million. Net loss per share attributable to common stock, diluted, was $0.23, compared to net loss per share, diluted, of $0.25 in the second quarter of 2023.

Adjusted EBITDA was flat, up from an adjusted EBITDA loss of $6.9 million in the second quarter of 2023.

“In a still-declining market, Redfin grew revenues, profits and market share,” said Redfin CEO Glenn Kelman. “The restructuring of our brokerage sales force, and the integration of Rent and Redfin operations, cap a series of seismic changes to increase Redfin’s profitability: we had already abandoned our own loan-origination system in 2022. In 2023, we closed our iBuying business, RedfinNow, and invested in digital businesses that immediately began contributing significant profits. Our adjusted EBITDA should be about break-even this year, and we plan to be significantly profitable in the years ahead.”

Second Quarter Highlights

• Second quarter market share was 0.77% of U.S. existing home sales by units, compared to 0.75% in the second quarter of 2023.
• Redfin’s mobile apps and website reached nearly 52 million average monthly users, compared to 52 million the second quarter of 2023.
• Achieved a 28% mortgage attach rate in the second quarter of 2024, up 4 points from the second quarter of 2023.¹
• Sequential step-up in loyalty sales, with 37% of sales coming from loyalty customers compared to 34% in the first quarter of 2024.
• Announced our Redfin Next agent pay plan will expand to 25 additional markets in August, bringing the program to markets accounting for approximately 74% of brokerage revenues. To date, Redfin has signed more than 200 top producing agents to join the brokerage under Redfin Next.
• Launched Redfin Redesign for homeowners, helping those who have claimed their home on Redfin use AI to redesign their spaces. We also partnered with five additional MLSs to make Redfin Redesign available for more than 240,000 for-sale listings.
• Launched products to help property managers connect with renters:
  • Self-service rental tools on Redfin.com that allow homeowners, investors, property managers and agents to list properties for rent on Redfin.
  • Rent.com photo optimization feature that uses machine learning to arrange rental listing photos to drive the most renter engagement.

(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 22% in the second quarter of 2024, compared to 19% in the second quarter of 2023.

Business Outlook

The following forward-looking statements reflect Redfin's expectations as of August 6, 2024, and are subject to substantial uncertainty.

For the third quarter of 2024 we expect:

• Total revenue between $273 million and $285 million, representing a year-over-year growth between 1% and 6% compared to the third quarter of 2023. Included within total revenue are real estate services revenue between $171 million and $179 million, rentals revenue between $50 million and $51 million, mortgage revenue between $36 million and $39 million and other revenue between $15 million and $16 million.
• Total net loss is expected to be between $30 million and $22 million, compared to net loss of $19 million in the third quarter of 2023. This guidance includes approximately $29 million in total marketing expenses, $18 million of stock-based compensation, $9 million in depreciation and amortization, and $6 million in net interest expense. Adjusted EBITDA is expected to be between $4 million and $12 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, as supplemented by our quarterly report for the quarter ended March 31, 2024, 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 and six months ended June 30, 2024 and 2023 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 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-F

