Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 20, 2018 | Jul. 28, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Redfin Corp | ||
Entity Central Index Key | 1,382,821 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Voluntary Filers | No | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 81,778,130 | ||
Entity Public Float | $ 1,326,046,855 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 208,342 | $ 64,030 |
Restricted cash | 4,316 | 3,815 |
Short-term investments | 0 | 1,749 |
Prepaid expenses | 8,613 | 4,388 |
Accrued revenue, net | 13,334 | 10,625 |
Other current assets | 3,710 | 8,781 |
Loans held for sale | 1,891 | 0 |
Total current assets | 240,206 | 93,388 |
Property and equipment, net | 22,318 | 19,226 |
Intangible assets, net | 3,294 | 3,782 |
Goodwill | 9,186 | 9,186 |
Deferred offering costs | 0 | 720 |
Other assets | 6,951 | 7,175 |
Total assets: | 281,955 | 133,477 |
Current liabilities: | ||
Accounts payable | 1,901 | 5,385 |
Accrued liabilities | 26,605 | 22,253 |
Other payables | 4,068 | 3,793 |
Loan facility | 2,016 | 0 |
Current portion of deferred rent | 1,267 | 1,512 |
Total current liabilities | 35,857 | 32,943 |
Deferred rent, net of current portion | 10,668 | 8,852 |
Total liabilities | 46,525 | 41,795 |
Commitments and contingencies (Note 10) | ||
Redeemable convertible preferred stock—par value $0.001 per share; As of December 31, 2016: 166,266,114 shares authorized; 55,422,002 issued and outstanding; and aggregate liquidation preference of $167,488. As of December 31, 2017: no shares authorized, issued, and outstanding. | 0 | 655,416 |
Stockholders’ equity/(deficit): | ||
Common stock—par value $0.001 per share; 290,081,638 and 500,000,000 shares authorized, respectively; 14,687,024 and 81,468,891 shares issued and outstanding, respectively | 81 | 15 |
Preferred stock—par value $0.001 per share; As of December 31, 2016: no shares authorized, issued and outstanding. As of December 31, 2017: 10,000,000 shares authorized and no shares issued and outstanding. | 0 | 0 |
Additional paid-in capital | 364,352 | 0 |
Accumulated deficit | (129,003) | (563,749) |
Total stockholders’ equity/(deficit) | 235,430 | (563,734) |
Total liabilities, redeemable convertible preferred stock and stockholders’ equity/(deficit): | $ 281,955 | $ 133,477 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Redeemable convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Redeemable convertible preferred stock, authorized (in shares) | 0 | 166,266,114 |
Redeemable convertible preferred stock, issued (in shares) | 0 | 55,422,002 |
Redeemable convertible preferred stock outstanding (in shares) | 0 | 55,422,002 |
Aggregate liquidation preference | $ 0 | $ 167,488 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 500,000,000 | 290,081,638 |
Common stock, issued (in shares) | 81,468,891 | 14,687,024 |
Common stock, outstanding (in shares) | 81,468,891 | 14,687,024 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 10,000,000 | 0 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenue | $ 370,036 | $ 267,196 | $ 187,338 |
Cost of revenue | 258,216 | 184,452 | 138,492 |
Gross profit | 111,820 | 82,744 | 48,846 |
Operating expenses: | |||
Technology and development | 42,532 | 34,588 | 27,842 |
Marketing | 32,251 | 28,571 | 19,899 |
General and administrative | 53,009 | 42,369 | 31,394 |
Total operating expenses | 127,792 | 105,528 | 79,135 |
Income (loss) from operations | (15,972) | (22,784) | (30,289) |
Interest income and other income, net: | |||
Interest income | 882 | 173 | 46 |
Other income, net | 88 | 85 | 7 |
Total interest income and other income, net | 970 | 258 | 53 |
Net income (loss) | (15,002) | (22,526) | (30,236) |
Accretion of redeemable convertible preferred stock | (175,915) | (55,502) | (102,224) |
Net income (loss) attributable to common stock—basic | (190,917) | (78,028) | (132,460) |
Net income (loss) attributable to common stock—diluted | $ (190,917) | $ (78,028) | $ (132,460) |
Net income (loss) per share attributable to common stock—basic and diluted (in dollars per share) | $ (4.47) | $ (5.42) | $ (9.87) |
Weighted average shares used to compute net income (loss) per share attributable to common stock—basic and diluted (in shares) | 42,722,114 | 14,395,067 | 13,416,411 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net income (loss) | $ (15,002) | $ (22,526) | $ (30,236) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||
Depreciation and amortization | 7,176 | 6,293 | 4,395 |
Stock-based compensation. | 11,101 | 8,413 | 5,562 |
Change in assets and liabilities: | |||
Prepaid expenses | (4,225) | 2,244 | (3,963) |
Accrued revenue | (2,709) | (5,021) | (2,685) |
Other current assets | 5,070 | (8,778) | 721 |
Other long-term assets | 223 | (5,964) | (36) |
Accounts payable | (252) | 638 | 152 |
Accrued expenses | 5,115 | 6,581 | 3,890 |
Deferred lease liability | 749 | 8,768 | (21) |
Origination of loans held for sale | (11,008) | 0 | 0 |
Proceeds from sale of loans held for sale | 9,117 | 0 | 0 |
Net cash provided by (used in) operating activities | 5,355 | (9,352) | (22,221) |
Investing activities | |||
Sales and maturities of short-term investments | 2,741 | 1,744 | 1,590 |
Purchases of short-term investments | (992) | (1,744) | (1,550) |
Purchases of property and equipment | (12,113) | (13,567) | (4,607) |
Net cash used in investing activities | (10,364) | (13,567) | (4,567) |
Financing activities | |||
Issuance costs of redeemable convertible preferred stock | 0 | 0 | (9) |
Proceeds from tender offer | 0 | 0 | 2,659 |
In-substance dividend paid in relation to tender offer | 0 | 0 | (2,659) |
Proceeds from exercise of stock options | 3,003 | 1,495 | 1,732 |
Payment of initial public offering costs | (3,558) | (150) | 0 |
Proceeds from initial public offering, net of underwriting discounts | 148,088 | 0 | 0 |
Borrowings from warehouse credit facilities | 10,746 | 0 | 0 |
Repayments of warehouse credit facilities | (8,730) | 0 | 0 |
Other payables - customer escrow deposits related to title services | 273 | 399 | 1,822 |
Net cash provided by financing activities | 149,822 | 1,744 | 3,545 |
Net change in cash, cash equivalents, and restricted cash | 144,813 | (21,175) | (23,243) |
Cash, cash equivalents, and restricted cash: | |||
Beginning of period | 67,845 | 89,020 | 112,263 |
End of period | 212,658 | 67,845 | 89,020 |
Supplemental disclosure of non-cash investing and financing activities | |||
Conversion of redeemable convertible preferred stock to common stock | 831,331 | 0 | 0 |
Accretion of redeemable convertible preferred stock | (175,915) | (55,502) | (102,224) |
Stock-based compensation capitalized in property and equipment | (268) | (100) | (49) |
Deferred initial public offering cost accruals | 0 | (570) | 0 |
Property and equipment additions in accounts payable and accrued expenses | (31) | (3,466) | 0 |
Leasehold improvements paid directly by lessor | $ (822) | $ (520) | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity/(Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Redeemable convertible preferred stock beginning balance (in shares) at Dec. 31, 2014 | 55,422,002 | |||
Redeemable convertible preferred stock beginning balance at Dec. 31, 2014 | $ 497,699 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Redeemable convertible preferred stock issuance costs | (9) | |||
Accretion of redeemable convertible preferred stock | $ 102,224 | |||
Redeemable convertible preferred stock ending balance (in shares) at Dec. 31, 2015 | 55,422,002 | |||
Redeemable convertible preferred stock ending balance at Dec. 31, 2015 | $ 599,914 | |||
Common stock, outstanding, beginning balance (in shares) at Dec. 31, 2014 | 12,629,479 | |||
Total stockholders' deficit, beginning balance at Dec. 31, 2014 | (370,595) | $ 13 | $ 0 | $ (370,608) |
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of stock options (in shares) | 1,430,122 | |||
Exercise of stock options | 1,731 | $ 1 | 1,730 | |
Stock-based compensation | 5,611 | 5,611 | ||
In-substance dividend issued in tender offer | 0 | 2,659 | (2,659) | |
Accretion of redeemable convertible preferred stock | (102,224) | (10,000) | (92,224) | |
Net income (loss) | (30,236) | (30,236) | ||
Common stock, outstanding, ending balance (in shares) at Dec. 31, 2015 | 14,059,601 | |||
Total stockholders' deficit, ending balance at Dec. 31, 2015 | (495,713) | $ 14 | 0 | (495,727) |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Accretion of redeemable convertible preferred stock | $ 55,502 | |||
Redeemable convertible preferred stock ending balance (in shares) at Dec. 31, 2016 | 55,422,002 | |||
Redeemable convertible preferred stock ending balance at Dec. 31, 2016 | $ 655,416 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of stock options (in shares) | 627,423 | |||
Exercise of stock options | 1,495 | $ 1 | 1,494 | |
Stock-based compensation | 8,512 | 8,512 | ||
Accretion of redeemable convertible preferred stock | (55,502) | (10,006) | (45,496) | |
Net income (loss) | $ (22,526) | (22,526) | ||
Common stock, outstanding, ending balance (in shares) at Dec. 31, 2016 | 14,687,024 | 14,687,024 | ||
Total stockholders' deficit, ending balance at Dec. 31, 2016 | $ (563,734) | $ 15 | 0 | (563,749) |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Accretion of redeemable convertible preferred stock | $ 175,915 | |||
Conversion of redeemable convertible preferred stock to common stock (in shares) | (55,422,002) | |||
Conversion of redeemable convertible preferred stock to common stock | $ (831,331) | |||
Redeemable convertible preferred stock ending balance (in shares) at Dec. 31, 2017 | 0 | |||
Redeemable convertible preferred stock ending balance at Dec. 31, 2017 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Proceeds from initial public offering, net of underwriters' discounts (in shares) | 10,615,650 | |||
Proceeds from initial public offering, net of underwriters' discounts | 148,088 | $ 10 | 148,078 | |
Initial public offering costs | $ (3,708) | (3,708) | ||
Exercise of stock options (in shares) | 744,215 | 744,215 | ||
Exercise of stock options | $ 3,001 | $ 1 | 3,000 | |
Stock-based compensation | 11,369 | 11,369 | ||
Accretion of redeemable convertible preferred stock | (175,915) | (8,690) | (167,225) | |
Conversion of redeemable convertible preferred stock to common stock (in shares) | 55,422,002 | |||
Conversion of redeemable convertible preferred stock to common stock | 831,331 | $ 55 | 213,781 | 617,495 |
Net income (loss) | $ (15,002) | |||
Common stock, outstanding, ending balance (in shares) at Dec. 31, 2017 | 81,468,891 | 81,468,891 | ||
Total stockholders' deficit, ending balance at Dec. 31, 2017 | $ 235,430 | $ 81 | 364,352 | (129,003) |
Increase (Decrease) in Stockholders' Equity | ||||
Cumulative stock-based compensation adjustment | $ 0 | $ 522 | $ (522) |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies: Description of Business —Redfin Corporation (“Redfin” or the “Company”) was incorporated in October 2002 and is headquartered in Seattle, Washington. The Company operates an online real estate marketplace and provides real estate services, including assisting individuals in the purchase or sale of their residential property. The Company also provides title and settlement services, originates and sells mortgages, and buys and sells residential property. The Company has operations located in multiple states nationwide. Basis of Presentation —The consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The Company had no components of other comprehensive income (loss) during any of the years presented, as such, a consolidated statement of comprehensive income (loss) is not presented. All amounts are presented in thousands, except share and per share data. Principles of Consolidation —The consolidated financial statements include the accounts of Redfin and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated. Certain Significant Risks and Business Uncertainties —The Company is subject to the risks and challenges associated with companies at a similar stage of development. These include dependence on key individuals, successful development and marketing of its offerings, and competition with larger companies with greater financial, technical, and marketing resources. Further, during the period required to achieve substantially higher revenue in order to become profitable, the Company may require additional funds that may not be readily available or may not be on terms that are acceptable to the Company. The Company operates in the online real estate marketplace and, accordingly, can be affected by a variety of factors. For example, management of the Company believes that any of the following factors could have a significant negative effect on the Company’s future financial position, results of operations, and cash flows: unanticipated fluctuations in operating results due to seasonality and cyclicality in the real estate industry, changes in home sale prices and transaction volumes, the Company’s ability to increase market share, competition and U.S. economic conditions. Since inception through December 31, 2017, the Company has incurred losses from operations and accumulated a deficit of $129,003 , and has been dependent on equity financing to fund operations. Reverse Stock Split —On July 8, 2017, the Company’s board of directors approved an amendment to its certificate of incorporation to effect a reverse split of shares of the issued and outstanding common stock and redeemable convertible preferred stock at a 3 -to-1 ratio. The reverse stock split was approved by the Company’s stockholders and effected on July 10, 2017. The par value of the common stock and the par value of the redeemable convertible preferred stock were not adjusted as a result of the reverse stock split. All issued and outstanding shares of common stock and redeemable convertible preferred stock, dividend rates, conversion rates, options to purchase common stock, exercise prices, and the related per-share amounts contained in these consolidated financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented. Initial Public Offering —On August 2, 2017, the Company completed an initial public offering (the "IPO") whereby 10,615,650 shares of common stock were sold at a price of $15.00 per share, which included 1,384,650 shares pursuant to the underwriters' option to purchase additional shares. The Company received net proceeds of $144,380 after deducting the underwriting discount and offering expenses directly attributable to the IPO. Upon the closing of the IPO, all shares of the outstanding redeemable convertible preferred stock automatically converted into 55,422,002 shares of common stock on a one -for-one basis. Initial Public Offering Costs —Costs, including legal, accounting and other fees and costs relating to the IPO are accounted for a reduction in additional paid-in capital. Costs incurred prior to the IPO were capitalized and included as a noncurrent asset in the consolidated balance sheets. There were $720 of capitalized deferred offering costs as of December 31, 2016. Aggregate offering expenses totaled $3,708 . Use of Estimates —The preparation of consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the respective periods. The Company’s more significant estimates include, but are not limited to, valuation of deferred income taxes, stock-based compensation, fair value of common stock and redeemable convertible preferred stock, capitalization of website development costs, recoverability of intangible assets with finite lives, and the fair value of reporting units for purposes of evaluating goodwill for impairment. The amounts ultimately realized from the affected assets or ultimately recognized as liabilities will depend on, among other factors, general business conditions and could differ materially in the near term from the carrying amounts reflected in the consolidated financial statements. Cash and Cash Equivalents —The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents consist primarily of money market instruments. Restricted Cash and Other Payables —Restricted cash primarily consists of cash held in escrow on behalf of real estate buyers using the Company’s title and settlement services. Since the Company does not have rights to the cash, a corresponding customer deposit liability in the same amount is recognized in the consolidated balance sheets in other payables. When a real estate transaction closes, the restricted cash transfers from escrow and the corresponding deposit liability is reduced. Short-Term Investments —The Company’s short-term investments consisted of certificates of deposit with maturities of 12 months or less from the balance sheet date. Short-term investments are reported at cost, which approximates fair value, as of each balance sheet date. As of December 31, 2017 the Company no longer held any short-term investments. Concentration of Credit Risk —Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents. The Company generally places its cash and cash equivalents and short-term investments with high-credit-quality counterparties to make sure the financial institutions are stable when the Company’s deposits exceed Federal Deposit Insurance Corporation limits, and by policy, limit the amount of credit exposure to any one counterparty based on the Company’s analysis of the counterparty’s relative credit standing. The Company maintains its cash accounts with financial institutions where, at times, deposits exceed federal insurance limits. Other Assets and Other Current Assets —Other assets consists primarily of leased building security deposits. In May 2016, the Company signed a new lease for its corporate headquarters with a security deposit of $5,424 . At December 31, 2016 other current assets consisted primarily of a receivable, for $8,470 , due from the landlord related to the Company's corporate headquarters leasehold improvements. The Company collected the receivable in April 2017. Additionally, in January 2017, RDFN Ventures, Inc. (“Redfin Now”), a wholly owned subsidiary of the Company, began purchasing residential properties with the intent of resale. Direct property acquisition and improvement costs are capitalized and tracked directly with each specific property. Home inventories are stated at cost unless the utility of the properties is no longer as great as their cost, in which case it is written down to “market.” As of December 31, 2017 there were $3,382 in home inventories included in other current assets. Of the $3,382 in home inventories, $2,335 were listed for sale and $1,047 were in process and being made ready for sale. As of December 31, 2017, all properties were carried at cost. Loans Held for Sale —Redfin Mortgage, LLC (“Redfin Mortgage”), a wholly owned subsidiary of the Company, began originating residential mortgage loans in March 2017. Such mortgage loans are intended to be sold in the secondary mortgage market within a short period of time following origination. Mortgage loans held for sale consist of single-family residential loans collateralized by the underlying property. Mortgage loans held for sale are stated at the lower of cost or market value. As of December 31, 2017 there were $1,891 of mortgage loans held for sale. Property and Equipment —Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of two to seven years. Depreciation and amortization is included in cost of revenue, technology and development, and general and administrative and is allocated based on estimated usage for each class of asset. