Redfin Reports Second Quarter 2024 Financial Results

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

Second Quarter 2024

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

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

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

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

Second Quarter Highlights

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

(1) Attach rate reflects total closed loans for Redfin buy-side customers divided by Redfin buy-side transactions with a mortgage (excluding cash transactions) for the period. We previously reported only the inclusive attach rate (includes cash transactions in the denominator), which was 22% in the second quarter of 2024, compared to 19% in the second quarter of 2023.

Business Outlook

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

For the third quarter of 2024 we expect:

  • Total revenue between $273 million and $285 million, representing a year-over-year growth between 1% and 6% compared to the third quarter of 2023. Included within total revenue are real estate services revenue between $171 million and $179 million, rentals revenue between $50 million and $51 million, mortgage revenue between $36 million and $39 million and other revenue between $15 million and $16 million.
  • Total net loss is expected to be between $30 million and $22 million, compared to net loss of $19 million in the third quarter of 2023. This guidance includes approximately $29 million in total marketing expenses, $18 million of stock-based compensation, $9 million in depreciation and amortization, and $6 million in net interest expense. Adjusted EBITDA is expected to be between $4 million and $12 million. Furthermore, we expect to pay a quarterly dividend of 30,640 shares of common stock to our preferred stockholder.

Conference Call

Redfin will webcast a conference call to discuss the results at 1:30 p.m. Pacific Time today. The webcast will be open to the public at http://investors.redfin.com. The webcast will remain available on the investor relations website for at least three months following the conference call.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, including our future operating results, as described under Business Outlook. We believe our expectations related to these forward-looking statements are reasonable, but actual results may turn out to be materially different. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our annual report for the year ended December 31, 2023, as supplemented by our quarterly report for the quarter ended March 31, 2024, both of which are available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.

Non-GAAP Financial Measure

To supplement our consolidated financial statements that are prepared and presented in accordance with GAAP, we also compute and present adjusted EBITDA, which is a non-GAAP financial measure. We believe adjusted EBITDA is useful for investors because it enhances period-to-period comparability of our financial statements on a consistent basis and provides investors with useful insight into the underlying trends of the business. The presentation of this financial measure is not intended to be considered in isolation or as a substitute of, or superior to, our financial information prepared and presented in accordance with GAAP. Our calculation of adjusted EBITDA may be different from adjusted EBITDA or similar non-GAAP financial measures used by other companies, limiting its usefulness for comparison purposes. Our adjusted EBITDA for the three and six months ended June 30, 2024 and 2023 is presented below, along with a reconciliation of adjusted EBITDA to net loss.

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin-F

Redfin Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share and per share amounts, unaudited)

 

 

June 30, 2024

 

December 31, 2023

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

201,812

 

 

$

149,759

 

Restricted cash

 

756

 

 

 

1,241

 

Short-term investments

 

 

 

 

41,952

 

Accounts receivable, net of allowances for credit losses of $4,677 and $3,234

 

75,522

 

 

 

51,738

 

Loans held for sale

 

208,460

 

 

 

159,587

 

Prepaid expenses

 

28,002

 

 

 

33,296

 

Other current assets

 

9,872

 

 

 

7,472

 

Total current assets

 

524,424

 

 

 

445,045

 

Property and equipment, net

 

45,303

 

 

 

46,431

 

Right-of-use assets, net

 

28,389

 

 

 

31,763

 

Mortgage servicing rights, at fair value

 

2,695

 

 

 

32,171

 

Long-term investments

 

 

 

 

3,149

 

Goodwill

 

461,349

 

 

 

461,349

 

Intangible assets, net

 

108,832

 

 

 

123,284

 

Other assets, noncurrent

 

10,492

 

 

 

10,456

 

Total assets

$

1,181,484

 

 

$

1,153,648

 

Liabilities, mezzanine equity, and stockholders' (deficit) equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

11,612

 

 

$

10,507

 

Accrued and other liabilities

 

125,082

 

 

 

90,360

 

Warehouse credit facilities

 

202,559

 

 

 

151,964

 

Lease liabilities

 

14,123

 

 

 

15,609

 

Total current liabilities

 

353,376

 

 

 

268,440

 

Lease liabilities, noncurrent

 

25,193

 

 

 

29,084

 

Convertible senior notes, net, noncurrent

 

571,077

 

