Redfin Reports Second Quarter 2022 Financial Results

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SEATTLE–(BUSINESS WIRE)– Redfin Corporation (NASDAQ: RDFN) today announced results for its second quarter ended June 3src, 2src22.

Second Quarter 2src22

Second quarter revenue was $6src6.9 million, an increase of 29% compared to the second quarter of 2src21. Gross profit was $118.src 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 2src21.

Net loss was $78.1 million, compared to a net loss of $27.9 million in the second quarter of 2src21. Net loss attributable to common stock was $78.5 million. Net loss per share attributable to common stock, diluted, was $src.73, compared to net loss per share, diluted, of $src.29 in the second quarter of 2src21.

Adjusted EBITDA loss was $28.6 million, compared to adjusted EBITDA income of $2.8 million in the second quarter of 2src21.

“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 2src2src, 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 2src17, 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 2src22. 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 src.82% of U.S. existing home sales by units in the second quarter of 2src22, an increase of 5 basis points from the second quarter of 2src21.(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 2src21.
  • 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, 2src22, and are subject to substantial uncertainty.

For the third quarter of 2src22 we expect:

  • Total revenue between $59src million and $627 million, representing a year-over-year growth between 9% and 16% compared to the third quarter of 2src21. Included within total revenue are real estate services segment revenue between $2srcsrc million and $2src8 million, properties segment revenue between $3src5 million and $33src 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 2src21. 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 3src,64src shares of common stock to our preferred stockholder.

Conference Call

Redfin will webcast a conference call to discuss the results at 1:3src 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 2src22, 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 2src22, NAR (1) revised its methodology of computing the mean sale price, (2) restated its previously reported mean sale price beginning from January 2src2src (and indicated that previously reported mean sale price prior to January 2src2src 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, 2src21, as supplemented by our quarterly report for the quarter ended June 3src, 2src22, 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 3src, 2src22 and 2src21 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 3src, 2src22 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 2srcsrc6, we’ve saved customers more than $1 billion in commissions. We serve more than 1srcsrc markets across the U.S. and Canada and employ over 6,srcsrcsrc people.

Redfin-F














































Redfin Corporation and Subsidiaries

Consolidated Balance Sheets

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

 

June 3src, 2src22


December 31, 2src21

Assets




Current assets




Cash and cash equivalents

$

379,922



$

591,srcsrc3


Restricted cash


28,279




127,278


Short-term investments


82,5src6




33,737


Accounts receivable, net of allowances for credit losses of $1,655 and $1,298


86,src82




69,594


Inventory


377,518




358,221


Loans held for sale


3src6,364




35,759


Prepaid expenses


3src,775




22,948


Other current assets


18,378




7,524


Total current assets


1,3src9,824




1,246,src64


Property and equipment, net


59,7src9




58,671


Right-of-use assets, net


54,321




54,2srcsrc


Mortgage servicing rights, at fair value


35,src5src





Long-term investments


52,989




54,828


Goodwill


461,349




4src9,382


Intangible assets, net


181,766




185,929


Other assets, noncurrent


12,72src




12,898


Total assets

$

2,167,728



$

2,src21,972


Liabilities, mezzanine equity, and stockholders’ equity




Current liabilities




Accounts payable

$

2src,237



$

12,546


Accrued and other liabilities


161,8src3




118,122


Warehouse credit facilities


298,3src3




33,src43


Secured revolving credit facility


156,54src




199,781


Convertible senior notes, net





23,28src


Lease liabilities


18,18src




15,src4src


Total current liabilities


655,src63




4src1,812


Lease liabilities, noncurrent


5src,92src




55,222


Convertible senior notes, net, noncurrent


1,239,873




1,214,src17


Deferred tax liabilities


728




1,2src1


Total liabilities


1,946,584




1,672,252


Series A convertible preferred stock—par value $src.srcsrc1 per share; 1src,srcsrcsrc,srcsrcsrc shares authorized; 4src,srcsrcsrc shares issued and outstanding at June 3src, 2src22 and December 31, 2src21, respectively


39,891




39,868


Stockholders’ equity




Common stock—par value $src.srcsrc1 per share; 5srcsrc,srcsrcsrc,srcsrcsrc shares authorized; 1src8,415,939 and 1src6,3src8,767 shares issued and outstanding at June 3src, 2src22 and December 31, 2src21, respectively


1src8




1src6


Additional paid-in capital


723,251




682,src84


Accumulated other comprehensive loss


(99src

)