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the consolidated statements of operations. Repair and maintenance costs are expensed as incurred. Costs incurred in the preliminary stages of website and software development are expensed as incurred. Once an application has reached the development stage, direct internal and external costs relating to upgrades or enhancements that meet the capitalization criteria are capitalized in property and equipment and amortized on a straight-line basis over their estimated useful lives. Maintenance and enhancement costs (including those costs in the post- implementation stages) are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the websites (or software) that result in added functionality, in which case the costs are capitalized as well. Capitalized software development activities placed in service are amortized over the expected useful lives of those releases. The Company views capitalized software costs as either internal use or expansion. Currently, internal use and expansion useful lives are estimated at one year and three years, respectively. Estimated useful lives of website and software development activities are reviewed annually or whenever events or changes in circumstances indicate that intangible assets may be impaired and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades or enhancements to the existing functionality. The Company capitalized software development costs of $2,824 , $3,194 , and $4,619 during the years ended December 31, 2015, 2016, and 2017, respectively. Intangible Assets —Intangible assets are finite lived and mainly consist of trade names, developed technology and customer relationships and are amortized over their estimated useful lives of ten years. The useful lives were determined by estimating future cash flows generated by the acquired intangible assets. Amortization expense is included in cost of revenue. Impairment of Long-Lived Assets —Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured first by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such asset were considered to be impaired, an impairment loss would be recognized when the carrying amount of the asset exceeds the fair value of the asset. To date, no such impairment has occurred. Goodwill —Goodwill represents the excess of the purchase price over the fair value of the net tangible assets and identifiable intangible assets acquired in a business combination. Goodwill is not amortized, but is subject to impairment testing. The Company assesses the impairment of goodwill on an annual basis, on October 1, or whenever events or changes in circumstances indicate that goodwill may be impaired. The Company assesses goodwill for possible impairment by performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the Company qualitatively determines that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then no additional impairment steps are necessary. For the Company’s most recent impairment assessment performed as of October 1, 2017, the Company performed a qualitative assessment and determined that it was not more likely than not that the fair value of its reporting unit for which goodwill has been assigned was less than its carrying amount. In evaluating whether it was more likely than not that the fair value of its reporting unit was less than its carrying amount the Company considered macroeconomic conditions, industry and market considerations, cost factors, its overall financial performance, other relevant entity-specific events, potential events affecting its reporting unit, and changes in the fair value of the Company’s common stock. The primary qualitative factors the Company considered in its analysis as of October 1, 2017 were the Company’s overall financial performance and the fair value of the reporting unit for which goodwill was assigned, which was substantially in excess of its book value. The aggregate carrying value of goodwill was $9,186 at December 31, 2016 and 2017. Goodwill is assigned to the Company’s real estate services reporting unit, and there have been no accumulated impairments to goodwill. Leases —The Company categorizes leases at their inception as either operating or capital leases. On certain lease agreements, the Company may receive rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives the Company receives are treated as a reduction of rent expense over the term of the agreement and are presented in leasehold improvements and deferred rent on the balance sheet. Derivative Instruments —Redfin Mortgage is party to interest rate lock commitments (“IRLCs”) with customers resulting from mortgage origination operations. IRLCs for single family mortgage loans that Redfin Mortgage intends to sell are considered free-standing derivatives. All free-standing derivatives are required to be recorded on the Company’s consolidated balance sheets at fair value. Because Redfin Mortgage can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements. The Company does not use derivatives for trading purposes. Interest rate market risk, related to the residential mortgage loans held for sale and IRLCs, is offset using investor loan commitments. Changes in the fair value of IRLCs and forward sales commitments are recognized in revenue, and the fair values are reflected in other current assets and accrued liabilities, as applicable. The Company considers several factors in determining the fair value including the fair value in the underlying loan resulting from the exercise of the commitment and the probability that the loan will not fund according to the terms of the commitment (referred to as a pull-through factor). The value of the underlying loan is affected primarily by changes in interest rates. Income Taxes —Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the consolidated financial statement and tax bases of assets and liabilities at the applicable enacted tax rates. The Company will establish a valuation allowance for deferred tax assets if it is more likely than not that these items will expire before either the Company is able to realize their benefit or that future deductibility is uncertain. The Company believes that it is currently more likely than not that its deferred tax assets will not be realized and as such, it has recorded a full valuation allowance for these assets. The Company evaluates the likelihood of the ability to realize deferred tax assets in future periods on a quarterly basis, and when appropriate evidence indicates it would release its valuation allowance accordingly. The determination to provide a valuation allowance is dependent upon the assessment of whether it is more likely than not that sufficient taxable income will be generated to utilize the deferred tax assets. Based on the weight of the available evidence, which includes the Company’s historical operating losses, lack of taxable income, and accumulated deficit, the Company provided a full valuation allowance against the U.S. tax assets resulting from the tax losses and credits carried forward. In addition, current tax laws impose substantial restrictions on the utilization of research and development credit and net operating loss (“NOL”) carryforwards in the event of an ownership change, as defined by Internal Revenue Code Sections 382 and 383. Such an event, having occurred in the past or in the future, may significantly limit the Company’s ability to utilize its NOLs and research and development tax credit carryforwards. In 2017, the Company completed a Section 382 study. The study determined that the Company underwent an ownership change in 2006. Due to the Section 382 limitation determined on the date of the ownership change in 2006, NOL and R&D credits were reduced by $1,506 and $32 , respectively. Revenue Recognition —Revenue primarily consists of commissions and fees charged on each real estate transaction completed by the Company or its partner agents. The Company’s key revenue components are brokerage revenue, partner revenue, and other revenue. The Company recognizes commission-based brokerage revenue upon closing of a real estate transaction, net of any commission refund or any closing-cost reduction. Partner revenue consists of fees earned by referring customers to partner agents. Partner revenue is earned and recognized when partner agents close a referred transaction, net of any refund provided to customers. Fees and revenue from other services are recognized when the service is provided. Revenue earned from selling homes previously purchased by Redfin Now is recorded at closing on a gross basis, representing the sales price of the home. Revenue earned but not received is recorded as accrued revenue on the accompanying consolidated balance sheets, net of an allowance for doubtful accounts. Commission revenue is known and is clearing escrow, and therefore it is not estimated. The Company establishes an allowance for doubtful accounts after reviewing historical experience, age of accounts receivable balances and any other known conditions that may affect collectability. The allowance for doubtful accounts balance was $150 as of December 31, 2016 and $160 as of December 31, 2017. During the year ended December 31, 2016 there were $290 of charges and $140 of write-offs to the allowance. During the year ended December 31, 2017 there were $81 of charges and $71 of write-offs to the allowance. Cost of Revenue —Cost of revenue consists of personnel costs (including base pay and benefits), stock-based compensation, transaction bonuses, home-touring and field expenses, listing expenses, office and occupancy expenses, depreciation and amortization related to fixed assets and acquired intangible assets, and, for Redfin Now, the cost of homes including the purchase price and capitalized improvements. Technology and Development —Technology and development costs, which include research and development costs, are expensed as incurred and primarily include personnel costs (including base pay and benefits), stock-based compensation, data licenses, software and equipment, and infrastructure such as for data centers and hosted services. Technology and development expenses also include amortization of capitalized internal-use software and website and mobile application development costs. Advertising and Advertising Production Costs —The Company expenses advertising costs as they are incurred and production costs as of the first date the advertisement takes place. Advertising costs totaled $8,394 , $17,570 , and $21,902 in 2015, 2016, and 2017 respectively, and are included in marketing expenses. Advertising production costs totaled $1,661 , $1,640 , and $1,609 in 2015, 2016, and 2017, respectively, and are included in marketing expenses. Stock-based Compensation —The Company measures expense for options to purchase common stock and restricted stock units at fair value on the grant date and recognizes the expense over the requisite service period on a straight-line basis. The fair value of options to purchase common stock was calculated using the Black-Scholes-Merton option-pricing model. Through December 31, 2016, the Company recognized compensation expense for only the portion of options expected to vest using an estimated forfeiture rate that is derived from historical employee termination behavior. On January 1, 2017, the Company adopted Accounting Standards Update (“ASU”) 2016-09 and elected to recognize forfeitures as they occur rather than estimate forfeitures. The Company has a stock-based compensation plan that is more fully described in Note 7. Recently Adopted Accounting Pronouncements —In November 2016, the Financial Accounting Standards Board ("FASB") issued guidance on the classification and presentation of changes in restricted cash on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017, and early adoption is permitted. The adoption of this guidance requires a retrospective transition method to each period presented. The Company early adopted this guidance on October 1, 2017. Upon adoption, the following balances were reclassified: restricted cash to the reconciliation of change in cash, cash equivalents and restricted cash, and other payables related to cash held in escrow on behalf of customers to financing activities. In the Company’s capacity as fiduciary, the cash receipt is a function of providing the customer with a service (title). Therefore, the escrow funds payable are akin to a repayment of debt, a financing activity, whereby the Company in its role as fiduciary is temporarily holding cash in its restricted accounts on behalf of its customers and subsequently releases the cash to settle the customers' contractual obligation. This reclassification will maintain an accurate reflection of the Company's cash flows from operating activities. The reconciliation of amounts previously reported to the revised amounts upon adoption are as follows: Previously reported Adjustments As revised Year Ended December 31, 2015 Operating activities $ (22,160 ) $ (61 ) $ (22,221 ) Financing activities 1,723 1,822 3,545 Net change in cash, cash equivalents, and restricted cash (1) $ (25,004 ) $ (1,761 ) $ (23,243 ) Year Ended December 31, 2016 Operating activities $ (9,345 ) $ (7 ) $ (9,352 ) Financing activities 1,345 399 1,744 Net change in cash, cash equivalents, and restricted cash (1) $ (21,567 ) $ (392 ) $ (21,175 ) (1) Previously titled: net change in cash and cash equivalents In January 2017, the FASB issued guidance simplifying the test for goodwill impairment. Step 2 from the goodwill impairment test is no longer required, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit’s fair value. This guidance is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019, and early adoption is permitted. This guidance must be applied on a prospective basis. The Company adopted this guidance for interim and annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company performs its goodwill assessment annually on October 1 of each year or as events merit, with the last test performed on October 1, 2017. The adoption of this guidance did not have any impact on the Company's financial position, results of operations or cash flows. In March 2016, the FASB issued guidance on several aspects of the accounting for share-based payment transactions, including the income tax consequences, impact of forfeitures, classification of awards as either equity or liabilities and classification on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption is permitted. The Company adopted this guidance on January 1, 2017 using the modified retrospective approach through a cumulative-effect adjustment of $522 to beginning accumulated deficit, and the Company elected to account for forfeitures as they occur beginning on January 1, 2017. The adoption of this guidance did not have a material impact on the Company’s financial position, results of operations or cash flows. Recently Issued Accounting Pronouncements —In August 2016, the FASB issued guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. This new standard will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017, which means that it will be effective for the Company in its fiscal year beginning January 1, 2018. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case the Company would be required to apply the amendments prospectively as of the earliest date practicable. The adoption of this standard is not expected to have a material impact on the Company’s statement of cash flows. In February 2016, the FASB issued a new standard to account for leases. This standard requires the recognition of a right-of-use asset and lease liability on the balance sheet for all leases. This standard also requires more detailed disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018, and should be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and early adoption is permitted. The Company expects to adopt this guidance on January 1, 2019. Although the Company is in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements, the Company currently believes the most significant changes will be related to the recognition of new right-of-use assets and lease liabilities on the Company's balance sheet for real estate operating leases. In May 2014, the FASB issued a new standard to account for revenue. This guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company will adopt this guidance on January 1, 2018, using the modified retrospective adoption methodology. Both real estate and other revenue contain single performance obligations and the Company believes the timing of the satisfaction of the performance obligations, triggering the recognition of revenue, will not differ from the Company's current timing for recognizing revenue. The assessment of the policy changes and quantitative and qualitative impacts is complete and as the amounts and timing of real estate and other revenue will not change, the Company will not recognize a cumulative adjustment to retained earnings upon adoption. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The Company’s financial instruments consist of cash and cash equivalents, short-term investments, accrued revenue, restricted cash, accounts payable, certain accrued liabilities, interest rate lock commitments, forward sales commitments, and redeemable convertible preferred stock. The fair value of the Company’s financial instruments approximates their recorded values due to their short period to maturity. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value measurements defines a three-level valuation hierarchy for disclosures as follows: Level I —Unadjusted quoted prices in active markets for identical assets or liabilities. Level II —Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level III —Unobservable inputs that are supported by little or no market activity, requiring the Company to develop its own assumptions. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments consist of Level I and Level II assets and liabilities. Level I assets include highly liquid money market funds that are included in cash and cash equivalents and Level II assets include certificates of deposit that are included as short-term investments, IRLCs and forward sales commitments, included in other current assets and other current liabilities. The certificates of deposit are measured by observable market data for substantially the full term of the assets or liabilities. Interest rate lock commitments and forward sales commitments are measured by observable marketplace prices. The Company’s redeemable convertible preferred stock is categorized as Level III. Redeemable convertible preferred stock is valued at each reporting date based on unobservable inputs and management’s judgment due to the absence of quoted market prices, inherent lack of liquidity and the long-term nature of such financial instruments. The Company’s redeemable convertible preferred stock is measured at fair value using a weighted average of the probability weighted expected return method (“PWERM”), the income approach, and the market approach. Specifically, the income and market approach models are weighted in relation to the probability of a private company scenario, whereas the PWERM method is weighted in relation to the probability of future exit scenarios. The income approach incorporates the use of the discounted cash flow method, whereas the market approach incorporates the use of the guideline public company method. Application of the discounted cash flow method requires estimating the annual cash flows that the business enterprise is expected to generate in the future with the application of a discount rate and terminal value. In the guideline public company method, valuation multiples, including total invested capital, are calculated based on financial statements and stock price data from selected guideline publicly traded companies. A comparative analysis is then performed for factors including, but not limited to size, profitability and growth to determine fair value. Under the PWERM, value is determined based upon an analysis of future values for the enterprise under different potential outcomes (e.g., sale, merger, IPO, dissolution). The value determined for the enterprise is then allocated to each class of stock based upon the assumption that each class will look to maximize its value. The values determined for each class of stock under each scenario are weighted by the probability of each scenario and then discounted to a present value. Any change in the fair value is recognized as accretion expense (income) and included as an adjustment to net loss to arrive at net income (loss) attributable to common stock on the consolidated statements of operations. Summary of changes in fair value are reflected in the consolidated balance sheets, consolidated statements of changes in redeemable convertible preferred stock and stockholders’ deficit, and Note 6. The Company used the value of the common stock at the IPO price of $15.00 per share to determine the accretion amount through conversion of the redeemable convertible preferred stock to common stock. Significant unobservable inputs used in the determination of fair value of the Company’s redeemable convertible preferred stock for the years ended December 31, 2015 and 2016 included the following: Year Ended December 31, 2015 2016 Valuation Methodology: Income approach (private company) 12.5% 12.5%-15.0% Market approach (private company) 12.5% 12.5%-15.0% PWERM (IPO) 56.3% 52.5%-60.0% PWERM (M&A) 18.8% 15.0%-17.5% IPO revenue multiple 4.0x-5.0x 3.0x-4.5x Forecasted revenue growth rate 30.0%-50.3% 28.0%-41.80% Discount rate 20.0%-30.0% 20.0%-30.0% A summary of assets, (liabilities), and (mezzanine equity) at December 31, 2016 and 2017, related to our financial instruments, measured at fair value on a recurring basis, is set forth below: Financial Instrument Fair Value Hierarchy Fair Value December 31, 2016 2017 Money market funds (included in cash and cash equivalents) Level I 46,357 177,235 Certificates of deposit (included in short-term investments) Level II 1,749 — Interest rate lock commitments Level II — 29 Forward loan commitments Level II — (4 ) Redeemable convertible preferred stock (mezzanine equity) Level III (655,416 ) — |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment: A summary of property and equipment at December 31, 2016 and 2017 is as follows: Useful Lives December 31, (years) 2016 2017 Leasehold improvements Shorter of lease term or economic life $ 4,911 $ 16,039 Website and software development costs 1-3 10,114 14,501 Computer and office equipment 3 2,846 2,192 Software 3 1,367 685 Furniture 7 2,406 3,039 Construction in progress 10,856 — 32,500 36,456 Accumulated depreciation and amortization (13,274 ) (14,138 ) Property and equipment, net $ 19,226 $ 22,318 Depreciation and amortization expense for property and equipment amounted to $3,907 , $5,805 , and $6,688 for the years ended December 31, 2015, 2016, and 2017, respectively. |
Acquired Intangible Assets
Acquired Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets | Acquired Intangible Assets: As part of a business acquisition in 2014, the Company recorded $4,880 in intangible assets, measured at fair value, and reflected in the table below. Acquired intangible assets are amortized using the straight-line method over their estimated useful life, which approximates the expected use of these assets. Amortization expense amounted to $488 for each year ended December 31, 2015, 2016, and 2017, respectively. Amortization expense of $2,440 will be recognized over the next five years, or $488 per year. December 31, 2016 December 31, 2017 Useful Gross Accumulated Net Gross Accumulated Amortization Net Trade Names 10 $ 1,040 $ (234 ) $ 806 $ 1,040 $ (338 ) $ 702 Developed technology 10 2,980 (670 ) 2,310 2,980 (968 ) 2,012 Customer relationships 10 860 (194 ) 666 860 (280 ) 580 $ 4,880 $ (1,098 ) $ 3,782 $ 4,880 $ (1,586 ) $ 3,294 |
Operating Segments
Operating Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments: Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker (“CODM”) in deciding how to make operating decisions, allocate resources and in assessing performance. The Company has five operating segments and one reportable segment, real estate. Real estate revenue is derived from commissions and fees charged on real estate transactions closed by us or partner agents. Other revenue consists of fees charged for title and settlement services, mortgage banking operations, Walk Score licensing and advertising fees, homes sold through Redfin Now, and other services. The Company’s CODM is its Chief Executive Officer. The CODM evaluates the performance of the Company’s operating segments based on revenue and gross profit. The Company does not analyze discrete segment balance sheet information related to long-term assets, all of which are located in the United States. All other financial information is presented on a consolidated basis. Information on each of the reportable and other segments and reconciliation to consolidated net income (loss) is as follows: Year End December 31, 2015 2016 2017 Real estate Revenue $ 181,446 $ 260,383 $ 351,570 Cost of revenue 131,522 176,408 237,832 Gross profit $ 49,924 $ 83,975 $ 113,738 Other Revenue 5,892 6,813 18,466 Cost of revenue 6,970 8,044 20,384 Gross profit $ (1,078 ) $ (1,231 ) $ (1,918 ) Consolidated Revenue 187,338 267,196 370,036 Cost of revenue 138,492 184,452 258,216 Gross profit $ 48,846 $ 82,744 $ 111,820 Operating expenses 79,135 105,528 127,792 Net income (loss) $ (30,236 ) $ (22,526 ) $ (15,002 ) Real estate revenue consisted of the following: Year End December 31, 2015 2016 2017 Real estate revenue Brokerage revenue $ 171,276 $ 244,079 $ 330,372 Partner revenue 10,170 16,304 21,198 Total real estate revenue $ 181,446 $ 260,383 $ 351,570 |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock and Stockholders' Equity/(Deficit) | 12 Months Ended |
Dec. 31, 2017 | |
Temporary Equity And Stockholder's Equity [Abstract] | |
Redeemable Convertible Preferred Stock and Stockholders' Equity/(Deficit) | Redeemable Convertible Preferred Stock and Stockholders’ Equity/(Deficit) : Redeemable Convertible Preferred Stock —The Company's redeemable convertible preferred stock automatically converted into common stock at a rate of one -for-one on the closing of the Company's IPO on August 2, 2017. As such, no shares of redeemable convertible preferred stock were authorized, issued and outstanding as of December 31, 2017. As of December 31, 2016, the Company had outstanding redeemable convertible preferred stock as follows: As of December 31, 2016 Shares Authorized Shares Issued and Outstanding Aggregate Liquidation Preference Proceeds, Net of Issuance Costs Series A-1 4,378,284 1,459,427 $ 500 $ 462 Series A-2 109,552 36,517 11 11 Series A-3 9,099,610 3,033,202 259 241 Series B 36,338,577 12,112,853 7,998 7,952 Series C 33,388,982 11,129,656 12,000 11,950 Series D 28,574,005 9,524,665 10,269 10,201 Series E 12,041,148 4,013,712 14,924 14,841 Series F 20,808,580 6,936,186 50,536 50,453 Series G 21,527,376 7,175,784 70,991 68,062 Total 166,266,114 55,422,002 $ 167,488 $ 164,173 The terms of all redeemable convertible preferred stock are summarized below: Conversion —Each share of redeemable convertible preferred stock is convertible at the option of the holder into such number of common stock as is determined by dividing the original issue price by the conversion price in effect at the time of conversion. The original issue prices, adjusted for the reverse split, are as follows: $0.3426 for Series A-1 preferred, $0.2913 for Series A-2 preferred, $0.0855 for Series A-3 preferred, $0.6603 for Series B preferred, $1.0782 for Series C preferred, $1.0782 for Series D preferred, $3.7182 for Series E preferred, $7.2858 for Series F preferred, and $9.8931 for Series G preferred. Under the terms of the Company’s Amended and Restated Certificate of Incorporation, redeemable convertible preferred stock shall be automatically converted into shares of common stock upon the occurrence of specific events, including a firm commitment underwritten public offering with aggregate net proceeds of not less than $50,000 . Liquidation Preference —In the event of a voluntary or involuntary liquidation, dissolution, or winding-up of the Company, the holders of redeemable convertible preferred stock will be entitled to receive, prior and in preference to any distribution of any of the assets of the Company to the holders of common stock, an amount per share equal to the greater of (1) the original issue price (as adjusted for stock splits, stock dividends, reclassifications, and the like) for each share of redeemable convertible preferred stock held by them, plus declared but unpaid dividends, and (2) the amount such holder would have received if, immediately prior to such event, such holder had converted such share of redeemable convertible preferred stock into common stock. After payment of all preferential amounts, the remaining assets shall be distributed ratably among all holders of common stock on a pro rata basis based on the number of shares of common stock outstanding held by each such holder. Redemption —At any time after December 15, 2021, the holders of not less than 67% of outstanding redeemable convertible preferred stock may request the Company to redeem all the outstanding shares of redeemable convertible preferred stock by paying in cash a sum per share with respect to each share of redeemable convertible preferred stock equal to the greater of (1) the original issue price of each share of preferred stock plus all declared but unpaid dividends or (2) the fair market value of each share of redeemable convertible preferred stock as determined by an appraisal performed by an independent third party approved by holders of at least 67% of the then outstanding shares of redeemable convertible preferred stock and the Company. Accretion represents the increase or decrease in the redemption value of the Company’s redeemable convertible preferred stock. The redemption value increased for all periods presented. The recognized accretion related to the increase in the redemption value of the redeemable convertible preferred stock was reclassed upon the successful completion of the IPO, which occurred during the period ended December 31, 2017. The following table presents the accretion of the redeemable convertible preferred stock to its redemption value recorded within the consolidated statements of changes in redeemable convertible preferred stock and stockholders’ deficit during the periods presented: Year End December 31, 2015 2016 2017 Series A-1 $ (2,674 ) $ (1,618 ) $ (4,904 ) Series A-2 (67 ) (40 ) (123 ) Series A-3 (5,650 ) (3,360 ) (10,192 ) Series B (22,561 ) (13,416 ) (40,336 ) Series C (20,390 ) (12,333 ) (37,062 ) Series D (17,450 ) (10,555 ) (31,717 ) Series E (7,353 ) (4,086 ) (12,884 ) Series F (12,494 ) (6,025 ) (20,184 ) Series G (13,585 ) (4,069 ) (18,513 ) Total $ (102,224 ) $ (55,502 ) $ (175,915 ) Voting —The holder of each share of redeemable convertible preferred stock has the right to one vote for each full share of common stock into which its respective shares of redeemable convertible preferred stock would be convertible on the record date for the vote. Dividends —The holders of redeemable convertible preferred stock are entitled to receive noncumulative dividends out of any funds legally available, prior and in preference to any declaration or payment of any dividends to holders of common stock. Dividends are payable when, as and if declared by the board of directors at a rate of $0.0273 per share for Series A-1 preferred, $0.0234 per share for Series A-2 preferred, $0.0069 per share for Series A-3 preferred, $0.0528 per share for Series B preferred, $0.0864 per share for Series C preferred and Series D preferred, $0.2976 per share for Series E preferred, $0.5829 per share for Series F preferred, and $0.7914 per share Series G preferred, per year (as adjusted for stock splits, stock dividends, reclassifications and the like). The holders of the redeemable convertible preferred stock also shall be entitled to participate pro rata in any dividends or other distributions paid on the common stock on an as-if-converted basis. Common Stock —At December 31, 2016 and 2017, the Company was authorized to issue 290,081,638 and 500,000,000 shares of common stock with a par value of $0.001 per share, respectively. The Company has reserved shares of common stock, on an as-converted basis, for future issuance as follows: December 31, 2016 2017 Redeemable convertible preferred stock outstanding 55,422,002 — Stock options issued and outstanding 13,291,684 13,180,950 Restricted stock units outstanding — 981,276 Shares available for future equity grants 4,941,504 7,026,071 Total 73,655,190 21,188,297 Preferred Stock —As of December 31, 2017, the Company had authorized 10,000,000 shares of preferred stock, par value $0.001 , of which no shares were outstanding. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation: 2017 Employee Stock Purchase Plan —The Company’s 2017 Employee Stock Purchase Plan (“2017 ESPP”) was approved by the board of directors on July 27, 2017 and enables eligible employees to purchase shares of the Company’s common stock at a discount. Purchases will be accomplished through participation in discrete offering periods. The Company initially reserved 1,600,000 shares of common stock for issuance under the 2017 ESPP. The number of shares reserved for issuance under the 2017 ESPP will increase automatically on January 1 of each calendar year beginning after the first offering date and continuing through January 1, 2028 by the number of shares equal to the lesser of 1% of the total outstanding shares of the Company’s common stock as of the immediately preceding December 31 or an amount determined by the board of directors. On each purchase date, eligible employees will purchase the Company’s common stock at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s common stock on the first trading day of the offering period, and (2) the fair market value of the Company’s common stock on the purchase date. No shares of common stock have been purchased under the 2017 ESPP as the initial offering period has yet to commence. 2004 Equity Incentive Plan —The Company granted options under its 2004 equity incentive plan, as amended, ("2004 Plan"), until July 26, 2017, when the plan was terminated in connection with the Company’s IPO. Accordingly, no shares are available for future issuance under this plan. The 2004 Plan continues to govern outstanding equity awards granted thereunder. The term of each option under the plan shall be no more than 10 years and generally vest over a four -year period. 