SEATTLE–(BUSINESS WIRE)–
Redfin Corporation (NASDAQ: RDFN) today announced results for its fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024
Fourth quarter revenue was $244.3 million, an increase of 12% compared to the fourth quarter of 2023. Gross profit was $81.9 million, an increase of 12% year-over-year. Real estate services gross profit was $32.7 million, an increase of 9% year-over-year, and real estate services gross margin was 21.9%, compared to 22.5% in the fourth quarter of 2023.
Net loss was $36.4 million, compared to a net loss of $22.9 million in the fourth quarter of 2023. Net loss attributable to common stock was $36.7 million. Net loss per share attributable to common stock, diluted, was $0.29, compared to net loss per share, diluted, of $0.20 in the fourth quarter of 2023.
Adjusted EBITDA was $2.9 million, compared to adjusted EBITDA loss of $13.5 million in the fourth quarter of 2023.
Full Year 2024
Full year revenue was $1,043.0 million, an increase of 7% year-over-year. Gross profit was $364.2 million, an increase of 10% year-over-year. Real estate services gross profit was $155.4 million, flat year-over-year, and real estate services gross margin was 24.2%, compared to 25.2% in 2023.
Total net loss was $164.8 million, compared to a net loss of $130.0 million in 2023. Total net loss attributable to common stock was $165.9 million. Net loss per share attributable to common stock, diluted, was $1.36, compared to a net loss per share, diluted, of $1.16 in 2023.
Adjusted EBITDA loss was $26.5 million, compared to adjusted EBITDA loss of $76.4 million in 2023.
“After recording our fourth straight quarter of revenue growth, with profits improving year-over-year in every business segment, we’re headed into 2025 with more demand, and a bigger and better sales force,” said Redfin CEO Glenn Kelman. “We incurred one-time costs from the transition to paying Redfin agents entirely on commissions, but our agent census is now 25% higher than it was just six months ago, and the new hires are out-performing tenured Redfin agents at meeting customers and winning offers. We now expect real-estate-services gross margins to improve year-over-year throughout 2025, starting in the first quarter. And we expect to connect our agents with significantly more demand in 2025. A Zillow rentals partnership will let us compete better for traffic, by doubling the number of high-quality apartment listings on our sites. The $100 million we got from that partnership, coupled with further cost savings from restructurings, will let us increase advertising 38% while still earning a full-year adjusted-EBITDA profit. Already January demand for our agents is up 5%, setting us up for our best year in many years.”
Fourth Quarter and Full Year Highlights
- #1 brokerage website for 2024, with 7x the traffic of our next closest brokerage competitor.
- Our agents and partners helped approximately 61,000 customers buy or sell a home in 2024, resulting in a market share of 0.76% of U.S. existing home sales.
- Achieved mortgage attach rate (excluding cash transactions) of 27% for 2024, up from 24% in 2023.1
- Maintained momentum in loyalty sales, with 38% of sales coming from loyalty customers in the fourth quarter, compared to 36% in the fourth quarter of 2023.
- Welcomed 399 new Redfin agents in the fourth quarter following the nationwide expansion of Redfin Next. Redfin Next continues to attract high-quality talent and help existing Redfin agents thrive.
- Average lead agents of 1,927 in the fourth quarter, up 14% compared to the fourth quarter of 2023 and marking Redfin’s third straight quarter of sequential agent growth.
- Increased participation in Redfin Teams, with more than 250 active teams nationwide and 31% of Redfin agents now belonging to a team. The program has improved agent performance in our pilot markets, including a 13% lift in the number of web contacts who go on to close with Redfin within 90 days.
(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 2024, compared to 19% in 2023.
Business Outlook
The following forward-looking statements reflect Redfin’s expectations as of February 27, 2025, and are subject to substantial uncertainty.
For the first quarter of 2025 we expect:
- Total revenue between $214 million and $225 million, representing a year-over-year change between (5)% and 0% compared to the first quarter of 2024. Included within total revenue are real estate services revenue between $126 million and $131 million, rentals revenue between $49 million and $51 million, mortgage revenue between $27 million and $30 million, title revenue of approximately $8 million and monetization revenue of approximately $4 million.
