Redfin Reports Third Quarter 2024 Financial Results

Rhea-AI Summary

Redfin (RDFN) reported Q3 2024 financial results with revenue of $278.0 million, up 3% year-over-year. The company posted a net loss of $33.8 million, wider than the $19.0 million loss in Q3 2023. Gross profit increased 4% to $101.9 million, while real estate services gross margin declined to 28% from 30%. Market share was 0.76% of U.S. existing home sales, slightly down from 0.78% in Q3 2023.

Notable operational highlights include a 27% mortgage attach rate, up from 22% year-over-year, and 37% of sales from loyalty customers. The company has transitioned to the Redfin Next agent pay plan and launched Redfin Teams nationwide, with over 180 agents joining since September.

Positive

• Revenue increased 3% year-over-year to $278.0 million
• Gross profit grew 4% to $101.9 million
• Mortgage attach rate improved to 27% from 22% year-over-year
• Loyalty sales increased to 37% from 36% year-over-year
• Successfully hired 500+ agents under new Redfin Next plan

Negative

• Net loss widened to $33.8 million from $19.0 million year-over-year
• Real estate services gross profit decreased 10% year-over-year
• Real estate services gross margin declined to 28% from 30%
• Market share decreased to 0.76% from 0.78% year-over-year
• Adjusted EBITDA declined to $3.9 million from $7.7 million

Insights

Financial Analyst

Redfin's Q3 2024 results present a mixed picture. While revenue increased by 3% to $278.0 million, the net loss widened significantly to $33.8 million from $19.0 million year-over-year. The decline in real estate services gross margin from 30% to 28% and market share reduction to 0.76% raises concerns.

The transition to a commission-based model through Redfin Next and the expansion of Teams program shows strategic adaptation to market conditions. The improved mortgage attach rate of 27% and loyalty sales at 37% demonstrate successful cross-selling initiatives. However, the increased losses and declining EBITDA ($3.9 million vs $7.7 million) suggest challenges in maintaining profitability during this transition period.

Market Research Analyst

The real estate market context is important here. Despite challenging market conditions with record low U.S. home sales, Redfin's strategic initiatives in technology and service expansion are noteworthy. The nationwide expansion of rental tools and AI-powered Redfin Redesign represents meaningful diversification efforts.

The plan to hire hundreds of agents by spring 2024 signals confidence in market recovery, but also increases operational risk given the current market uncertainty. The focus on digital businesses and cost reduction at headquarters level indicates a shift toward a more scalable model, though execution risks remain in the near term.

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

Third Quarter 2024

Third quarter revenue was $278.0 million, an increase of 3% compared to the third quarter of 2023. Gross profit was $101.9 million, an increase of 4% year-over-year. Real estate services gross profit was $48.7 million, a decrease of 10% year-over-year, and real estate services gross margin was 28%, compared to 30% in the third quarter of 2023.

Net loss was $33.8 million, compared to a net loss of $19.0 million in the third quarter of 2023. Net loss attributable to common stock was $34.1 million. Net loss per share attributable to common stock, diluted, was $0.28, compared to net loss per share, diluted, of $0.17 in the third quarter of 2023.

Adjusted EBITDA was $3.9 million, down from an adjusted EBITDA of $7.7 million in the third quarter of 2023.

“Redfin’s third-quarter results were within our guidance range, and we’re now forecasting fourth-quarter growth in market share and revenues,” said Redfin CEO Glenn Kelman. “Already, shifting our real estate agents to a commissions-based model has improved close rates, with industry-leading attach rates for mortgage and title services. And now, the growth in our digital businesses and our reductions in headquarters costs will let us fund more demand-generation. With plans to hire hundreds of agents between now and next spring, we’re emerging from a year of record low U.S. home sales ready to go on the attack.”

