Redfin Corporation (NASDAQ: RDFN) today announced results for
its second quarter ended June 30, 2022.
Second Quarter 2022
Second quarter revenue was $606.9 million, an increase of 29%
compared to the second quarter of 2021. Gross profit was $118.0
million, a decrease of 6% year-over-year. Real estate services
gross profit was $74.1 million, a decrease of 16% year-over-year,
and real estate services gross margin was 29%, compared to 35% in
the second quarter of 2021.
Net loss was $78.1 million, compared to a net loss of $27.9
million in the second quarter of 2021. Net loss attributable to
common stock was $78.5 million. Net loss per share attributable to
common stock, diluted, was $0.73, compared to net loss per share,
diluted, of $0.29 in the second quarter of 2021.
Adjusted EBITDA loss was $28.6 million, compared to adjusted
EBITDA income of $2.8 million in the second quarter of 2021.
“The housing market took a turn for the worse in the second
quarter,” said Redfin CEO Glenn Kelman. “But I have never been more
proud of how this company has responded: we cut costs, grew
traffic, accelerated share gains and loyalty sales, lowered
voluntary attrition and, for the first time since April 2020,
improved the rate at which people buying homes stuck with a Redfin
agent. Our rentals business recorded its first quarter-over-quarter
revenue gain since 2017, and re-launched itself across every
platform as Rent. Best of all, the rate at which Redfin homebuyers
got a Redfin mortgage hit 15% in July, a near doubling of the
all-time high before 2022. For the quarter, title attach rates more
than doubled year over year. There will be more market ups and
downs in the road ahead, but our whole engine to drive traffic,
brokerage share, customer value and monetization is running more
efficiently than ever.”
Second Quarter Highlights
- Reached market share of 0.82% of U.S. existing home sales by
units in the second quarter of 2022, an increase of 5 basis points
from the second quarter of 2021.(1)
- Redfin’s mobile apps and website reached nearly 53 million
average monthly users in the second quarter, an increase of 9%
compared to the second quarter of 2021.
- Expanded listing coverage from 91% to 94% of the U.S.
population, adding 52 new MLSs.
- Made significant progress with the integration of Bay Equity,
ending the second quarter with attach rates of 11% for the month of
June, up from an attach rate of 6% in March.
- Improved customer retention, with loyalty mix at 35% in the
second quarter, up from 33% in the prior year.
- Relaunched our rentals business under a new brand, Rent., with
a newly redesigned consumer app experience, and updated solutions
website.
- Delivered improved software for customers, agents, partners and
renovations staff including:
- Added internet provider and speed data to U.S. home listings,
making our most-requested feature available to potential
homebuyers.
- Released Mobile Agent Tools in the Apple App Store, making it
easier for agents to have the latest and greatest version of our
software while on the go.
Business Outlook
The following forward-looking statements reflect Redfin's
expectations as of August 4, 2022, and are subject to substantial
uncertainty.
For the third quarter of 2022 we expect:
- Total revenue between $590 million and $627 million,
representing a year-over-year growth between 9% and 16% compared to
the third quarter of 2021. Included within total revenue are real
estate services segment revenue between $200 million and $208
million, properties segment revenue between $305 million and $330
million, rentals revenue between $37 million and $38 million and
mortgage revenue between $45 million and $48 million.
- Total net loss is expected to be between $87 million and $79
million, compared to net loss of $19 million in the third quarter
of 2021. This guidance includes approximately $37 million in total
marketing expenses, $19 million of stock-based compensation, $16
million of depreciation and amortization, and $5 million of net
interest expense. Adjusted EBITDA loss is expected to be between
$47 million and $39 million. Furthermore, we expect to pay a
quarterly dividend of 30,640 shares of common stock to our
preferred stockholder.
Conference Call
Redfin will webcast a conference call to discuss the results at
1:30 p.m. Pacific Time today. The webcast will be open to the
public at http://investors.redfin.com. The webcast will remain
available on the investor relations website for at least three
months following the conference call.