 

 

688,737

 

Term loan

 

243,961

 

 

 

124,416

 

Deferred tax liabilities

 

642

 

 

 

264

 

Total liabilities

 

1,194,249

 

 

 

1,110,941

 

Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 shares issued and outstanding at June 30, 2024 and December 31, 2023

 

39,981

 

 

 

39,959

 

Stockholders’ (deficit) equity

 

 

 

Common stock—par value $0.001 per share; 500,000,000 shares authorized; 121,743,620 and 117,372,171 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

 

122

 

 

 

117

 

Additional paid-in capital

 

865,263

 

 

 

826,146

 

Accumulated other comprehensive loss

 

(144

)

 

 

(182

)

Accumulated deficit

 

(917,987

)

 

 

(823,333

)

Total stockholders’ (deficit) equity

 

(52,746

)

 

 

2,748

 

Total liabilities, mezzanine equity, and stockholders’ (deficit) equity

$

1,181,484

 

 

$

1,153,648

 

Redfin Corporation and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands, except share and per share amounts, unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Revenue

$

295,203

 

 

$

275,556

 

 

$

520,682

 

 

$

489,639

 

Cost of revenue(1)

 

185,617

 

 

 

175,366

 

 

 

340,284

 

 

 

331,311

 

Gross profit

 

109,586

 

 

 

100,190

 

 

 

180,398

 

 

 

158,328

 

Operating expenses

 

 

 

 

 

 

 

Technology and development(1)

 

42,215

 

 

 

47,141

 

 

 

88,644

 

 

 

94,804

 

Marketing(1)

 

40,260

 

 

 

33,033

 

 

 

65,138

 

 

 

73,436

 

General and administrative(1)

 

54,705

 

 

 

61,765

 

 

 

122,578

 

 

 

131,204

 

Restructuring and reorganization

 

1,334

 

 

 

6,106

 

 

 

2,223

 

 

 

7,159

 

Total operating expenses

 

138,514

 

 

 

148,045

 

 

 

278,583

 

 

 

306,603

 

Loss from continuing operations

 

(28,928

)

 

 

(47,855

)

 

 

(98,185

)

 

 

(148,275

)

Interest income

 

1,461

 

 

 

2,704

 

 

 

3,293

 

 

 

6,110

 

Interest expense

 

(6,086

)

 

 

(1,766

)

 

 

(10,960

)

 

 

(3,688

)

Income tax expense

 

(559

)

 

 

(233

)

 

 

(387

)

 

 

(643

)

Gain on extinguishment of convertible senior notes

 

6,314

 

 

 

20,083

 

 

 

12,000

 

 

 

62,353

 

Other expense, net

 

(82

)

 

 

(145

)

 

 

(415

)

 

 

(379

)

Net loss from continuing operations

 

(27,880

)

 

 

(27,212

)

 

 

(94,654

)

 

 

(84,522

)

Net loss from discontinued operations

 

 

 

 

(146

)

 

 

 

 

 

(3,634

)

Net loss

$

(27,880

)

 

$

(27,358

)

 

$

(94,654

)

 

$

(88,156

)

 

 

 

 

 

 

 

 

Dividends on convertible preferred stock

 

(191

)

 

 

(297

)

 

 

(424

)

 

 

(523

)

 

 

 

 

 

 

 

 

Net loss from continuing operations attributable to common stock—basic and diluted

$

(28,071

)

 

$

(27,509

)

 

$

(95,078

)

 

$

(85,045

)

Net loss attributable to common stock—basic and diluted

$

(28,071

)

 

$

(27,655

)

 

$

(95,078

)

 

$

(88,679

)

 

 

 

 

 

 

 

 

Net loss from continuing operations per share attributable to common stock—basic and diluted

$

(0.23

)

 

$

(0.25

)

 

$

(0.80

)

 

$

(0.77

)

Net loss attributable to common stock per share—basic and diluted

$

(0.23

)

 

$

(0.25

)

 

$

(0.80

)

 

$

(0.80

)

 

 

 

 

 

 

 

 

Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted

 

120,393,897

 

 

 

111,678,417

 

 

 

119,379,082

 

 

 

110,895,358

 

 

 

 

 

 

 

 

 

Net loss

$

(27,880

)

 

$

(27,358

)

 

$

(94,654

)

 

$

(88,156

)