Redfin Corporation and Subsidiaries Consolidated Balance Sheets (in thousands, except share and per share amounts, unaudited)
	June 30, 2024				December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	201,812			$	149,759
Restricted cash		756				1,241
Short-term investments		—				41,952
Accounts receivable, net of allowances for credit losses of $4,677 and $3,234		75,522				51,738
Loans held for sale		208,460				159,587
Prepaid expenses		28,002				33,296
Other current assets		9,872				7,472
Total current assets		524,424				445,045
Property and equipment, net		45,303				46,431
Right-of-use assets, net		28,389				31,763
Mortgage servicing rights, at fair value		2,695				32,171
Long-term investments		—				3,149
Goodwill		461,349				461,349
Intangible assets, net		108,832				123,284
Other assets, noncurrent		10,492				10,456
Total assets	$	1,181,484			$	1,153,648
Liabilities, mezzanine equity, and stockholders' (deficit) equity
Current liabilities
Accounts payable	$	11,612			$	10,507
Accrued and other liabilities		125,082				90,360
Warehouse credit facilities		202,559				151,964
Lease liabilities		14,123				15,609
Total current liabilities		353,376				268,440
Lease liabilities, noncurrent		25,193				29,084
Convertible senior notes, net, noncurrent		571,077				688,737
Term loan		243,961				124,416
Deferred tax liabilities		642				264
Total liabilities		1,194,249				1,110,941
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, 2024 and December 31, 2023		39,981				39,959
Stockholders’ (deficit) equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 121,743,620 and 117,372,171 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		122				117
Additional paid-in capital		865,263				826,146
Accumulated other comprehensive loss		(144	)			(182	)
Accumulated deficit		(917,987	)			(823,333	)
Total stockholders’ (deficit) equity		(52,746	)			2,748
Total liabilities, mezzanine equity, and stockholders’ (deficit) equity	$	1,181,484			$	1,153,648

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,
	2024				2023				2024				2023
Revenue	$	295,203			$	275,556			$	520,682			$	489,639
Cost of revenue(1)		185,617				175,366				340,284				331,311
Gross profit		109,586				100,190				180,398				158,328
Operating expenses
Technology and development(1)		42,215				47,141				88,644				94,804
Marketing(1)		40,260				33,033				65,138				73,436
General and administrative(1)		54,705				61,765				122,578				131,204
Restructuring and reorganization		1,334				6,106				2,223				7,159
Total operating expenses		138,514				148,045				278,583				306,603
Loss from continuing operations		(28,928	)			(47,855	)			(98,185	)			(148,275	)
Interest income		1,461				2,704				3,293				6,110
Interest expense		(6,086	)			(1,766	)			(10,960	)			(3,688	)
Income tax expense		(559	)			(233	)			(387	)			(643	)
Gain on extinguishment of convertible senior notes		6,314				20,083				12,000				62,353
Other expense, net		(82	)			(145	)			(415	)			(379	)
Net loss from continuing operations		(27,880	)			(27,212	)			(94,654	)			(84,522	)
Net loss from discontinued operations		—				(146	)			—				(3,634	)
Net loss	$	(27,880	)		$	(27,358	)		$	(94,654	)		$	(88,156	)
Dividends on convertible preferred stock		(191	)			(297	)			(424	)			(523	)
Net loss from continuing operations attributable to common stock—basic and diluted	$	(28,071	)		$	(27,509	)		$	(95,078	)		$	(85,045	)
Net loss attributable to common stock—basic and diluted	$	(28,071	)		$	(27,655	)		$	(95,078	)		$	(88,679	)
Net loss from continuing operations per share attributable to common stock—basic and diluted	$	(0.23	)		$	(0.25	)		$	(0.80	)		$	(0.77	)
Net loss attributable to common stock per share—basic and diluted	$	(0.23	)		$	(0.25	)		$	(0.80	)		$	(0.80	)
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted		120,393,897				111,678,417				119,379,082				110,895,358
Net loss	$	(27,880	)		$	(27,358	)		$	(94,654	)		$	(88,156	)
Other comprehensive income (loss)
Foreign currency translation adjustments		1				—				(2	)			(58	)
Unrealized (loss) gain on available-for-sale debt securities		—				(17	)			40				407
Comprehensive loss	$	(27,879	)		$	(27,375	)		$	(94,616	)		$	(87,807	)

(1) Includes stock-based compensation as follows:
	Three Months Ended June 30,								Six Months Ended June 30,
	2024				2023				2024				2023
Cost of revenue	$	3,045			$	3,001			$	5,784			$	7,136
Technology and development		8,718				8,241				16,957				16,368
Marketing		1,349				1,254				2,780				2,499
General and administrative		5,119				5,025				10,119				10,345
Total	$	18,231			$	17,521			$	35,640			$	36,348

