Redfin Corporation (NASDAQ:RDFN) today announced results for its third quarter ended September 30, 2024.
Third Quarter 2024
Third quarter revenue was $278.0 million, an increase of 3% compared to the third quarter of 2023. Gross profit was $101.9 million, an increase of 4% year-over-year. Real estate services gross profit was $48.7 million, a decrease of 10% year-over-year, and real estate services gross margin was 28%, compared to 30% in the third quarter of 2023.
Net loss was $33.8 million, compared to a net loss of $19.0 million in the third quarter of 2023. Net loss attributable to common stock was $34.1 million. Net loss per share attributable to common stock, diluted, was $0.28, compared to net loss per share, diluted, of $0.17 in the third quarter of 2023.
Adjusted EBITDA was $3.9 million, down from an adjusted EBITDA of $7.7 million in the third quarter of 2023.
"Redfin's third-quarter results were within our guidance range, and we're now forecasting fourth-quarter growth in market share and revenues," said Redfin CEO Glenn Kelman. "Already, shifting our real estate agents to a commissions-based model has improved close rates, with industry-leading attach rates for mortgage and title services. And now, the growth in our digital businesses and our reductions in headquarters costs will let us fund more demand-generation. With plans to hire hundreds of agents between now and next spring, we're emerging from a year of record low U.S. home sales ready to go on the attack."
Third Quarter Highlights
- Third quarter market share was 0.76% of U.S. existing home sales by units, compared to 0.78% in the third quarter of 2023.
- Average lead agents of 1,757, up 1 percent compared to the third quarter of 2023 and marking Redfin's second straight quarter of sequential agent growth.
- Achieved a 27% mortgage attach rate in the third quarter of 2024, up from 22% in the third quarter of 2023.1
- Maintained momentum in loyalty sales, with 37% of sales coming from loyalty customers compared to 36% in the third quarter of 2023.
- Announced the nationwide expansion of our Redfin Next agent pay plan and transitioned all existing agents to the plan on October 27. To date, Redfin has hired more than 500 agents to join the brokerage under Next.
- Launched Redfin Teams nationwide, helping teams of up to five agents formally partner to expand their business and grow their career to a new level. More than 180 agents have joined the program since it launched in September, including over 50 who are new to the brokerage.
- Extended Redfin Redesign's reach by partnering with five additional multiple listing services. The AI-powered home design tool is now available on more than 355,000 for-sale listings across the U.S. and to any U.S. homeowner who has claimed their home on Redfin.
- Expanded Redfin's rental tools nationwide, which was announced on October 15. Property managers across the country can now use Redfin to list rental homes for free, connect with renters across Redfin's family of sites, and manage the application and renter screening process.
- Supported agents and customers through the National Association of Realtors settlement changes by integrating a consumer-friendly fee agreement into our tour scheduling process and giving customers who commit to Redfin early a better deal through Sign & Save.
(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 21% in the third quarter of 2024, compared to 18% in the third quarter of 2023. |
Business Outlook
The following forward-looking statements reflect Redfin's expectations as of November 7, 2024, and are subject to substantial uncertainty.
For the fourth quarter of 2024 we expect:
- Total revenue between $237 million and $247 million, representing a year-over-year growth between 9% and 13% compared to the fourth quarter of 2023. Included within total revenue are real estate services revenue between $144 million and $150 million, rentals revenue of $51 million, mortgage revenue between $28 million and $32 million and other revenue between $13 million and $14 million.
- Total net loss is expected to be between $32 million and $25 million, compared to net loss of $23 million in the fourth quarter of 2023. This guidance includes approximately $22 million in total marketing expenses, $18 million of stock-based compensation, $9 million in depreciation and amortization, and $7 million in net interest expense. Adjusted EBITDA is expected to be between $1 million and $8 million. Furthermore, we expect to pay a final dividend of 20,427 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, each 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 nine months ended September 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, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.