- Total net loss is expected to be between $94 million and $83 million. This guidance includes approximately $40 million in total marketing expenses, $21 million to $24 million in restructuring expense, $15 million in stock-based compensation, $9 million in depreciation and amortization, and $6 million in net interest expense. Adjusted EBITDA loss is expected to be between $39 million and $32 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, 2024, which is available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, 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 $1.8 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) |
|||||||
|
December 31, |
|||||||
|
2024 |
2023 |
||||||
|
Assets |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalents |
$ |
124,743 |
$ |
149,759 |
|||
|
Restricted cash |
229 |
1,241 |
|||||
|
Short-term investments |
— |
41,952 |
|||||
|
Accounts receivable, net of allowances for credit losses of $4,571 and $3,234 |
48,730 |
51,738 |
|||||
|
Loans held for sale |
152,426 |
159,587 |
|||||
|
Prepaid expenses |
26,853 |
33,296 |
|||||
|
Other current assets |
22,457 |
7,472 |
|||||
|
Total current assets |
375,438 |
445,045 |
|||||
|
Property and equipment, net |
41,302 |
46,431 |
|||||
|
Right-of-use assets, net |
23,713 |
31,763 |
|||||
|
Mortgage servicing rights, at fair value |
2,736 |
32,171 |
|||||
|
Long-term investments |
— |
3,149 |
|||||
|
Goodwill |
461,349 |
461,349 |
|||||
|
Intangible assets, net |
99,543 |
123,284 |
|||||
|
Other assets, noncurrent |
8,376 |
10,456 |
|||||
|
Total assets |
$ |
1,012,457 |
$ |
1,153,648 |
|||
|
Liabilities, mezzanine equity, and stockholders’ (deficit) equity |
|||||||
|
Current liabilities |
|||||||
|
Accounts payable |
$ |
16,847 |
$ |
10,507 |
|||
|
Accrued and other liabilities |
82,709 |
90,360 |
|||||
|
Warehouse credit facilities |
146,629 |
151,964 |
|||||
|
Convertible senior notes, net |
73,516 |
— |
|||||
|
Lease liabilities |
12,862 |
15,609 |
|||||
|
Total current liabilities |
332,563 |
268,440 |
|||||
|
Lease liabilities, noncurrent |
19,855 |
29,084 |
|||||
|
Convertible senior notes, net, noncurrent |
498,691 |
688,737 |
|||||
|
Term loan |
243,344 |
124,416 |
|||||
|
Deferred tax liabilities |
672 |
264 |
|||||
|
Total liabilities |
1,095,125 |
1,110,941 |
|||||
|
Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 0 and 40,000 shares issued and outstanding at December 31, 2024 and 2023, respectively |
— |
39,959 |
|||||
|
Stockholders’ (deficit) equity |
|||||||
|
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 126,389,289 and 117,372,171 shares issued and outstanding at December 31, 2024 and 2023, respectively |
126 |
117 |
|||||
|
Additional paid-in capital |
905,506 |
826,146 |
|||||
|
Accumulated other comprehensive loss |
(166 |
) |
(182 |
) |
|||
|
Accumulated deficit |
(988,134 |
) |
(823,333 |
) |
|||
|
Total stockholders’ (deficit) equity |
(82,668 |
) |
2,748 |
||||
|
Total liabilities, mezzanine equity, and stockholders’ (deficit) equity |
$ |
1,012,457 |
$ |
1,153,648 |
|||
|
Redfin Corporation and Subsidiaries Consolidated Statements of Comprehensive Loss (in thousands, except share and per share amounts, unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||
|
Revenue |
244,282 |
218,077 |
1,042,979 |
976,672 |
|||||||||||
|
Cost of revenue(1) |
162,342 |
144,926 |
678,778 |
646,853 |
|||||||||||
|
Gross profit |
81,940 |
73,151 |
364,201 |
329,819 |
|||||||||||
|
Operating expenses |
|||||||||||||||
|
Technology and development(1) |
34,951 |
44,098 |
163,927 |
183,294 |
|||||||||||
|
Marketing(1) |
22,157 |
20,332 |
114,481 |
117,863 |
|||||||||||
|
General and administrative(1) |
53,998 |
52,206 |
235,364 |
238,790 |
|||||||||||
|
Restructuring and reorganization |
952 |
768 |
5,684 |
7,927 |
|||||||||||
|
Total operating expenses |
112,058 |
117,404 |
519,456 |
547,874 |
|||||||||||
|
Loss from continuing operations |
(30,118 |
) |
(44,253 |
) |
(155,255 |
) |
(218,055 |
) |
|||||||
|
Interest income |
1,216 |
2,362 |
6,348 |
10,532 |
|||||||||||
|