2017 Equity Incentive Plan —The Company's 2017 Equity Incentive Plan ("2017 EIP") became effective on July 26, 2017, and provides for the issuance of incentive and nonqualified common stock options and restricted stock units to employees, directors, officers, and consultants of the Company. The number of shares of common stock reserved for issuance under the 2017 EIP is 7,859,659 . The number of shares reserved for issuance under the 2017 EIP will increase automatically on January 1 of each calendar year beginning on January 1, 2018 and continuing through January 1, 2028, by the number of shares equal to the lesser of 5% of the total outstanding shares of the Company's common stock as of the immediately preceding December 31 or an amount determined by the board of directors. On December 22, 2017, the board of directors determined that there would be no increase to the number of shares reserved for issuance under the 2017 EIP on January 1, 2018. The term of each restricted stock unit and option under the plan shall be no more than 10 years and generally vest over a four -year period. The term of each option grant shall be no more than 10 years. Black-Scholes-Merton option-pricing model —The grant-date fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option-pricing model. The inputs used below are subjective and generally require significant analysis and judgment to develop. The Company has not declared or paid any cash dividends and does not currently expect to do so in the future. The risk-free interest rate used in the Black-Scholes-Merton option-pricing model is based on the implied yield currently available in U.S. Treasury securities at maturity with an equivalent term. Expected volatility is based on an average volatility of stock prices for a group of real estate and technology industry peers. The Company uses the “simplified method” to calculate expected life due to the lack of historical exercise data, which assumes a ratable rate of exercise over the contractual life to estimate the expected term for employee options. The expected term of options represents the period that the stock-based awards are expected to be outstanding for the remaining unexercised shares. The Company accounts for forfeitures as they occur. The range of assumptions for the years ended December 31, 2015, 2016, and 2017, are provided in the following table. Year End December 31, 2015 2016 2017 Expected life 7 years 7 years 7 years Volatility 42.51%-49.62% 38.15%-41.36% 37.88%-40.97% Risk-free interest rate 1.71%-2.01% 1.39%-2.32% 1.96%-2.26% Dividend yield —% —% —% Weighted-average grant date fair value $3.99 $4.11 $4.86 The following table presents information regarding options granted, exercised, forfeited, or cancelled for the periods presented: Weighted- Average Exercise Price Weighted Average Remaining Contractual Life (years) Outstanding at January 1, 2017 13,291,684 $ 5.85 7.74 $ 61,774 Options granted 1,137,046 10.78 Options exercised (744,215 ) 4.03 20,308 Options forfeited or canceled (503,565 ) 7.95 Outstanding at December 31, 2017 13,180,950 6.30 7.02 329,786 Options exercisable at December 31, 2017 8,754,523 4.94 6.25 230,914 The total grant date fair value of shares vested during 2015, 2016, and 2017 was $4,917 , $9,817 , $10,571 , respectively. The total grant date fair value of shares exercised during 2015, 2016, and 2017 was $1,373 , $911 , and $3,002 , respectively. There was $18,187 of total unrecognized stock-based compensation related to non-vested stock option arrangements granted under the 2004 Plan as of December 31, 2017. These costs are expected to be recognized over a weighted-average period of 2.30 years. The total fair value of options vested was $71,592 and $274,192 as of December 31, 2016 and December 31, 2017, respectively. The following table summarizes activity for restricted stock units for the year ended December 31, 2017: Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested outstanding at January 1, 2017 — $ — Granted 981,929 22.78 Vested — — Forfeited or canceled (653 ) 22.78 Unvested outstanding at December 31, 2017 981,276 $ 22.78 The fair value of the outstanding restricted stock units will be recorded as stock-based compensation over the vesting period. As of December 31, 2017, there was $21,856 of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted-average period of 3.75 years. There were no restricted stock units authorized, issued, or outstanding as of December 31, 2016. The following table presents the detail of stock-based compensation amounts included in the Company’s consolidated statements of operations for the periods indicated below: Year End December 31, 2015 2016 2017 Cost of revenue $ 1,440 $ 2,266 $ 2,902 Technology and development 1,375 2,383 3,325 Marketing 298 469 487 General and administrative 2,449 3,295 4,387 Total stock-based compensation $ 5,562 $ 8,413 $ 11,101 Stock-based compensation of $772 is included in general and administrative expenses attributable to the tender offer that closed in August 2015. Existing investors acquired 1,593,409 shares of common stock at a premium of $2.16 per share over the fair value at the time of the tender offer. Of the 1,593,409 shares, 358,330 were purchased from employees and 1,235,079 were purchased from non-employees. The premium attributable to the shares tendered from non-employees in the amount of $2,659 was treated as an in-substance dividend. The Company capitalizes stock-based compensation related to work performed on internally developed software. There was $49 , $100 , and $268 of stock-based compensation that was capitalized in the years ended 2015, 2016, and 2017, respectively. All stock-based compensation is related to employees in technology and development. |
Net Income (Loss) per Share Att
Net Income (Loss) per Share Attributable to Common Stock | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share Attributable to Common Stock | Net Income (Loss) per Share Attributable to Common Stock: Net income (loss) per share attributable to common stock is computed by dividing the net income (loss) attributable to common stock by the weighted-average number of common shares outstanding. The Company has outstanding stock options and redeemable convertible preferred stock, which are included in the calculation of diluted net income (loss) attributable to common stock per share whenever doing so would be dilutive. The Company calculates basic and diluted net income (loss) per share attributable to common stock in conformity with the two-class method required for companies with participating securities. The Company considers all series of redeemable convertible preferred stock to be participating securities. Under the two-class method, net loss attributable to common stock is not allocated to the redeemable convertible preferred stock as the holders of redeemable convertible preferred stock do not have a contractual obligation to share in losses. Upon the conversion of the redeemable convertible preferred stock to common stock on the date of the IPO, or August 2nd, 2017, the Company only had one class of participating security, common stock. Diluted net income (loss) per share attributable to common stock is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, redeemable convertible preferred stock and options to purchase common stock are considered anti-dilutive securities for all periods presented. Basic and diluted net income (loss) per share attributable to common stock was the same for each period presented. The following table sets forth the calculation of basic and diluted net income (loss) per share attributable to common stock during the periods presented: Year End December 31, 2015 2016 2017 Numerator: Net income (loss) $ (30,236 ) $ (22,526 ) $ (15,002 ) Accretion of preferred stock (102,224 ) (55,502 ) (175,915 ) Net income (loss) attributable to common stock—basic and diluted $ (132,460 ) $ (78,028 ) $ (190,917 ) Denominator: Weighted average shares used to compute net income (loss) per share attributable to common stock—basic and diluted 13,416,411 14,395,067 42,722,114 Net income (loss) per share attributable to common stock—basic and diluted $ (9.87 ) $ (5.42 ) $ (4.47 ) The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net income (loss) per share attributable to common stock for the periods presented because their effect would have been anti-dilutive. For the year ended December 31, 2017 shares of the redeemable convertible preferred stock were anti-dilutive, but converted to common stock on a one -for-one basis on August 2, 2017 upon the successful completion of the IPO, and as such were included in the weighted average shares outstanding for the period they were outstanding as shares of common stock. Year End December 31, 2015 2016 2017 Redeemable convertible preferred stock 55,422,002 55,422,002 — Options outstanding 10,406,277 13,291,684 13,180,950 Restricted stock units — — 981,276 Total 65,828,279 68,713,686 14,162,226 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes: On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act incorporates broad and complex changes to the U.S. tax code. The main provision of the Tax Act that is applicable to the Company is the reduction of a maximum federal tax rate of 35% to a flat tax rate of 21%, effective January 1, 2018. The Company has incorporated the change in federal tax rates in its annual tax provision. Consequently, the Company has recorded a decrease in net deferred tax assets of $12,658 , with a corresponding net adjustment to deferred income tax expense of $12,658 . These adjustments are fully offset by a decrease in the valuation allowance for the year ended December 31, 2017. Therefore, the net impact to the Company’s tax expense is $0 . The Company has completed and recorded the adjustments necessary under Staff Accounting Bulletin No. 118 related to the Tax Act. The Company’s deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table represents the significant components of the Company’s deferred tax assets and liabilities for the periods presented: December 31, 2016 2017 Deferred tax assets: Net operating loss carryforwards $ 31,618 $ 21,627 Credit carryforwards 3,200 4,230 Stock-based compensation 1,801 2,806 Accruals and reserves 4,588 3,953 Gross deferred tax assets 41,207 32,616 Valuation allowance (38,307 ) (29,818 ) Total deferred tax assets, net of valuation allowance 2,900 2,798 Deferred tax liabilities: Intangible assets (1,419 ) (847 ) Prepaid expenses (1,481 ) (1,951 ) Total deferred tax liabilities (2,900 ) (2,798 ) Net deferred tax assets and liabilities $ — $ — The valuation allowance increased by $11,296 and $6,800 , during the years ended December 31, 2015 and 2016, respectively, and decreased by $8,489 during the year ended December 31, 2017. The following table represents the Company’s NOL carryforwards as of December 31, 2016 and 2017: December 31, 2016 2017 Federal 84,973 87,071 Various states 4,133 4,231 Federal net operating loss carryforwards are available to offset future taxable income and begin to expire in 2025. State net operating loss carryforwards are available to offset future taxable income and begin to expire in 2018. Net operating loss carryforward periods for the various state jurisdictions range from 5 to 20 years. Additionally, net research and development credit carryforwards of $ 3,200 and $ 4,230 are available as of December 31, 2016 and 2017, respectively, to reduce future tax liabilities. The research and development credit carryforwards begin to expire in 2026. Current tax laws impose substantial restrictions on the utilization of research and development credits and NOL carryforwards in the event of an ownership change, as defined by the Internal Revenue Code Section 382 and 383. Such an event may significantly limit the Company’s ability to utilize its net NOLs and research and development tax credit carryforwards. During 2017 the Company completed a Section 382 study. The study determined that the Company underwent an ownership change in 2006. Due to the Section 382 limitation determined on the date of the ownership change in 2006, NOL and R&D credits were reduced by $1,506 and $32 , respectively. The components of loss before provision (benefit) for income taxes for the years ended December 31, 2015, 2016, and 2017 were $(30,236) , $(22,526) , and $(15,002) , respectively. The reconciliation of the U.S. federal income tax at statutory rate with the Company’s effective income tax rate: December 31, 2015 2016 2017 U.S. federal income tax at statutory rate 34.00 % 34.00 % 34.00 % State taxes (net of federal benefit) 3.86 2.49 2.40 Permanent differences (2.94 ) (8.21 ) (15.03 ) Federal research and development credit 2.42 2.06 7.08 Change in valuation allowance (37.36 ) (30.19 ) (27.79 ) Nondeductible expenses and others 0.02 (0.15 ) (0.66 ) Change in valuation allowance for Tax Act impact — — 84.37 Change in deferred balance before valuation allowance for Tax Reform impact — — (84.37 ) Effective income tax rate — % — % — % Permanent differences consist primarily of stock compensation expense related to incentive stock options in the amounts of (4.90)% , (7.87)% , and (14.74)% for the years ended December 31, 2015, 2016, and 2017 , respectively. The Company did not record any tax benefits for the years ended December 31, 2015, 2016, and 2017 . The difference between the U.S. federal income tax at statutory rate of 34% and the Company’s effective tax rate in all periods is primarily due to a full valuation allowance related to the Company’s U.S. deferred tax assets and the change in corporate tax rate effective for tax years beginning after December 31, 2017. The Company accounts for uncertainty in income taxes in accordance with ASC 740. Tax positions are evaluated in a two-step process, whereby the Company first determines whether it is more likely than not that a tax position will be sustained upon examination by the tax authority, including resolutions of any related appeals or litigation processes, based on technical merit. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The following table summarized the activity related to unrecognized tax benefits: December 31, 2016 2017 Unrecognized benefit—beginning of year $ 684 $ 800 Gross increases (decreases)—prior year tax positions — (7 ) Gross increases (decreases)—current year tax positions 116 264 Unrecognized benefit—end of year $ 800 $ 1,057 All of the unrecognized tax benefits as of December 31, 2016 and 2017 are accounted for as a reduction in the Company’s deferred tax assets. Due to the Company’s valuation allowance, none of the $800 and $1,057 of unrecognized tax benefits would affect the Company’s effective tax rate, if recognized. The Company does not believe it is reasonably possible that its unrecognized tax benefits will significantly change in the next twelve months. The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense. There was no interest or penalties accrued related to unrecognized tax benefits for 2016 and 2017 and no liability for accrued interest or penalties related to unrecognized tax benefits as of December 31, 2017. The Company’s material income tax jurisdiction is the United States (federal). As a result of NOL carryforwards, the Company is subject to audit for all tax years for federal purposes. All tax years remain subject to examination in various other jurisdictions that are not material to the Company’s financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies: Legal Proceedings —Third-party licensed sales associates filed three lawsuits against the Company in 2013 and 2014. Two of the actions, which are pled as “class actions,” were removed to and are now pending in the Northern District of California. One of these cases also includes representative claims under California’s Private Attorney General Act, Labor Code section 2698 et. seq (“PAGA”). The third action is pending in the Los Angeles County Superior Court and asserts representative claims under PAGA. All three complaints alleged that the Company had misclassified current and former third-party licensed sales associates in California as independent contractors and generally seek compensation for unpaid wages, overtime, and failure to provide meal and rest periods, as well as reimbursement of business expenses. In June 2017, the Company entered into a definitive agreement to settle the lawsuits. The Company has recorded an accrual for $1,800 as of December 31, 2016 and 2017. The settlement agreement does not contain any admission of liability, wrongdoing, or responsibility by any of the parties. The proposed settlement class contemplated by the agreement includes all current and former third party licensed sales associates engaged by the Company in California from January 16, 2009, through April 29, 2017. The settlement agreement has received preliminary court approval, but remains subject to final court approval. As with all class action and representative litigation, these cases are inherently complex and subject to many uncertainties. In the event the settlement is not approved, the actions may continue and a class may be certified. If that happens, there can be no assurance the plaintiffs will not seek substantial damage awards, penalties, attorneys’ fees, or other remedies. The Company believes it has complied with all applicable laws and regulations and that it properly classified the third-party licensed sales associates as independent contractors. In addition, from time to time, the Company is involved in litigation, claims and other proceedings arising in the ordinary course of business. Such litigation and other proceedings may include, but are not limited to, actions relating to employment law and misclassification, intellectual property, commercial or contractual claims, brokerage or real estate disputes, claims related to the Real Estate Settlement Procedures Act of 1974, the Fair Housing Act of 1968, or other consumer protection statutes, ordinary-course brokerage disputes like the failure to disclose property defects, commission disputes, and vicarious liability based upon conduct of individuals or entities outside of our control, including partner agents and third-party contractor agents. Litigation and other disputes are inherently unpredictable and subject to substantial uncertainties and unfavorable resolutions could occur. Often these cases raise complex factual and legal issues, which are subject to risks and uncertainties and could require significant management time and resources. Facility Leases and Other Commitments —The Company leases its office space under noncancelable operating leases with terms ranging from one to eleven years. The leases require a fixed minimum rent with contractual minimum rent increases over the lease term, and certain leases include escalation provisions. Rent expense totaled $4,147 , $5,811 , and $7,833 for the years ended December 31, 2015, 2016, and 2017, respectively. Other commitments primarily relate to network infrastructure for the Company’s data operations and commitments for the Company’s annual corporate meeting. Also included are homes that the Company is under contract to purchase through Redfin Now but that have not closed. Future minimum payments due under these agreements as of December 31, 2016 and December 31, 2017 are as follows: December 31, 2017 Facility Leases Other Commitments 2018 $ 7,595 $ 3,003 2019 8,100 2,028 2020 7,181 75 2021 6,790 — 2022 and thereafter 29,074 — Total $ 58,740 $ 5,106 Mortgage Warehouse Agreement — In December 2016, Redfin Mortgage entered into a Mortgage Warehouse Agreement with Texas Capital Bank, National Association (“Texas Capital”) and in June 2017 Redfin Mortgage entered into a Master Repurchase Agreement with Western Alliance Bank. Pursuant to the Mortgage Warehouse Agreement and Master Repurchase Agreement, Texas Capital and Western Alliance Bank both agree to fund loans originated by Redfin Mortgage, in its discretion, up to $10,000 each in the aggregate and to take a security interest in such loans. The per annum interest rate payable to Texas Capital is a fixed rate equal to the rate of interest accruing on the outstanding principal balance of the loan, minus 1.5% , or 3.0% , whichever is higher. The per annum interest rate payable to Western Alliance Bank is a fixed rate equal to the LIBOR rate plus 3.00% , or 3.75% , whichever is higher. For each loan in which Texas Capital elects to purchase a participation interest, it will acquire an undivided 97% participation interest, by paying as the purchase price an amount equal to the participation interest multiplied by the principal balance of the loan. For each loan in which Western Alliance Bank elects to purchase, it will acquire an undivided 98% participation interest, by paying as the purchase price an amount equal to the participation interest multiplied by the principal balance of the loan. If a loan is not sold to a correspondent lender, Texas Capital and Western Alliance Bank's participation interests in the loans are to be repurchased in whole or in part by Redfin Mortgage. The Company has guaranteed Redfin Mortgage’s obligations under the Mortgage Warehouse and Master Repurchase Agreements. The Mortgage Warehouse Agreement and Master Repurchase Agreements require each of the Company and Redfin Mortgage to maintain certain financial covenants and to provide periodic financial and compliance reports. Redfin Mortgage failed to satisfy certain financial covenants under both agreements as of December 31, 2017, but has not received a notice of default related to such failure from either Texas Capital or Western Alliance Bank. As of December 31, 2017 there was $833 outstanding under the Mortgage Warehouse Agreement and $1,184 outstanding as of December 31, 2017 on the Master Repurchase Agreement. The Mortgage Warehouse Agreement expires on March 21, 2018 and the Master Repurchase Agreement expires on June 15, 2018. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities: The following table presents the detail of accrued liabilities as of the dates presented: December 31, 2016 2017 Accrued compensation and benefits $ 16,659 $ 19,543 Legal fees and settlements 2,795 2,230 Miscellaneous accrued liabilities 2,799 4,832 Total accrued liabilities: $ 22,253 $ 26,605 |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Plan | Retirement Plan: The Company adopted a 401(k) profit sharing plan effective January 2005. The plan covers eligible employees as of their hire date. The 401(k) component of the plan allows employees to elect to defer from 1% to 100% of their eligible compensation up to the federal limit per year. Company-matching and profit-sharing contributions are discretionary and are determined annually by Company management and approved by the board of directors. No matching or profit-sharing contributions were declared for the years ended December 31, 2015, 2016, or 2017. |