Redfin-F
Redfin Corporation and Subsidiaries
|
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
165,660 |
|
|
$ |
149,759 |
|
Restricted cash |
|
174 |
|
|
|
1,241 |
|
Short-term investments |
|
— |
|
|
|
41,952 |
|
Accounts receivable, net of allowances for credit losses of $3,945 and $3,234 |
|
74,971 |
|
|
|
51,738 |
|
Loans held for sale |
|
212,921 |
|
|
|
159,587 |
|
Prepaid expenses |
|
30,531 |
|
|
|
33,296 |
|
Other current assets |
|
20,514 |
|
|
|
7,472 |
|
Total current assets |
|
504,771 |
|
|
|
445,045 |
|
Property and equipment, net |
|
43,312 |
|
|
|
46,431 |
|
Right-of-use assets, net |
|
26,275 |
|
|
|
31,763 |
|
Mortgage servicing rights, at fair value |
|
2,534 |
|
|
|
32,171 |
|
Long-term investments |
|
— |
|
|
|
3,149 |
|
Goodwill |
|
461,349 |
|
|
|
461,349 |
|
Intangible assets, net |
|
104,127 |
|
|
|
123,284 |
|
Other assets, noncurrent |
|
8,705 |
|
|
|
10,456 |
|
Total assets |
$ |
1,151,073 |
|
|
$ |
1,153,648 |
|
Liabilities, mezzanine equity, and stockholders' (deficit) equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
14,280 |
|
|
$ |
10,507 |
|
Accrued and other liabilities |
|
101,040 |
|
|
|
90,360 |
|
Warehouse credit facilities |
|
208,817 |
|
|
|
151,964 |
|
Lease liabilities |
|
13,347 |
|
|
|
15,609 |
|
Total current liabilities |
|
337,484 |
|
|
|
268,440 |
|
Lease liabilities, noncurrent |
|
22,853 |
|
|
|
29,084 |
|
Convertible senior notes, net, noncurrent |
|
571,644 |
|
|
|
688,737 |
|
Term loan |
|
243,646 |
|
|
|
124,416 |
|
Deferred tax liabilities |
|
647 |
|
|
|
264 |
|
Total liabilities |
|
1,176,274 |
|
|
|
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 September 30, 2024 and December 31, 2023 |
|
39,992 |
|
|
|
39,959 |
|
Stockholders' (deficit) equity |
|
|
|
||||
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 123,945,380 and 117,372,171 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively |
|
124 |
|
|
|
117 |
|
Additional paid-in capital |
|
886,592 |
|
|
|
826,146 |
|
Accumulated other comprehensive loss |
|
(140 |
) |
|
|
(182 |
) |
Accumulated deficit |
|
(951,769 |
) |
|
|
(823,333 |
) |
Total stockholders' (deficit) equity |
|
(65,193 |
) |
|
|
2,748 |
|
Total liabilities, mezzanine equity, and stockholders' (deficit) equity |
$ |
1,151,073 |
|
|
$ |
1,153,648 |
|
Redfin Corporation and Subsidiaries
|
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
$ |
278,015 |
|
|
$ |
268,956 |
|
|
$ |
798,697 |
|
|
$ |
758,595 |
|
Cost of revenue(1) |
|
176,152 |
|
|
|
170,616 |
|
|
|
516,436 |
|
|
|
501,927 |
|
Gross profit |
|
101,863 |
|
|
|
98,340 |
|
|
|
282,261 |
|
|
|
256,668 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Technology and development(1) |
|
40,332 |
|
|
|
44,392 |
|
|
|
128,976 |
|
|
|
139,196 |
|
Marketing(1) |
|
27,186 |
|
|
|
24,095 |
|
|
|
92,324 |
|
|
|
97,531 |
|
General and administrative(1) |
|
58,788 |
|
|
|
55,380 |
|
|
|
181,366 |
|
|
|
186,584 |
|
Restructuring and reorganization |
|
2,509 |
|
|
|
— |
|
|
|
4,732 |
|
|
|
7,159 |
|
Total operating expenses |
|
128,815 |
|
|
|
123,867 |
|
|
|
407,398 |
|
|
|
430,470 |
|
Loss from continuing operations |
|
(26,952 |
) |
|
|
(25,527 |
) |
|
|
(125,137 |
) |
|
|
(173,802 |
) |
Interest income |
|
1,839 |
|
|
|
2,060 |
|
|
|
5,132 |
|
|
|
8,170 |
|
Interest expense |
|
(8,537 |
) |
|
|
(1,603 |
) |
|
|
(19,497 |
) |
|
|
(5,291 |
) |
Income tax expense |
|
12 |
|
|
|
(239 |
) |
|
|
(375 |
) |