Interest expense |
(8,283 |
) |
(4,233 |
) |
(27,780 |
) |
(9,524 |
) |
|||||||
|
Income tax benefit (expense) |
905 |
(97 |
) |
530 |
(979 |
) |
|||||||||
|
Gain on extinguishment of convertible senior notes |
— |
25,171 |
12,000 |
94,019 |
|||||||||||
|
Other expense, net |
(85 |
) |
(1,848 |
) |
(644 |
) |
(2,385 |
) |
|||||||
|
Net loss from continuing operations |
(36,365 |
) |
(22,898 |
) |
(164,801 |
) |
(126,392 |
) |
|||||||
|
Net loss from discontinued operations |
— |
— |
— |
(3,634 |
) |
||||||||||
|
Net loss |
$ |
(36,365 |
) |
$ |
(22,898 |
) |
$ |
(164,801 |
) |
$ |
(130,026 |
) |
|||
|
Dividends on convertible preferred stock |
(367 |
) |
(216 |
) |
(1,073 |
) |
(1,074 |
) |
|||||||
|
Net loss from continuing operations attributable to common stock—basic and diluted |
$ |
(36,732 |
) |
$ |
(23,114 |
) |
$ |
(165,874 |
) |
$ |
(127,466 |
) |
|||
|
Net loss attributable to common stock—basic and diluted |
$ |
(36,732 |
) |
$ |
(23,114 |
) |
$ |
(165,874 |
) |
$ |
(131,100 |
) |
|||
|
Net loss from continuing operations per share attributable to common stock—basic and diluted |
$ |
(0.29 |
) |
$ |
(0.20 |
) |
$ |
(1.36 |
) |
$ |
(1.13 |
) |
|||
|
Net loss per share attributable to common stock—basic and diluted |
$ |
(0.29 |
) |
$ |
(0.20 |
) |
$ |
(1.36 |
) |
$ |
(1.16 |
) |
|||
|
Weighted average shares of common stock—basic and diluted |
125,027,643 |
116,154,001 |
121,677,971 |
113,152,752 |
|||||||||||
|
Net loss |
$ |
(36,365 |
) |
$ |
(22,898 |
) |
$ |
(164,801 |
) |
$ |
(130,026 |
) |
|||
|
Other comprehensive (loss) income |
|||||||||||||||
|
Foreign currency translation adjustments |
(27 |
) |
2 |
(24 |
) |
(71 |
) |
||||||||
|
Unrealized gain on available-for-sale securities |
— |
73 |
40 |
690 |
|||||||||||
|
Comprehensive loss |
$ |
(36,392 |
) |
$ |
(22,823 |
) |
$ |
(164,785 |
) |
$ |
(129,407 |
) |
|||
|
(1) Includes stock-based compensation as follows: |
|||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||
|
Cost of revenue |
$ |
2,577 |
$ |
2,741 |
$ |
11,180 |
$ |
12,914 |
|||
|
Technology and development |
8,247 |
8,352 |
34,339 |
33,111 |
|||||||
|
Marketing |
1,116 |
1,312 |
5,027 |
5,148 |
|||||||
|
General and administrative |
5,277 |
3,148 |
20,613 |
19,528 |
|||||||
|
Total |
$ |
17,217 |
$ |
15,553 |
$ |
71,159 |
$ |
70,701 |
|||
|
Redfin Corporation and Subsidiaries Consolidated Statements of Cash Flows (in thousands, unaudited) |
|||||||
|
Year Ended December 31, |
|||||||
|
2024 |
2023 |
||||||
|
Operating Activities |
|||||||
|
Net loss |
$ |
(164,801 |
) |
$ |
(130,026 |
) |
|
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|||||||
|
Depreciation and amortization |
42,768 |
62,851 |
|||||
|
Stock-based compensation |
71,159 |
70,935 |
|||||
|
Amortization of debt discount and issuance costs |
3,116 |
3,620 |
|||||
|
Non-cash lease expense |
11,815 |
16,269 |
|||||
|
Impairment costs |
— |
1,948 |
|||||
|
Net (gain) loss on IRLCs, forward sales commitments, and loans held for sale |
(19 |
) |
(1,992 |
) |
|||
|
Change in fair value of mortgage servicing rights, net |
(892 |
) |
3,198 |
||||
|
Gain on extinguishment of convertible senior notes |
(12,000 |
) |
(94,019 |
) |
|||
|
Other |
644 |
(2,113 |
) |
||||
|
Change in assets and liabilities: |
|||||||
|
Accounts receivable, net |
2,864 |
3,286 |
|||||
|
Inventory |
— |
114,232 |
|||||
|
Prepaid expenses and other assets |
(8,229 |
) |
6,004 |
||||
|
Accounts payable |
6,371 |
(1,323 |
) |
||||
|
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent |
(5,401 |
) |
(19,085 |
) |
|||
|
Lease liabilities |
(15,682 |
) |
(18,998 |
) |
|||
|
Origination of mortgage servicing rights |
(255 |
) |
(565 |
) |
|||
|
Proceeds from sale of mortgage servicing rights |
30,582 |
1,457 |
|||||
|
Origination of loans held for sale |
(3,979,765 |
) |
(3,525,987 |
) |
|||
|
Proceeds from sale of loans originated as held for sale |
3,985,418 |
3,567,066 |
|||||
|
Net cash (used in) provided by operating activities |
(32,307 |
) |
56,758 |
||||
|
Investing activities |
|||||||
|
Purchases of property and equipment |
