Redfin Reports Fourth Quarter and Full Year 2024 Financial Results

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SEATTLE–(BUSINESS WIRE)–
Redfin Corporation (NASDAQ: RDFN) today announced results for its fourth quarter and full year ended December 3src, 2024.

Fourth Quarter 2024

Fourth quarter revenue was $244.3 million, an increase of src2% compared to the fourth quarter of 2023. Gross profit was $8src.9 million, an increase of src2% 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 2src.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 $src3.5 million in the fourth quarter of 2023.

Full Year 2024

Full year revenue was $src,043.0 million, an increase of 7% year-over-year. Gross profit was $364.2 million, an increase of src0% year-over-year. Real estate services gross profit was $src55.4 million, flat year-over-year, and real estate services gross margin was 24.2%, compared to 25.2% in 2023.

Total net loss was $src64.8 million, compared to a net loss of $src30.0 million in 2023. Total net loss attributable to common stock was $src65.9 million. Net loss per share attributable to common stock, diluted, was $src.36, compared to a net loss per share, diluted, of $src.src6 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 $src00 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

#src brokerage website for 2024, with 7x the traffic of our next closest brokerage competitor.

Our agents and partners helped approximately 6src,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.src

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 src,927 in the fourth quarter, up src4% 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 3src% of Redfin agents now belonging to a team. The program has improved agent performance in our pilot markets, including a src3% lift in the number of web contacts who go on to close with Redfin within 90 days.

(src) 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 src9% 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 $2src4 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 $src26 million and $src3src million, rentals revenue between $49 million and $5src 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, $2src million to $24 million in restructuring expense, $src5 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 src: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 3src, 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 #src 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 $src.8 billion in commissions. We serve approximately src00 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 3src,

2024

2023

Assets

Current assets

Cash and cash equivalents

$

src24,743

$

src49,759

Restricted cash

229

src,24src

Short-term investments

4src,952

Accounts receivable, net of allowances for credit losses of $4,57src and $3,234

48,730

5src,738

Loans held for sale

src52,426

src59,587

Prepaid expenses

26,853

33,296

Other current assets

22,457

7,472

Total current assets

375,438

445,045

Property and equipment, net

4src,302

46,43src

Right-of-use assets, net

23,7src3

3src,763

Mortgage servicing rights, at fair value

2,736

32,src7src

Long-term investments

3,src49

Goodwill

46src,349

46src,349

Intangible assets, net

99,543

src23,284

Other assets, noncurrent

8,376

src0,456

Total assets

$

src,0src2,457

$

src,src53,648

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

Current liabilities

Accounts payable

$

src6,847

$

src0,507

Accrued and other liabilities

82,709

90,360

Warehouse credit facilities

src46,629

src5src,964

Convertible senior notes, net

73,5src6

Lease liabilities

src2,862

src5,609

Total current liabilities

332,563

268,440

Lease liabilities, noncurrent

src9,855

29,084

Convertible senior notes, net, noncurrent

498,69src

688,737

Term loan

243,344

src24,4src6

Deferred tax liabilities

672

264

Total liabilities

src,095,src25

src,srcsrc0,94src

Series A convertible preferred stock—par value $0.00src per share; src0,000,000 shares authorized; 0 and 40,000 shares issued and outstanding at December 3src, 2024 and 2023, respectively

39,959

Stockholders’ (deficit) equity

Common stock—par value $0.00src per share; 500,000,000 shares authorized; src26,389,289 and srcsrc7,372,src7src shares issued and outstanding at December 3src, 2024 and 2023, respectively

src26

srcsrc7

Additional paid-in capital

905,506

826,src46

Accumulated other comprehensive loss

(src66

)

(src82

)

Accumulated deficit

(988,src34

)

(823,333

)

Total stockholders’ (deficit) equity

(82,668

)

2,748

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

$

src,0src2,457

$

src,src53,648

 

Redfin Corporation and Subsidiaries

Consolidated Statements of Comprehensive Loss

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

 

Three Months Ended December 3src,

Year Ended December 3src,

2024

2023

2024

2023

Revenue

244,282

2src8,077

src,042,979

976,672

Cost of revenue(src)

src62,342

src44,926

678,778

646,853

Gross profit

8src,940

73,src5src

364,20src

329,8src9

Operating expenses

Technology and development(src)

34,95src

44,098

src63,927

src83,294

Marketing(src)

22,src57

20,332

srcsrc4,48src

srcsrc7,863

General and administrative(src)