|
|
(882 |
) |
Gain on extinguishment of convertible senior notes |
|
— |
|
|
|
6,495 |
|
|
|
12,000 |
|
|
|
68,848 |
|
Other expense, net |
|
(144 |
) |
|
|
(158 |
) |
|
|
(559 |
) |
|
|
(537 |
) |
Net loss from continuing operations |
|
(33,782 |
) |
|
|
(18,972 |
) |
|
|
(128,436 |
) |
|
|
(103,494 |
) |
Net loss from discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,634 |
) |
Net loss |
$ |
(33,782 |
) |
|
$ |
(18,972 |
) |
|
$ |
(128,436 |
) |
|
$ |
(107,128 |
) |
|
|
|
|
|
|
|
|
||||||||
Dividends on convertible preferred stock |
|
(282 |
) |
|
|
(335 |
) |
|
|
(706 |
) |
|
|
(858 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss from continuing operations attributable to common stock—basic and diluted |
$ |
(34,064 |
) |
|
$ |
(19,307 |
) |
|
$ |
(129,142 |
) |
|
$ |
(104,352 |
) |
Net loss attributable to common stock—basic and diluted |
$ |
(34,064 |
) |
|
$ |
(19,307 |
) |
|
$ |
(129,142 |
) |
|
$ |
(107,986 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss from continuing operations per share attributable to common stock—basic and diluted |
$ |
(0.28 |
) |
|
$ |
(0.17 |
) |
|
$ |
(1.07 |
) |
|
$ |
(0.93 |
) |
Net loss attributable to common stock per share—basic and diluted |
$ |
(0.28 |
) |
|
$ |
(0.17 |
) |
|
$ |
(1.07 |
) |
|
$ |
(0.96 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted |
|
122,876,102 |
|
|
|
114,592,679 |
|
|
|
120,553,264 |
|
|
|
112,141,342 |
|
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(33,782 |
) |
|
$ |
(18,972 |
) |
|
$ |
(128,436 |
) |
|
$ |
(107,128 |
) |
Other comprehensive income |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
4 |
|
|
|
(15 |
) |
|
|
2 |
|
|
|
(73 |
) |
Unrealized gain on available-for-sale debt securities |
|
— |
|
|
|
210 |
|
|
|
40 |
|
|
|
617 |
|
Comprehensive loss |
$ |
(33,778 |
) |
|
$ |
(18,777 |
) |
|
$ |
(128,394 |
) |
|
$ |
(106,584 |
) |
(1) |
|
Includes stock-based compensation as follows: |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|||
Cost of revenue |
$ |
2,819 |
|
$ |
3,037 |
|
$ |
8,603 |
|
$ |
10,173 |
Technology and development |
|
9,135 |
|
|
8,391 |
|
|
26,092 |
|
|
24,759 |
Marketing |
|
1,131 |
|
|
1,337 |
|
|
3,911 |
|
|
3,836 |
General and administrative |
|
5,217 |
|
|
6,035 |
|
|
15,336 |
|
|
16,380 |
Total |
$ |
18,302 |
|
$ |
18,800 |
|
$ |
53,942 |
|
$ |
55,148 |
Redfin Corporation and Subsidiaries
|
|||||||
|
Nine Months Ended September 30, |
||||||
|
2024 |
|
2023 |
||||
Operating Activities |
|
|
|
||||
Net loss |
$ |
(128,436 |
) |
|
$ |
(107,128 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
33,340 |
|
|
|
48,443 |
|
Stock-based compensation |
|
53,942 |
|
|
|
55,382 |
|
Amortization of debt discount and issuance costs |
|
2,280 |
|
|
|
2,873 |
|
Non-cash lease expense |
|
9,046 |
|
|
|
12,909 |
|
Impairment costs |
|
— |
|
|
|
113 |
|
Net gain on IRLCs, forward sales commitments, and loans held for sale |
|
(1,809 |
) |
|
|
(1,767 |
) |
Change in fair value of mortgage servicing rights, net |
|
(742 |
) |
|
|
1,065 |
|
Gain on extinguishment of convertible senior notes |
|
(12,000 |
) |
|
|
(68,848 |
) |
Other |
|
548 |
|
|
|
(2,013 |
) |
Change in assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
(23,377 |
) |
|
|
(238 |
) |
Inventory |
|
— |
|
|
|
114,232 |
|
Prepaid expenses and other assets |
|
(10,141 |
) |
|
|
9,696 |
|
Accounts payable |
|
3,802 |
|
|
|
177 |
|
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent |
|
11,772 |
|
|
|
(19,346 |
) |
Lease liabilities |
|
(11,993 |
) |
|
|
(14,864 |
) |
Origination of mortgage servicing rights |
|
(170 |
) |
|
|
(699 |
) |
Proceeds from sale of mortgage servicing rights |
|
30,549 |
|
|
|
1,122 |
|
Origination of loans held for sale |
|
(3,071,291 |
) |
|
|
(2,798,337 |
) |
Proceeds from sale of loans originated as held for sale |
|
3,018,634 |
|
|
|
2,858,656 |
|
Net cash (used in) provided by operating activities |
|
(96,046 |
) |
|
|
91,428 |
|
Investing activities |
|
|
|
||||
Purchases of property and equipment |
|
(8,984 |
) |
|
|
(9,235 |
) |
Purchases of investments |
|
— |
|
|
|
(76,866 |
) |
Sales of investments |
|
39,225 |
|
|
|
124,681 |
|
Maturities of investments |
|
6,395 |
|
|
|
59,383 |
|
Net cash provided by investing activities |
|
36,636 |
|
|
|
97,963 |
|
Financing activities |
|
|
|
||||
Proceeds from the issuance of common stock pursuant to employee equity plans |
|
4,757 |
|
|
|
5,790 |
|
Tax payments related to net share settlements on restricted stock units |
|
(1,574 |
) |
|
|
(15,961 |
) |
Borrowings from warehouse credit facilities |
|
3,088,179 |
|
|
|
2,803,589 |
|
Repayments to warehouse credit facilities |
|
(3,031,326 |
) |
|
|
(2,861,779 |
) |
Principal payments under finance lease obligations |
|
(56 |
) |
|
|
(73 |
) |
Repurchases of convertible senior notes |
|
(106,953 |
) |
|
|
(212,401 |
) |
Repayment of term loan principal |
|
(1,563 |
) |
|
|
— |
|
Payments of debt issuance costs |
|
(2,222 |
) |
|
|
— |
|
Proceeds from term loan |
|
125,000 |
|
|
|
— |
|
Net cash provided by (used in) financing activities |
|
74,242 |
|
|
|
(304,347 |
) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
2 |
|
|
|
(73 |
) |
Net change in cash, cash equivalents, and restricted cash |
|
14,834 |
|
|
|
(115,029 |
) |
Cash, cash equivalents, and restricted cash: |
|
|
|
||||
Beginning of period |
|
151,000 |
|
|
|
242,246 |
|
End of period |
$ |
165,834 |
|
|
$ |
127,217 |
|
Redfin Corporation and Subsidiaries
|
|||||||||||||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||||||||||
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
||||||||||||||||
Monthly average visitors (in thousands) |
|
49,413 |
|
|
|
51,619 |
|
|
|
48,803 |
|
|
|
43,861 |
|
|
|
51,309 |
|
|
|
52,308 |
|
|
|
50,440 |
|
|
|
43,847 |
|
Real estate services transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Brokerage |
|
13,324 |
|
|
|
14,178 |
|
|
|
10,039 |
|
|
|
10,152 |
|
|
|
13,075 |
|
|
|
13,716 |
|
|
|
10,301 |
|
|
|
12,743 |
|
Partner |
|
3,440 |
|
|
|
3,395 |
|
|
|
2,691 |
|
|
|
3,186 |
|
|
|
4,351 |
|
|
|
3,952 |
|
|
|
3,187 |
|
|
|
2,742 |
|
Total |
|
16,764 |
|
|
|
17,573 |
|
|
|
12,730 |
|
|
|
13,338 |
|
|
|
17,426 |
|
|
|
17,668 |
|
|
|
13,488 |
|
|
|
15,485 |
|
Real estate services revenue per transaction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Brokerage |
$ |
12,363 |
|
|
$ |
12,545 |
|
|
$ |
12,433 |
|
|
$ |
12,248 |
|
|
$ |
12,704 |
|
|
$ |
12,376 |
|
|
$ |
11,556 |
|
|
$ |
10,914 |
|
Partner |
|
3,025 |
|
|
|
2,859 |
|
|
|
2,367 |
|
|
|
2,684 |
|
|
|
2,677 |
|
|
|
2,756 |
|
|
|
2,592 |
|
|
|
2,611 |
|
Aggregate |
|
10,447 |
|
|
|
10,674 |
|
|
|
10,305 |
|
|
|
9,963 |
|
|
|
10,200 |
|
|
|
10,224 |
|
|
|
9,438 |
|
|
|
9,444 |
|
U.S. market share by units |
|
0.76 |
% |
|
|
0.77 |
% |
|
|
0.77 |
% |
|
|
0.72 |
% |
|
|
0.78 |
% |
|
|
0.75 |
% |
|
|
0.79 |
% |
|
|
0.76 |