(11,209 |
) |
(12,056 |
) |
|||
|
Purchases of investments |
— |
(76,866 |
) |
||||
|
Sales of investments |
39,225 |
124,681 |
|||||
|
Maturities of investments |
6,395 |
61,723 |
|||||
|
Net cash provided by investing activities |
34,411 |
97,482 |
|||||
|
Financing activities |
|||||||
|
Redemption of convertible preferred stock, net of issuance costs |
(40,000 |
) |
— |
||||
|
Payment of dividends on convertible preferred stock |
(367 |
) |
— |
||||
|
Proceeds from the issuance of common stock pursuant to employee equity plans |
6,558 |
9,613 |
|||||
|
Tax payments related to net share settlements on restricted stock units |
(2,284 |
) |
(16,348 |
) |
|||
|
Borrowings from warehouse credit facilities |
4,016,909 |
3,532,119 |
|||||
|
Repayments to warehouse credit facilities |
(4,022,245 |
) |
(3,570,664 |
) |
|||
|
Principal payments under finance lease obligations |
(56 |
) |
(89 |
) |
|||
|
Repurchases of convertible senior notes |
(106,953 |
) |
(241,808 |
) |
|||
|
Repayments of convertible senior notes |
— |
(23,512 |
) |
||||
|
Repayment of term loan principal |
(2,188 |
) |
(313 |
) |
|||
|
Extinguishment of convertible senior notes associated with closing of term loan |
— |
(57,075 |
) |
||||
|
Payments of debt issuance costs |
(2,482 |
) |
(2,338 |
) |
|||
|
Proceeds from term loan |
125,000 |
125,000 |
|||||
|
Net cash used in financing activities |
(28,108 |
) |
(245,415 |
) |
|||
|
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
(24 |
) |
(71 |
) |
|||
|
Net change in cash, cash equivalents, and restricted cash |
(26,028 |
) |
(91,246 |
) |
|||
|
Cash, cash equivalents, and restricted cash: |
|||||||
|
Beginning of period |
151,000 |
242,246 |
|||||
|
End of period |
$ |
124,972 |
$ |
151,000 |
|||
|
Redfin Corporation and Subsidiaries Supplemental Financial Information and Business Metrics (unaudited) |
|||||||||||||||||||||||||||||||
|
Three Months Ended |
|||||||||||||||||||||||||||||||
|
Dec. 31, 2024 |
Sep. 30, 2024 |
Jun. 30, 2024 |
Mar. 31, 2024 |
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Mar. 31, 2023 |
||||||||||||||||||||||||
|
Monthly average visitors (in thousands) |
42,680 |
49,413 |
51,619 |
48,803 |
43,861 |
51,309 |
52,308 |
50,440 |
|||||||||||||||||||||||
|
Real estate services transactions |
|||||||||||||||||||||||||||||||
|
Brokerage |
11,441 |
13,324 |
14,178 |
10,039 |
10,152 |
13,075 |
13,716 |
10,301 |
|||||||||||||||||||||||
|
Partner |
2,922 |
3,440 |
3,395 |
2,691 |
3,186 |
4,351 |
3,952 |
3,187 |
|||||||||||||||||||||||
|
Total |
14,363 |
16,764 |
17,573 |
12,730 |
13,338 |
17,426 |
17,668 |
13,488 |
|||||||||||||||||||||||
|
Real estate services revenue per transaction |
|||||||||||||||||||||||||||||||
|
Brokerage |
$ |
12,249 |
$ |
12,363 |
$ |
12,545 |
$ |
12,433 |
$ |
12,248 |
$ |
12,704 |
$ |
12,376 |
$ |
11,556 |
|||||||||||||||
|
Partner |
3,027 |
3,025 |
2,859 |
2,367 |
2,684 |
2,677 |
2,756 |
2,592 |
|||||||||||||||||||||||
|
Aggregate |
10,373 |
10,447 |
10,674 |
10,305 |
9,963 |
10,200 |
10,224 |
9,438 |
|||||||||||||||||||||||
|
U.S. market share by units(1) |
0.72 |
% |
0.76 |
% |
0.77 |
% |
0.77 |
% |
0.72 |
% |
0.78 |
% |
0.75 |
% |
0.79 |
% |
|||||||||||||||
|
Revenue from top-10 Redfin markets as a percentage of real estate services revenue |
56 |
% |
56 |
% |
56 |
% |
55 |
% |
55 |
% |
56 |
% |
55 |
% |
53 |
% |
|||||||||||||||
|
Average number of lead agents |
1,927 |
1,757 |
1,719 |
1,658 |
1,692 |
1,744 |
1,792 |
1,876 |
|||||||||||||||||||||||
|
Mortgage originations by dollars (in millions) |
$ |
1,035 |
$ |
1,214 |
$ |
1,338 |
$ |
969 |
$ |
885 |
$ |
1,110 |
$ |
1,282 |
$ |
991 |
|||||||||||||||
|
Mortgage originations by units (in ones) |
2,434 |
2,900 |
3,192 |
2,365 |
2,293 |
2,786 |
3,131 |
2,444 |
|||||||||||||||||||||||
|
Year Ended December 31, |
|||||||
|
2024 |
2023 |
||||||
|
Monthly average visitors (in thousands) |
48,129 |
49,479 |
|||||
|
Real estate services transactions |
|||||||
|
Brokerage |
48,982 |
47,244 |
|||||
|
Partner |
12,448 |
14,676 |
|||||
|
Total |
61,430 |
61,920 |
