Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
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-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 82,934,325 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 190,773 | $ 208,342 |
Restricted cash | 11,124 | 4,316 |
Prepaid expenses | 4,761 | 8,613 |
Accrued revenue, net | 12,093 | 13,334 |
Other current assets | 7,427 | 3,710 |
Loans held for sale | 1,482 | 1,891 |
Total current assets | 227,660 | 240,206 |
Property and equipment, net | 22,879 | 22,318 |
Intangible assets, net | 3,172 | 3,294 |
Goodwill | 9,186 | 9,186 |
Other assets | 7,053 | 6,951 |
Total assets: | 269,950 | 281,955 |
Current liabilities: | ||
Accounts payable | 2,929 | 1,901 |
Accrued liabilities | 33,866 | 26,605 |
Other payables | 10,876 | 4,068 |
Loan facility | 1,357 | 2,016 |
Current portion of deferred rent | 1,332 | 1,267 |
Total current liabilities | 50,360 | 35,857 |
Deferred rent, net of current portion | 10,335 | 10,668 |
Total liabilities | 60,695 | 46,525 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 82,672,592 and 81,468,891 shares issued and outstanding, respectively | 83 | 81 |
Preferred stock—par value $0.001 per share; 10,000,000 shares authorized and no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 374,614 | 364,352 |
Accumulated deficit | (165,442) | (129,003) |
Total stockholders’ equity | 209,255 | 235,430 |
Total liabilities and stockholders’ equity: | $ 269,950 | $ 281,955 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 82,672,592 | 81,468,891 |
Common stock, outstanding (in shares) | 82,672,592 | 81,468,891 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 79,893 | $ 59,868 |
Cost of revenue | 74,197 | 53,492 |
Gross profit | 5,696 | 6,376 |
Operating expenses: | ||
Technology and development | 12,762 | 9,672 |
Marketing | 13,336 | 10,459 |
General and administrative | 16,772 | 14,367 |
Total operating expenses | 42,870 | 34,498 |
Loss from operations | (37,174) | (28,122) |
Interest income and other income, net: | ||
Interest income | 577 | 43 |
Other income, net | 158 | 13 |
Total interest income and other income, net | 735 | 56 |
Net loss | (36,439) | (28,066) |
Accretion of redeemable convertible preferred stock | 0 | (24,770) |
Net loss attributable to common stock—basic | (36,439) | (52,836) |
Net loss attributable to common stock—diluted | $ (36,439) | $ (52,836) |
Net loss per share attributable to common stock—basic and diluted (in dollars per share) | $ (0.44) | $ (3.58) |
Weighted average shares used to compute net loss per share attributable to common stock—basic and diluted (in shares) | 82,010,913 | 14,767,478 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Operating activities | |||
Net loss | $ (36,439) | $ (28,066) | $ (15,002) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 2,003 | 1,905 | |
Stock-based compensation | 4,196 | 2,681 | |
Change in assets and liabilities: | |||
Prepaid expenses | 3,852 | 1,086 | |
Accrued revenue | 1,241 | (1,650) | |
Other current assets | (3,661) | (1,582) | |
Other long-term assets | (103) | 384 | |
Accounts payable | 1,029 | (2,912) | |
Accrued liabilities | 7,248 | 5,839 | |
Deferred lease liability | (268) | 501 | |
Origination of loans held for sale | (9,477) | 0 | |
Proceeds from sale of loans originated as held for sale | 9,887 | 0 | |
Net cash used in operating activities | (20,492) | (21,814) | |
Investing activities | |||
Maturities and sales of short-term investments | 0 | 1,251 | |
Purchases of short-term investments | 0 | (1,252) | |
Purchases of property and equipment | (2,305) | (4,781) | |
Net cash used in investing activities | (2,305) | (4,782) | |
Financing activities | |||
Proceeds from exercise of stock options | 5,946 | 551 | |
Tax payment related to net share settlements on restricted stock units | (59) | 0 | |
Payment of initial public offering costs | 0 | (1,579) | |
Borrowings from warehouse credit facilities | 9,265 | 0 | |
Repayments of warehouse credit facilities | (9,924) | 0 | |
Other payables - customer escrow deposits related to title services | 6,808 | 4,651 | |
Net cash provided by financing activities | 12,036 | 3,623 | |
Net change in cash and cash equivalents, and restricted cash | (10,761) | (22,973) | |
Cash, cash equivalents, and restricted cash: | |||
Beginning of period | 212,658 | 67,845 | 67,845 |
End of period | 201,897 | 44,872 | $ 212,658 |
Supplemental Cash Flow Information [Abstract] | |||
Accretion of redeemable convertible preferred stock | 0 | (24,770) | |
Stock-based compensation capitalized in property and equipment | (124) | (74) | |
Initial public offering cost accruals | 0 | (190) | |
Property and equipment additions in accounts payable and accrued expenses | (55) | (37) | |
Leasehold improvements paid directly by lessor | 0 | (104) | |
Cash-in-transit for exercised stock options | $ (56) | $ 0 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Redeemable Convertible Preferred Stock and Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Increase (Decrease) in Stockholders' Equity | ||||
Cumulative stock-based compensation adjustment | $ 0 | $ 522 | $ (522) | |
Redeemable convertible preferred stock beginning balance (in shares) at Dec. 31, 2016 | 55,422,002 | |||