(1) Prior to the second quarter of 2022, we reported our U.S.
market share based on the aggregate home value of our real estate
services transactions, relative to the aggregate value of all U.S.
home sales, which we computed based on the mean sale price of U.S.
homes provided by the National Association of REALTORS® (“NAR”).
Beginning in the second quarter of 2022, NAR (1) revised its
methodology of computing the mean sale price, (2) restated its
previously reported mean sale price beginning from January 2020
(and indicated that previously reported mean sale price prior to
January 2020 is not comparable), and (3) discontinued publication
of the mean sale price as part of its primary data set. Due to
these changes, we are now reporting our U.S. market share based on
the number of homes sold, rather than the dollar value of homes
sold. Our market share by number of homes sold has historically
been lower than our market share by dollar value of homes sold.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of federal securities laws, including our future
operating results, as described under Business Outlook. We believe
our expectations related to these forward-looking statements are
reasonable, but actual results may turn out to be materially
different. For factors that could cause actual results to differ
materially from the forward-looking statements in this press
release, please see the risks and uncertainties identified under
the heading "Risk Factors" in our annual report for the year ended
December 31, 2021, as supplemented by our quarterly report for the
quarter ended June 30, 2022, both of which are available on our
Investor Relations website at http://investors.redfin.com and on
the SEC website at www.sec.gov. All forward-looking statements
reflect our beliefs and assumptions only as of the date of this
press release. We undertake no obligation to update forward-looking
statements to reflect future events or circumstances.
Non-GAAP Financial Measure
To supplement our consolidated financial statements that are
prepared and presented in accordance with GAAP, we also compute and
present adjusted EBITDA, which is a non-GAAP financial measure. We
believe adjusted EBITDA is useful for investors because it enhances
period-to-period comparability of our financial statements on a
consistent basis and provides investors with useful insight into
the underlying trends of the business. The presentation of this
financial measure is not intended to be considered in isolation or
as a substitute of, or superior to, our financial information
prepared and presented in accordance with GAAP. Our calculation of
adjusted EBITDA may be different from adjusted EBITDA or similar
non-GAAP financial measures used by other companies, limiting its
usefulness for comparison purposes. Our adjusted EBITDA, on a
consolidated basis and for each reportable segment, for the three
months ended June 30, 2022 and 2021 is presented below, along with
a reconciliation of adjusted EBITDA to net loss. The reconciliation
of adjusted EBITDA to net loss for the three months ended September
30, 2022 is also below.
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate
company. We help people find a place to live with brokerage,
instant home-buying (iBuying), rentals, lending, title insurance,
and renovations services. We sell homes for more money and charge
half the fee. We also run the country's #1 real estate brokerage
site. Our home-buying customers see homes first with on-demand
tours, and our lending and title services help them close quickly.
Customers selling a home can take an instant cash offer from Redfin
or have our renovations crew fix up their home to sell for top
dollar. Our rentals business empowers millions nationwide to find
apartments and houses for rent. Since launching in 2006, we've
saved customers more than $1 billion in commissions. We serve more
than 100 markets across the U.S. and Canada and employ over 6,000
people.