|||||
|
Real estate services revenue per transaction |
|||||||
|
Brokerage |
$ |
12,403 |
$ |
12,260 |
|||
|
Partner |
2,838 |
2,681 |
|||||
|
Aggregate |
10,465 |
9,990 |
|||||
|
U.S. market share by units(1) |
0.76 |
% |
0.76 |
% |
|||
|
Revenue from top-10 markets as a percentage of real estate services revenue |
56 |
% |
55 |
% |
|||
|
Average number of lead agents |
1,765 |
1,776 |
|||||
|
Mortgage originations by dollars (in millions) |
$ |
4,556 |
$ |
4,268 |
|||
|
Mortgage originations by units (in ones) |
10,891 |
10,654 |
|||||
|
(1) Prior to the second quarter of 2022, we reported our U.S. market share based on the aggregate home value of our real estate services transactions, relative to the aggregate value of all U.S. home sales, which we computed based on the mean sale price of U.S. homes provided by the National Association of REALTORS® (“NAR”). Beginning in the second quarter of 2022, NAR (1) revised its methodology of computing the mean sale price, (2) restated its previously reported mean sale price beginning from January 2020 (and indicated that previously reported mean sale price prior to January 2020 is not comparable), and (3) discontinued publication of the mean sale price as part of its primary data set. Due to these changes, as of the second quarter of 2022, we report our U.S. market share based on the number of homes sold, rather than the dollar value of homes sold. Our market share by number of homes sold has historically been lower than our market share by dollar value of homes sold. We also stopped reporting the aggregate home value of our real estate services transactions. |
|||||||
|
Redfin Corporation and Subsidiaries Segment Reporting and Reconciliation of Adjusted EBITDA to Net Income (Loss) (unaudited, in thousands) |
|||||||||||||||||||||||||
|
Three Months Ended December 31, 2024 |
|||||||||||||||||||||||||
|
Real estate services |
Rentals |
Mortgage |
Title |
Monetization |
Corporate overhead |
Total |
|||||||||||||||||||
|
Revenue |
$ |
148,982 |
$ |
51,634 |
$ |
30,210 |
$ |
9,097 |
$ |
4,359 |
$ |
— |
$ |
244,282 |
|||||||||||
|
Cost of revenue |
116,315 |
12,271 |
26,910 |
6,718 |
128 |
— |
162,342 |
||||||||||||||||||
|
Gross profit |
32,667 |
39,363 |
3,300 |
2,379 |
4,231 |
— |
81,940 |
||||||||||||||||||
|
Operating expenses |
|||||||||||||||||||||||||
|
Technology and development |
20,914 |
11,438 |
696 |
114 |
755 |
1,034 |
34,951 |
||||||||||||||||||
|
Marketing |
10,022 |
11,353 |
767 |
14 |
— |
1 |
22,157 |
||||||||||||||||||
|
General and administrative |
17,616 |
21,653 |
6,341 |
794 |
662 |
6,932 |
53,998 |
||||||||||||||||||
|
Restructuring and reorganization |
— |
— |
— |
— |
— |
952 |
952 |
||||||||||||||||||
|
Total operating expenses |
48,552 |
44,444 |
7,804 |
922 |
1,417 |
8,919 |
112,058 |
||||||||||||||||||
|
(Loss) income from continuing operations |
(15,885 |
) |
(5,081 |
) |
(4,504 |
) |
1,457 |
2,814 |
(8,919 |
) |
(30,118 |
) |
|||||||||||||
|
Interest income, interest expense, income tax benefit, gain on extinguishment of convertible senior notes, and other expense, net |
(31 |
) |
132 |
(6 |
) |
220 |
63 |
(6,625 |
) |
(6,247 |
) |
||||||||||||||
|
Net (loss) income from continuing operations |
$ |
(15,916 |
) |
$ |
(4,949 |
) |
$ |
(4,510 |
) |
$ |
1,677 |
$ |
2,877 |
$ |
(15,544 |
) |
$ |
(36,365 |
) |
||||||
|
Three Months Ended December 31, 2024 |
|||||||||||||||||||||||||||
|
Real estate services |
Rentals |
Mortgage |
Title |
Monetization |
Corporate overhead |
Total |
|||||||||||||||||||||
|
Net (loss) income from continuing operations |
$ |
(15,916 |
) |
$ |
(4,949 |
) |
$ |
(4,510 |
) |
$ |
1,677 |
$ |
2,877 |
$ |
(15,544 |
) |
$ |
(36,365 |
) |
||||||||
|
Interest income(1) |
(27 |
) |
(132 |
) |
(3,199 |
) |
(220 |
) |
(63 |
) |
(775 |
) |
(4,416 |
) |
|||||||||||||
|
Interest expense(2) |
— |
— |
2,962 |
— |
— |
8,276 |
11,238 |
||||||||||||||||||||
|
Income tax expense |
— |
— |
— |
— |
— |
(905 |
) |
(905 |
) |
||||||||||||||||||
|
Depreciation and amortization |
3,143 |
5,150 |
881 |
28 |
87 |
140 |
9,429 |