% |
Revenue from top-10 Redfin markets as a percentage of real estate services revenue |
|
56 |
% |
|
|
56 |
% |
|
|
55 |
% |
|
|
55 |
% |
|
|
56 |
% |
|
|
55 |
% |
|
|
53 |
% |
|
|
57 |
% |
Average number of lead agents |
|
1,757 |
|
|
|
1,719 |
|
|
|
1,658 |
|
|
|
1,692 |
|
|
|
1,744 |
|
|
|
1,792 |
|
|
|
1,876 |
|
|
|
2,022 |
|
Mortgage originations by dollars (in millions) |
$ |
1,214 |
|
|
$ |
1,338 |
|
|
$ |
969 |
|
|
$ |
885 |
|
|
$ |
1,110 |
|
|
$ |
1,282 |
|
|
$ |
991 |
|
|
$ |
1,036 |
|
Mortgage originations by units (in ones) |
|
2,900 |
|
|
|
3,192 |
|
|
|
2,365 |
|
|
|
2,293 |
|
|
|
2,786 |
|
|
|
3,131 |
|
|
|
2,444 |
|
|
|
2,631 |
|
Redfin Corporation and Subsidiaries
|
||||||||||||||||||||||
|
Three Months Ended September 30, 2024 |
|||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
(in thousands) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
$ |
175,136 |
|
|
$ |
51,660 |
|
|
$ |
35,621 |
|
|
$ |
15,598 |
|
$ |
— |
|
|
$ |
278,015 |
|
Cost of revenue |
|
126,421 |
|
|
|
12,366 |
|
|
|
30,214 |
|
|
|
7,151 |
|
|
— |
|
|
|
176,152 |
|
Gross profit |
|
48,715 |
|
|
|
39,294 |
|
|
|
5,407 |
|
|
|
8,447 |
|
|
— |
|
|
|
101,863 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technology and development |
|
26,927 |
|
|
|
10,648 |
|
|
|
675 |
|
|
|
889 |
|
|
1,193 |
|
|
|
40,332 |
|
Marketing |
|
12,907 |
|
|
|
13,600 |
|
|
|
667 |
|
|
|
12 |
|
|
— |
|
|
|
27,186 |
|
General and administrative |
|
18,263 |
|
|
|
24,074 |
|
|
|
5,885 |
|
|
|
1,215 |
|
|
9,351 |
|
|
|
58,788 |
|
Restructuring and reorganization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
2,509 |
|
|
|
2,509 |
|
Total operating expenses |
|
58,097 |
|
|
|
48,322 |
|
|
|
7,227 |
|
|
|
2,116 |
|
|
13,053 |
|
|
|
128,815 |
|
(Loss) income from continuing operations |
|
(9,382 |
) |
|
|
(9,028 |
) |
|
|
(1,820 |
) |
|
|
6,331 |
|
|
(13,053 |
) |
|
|
(26,952 |
) |
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net |
|
38 |
|
|
|
100 |
|
|
|
(2,966 |
) |
|
|
266 |
|
|
(4,268 |
) |
|
|
(6,830 |
) |
Net (loss) income from continuing operations |
$ |
(9,344 |
) |
|
$ |
(8,928 |
) |
|
$ |
(4,786 |
) |
|
$ |
6,597 |
|
$ |
(17,321 |
) |
|
$ |
(33,782 |
) |
|
Three Months Ended September 30, 2024 |
||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(in thousands) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (loss) income from continuing operations |
$ |
(9,344 |
) |
|
$ |
(8,928 |
) |
|
$ |
(4,786 |
) |
|
$ |
6,597 |
|
|
$ |
(17,321 |
) |
|
$ |
(33,782 |
) |
Interest income(1) |
|
(10 |
) |
|
|
(111 |
) |
|
|
(3,392 |
) |
|
|
(266 |
) |
|
|
(1,451 |
) |
|
|
(5,230 |
) |
Interest expense(2) |
|
— |
|
|
|
— |
|
|
|
6,208 |
|
|
|
— |
|
|
|
5,565 |
|
|
|
11,773 |
|
Income tax expense |
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
(23 |
) |
|
|
(12 |
) |
Depreciation and amortization |
|
3,002 |
|
|
|
5,077 |
|
|
|
895 |
|
|
|
227 |
|
|
|
283 |
|
|
|
9,484 |
|
Stock-based compensation(3) |
|
11,333 |
|
|
|
3,515 |
|
|
|
(89 |
) |
|
|
588 |
|
|
|
2,955 |
|
|
|
18,302 |
|
Restructuring and reorganization(4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,509 |
|
|
|
2,509 |
|
Legal contingencies(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
904 |
|
|
|
904 |
|
Adjusted EBITDA |
$ |
4,981 |
|
|
$ |
(436 |
) |
|
$ |
(1,164 |
) |
|
$ |
7,146 |
|
|
$ |
(6,579 |
) |
|
$ |
3,948 |
|
(1) |
|