Redfin Corporation and Subsidiaries Consolidated Statements of Cash Flows (in thousands, unaudited)
	Six Months Ended June 30,
	2024				2023
Operating Activities
Net loss	$	(94,654	)		$	(88,156	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		23,855				34,146
Stock-based compensation		35,640				36,582
Amortization of debt discount and issuance costs		1,372				2,029
Non-cash lease expense		6,164				9,578
Impairment costs		—				113
Net gain on IRLCs, forward sales commitments, and loans held for sale		(2,196	)			(4,565	)
Change in fair value of mortgage servicing rights, net		(944	)			599
Gain on extinguishment of convertible senior notes		(12,000	)			(62,353	)
Other		380				(1,794	)
Change in assets and liabilities:
Accounts receivable, net		(23,928	)			(14,069	)
Inventory		—				114,232
Prepaid expenses and other assets		2,100				8,868
Accounts payable		1,135				2,812
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent		35,360				(4,522	)
Lease liabilities		(8,116	)			(10,790	)
Origination of mortgage servicing rights		(84	)			(579	)
Proceeds from sale of mortgage servicing rights		30,503				738
Origination of loans held for sale		(1,989,240	)			(1,922,690	)
Proceeds from sale of loans originated as held for sale		1,940,725				1,888,706
Net cash used in operating activities		(53,928	)			(11,115	)
Investing activities
Purchases of property and equipment		(6,795	)			(6,213	)
Purchases of investments		—				(76,866	)
Sales of investments		39,225				65,099
Maturities of investments		6,395				59,383
Net cash provided by investing activities		38,825				41,403
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans		2,158				5,665
Tax payments related to net share settlements on restricted stock units		(940	)			(11,096	)
Borrowings from warehouse credit facilities		1,987,822				1,920,487
Repayments to warehouse credit facilities		(1,937,227	)			(1,883,196	)
Principal payments under finance lease obligations		(46	)			(53	)
Repurchases of convertible senior notes		(106,953	)			(183,019	)
Repayment of term loan principal		(938	)			—
Payments of debt issuance costs		(2,203	)			—
Proceeds from term loan		125,000				—
Net cash provided by (used in) financing activities		66,673				(151,212	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(2	)			(58	)
Net change in cash, cash equivalents, and restricted cash		51,568				(120,982	)
Cash, cash equivalents, and restricted cash:
Beginning of period		151,000				242,246
End of period	$	202,568			$	121,264

Redfin Corporation and Subsidiaries Supplemental Financial Information and Business Metrics (unaudited)
	Three Months Ended
	Jun. 30, 2024				Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				Jun. 30, 2023				Mar. 31, 2023				Dec. 31, 2022				Sep. 30, 2022
Monthly average visitors (in thousands)		51,619				48,803				43,861				51,309				52,308				50,440				43,847				50,785
Real estate services transactions
Brokerage		14,178				10,039				10,152				13,075				13,716				10,301				12,743				18,245
Partner		3,395				2,691				3,186				4,351				3,952				3,187				2,742				3,507
Total		17,573				12,730				13,338				17,426				17,668				13,488				15,485				21,752
Real estate services revenue per transaction
Brokerage	$	12,545			$	12,433			$	12,248			$	12,704			$	12,376			$	11,556			$	10,914			$	11,103
Partner		2,859				2,367				2,684				2,677				2,756				2,592				2,611				2,556
Aggregate		10,674				10,305				9,963				10,200				10,224				9,438				9,444				9,725
U.S. market share by units		0.77	%			0.77	%			0.72	%			0.78	%			0.75	%			0.79	%			0.76	%			0.80	%
Revenue from top-10 Redfin markets as a percentage of real estate services revenue		56	%			55	%			55	%			56	%			55	%			53	%			57	%			58	%
Average number of lead agents		1,719				1,658				1,692				1,744				1,792				1,876				2,022				2,293
Mortgage originations by dollars (in millions)	$	1,338			$	969			$	885			$	1,110			$	1,282			$	991			$	1,036			$	1,557
Mortgage originations by units (in ones)		3,192				2,365				2,293				2,786				3,131				2,444				2,631				3,720