||||||||||||||||||||
|
Stock-based compensation(3) |
10,177 |
3,465 |
375 |
284 |
304 |
2,612 |
17,217 |
||||||||||||||||||||
|
Restructuring and reorganization(4) |
— |
— |
— |
— |
— |
952 |
952 |
||||||||||||||||||||
|
Adjusted EBITDA |
$ |
(2,623 |
) |
$ |
3,534 |
$ |
(3,491 |
) |
$ |
1,769 |
$ |
3,205 |
$ |
(5,244 |
) |
$ |
(2,850 |
) |
|||||||||
|
(1) Interest income includes $3.2 million of interest income related to originated mortgage loans for the three months ended December 31, 2024. |
|||||||||||||||||||||||||||
|
(2) Interest expense includes $3.0 million of interest expense related to our warehouse credit facilities for the three months ended December 31, 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. |
|||||||||||||||||||||||||||
|
Three Months Ended December 31, 2023 |
||||||||||||||||||||||||||
|
Real estate services |
Rentals |
Mortgage |
Title |
Monetization |
Corporate overhead |
Total |
||||||||||||||||||||
|
Revenue |
$ |
132,890 |
$ |
49,176 |
$ |
26,270 |
$ |
5,759 |
$ |
3,982 |
$ |
— |
$ |
218,077 |
||||||||||||
|
Cost of revenue |
103,000 |
11,070 |
25,070 |
5,633 |
153 |
— |
144,926 |
|||||||||||||||||||
|
Gross profit |
29,890 |
38,106 |
1,200 |
126 |
3,829 |
— |
73,151 |
|||||||||||||||||||
|
Operating expenses |
||||||||||||||||||||||||||
|
Technology and development |
25,551 |
15,853 |
694 |
91 |
938 |
971 |
44,098 |
|||||||||||||||||||
|
Marketing |
7,897 |
11,443 |
942 |
13 |
1 |
36 |
20,332 |
|||||||||||||||||||
|
General and administrative |
17,854 |
20,807 |
4,689 |
672 |
296 |
7,888 |
52,206 |
|||||||||||||||||||
|
Restructuring and reorganization |
— |
503 |
— |
— |
— |
265 |
768 |
|||||||||||||||||||
|
Total operating expenses |
51,302 |
48,606 |
6,325 |
776 |
1,235 |
9,160 |
117,404 |
|||||||||||||||||||
|
(Loss) income from continuing operations |
(21,412 |
) |
(10,500 |
) |
(5,125 |
) |
(650 |
) |
2,594 |
(9,160 |
) |
(44,253 |
) |
|||||||||||||
|
Interest income, interest expense, income tax benefit, gain on extinguishment of convertible senior notes, and other expense, net |
18 |
100 |
(168 |
) |
131 |
106 |
21,168 |
21,355 |
||||||||||||||||||
|
Net (loss) income from continuing operations |
$ |
(21,394 |
) |
$ |
(10,400 |
) |
$ |
(5,293 |
) |
$ |
(519 |
) |
$ |
2,700 |
$ |
12,008 |
$ |
(22,898 |
) |
|||||||
|
Three Months Ended December 31, 2023 |
|||||||||||||||||||||||||||
|
Real estate services |
Rentals |
Mortgage |
Title |
Monetization |
Corporate overhead |
Total |
|||||||||||||||||||||
|
Net (loss) income from continuing operations |
$ |
(21,394 |
) |
$ |
(10,400 |
) |
$ |
(5,293 |
) |
$ |
(519 |
) |
$ |
2,700 |
$ |
12,008 |
$ |
(22,898 |
) |
||||||||
|
Interest income(1) |
(18 |
) |
(100 |
) |
(2,176 |
) |
(131 |
) |
(106 |
) |
(2,007 |
) |
(4,538 |
) |
|||||||||||||
|
Interest expense(2) |
— |
— |
2,318 |
— |
— |
4,132 |
6,450 |
||||||||||||||||||||
|
Income tax expense |
— |
— |
68 |
— |
— |
29 |
97 |
||||||||||||||||||||
|
Depreciation and amortization |
3,201 |
9,808 |
935 |
28 |
218 |
255 |
14,445 |
||||||||||||||||||||
|
Stock-based compensation(3) |
10,961 |
3,073 |
(1,088 |
) |
217 |
333 |
2,057 |
15,553 |
|||||||||||||||||||
|
Restructuring and reorganization(4) |
— |
503 |
— |
— |
— |
265 |
768 |
||||||||||||||||||||
|
Impairment(5) |
— |
— |
— |
— |
— |
1,835 |
1,835 |
||||||||||||||||||||
|
Gain on extinguishment of convertible senior notes |
— |
— |
— |
— |
— |
(25,171 |
) |
(25,171 |
) |
||||||||||||||||||
|
Adjusted EBITDA |
$ |
(7,250 |
) |
$ |
2,884 |
$ |
(5,236 |
) |
$ |
(405 |
) |
$ |
3,145 |
$ |
(6,597 |
) |
$ |
(13,459 |
) |
||||||||
|
(1) Interest income includes $2.2 million of interest income related to originated mortgage loans for the three months ended December 31, 2023. |
|||||||||||||||||||||||||||
|
(2) Interest expense includes $2.2 million of interest expense related to our warehouse credit facilities for the three months ended December 31, 2023. |
|||||||||||||||||||||||||||
|
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. |
|||||||||||||||||||||||||||
|
(4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities. |