Other comprehensive income (loss)

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

1

 

 

 

 

 

 

(2

)

 

 

(58

)

Unrealized (loss) gain on available-for-sale debt securities

 

 

 

 

(17

)

 

 

40

 

 

 

407

 

Comprehensive loss

$

(27,879

)

 

$

(27,375

)

 

$

(94,616

)

 

$

(87,807

)

(1) Includes stock-based compensation as follows:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Cost of revenue

$

3,045

 

$

3,001

 

$

5,784

 

$

7,136

Technology and development

 

8,718

 

 

 

8,241

 

 

 

16,957

 

 

 

16,368

 

Marketing

 

1,349

 

 

 

1,254

 

 

 

2,780

 

 

 

2,499

 

General and administrative

 

5,119

 

 

 

5,025

 

 

 

10,119

 

 

 

10,345

 

Total

$

18,231

 

 

$

17,521

 

 

$

35,640

 

 

$

36,348

 

Redfin Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

 

Six Months Ended June 30,

 

2024

 

2023

Operating Activities

 

 

 

Net loss

$

(94,654

)

 

$

(88,156

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

23,855

 

 

 

34,146

 

Stock-based compensation

 

35,640

 

 

 

36,582

 

Amortization of debt discount and issuance costs

 

1,372

 

 

 

2,029

 

Non-cash lease expense

 

6,164

 

 

 

9,578

 

Impairment costs

 

 

 

 

113

 

Net gain on IRLCs, forward sales commitments, and loans held for sale

 

(2,196

)

 

 

(4,565

)

Change in fair value of mortgage servicing rights, net

 

(944

)

 

 

599

 

Gain on extinguishment of convertible senior notes

 

(12,000

)

 

 

(62,353

)

Other

 

380

 

 

 

(1,794

)

Change in assets and liabilities:

 

 

 

Accounts receivable, net

 

(23,928

)

 

 

(14,069

)

Inventory

 

 

 

 

114,232

 

Prepaid expenses and other assets

 

2,100

 

 

 

8,868

 

Accounts payable

 

1,135

 

 

 

2,812

 

Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent

 

35,360

 

 

 

(4,522

)

Lease liabilities

 

(8,116

)

 

 

(10,790

)

Origination of mortgage servicing rights

 

(84

)

 

 

(579

)

Proceeds from sale of mortgage servicing rights

 

30,503

 

 

 

738

 

Origination of loans held for sale

 

(1,989,240

)

 

 

(1,922,690

)

Proceeds from sale of loans originated as held for sale

 

1,940,725

 

 

 

1,888,706

 

Net cash used in operating activities

 

(53,928

)

 

 

(11,115

)

Investing activities

 

 

 

Purchases of property and equipment

 

(6,795

)

 

 

(6,213

)

Purchases of investments

 

 

 

 

(76,866

)

Sales of investments

 

39,225

 

 

 

65,099

 

Maturities of investments

 

6,395

 

 

 

59,383

 

Net cash provided by investing activities

 

38,825

 

 

 

41,403

 

Financing activities

 

 

 

Proceeds from the issuance of common stock pursuant to employee equity plans

 

2,158

 

 

 

5,665

 

Tax payments related to net share settlements on restricted stock units

 

(940

)

 

 

(11,096

)

Borrowings from warehouse credit facilities

 

1,987,822

 

 

 

1,920,487

 

Repayments to warehouse credit facilities

 

(1,937,227

)

 

 

(1,883,196

)

Principal payments under finance lease obligations

 

(46

)

 

 

(53

)

Repurchases of convertible senior notes

 

(106,953

)

 

 

(183,019

)

Repayment of term loan principal

 

(938

)

 

 

 

Payments of debt issuance costs

 

(2,203

)

 

 

 

Proceeds from term loan

 

125,000

 

 

 

 

Net cash provided by (used in) financing activities

 

66,673

 

 

 

(151,212

)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

(2

)

 

 

(58

)

Net change in cash, cash equivalents, and restricted cash

 

51,568

 

 

 

(120,982

)

Cash, cash equivalents, and restricted cash:

 

 

 

Beginning of period

 

151,000

 

 

 

242,246

 

End of period

$

202,568

 

 

$

121,264

 

Redfin Corporation and Subsidiaries

Supplemental Financial Information and Business Metrics

(unaudited)