Redfin-F
Redfin Corporation and
Subsidiaries
Consolidated Balance
Sheets
(in thousands, except share
and per share amounts, unaudited)
June 30, 2022
December 31, 2021
Assets
Current assets
Cash and cash equivalents
$
379,922
$
591,003
Restricted cash
28,279
127,278
Short-term investments
82,506
33,737
Accounts receivable, net of allowances for
credit losses of $1,655 and $1,298
86,082
69,594
Inventory
377,518
358,221
Loans held for sale
306,364
35,759
Prepaid expenses
30,775
22,948
Other current assets
18,378
7,524
Total current assets
1,309,824
1,246,064
Property and equipment, net
59,709
58,671
Right-of-use assets, net
54,321
54,200
Mortgage servicing rights, at fair
value
35,050
—
Long-term investments
52,989
54,828
Goodwill
461,349
409,382
Intangible assets, net
181,766
185,929
Other assets, noncurrent
12,720
12,898
Total assets
$
2,167,728
$
2,021,972
Liabilities, mezzanine equity, and
stockholders' equity
Current liabilities
Accounts payable
$
20,237
$
12,546
Accrued and other liabilities
161,803
118,122
Warehouse credit facilities
298,303
33,043
Secured revolving credit facility
156,540
199,781
Convertible senior notes, net
—
23,280
Lease liabilities
18,180
15,040
Total current liabilities
655,063
401,812
Lease liabilities, noncurrent
50,920
55,222
Convertible senior notes, net,
noncurrent
1,239,873
1,214,017
Deferred tax liabilities
728
1,201
Total liabilities
1,946,584
1,672,252
Series A convertible preferred stock—par
value $0.001 per share; 10,000,000 shares authorized; 40,000 shares
issued and outstanding at June 30, 2022 and December 31, 2021,
respectively
39,891
39,868
Stockholders’ equity
Common stock—par value $0.001 per share;
500,000,000 shares authorized; 108,415,939 and 106,308,767 shares
issued and outstanding at June 30, 2022 and December 31, 2021,
respectively
108
106
Additional paid-in capital
723,251
682,084
Accumulated other comprehensive loss
(990
)
(174
)
Accumulated deficit
(541,116
)
(372,164
)
Total stockholders’ equity
181,253
309,852
Total liabilities, mezzanine equity, and
stockholders’ equity
$
2,167,728
$
2,021,972
Redfin Corporation and
Subsidiaries
Consolidated Statements of
Comprehensive Loss
(in thousands, except share
and per share amounts, unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Revenue
Service
$
344,309
$
298,870
$
561,902
$
474,463
Product
262,606
172,445
642,359
265,171
Total revenue
606,915
471,315
1,204,261
739,634
Cost of revenue(1)
Service
232,886
177,762
398,695
312,613
Product
256,026
167,417
615,026
258,527
Total cost of revenue
488,912
345,179
1,013,721
571,140
Gross profit
118,003
126,136
190,540
168,494
Operating expenses
Technology and development(1)
51,506
41,488
101,146
69,166
Marketing(1)
56,743
55,398
100,085
67,200
General and administrative(1)
71,733
59,567
130,699
96,957
Restructuring and reorganization
12,677
—
18,386
—
Total operating expenses
192,659
156,453
350,316
233,323
Loss from operations
(74,656
)
(30,317
)
(159,776
)
(64,829
)
Interest income
554
135
774
293
Interest expense
(3,620
)
(2,813
)
(7,481
)
(4,151
)
Income tax (expense) benefit
(159
)
5,052
(293
)
5,052
Other (expense) income, net
(265
)
65
(2,176
)
(27
)
Net loss
$
(78,146
)
$
(27,878
)
$
(168,952
)
$
(63,662
)
Dividends on convertible preferred
stock
(350
)
(1,878
)
(1,144
)
(4,214
)
Net loss attributable to common
stock—basic and diluted
$
(78,496
)
$
(29,756
)
$
(170,096
)
$
(67,876
)
Net loss per share attributable to common
stock—basic and diluted
$
(0.73
)
$
(0.29
)
$
(1.59
)
$
(0.65
)
Weighted-average shares to compute net
loss per share attributable to common stock—basic and diluted
107,396,575
104,391,337
107,032,381
103,912,212
Net loss
$
(78,146
)
$
(27,878
)
$
(168,952
)
$
(63,662
)
Other comprehensive income