53,998

52,206

235,364

238,790

Restructuring and reorganization

952

768

5,684

7,927

Total operating expenses

srcsrc2,058

srcsrc7,404

5src9,456

547,874

Loss from continuing operations

(30,srcsrc8

)

(44,253

)

(src55,255

)

(2src8,055

)

Interest income

src,2src6

2,362

6,348

src0,532

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,src7src

src2,000

94,0src9

Other expense, net

(85

)

(src,848

)

(644

)

(2,385

)

Net loss from continuing operations

(36,365

)

(22,898

)

(src64,80src

)

(src26,392

)

Net loss from discontinued operations

(3,634

)

Net loss

$

(36,365

)

$

(22,898

)

$

(src64,80src

)

$

(src30,026

)

Dividends on convertible preferred stock

(367

)

(2src6

)

(src,073

)

(src,074

)

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

$

(36,732

)

$

(23,srcsrc4

)

$

(src65,874

)

$

(src27,466

)

Net loss attributable to common stock—basic and diluted

$

(36,732

)

$

(23,srcsrc4

)

$

(src65,874

)

$

(src3src,src00

)

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

$

(0.29

)

$

(0.20

)

$

(src.36

)

$

(src.src3

)

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

$

(0.29

)

$

(0.20

)

$

(src.36

)

$

(src.src6

)

Weighted average shares of common stock—basic and diluted

src25,027,643

srcsrc6,src54,00src

src2src,677,97src

srcsrc3,src52,752

Net loss

$

(36,365

)

$

(22,898

)

$

(src64,80src

)

$

(src30,026

)

Other comprehensive (loss) income

Foreign currency translation adjustments

(27

)

2

(24

)

(7src

)

Unrealized gain on available-for-sale securities

73

40

690

Comprehensive loss

$

(36,392

)

$

(22,823

)

$

(src64,785

)

$

(src29,407

)

(src) Includes stock-based compensation as follows:

 

Three Months Ended December 3src,

Year Ended December 3src,

2024

2023

2024

2023

Cost of revenue

$

2,577

$

2,74src

$

srcsrc,src80

$

src2,9src4

Technology and development

8,247

8,352

34,339

33,srcsrcsrc

Marketing

src,srcsrc6

src,3src2

5,027

5,src48

General and administrative

5,277

3,src48

20,6src3

src9,528

Total

$

src7,2src7

$

src5,553

$

7src,src59

$

70,70src

 

Redfin Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

Year Ended December 3src,

2024

2023

Operating Activities

Net loss

$

(src64,80src

)

$

(src30,026

)

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

Depreciation and amortization

42,768

62,85src

Stock-based compensation

7src,src59

70,935

Amortization of debt discount and issuance costs

3,srcsrc6

3,620

Non-cash lease expense

srcsrc,8src5

src6,269

Impairment costs

src,948

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

(src9

)

(src,992

)

Change in fair value of mortgage servicing rights, net

(892

)

3,src98

Gain on extinguishment of convertible senior notes

(src2,000

)

(94,0src9

)

Other

644

(2,srcsrc3

)

Change in assets and liabilities:

Accounts receivable, net

2,864

3,286

Inventory

srcsrc4,232

Prepaid expenses and other assets

(8,229

)

6,004

Accounts payable

6,37src

(src,323

)

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

(5,40src

)

(src9,085

)

Lease liabilities

(src5,682

)

(src8,998

)

Origination of mortgage servicing rights

(255

)

(565

)

Proceeds from sale of mortgage servicing rights

30,582

src,457

Origination of loans held for sale

(3,979,765

)

(3,525,987

)

Proceeds from sale of loans originated as held for sale

3,985,4src8

3,567,066

Net cash (used in) provided by operating activities

(32,307

)

56,758

Investing activities

Purchases of property and equipment

(srcsrc,209

)

(src2,056

)

Purchases of investments

(76,866

)

Sales of investments

39,225

src24,68src

Maturities of investments

6,395

6src,723

Net cash provided by investing activities

34,4srcsrc

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

9,6src3

Tax payments related to net share settlements on restricted stock units

(2,284

)

(src6,348

)

Borrowings from warehouse credit facilities

4,0src6,909

3,532,srcsrc9

Repayments to warehouse credit facilities

(4,022,245

)

(3,570,664

)

Principal payments under finance lease obligations

(56

)

(89

)

Repurchases of convertible senior notes

(src06,953

)

(24src,808

)

Repayments of convertible senior notes

(23,5src2

)

Repayment of term loan principal

(2,src88

)

(3src3

)

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

src25,000

src25,000

Net cash used in financing activities

(28,src08

)

(245,4src5

)

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

(24

)

(7src

)