 

 

Three Months Ended

 

Jun. 30,

2024

 

Mar. 31,

2024

 

Dec. 31,

2023

 

Sep. 30,

2023

 

Jun. 30,

2023

 

Mar. 31,

2023

 

Dec. 31,

2022

 

Sep. 30,

2022

Monthly average visitors (in thousands)

 

51,619

 

 

 

48,803

 

 

 

43,861

 

 

 

51,309

 

 

 

52,308

 

 

 

50,440

 

 

 

43,847

 

 

 

50,785

 

Real estate services transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage

 

14,178

 

 

 

10,039

 

 

 

10,152

 

 

 

13,075

 

 

 

13,716

 

 

 

10,301

 

 

 

12,743

 

 

 

18,245

 

Partner

 

3,395

 

 

 

2,691

 

 

 

3,186

 

 

 

4,351

 

 

 

3,952

 

 

 

3,187

 

 

 

2,742

 

 

 

3,507

 

Total

 

17,573

 

 

 

12,730

 

 

 

13,338

 

 

 

17,426

 

 

 

17,668

 

 

 

13,488

 

 

 

15,485

 

 

 

21,752

 

Real estate services revenue per transaction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brokerage

$

12,545

 

 

$

12,433

 

 

$

12,248

 

 

$

12,704

 

 

$

12,376

 

 

$

11,556

 

 

$

10,914

 

 

$

11,103

 

Partner

 

2,859

 

 

 

2,367

 

 

 

2,684

 

 

 

2,677

 

 

 

2,756

 

 

 

2,592

 

 

 

2,611

 

 

 

2,556

 

Aggregate

 

10,674

 

 

 

10,305

 

 

 

9,963

 

 

 

10,200

 

 

 

10,224

 

 

 

9,438

 

 

 

9,444

 

 

 

9,725

 

U.S. market share by units

 

0.77

%

 

 

0.77

%

 

 

0.72

%

 

 

0.78

%

 

 

0.75

%

 

 

0.79

%

 

 

0.76

%

 

 

0.80

%

Revenue from top-10 Redfin markets as a percentage of real estate services revenue

 

56

%

 

 

55

%

 

 

55

%

 

 

56

%

 

 

55

%

 

 

53

%

 

 

57

%

 

 

58

%

Average number of lead agents

 

1,719

 

 

 

1,658

 

 

 

1,692

 

 

 

1,744

 

 

 

1,792

 

 

 

1,876

 

 

 

2,022

 

 

 

2,293

 

Mortgage originations by dollars (in millions)

$

1,338

 

 

$

969

 

 

$

885

 

 

$

1,110

 

 

$

1,282

 

 

$

991

 

 

$

1,036

 

 

$

1,557

 

Mortgage originations by units (in ones)

 

3,192

 

 

 

2,365

 

 

 

2,293

 

 

 

2,786

 

 

 

3,131

 

 

 

2,444

 

 

 

2,631

 

 

 

3,720

 

Redfin Corporation and Subsidiaries

Supplemental Financial Information

(unaudited, in thousands)

 

 

Three Months Ended June 30, 2024

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

187,569

 

 

$

50,927

 

 

$

40,179

 

 

$

16,528

 

 

$

 

 

$

295,203

 

Cost of revenue

 

133,863

 

 

 

11,630

 

 

 

32,528

 

 

 

7,596

 

 

 

 

 

 

185,617

 

Gross profit

 

53,706

 

 

 

39,297

 

 

 

7,651

 

 

 

8,932

 

 

 

 

 

 

109,586

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Technology and development

 

28,920

 

 

 

10,417

 

 

 

700

 

 

 

965

 

 

 

1,213

 

 

 

42,215

 

Marketing

 

23,855

 

 

 

15,749

 

 

 

648

 

 

 

8

 

 

 

 

 

 

40,260

 

General and administrative

 

19,140

 

 

 

20,242

 

 

 

6,519

 

 

 

910

 

 

 

7,894

 

 

 

54,705

 

Restructuring and reorganization

 

 

 

 

 

 

 

 

 

 

 

 

 

1,334

 

 

 

1,334

 

Total operating expenses

 

71,915

 

 

 

46,408

 

 

 

7,867

 

 

 

1,883

 

 

 

10,441

 

 

 

138,514

 

(Loss) income from continuing operations

 