Interest income includes $3.4 million of interest income related to originated mortgage loans for the three months ended September 30, 2024. |
(2) |
|
Interest expense includes $3.2 million of interest expense related to our warehouse credit facilities for the three months ended September 30, 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. |
(5) |
|
Legal contingencies includes expenses related to significant contingent liabilities resulting from litigation or other legal proceedings. |
|
Three Months Ended September 30, 2023 |
|||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
(in thousands) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
$ |
177,750 |
|
|
$ |
47,410 |
|
|
$ |
32,923 |
|
|
$ |
10,873 |
|
$ |
— |
|
|
$ |
268,956 |
|
Cost of revenue |
|
123,684 |
|
|
|
10,824 |
|
|
|
29,629 |
|
|
|
6,479 |
|
|
— |
|
|
|
170,616 |
|
Gross profit |
|
54,066 |
|
|
|
36,586 |
|
|
|
3,294 |
|
|
|
4,394 |
|
|
— |
|
|
|
98,340 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technology and development |
|
25,711 |
|
|
|
15,813 |
|
|
|
800 |
|
|
|
1,133 |
|
|
935 |
|
|
|
44,392 |
|
Marketing |
|
10,785 |
|
|
|
12,245 |
|
|
|
1,088 |
|
|
|
20 |
|
|
(43 |
) |
|
|
24,095 |
|
General and administrative |
|
18,418 |
|
|
|
21,838 |
|
|
|
6,670 |
|
|
|
952 |
|
|
7,502 |
|
|
|
55,380 |
|
Restructuring and reorganization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Total operating expenses |
|
54,914 |
|
|
|
49,896 |
|
|
|
8,558 |
|
|
|
2,105 |
|
|
8,394 |
|
|
|
123,867 |
|
(Loss) income from continuing operations |
|
(848 |
) |
|
|
(13,310 |
) |
|
|
(5,264 |
) |
|
|
2,289 |
|
|
(8,394 |
) |
|
|
(25,527 |
) |
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net |
|
41 |
|
|
|
42 |
|
|
|
(73 |
) |
|
|
207 |
|
|
6,338 |
|
|
|
6,555 |
|
Net (loss) income from continuing operations |
$ |
(807 |
) |
|
$ |
(13,268 |
) |
|
$ |
(5,337 |
) |
|
$ |
2,496 |
|
$ |
(2,056 |
) |
|
$ |
(18,972 |
) |
|
Three Months Ended September 30, 2023 |
||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(in thousands) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (loss) income from continuing operations |
$ |
(807 |
) |
|
$ |
(13,268 |
) |
|
$ |
(5,337 |
) |
|
$ |
2,496 |
|
|
$ |
(2,056 |
) |
|
$ |
(18,972 |
) |
Interest income(1) |
|
(41 |
) |
|
|
(81 |
) |
|
|
(2,886 |
) |
|
|
(207 |
) |
|
|
(1,732 |
) |
|
|
(4,947 |
) |
Interest expense(2) |
|
— |
|
|
|
— |
|
|
|
3,132 |
|
|
|
— |
|
|
|
1,598 |
|
|
|
4,730 |
|
Income tax expense |
|
— |
|
|
|
37 |
|
|
|
70 |
|
|
|
— |
|
|
|
132 |
|
|
|
239 |
|
Depreciation and amortization |
|
3,123 |
|
|
|
9,681 |
|
|
|
947 |
|
|
|
233 |
|
|
|
312 |
|
|
|
14,296 |
|
Stock-based compensation(3) |
|
11,151 |
|
|
|
4,255 |
|
|
|
473 |
|
|
|
574 |
|
|
|
2,347 |
|
|
|
18,800 |
|
Gain on extinguishment of convertible senior notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,495 |
) |
|
|
(6,495 |
) |
Adjusted EBITDA |
$ |
13,426 |
|
|
$ |
624 |
|
|
$ |
(3,601 |
) |
|
$ |
3,096 |
|
|
$ |
(5,894 |
) |
|
$ |
7,651 |
|
(1) |
|
Interest income includes $2.9 million of interest income related to originated mortgage loans for the three months ended September 30, 2023. |
(2) |
|
Interest expense includes $3.1 million of interest expense related to our warehouse credit facilities for the three months ended September 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. |
|
Nine Months Ended September 30, 2024 |
|||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