Description of Business and S19
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation —The consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The Company had no components of other comprehensive income (loss) during any of the years presented, as such, a consolidated statement of comprehensive income (loss) is not presented. All amounts are presented in thousands, except share and per share data. |
Principles of Consolidation | Principles of Consolidation —The consolidated financial statements include the accounts of Redfin and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated. |
Initial Public Offering Costs | Initial Public Offering Costs —Costs, including legal, accounting and other fees and costs relating to the IPO are accounted for a reduction in additional paid-in capital. Costs incurred prior to the IPO were capitalized and included as a noncurrent asset in the consolidated balance sheets. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the respective periods. The Company’s more significant estimates include, but are not limited to, valuation of deferred income taxes, stock-based compensation, fair value of common stock and redeemable convertible preferred stock, capitalization of website development costs, recoverability of intangible assets with finite lives, and the fair value of reporting units for purposes of evaluating goodwill for impairment. The amounts ultimately realized from the affected assets or ultimately recognized as liabilities will depend on, among other factors, general business conditions and could differ materially in the near term from the carrying amounts reflected in the consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents —The Company considers all highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents consist primarily of money market instruments. |
Restricted Cash and Other Payables | Restricted Cash and Other Payables —Restricted cash primarily consists of cash held in escrow on behalf of real estate buyers using the Company’s title and settlement services. Since the Company does not have rights to the cash, a corresponding customer deposit liability in the same amount is recognized in the consolidated balance sheets in other payables. When a real estate transaction closes, the restricted cash transfers from escrow and the corresponding deposit liability is reduced. |
Short-term Investments | Short-Term Investments —The Company’s short-term investments consisted of certificates of deposit with maturities of 12 months or less from the balance sheet date. Short-term investments are reported at cost, which approximates fair value, as of each balance sheet date. |
Concentration of Credit Risk | Concentration of Credit Risk —Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalents. The Company generally places its cash and cash equivalents and short-term investments with high-credit-quality counterparties to make sure the financial institutions are stable when the Company’s deposits exceed Federal Deposit Insurance Corporation limits, and by policy, limit the amount of credit exposure to any one counterparty based on the Company’s analysis of the counterparty’s relative credit standing. The Company maintains its cash accounts with financial institutions where, at times, deposits exceed federal insurance limits. |
Other Assets and Other Current Assets | Other Assets and Other Current Assets —Other assets consists primarily of leased building security deposits. In May 2016, the Company signed a new lease for its corporate headquarters with a security deposit of $5,424 . At December 31, 2016 other current assets consisted primarily of a receivable, for $8,470 , due from the landlord related to the Company's corporate headquarters leasehold improvements. The Company collected the receivable in April 2017. Additionally, in January 2017, RDFN Ventures, Inc. (“Redfin Now”), a wholly owned subsidiary of the Company, began purchasing residential properties with the intent of resale. Direct property acquisition and improvement costs are capitalized and tracked directly with each specific property. Home inventories are stated at cost unless the utility of the properties is no longer as great as their cost, in which case it is written down to “market.” |
Loans Held for Sale | Loans Held for Sale —Redfin Mortgage, LLC (“Redfin Mortgage”), a wholly owned subsidiary of the Company, began originating residential mortgage loans in March 2017. Such mortgage loans are intended to be sold in the secondary mortgage market within a short period of time following origination. Mortgage loans held for sale consist of single-family residential loans collateralized by the underlying property. Mortgage loans held for sale are stated at the lower of cost or market value. |
Property and Equipment | Property and Equipment —Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful life of two to seven years. Depreciation and amortization is included in cost of revenue, technology and development, and general and administrative and is allocated based on estimated usage for each class of asset. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the consolidated statements of operations. Repair and maintenance costs are expensed as incurred. Costs incurred in the preliminary stages of website and software development are expensed as incurred. Once an application has reached the development stage, direct internal and external costs relating to upgrades or enhancements that meet the capitalization criteria are capitalized in property and equipment and amortized on a straight-line basis over their estimated useful lives. Maintenance and enhancement costs (including those costs in the post- implementation stages) are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the websites (or software) that result in added functionality, in which case the costs are capitalized as well. Capitalized software development activities placed in service are amortized over the expected useful lives of those releases. The Company views capitalized software costs as either internal use or expansion. Currently, internal use and expansion useful lives are estimated at one year and three years, respectively. Estimated useful lives of website and software development activities are reviewed annually or whenever events or changes in circumstances indicate that intangible assets may be impaired and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades or enhancements to the existing functionality. |
Intangible Assets | Intangible Assets —Intangible assets are finite lived and mainly consist of trade names, developed technology and customer relationships and are amortized over their estimated useful lives of ten years. The useful lives were determined by estimating future cash flows generated by the acquired intangible assets. Amortization expense is included in cost of revenue. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets —Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured first by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such asset were considered to be impaired, an impairment loss would be recognized when the carrying amount of the asset exceeds the fair value of the asset. |
Goodwill | Goodwill —Goodwill represents the excess of the purchase price over the fair value of the net tangible assets and identifiable intangible assets acquired in a business combination. Goodwill is not amortized, but is subject to impairment testing. The Company assesses the impairment of goodwill on an annual basis, on October 1, or whenever events or changes in circumstances indicate that goodwill may be impaired. The Company assesses goodwill for possible impairment by performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the Company qualitatively determines that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then no additional impairment steps are necessary. For the Company’s most recent impairment assessment performed as of October 1, 2017, the Company performed a qualitative assessment and determined that it was not more likely than not that the fair value of its reporting unit for which goodwill has been assigned was less than its carrying amount. In evaluating whether it was more likely than not that the fair value of its reporting unit was less than its carrying amount the Company considered macroeconomic conditions, industry and market considerations, cost factors, its overall financial performance, other relevant entity-specific events, potential events affecting its reporting unit, and changes in the fair value of the Company’s common stock. The primary qualitative factors the Company considered in its analysis as of October 1, 2017 were the Company’s overall financial performance and the fair value of the reporting unit for which goodwill was assigned, which was substantially in excess of its book value. The aggregate carrying value of goodwill was $9,186 at December 31, 2016 and 2017. Goodwill is assigned to the Company’s real estate services reporting unit, and there have been no accumulated impairments to goodwill. |
Leases | Leases —The Company categorizes leases at their inception as either operating or capital leases. On certain lease agreements, the Company may receive rent holidays and other incentives. The Company recognizes lease costs on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives the Company receives are treated as a reduction of rent expense over the term of the agreement and are presented in leasehold improvements and deferred rent on the balance sheet. |
Derivatives Instruments | Derivative Instruments —Redfin Mortgage is party to interest rate lock commitments (“IRLCs”) with customers resulting from mortgage origination operations. IRLCs for single family mortgage loans that Redfin Mortgage intends to sell are considered free-standing derivatives. All free-standing derivatives are required to be recorded on the Company’s consolidated balance sheets at fair value. Because Redfin Mortgage can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements. The Company does not use derivatives for trading purposes. Interest rate market risk, related to the residential mortgage loans held for sale and IRLCs, is offset using investor loan commitments. Changes in the fair value of IRLCs and forward sales commitments are recognized in revenue, and the fair values are reflected in other current assets and accrued liabilities, as applicable. The Company considers several factors in determining the fair value including the fair value in the underlying loan resulting from the exercise of the commitment and the probability that the loan will not fund according to the terms of the commitment (referred to as a pull-through factor). The value of the underlying loan is affected primarily by changes in interest rates. |
Income Taxes | Income Taxes —Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the consolidated financial statement and tax bases of assets and liabilities at the applicable enacted tax rates. The Company will establish a valuation allowance for deferred tax assets if it is more likely than not that these items will expire before either the Company is able to realize their benefit or that future deductibility is uncertain. The Company believes that it is currently more likely than not that its deferred tax assets will not be realized and as such, it has recorded a full valuation allowance for these assets. The Company evaluates the likelihood of the ability to realize deferred tax assets in future periods on a quarterly basis, and when appropriate evidence indicates it would release its valuation allowance accordingly. The determination to provide a valuation allowance is dependent upon the assessment of whether it is more likely than not that sufficient taxable income will be generated to utilize the deferred tax assets. Based on the weight of the available evidence, which includes the Company’s historical operating losses, lack of taxable income, and accumulated deficit, the Company provided a full valuation allowance against the U.S. tax assets resulting from the tax losses and credits carried forward. In addition, current tax laws impose substantial restrictions on the utilization of research and development credit and net operating loss (“NOL”) carryforwards in the event of an ownership change, as defined by Internal Revenue Code Sections 382 and 383. Such an event, having occurred in the past or in the future, may significantly limit the Company’s ability to utilize its NOLs and research and development tax credit carryforwards. In 2017, the Company completed a Section 382 study. The study determined that the Company underwent an ownership change in 2006. Due to the Section 382 limitation determined on the date of the ownership change in 2006, NOL and R&D credits were reduced by $1,506 and $32 , respectively. |
Revenue Recognition | Revenue Recognition —Revenue primarily consists of commissions and fees charged on each real estate transaction completed by the Company or its partner agents. The Company’s key revenue components are brokerage revenue, partner revenue, and other revenue. The Company recognizes commission-based brokerage revenue upon closing of a real estate transaction, net of any commission refund or any closing-cost reduction. Partner revenue consists of fees earned by referring customers to partner agents. Partner revenue is earned and recognized when partner agents close a referred transaction, net of any refund provided to customers. Fees and revenue from other services are recognized when the service is provided. Revenue earned from selling homes previously purchased by Redfin Now is recorded at closing on a gross basis, representing the sales price of the home. Revenue earned but not received is recorded as accrued revenue on the accompanying consolidated balance sheets, net of an allowance for doubtful accounts. Commission revenue is known and is clearing escrow, and therefore it is not estimated. |
Allowance for Doubtful Accounts | The Company establishes an allowance for doubtful accounts after reviewing historical experience, age of accounts receivable balances and any other known conditions that may affect collectability. |
Cost of Revenue | Cost of Revenue —Cost of revenue consists of personnel costs (including base pay and benefits), stock-based compensation, transaction bonuses, home-touring and field expenses, listing expenses, office and occupancy expenses, depreciation and amortization related to fixed assets and acquired intangible assets, and, for Redfin Now, the cost of homes including the purchase price and capitalized improvements. |
Technology and Development | Technology and Development —Technology and development costs, which include research and development costs, are expensed as incurred and primarily include personnel costs (including base pay and benefits), stock-based compensation, data licenses, software and equipment, and infrastructure such as for data centers and hosted services. Technology and development expenses also include amortization of capitalized internal-use software and website and mobile application development costs. |
Advertising and Advertising Production Costs | Advertising and Advertising Production Costs —The Company expenses advertising costs as they are incurred and production costs as of the first date the advertisement takes place. |