(18,209

)

 

 

(7,111

)

 

 

(216

)

 

 

7,049

 

 

 

(10,441

)

 

 

(28,928

)

Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net

 

14

 

 

 

(42

)

 

 

1

 

 

 

180

 

 

 

895

 

 

 

1,048

 

Net (loss) income from continuing operations

$

(18,195

)

 

$

(7,153

)

 

$

(215

)

 

$

7,229

 

 

$

(9,546

)

 

$

(27,880

)

 

 

Three Months Ended June 30, 2024

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

$

(18,195

)

 

$

(7,153

)

 

$

(215

)

 

$

7,229

 

 

$

(9,546

)

 

$

(27,880

)

Interest income(1)

 

(14

)

 

 

(51

)

 

 

(2,990

)

 

 

(180

)

 

 

(1,217

)

 

 

(4,452

)

Interest expense(2)

 

 

 

 

 

 

 

2,953

 

 

 

 

 

 

6,084

 

 

 

9,037

 

Income tax expense

 

 

 

 

38

 

 

 

 

 

 

 

 

 

521

 

 

 

559

 

Depreciation and amortization

 

3,116

 

 

 

4,972

 

 

 

920

 

 

 

242

 

 

 

207

 

 

 

9,457

 

Stock-based compensation(3)

 

11,525

 

 

 

3,125

 

 

 

476

 

 

 

600

 

 

 

2,505

 

 

 

18,231

 

Restructuring and reorganization(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

1,334

 

 

 

1,334

 

Gain on extinguishment of convertible senior notes

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,314

)

 

 

(6,314

)

Adjusted EBITDA

$

(3,568

)

 

$

931

 

 

$

1,144

 

 

$

7,891

 

 

$

(6,426

)

 

$

(28

)

(1) Interest income includes $3.0 million of interest income related to originated mortgage loans for the three months ended June 30, 2024.

(2) Interest expense includes $3.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2024.

(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.

(4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.

 

Three Months Ended June 30, 2023

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Revenue(1)

$

180,641

 

 

$

45,356

 

 

$

38,426

 

 

$

11,133

 

 

$

 

 

$

275,556

 

Cost of revenue

 

124,447

 

 

 

10,427

 

 

 

34,266

 

 

 

6,226

 

 

 

 

 

 

175,366

 

Gross profit

 

56,194

 

 

 

34,929

 

 

 

4,160

 

 

 

4,907

 

 

 

 

 

 

100,190

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Technology and development

 

28,044

 

 

 

16,304

 

 

 

734

 

 

 

1,118

 

 

 

941

 

 

 

47,141

 

Marketing

 

16,004

 

 

 

15,938

 

 

 

1,054

 

 

 

16

 

 

 

21

 

 

 

33,033

 

General and administrative

 

20,961

 

 

 

25,305

 

 

 

6,724

 

 

 

1,044

 

 

 

7,731

 

 

 

61,765

 

Restructuring and reorganization

 

 

 

 

 

 

 

 

 

 

 

 

 

6,106

 

 

 

6,106

 

Total operating expenses

 

65,009

 

 

 

57,547

 

 

 

8,512

 

 

 

2,178

 

 

 

14,799

 

 

 

148,045

 

(Loss) income from continuing operations

 

(8,815

)

 

 

(22,618

)

 

 

(4,352

)

 

 

2,729

 

 

 

(14,799

)

 

 

(47,855

)

Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net

 

 

 

 

28

 

 

 

(91

)

 

 

153

 

 

 

20,553

 

 

 

20,643

 

Net (loss) income from continuing operations

$

(8,815

)

 

$

(22,590

)

 

$

(4,443

)

 

$

2,882

 

 

$

5,754

 

 

$

(27,212

)

(1) Included in revenue is $0.1 million from providing services to our discontinued properties segment.