(in thousands) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue |
$ |
493,885 |
|
|
$ |
152,105 |
|
|
$ |
109,619 |
|
|
$ |
43,088 |
|
$ |
— |
|
|
$ |
798,697 |
|
Cost of revenue |
|
371,198 |
|
|
|
35,453 |
|
|
|
88,646 |
|
|
|
21,139 |
|
|
— |
|
|
|
516,436 |
|
Gross profit |
|
122,687 |
|
|
|
116,652 |
|
|
|
20,973 |
|
|
|
21,949 |
|
|
— |
|
|
|
282,261 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technology and development |
|
84,354 |
|
|
|
36,577 |
|
|
|
2,031 |
|
|
|
2,686 |
|
|
3,328 |
|
|
|
128,976 |
|
Marketing |
|
47,939 |
|
|
|
42,137 |
|
|
|
2,221 |
|
|
|
27 |
|
|
— |
|
|
|
92,324 |
|
General and administrative |
|
57,178 |
|
|
|
66,794 |
|
|
|
19,087 |
|
|
|
3,279 |
|
|
35,028 |
|
|
|
181,366 |
|
Restructuring and reorganization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
4,732 |
|
|
|
4,732 |
|
Total operating expenses |
|
189,471 |
|
|
|
145,508 |
|
|
|
23,339 |
|
|
|
5,992 |
|
|
43,088 |
|
|
|
407,398 |
|
(Loss) income from continuing operations |
|
(66,784 |
) |
|
|
(28,856 |
) |
|
|
(2,366 |
) |
|
|
15,957 |
|
|
(43,088 |
) |
|
|
(125,137 |
) |
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net |
|
6 |
|
|
|
65 |
|
|
|
(2,962 |
) |
|
|
690 |
|
|
(1,098 |
) |
|
|
(3,299 |
) |
Net (loss) income from continuing operations |
$ |
(66,778 |
) |
|
$ |
(28,791 |
) |
|
$ |
(5,328 |
) |
|
$ |
16,647 |
|
$ |
(44,186 |
) |
|
$ |
(128,436 |
) |
|
Nine Months Ended September 30, 2024 |
||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(in thousands) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (loss) income from continuing operations |
$ |
(66,778 |
) |
|
$ |
(28,791 |
) |
|
$ |
(5,328 |
) |
|
$ |
16,647 |
|
|
$ |
(44,186 |
) |
|
$ |
(128,436 |
) |
Interest income(1) |
|
(40 |
) |
|
|
(233 |
) |
|
|
(8,416 |
) |
|
|
(690 |
) |
|
|
(4,169 |
) |
|
|
(13,548 |
) |
Interest expense(2) |
|
— |
|
|
|
— |
|
|
|
11,246 |
|
|
|
— |
|
|
|
16,522 |
|
|
|
27,768 |
|
Income tax expense |
|
— |
|
|
|
109 |
|
|
|
— |
|
|
|
— |
|
|
|
266 |
|
|
|
375 |
|
Depreciation and amortization |
|
9,302 |
|
|
|
19,888 |
|
|
|
2,779 |
|
|
|
667 |
|
|
|
704 |
|
|
|
33,340 |
|
Stock-based compensation(3) |
|
34,246 |
|
|
|
9,978 |
|
|
|
663 |
|
|
|
1,688 |
|
|
|
7,367 |
|
|
|
53,942 |
|
Restructuring and reorganization(4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,732 |
|
|
|
4,732 |
|
Gain on extinguishment of convertible senior notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,000 |
) |
|
|
(12,000 |
) |
Legal contingencies(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,154 |
|
|
|
10,154 |
|
Adjusted EBITDA |
$ |
(23,270 |
) |
|
$ |
951 |
|
|
$ |
944 |
|
|
$ |
18,312 |
|
|
$ |
(20,610 |
) |
|
$ |
(23,673 |
) |
(1) |
|
Interest income includes $8.4 million of interest income related to originated mortgage loans for the nine months ended September 30, 2024. |
(2) |
|
Interest expense includes $8.3 million of interest expense related to our warehouse credit facilities for the nine months ended September 30, 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. |
(5) |
|
Legal contingencies includes expenses related to significant contingent liabilities resulting from litigation or other legal proceedings. |
|
Nine Months Ended September 30, 2023 |
|||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
(in thousands) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue(1) |
$ |
485,687 |
|
|
$ |
135,636 |
|
|
$ |
107,838 |
|
|
$ |
29,434 |
|
$ |