Third Quarter Highlights

• Third quarter market share was 0.76% of U.S. existing home sales by units, compared to 0.78% in the third quarter of 2023.
• Average lead agents of 1,757, up 1 percent compared to the third quarter of 2023 and marking Redfin’s second straight quarter of sequential agent growth.
• Achieved a 27% mortgage attach rate in the third quarter of 2024, up from 22% in the third quarter of 2023.¹
• Maintained momentum in loyalty sales, with 37% of sales coming from loyalty customers compared to 36% in the third quarter of 2023.
• Announced the nationwide expansion of our Redfin Next agent pay plan and transitioned all existing agents to the plan on October 27. To date, Redfin has hired more than 500 agents to join the brokerage under Next.
• Launched Redfin Teams nationwide, helping teams of up to five agents formally partner to expand their business and grow their career to a new level. More than 180 agents have joined the program since it launched in September, including over 50 who are new to the brokerage.
• Extended Redfin Redesign’s reach by partnering with five additional multiple listing services. The AI-powered home design tool is now available on more than 355,000 for-sale listings across the U.S. and to any U.S. homeowner who has claimed their home on Redfin.
• Expanded Redfin’s rental tools nationwide, which was announced on October 15. Property managers across the country can now use Redfin to list rental homes for free, connect with renters across Redfin’s family of sites, and manage the application and renter screening process.
• Supported agents and customers through the National Association of Realtors settlement changes by integrating a consumer-friendly fee agreement into our tour scheduling process and giving customers who commit to Redfin early a better deal through Sign & Save.

(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 21% in the third quarter of 2024, compared to 18% in the third quarter of 2023.

Business Outlook

The following forward-looking statements reflect Redfin's expectations as of November 7, 2024, and are subject to substantial uncertainty.

For the fourth quarter of 2024 we expect:

• Total revenue between $237 million and $247 million, representing a year-over-year growth between 9% and 13% compared to the fourth quarter of 2023. Included within total revenue are real estate services revenue between $144 million and $150 million, rentals revenue of $51 million, mortgage revenue between $28 million and $32 million and other revenue between $13 million and $14 million.
• Total net loss is expected to be between $32 million and $25 million, compared to net loss of $23 million in the fourth quarter of 2023. This guidance includes approximately $22 million in total marketing expenses, $18 million of stock-based compensation, $9 million in depreciation and amortization, and $7 million in net interest expense. Adjusted EBITDA is expected to be between $1 million and $8 million. Furthermore, we expect to pay a final dividend of 20,427 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, each 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 nine months ended September 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, and title insurance 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. 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 approximately 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)
	September 30, 2024				December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	165,660			$	149,759
Restricted cash		174				1,241
Short-term investments		—				41,952
Accounts receivable, net of allowances for credit losses of $3,945 and $3,234		74,971				51,738
Loans held for sale		212,921				159,587
Prepaid expenses		30,531				33,296
Other current assets		20,514				7,472
Total current assets		504,771				445,045
Property and equipment, net		43,312				46,431
Right-of-use assets, net		26,275				31,763
Mortgage servicing rights, at fair value		2,534				32,171
Long-term investments		—				3,149
Goodwill		461,349				461,349
Intangible assets, net		104,127				123,284
Other assets, noncurrent		8,705				10,456
Total assets	$	1,151,073			$	1,153,648
Liabilities, mezzanine equity, and stockholders' (deficit) equity
Current liabilities
Accounts payable	$	14,280			$	10,507
Accrued and other liabilities		101,040				90,360
Warehouse credit facilities		208,817				151,964
Lease liabilities		13,347				15,609
Total current liabilities		337,484				268,440
Lease liabilities, noncurrent		22,853				29,084
Convertible senior notes, net, noncurrent		571,644				688,737
Term loan		243,646				124,416
Deferred tax liabilities		647				264
Total liabilities		1,176,274				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 September 30, 2024 and December 31, 2023		39,992				39,959
Stockholders’ (deficit) equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 123,945,380 and 117,372,171 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively		124				117
Additional paid-in capital		886,592				826,146
Accumulated other comprehensive loss		(140	)			(182	)
Accumulated deficit		(951,769	)			(823,333	)
Total stockholders’ (deficit) equity		(65,193	)			2,748
Total liabilities, mezzanine equity, and stockholders’ (deficit) equity	$	1,151,073			$	1,153,648