Net change in cash, cash equivalents, and restricted cash

(26,028

)

(9src,246

)

Cash, cash equivalents, and restricted cash:

Beginning of period

src5src,000

242,246

End of period

$

src24,972

$

src5src,000

 

Redfin Corporation and Subsidiaries

Supplemental Financial Information and Business Metrics

(unaudited)

 

Three Months Ended

Dec. 3src, 2024

Sep. 30, 2024

Jun. 30, 2024

Mar. 3src, 2024

Dec. 3src, 2023

Sep. 30, 2023

Jun. 30, 2023

Mar. 3src, 2023

Monthly average visitors (in thousands)

42,680

49,4src3

5src,6src9

48,803

43,86src

5src,309

52,308

50,440

Real estate services transactions

Brokerage

srcsrc,44src

src3,324

src4,src78

src0,039

src0,src52

src3,075

src3,7src6

src0,30src

Partner

2,922

3,440

3,395

2,69src

3,src86

4,35src

3,952

3,src87

Total

src4,363

src6,764

src7,573

src2,730

src3,338

src7,426

src7,668

src3,488

Real estate services revenue per transaction

Brokerage

$

src2,249

$

src2,363

$

src2,545

$

src2,433

$

src2,248

$

src2,704

$

src2,376

$

srcsrc,556

Partner

3,027

3,025

2,859

2,367

2,684

2,677

2,756

2,592

Aggregate

src0,373

src0,447

src0,674

src0,305

9,963

src0,200

src0,224

9,438

U.S. market share by units(src)

0.72

%

0.76

%

0.77

%

0.77

%

0.72

%

0.78

%

0.75

%

0.79

%

Revenue from top-src0 Redfin markets as a percentage of real estate services revenue

56

%

56

%

56

%

55

%

55

%

56

%

55

%

53

%

Average number of lead agents

src,927

src,757

src,7src9

src,658

src,692

src,744

src,792

src,876

Mortgage originations by dollars (in millions)

$

src,035

$

src,2src4

$

src,338

$

969

$

885

$

src,srcsrc0

$

src,282

$

99src

Mortgage originations by units (in ones)

2,434

2,900

3,src92

2,365

2,293

2,786

3,src3src

2,444

 

Year Ended December 3src,

2024

2023

Monthly average visitors (in thousands)

48,src29

49,479

Real estate services transactions

Brokerage

48,982

47,244

Partner

src2,448

src4,676

Total

6src,430

6src,920

Real estate services revenue per transaction

Brokerage

$

src2,403

$

src2,260

Partner

2,838

2,68src

Aggregate

src0,465

9,990

U.S. market share by units(src)

0.76

%

0.76

%

Revenue from top-src0 markets as a percentage of real estate services revenue

56

%

55

%

Average number of lead agents

src,765

src,776

Mortgage originations by dollars (in millions)

$

4,556

$

4,268

Mortgage originations by units (in ones)

src0,89src

src0,654

(src) 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 (src) 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 3src, 2024

Real estate services

Rentals

Mortgage

Title

Monetization

Corporate overhead

Total

Revenue

$

src48,982

$

5src,634

$

30,2src0

$

9,097

$

4,359

$

$

244,282

Cost of revenue

srcsrc6,3src5

src2,27src

26,9src0

6,7src8

src28

src62,342

Gross profit

32,667

39,363

3,300

2,379

4,23src

8src,940

Operating expenses

Technology and development

20,9src4

srcsrc,438

696

srcsrc4

755

src,034

34,95src

Marketing

src0,022

srcsrc,353

767

src4

src

22,src57

General and administrative

src7,6src6

2src,653

6,34src

794

662

6,932

53,998

Restructuring and reorganization

952

952

Total operating expenses

48,552

44,444

7,804

922

src,4src7

8,9src9

srcsrc2,058

(Loss) income from continuing operations

(src5,885

)

(5,08src

)

(4,504

)

src,457

2,8src4

(8,9src9

)

(30,srcsrc8

)

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

(3src

)

src32

(6

)

220

63

(6,625

)

(6,247

)

Net (loss) income from continuing operations

$

(src5,9src6

)

$

(4,949

)

$

(4,5src0

)

$

src,677

$

2,877

$

(src5,544

)

$

(36,365

)

 

Three Months Ended December 3src, 2024

Real estate services

Rentals

Mortgage

Title

Monetization

Corporate overhead

Total

Net (loss) income from continuing operations

$

(src5,9src6

)

$

(4,949

)

$

(4,5src0

)

$

src,677

$

2,877

$

(src5,544

)

$

(36,365

)

Interest income(src)