Stock-based Compensation | Stock-based Compensation —The Company measures expense for options to purchase common stock and restricted stock units at fair value on the grant date and recognizes the expense over the requisite service period on a straight-line basis. The fair value of options to purchase common stock was calculated using the Black-Scholes-Merton option-pricing model. Through December 31, 2016, the Company recognized compensation expense for only the portion of options expected to vest using an estimated forfeiture rate that is derived from historical employee termination behavior. On January 1, 2017, the Company adopted Accounting Standards Update (“ASU”) 2016-09 and elected to recognize forfeitures as they occur rather than estimate forfeitures. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements —In November 2016, the Financial Accounting Standards Board ("FASB") issued guidance on the classification and presentation of changes in restricted cash on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017, and early adoption is permitted. The adoption of this guidance requires a retrospective transition method to each period presented. The Company early adopted this guidance on October 1, 2017. Upon adoption, the following balances were reclassified: restricted cash to the reconciliation of change in cash, cash equivalents and restricted cash, and other payables related to cash held in escrow on behalf of customers to financing activities. In the Company’s capacity as fiduciary, the cash receipt is a function of providing the customer with a service (title). Therefore, the escrow funds payable are akin to a repayment of debt, a financing activity, whereby the Company in its role as fiduciary is temporarily holding cash in its restricted accounts on behalf of its customers and subsequently releases the cash to settle the customers' contractual obligation. This reclassification will maintain an accurate reflection of the Company's cash flows from operating activities. The reconciliation of amounts previously reported to the revised amounts upon adoption are as follows: Previously reported Adjustments As revised Year Ended December 31, 2015 Operating activities $ (22,160 ) $ (61 ) $ (22,221 ) Financing activities 1,723 1,822 3,545 Net change in cash, cash equivalents, and restricted cash (1) $ (25,004 ) $ (1,761 ) $ (23,243 ) Year Ended December 31, 2016 Operating activities $ (9,345 ) $ (7 ) $ (9,352 ) Financing activities 1,345 399 1,744 Net change in cash, cash equivalents, and restricted cash (1) $ (21,567 ) $ (392 ) $ (21,175 ) (1) Previously titled: net change in cash and cash equivalents In January 2017, the FASB issued guidance simplifying the test for goodwill impairment. Step 2 from the goodwill impairment test is no longer required, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit’s fair value. This guidance is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019, and early adoption is permitted. This guidance must be applied on a prospective basis. The Company adopted this guidance for interim and annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company performs its goodwill assessment annually on October 1 of each year or as events merit, with the last test performed on October 1, 2017. The adoption of this guidance did not have any impact on the Company's financial position, results of operations or cash flows. In March 2016, the FASB issued guidance on several aspects of the accounting for share-based payment transactions, including the income tax consequences, impact of forfeitures, classification of awards as either equity or liabilities and classification on the statement of cash flows. This guidance is effective for interim and annual reporting periods beginning after December 15, 2016, and early adoption is permitted. The Company adopted this guidance on January 1, 2017 using the modified retrospective approach through a cumulative-effect adjustment of $522 to beginning accumulated deficit, and the Company elected to account for forfeitures as they occur beginning on January 1, 2017. The adoption of this guidance did not have a material impact on the Company’s financial position, results of operations or cash flows. Recently Issued Accounting Pronouncements —In August 2016, the FASB issued guidance on the classification of certain cash receipts and cash payments in the statement of cash flows. This new standard will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for fiscal years beginning after December 15, 2017, which means that it will be effective for the Company in its fiscal year beginning January 1, 2018. The new standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case the Company would be required to apply the amendments prospectively as of the earliest date practicable. The adoption of this standard is not expected to have a material impact on the Company’s statement of cash flows. In February 2016, the FASB issued a new standard to account for leases. This standard requires the recognition of a right-of-use asset and lease liability on the balance sheet for all leases. This standard also requires more detailed disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018, and should be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and early adoption is permitted. The Company expects to adopt this guidance on January 1, 2019. Although the Company is in the process of evaluating the impact of adoption of the ASU on its consolidated financial statements, the Company currently believes the most significant changes will be related to the recognition of new right-of-use assets and lease liabilities on the Company's balance sheet for real estate operating leases. In May 2014, the FASB issued a new standard to account for revenue. This guidance provides that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company will adopt this guidance on January 1, 2018, using the modified retrospective adoption methodology. Both real estate and other revenue contain single performance obligations and the Company believes the timing of the satisfaction of the performance obligations, triggering the recognition of revenue, will not differ from the Company's current timing for recognizing revenue. The assessment of the policy changes and quantitative and qualitative impacts is complete and as the amounts and timing of real estate and other revenue will not change, the Company will not recognize a cumulative adjustment to retained earnings upon adoption. |
Fair Value of Financial Instruments | The Company’s financial instruments consist of cash and cash equivalents, short-term investments, accrued revenue, restricted cash, accounts payable, certain accrued liabilities, interest rate lock commitments, forward sales commitments, and redeemable convertible preferred stock. The fair value of the Company’s financial instruments approximates their recorded values due to their short period to maturity. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value measurements defines a three-level valuation hierarchy for disclosures as follows: Level I —Unadjusted quoted prices in active markets for identical assets or liabilities. Level II —Inputs other than quoted prices included within Level I that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level III —Unobservable inputs that are supported by little or no market activity, requiring the Company to develop its own assumptions. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments consist of Level I and Level II assets and liabilities. Level I assets include highly liquid money market funds that are included in cash and cash equivalents and Level II assets include certificates of deposit that are included as short-term investments, IRLCs and forward sales commitments, included in other current assets and other current liabilities. The certificates of deposit are measured by observable market data for substantially the full term of the assets or liabilities. Interest rate lock commitments and forward sales commitments are measured by observable marketplace prices. The Company’s redeemable convertible preferred stock is categorized as Level III. Redeemable convertible preferred stock is valued at each reporting date based on unobservable inputs and management’s judgment due to the absence of quoted market prices, inherent lack of liquidity and the long-term nature of such financial instruments. The Company’s redeemable convertible preferred stock is measured at fair value using a weighted average of the probability weighted expected return method (“PWERM”), the income approach, and the market approach. Specifically, the income and market approach models are weighted in relation to the probability of a private company scenario, whereas the PWERM method is weighted in relation to the probability of future exit scenarios. The income approach incorporates the use of the discounted cash flow method, whereas the market approach incorporates the use of the guideline public company method. Application of the discounted cash flow method requires estimating the annual cash flows that the business enterprise is expected to generate in the future with the application of a discount rate and terminal value. In the guideline public company method, valuation multiples, including total invested capital, are calculated based on financial statements and stock price data from selected guideline publicly traded companies. A comparative analysis is then performed for factors including, but not limited to size, profitability and growth to determine fair value. Under the PWERM, value is determined based upon an analysis of future values for the enterprise under different potential outcomes (e.g., sale, merger, IPO, dissolution). The value determined for the enterprise is then allocated to each class of stock based upon the assumption that each class will look to maximize its value. The values determined for each class of stock under each scenario are weighted by the probability of each scenario and then discounted to a present value. Any change in the fair value is recognized as accretion expense (income) and included as an adjustment to net loss to arrive at net income (loss) attributable to common stock on the consolidated statements of operations. Summary of changes in fair value are reflected in the consolidated balance sheets, consolidated statements of changes in redeemable convertible preferred stock and stockholders’ deficit, and Note 6. The Company used the value of the common stock at the IPO price of $15.00 per share to determine the accretion amount through conversion of the redeemable convertible preferred stock to common stock. |
Description of Business and S20
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Prospective Adoption of New Accounting Pronouncements | This reclassification will maintain an accurate reflection of the Company's cash flows from operating activities. The reconciliation of amounts previously reported to the revised amounts upon adoption are as follows: Previously reported Adjustments As revised Year Ended December 31, 2015 Operating activities $ (22,160 ) $ (61 ) $ (22,221 ) Financing activities 1,723 1,822 3,545 Net change in cash, cash equivalents, and restricted cash (1) $ (25,004 ) $ (1,761 ) $ (23,243 ) Year Ended December 31, 2016 Operating activities $ (9,345 ) $ (7 ) $ (9,352 ) Financing activities 1,345 399 1,744 Net change in cash, cash equivalents, and restricted cash (1) $ (21,567 ) $ (392 ) $ (21,175 ) (1) Previously titled: net change in cash and cash equivalents |
Fair Value of Financial Instr21
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Unobservable Inputs | Significant unobservable inputs used in the determination of fair value of the Company’s redeemable convertible preferred stock for the years ended December 31, 2015 and 2016 included the following: Year Ended December 31, 2015 2016 Valuation Methodology: Income approach (private company) 12.5% 12.5%-15.0% Market approach (private company) 12.5% 12.5%-15.0% PWERM (IPO) 56.3% 52.5%-60.0% PWERM (M&A) 18.8% 15.0%-17.5% IPO revenue multiple 4.0x-5.0x 3.0x-4.5x Forecasted revenue growth rate 30.0%-50.3% 28.0%-41.80% Discount rate 20.0%-30.0% 20.0%-30.0% |
Schedule of Assets, Liabilities, and Equity Measured at Fair Value on a Recurring Basis | A summary of assets, (liabilities), and (mezzanine equity) at December 31, 2016 and 2017, related to our financial instruments, measured at fair value on a recurring basis, is set forth below: Financial Instrument Fair Value Hierarchy Fair Value December 31, 2016 2017 Money market funds (included in cash and cash equivalents) Level I 46,357 177,235 Certificates of deposit (included in short-term investments) Level II 1,749 — Interest rate lock commitments Level II — 29 Forward loan commitments Level II — (4 ) Redeemable convertible preferred stock (mezzanine equity) Level III (655,416 ) — |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | A summary of property and equipment at December 31, 2016 and 2017 is as follows: Useful Lives December 31, (years) 2016 2017 Leasehold improvements Shorter of lease term or economic life $ 4,911 $ 16,039 Website and software development costs 1-3 10,114 14,501 Computer and office equipment 3 2,846 2,192 Software 3 1,367 685 Furniture 7 2,406 3,039 Construction in progress 10,856 — 32,500 36,456 Accumulated depreciation and amortization (13,274 ) (14,138 ) Property and equipment, net $ 19,226 $ 22,318 |
Acquired Intangible Assets (Tab
Acquired Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | December 31, 2016 December 31, 2017 Useful Gross Accumulated Net Gross Accumulated Amortization Net Trade Names 10 $ 1,040 $ (234 ) $ 806 $ 1,040 $ (338 ) $ 702 Developed technology 10 2,980 (670 ) 2,310 2,980 (968 ) 2,012 Customer relationships 10 860 (194 ) 666 860 (280 ) 580 $ 4,880 $ (1,098 ) $ 3,782 $ 4,880 $ (1,586 ) $ 3,294 |
Operating Segments (Tables)
Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Information on each of the reportable and other segments and reconciliation to consolidated net income (loss) is as follows: Year End December 31, 2015 2016 2017 Real estate Revenue $ 181,446 $ 260,383 $ 351,570 Cost of revenue 131,522 176,408 237,832 Gross profit $ 49,924 $ 83,975 $ 113,738 Other Revenue 5,892 6,813 18,466 Cost of revenue 6,970 8,044 20,384 Gross profit $ (1,078 ) $ (1,231 ) $ (1,918 ) Consolidated Revenue 187,338 267,196 370,036 Cost of revenue 138,492 184,452 258,216 Gross profit $ 48,846 $ 82,744 $ 111,820 Operating expenses 79,135 105,528 127,792 Net income (loss) $ (30,236 ) $ (22,526 ) $ (15,002 ) |
Schedule of Real Estate Revenue | Real estate revenue consisted of the following: Year End December 31, 2015 2016 2017 Real estate revenue Brokerage revenue $ 171,276 $ 244,079 $ 330,372 Partner revenue 10,170 16,304 21,198 Total real estate revenue $ 181,446 $ 260,383 $ 351,570 |
Redeemable Convertible Prefer25
Redeemable Convertible Preferred Stock and Stockholders' Equity/(Deficit) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Temporary Equity And Stockholder's Equity [Abstract] | |
Temporary Equity | As of December 31, 2016, the Company had outstanding redeemable convertible preferred stock as follows: As of December 31, 2016 Shares Authorized Shares Issued and Outstanding Aggregate Liquidation Preference Proceeds, Net of Issuance Costs Series A-1 4,378,284 1,459,427 $ 500 $ 462 Series A-2 109,552 36,517 11 11 Series A-3 9,099,610 3,033,202 259 241 Series B 36,338,577 12,112,853 7,998 7,952 Series C 33,388,982 11,129,656 12,000 11,950 Series D 28,574,005 9,524,665 10,269 10,201 Series E 12,041,148 4,013,712 14,924 14,841 Series F 20,808,580 6,936,186 50,536 50,453 Series G 21,527,376 7,175,784 70,991 68,062 Total 166,266,114 55,422,002 $ 167,488 $ 164,173 The following table presents the accretion of the redeemable convertible preferred stock to its redemption value recorded within the consolidated statements of changes in redeemable convertible preferred stock and stockholders’ deficit during the periods presented: Year End December 31, 2015 2016 2017 Series A-1 $ (2,674 ) $ (1,618 ) $ (4,904 ) Series A-2 (67 ) (40 ) (123 ) Series A-3 (5,650 ) (3,360 ) (10,192 ) Series B (22,561 ) (13,416 ) (40,336 ) Series C (20,390 ) (12,333 ) (37,062 ) Series D (17,450 ) (10,555 ) (31,717 ) Series E (7,353 ) (4,086 ) (12,884 ) Series F (12,494 ) (6,025 ) (20,184 ) Series G (13,585 ) (4,069 ) (18,513 ) Total $ (102,224 ) $ (55,502 ) $ (175,915 ) |
Schedule of Reserved Shares of Common Stock | The Company has reserved shares of common stock, on an as-converted basis, for future issuance as follows: December 31, 2016 2017 Redeemable convertible preferred stock outstanding 55,422,002 — Stock options issued and outstanding 13,291,684 13,180,950 Restricted stock units outstanding — 981,276 Shares available for future equity grants 4,941,504 7,026,071 Total 73,655,190 21,188,297 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Value Assumptions | The range of assumptions for the years ended December 31, 2015, 2016, and 2017, are provided in the following table. Year End December 31, 2015 2016 2017 Expected life 7 years 7 years 7 years Volatility 42.51%-49.62% 38.15%-41.36% 37.88%-40.97% Risk-free interest rate 1.71%-2.01% 1.39%-2.32% 1.96%-2.26% Dividend yield —% —% —% Weighted-average grant date fair value $3.99 $4.11 $4.86 |
Schedule of Stock Option Activity | The following table presents information regarding options granted, exercised, forfeited, or cancelled for the periods presented: Weighted- Average Exercise Price Weighted Average Remaining Contractual Life (years) Outstanding at January 1, 2017 13,291,684 $ 5.85 7.74 $ 61,774 Options granted 1,137,046 10.78 Options exercised (744,215 ) 4.03 20,308 Options forfeited or canceled (503,565 ) 7.95 Outstanding at December 31, 2017 13,180,950 6.30 7.02 329,786 Options exercisable at December 31, 2017 8,754,523 4.94 6.25 230,914 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes activity for restricted stock units for the year ended December 31, 2017: Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested outstanding at January 1, 2017 — $ — Granted 981,929 22.78 Vested — — Forfeited or canceled (653 ) 22.78 Unvested outstanding at December 31, 2017 981,276 $ 22.78 |
Schedule of Allocation of Share-based Compensation Costs | The following table presents the detail of stock-based compensation amounts included in the Company’s consolidated statements of operations for the periods indicated below: Year End December 31, 2015 2016 2017 Cost of revenue $ 1,440 $ 2,266 $ 2,902 Technology and development 1,375 2,383 3,325 Marketing 298 469 487 General and administrative 2,449 3,295 4,387 Total stock-based compensation $ 5,562 $ 8,413 $ 11,101 |
Net Income (Loss) per Share A27
Net Income (Loss) per Share Attributable to Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of basic and diluted net income (loss) per share attributable to common stock during the periods presented: Year End December 31, 2015 2016 2017 Numerator: Net income (loss) $ (30,236 ) $ (22,526 ) $ (15,002 ) Accretion of preferred stock (102,224 ) (55,502 ) (175,915 ) Net income (loss) attributable to common stock—basic and diluted $ (132,460 ) $ (78,028 ) $ (190,917 ) Denominator: Weighted average shares used to compute net income (loss) per share attributable to common stock—basic and diluted 13,416,411 14,395,067 42,722,114 Net income (loss) per share attributable to common stock—basic and diluted $ (9.87 ) $ (5.42 ) $ (4.47 ) |
Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net income (loss) per share attributable to common stock for the periods presented because their effect would have been anti-dilutive. For the year ended December 31, 2017 shares of the redeemable convertible preferred stock were anti-dilutive, but converted to common stock on a one -for-one basis on August 2, 2017 upon the successful completion of the IPO, and as such were included in the weighted average shares outstanding for the period they were outstanding as shares of common stock. Year End December 31, 2015 2016 2017 Redeemable convertible preferred stock 55,422,002 55,422,002 — Options outstanding 10,406,277 13,291,684 13,180,950 Restricted stock units — — 981,276 Total 65,828,279 68,713,686 14,162,226 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The following table represents the significant components of the Company’s deferred tax assets and liabilities for the periods presented: December 31, 2016 2017 Deferred tax assets: Net operating loss carryforwards $ 31,618 $ 21,627 Credit carryforwards 3,200 4,230 Stock-based compensation 1,801 2,806 Accruals and reserves 4,588 3,953 Gross deferred tax assets 41,207 32,616 Valuation allowance (38,307 ) (29,818 ) Total deferred tax assets, net of valuation allowance 2,900 2,798 Deferred tax liabilities: Intangible assets (1,419 ) (847 ) Prepaid expenses (1,481 ) (1,951 ) Total deferred tax liabilities (2,900 ) (2,798 ) Net deferred tax assets and liabilities $ — $ — |
Summary of Operating Loss Carryforwards | The following table represents the Company’s NOL carryforwards as of December 31, 2016 and 2017: December 31, 2016 2017 Federal 84,973 87,071 Various states 4,133 4,231 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the U.S. federal income tax at statutory rate with the Company’s effective income tax rate: December 31, 2015 2016 2017 U.S. federal income tax at statutory rate 34.00 % 34.00 % 34.00 % State taxes (net of federal benefit) 3.86 2.49 2.40 Permanent differences (2.94 ) (8.21 ) (15.03 ) Federal research and development credit 2.42 2.06 7.08 Change in valuation allowance (37.36 ) (30.19 ) (27.79 ) Nondeductible expenses and others 0.02 (0.15 ) (0.66 ) Change in valuation allowance for Tax Act impact — — 84.37 Change in deferred balance before valuation allowance for Tax Reform impact — — (84.37 ) Effective income tax rate — % — % — % |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarized the activity related to unrecognized tax benefits: December 31, 2016 2017 Unrecognized benefit—beginning of year $ 684 $ 800 Gross increases (decreases)—prior year tax positions — (7 ) Gross increases (decreases)—current year tax positions 116 264 Unrecognized benefit—end of year $ 800 $ 1,057 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments | Future minimum payments due under these agreements as of December 31, 2016 and December 31, 2017 are as follows: December 31, 2017 Facility Leases Other Commitments 2018 $ 7,595 $ 3,003 2019 8,100 2,028 2020 7,181 75 2021 6,790 — 2022 and thereafter 29,074 — Total $ 58,740 $ 5,106 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | The following table presents the detail of accrued liabilities as of the dates presented: December 31, 2016 2017 Accrued compensation and benefits $ 16,659 $ 19,543 Legal fees and settlements 2,795 2,230 Miscellaneous accrued liabilities 2,799 4,832 Total accrued liabilities: $ 22,253 $ 26,605 |
Description of Business and S31
Description of Business and Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands | Aug. 02, 2017USD ($)$ / sharesshares | Jul. 10, 2017 | Apr. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | May 31, 2016USD ($) | Dec. 31, 2014USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Reverse split of shares, conversion ratio | 3 | |||||||
Common stock issued upon conversion (in shares) | shares | 55,422,002 | |||||||
Conversion basis | 1 | |||||||
Security deposit | $ 5,424 | |||||||
Proceeds from landlord reimbursements | $ 8,470 | |||||||
Home inventories | $ 3,382 | |||||||
Home inventories, held-for-sale | 2,335 | |||||||
Home inventories, in process | 1,047 | |||||||
Capitalized software development costs | $ 4,619 | $ 3,194 | $ 2,824 | |||||
Intangible assets, useful life | 10 years | |||||||
Goodwill | $ 9,186 | 9,186 | ||||||
NOL carryforward, decrease | 1,506 | |||||||
Allowance for doubtful accounts receivable | 160 | 150 | ||||||
Charges to allowance for doubtful accounts | 81 | 290 | ||||||
Write-offs | 71 | 140 | ||||||
Advertising costs | 21,902 | 17,570 | 8,394 | |||||
Advertising production costs | 1,609 | 1,640 | 1,661 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Stockholders' deficit | 235,430 | (563,734) | (495,713) | $ (370,595) | ||||
Deferred offering costs | 0 | 720 | ||||||
Initial public offering costs | 3,708 | |||||||
Loans held for sale | 1,891 | 0 | ||||||
Cumulative stock-based compensation adjustment | 0 | |||||||
Additional Paid-in Capital | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Stockholders' deficit | 364,352 | 0 | 0 | 0 | ||||
Initial public offering costs | 3,708 | |||||||
Cumulative stock-based compensation adjustment | 522 | |||||||
Accumulated Deficit | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Stockholders' deficit | (129,003) | (563,749) | $ (495,727) | $ (370,608) | ||||
Cumulative stock-based compensation adjustment | $ (522) | |||||||
Accounting Standards Update 2016-09 | Accumulated Deficit | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative stock-based compensation adjustment | 522 | |||||||
Minimum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Useful life | 2 years | |||||||
Maximum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Useful life | 7 years | |||||||
IPO | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Shares sold in offering (in shares) | shares | 10,615,650 | |||||||
Share price (in dollars per share) | $ / shares | $ 15 | |||||||
Net proceeds from stock offering | $ 144,380 | |||||||
Deferred offering costs | $ 720 | |||||||
IPO | Additional Paid-in Capital | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Initial public offering costs | $ 3,708 | |||||||
Over-Allotment Option | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Shares sold in offering (in shares) | shares | 1,384,650 | |||||||
Research Tax Credit Carryforward | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Research and development credits, decrease | $ 32 | |||||||
Software and Software Development Costs | Minimum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Useful life | 1 year | |||||||
Software and Software Development Costs | Maximum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Useful life | 3 years |
Description of Business and S32
Description of Business and Summary of Significant Accounting Policies - Adjustments For New Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash used in operating activities | $ 5,355 | $ (9,352) | $ (22,221) |
Net cash provided by (used in) financing activities | 149,822 | 1,744 | 3,545 |
Net cash, cash equivalents, restricted cash and restricted cash equivalents | $ 144,813 | (21,175) | (23,243) |
Scenario, Previously Reported | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash used in operating activities | (9,345) | (22,160) | |
Net cash provided by (used in) financing activities | 1,345 | 1,723 | |
Net cash, cash equivalents, restricted cash and restricted cash equivalents | (21,567) | (25,004) | |
Restatement Adjustment | Accounting Standards Update 2016-18 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net cash used in operating activities | (7) | (61) | |
Net cash provided by (used in) financing activities | 399 | 1,822 | |
Net cash, cash equivalents, restricted cash and restricted cash equivalents | $ (392) | $ (1,761) |
Fair Value of Financial Instr33
Fair Value of Financial Instruments - Narrative (Details) | Aug. 02, 2017$ / shares |
IPO | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Share price (in dollars per share) | $ 15 |
Fair Value of Financial Instr34
Fair Value of Financial Instruments - Schedule of Unobservable Inputs (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Approach Valuation Technique | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Probability of redemption, private company | 12.50% | |
Market Approach Valuation Technique | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Probability of redemption, private company | 12.50% | |
Probability Weighted Expected Return Method | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
PWERM (IPO) | 56.30% | |
PWERM (M&A) | 18.80% | |
Minimum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
IPO revenue multiple | 3 | 4 |
Forecasted revenue growth rate | 28.00% | 30.00% |
Discount rate | 20.00% | 20.00% |
Minimum | Income Approach Valuation Technique | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Probability of redemption, private company | 12.50% | |
Minimum | Market Approach Valuation Technique | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Probability of redemption, private company | 12.50% | |
Minimum | Probability Weighted Expected Return Method | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
PWERM (IPO) | 52.50% | |
PWERM (M&A) | 15.00% | |
Maximum | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
IPO revenue multiple | 4.5 | 5 |
Forecasted revenue growth rate | 41.80% | 50.30% |
Discount rate | 30.00% | 30.00% |
Maximum | Income Approach Valuation Technique | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Probability of redemption, private company | 15.00% | |
Maximum | Market Approach Valuation Technique | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
Probability of redemption, private company | 15.00% | |
Maximum | Probability Weighted Expected Return Method | ||
Fair Value Inputs, Equity, Quantitative Information [Line Items] | ||
PWERM (IPO) | 60.00% | |
PWERM (M&A) | 17.50% |
Fair Value of Financial Instr35
Fair Value of Financial Instruments - Schedule of Assets, Liabilities, and Equity Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds (included in cash and cash equivalents) | $ 177,235 | $ 46,357 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certificates of deposit (included in short-term investments) | 0 | 1,749 |
Interest rate lock commitments | 29 | 0 |
Forward loan commitments | (4) | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Redeemable convertible preferred stock (mezzanine equity) | $ 0 | $ (655,416) |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 36,456 | $ 32,500 |
Accumulated depreciation and amortization | (14,138) | (13,274) |
Property and equipment, net | $ 22,318 | 19,226 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 2 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 7 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 16,039 | 4,911 |
Website and software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 14,501 | 10,114 |
Website and software development costs | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 1 year | |
Website and software development costs | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Property and equipment, gross | $ 2,192 | 2,846 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Property and equipment, gross | $ 685 | 1,367 |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 7 years | |
Property and equipment, gross | $ 3,039 | 2,406 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 0 | $ 10,856 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and Amortization | $ 6,688 | $ 5,805 | $ 3,907 |
Acquired Intangible Assets - Sc
Acquired Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Useful Live (years) | 10 years | ||
Gross | $ 4,880 | $ 4,880 | $ 4,880 |
Accumulated Amortization | (1,586) | (1,098) | |
Net | $ 3,294 | 3,782 | |
Trade Names | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Live (years) | 10 years | ||
Gross | $ 1,040 | 1,040 | |
Accumulated Amortization | (338) | (234) | |
Net | $ 702 | 806 | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Live (years) | 10 years | ||
Gross | $ 2,980 | 2,980 | |
Accumulated Amortization | (968) | (670) | |
Net | $ 2,012 | 2,310 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Live (years) | 10 years | ||
Gross | $ 860 | 860 | |
Accumulated Amortization | (280) | (194) | |
Net | $ 580 | $ 666 |
Acquired Intangible Assets - Na
Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Intangible assets | $ 4,880 | $ 4,880 | $ 4,880 | |
Amortization | 488 | $ 488 | $ 488 | |
2,018 | 488 | |||
2,019 | 488 | |||
2,020 | 488 | |||
2,021 | 488 | |||
2,022 | 488 | |||
Total | $ 2,440 |
Operating Segments - Narrative
Operating Segments - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 5 |
Number of reportable segments | 1 |
Operating Segments - Reconcilia
Operating Segments - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenue | $ 370,036 | $ 267,196 | $ 187,338 |
Cost of revenue | 258,216 | 184,452 | 138,492 |
Gross profit | 111,820 | 82,744 | 48,846 |
Operating expenses | 127,792 | 105,528 | 79,135 |
Net income (loss) | (15,002) | (22,526) | (30,236) |
Real Estate | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenue | 351,570 | 260,383 | 181,446 |
Cost of revenue | 237,832 | 176,408 | 131,522 |
Gross profit | 113,738 | 83,975 | 49,924 |
Other Segments | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenue | 18,466 | 6,813 | 5,892 |
Cost of revenue | 20,384 | 8,044 | 6,970 |
Gross profit | $ (1,918) | $ (1,231) | $ (1,078) |
Operating Segments - Schedule o
Operating Segments - Schedule of Real Estate Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Total real estate revenue | $ 370,036 | $ 267,196 | $ 187,338 |
Real Estate | |||
Segment Reporting Information [Line Items] | |||
Total real estate revenue | 351,570 | 260,383 | 181,446 |
Brokerage Revenue | Real Estate | |||
Segment Reporting Information [Line Items] | |||
Total real estate revenue | 330,372 | 244,079 | 171,276 |
Partner Revenue | Real Estate | |||
Segment Reporting Information [Line Items] | |||
Total real estate revenue | $ 21,198 | $ 16,304 | $ 10,170 |
Redeemable Convertible Prefer43
Redeemable Convertible Preferred Stock and Stockholders' Equity/(Deficit) - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2017$ / sharesshares | Aug. 02, 2017 | Dec. 31, 2015shares | Dec. 31, 2014shares | |
Temporary Equity And Stockholder's Equity [Abstract] | |||||
Conversion basis | 1 | ||||
Redeemable convertible preferred stock, authorized (in shares) | 166,266,114 | 0 | |||
Redeemable convertible preferred stock, issued (in shares) | 55,422,002 | 0 | |||
Redeemable convertible preferred stock outstanding (in shares) | 55,422,002 | 0 | 55,422,002 | 55,422,002 | |
Temporary Equity [Line Items] | |||||
Underwritten public offering proceeds trigger | $ | $ 50,000 | ||||
Percentage of outstanding shareholders to request redemption | 0.67 | ||||
Common stock, authorized (in shares) | 290,081,638 | 500,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||
Preferred stock, authorized (in shares) | 0 | 10,000,000 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||
Preferred stock, outstanding (in shares) | 0 | 0 | |||
Series A-1 | |||||
Temporary Equity And Stockholder's Equity [Abstract] | |||||
Redeemable convertible preferred stock, authorized (in shares) | 4,378,284 | ||||
Redeemable convertible preferred stock, issued (in shares) | 1,459,427 | ||||
Redeemable convertible preferred stock outstanding (in shares) | 1,459,427 | ||||
Temporary Equity [Line Items] | |||||
Original issue price | $ / shares | $ 0.3426 | ||||
Temporary equity, dividend rate (in dollars per share) | $ / shares | $ 0.0273 | ||||
Series A-2 | |||||
Temporary Equity And Stockholder's Equity [Abstract] | |||||
Redeemable convertible preferred stock, authorized (in shares) | 109,552 | ||||
Redeemable convertible preferred stock, issued (in shares) | 36,517 | ||||
Redeemable convertible preferred stock outstanding (in shares) | 36,517 | ||||
Temporary Equity [Line Items] | |||||
Original issue price | $ / shares | $ 0.2913 | ||||
Temporary equity, dividend rate (in dollars per share) | $ / shares | $ 0.0234 | ||||
Series A-3 | |||||
Temporary Equity And Stockholder's Equity [Abstract] | |||||
Redeemable convertible preferred stock, authorized (in shares) | 9,099,610 | ||||
Redeemable convertible preferred stock, issued (in shares) | 3,033,202 | ||||
Redeemable convertible preferred stock outstanding (in shares) | 3,033,202 | ||||
Temporary Equity [Line Items] | |||||
Original issue price | $ / shares | $ 0.0855 | ||||
Temporary equity, dividend rate (in dollars per share) | $ / shares | $ 0.0069 | ||||
Series B | |||||
Temporary Equity And Stockholder's Equity [Abstract] | |||||
Redeemable convertible preferred stock, authorized (in shares) | 36,338,577 | ||||
Redeemable convertible preferred stock, issued (in shares) | 12,112,853 | ||||
Redeemable convertible preferred stock outstanding (in shares) | 12,112,853 | ||||
Temporary Equity [Line Items] | |||||
Original issue price | $ / shares | $ 0.6603 | ||||
Temporary equity, dividend rate (in dollars per share) | $ / shares | $ 0.0528 | ||||
Series C | |||||
Temporary Equity And Stockholder's Equity [Abstract] | |||||
Redeemable convertible preferred stock, authorized (in shares) | 33,388,982 | ||||
Redeemable convertible preferred stock, issued (in shares) | 11,129,656 | ||||
Redeemable convertible preferred stock outstanding (in shares) | 11,129,656 | ||||
Temporary Equity [Line Items] | |||||
Original issue price | $ / shares | $ 1.0782 | ||||
Temporary equity, dividend rate (in dollars per share) | $ / shares | $ 0.0864 | ||||
Series D | |||||
Temporary Equity And Stockholder's Equity [Abstract] | |||||
Redeemable convertible preferred stock, authorized (in shares) | 28,574,005 | ||||
Redeemable convertible preferred stock, issued (in shares) | 9,524,665 | ||||
Redeemable convertible preferred stock outstanding (in shares) | 9,524,665 | ||||
Temporary Equity [Line Items] | |||||
Original issue price | $ / shares | $ 1.0782 | ||||
Temporary equity, dividend rate (in dollars per share) | $ / shares | $ 0.0864 | ||||
Series E | |||||
Temporary Equity And Stockholder's Equity [Abstract] | |||||
Redeemable convertible preferred stock, authorized (in shares) | 12,041,148 | ||||
Redeemable convertible preferred stock, issued (in shares) | 4,013,712 | ||||
Redeemable convertible preferred stock outstanding (in shares) | 4,013,712 | ||||
Temporary Equity [Line Items] | |||||
Original issue price | $ / shares | $ 3.7182 | ||||
Temporary equity, dividend rate (in dollars per share) | $ / shares | $ 0.2976 | ||||
Series F | |||||
Temporary Equity And Stockholder's Equity [Abstract] | |||||
Redeemable convertible preferred stock, authorized (in shares) | 20,808,580 | ||||
Redeemable convertible preferred stock, issued (in shares) | 6,936,186 | ||||