|||||||||||||||||||||||||||
|
(5) Impairment consists of an impairment loss due to subleasing one of our operating leases. |
|||||||||||||||||||||||||||
|
Year Ended December 31, 2024 |
|||||||||||||||||||||||||
|
Real estate services |
Rentals |
Mortgage |
Title |
Monetization |
Corporate overhead |
Total |
|||||||||||||||||||
|
Revenue |
$ |
642,867 |
$ |
203,739 |
$ |
139,829 |
$ |
37,509 |
$ |
19,035 |
$ |
— |
$ |
1,042,979 |
|||||||||||
|
Cost of revenue |
487,513 |
47,724 |
115,556 |
27,024 |
961 |
— |
678,778 |
||||||||||||||||||
|
Gross profit |
155,354 |
156,015 |
24,273 |
10,485 |
18,074 |
— |
364,201 |
||||||||||||||||||
|
Operating expenses |
|||||||||||||||||||||||||
|
Technology and development |
105,268 |
48,015 |
2,727 |
448 |
3,107 |
4,362 |
163,927 |
||||||||||||||||||
|
Marketing |
57,961 |
53,490 |
2,988 |
37 |
4 |
1 |
114,481 |
||||||||||||||||||
|
General and administrative |
74,794 |
88,447 |
25,428 |
3,215 |
1,520 |
41,960 |
235,364 |
||||||||||||||||||
|
Restructuring and reorganization |
— |
— |
— |
— |
— |
5,684 |
5,684 |
||||||||||||||||||
|
Total operating expenses |
238,023 |
189,952 |
31,143 |
3,700 |
4,631 |
52,007 |
519,456 |
||||||||||||||||||
|
(Loss) income from continuing operations |
(82,669 |
) |
(33,937 |
) |
(6,870 |
) |
6,785 |
13,443 |
(52,007 |
) |
(155,255 |
) |
|||||||||||||
|
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net |
(25 |
) |
197 |
(2,968 |
) |
690 |
283 |
(7,723 |
) |
(9,546 |
) |
||||||||||||||
|
Net (loss) income from continuing operations |
$ |
(82,694 |
) |
$ |
(33,740 |
) |
$ |
(9,838 |
) |
$ |
7,475 |
$ |
13,726 |
$ |
(59,730 |
) |
$ |
(164,801 |
) |
||||||
|
Year ended December 31, 2024 |
|||||||||||||||||||||||||||
|
Real estate services |
Rentals |
Mortgage |
Title |
Monetization |
Corporate overhead |
Total |
|||||||||||||||||||||
|
Net (loss) income from continuing operations |
$ |
(82,694 |
) |
$ |
(33,740 |
) |
$ |
(9,838 |
) |
$ |
7,475 |
$ |
13,726 |
$ |
(59,730 |
) |
$ |
(164,801 |
) |
||||||||
|
Interest income(1) |
(67 |
) |
(365 |
) |
(11,615 |
) |
(690 |
) |
(283 |
) |
(4,944 |
) |
(17,964 |
) |
|||||||||||||
|
Interest expense(2) |
— |
— |
14,208 |
— |
— |
24,798 |
39,006 |
||||||||||||||||||||
|
Income tax expense |
— |
109 |
— |
— |
— |
(639 |
) |
(530 |
) |
||||||||||||||||||
|
Depreciation and amortization |
12,445 |
25,038 |
3,660 |
109 |
673 |
843 |
42,768 |
||||||||||||||||||||
|
Stock-based compensation(3) |
44,423 |
13,443 |
1,038 |
1,119 |
1,157 |
9,979 |
71,159 |
||||||||||||||||||||
|
Restructuring and reorganization(4) |
— |
— |
— |
— |
— |
5,684 |
5,684 |
||||||||||||||||||||
|
Gain on extinguishment of convertible senior notes |
— |
— |
— |
— |
— |
(12,000 |
) |
(12,000 |
) |
||||||||||||||||||
|
Legal contingencies(5) |
— |
— |
— |
— |
— |
10,154 |
10,154 |
||||||||||||||||||||
|
Adjusted EBITDA |
$ |
(25,893 |
) |
$ |
4,485 |
$ |
(2,547 |
) |
$ |
8,013 |
$ |
15,273 |
$ |
(25,855 |
) |
$ |
(26,524 |
) |
|||||||||
|
(1) Interest income includes $11.6 million of interest income related to originated mortgage loans for the year ended December 31, 2024. |
|||||||||||||||||||||||||||
|
(2) Interest expense includes $11.2 million of interest expense related to our warehouse credit facilities for the year ended December 31, 2024. |
|||||||||||||||||||||||||||
|
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. |
|||||||||||||||||||||||||||
|
(4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities. |
|||||||||||||||||||||||||||
|
(5) Legal contingencies includes expenses related to material contingent liabilities resulting from litigation or other legal proceedings. |
|||||||||||||||||||||||||||
|
Year Ended December 31, 2023 |
||||||||||||||||||||||||||
|
Real estate services |
Rentals |
Mortgage |
Title |
Monetization |
Corporate overhead |
Total |
||||||||||||||||||||
|
Revenue(1) |
$ |
618,577 |
$ |
184,812 |
$ |
134,108 |
$ |
25,095 |
$ |
14,080 |
$ |
— |
$ |
976,672 |
||||||||||||
|
Cost of revenue |
462,625 |
42,086 |
118,178 |
23,335 |
629 |
— |
646,853 |