Redfin Corporation and Subsidiaries Consolidated Statements of Comprehensive Loss (in thousands, except share and per share amounts, unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
Revenue	$	278,015			$	268,956			$	798,697			$	758,595
Cost of revenue(1)		176,152				170,616				516,436				501,927
Gross profit		101,863				98,340				282,261				256,668
Operating expenses
Technology and development(1)		40,332				44,392				128,976				139,196
Marketing(1)		27,186				24,095				92,324				97,531
General and administrative(1)		58,788				55,380				181,366				186,584
Restructuring and reorganization		2,509				—				4,732				7,159
Total operating expenses		128,815				123,867				407,398				430,470
Loss from continuing operations		(26,952	)			(25,527	)			(125,137	)			(173,802	)
Interest income		1,839				2,060				5,132				8,170
Interest expense		(8,537	)			(1,603	)			(19,497	)			(5,291	)
Income tax expense		12				(239	)			(375	)			(882	)
Gain on extinguishment of convertible senior notes		—				6,495				12,000				68,848
Other expense, net		(144	)			(158	)			(559	)			(537	)
Net loss from continuing operations		(33,782	)			(18,972	)			(128,436	)			(103,494	)
Net loss from discontinued operations		—				—				—				(3,634	)
Net loss	$	(33,782	)		$	(18,972	)		$	(128,436	)		$	(107,128	)
Dividends on convertible preferred stock		(282	)			(335	)			(706	)			(858	)
Net loss from continuing operations attributable to common stock—basic and diluted	$	(34,064	)		$	(19,307	)		$	(129,142	)		$	(104,352	)
Net loss attributable to common stock—basic and diluted	$	(34,064	)		$	(19,307	)		$	(129,142	)		$	(107,986	)
Net loss from continuing operations per share attributable to common stock—basic and diluted	$	(0.28	)		$	(0.17	)		$	(1.07	)		$	(0.93	)
Net loss attributable to common stock per share—basic and diluted	$	(0.28	)		$	(0.17	)		$	(1.07	)		$	(0.96	)
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted		122,876,102				114,592,679				120,553,264				112,141,342
Net loss	$	(33,782	)		$	(18,972	)		$	(128,436	)		$	(107,128	)
Other comprehensive income
Foreign currency translation adjustments		4				(15	)			2				(73	)
Unrealized gain on available-for-sale debt securities		—				210				40				617
Comprehensive loss	$	(33,778	)		$	(18,777	)		$	(128,394	)		$	(106,584	)

(1)

Includes stock-based compensation as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023				2024		2023
Cost of revenue	$	2,819		$	3,037		$	8,603		$	10,173
Technology and development		9,135			8,391			26,092			24,759
Marketing		1,131			1,337			3,911			3,836
General and administrative		5,217			6,035			15,336			16,380
Total	$	18,302		$	18,800		$	53,942		$	55,148

Redfin Corporation and Subsidiaries Consolidated Statements of Cash Flows (in thousands, unaudited)
	Nine Months Ended September 30,
	2024				2023
Operating Activities
Net loss	$	(128,436	)		$	(107,128	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		33,340				48,443
Stock-based compensation		53,942				55,382
Amortization of debt discount and issuance costs		2,280				2,873
Non-cash lease expense		9,046				12,909
Impairment costs		—				113
Net gain on IRLCs, forward sales commitments, and loans held for sale		(1,809	)			(1,767	)
Change in fair value of mortgage servicing rights, net		(742	)			1,065
Gain on extinguishment of convertible senior notes		(12,000	)			(68,848	)
Other		548				(2,013	)
Change in assets and liabilities:
Accounts receivable, net		(23,377	)			(238	)
Inventory		—				114,232
Prepaid expenses and other assets		(10,141	)			9,696
Accounts payable		3,802				177
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent		11,772				(19,346	)
Lease liabilities		(11,993	)			(14,864	)
Origination of mortgage servicing rights		(170	)			(699	)
Proceeds from sale of mortgage servicing rights		30,549				1,122
Origination of loans held for sale		(3,071,291	)			(2,798,337	)
Proceeds from sale of loans originated as held for sale		3,018,634				2,858,656
Net cash (used in) provided by operating activities		(96,046	)			91,428
Investing activities
Purchases of property and equipment		(8,984	)			(9,235	)
Purchases of investments		—				(76,866	)
Sales of investments		39,225				124,681
Maturities of investments		6,395				59,383
Net cash provided by investing activities		36,636				97,963
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans		4,757				5,790
Tax payments related to net share settlements on restricted stock units		(1,574	)			(15,961	)
Borrowings from warehouse credit facilities		3,088,179				2,803,589
Repayments to warehouse credit facilities		(3,031,326	)			(2,861,779	)
Principal payments under finance lease obligations		(56	)			(73	)
Repurchases of convertible senior notes		(106,953	)			(212,401	)
Repayment of term loan principal		(1,563	)			—
Payments of debt issuance costs		(2,222	)			—
Proceeds from term loan		125,000				—
Net cash provided by (used in) financing activities		74,242				(304,347	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		2				(73	)
Net change in cash, cash equivalents, and restricted cash		14,834				(115,029	)
Cash, cash equivalents, and restricted cash:
Beginning of period		151,000				242,246
End of period	$	165,834			$	127,217