Redfin Corporation and Subsidiaries Supplemental Financial Information (unaudited, in thousands)
	Three Months Ended June 30, 2024
	Real estate services				Rentals				Mortgage				Other				Corporate overhead				Total
	(in thousands)
Revenue	$	187,569			$	50,927			$	40,179			$	16,528			$	—			$	295,203
Cost of revenue		133,863				11,630				32,528				7,596				—				185,617
Gross profit		53,706				39,297				7,651				8,932				—				109,586
Operating expenses
Technology and development		28,920				10,417				700				965				1,213				42,215
Marketing		23,855				15,749				648				8				—				40,260
General and administrative		19,140				20,242				6,519				910				7,894				54,705
Restructuring and reorganization		—				—				—				—				1,334				1,334
Total operating expenses		71,915				46,408				7,867				1,883				10,441				138,514
(Loss) income from continuing operations		(18,209	)			(7,111	)			(216	)			7,049				(10,441	)			(28,928	)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net		14				(42	)			1				180				895				1,048
Net (loss) income from continuing operations	$	(18,195	)		$	(7,153	)		$	(215	)		$	7,229			$	(9,546	)		$	(27,880	)
	Three Months Ended June 30, 2024
	Real estate services				Rentals				Mortgage				Other				Corporate overhead				Total
	(in thousands)
Net (loss) income from continuing operations	$	(18,195	)		$	(7,153	)		$	(215	)		$	7,229			$	(9,546	)		$	(27,880	)
Interest income(1)		(14	)			(51	)			(2,990	)			(180	)			(1,217	)			(4,452	)
Interest expense(2)		—				—				2,953				—				6,084				9,037
Income tax expense		—				38				—				—				521				559
Depreciation and amortization		3,116				4,972				920				242				207				9,457
Stock-based compensation(3)		11,525				3,125				476				600				2,505				18,231
Restructuring and reorganization(4)		—				—				—				—				1,334				1,334
Gain on extinguishment of convertible senior notes		—				—				—				—				(6,314	)			(6,314	)
Adjusted EBITDA	$	(3,568	)		$	931			$	1,144			$	7,891			$	(6,426	)		$	(28	)
(1) Interest income includes $3.0 million of interest income related to originated mortgage loans for the three months ended June 30, 2024.
(2) Interest expense includes $3.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2024.
(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.
(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.

	Three Months Ended June 30, 2023
	Real estate services				Rentals				Mortgage				Other				Corporate overhead				Total
	(in thousands)
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 $0.1 million from providing services to our discontinued properties segment.
	Three Months Ended June 30, 2023
	Real estate services				Rentals				Mortgage				Other				Corporate overhead				Total
	(in thousands)
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 $3.7 million of interest income related to originated mortgage loans for the three months ended June 30, 2023.
(2) Interest expense includes $4.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2023.
(3) Stock-based compensation consists of expenses related to 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.