(27

)

(src32

)

(3,src99

)

(220

)

(63

)

(775

)

(4,4src6

)

Interest expense(2)

2,962

8,276

srcsrc,238

Income tax expense

(905

)

(905

)

Depreciation and amortization

3,src43

5,src50

88src

28

87

src40

9,429

Stock-based compensation(3)

src0,src77

3,465

375

284

304

2,6src2

src7,2src7

Restructuring and reorganization(4)

952

952

Adjusted EBITDA

$

(2,623

)

$

3,534

$

(3,49src

)

$

src,769

$

3,205

$

(5,244

)

$

(2,850

)

(src) Interest income includes $3.2 million of interest income related to originated mortgage loans for the three months ended December 3src, 2024.

(2) Interest expense includes $3.0 million of interest expense related to our warehouse credit facilities for the three months ended December 3src, 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 3src, 2023

Real estate services

Rentals

Mortgage

Title

Monetization

Corporate overhead

Total

Revenue

$

src32,890

$

49,src76

$

26,270

$

5,759

$

3,982

$

$

2src8,077

Cost of revenue

src03,000

srcsrc,070

25,070

5,633

src53

src44,926

Gross profit

29,890

38,src06

src,200

src26

3,829

73,src5src

Operating expenses

Technology and development

25,55src

src5,853

694

9src

938

97src

44,098

Marketing

7,897

srcsrc,443

942

src3

src

36

20,332

General and administrative

src7,854

20,807

4,689

672

296

7,888

52,206

Restructuring and reorganization

503

265

768

Total operating expenses

5src,302

48,606

6,325

776

src,235

9,src60

srcsrc7,404

(Loss) income from continuing operations

(2src,4src2

)

(src0,500

)

(5,src25

)

(650

)

2,594

(9,src60

)

(44,253

)

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

src8

src00

(src68

)

src3src

src06

2src,src68

2src,355

Net (loss) income from continuing operations

$

(2src,394

)

$

(src0,400

)

$

(5,293

)

$

(5src9

)

$

2,700

$

src2,008

$

(22,898

)

 

Three Months Ended December 3src, 2023

Real estate services

Rentals

Mortgage

Title

Monetization

Corporate overhead

Total

Net (loss) income from continuing operations

$

(2src,394

)

$

(src0,400

)

$

(5,293

)

$

(5src9

)

$

2,700

$

src2,008

$

(22,898

)

Interest income(src)

(src8

)

(src00

)

(2,src76

)

(src3src

)

(src06

)

(2,007

)

(4,538

)

Interest expense(2)

2,3src8

4,src32

6,450

Income tax expense

68

29

97

Depreciation and amortization

3,20src

9,808

935

28

2src8

255

src4,445

Stock-based compensation(3)

src0,96src

3,073

(src,088

)

2src7

333

2,057

src5,553

Restructuring and reorganization(4)

503

265

768

Impairment(5)

src,835

src,835

Gain on extinguishment of convertible senior notes

(25,src7src

)

(25,src7src

)

Adjusted EBITDA

$

(7,250

)

$

2,884

$

(5,236

)

$

(405

)

$

3,src45

$

(6,597

)

$

(src3,459

)

(src) Interest income includes $2.2 million of interest income related to originated mortgage loans for the three months ended December 3src, 2023.

(2) Interest expense includes $2.2 million of interest expense related to our warehouse credit facilities for the three months ended December 3src, 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 3src, 2024

Real estate services

Rentals

Mortgage

Title

Monetization

Corporate overhead

Total

Revenue

$

642,867

$

203,739

$

src39,829

$

37,509

$

src9,035

$

$

src,042,979

Cost of revenue

487,5src3

47,724

srcsrc5,556

27,024

96src

678,778

Gross profit

src55,354

src56,0src5

24,273

src0,485

src8,074

364,20src

Operating expenses

Technology and development

src05,268

48,0src5

2,727

448

3,src07

4,362

src63,927

Marketing

57,96src

53,490

2,988

37

4

src

srcsrc4,48src

General and administrative

74,794

88,447

25,428

3,2src5

src,520

4src,960

235,364

Restructuring and reorganization

5,684

5,684

Total operating expenses

238,023

src89,952

3src,src43

3,700

4,63src

52,007

5src9,456

(Loss) income from continuing operations

(82,669

)

(33,937

)

(6,870

)

6,785

src3,443

(52,007

)

(src55,255

)

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

(25

)

src97

(2,968

)

690

283

(7,723

)

(9,546

)

Net (loss) income from continuing operations

$

(82,694

)

$

(33,740

)