Redfin Corporation and Subsidiaries Supplemental Financial Information and Business Metrics (unaudited)
	Three Months Ended
	Sep. 30, 2024				Jun. 30, 2024				Mar. 31, 2024				Dec. 31, 2023				Sep. 30, 2023				Jun. 30, 2023				Mar. 31, 2023				Dec. 31, 2022
Monthly average visitors (in thousands)		49,413				51,619				48,803				43,861				51,309				52,308				50,440				43,847
Real estate services transactions
Brokerage		13,324				14,178				10,039				10,152				13,075				13,716				10,301				12,743
Partner		3,440				3,395				2,691				3,186				4,351				3,952				3,187				2,742
Total		16,764				17,573				12,730				13,338				17,426				17,668				13,488				15,485
Real estate services revenue per transaction
Brokerage	$	12,363			$	12,545			$	12,433			$	12,248			$	12,704			$	12,376			$	11,556			$	10,914
Partner		3,025				2,859				2,367				2,684				2,677				2,756				2,592				2,611
Aggregate		10,447				10,674				10,305				9,963				10,200				10,224				9,438				9,444
U.S. market share by units		0.76	%			0.77	%			0.77	%			0.72	%			0.78	%			0.75	%			0.79	%			0.76	%
Revenue from top-10 Redfin markets as a percentage of real estate services revenue		56	%			56	%			55	%			55	%			56	%			55	%			53	%			57	%
Average number of lead agents		1,757				1,719				1,658				1,692				1,744				1,792				1,876				2,022
Mortgage originations by dollars (in millions)	$	1,214			$	1,338			$	969			$	885			$	1,110			$	1,282			$	991			$	1,036
Mortgage originations by units (in ones)		2,900				3,192				2,365				2,293				2,786				3,131				2,444				2,631

Redfin Corporation and Subsidiaries Supplemental Financial Information (unaudited, in thousands)
	Three Months Ended September 30, 2024
	Real estate services				Rentals				Mortgage				Other			Corporate overhead				Total
	(in thousands)
Revenue	$	175,136			$	51,660			$	35,621			$	15,598		$	—			$	278,015
Cost of revenue		126,421				12,366				30,214				7,151			—				176,152
Gross profit		48,715				39,294				5,407				8,447			—				101,863
Operating expenses
Technology and development		26,927				10,648				675				889			1,193				40,332
Marketing		12,907				13,600				667				12			—				27,186
General and administrative		18,263				24,074				5,885				1,215			9,351				58,788
Restructuring and reorganization		—				—				—				—			2,509				2,509
Total operating expenses		58,097				48,322				7,227				2,116			13,053				128,815
(Loss) income from continuing operations		(9,382	)			(9,028	)			(1,820	)			6,331			(13,053	)			(26,952	)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net		38				100				(2,966	)			266			(4,268	)			(6,830	)
Net (loss) income from continuing operations	$	(9,344	)		$	(8,928	)		$	(4,786	)		$	6,597		$	(17,321	)		$	(33,782	)

	Three Months Ended September 30, 2024
	Real estate services				Rentals				Mortgage				Other				Corporate overhead				Total
	(in thousands)
Net (loss) income from continuing operations	$	(9,344	)		$	(8,928	)		$	(4,786	)		$	6,597			$	(17,321	)		$	(33,782	)
Interest income(1)		(10	)			(111	)			(3,392	)			(266	)			(1,451	)			(5,230	)
Interest expense(2)		—				—				6,208				—				5,565				11,773
Income tax expense		—				11				—				—				(23	)			(12	)
Depreciation and amortization		3,002				5,077				895				227				283				9,484
Stock-based compensation(3)		11,333				3,515				(89	)			588				2,955				18,302
Restructuring and reorganization(4)		—				—				—				—				2,509				2,509
Legal contingencies(5)		—				—				—				—				904				904
Adjusted EBITDA	$	4,981			$	(436	)		$	(1,164	)		$	7,146			$	(6,579	)		$	3,948

(1)		Interest income includes $3.4 million of interest income related to originated mortgage loans for the three months ended September 30, 2024.
(2)		Interest expense includes $3.2 million of interest expense related to our warehouse credit facilities for the three months ended September 30, 2024.
(3)		Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program.
(4)		Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.
(5)		Legal contingencies includes expenses related to significant contingent liabilities resulting from litigation or other legal proceedings.