— |
|
|
$ |
758,595 |
|
Cost of revenue |
|
359,625 |
|
|
|
31,016 |
|
|
|
93,108 |
|
|
|
18,178 |
|
|
— |
|
|
|
501,927 |
|
Gross profit |
|
126,062 |
|
|
|
104,620 |
|
|
|
14,730 |
|
|
|
11,256 |
|
|
— |
|
|
|
256,668 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Technology and development |
|
82,650 |
|
|
|
48,081 |
|
|
|
2,177 |
|
|
|
3,475 |
|
|
2,813 |
|
|
|
139,196 |
|
Marketing |
|
51,849 |
|
|
|
42,509 |
|
|
|
3,122 |
|
|
|
46 |
|
|
5 |
|
|
|
97,531 |
|
General and administrative |
|
58,997 |
|
|
|
73,445 |
|
|
|
20,323 |
|
|
|
3,049 |
|
|
30,770 |
|
|
|
186,584 |
|
Restructuring and reorganization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
7,159 |
|
|
|
7,159 |
|
Total operating expenses |
|
193,496 |
|
|
|
164,035 |
|
|
|
25,622 |
|
|
|
6,570 |
|
|
40,747 |
|
|
|
430,470 |
|
(Loss) income from continuing operations |
|
(67,434 |
) |
|
|
(59,415 |
) |
|
|
(10,892 |
) |
|
|
4,686 |
|
|
(40,747 |
) |
|
|
(173,802 |
) |
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net |
|
41 |
|
|
|
115 |
|
|
|
(224 |
) |
|
|
475 |
|
|
69,901 |
|
|
|
70,308 |
|
Net (loss) income from continuing operations |
$ |
(67,393 |
) |
|
$ |
(59,300 |
) |
|
$ |
(11,116 |
) |
|
$ |
5,161 |
|
$ |
29,154 |
|
|
$ |
(103,494 |
) |
(1) |
|
Included in revenue is $1.2 million from providing services to our discontinued properties segment. |
|
Nine Months Ended September 30, 2023 |
||||||||||||||||||||||
|
Real estate
|
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(in thousands) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (loss) income from continuing operations |
$ |
(67,393 |
) |
|
$ |
(59,300 |
) |
|
$ |
(11,116 |
) |
|
$ |
5,161 |
|
|
$ |
29,154 |
|
|
$ |
(103,494 |
) |
Interest income(1) |
|
(41 |
) |
|
|
(238 |
) |
|
|
(9,062 |
) |
|
|
(475 |
) |
|
|
(7,400 |
) |
|
|
(17,216 |
) |
Interest expense(2) |
|
— |
|
|
|
— |
|
|
|
9,737 |
|
|
|
— |
|
|
|
5,285 |
|
|
|
15,022 |
|
Income tax expense |
|
— |
|
|
|
123 |
|
|
|
222 |
|
|
|
— |
|
|
|
537 |
|
|
|
882 |
|
Depreciation and amortization |
|
12,819 |
|
|
|
30,068 |
|
|
|
2,929 |
|
|
|
756 |
|
|
|
1,745 |
|
|
|
48,317 |
|
Stock-based compensation(3) |
|
33,041 |
|
|
|
11,580 |
|
|
|
2,554 |
|
|
|
1,696 |
|
|
|
6,277 |
|
|
|
55,148 |
|
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 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(68,848 |
) |
|
|
(68,848 |
) |
Adjusted EBITDA |
$ |
(21,574 |
) |
|
$ |
(17,767 |
) |
|
$ |
(4,736 |
) |
|
$ |
7,138 |
|
|
$ |
(25,970 |
) |
|
$ |
(62,909 |
) |
(1) |
|
Interest income includes $9.0 million of interest income related to originated mortgage loans for the nine months ended September 30, 2023. |
(2) |
|
Interest expense includes $9.7 million of interest expense related to our warehouse credit facilities for the nine months ended September 30, 2023. |
(3) |
|
Stock-based compensation consists of expenses related to 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 an impairment loss due to subleasing one of our operating leases. |
Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance
|
|||||
|
Three months ending December 31, 2024 |
||||
|
Low |
|
High |
||
Net loss |
(32 |
) |
|
(25 |
) |
Net interest expense |
6 |
|
|
6 |
|
Depreciation and amortization |
9 |
|
|
9 |
|
Stock-based compensation |
18 |
|
|
18 |
|
Adjusted EBITDA |
1 |
|
|
8 |
|
Note: Figures may not sum due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107894315/en/