Redeemable convertible preferred stock outstanding (in shares) | 6,936,186 | ||||
Temporary Equity [Line Items] | |||||
Original issue price | $ / shares | $ 7.2858 | ||||
Temporary equity, dividend rate (in dollars per share) | $ / shares | $ 0.5829 | ||||
Series G | |||||
Temporary Equity And Stockholder's Equity [Abstract] | |||||
Redeemable convertible preferred stock, authorized (in shares) | 21,527,376 | ||||
Redeemable convertible preferred stock, issued (in shares) | 7,175,784 | ||||
Redeemable convertible preferred stock outstanding (in shares) | 7,175,784 | ||||
Temporary Equity [Line Items] | |||||
Original issue price | $ / shares | $ 9.8931 | ||||
Temporary equity, dividend rate (in dollars per share) | $ / shares | $ 0.7914 |
Redeemable Convertible Prefer44
Redeemable Convertible Preferred Stock and Stockholders' Equity/(Deficit) - Summary of Redeemable Convertible Preferred Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2014 | |
Temporary Equity [Line Items] | ||||
Redeemable convertible preferred stock, authorized (in shares) | 166,266,114 | 0 | ||
Redeemable convertible preferred stock, issued (in shares) | 55,422,002 | 0 | ||
Redeemable convertible preferred stock outstanding (in shares) | 55,422,002 | 0 | 55,422,002 | 55,422,002 |
Aggregate Liquidation Preference | $ 167,488 | $ 0 | ||
Proceeds, Net of Issuance Costs | $ 164,173 | |||
Series A-1 | ||||
Temporary Equity [Line Items] | ||||
Redeemable convertible preferred stock, authorized (in shares) | 4,378,284 | |||
Redeemable convertible preferred stock, issued (in shares) | 1,459,427 | |||
Redeemable convertible preferred stock outstanding (in shares) | 1,459,427 | |||
Aggregate Liquidation Preference | $ 500 | |||
Proceeds, Net of Issuance Costs | $ 462 | |||
Series A-2 | ||||
Temporary Equity [Line Items] | ||||
Redeemable convertible preferred stock, authorized (in shares) | 109,552 | |||
Redeemable convertible preferred stock, issued (in shares) | 36,517 | |||
Redeemable convertible preferred stock outstanding (in shares) | 36,517 | |||
Aggregate Liquidation Preference | $ 11 | |||
Proceeds, Net of Issuance Costs | $ 11 | |||
Series A-3 | ||||
Temporary Equity [Line Items] | ||||
Redeemable convertible preferred stock, authorized (in shares) | 9,099,610 | |||
Redeemable convertible preferred stock, issued (in shares) | 3,033,202 | |||
Redeemable convertible preferred stock outstanding (in shares) | 3,033,202 | |||
Aggregate Liquidation Preference | $ 259 | |||
Proceeds, Net of Issuance Costs | $ 241 | |||
Series B | ||||
Temporary Equity [Line Items] | ||||
Redeemable convertible preferred stock, authorized (in shares) | 36,338,577 | |||
Redeemable convertible preferred stock, issued (in shares) | 12,112,853 | |||
Redeemable convertible preferred stock outstanding (in shares) | 12,112,853 | |||
Aggregate Liquidation Preference | $ 7,998 | |||
Proceeds, Net of Issuance Costs | $ 7,952 | |||
Series C | ||||
Temporary Equity [Line Items] | ||||
Redeemable convertible preferred stock, authorized (in shares) | 33,388,982 | |||
Redeemable convertible preferred stock, issued (in shares) | 11,129,656 | |||
Redeemable convertible preferred stock outstanding (in shares) | 11,129,656 | |||
Aggregate Liquidation Preference | $ 12,000 | |||
Proceeds, Net of Issuance Costs | $ 11,950 | |||
Series D | ||||
Temporary Equity [Line Items] | ||||
Redeemable convertible preferred stock, authorized (in shares) | 28,574,005 | |||
Redeemable convertible preferred stock, issued (in shares) | 9,524,665 | |||
Redeemable convertible preferred stock outstanding (in shares) | 9,524,665 | |||
Aggregate Liquidation Preference | $ 10,269 | |||
Proceeds, Net of Issuance Costs | $ 10,201 | |||
Series E | ||||
Temporary Equity [Line Items] | ||||
Redeemable convertible preferred stock, authorized (in shares) | 12,041,148 | |||
Redeemable convertible preferred stock, issued (in shares) | 4,013,712 | |||
Redeemable convertible preferred stock outstanding (in shares) | 4,013,712 | |||
Aggregate Liquidation Preference | $ 14,924 | |||
Proceeds, Net of Issuance Costs | $ 14,841 | |||
Series F | ||||
Temporary Equity [Line Items] | ||||
Redeemable convertible preferred stock, authorized (in shares) | 20,808,580 | |||
Redeemable convertible preferred stock, issued (in shares) | 6,936,186 | |||
Redeemable convertible preferred stock outstanding (in shares) | 6,936,186 | |||
Aggregate Liquidation Preference | $ 50,536 | |||
Proceeds, Net of Issuance Costs | $ 50,453 | |||
Series G | ||||
Temporary Equity [Line Items] | ||||
Redeemable convertible preferred stock, authorized (in shares) | 21,527,376 | |||
Redeemable convertible preferred stock, issued (in shares) | 7,175,784 | |||
Redeemable convertible preferred stock outstanding (in shares) | 7,175,784 | |||
Aggregate Liquidation Preference | $ 70,991 | |||
Proceeds, Net of Issuance Costs | $ 68,062 |
Redeemable Convertible Prefer45
Redeemable Convertible Preferred Stock and Stockholders' Equity/(Deficit) - Accretion of Redeemable Convertible Preferred Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Temporary Equity [Line Items] | |||
Accretion of redeemable convertible preferred stock | $ (175,915) | $ (55,502) | $ (102,224) |
Series A-1 | |||
Temporary Equity [Line Items] | |||
Accretion of redeemable convertible preferred stock | (4,904) | (1,618) | (2,674) |
Series A-2 | |||
Temporary Equity [Line Items] | |||
Accretion of redeemable convertible preferred stock | (123) | (40) | (67) |
Series A-3 | |||
Temporary Equity [Line Items] | |||
Accretion of redeemable convertible preferred stock | (10,192) | (3,360) | (5,650) |
Series B | |||
Temporary Equity [Line Items] | |||
Accretion of redeemable convertible preferred stock | (40,336) | (13,416) | (22,561) |
Series C | |||
Temporary Equity [Line Items] | |||
Accretion of redeemable convertible preferred stock | (37,062) | (12,333) | (20,390) |
Series D | |||
Temporary Equity [Line Items] | |||
Accretion of redeemable convertible preferred stock | (31,717) | (10,555) | (17,450) |
Series E | |||
Temporary Equity [Line Items] | |||
Accretion of redeemable convertible preferred stock | (12,884) | (4,086) | (7,353) |
Series F | |||
Temporary Equity [Line Items] | |||
Accretion of redeemable convertible preferred stock | (20,184) | (6,025) | (12,494) |
Series G | |||
Temporary Equity [Line Items] | |||
Accretion of redeemable convertible preferred stock | $ (18,513) | $ (4,069) | $ (13,585) |
Redeemable Convertible Prefer46
Redeemable Convertible Preferred Stock and Stockholders' Equity/(Deficit) - Summary of Common Stock Reserved for Future Issuance (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Temporary Equity And Stockholder's Equity [Abstract] | ||||
Redeemable convertible preferred stock outstanding (in shares) | 0 | 55,422,002 | 55,422,002 | 55,422,002 |
Stock options issued and outstanding (in shares) | 13,180,950 | 13,291,684 | ||
Restricted stock units outstanding (in shares) | 981,276 | 0 | ||
Shares available for future equity grants (in shares) | 7,026,071 | 4,941,504 | ||
Total common stock reserved (in shares) | 21,188,297 | 73,655,190 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 27, 2017 | Aug. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved (in shares) | 21,188,297 | 73,655,190 | |||
Total grant date fair value, options vested | $ 10,571 | $ 9,817 | $ 4,917 | ||
Total grant date fair value, options exercised | 3,002 | 911 | 1,373 | ||
Unrecognized stock-based compensation, options | 18,187 | ||||
Total fair value of options vested | 274,192 | 71,592 | |||
Stock-based compensation expense | $ 772 | 11,101 | 8,413 | 5,562 | |
Tender offer, premium price per share (in dollars per share) | $ 2.16 | ||||
Tender offer, shares exchanged (in shares) | 1,593,409 | ||||
In-substance dividend issued in tender offer | $ 2,659 | 0 | |||
Stock-based compensation capitalized | $ 268 | $ 100 | $ 49 | ||
2017 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved (in shares) | 7,859,659 | ||||
Percentage of common stock, outstanding | 5.00% | ||||
Expected life | 10 years | ||||
Award vesting period | 4 years | ||||
Employee Stock | 2017 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved (in shares) | 1,600,000 | ||||
Percentage of common stock, outstanding | 1.00% | ||||
Purchase price of common stock, percentage of market price of common stock | 85.00% | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense, period for recognition | 2 years 3 months 18 days | ||||
Employee Stock Option | 2004 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved (in shares) | 0 | ||||
Expected life | 10 years | ||||
Award vesting period | 4 years | ||||
Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense, period for recognition | 3 years 9 months | ||||
Unrecognized stock-based compensation, other than options | $ 21,856 | ||||
Employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Tender offer, shares exchanged (in shares) | 358,330 | ||||
Non-Employee | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Tender offer, shares exchanged (in shares) | 1,235,079 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Value Assumptions (Details) - Employee Stock Option - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 7 years | 7 years | 7 years |
Dividend yield | 0.00% | 0.00% | 0.00% |
Weighted-average grant date fair value | $ 4.86 | $ 4.11 | $ 3.99 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 37.88% | 38.15% | 42.51% |
Risk-free interest rate | 1.96% | 1.39% | 1.71% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 40.97% | 41.36% | 49.62% |
Risk-free interest rate | 2.26% | 2.32% | 2.01% |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Number Of Options | ||
Beginning balance (in shares) | 13,291,684 | |
Options granted (in shares) | 1,137,046 | |
Options exercised (in shares) | (744,215) | |
Options forfeited or canceled (in shares) | (503,565) | |
Ending balance (in shares) | 13,180,950 | 13,291,684 |
Options exercisable at December 31, 2017 (in shares) | 8,754,523 | |
Weighted- Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 5.85 | |
Options granted (in dollars per share) | 10.78 | |
Options exercised (in dollars per share) | 4.03 | |
Options forfeited or canceled (in dollars per share) | 7.95 | |
Ending balance (in dollars per share) | 6.30 | $ 5.85 |
Options exercisable at December 31, 2017 (in dollars per share) | $ 4.94 | |
Stock Option Activity, Additional Disclosures | ||
Weighted average remaining contractual life outstanding | 7 years 7 days | 7 years 8 months 27 days |
Weighted average remaining contractual life exercisable | 6 years 3 months | |
Options outstanding, Aggregate intrinsic value | $ 329,786 | $ 61,774 |
Options exercised, Aggregate intrinsic value | 20,308 | |
Options exercisable, Aggregate intrinsic value | $ 230,914 |
Stock-based Compensation - Su50
Stock-based Compensation - Summary of Restricted Stock Unit Activity (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested outstanding at January 1, 2017 (in shares) | 0 |
Unvested outstanding at December 31, 2017 (in shares) | 981,276 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested outstanding at January 1, 2017 (in shares) | 0 |
Granted (in shares) | 981,929 |
Vested (in shares) | 0 |
Forfeited or canceled (in shares) | (653) |
Unvested outstanding at December 31, 2017 (in shares) | 981,276 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested outstanding at January 1, 2017 (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 22.78 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited or canceled (in dollars per share) | $ / shares | 22.78 |
Unvested outstanding at December 31, 2017 (in dollars per share) | $ / shares | $ 22.78 |
Stock-based Compensation - Allo
Stock-based Compensation - Allocation of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 772 | $ 11,101 | $ 8,413 | $ 5,562 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 2,902 | 2,266 | 1,440 | |
Technology and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 3,325 | 2,383 | 1,375 | |
Marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 487 | 469 | 298 | |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 4,387 | $ 3,295 | $ 2,449 |
Net Income (Loss) per Share A52
Net Income (Loss) per Share Attributable to Common Stock - Computation of Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||
Net income (loss) | $ (15,002) | $ (22,526) | $ (30,236) |
Accretion of redeemable convertible preferred stock | (175,915) | (55,502) | (102,224) |
Net income (loss) attributable to common stock—basic | (190,917) | (78,028) | (132,460) |
Net income (loss) attributable to common stock—diluted | $ (190,917) | $ (78,028) | $ (132,460) |
Denominator: | |||
Weighted average shares used to compute net income (loss) per share attributable to common stock—basic and diluted (in shares) | 42,722,114 | 14,395,067 | 13,416,411 |
Net income (loss) per share attributable to common stock—basic and diluted (in dollars per share) | $ (4.47) | $ (5.42) | $ (9.87) |
Net Income (Loss) per Share A53
Net Income (Loss) per Share Attributable to Common Stock - Narrative (Details) | Aug. 02, 2017class |
Earnings Per Share [Abstract] | |
Number of classes of stock | 1 |
Conversion basis | 1 |
Net Income (Loss) per Share A54
Net Income (Loss) per Share Attributable to Common Stock - Summary of Anti-dilutive Stock Equivalents (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share | 14,162,226 | 68,713,686 | 65,828,279 |
Temporary equity outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share | 0 | 55,422,002 | 55,422,002 |
Options outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share | 13,180,950 | 13,291,684 | 10,406,277 |
Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share | 981,276 | 0 | 0 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 21,627 | $ 31,618 |
Credit carryforwards | 4,230 | 3,200 |
Stock-based compensation | 2,806 | 1,801 |
Accruals and reserves | 3,953 | 4,588 |
Gross deferred tax assets | 32,616 | 41,207 |
Valuation allowance | (29,818) | (38,307) |
Total deferred tax assets, net of valuation allowance | 2,798 | 2,900 |
Deferred tax liabilities: | ||
Intangible assets | (847) | (1,419) |
Prepaid expenses | (1,951) | (1,481) |
Total deferred tax liabilities | (2,798) | (2,900) |
Net deferred tax assets and liabilities | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Decrease in deferred tax assets | $ 12,658,000 | ||
Net impact to income tax expense due to tax act | 0 | ||
Operating Loss Carryforwards [Line Items] | |||
Valuation allowance increase (decrease) | (8,489,000) | $ 6,800,000 | $ 11,296,000 |
NOL carryforward, decrease | 1,506,000 | ||
Net income (loss) | $ (15,002,000) | $ (22,526,000) | $ (30,236,000) |
Permanent differences | (14.74%) | (7.87%) | (4.90%) |
Unrecognized tax benefits that would impact effective tax rate | $ 1,057,000 | $ 800,000 | |
Research Tax Credit Carryforward | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward | 3,200,000 | $ 4,230,000 | |
Research and development credits, decrease | $ 32,000 |
Income Taxes - Summary of Opera
Income Taxes - Summary of Operating Loss Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | $ 87,071 | $ 84,973 |
Various states | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforward | $ 4,231 | $ 4,133 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax at statutory rate | 34.00% | 34.00% | 34.00% |
State taxes (net of federal benefit) | 2.40% | 2.49% | 3.86% |
Permanent differences | (15.03%) | (8.21%) | (2.94%) |
Federal research and development credit | 7.08% | 2.06% | 2.42% |
Change in valuation allowance | (27.79%) | (30.19%) | (37.36%) |
Nondeductible expenses and others | (0.66%) | (0.15%) | 0.02% |
Change in valuation allowance for Tax Act impact | 84.37% | 0.00% | 0.00% |
Change in deferred balance before valuation allowance for Tax Reform impact | (84.37%) | 0.00% | 0.00% |
Effective income tax rate | 0.00% | 0.00% | 0.00% |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Unrecognized benefit—beginning of year | $ 800 | $ 684 |
Gross increases (decreases)—prior year tax positions | (7) | 0 |
Gross increases (decreases)—current year tax positions | 264 | 116 |
Unrecognized benefit—end of year | $ 1,057 | $ 800 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014lawsuit | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Number of pending lawsuits | lawsuit | 3 | ||||
Number of class action claims pending | lawsuit | 2 | ||||
Number of representative claims pending | lawsuit | 1 | ||||
Rent expense | $ 7,833,000 | $ 5,811,000 | $ 4,147,000 | ||
Debt Instrument [Line Items] | |||||
Amount outstanding under Warehouse Agreement | 2,016,000 | 0 | |||
Borrowings from warehouse credit facilities | 10,746,000 | 0 | $ 0 | ||
Mortgage Warehouse Facility | |||||
Debt Instrument [Line Items] | |||||
Amount outstanding under Warehouse Agreement | 833,000 | ||||
Texas Capital Bank, Warehouse Agreement | Mortgage Warehouse Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 10,000 | ||||
Discount on variable interest rate | 1.50% | ||||
Stated interest rate | 3.00% | ||||
Lender participation interest | 97.00% | ||||
Western Alliance Bank | Mortgage Warehouse Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 10,000 | ||||
Stated interest rate | 3.75% | ||||
Lender participation interest | 98.00% | ||||
Borrowings from warehouse credit facilities | $ 1,184,000 | ||||
Western Alliance Bank | Mortgage Warehouse Facility | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 3.00% | ||||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Operating lease term | 1 year | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Operating lease term | 11 years | ||||
Third-party Licensed Sales Class Actions | |||||
Debt Instrument [Line Items] | |||||
Accrual for amount of settlement payment | $ 1,800,000 | $ 1,800,000 |
Commitments and Contingencies61
Commitments and Contingencies - Summary of Future Minimum Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Facility Leases | |
2,018 | $ 7,595 |
2,019 | 8,100 |
2,020 | 7,181 |
2,021 | 6,790 |
2022 and thereafter | 29,074 |
Total minimum lease payments | 58,740 |
Other Commitments | |
2,018 | 3,003 |
2,019 | 2,028 |
2,020 | 75 |
2,021 | 0 |
2022 and thereafter | 0 |
Total minimum lease payments | $ 5,106 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 19,543 | $ 16,659 |
Legal fees and settlements | 2,230 | 2,795 |
Miscellaneous accrued liabilities | 4,832 | 2,799 |
Total accrued liabilities | $ 26,605 | $ 22,253 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Minimum percentage of compensation allowed to be deferred | 1.00% | ||
Maximum percentage of compensation alllowed to be deferred | 100.00% | ||
Employer matching and profit-sharing contributions | $ 0 | $ 0 | $ 0 |