	Three Months Ended September 30, 2023
	Real estate services				Rentals				Mortgage				Other			Corporate overhead				Total
	(in thousands)
Revenue	$	177,750			$	47,410			$	32,923			$	10,873		$	—			$	268,956
Cost of revenue		123,684				10,824				29,629				6,479			—				170,616
Gross profit		54,066				36,586				3,294				4,394			—				98,340
Operating expenses
Technology and development		25,711				15,813				800				1,133			935				44,392
Marketing		10,785				12,245				1,088				20			(43	)			24,095
General and administrative		18,418				21,838				6,670				952			7,502				55,380
Restructuring and reorganization		—				—				—				—			—				—
Total operating expenses		54,914				49,896				8,558				2,105			8,394				123,867
(Loss) income from continuing operations		(848	)			(13,310	)			(5,264	)			2,289			(8,394	)			(25,527	)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net		41				42				(73	)			207			6,338				6,555
Net (loss) income from continuing operations	$	(807	)		$	(13,268	)		$	(5,337	)		$	2,496		$	(2,056	)		$	(18,972	)

	Three Months Ended September 30, 2023
	Real estate services				Rentals				Mortgage				Other				Corporate overhead				Total
	(in thousands)
Net (loss) income from continuing operations	$	(807	)		$	(13,268	)		$	(5,337	)		$	2,496			$	(2,056	)		$	(18,972	)
Interest income(1)		(41	)			(81	)			(2,886	)			(207	)			(1,732	)			(4,947	)
Interest expense(2)		—				—				3,132				—				1,598				4,730
Income tax expense		—				37				70				—				132				239
Depreciation and amortization		3,123				9,681				947				233				312				14,296
Stock-based compensation(3)		11,151				4,255				473				574				2,347				18,800
Gain on extinguishment of convertible senior notes		—				—				—				—				(6,495	)			(6,495	)
Adjusted EBITDA	$	13,426			$	624			$	(3,601	)		$	3,096			$	(5,894	)		$	7,651

(1)		Interest income includes $2.9 million of interest income related to originated mortgage loans for the three months ended September 30, 2023.
(2)		Interest expense includes $3.1 million of interest expense related to our warehouse credit facilities for the three months ended September 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.

	Nine Months Ended September 30, 2024
	Real estate services				Rentals				Mortgage				Other			Corporate overhead				Total
	(in thousands)
Revenue	$	493,885			$	152,105			$	109,619			$	43,088		$	—			$	798,697
Cost of revenue		371,198				35,453				88,646				21,139			—				516,436
Gross profit		122,687				116,652				20,973				21,949			—				282,261
Operating expenses
Technology and development		84,354				36,577				2,031				2,686			3,328				128,976
Marketing		47,939				42,137				2,221				27			—				92,324
General and administrative		57,178				66,794				19,087				3,279			35,028				181,366
Restructuring and reorganization		—				—				—				—			4,732				4,732
Total operating expenses		189,471				145,508				23,339				5,992			43,088				407,398
(Loss) income from continuing operations		(66,784	)			(28,856	)			(2,366	)			15,957			(43,088	)			(125,137	)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net		6				65				(2,962	)			690			(1,098	)			(3,299	)
Net (loss) income from continuing operations	$	(66,778	)		$	(28,791	)		$	(5,328	)		$	16,647		$	(44,186	)		$	(128,436	)

	Nine Months Ended September 30, 2024
	Real estate services				Rentals				Mortgage				Other				Corporate overhead				Total
	(in thousands)
Net (loss) income from continuing operations	$	(66,778	)		$	(28,791	)		$	(5,328	)		$	16,647			$	(44,186	)		$	(128,436	)
Interest income(1)		(40	)			(233	)			(8,416	)			(690	)			(4,169	)			(13,548	)
Interest expense(2)		—				—				11,246				—				16,522				27,768
Income tax expense		—				109				—				—				266				375
Depreciation and amortization		9,302				19,888				2,779				667				704				33,340
Stock-based compensation(3)		34,246				9,978				663				1,688				7,367				53,942
Restructuring and reorganization(4)		—				—				—				—				4,732				4,732
Gain on extinguishment of convertible senior notes		—				—				—				—				(12,000	)			(12,000	)
Legal contingencies(5)		—				—				—				—				10,154				10,154
Adjusted EBITDA	$	(23,270	)		$	951			$	944			$	18,312			$	(20,610	)		$	(23,673	)