Foreign currency translation
adjustments
34
—
38
—
Unrealized gain on available-for-sale debt
securities
217
84
778
134
Comprehensive loss
$
(77,895
)
$
(27,794
)
$
(168,136
)
$
(63,528
)
(1) Includes stock-based compensation as
follows:
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Cost of revenue
$
3,879
$
3,758
$
7,257
$
6,736
Technology and development
7,700
5,771
15,665
11,532
Marketing
924
535
1,996
1,078
General and administrative
4,310
3,679
8,683
6,981
Total
$
16,813
$
13,743
$
33,601
$
26,327
Redfin Corporation and
Subsidiaries
Consolidated Statements of
Cash Flows
(in thousands,
unaudited)
Six Months Ended June
30,
2022
2021
Operating Activities
Net loss
$
(168,952
)
$
(63,662
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Depreciation and amortization
31,140
18,018
Stock-based compensation
33,601
26,327
Amortization of debt discount and issuance
costs
2,899
2,203
Non-cash lease expense
7,096
5,448
Net loss on IRLCs, forward sales
commitments, and loans held for sale
2,721
238
Other
3,170
169
Change in assets and liabilities:
Accounts receivable, net
(6,791
)
(22,312
)
Inventory
(19,297
)
(199,845
)
Prepaid expenses and other assets
(2,852
)
(7,137
)
Accounts payable
5,964
15,766
Accrued and other liabilities, deferred
tax liabilities, and payroll tax liabilities, noncurrent
5,529
26,915
Lease liabilities
(8,042
)
(6,144
)
Change in fair value of mortgage servicing
rights, net
(878
)
—
Origination of mortgage servicing
rights
(964
)
—
Proceeds from sale of mortgage servicing
rights
774
—
Origination of loans held for sale
(1,641,377
)
(488,274
)
Proceeds from sale of loans originated as
held for sale
1,587,759
478,652
Net cash used in operating activities
(168,500
)
(213,638
)
Investing activities
Purchases of property and equipment
(12,131
)
(13,580
)
Purchases of investments
(82,184
)
(104,877
)
Sales of investments
12,946
89,536
Maturities of investments
19,425
92,843
Cash paid for acquisition, net of cash
acquired
(97,341
)
(608,000
)
Net cash used in investing activities
(159,285
)
(544,078
)
Financing activities
Proceeds from the issuance of common stock
pursuant to employee equity plans
9,258
12,496
Tax payments related to net share
settlements on restricted stock units
(3,743
)
(16,530
)
Borrowings from warehouse credit
facilities
1,628,684
464,250
Repayments to warehouse credit
facilities
(1,572,033
)
(456,854
)
Borrowings from secured revolving credit
facility
326,025
230,608
Repayments to secured revolving credit
facility
(369,266
)
(130,788
)
Proceeds from issuance of convertible
senior notes, net of issuance costs
—
561,529
Purchases of capped calls related to
convertible senior notes
—
(62,647
)
Payments for repurchases and conversions
of convertible senior notes
—
(1,925
)
Other financing payables
—
97
Principal payments under finance lease
obligations
(414
)
(353
)
Cash paid for secured revolving credit
facility issuance costs
(764
)
(305
)
Net cash provided by financing
activities
17,747
599,578
Effect of exchange rate changes on cash,
cash equivalents, and restricted cash
(42
)
—
Net change in cash, cash equivalents, and
restricted cash
(310,080
)
(158,138
)
Cash, cash equivalents, and restricted
cash:
Beginning of period
718,281
945,820
End of period
$
408,201
$
787,682
Redfin Corporation and
Subsidiaries
Supplemental Financial
Information and Business Metrics
(unaudited)
Three Months Ended
Jun. 30, 2022
Mar. 31, 2022
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Sep. 30, 2020
Jun. 30, 2020
Monthly average visitors (in
thousands)
52,698
51,287
44,665
49,147
48,437
46,202
44,135
49,258
42,537
Real estate services transactions
Brokerage
20,565
15,001
19,428
21,929
21,006
14,317
16,951
18,980
13,828