	Six Months Ended June 30, 2024
	Real estate services				Rentals				Mortgage				Other				Corporate overhead				Total
	(in thousands)
Revenue	$	318,749			$	100,445			$	73,998			$	27,490			$	—			$	520,682
Cost of revenue		244,777				23,087				58,432				13,988				—				340,284
Gross profit		73,972				77,358				15,566				13,502				—				180,398
Operating expenses
Technology and development		57,427				25,929				1,356				1,797				2,135				88,644
Marketing		35,032				28,537				1,554				15				—				65,138
General and administrative		38,915				42,720				13,202				2,064				25,677				122,578
Restructuring and reorganization		—				—				—				—				2,223				2,223
Total operating expenses		131,374				97,186				16,112				3,876				30,035				278,583
(Loss) income from continuing operations		(57,402	)			(19,828	)			(546	)			9,626				(30,035	)			(98,185	)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net		(32	)			(35	)			4				424				3,170				3,531
Net (loss) income from continuing operations	$	(57,434	)		$	(19,863	)		$	(542	)		$	10,050			$	(26,865	)		$	(94,654	)
	Six Months Ended June 30, 2024
	Real estate services				Rentals				Mortgage				Other				Corporate overhead				Total
	(in thousands)
Net (loss) income from continuing operations	$	(57,434	)		$	(19,863	)		$	(542	)		$	10,050			$	(26,865	)		$	(94,654	)
Interest income(1)		(30	)			(122	)			(5,024	)			(424	)			(2,718	)			(8,318	)
Interest expense(2)		—				—				5,038				—				10,957				15,995
Income tax expense		—				98				—				—				289				387
Depreciation and amortization		6,300				14,811				1,884				440				420				23,855
Stock-based compensation(3)		22,913				6,463				752				1,100				4,412				35,640
Restructuring and reorganization(4)		—				—				—				—				2,223				2,223
Gain on extinguishment of convertible senior notes		—				—				—				—				(12,000	)			(12,000	)
Legal contingencies(5)		—				—				—				—				9,250				9,250
Adjusted EBITDA	$	(28,251	)		$	1,387			$	2,108			$	11,166			$	(14,032	)		$	(27,622	)
(1) Interest income includes $5.0 million of interest income related to originated mortgage loans for the six months ended June 30, 2024.
(2) Interest expense includes $5.0 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2024.
(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.
(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.
(5) Legal contingencies includes expenses related to material contingent liabilities resulting from litigation or other legal proceedings.

	Six Months Ended June 30, 2023
	Real estate services				Rentals				Mortgage				Other				Corporate overhead				Total
	(in thousands)
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 $1.2 million from providing services to our discontinued properties segment.
	Six Months Ended June 30, 2023
	Real estate services				Rentals				Mortgage				Other				Corporate overhead				Total
	(in thousands)
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 $6.2 million of interest income related to originated mortgage loans for the six months ended June 30, 2023.
(2) Interest expense includes $6.6 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2023.
(3) Stock-based compensation consists of expenses related to 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.
(6) Impairment consists of an impairment loss due to subleasing one of our operating leases.

Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance (unaudited, in millions)
	Three months ending September 30, 2024
	Low			High
Net loss	(30	)		(22	)
Net interest expense	6			6
Depreciation and amortization	9			9
Stock-based compensation	18			18
Adjusted EBITDA	4			12
Note: Figures may not sum due to rounding.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806269083/en/

Investor Relations

Meg Nunnally

ir@redfin.com

Public Relations

Mariam Sughayer

press@redfin.com

Source: Redfin Corporation

FAQ

What were Redfin's revenue results for Q2 2024?

Redfin reported Q2 2024 revenue of $295.2 million, a 7% increase year-over-year.

How did Redfin's Q2 2024 gross profit compare to the previous year?

Redfin's Q2 2024 gross profit was $109.6 million, a 9% increase from the previous year.

What was Redfin's net loss for Q2 2024?

Redfin reported a net loss of $27.9 million for Q2 2024, up from $27.4 million in Q2 2023.

How did Redfin's adjusted EBITDA perform in Q2 2024?

Redfin's adjusted EBITDA broke even in Q2 2024, improving from a loss of $6.9 million in Q2 2023.

What was Redfin's market share in Q2 2024?

Redfin's market share in Q2 2024 was 0.77% of U.S. existing home sales.

What were the changes in Redfin's mortgage attach rate in Q2 2024?

Redfin's mortgage attach rate increased to 28% in Q2 2024, up from 24% in Q2 2023.

How many average monthly users did Redfin's mobile apps and website reach in Q2 2024?

Redfin's mobile apps and website reached nearly 52 million average monthly users in Q2 2024.