 

 

Three Months Ended June 30, 2023

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

$

(8,815

)

 

$

(22,590

)

 

$

(4,443

)

 

$

2,882

 

 

$

5,754

 

 

$

(27,212

)

Interest income(1)

 

 

 

 

(77

)

 

 

(3,686

)

 

 

(153

)

 

 

(2,467

)

 

 

(6,383

)

Interest expense(2)

 

 

 

 

 

 

 

3,990

 

 

 

 

 

 

1,766

 

 

 

5,756

 

Income tax expense

 

 

 

 

43

 

 

 

83

 

 

 

 

 

 

107

 

 

 

233

 

Depreciation and amortization

 

5,264

 

 

 

10,235

 

 

 

994

 

 

 

307

 

 

 

329

 

 

 

17,129

 

Stock-based compensation(3)

 

12,297

 

 

 

3,709

 

 

 

823

 

 

 

561

 

 

 

131

 

 

 

17,521

 

Acquisition-related costs(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

 

 

8

 

Restructuring and reorganization(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

6,106

 

 

 

6,106

 

Gain on extinguishment of convertible senior notes

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,083

)

 

 

(20,083

)

Adjusted EBITDA

$

8,746

 

 

$

(8,680

)

 

$

(2,239

)

 

$

3,597

 

 

$

(8,349

)

 

$

(6,925

)

(1) Interest income includes $3.7 million of interest income related to originated mortgage loans for the three months ended June 30, 2023.

(2) Interest expense includes $4.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2023.

(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.

(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.

Six Months Ended June 30, 2024

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

318,749

 

 

$

100,445

 

 

$

73,998

 

 

$

27,490

 

 

$

 

 

$

520,682

 

Cost of revenue

 

244,777

 

 

 

23,087

 

 

 

58,432

 

 

 

13,988

 

 

 

 

 

 

340,284

 

Gross profit

 

73,972

 

 

 

77,358

 

 

 

15,566

 

 

 

13,502

 

 

 

 

 

 

180,398

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Technology and development

 

57,427

 

 

 

25,929

 

 

 

1,356

 

 

 

1,797

 

 

 

2,135

 

 

 

88,644

 

Marketing

 

35,032

 

 

 

28,537

 

 

 

1,554

 

 

 

15

 

 

 

 

 

 

65,138

 

General and administrative

 

38,915

 

 

 

42,720

 

 

 

13,202

 

 

 

2,064

 

 

 

25,677

 

 

 

122,578

 

Restructuring and reorganization

 

 

 

 

 

 

 

 

 

 

 

 

 

2,223

 

 

 

2,223

 

Total operating expenses

 

131,374

 

 

 

97,186

 

 

 

16,112

 

 

 

3,876

 

 

 

30,035

 

 

 

278,583

 

(Loss) income from continuing operations

 

(57,402

)

 

 

(19,828

)

 

 

(546

)

 

 

9,626

 

 

 

(30,035

)

 

 

(98,185

)

Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net

 

(32

)

 

 

(35

)

 

 

4

 

 

 

424

 

 

 

3,170

 

 

 

3,531

 

Net (loss) income from continuing operations

$

(57,434

)

 

$

(19,863

)

 

$

(542

)

 

$

10,050

 

 

$

(26,865

)

 

$

(94,654

)

 

 

Six Months Ended June 30, 2024

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

$

(57,434

)

 

$

(19,863

)

 

$

(542

)

 

$

10,050

 

 

$

(26,865

)

 

$

(94,654

)

Interest income(1)

 

(30

)

 

 

(122

)

 

 

(5,024

)

 

 

(424

)

 

 

(2,718

)

 

 

(8,318

)

Interest expense(2)

 

 

 

 

 

 

 

5,038

 

 

 

 

 

 

10,957

 

 

 

15,995

 

Income tax expense

 

 

 

 

98

 

 

 

 

 

 

 

 

 

289

 

 

 

387

 

Depreciation and amortization

 

6,300

 

 

 

14,811

 

 

 

1,884

 

 

 

440

 

 

 

420

 

 

 

23,855

 

Stock-based compensation(3)

 

22,913

 

 

 

6,463

 

 

 

752

 

 

 

1,100

 

 

 

4,412

 

 

 

35,640

 

Restructuring and reorganization(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

2,223

 

 

 

2,223

 

Gain on extinguishment of convertible senior notes

 

 

 

 

 

 

 

 

 

 

 

 

 

(12,000

)

 

 

(12,000

)

Legal contingencies(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

9,250

 

 

 

9,250

 

Adjusted EBITDA

$

(28,251

)

 

$

1,387

 

 

$

2,108

 

 

$

11,166

 

 

$

(14,032

)

 

$

(27,622

)

(1) Interest income includes $5.0 million of interest income related to originated mortgage loans for the six months ended June 30, 2024.