Partner
3,983
3,417
4,603
4,755
4,597
3,944
4,940
5,180
2,691
Total
24,548
18,418
24,031
26,684
25,603
18,261
21,891
24,160
16,519
Real estate services revenue per
transaction
Brokerage
$
11,692
$
11,191
$
10,900
$
11,107
$
11,307
$
10,927
$
10,751
$
10,241
$
9,296
Partner
2,851
2,814
2,819
2,990
3,195
3,084
3,123
2,988
2,417
Aggregate
10,258
9,637
9,352
9,661
9,850
9,233
9,030
8,686
8,175
U.S. market share by units(1)
0.82
%
0.79
%
0.78
%
0.78
%
0.77
%
0.75
%
0.68
%
0.70
%
0.66
%
Revenue from top-10 Redfin markets as a
percentage of real estate services revenue
59
%
57
%
61
%
62
%
64
%
62
%
63
%
63
%
63
%
Average number of lead agents
2,640
2,750
2,485
2,370
2,456
2,277
1,981
1,820
1,399
RedfinNow homes sold
423
617
600
388
292
171
83
37
162
Revenue per RedfinNow home sold (in
ones)
$
604,120
$
608,851
$
622,519
$
599,963
$
571,670
$
525,765
$
471,895
$
504,730
$
444,757
Mortgage originations by dollars (in
millions)
$
1,565
$
159
$
242
$
258
$
261
$
227
$
206
$
185
$
161
Mortgage originations by units (in
ones)
3,860
414
591
671
749
632
570
539
475
(1) Prior to the second quarter of 2022, we reported our U.S.
market share based on the aggregate home value of our real estate
services transactions, relative to the aggregate value of all U.S.
home sales, which we computed based on the mean sale price of U.S.
homes provided by the National Association of REALTORS® (“NAR”).
Beginning in the second quarter of 2022, NAR (1) revised its
methodology of computing the mean sale price, (2) restated its
previously reported mean sale price beginning from January 2020
(and indicated that previously reported mean sale price prior to
January 2020 is not comparable), and (3) discontinued publication
of the mean sale price as part of its primary data set. Due to
these changes, we are now reporting our U.S. market share based on
the number of homes sold, rather than the dollar value of homes
sold. Our market share by number of homes sold has historically
been lower than our market share by dollar value of homes sold.
Supplemental Financial
Information
Segment Reporting and
Reconciliation of Adjusted EBITDA to Net Income (Loss)
(unaudited, in
thousands)
Three Months Ended June 30,
2022
Real estate services
Properties
Rentals
Mortgage
Other
Corporate Overhead and
Intercompany Eliminations
Total
Revenue
$
251,809
$
262,606
$
38,248
$
53,098
$
5,894
$
(4,740
)
$
606,915
Cost of revenue
177,698
255,839
7,901
46,316
5,898
(4,740
)
488,912
Gross profit
74,111
6,767
30,347
6,782
(4
)
—
118,003
Operating expenses
Technology and development
27,696
4,684
14,871
1,904
1,189
1,162
51,506
Marketing
40,765
821
13,086
1,843
71
157
56,743
General and administrative
24,341
3,210
21,824
9,450
850
12,058
71,733
Restructuring and reorganization
—
—
—
—
—
12,677
12,677
Total operating expenses
92,802
8,715
49,781
13,197
2,110
26,054
192,659
Loss from operations
(18,691
)
(1,948
)
(19,434
)
(6,415
)
(2,114
)
(26,054
)
(74,656
)
Interest income, interest expense, income
tax expense, and other expense, net
(123
)
(1,245
)
232
(35
)
11
(2,330
)
(3,490
)
Net loss
$
(18,814
)
$
(3,193
)
$
(19,202
)
$
(6,450
)
$
(2,103
)
$
(28,384
)
$
(78,146
)
Three Months Ended June 30,
2022
Real estate services
Properties
Rentals
Mortgage
Other
Corporate Overhead and
Intercompany Eliminations
Total
Net loss
$
(18,814
)
$
(3,193
)
$
(19,202
)
$
(6,450
)
$
(2,103
)
$
(28,384
)
$
(78,146
)
Interest income(1)
—
(159
)
(1
)
(2,929
)
(12
)
(381
)
(3,482
)
Interest expense(2)
—
1,403
—
1,958
—
2,214
5,575
Income tax expense
—
—
(230
)
33
—
356
159
Depreciation and amortization
4,551
603
9,511
1,070
318
274
16,327
Stock-based compensation(3)
9,670
1,527
2,739
780
441
1,656
16,813
Acquisition-related costs(4)
—
—
—
—
—
1,507