|||||||||||||||||||
|
Gross profit |
155,952 |
142,726 |
15,930 |
1,760 |
13,451 |
— |
329,819 |
|||||||||||||||||||
|
Operating expenses |
||||||||||||||||||||||||||
|
Technology and development |
108,201 |
63,934 |
2,871 |
510 |
3,994 |
3,784 |
183,294 |
|||||||||||||||||||
|
Marketing |
59,746 |
53,952 |
4,064 |
54 |
6 |
41 |
117,863 |
|||||||||||||||||||
|
General and administrative |
76,851 |
94,252 |
25,012 |
2,776 |
1,241 |
38,658 |
238,790 |
|||||||||||||||||||
|
Restructuring and reorganization |
— |
503 |
— |
— |
— |
7,424 |
7,927 |
|||||||||||||||||||
|
Total operating expenses |
244,798 |
212,641 |
31,947 |
3,340 |
5,241 |
49,907 |
547,874 |
|||||||||||||||||||
|
(Loss) income from continuing operations |
(88,846 |
) |
(69,915 |
) |
(16,017 |
) |
(1,580 |
) |
8,210 |
(49,907 |
) |
(218,055 |
) |
|||||||||||||
|
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net |
59 |
215 |
(392 |
) |
348 |
364 |
91,069 |
91,663 |
||||||||||||||||||
|
Net (loss) income from continuing operations |
$ |
(88,787 |
) |
$ |
(69,700 |
) |
$ |
(16,409 |
) |
$ |
(1,232 |
) |
$ |
8,574 |
$ |
41,162 |
$ |
(126,392 |
) |
|||||||
|
(1) Included in revenue is $1.2 million from providing services to our discontinued properties segment. |
||||||||||||||||||||||||||
|
Year ended December 31, 2023 |
|||||||||||||||||||||||||||
|
Real estate services |
Rentals |
Mortgage |
Title |
Monetization |
Corporate overhead |
Total |
|||||||||||||||||||||
|
Net (loss) income from continuing operations |
$ |
(88,787 |
) |
$ |
(69,700 |
) |
$ |
(16,409 |
) |
$ |
(1,232 |
) |
$ |
8,574 |
$ |
41,162 |
$ |
(126,392 |
) |
||||||||
|
Interest income(1) |
(59 |
) |
(338 |
) |
(11,238 |
) |
(348 |
) |
(364 |
) |
(9,407 |
) |
(21,754 |
) |
|||||||||||||
|
Interest expense(2) |
— |
— |
12,055 |
— |
— |
9,417 |
21,472 |
||||||||||||||||||||
|
Income tax expense |
— |
123 |
289 |
— |
— |
567 |
979 |
||||||||||||||||||||
|
Depreciation and amortization |
16,020 |
39,876 |
3,864 |
137 |
865 |
2,000 |
62,762 |
||||||||||||||||||||
|
Stock-based compensation(3) |
44,002 |
14,653 |
1,466 |
885 |
1,361 |
8,334 |
70,701 |
||||||||||||||||||||
|
Acquisition-related costs(4) |
— |
— |
— |
— |
— |
8 |
8 |
||||||||||||||||||||
|
Restructuring and reorganization(5) |
— |
503 |
— |
— |
— |
7,424 |
7,927 |
||||||||||||||||||||
|
Impairment(6) |
— |
— |
— |
— |
— |
1,948 |
1,948 |
||||||||||||||||||||
|
Gain on extinguishment of convertible senior notes |
— |
— |
— |
— |
— |
(94,019 |
) |
(94,019 |
) |
||||||||||||||||||
|
Adjusted EBITDA |
(28,824 |
) |
(14,883 |
) |
(9,973 |
) |
(558 |
) |
10,436 |
(32,566 |
) |
(76,368 |
) |
||||||||||||||
|
(1) Interest income includes $11.2 million of interest income related to originated mortgage loans for the year ended December 31, 2023. |
|||||||||||||||||||||||||||
|
(2) Interest expense includes $11.9 million of interest expense related to our warehouse credit facilities for the year ended December 31, 2023. |
|||||||||||||||||||||||||||
|
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. |
|||||||||||||||||||||||||||
|
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies. |
|||||||||||||||||||||||||||
|
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities. |
|||||||||||||||||||||||||||
|
(6) Impairment consists of impairment losses due to subleasing two of our operating leases. |
|||||||||||||||||||||||||||
|
Redfin Corporation and Subsidiaries Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance (unaudited, in millions) |
|||||||
|
Three Months Ended March 31, 2025 |
|||||||
|
Low |
High |
||||||
|
Net loss |
$ |
(94 |
) |
$ |
(83 |
) |
|
|
Net interest expense |
6 |
6 |
|||||
|
Depreciation and amortization |
9 |
9 |
|||||
|
Stock-based compensation |
15 |
15 |
|||||
|
Restructuring and reorganization |
24 |
21 |
|||||
|
Adjusted EBITDA |
$ |
(39 |
) |
$ |
(32 |
) |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250227416933/en/
Investor Relations
Meg Nunnally
[email protected]
Press
Alina Ptaszynski
[email protected]
Source: Redfin Corporation
Released February 27, 2025