(174

)

Accumulated deficit


(541,116

)



(372,164

)

Total stockholders’ equity


181,253




3src9,852


Total liabilities, mezzanine equity, and stockholders’ equity

$

2,167,728



$

2,src21,972

















































Redfin Corporation and Subsidiaries

Consolidated Statements of Comprehensive Loss

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

 

Three Months Ended June 3src,


Six Months Ended June 3src,


2src22


2src21


2src22


2src21

Revenue








Service

$

               344,3src9



$

               298,87src



$

               561,9src2



$

               474,463


Product


                 262,6src6




                 172,445




                 642,359




                 265,171


Total revenue


                 6src6,915




                 471,315




              1,2src4,261




                 739,634


Cost of revenue(1)








Service


                 232,886




                 177,762




                 398,695




                 312,613


Product


                 256,src26




                 167,417




                 615,src26




                 258,527


Total cost of revenue


                 488,912




                 345,179




              1,src13,721




                 571,14src


Gross profit


                 118,srcsrc3




                 126,136




                 19src,54src




                 168,494


Operating expenses








Technology and development(1)


                   51,5src6




                   41,488




                 1src1,146




                   69,166


Marketing(1)


                   56,743




                   55,398




                 1srcsrc,src85




                   67,2srcsrc


General and administrative(1)


                   71,733




                   59,567




                 13src,699




                   96,957


Restructuring and reorganization


                   12,677




                          —




                   18,386




                          —


Total operating expenses


                 192,659




                 156,453




                 35src,316




                 233,323


Loss from operations


                  (74,656

)



                  (3src,317

)



                (159,776

)



                  (64,829

)

Interest income


                       554




                       135




                       774




                       293


Interest expense


                   (3,62src

)



                   (2,813

)



                   (7,481

)



                   (4,151

)

Income tax (expense) benefit


                      (159

)



                     5,src52




                      (293

)



                     5,src52


Other (expense) income, net


                      (265

)



                         65




                   (2,176

)



                        (27

)

Net loss

$

                (78,146

)


$

                (27,878

)


$

              (168,952

)


$

                (63,662

)

Dividends on convertible preferred stock


                      (35src

)



                   (1,878

)



                   (1,144

)



                   (4,214

)

Net loss attributable to common stock—basic and diluted

$

                (78,496

)


$

                (29,756

)


$

              (17src,src96

)


$

                (67,876

)

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

$

                    (src.73

)


$

                    (src.29

)


$

                    (1.59

)


$

                    (src.65

)

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


          1src7,396,575




          1src4,391,337




          1src7,src32,381




          1src3,912,212










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 3src,


Six Months Ended June 3src,


2src22


2src21


2src22


2src21

Cost of revenue

$

                   3,879



$

                   3,758



$

                   7,257



$

                   6,736


Technology and development


                     7,7srcsrc




                     5,771




                   15,665




                   11,532


Marketing


                       924




                       535




                     1,996




                     1,src78


General and administrative


                     4,31src




                     3,679




                     8,683




                     6,981


Total

$

                 16,813



$

                 13,743



$

                 33,6src1



$

                 26,327
























































Redfin Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands, unaudited)

 

Six Months Ended June 3src,


2src22


2src21

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


31,14src




18,src18


Stock-based compensation


33,6src1




26,327


Amortization of debt discount and issuance costs


2,899




2,2src3


Non-cash lease expense


7,src96




5,448


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


2,721




238


Other


3,17src




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,src42

)



(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


(168,5srcsrc

)



(213,638

)

Investing activities




Purchases of property and equipment


(12,131

)



(13,58src

)

Purchases of investments


(82,184

)



(1src4,877

)

Sales of investments


12,946




89,536


Maturities of investments


19,425




92,843


Cash paid for acquisition, net of cash acquired


(97,341

)



(6src8,srcsrcsrc

)

Net cash used in investing activities


(159,285

)



(544,src78

)

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

)



(16,53src

)

Borrowings from warehouse credit facilities


1,628,684




464,25src


Repayments to warehouse credit facilities


(1,572,src33

)



(456,854

)

Borrowings from secured revolving credit facility


326,src25




23src,6src8


Repayments to secured revolving credit facility


(369,266

)



(13src,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

)



(3src5

)

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


(31src,src8src

)



(158,138

)

Cash, cash equivalents, and restricted cash:




Beginning of period


718,281




945,82src


End of period

$

4src8,2src1



$

787,682
























Redfin Corporation and Subsidiaries

Supplemental Financial Information and Business Metrics

(unaudited)

 

Three Months Ended


Jun. 3src,

2src22


Mar. 31,

2src22


Dec. 31,

2src21


Sep. 3src,

2src21


Jun. 3src,

2src21


Mar. 31,

2src21


Dec. 31,

2src2src


Sep. 3src,

2src2src


Jun. 3src,

2src2src

Monthly average visitors (in thousands)


52,698




51,287




44,665




49,147




48,437




46,2src2




44,135




49,258




42,537


Real estate services transactions


















Brokerage


2src,565




15,srcsrc1




19,428




21,929




21,srcsrc6




14,317




16,951




18,98src




13,828


Partner


3,983




3,417




4,6src3




4,755




4,597




3,944




4,94src




5,18src




2,691


Total


24,548




18,418




24,src31




26,684




25,6src3




18,261




21,891




24,16src




16,519


Real estate services revenue per transaction


















Brokerage

$

11,692



$

11,191



$

1src,9srcsrc



$

11,1src7



$

11,3src7



$

1src,927



$

1src,751



$

1src,241



$

9,296


Partner


2,851




2,814




2,819




2,99src




3,195




3,src84




3,123




2,988




2,417


Aggregate


1src,258




9,637




9,352




9,661




9,85src




9,233




9,src3src




8,686




8,175


U.S. market share by units(1)


src.82

%



src.79

%



src.78

%



src.78

%



src.77

%



src.75

%



src.68

%



src.7src

%



src.66

%

Revenue from top-1src Redfin markets as a percentage of real estate services revenue


59

%



57

%



61

%



62

%



64

%



62

%



63

%



63

%



63

%

Average number of lead agents


2,64src




2,75src




2,485




2,37src




2,456




2,277




1,981




1,82src




1,399


RedfinNow homes sold


423




617




6srcsrc




388




292




171




83




37




162


Revenue per RedfinNow home sold (in ones)

$

6src4,12src



$

6src8,851



$

622,519



$

599,963



$

571,67src



$

525,765



$

471,895



$

5src4,73src



$

444,757


Mortgage originations by dollars (in millions)

$

1,565



$

159



$

242



$

258



$

261



$

227



$

2src6



$

185



$

161


Mortgage originations by units (in ones)


3,86src




414




591




671




749




632




57src




539




475


(1) Prior to the second quarter of 2src22, 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 2src22, NAR (1) revised its methodology of computing the mean sale price, (2) restated its previously reported mean sale price beginning from January 2src2src (and indicated that previously reported mean sale price prior to January 2src2src 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 3src, 2src22


Real estate

services


Properties


Rentals


Mortgage


Other


Corporate

Overhead and

Intercompany

Eliminations


Total

Revenue

$

251,8src9



$

262,6src6



$

38,248



$

53,src98



$

5,894



$

(4,74src

)


$

6src6,915


Cost of revenue


177,698




255,839




7,9src1




46,316




5,898




(4,74src

)



488,912


Gross profit


74,111




6,767




3src,347




6,782




(4

)






118,srcsrc3


Operating expenses














Technology and development


27,696




4,684




14,871




1,9src4




1,189




1,162




51,5src6


Marketing


4src,765




821




13,src86




1,843




71




157




56,743


General and administrative


24,341




3,21src




21,824




9,45src




85src




12,src58




71,733


Restructuring and reorganization

















12,677




12,677


Total operating expenses


92,8src2




8,715




49,781




13,197




2,11src




26,src54




192,659


Loss from operations


(18,691

)



(1,948

)



(19,434

)



(6,415

)



(2,114

)



(26,src54

)



(74,656

)

Interest income, interest expense, income tax expense, and other expense, net


(123

)



(1,245

)



232




(35

)



11




(2,33src

)



(3,49src

)

Net loss

$

(18,814

)


$

(3,193

)


$

(19,2src2

)


$

(6,45src

)


$

(2,1src3

)


$

(28,384

)


$

(78,146

)















Three Months Ended June 3src, 2src22


Real estate

services


Properties


Rentals


Mortgage


Other


Corporate

Overhead and

Intercompany

Eliminations


Total

Net loss

$

(18,814

)


$

(3,193

)


$

(19,2src2

)


$

(6,45src

)


$

(2,1src3

)


$

(28,384

)