1,507
Restructuring and reorganization(5)
—
—
—
—
—
12,677
12,677
Adjusted EBITDA
$
(4,593
)
$
181
$
(7,183
)
$
(5,538
)
$
(1,356
)
$
(10,081
)
$
(28,570
)
(1) Interest income includes $2.9 million of interest income
related to originated mortgage loans for the three months ended
June 30, 2022. (2) Interest expense includes $2.0 million of
interest expense related to our warehouse credit facilities for the
three months ended June 30, 2022. (3) Stock-based compensation
consists of expenses related to stock options, restricted stock
units, and our employee stock purchase program. See Note 12 to our
consolidated financial statements for more information. (4)
Acquisition-related costs consist of fees for external advisory,
legal, and other professional services incurred in connection with
our acquisition of other companies. (5) Restructuring and
reorganization expenses primarily consist of personnel-related
costs associated with employee terminations, furloughs, or
retention due to the restructuring and reorganization activities
from our acquisitions of Bay Equity and Rent., and from our June
2022 workforce reduction.
Three Months Ended June 30,
2021
Real estate services
Properties
Rentals
Mortgage
Other
Corporate Overhead and
Intercompany Eliminations
Total
Revenue
$
252,199
$
172,445
$
42,548
$
5,099
$
3,422
$
(4,398
)
$
471,315
Cost of revenue
164,125
167,420
7,570
6,832
3,630
(4,398
)
345,179
Gross profit
88,074
5,025
34,978
(1,733
)
(208
)
—
126,136
Operating expenses
Technology and development
20,010
3,080
13,568
2,536
479
1,815
41,488
Marketing
41,746
572
12,607
130
30
313
55,398
General and administrative
18,498
2,078
23,116
1,927
416
13,532
59,567
Total operating expenses
80,254
5,730
49,291
4,593
925
15,660
156,453
Income (loss) from operations
7,820
(705
)
(14,313
)
(6,326
)
(1,133
)
(15,660
)
(30,317
)
Interest income, interest expense, income
tax expense, and other expense, net
(3
)
(662
)
212
1
1
2,890
2,439
Net income (loss)
$
7,817
$
(1,367
)
$
(14,101
)
$
(6,325
)
$
(1,132
)
$
(12,770
)
$
(27,878
)
Three Months Ended June 30,
2021
Real estate services
Properties
Rentals
Mortgage
Other
Corporate Overhead and
Intercompany Eliminations
Total
Net income (loss)
$
7,817
$
(1,367
)
$
(14,101
)
$
(6,325
)
$
(1,132
)
$
(12,770
)
$
(27,878
)
Interest income(1)
—
(2
)
—
(414
)
(1
)
(131
)
(548
)
Interest expense(2)
—
664
—
407
—
2,149
3,220
Income tax expense
—
—
(212
)
—
—
(4,840
)
(5,052
)
Depreciation and amortization
3,180
412
9,110
313
167
495
13,677
Stock-based compensation(3)
9,042
1,239
113
770
191
2,388
13,743
Acquisition-related costs(4)
—
—
—
—
—
5,616
5,616
Restructuring and reorganization(5)
—
—
—
—
—
—
—
Adjusted EBITDA
$
20,039
$
946
$
(5,090
)
$
(5,249
)
$
(775
)
$
(7,093
)
$
2,778
(1) Interest income includes $0.4 million of interest income
related to originated mortgage loans for the three months ended
June 30, 2021. (2) Interest expense includes $0.4 million of
interest expense related to our warehouse credit facilities for the
three months ended June 30, 2021. (3) Stock-based compensation
consists of expenses related to stock options, restricted stock
units, and our employee stock purchase program. See Note 12 to our
consolidated financial statements for more information. (4)
Acquisition-related costs consist of fees for external advisory,
legal, and other professional services incurred in connection with
our acquisition of other companies. (5) Restructuring and
reorganization expenses primarily consist of personnel-related
costs associated with employee terminations, furloughs, or
retention due to the restructuring and reorganization activities
from our acquisitions of Bay Equity and Rent., and from our June
2022 workforce reduction.