(2) Interest expense includes $5.0 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2024.

(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.

(4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.

(5) Legal contingencies includes expenses related to material contingent liabilities resulting from litigation or other legal proceedings.

 

Six Months Ended June 30, 2023

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Revenue(1)

$

307,937

 

 

$

88,226

 

 

$

74,915

 

 

$

18,561

 

 

$

 

 

$

489,639

 

Cost of revenue

 

235,941

 

 

 

20,192

 

 

 

63,479

 

 

 

11,699

 

 

 

 

 

 

331,311

 

Gross profit

 

71,996

 

 

 

68,034

 

 

 

11,436

 

 

 

6,862

 

 

 

 

 

 

158,328

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Technology and development

 

56,939

 

 

 

32,268

 

 

 

1,377

 

 

 

2,342

 

 

 

1,878

 

 

 

94,804

 

Marketing

 

41,064

 

 

 

30,264

 

 

 

2,034

 

 

 

26

 

 

 

48

 

 

 

73,436

 

General and administrative

 

40,579

 

 

 

51,607

 

 

 

13,653

 

 

 

2,097

 

 

 

23,268

 

 

 

131,204

 

Restructuring and reorganization

 

 

 

 

 

 

 

 

 

 

 

 

 

7,159

 

 

 

7,159

 

Total operating expenses

 

138,582

 

 

 

114,139

 

 

 

17,064

 

 

 

4,465

 

 

 

32,353

 

 

 

306,603

 

(Loss) income from continuing operations

 

(66,586

)

 

 

(46,105

)

 

 

(5,628

)

 

 

2,397

 

 

 

(32,353

)

 

 

(148,275

)

Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net

 

 

 

 

73

 

 

 

(151

)

 

 

268

 

 

 

63,563

 

 

 

63,753

 

Net (loss) income from continuing operations

$

(66,586

)

 

$

(46,032

)

 

$

(5,779

)

 

$

2,665

 

 

$

31,210

 

 

$

(84,522

)

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

 

 

Six Months Ended June 30, 2023

 

Real estate

services

 

Rentals

 

Mortgage

 

Other

 

Corporate

overhead

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income from continuing operations

$

(66,586

)

 

$

(46,032

)

 

$

(5,779

)

 

$

2,665

 

 

$

31,210

 

 

$

(84,522

)

Interest income(1)

 

 

 

 

(157

)

 

 

(6,176

)

 

 

(268

)

 

 

(5,668

)

 

 

(12,269

)

Interest expense(2)

 

 

 

 

 

 

 

6,605

 

 

 

 

 

 

3,687

 

 

 

10,292

 

Income tax expense

 

 

 

 

86

 

 

 

151

 

 

 

 

 

 

406

 

 

 

643

 

Depreciation and amortization

 

9,696

 

 

 

20,387

 

 

 

1,982

 

 

 

523

 

 

 

1,432

 

 

 

34,020

 

Stock-based compensation(3)

 

21,890

 

 

 

7,325

 

 

 

2,081

 

 

 

1,122

 

 

 

3,930

 

 

 

36,348

 

Acquisition-related costs(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

 

 

8

 

Restructuring and reorganization(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

7,159

 

 

 

7,159

 

Impairment(6)

 

 

 

 

 

 

 

 

 

 

 

 

 

113

 

 

 

113

 

Gain on extinguishment of convertible senior notes

 

 

 

 

 

 

 

 

 

 

 

 

 

(62,353

)

 

 

(62,353

)

Adjusted EBITDA

$

(35,000

)

 

$

(18,391

)

 

$

(1,136

)

 

$

4,042

 

 

$

(20,076

)

 

$

(70,561

)

(1) Interest income includes $6.2 million of interest income related to originated mortgage loans for the six months ended June 30, 2023.

(2) Interest expense includes $6.6 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2023.

(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.

(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.

(6) Impairment consists of an impairment loss due to subleasing one of our operating leases.

Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance

(unaudited, in millions)

 

 

Three months ending September 30, 2024

 

Low

 

High

Net loss

(30

)

 

(22

)

Net interest expense

6

 

 

6

 

Depreciation and amortization

9

 

 

9

 

Stock-based compensation

18

 

 

18

 

Adjusted EBITDA

4

 

 

12

 

Note: Figures may not sum due to rounding.

 

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