(1)		Interest income includes $8.4 million of interest income related to originated mortgage loans for the nine months ended September 30, 2024.
(2)		Interest expense includes $8.3 million of interest expense related to our warehouse credit facilities for the nine months ended September 30, 2024.
(3)		Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program.
(4)		Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.
(5)		Legal contingencies includes expenses related to significant contingent liabilities resulting from litigation or other legal proceedings.

	Nine Months Ended September 30, 2023
	Real estate services				Rentals				Mortgage				Other			Corporate overhead				Total
	(in thousands)
Revenue(1)	$	485,687			$	135,636			$	107,838			$	29,434		$	—			$	758,595
Cost of revenue		359,625				31,016				93,108				18,178			—				501,927
Gross profit		126,062				104,620				14,730				11,256			—				256,668
Operating expenses
Technology and development		82,650				48,081				2,177				3,475			2,813				139,196
Marketing		51,849				42,509				3,122				46			5				97,531
General and administrative		58,997				73,445				20,323				3,049			30,770				186,584
Restructuring and reorganization		—				—				—				—			7,159				7,159
Total operating expenses		193,496				164,035				25,622				6,570			40,747				430,470
(Loss) income from continuing operations		(67,434	)			(59,415	)			(10,892	)			4,686			(40,747	)			(173,802	)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net		41				115				(224	)			475			69,901				70,308
Net (loss) income from continuing operations	$	(67,393	)		$	(59,300	)		$	(11,116	)		$	5,161		$	29,154			$	(103,494	)

(1)

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

	Nine Months Ended September 30, 2023
	Real estate services				Rentals				Mortgage				Other				Corporate overhead				Total
	(in thousands)
Net (loss) income from continuing operations	$	(67,393	)		$	(59,300	)		$	(11,116	)		$	5,161			$	29,154			$	(103,494	)
Interest income(1)		(41	)			(238	)			(9,062	)			(475	)			(7,400	)			(17,216	)
Interest expense(2)		—				—				9,737				—				5,285				15,022
Income tax expense		—				123				222				—				537				882
Depreciation and amortization		12,819				30,068				2,929				756				1,745				48,317
Stock-based compensation(3)		33,041				11,580				2,554				1,696				6,277				55,148
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		—				—				—				—				(68,848	)			(68,848	)
Adjusted EBITDA	$	(21,574	)		$	(17,767	)		$	(4,736	)		$	7,138			$	(25,970	)		$	(62,909	)

(1)		Interest income includes $9.0 million of interest income related to originated mortgage loans for the nine months ended September 30, 2023.
(2)		Interest expense includes $9.7 million of interest expense related to our warehouse credit facilities for the nine months ended September 30, 2023.
(3)		Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program.
(4)		Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5)		Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.
(6)		Impairment consists of 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 December 31, 2024
	Low			High
Net loss	(32	)		(25	)
Net interest expense	6			6
Depreciation and amortization	9			9
Stock-based compensation	18			18
Adjusted EBITDA	1			8

Note: Figures may not sum due to rounding.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107894315/en/

Investor Relations

Meg Nunnally

ir@redfin.com

Public Relations

Mariam Sughayer

press@redfin.com

Source: Redfin Corporation

FAQ

What was Redfin's (RDFN) revenue in Q3 2024?

Redfin reported revenue of $278.0 million in Q3 2024, representing a 3% increase compared to Q3 2023.

How much was Redfin's (RDFN) net loss in Q3 2024?

Redfin reported a net loss of $33.8 million in Q3 2024, compared to a net loss of $19.0 million in Q3 2023.

What was Redfin's (RDFN) market share in Q3 2024?

Redfin's market share was 0.76% of U.S. existing home sales by units in Q3 2024, compared to 0.78% in Q3 2023.

What was Redfin's (RDFN) mortgage attach rate in Q3 2024?

Redfin achieved a 27% mortgage attach rate in Q3 2024, up from 22% in Q3 2023.