Six Months Ended June 30,
2022
Real estate services
Properties
Rentals
Mortgage
Other
Corporate Overhead and
Intercompany Eliminations
Total
Revenue
$
429,295
$
642,359
$
76,292
$
56,015
$
10,263
$
(9,963
)
$
1,204,261
Cost of revenue
331,482
614,704
15,094
51,834
10,570
(9,963
)
1,013,721
Gross profit
97,813
27,655
61,198
4,181
(307
)
—
190,540
Operating expenses
Technology and development
54,435
8,803
29,154
4,251
2,225
2,278
101,146
Marketing
71,608
1,974
24,128
1,871
125
379
100,085
General and administrative
47,333
6,035
46,015
10,974
1,562
18,780
130,699
Restructuring and reorganization
—
—
—
—
—
18,386
18,386
Total operating expenses
173,376
16,812
99,297
17,096
3,912
39,823
350,316
Loss from operations
(75,563
)
10,843
(38,099
)
(12,915
)
(4,219
)
(39,823
)
(159,776
)
Interest income, interest expense, income
tax expense, and other expense, net
(123
)
(2,869
)
701
(35
)
12
(6,862
)
(9,176
)
Net (loss) income
$
(75,686
)
$
7,974
$
(37,398
)
$
(12,950
)
$
(4,207
)
$
(46,685
)
$
(168,952
)
Six Months Ended June 30,
2022
Real estate services
Properties
Rentals
Mortgage
Other
Corporate Overhead and
Intercompany Eliminations
Total
Net (loss) income
$
(75,686
)
$
7,974
$
(37,398
)
$
(12,950
)
$
(4,207
)
$
(46,685
)
$
(168,952
)
Interest income(1)
—
(184
)
(1
)
(3,247
)
(13
)
(575
)
(4,020
)
Interest expense(2)
—
3,052
—
2,235
—
4,427
9,714
Income tax expense
—
—
(434
)
33
—
694
293
Depreciation and amortization
8,569
1,141
18,867
1,372
573
618
31,140
Stock-based compensation(3)
19,810
3,064
4,979
1,381
810
3,557
33,601
Acquisition-related costs(4)
—
—
—
—
—
2,424
2,424
Restructuring and reorganization(5)
—
—
—
—
—
18,386
18,386
Adjusted EBITDA
$
(47,307
)
$
15,047
$
(13,987
)
$
(11,176
)
$
(2,837
)
$
(17,154
)
$
(77,414
)
(1) Interest income includes $3.2 million of interest income
related to originated mortgage loans for the six months ended June
30, 2022. (2) Interest expense includes $2.2 million of interest
expense related to our warehouse credit facilities for the six
months ended June 30, 2022. (3) Stock-based compensation consists
of expenses related to stock options, restricted stock units, and
our employee stock purchase program. See Note 12 to our
consolidated financial statements for more information. (4)
Acquisition-related costs consist of fees for external advisory,
legal, and other professional services incurred in connection with
our acquisition of other companies. (5) Restructuring and
reorganization expenses primarily consist of personnel-related
costs associated with employee terminations, furloughs, or
retention due to the restructuring and reorganization activities
from our acquisitions of Bay Equity and Rent., and from our June
2022 workforce reduction.