$

(78,146

)

Interest income(1)





(159

)



(1

)



(2,929

)



(12

)



(381

)



(3,482

)

Interest expense(2)





1,4src3







1,958







2,214




5,575


Income tax expense








(23src

)



33







356




159


Depreciation and amortization


4,551




6src3




9,511




1,src7src




318




274




16,327


Stock-based compensation(3)


9,67src




1,527




2,739




78src




441




1,656




16,813


Acquisition-related costs(4)

















1,5src7




1,5src7


Restructuring and reorganization(5)

















12,677




12,677


Adjusted EBITDA

$

(4,593

)


$

181



$

(7,183

)


$

(5,538

)


$

(1,356

)


$

(1src,src81

)


$

(28,57src

)

(1) Interest income includes $2.9 million of interest income related to originated mortgage loans for the three months ended June 3src, 2src22.

(2) Interest expense includes $2.src million of interest expense related to our warehouse credit facilities for the three months ended June 3src, 2src22.

(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 2src22 workforce reduction.

















Three Months Ended June 3src, 2src21


Real estate

services


Properties


Rentals


Mortgage


Other


Corporate

Overhead and

Intercompany

Eliminations


Total

Revenue

$

252,199



$

172,445



$

42,548



$

5,src99



$

3,422



$

(4,398

)


$

471,315


Cost of revenue


164,125




167,42src




7,57src




6,832




3,63src




(4,398

)



345,179


Gross profit


88,src74




5,src25




34,978




(1,733

)



(2src8

)






126,136


Operating expenses














Technology and development


2src,src1src




3,src8src




13,568




2,536




479




1,815




41,488


Marketing


41,746




572




12,6src7




13src




3src




313




55,398


General and administrative


18,498




2,src78




23,116




1,927




416




13,532




59,567


Total operating expenses


8src,254




5,73src




49,291




4,593




925




15,66src




156,453


Income (loss) from operations


7,82src




(7src5

)



(14,313

)



(6,326

)



(1,133

)



(15,66src

)



(3src,317

)

Interest income, interest expense, income tax expense, and other expense, net


(3

)



(662

)



212




1




1




2,89src




2,439


Net income (loss)

$

7,817



$

(1,367

)


$

(14,1src1

)


$

(6,325

)


$

(1,132

)


$

(12,77src

)


$

(27,878

)















Three Months Ended June 3src, 2src21


Real estate

services


Properties


Rentals


Mortgage


Other


Corporate

Overhead and

Intercompany

Eliminations


Total

Net income (loss)

$

7,817


$

(1,367

)


$

(14,1src1

)


$

(6,325

)


$

(1,132

)


$

(12,77src

)


$

(27,878

)

Interest income(1)




(2

)






(414

)



(1

)



(131

)



(548

)

Interest expense(2)




664







4src7







2,149




3,22src


Income tax expense







(212

)









(4,84src

)



(5,src52

)

Depreciation and amortization


3,18src



412




9,11src




313




167




495




13,677


Stock-based compensation(3)


9,src42



1,239




113




77src




191




2,388




13,743


Acquisition-related costs(4)
















5,616




5,616


Restructuring and reorganization(5)




















Adjusted EBITDA

$

2src,src39


$

946



$

(5,src9src

)


$

(5,249

)


$

(775

)


$

(7,src93

)


$

2,778


(1) Interest income includes $src.4 million of interest income related to originated mortgage loans for the three months ended June 3src, 2src21.

(2) Interest expense includes $src.4 million of interest expense related to our warehouse credit facilities for the three months ended June 3src, 2src21.

(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 2src22 workforce reduction.


















Six Months Ended June 3src, 2src22


Real estate

services


Properties


Rentals


Mortgage


Other


Corporate

Overhead and

Intercompany

Eliminations


Total

Revenue

$

429,295



$

642,359



$

76,292



$

56,src15



$

1src,263



$

(9,963

)


$

1,2src4,261


Cost of revenue


331,482




614,7src4




15,src94




51,834




1src,57src




(9,963

)



1,src13,721


Gross profit


97,813




27,655




61,198




4,181




(3src7

)






19src,54src


Operating expenses














Technology and development


54,435




8,8src3




29,154




4,251




2,225




2,278




1src1,146


Marketing


71,6src8




1,974




24,128




1,871




125




379




1srcsrc,src85


General and administrative


47,333




6,src35




46,src15




1src,974




1,562




18,78src




13src,699


Restructuring and reorganization

















18,386




18,386


Total operating expenses


173,376




16,812




99,297




17,src96




3,912




39,823




35src,316


Loss from operations


(75,563

)