Redeemable convertible preferred stock beginning balance at Dec. 31, 2016 | $ 655,416 | |||
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 | |||
Common stock, outstanding, beginning balance (in shares) at Dec. 31, 2016 | 14,687,024 | |||
Total stockholders' deficit, beginning balance at Dec. 31, 2016 | (563,734) | $ 15 | 0 | (563,749) |
Increase (Decrease) in Stockholders' Equity | ||||
Proceeds from initial public offering, net of underwriters' discounts; issuance of common stock pursuant to restricted stock units (in shares) | 10,615,650 | |||
Proceeds from initial public offering, net of underwriters' discounts; issuance of common stock pursuant to restricted stock units | 148,088 | $ 10 | 148,078 | |
Initial public offering costs | (3,708) | (3,708) | ||
Exercise of stock options (in shares) | 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 loss | $ (15,002) | (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) |
Redeemable convertible preferred stock ending balance (in shares) at Mar. 31, 2018 | 0 | |||
Redeemable convertible preferred stock ending balance at Mar. 31, 2018 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Proceeds from initial public offering, net of underwriters' discounts; issuance of common stock pursuant to restricted stock units (in shares) | 7,532 | |||
Proceeds from initial public offering, net of underwriters' discounts; issuance of common stock pursuant to restricted stock units | $ 0 | $ 0 | ||
Exercise of stock options (in shares) | 1,198,732 | 1,198,732 | ||
Exercise of stock options | $ 6,002 | $ 2 | 6,000 | |
Restricted stock surrendered for employees' tax liability (in shares) | (2,563) | |||
Restricted stock surrendered for employees' tax liability | (58) | (58) | ||
Stock-based compensation | 4,320 | 4,320 | ||
Net loss | $ (36,439) | (36,439) | ||
Common stock, outstanding, ending balance (in shares) at Mar. 31, 2018 | 82,672,592 | 82,672,592 | ||
Total stockholders' deficit, ending balance at Mar. 31, 2018 | $ 209,255 | $ 83 | $ 374,614 | $ (165,442) |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
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 via wholly-owned subsidiaries. The Company has operations located in multiple states nationwide. 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 were accounted for as a reduction in additional paid-in capital. Aggregate offering expenses totaled $3,708 . 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 periods 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. The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company's financial position as of March 31, 2018, the Company's results of operations for the three months ended March 31, 2018 and 2017, and the Company's cash flows for the three months ended March 31, 2018 and 2017. The results for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for any interim period or for any other future year. Principles of Consolidation —The unaudited condensed consolidated interim 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, to achieve substantially higher revenue in order to become profitable, the Company may require additional funds that may not be 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 March 31, 2018, the Company has incurred losses from operations and accumulated a deficit of $165,442 , and has been dependent on equity financing to fund operations. 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, prior to its conversion on August 2nd, 2017 the 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. Significant Accounting Policies —There have been no material changes to the Company's significant accounting policies and estimates during the three months ended March 31, 2018, from the significant accounting policies in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, except as noted below. Recently Adopted Accounting Pronouncements — In May 2014, the Financial Accounting Standards Board ("FASB") issued a new Accounting Standard Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) . 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 adopted ASU 2014-09 and its related amendments (collectively known as ASC 606) effective 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, did not differ from the Company's timing for recognizing revenue prior to adopting this pronouncement. Further description of the impact of this pronouncement is included in Note 2: Revenue from Contracts with Customers. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230). This guidance impacts the classification of certain cash receipts and cash payments in the statement of cash flows. The new standard made eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The Company adopted the new standard on a retrospective basis on January 1 2018. The adoption of this standard had no impact on the Company’s statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This guidance impacts 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: Three Months Ended March 31, 2017 Previously reported Adjustments As revised Operating activities $ (22,011 ) $ 197 $ (21,814 ) Financing activities $ (1,028 ) $ 4,651 $ 3,623 Net change in cash, cash equivalents, and restricted cash (1) $ (27,821 ) $ (4,848 ) $ (22,973 ) (1) Previously titled: net change in cash and cash equivalents Recently Issued Accounting Pronouncements — In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . 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 adoption of this guidance will be significant and the 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Revenue Recognition — The Company applies the provisions of ASC 606-10, Revenue from Contracts with Customers ("ASC 606"), and all related appropriate guidance. The Company recognizes revenue under the core principle to depict the transfer of control to the Company’s customers in an amount reflecting the consideration the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company’s 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, Redfin Now home sales revenue, and other revenue. Revenue earned but not received is recorded as accrued revenue on the accompanying consolidated balance sheets, net of an allowance for doubtful accounts. The Company does not separately disclose the amounts of product and service revenue. Nature and Disaggregation of Revenue Real Estate Segment Brokerage 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. Brokerage revenue includes the Company's offer and listing services, representing homebuyers and home sellers. The transaction price is calculated by taking the agreed upon commission rate and applying that to the home's selling price for the offer service or the home's listing price for the listing service. Brokerage revenue contains a single performance obligation that is satisfied upon the closing of a real estate transaction, at which point the entire transaction price is earned. The Company is not entitled to any commission until the performance obligation is satisfied and is not owed any commission for unsuccessful transactions, even if services have been provided. Partner Revenue— Partner revenue consists of fees earned by referring customers to partner agents. Partner revenue is earned and recognized when partner agents close referred transactions, net of any refunds provided to customers. The transaction price is a fixed percentage of the partner agent's commission. The partner agent directly remits the referral fee revenue to the Company. The Company is not entitled to any referral fee revenue until the related referred real estate transaction closes, at which point the entire transaction price is earned and recognized as revenue. Other Segment Redfin Now Home Sales Revenue— Revenue earned from selling homes is recorded at closing on a gross basis, representing the sales price of the home, less any seller concessions. The Company does not offer warranties for sold homes, and recognizes the entire transaction price upon the closed real estate transaction. Other Services Revenue— Significantly all fees and revenue from other services are recognized when the service is provided. Other services revenue includes fees earned from mortgage banking operations, title settlement services, Walk Score data services, and advertising. Mortgage banking operations are not subject to the guidance in ASC 606 as the scope of the standard does not apply to revenue on contracts accounted for under Financial Instruments (Topic 825) but are included in other services revenue to reconcile total revenue presented on the condensed consolidated statements of operations to the disaggregation of revenue table below. The Company's revenue from contracts with customers for the various revenue categories is as follows: Three Months Ended March 31, 2018 2017 Real estate segment Brokerage revenue $ 70,143 $ 54,471 Partner revenue 4,781 3,900 Total real estate revenue $ 74,924 $ 58,371 Other segment Redfin Now home sales revenue $ 3,052 $ — Other services revenue 1,917 1,497 Total other segment revenue $ 4,969 $ 1,497 Other Considerations — The Company’s contracts with customers do not contain significant estimates or judgment. Significantly all of the Company's revenue contains a single performance obligation that is recognized upon a real estate transaction closing. The Company has utilized the practical expedient in ASC 606 and elected not to capitalize contract costs for contract with customers with durations less than one year. The Company does not have significant remaining performance obligations or contract balances. Accrued Revenue and 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. The majority of the Company’s transactions are processed through escrow and collectability is not a significant risk. The following table presents the activity in the allowance for doubtful accounts for the three months ended March 31, 2018: Real estate segment Other segment Total Allowance for doubtful accounts: Balance, December 31, 2017 $ 109 $ 51 $ 160 Charges (19 ) — (19 ) Write-offs (22 ) 20 (2 ) Balance, March 31, 2018 $ 68 $ 71 $ 139 Accrued revenue as of March 31, 2018: Accrued Revenue $ 12,093 $ 139 $ 12,232 Less: Allowance for doubtful accounts 68 71 139 Accrued revenue, net $ 12,025 $ 68 $ 12,093 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