Six Months Ended June 30,
2021
Real estate services
Properties
Rentals
Mortgage
Other
Corporate Overhead and
Intercompany Eliminations
Total
Revenue
$
420,808
$
265,171
$
42,548
$
10,810
$
7,068
$
(6,771
)
$
739,634
Cost of revenue
292,342
258,551
7,570
12,701
6,747
(6,771
)
571,140
Gross profit
128,466
6,620
34,978
(1,891
)
321
—
168,494
Operating expenses
Technology and development
40,130
5,910
13,767
4,904
952
3,503
69,166
Marketing
52,928
779
12,611
264
63
555
67,200
General and administrative
42,429
4,507
23,149
3,352
933
22,587
96,957
Total operating expenses
135,487
11,196
49,527
8,520
1,948
26,645
233,323
Loss from operations
(7,021
)
(4,576
)
(14,549
)
(10,411
)
(1,627
)
(26,645
)
(64,829
)
Interest income, interest expense, income
tax expense, and other expense, net
(31
)
(1,082
)
212
2
1
2,065
1,167
Net loss
$
(7,052
)
$
(5,658
)
$
(14,337
)
$
(10,409
)
$
(1,626
)
$
(24,580
)
$
(63,662
)
Six Months Ended June 30,
2021
Real estate services
Properties
Rentals
Mortgage
Other
Corporate Overhead and
Intercompany Eliminations
Total
Net loss
$
(7,052
)
$
(5,658
)
$
(14,337
)
$
(10,409
)
$
(1,626
)
$
(24,580
)
$
(63,662
)
Interest income(1)
—
(7
)
—
(771
)
(1
)
(284
)
(1,063
)
Interest expense(2)
—
1,089
—
835
—
3,063
4,987
Income tax expense
—
—
(212
)
—
—
(4,840
)
(5,052
)
Depreciation and amortization
6,230
803
9,111
591
334
949
18,018
Stock-based compensation(3)
17,560
2,373
174
1,444
341
4,435
26,327
Acquisition-related costs(4)
—
—
—
—
—
7,723
7,723
Restructuring and reorganization(5)
—
—
—
—
—
—
—
Adjusted EBITDA
$
16,738
$
(1,400
)
$
(5,264
)
$
(8,310
)
$
(952
)
$
(13,534
)
$
(12,722
)
(1) Interest income includes $0.8 million of interest income
related to originated mortgage loans for the six months ended June
30, 2021. (2) Interest expense includes $0.8 million of interest
expense related to our warehouse credit facilities for the six
months ended June 30, 2021. (3) Stock-based compensation consists
of expenses related to stock options, restricted stock units, and
our employee stock purchase program. See Note 12 to our
consolidated financial statements for more information. (4)
Acquisition-related costs consist of fees for external advisory,
legal, and other professional services incurred in connection with
our acquisition of other companies. (5) Restructuring and
reorganization expenses primarily consist of personnel-related
costs associated with employee terminations, furloughs, or
retention due to the restructuring and reorganization activities
from our acquisitions of Bay Equity and Rent., and from our June
2022 workforce reduction.
Reconciliation of Adjusted
EBITDA Guidance to Net Loss Guidance
(unaudited, in
millions)
Three Months Ended September
30, 2022
Low
High
Net loss
$
(87
)
$
(79
)
Net interest expense
5
5
Income tax expense
—
—
Depreciation and amortization
16
16
Stock-based compensation
19
19
Acquisition-related costs
—
—
Restructuring and reorganization
—
—
Adjusted EBITDA
$
(47
)
$
(39
)
Note: Figures may not sum due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220804005874/en/
Investor Relations Meg Nunnally, 206-576-8610
ir@redfin.com
Public Relations Mariam Sughayer, 206-876-1322
press@redfin.com
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