$

(9,838

)

$

7,475

$

src3,726

$

(59,730

)

$

(src64,80src

)

 

Year ended December 3src, 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

$

src3,726

$

(59,730

)

$

(src64,80src

)

Interest income(src)

(67

)

(365

)

(srcsrc,6src5

)

(690

)

(283

)

(4,944

)

(src7,964

)

Interest expense(2)

src4,208

24,798

39,006

Income tax expense

src09

(639

)

(530

)

Depreciation and amortization

src2,445

25,038

3,660

src09

673

843

42,768

Stock-based compensation(3)

44,423

src3,443

src,038

src,srcsrc9

src,src57

9,979

7src,src59

Restructuring and reorganization(4)

5,684

5,684

Gain on extinguishment of convertible senior notes

(src2,000

)

(src2,000

)

Legal contingencies(5)

src0,src54

src0,src54

Adjusted EBITDA

$

(25,893

)

$

4,485

$

(2,547

)

$

8,0src3

$

src5,273

$

(25,855

)

$

(26,524

)

(src) Interest income includes $srcsrc.6 million of interest income related to originated mortgage loans for the year ended December 3src, 2024.

(2) Interest expense includes $srcsrc.2 million of interest expense related to our warehouse credit facilities for the year ended December 3src, 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 3src, 2023

Real estate services

Rentals

Mortgage

Title

Monetization

Corporate overhead

Total

Revenue(src)

$

6src8,577

$

src84,8src2

$

src34,src08

$

25,095

$

src4,080

$

$

976,672

Cost of revenue

462,625

42,086

srcsrc8,src78

23,335

629

646,853

Gross profit

src55,952

src42,726

src5,930

src,760

src3,45src

329,8src9

Operating expenses

Technology and development

src08,20src

63,934

2,87src

5src0

3,994

3,784

src83,294

Marketing

59,746

53,952

4,064

54

6

4src

srcsrc7,863

General and administrative

76,85src

94,252

25,0src2

2,776

src,24src

38,658

238,790

Restructuring and reorganization

503

7,424

7,927

Total operating expenses

244,798

2src2,64src

3src,947

3,340

5,24src

49,907

547,874

(Loss) income from continuing operations

(88,846

)

(69,9src5

)

(src6,0src7

)

(src,580

)

8,2src0

(49,907

)

(2src8,055

)

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

59

2src5

(392

)

348

364

9src,069

9src,663

Net (loss) income from continuing operations

$

(88,787

)

$

(69,700

)

$

(src6,409

)

$

(src,232

)

$

8,574

$

4src,src62

$

(src26,392

)

(src) Included in revenue is $src.2 million from providing services to our discontinued properties segment.

Year ended December 3src, 2023

Real estate services

Rentals

Mortgage

Title

Monetization

Corporate overhead

Total

Net (loss) income from continuing operations

$

(88,787

)

$

(69,700

)

$

(src6,409

)

$

(src,232

)

$

8,574

$

4src,src62

$

(src26,392

)

Interest income(src)

(59

)

(338

)

(srcsrc,238

)

(348

)

(364

)

(9,407

)

(2src,754

)

Interest expense(2)

src2,055

9,4src7

2src,472

Income tax expense

src23

289

567

979

Depreciation and amortization

src6,020

39,876

3,864

src37

865

2,000

62,762

Stock-based compensation(3)

44,002

src4,653

src,466

885

src,36src

8,334

70,70src

Acquisition-related costs(4)

8

8

Restructuring and reorganization(5)

503

7,424

7,927

Impairment(6)

src,948

src,948

Gain on extinguishment of convertible senior notes

(94,0src9

)

(94,0src9

)

Adjusted EBITDA

(28,824

)

(src4,883

)

(9,973

)

(558

)

src0,436

(32,566

)

(76,368

)

(src) Interest income includes $srcsrc.2 million of interest income related to originated mortgage loans for the year ended December 3src, 2023.

(2) Interest expense includes $srcsrc.9 million of interest expense related to our warehouse credit facilities for the year ended December 3src, 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 3src, 2025

Low

High

Net loss

$

(94

)

$

(83

)

Net interest expense

6

6

Depreciation and amortization

9

9

Stock-based compensation

src5

src5

Restructuring and reorganization

24

2src

Adjusted EBITDA

$

(39

)

$

(32

)

View source version on businesswire.com: https://www.businesswire.com/news/home/202502274src6933/en/

Investor Relations

Meg Nunnally

ir@redfin.com

Press

Alina Ptaszynski

press@redfin.com

Source: Redfin Corporation

Released February 27, 2025

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