1src,843




(38,src99

)



(12,915

)



(4,219

)



(39,823

)



(159,776

)

Interest income, interest expense, income tax expense, and other expense, net


(123

)



(2,869

)



7src1




(35

)



12




(6,862

)



(9,176

)

Net (loss) income

$

(75,686

)


$

7,974



$

(37,398

)


$

(12,95src

)


$

(4,2src7

)


$

(46,685

)


$

(168,952

)















Six Months Ended June 3src, 2src22


Real estate

services


Properties


Rentals


Mortgage


Other


Corporate

Overhead and

Intercompany

Eliminations


Total

Net (loss) income

$

(75,686

)


$

7,974



$

(37,398

)


$

(12,95src

)


$

(4,2src7

)


$

(46,685

)


$

(168,952

)

Interest income(1)





(184

)



(1

)



(3,247

)



(13

)



(575

)



(4,src2src

)

Interest expense(2)





3,src52







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




31,14src


Stock-based compensation(3)


19,81src




3,src64




4,979




1,381




81src




3,557




33,6src1


Acquisition-related costs(4)

















2,424




2,424


Restructuring and reorganization(5)

















18,386




18,386


Adjusted EBITDA

$

(47,3src7

)


$

15,src47



$

(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 3src, 2src22.

(2) Interest expense includes $2.2 million of interest expense related to our warehouse credit facilities for the six months ended June 3src, 2src22.

(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 2src22 workforce reduction.

















Six Months Ended June 3src, 2src21


Real estate

services


Properties


Rentals


Mortgage


Other


Corporate

Overhead and

Intercompany

Eliminations


Total

Revenue

$

42src,8src8



$

265,171



$

42,548



$

1src,81src



$

7,src68



$

(6,771

)


$

739,634


Cost of revenue


292,342




258,551




7,57src




12,7src1




6,747




(6,771

)



571,14src


Gross profit


128,466




6,62src




34,978




(1,891

)



321







168,494


Operating expenses














Technology and development


4src,13src




5,91src




13,767




4,9src4




952




3,5src3




69,166


Marketing


52,928




779




12,611




264




63




555




67,2srcsrc


General and administrative


42,429




4,5src7




23,149




3,352




933




22,587




96,957


Total operating expenses


135,487




11,196




49,527




8,52src




1,948




26,645




233,323


Loss from operations


(7,src21

)



(4,576

)



(14,549

)



(1src,411

)



(1,627

)



(26,645

)



(64,829

)

Interest income, interest expense, income tax expense, and other expense, net


(31

)



(1,src82

)



212




2




1




2,src65




1,167


Net loss

$

(7,src52

)


$

(5,658

)


$

(14,337

)


$

(1src,4src9

)


$

(1,626

)


$

(24,58src

)


$

(63,662

)















Six Months Ended June 3src, 2src21


Real estate

services


Properties


Rentals


Mortgage


Other


Corporate

Overhead and

Intercompany

Eliminations


Total

Net loss

$

(7,src52

)


$

(5,658

)


$

(14,337

)


$

(1src,4src9

)


$

(1,626

)


$

(24,58src

)


$

(63,662

)

Interest income(1)





(7

)






(771

)



(1

)



(284

)



(1,src63

)

Interest expense(2)





1,src89







835







3,src63




4,987


Income tax expense








(212

)









(4,84src

)



(5,src52

)

Depreciation and amortization


6,23src




8src3




9,111




591




334




949




18,src18


Stock-based compensation(3)


17,56src




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



$

(1,4srcsrc

)


$

(5,264

)


$

(8,31src

)


$

(952

)


$

(13,534

)


$

(12,722

)

(1) Interest income includes $src.8 million of interest income related to originated mortgage loans for the six months ended June 3src, 2src21.

(2) Interest expense includes $src.8 million of interest expense related to our warehouse credit facilities for the six months ended June 3src, 2src21.

(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 2src22 workforce reduction.















Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance

(unaudited, in millions)

 

Three Months Ended September 3src, 2src22


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.


Investor Relations

Meg Nunnally, 2src6-576-861src

[email protected]

Public Relations

Mariam Sughayer, 2src6-876-1322

[email protected]

Source: Redfin Corporation

Released August 4, 2src22



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