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, accrued revenue, restricted cash, accounts payable, certain accrued liabilities, interest rate lock commitments, and forward sales commitments. 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 Interest Rate Lock Commitments ("IRLCs") and forward sales commitments, included in other current assets and other current liabilities. The Company does not have any Level III financial instruments as of the periods presented. Interest rate lock commitments and forward sales commitments are measured by observable marketplace prices. A summary of assets and liabilities at March 31, 2018 and December 31, 2017, related to the Company's financial instruments, measured at fair value on a recurring basis, is set forth below: Fair Value Financial Instrument March 31, 2018 December 31, 2017 Money market funds (included in cash and cash equivalents) Level I $ 176,813 $ 177,235 Interest rate lock commitments Level II 94 29 Forward loan commitments Level II $ (13 ) $ (4 ) |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment A summary of property and equipment at March 31, 2018 and December 31, 2017 is as follows: Useful Lives (Years) March 31, 2018 December 31, 2017 Leasehold improvements Shorter of lease term or economic life $ 16,657 $ 16,039 Website and software development costs 1-3 15,920 14,501 Computer and office equipment 3 2,297 2,192 Software 3 594 685 Furniture 7 3,193 3,039 38,661 36,456 Accumulated depreciation and amortization (15,782 ) (14,138 ) Property and equipment, net $ 22,879 $ 22,318 Depreciation and amortization expense for property and equipment amounted to $1,881 and $1,783 for the three months ended March 31, 2018 and 2017, respectively. |
Acquired Intangible Assets
Acquired Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets | Acquired Intangible Assets The following table presents details of the Company's intangible assets subject to amortization as of the dates presented: As of March 31, 2018 As of December 31, 2017 Useful Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trade Names 10 $ 1,040 $ (364 ) $ 676 $ 1,040 $ (338 ) $ 702 Developed technology 10 2,980 (1,043 ) 1,937 2,980 (968 ) 2,012 Customer relationships 10 860 (301 ) 559 860 (280 ) 580 $ 4,880 $ (1,708 ) $ 3,172 $ 4,880 $ (1,586 ) $ 3,294 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 $122 for the three months ended March 31, 2018 and 2017. Amortization expense of $2,440 will be recognized over the next five years, or $488 per year. |
Operating Segments
Operating Segments | 3 Months Ended |
Mar. 31, 2018 | |
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 earned 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 loss is as follows: Three Months Ended March 31, 2018 2017 Real estate Revenue $ 74,924 $ 58,372 Cost of revenue 68,164 51,156 Gross profit $ 6,760 $ 7,216 Other Revenue $ 4,969 $ 1,496 Cost of revenue 6,033 2,336 Gross profit $ (1,064 ) $ (840 ) Consolidated Revenue $ 79,893 $ 59,868 Cost of revenue 74,197 53,492 Gross profit $ 5,696 $ 6,376 Operating expenses 42,870 34,498 Net loss $ (36,439 ) $ (28,066 ) |
Redeemable Convertible Preferre
Redeemable Convertible Preferred Stock and Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Temporary Equity And Stockholder's Equity [Abstract] | |
Redeemable Convertible Preferred Stock and Stockholders' Equity | Redeemable Convertible Preferred Stock and Stockholders’ Equity 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 March 31, 2018. Please see Note 6 to the Company's consolidated financial statements in its Annual Report on Form 10-K for the fiscal year ended December 31, 2017 for a description of the terms of the redeemable convertible preferred stock. Accretion Expense —Accretion represents the increase in the redemption value of the Company’s redeemable convertible preferred stock. The recognized accretion expense 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 2017. Significant unobservable inputs used in the determination of fair value of the Company’s redeemable convertible preferred stock for the three months ended March 31, 2017, when outstanding, included the following: Three Months Ended March 31, 2017 Valuation methodology: Income approach (private company) 12.5% Market approach (private company) 12.5% PWERM (IPO) 60.0% PWERM (M&A) 15.0% IPO revenue multiple 2.8x-3.0x Forecasted revenue growth rate 31.1%-40.0% Discount rate 20.0% The following table presents the accretion expense of the redeemable convertible preferred stock to its redemption value recorded within the consolidated statements of changes in redeemable convertible preferred stock and stockholders’ equity during the three months ended March 31, 2017: Three Months Ended March 31, 2017 Series A-1 $ (701 ) Series A-2 (18 ) Series A-3 (1,365 ) Series B (5,451 ) Series C (5,008 ) Series D (4,286 ) Series E (1,806 ) Series F (3,121 ) Series G (3,014 ) Total $ (24,770 ) Common Stock —At March 31, 2018 and December 31, 2017 , the Company was authorized to issue 500,000,000 shares of common stock with a par value of $0.001 per share. The Company has reserved shares of common stock, on an as-converted basis, for future issuance as follows: March 31, 2018 December 31, 2017 2017 Equity Incentive Plan: Stock options issued and outstanding 11,821,024 13,180,950 Restricted stock units outstanding 1,152,718 981,276 Shares available for future equity grants 7,011,507 7,026,071 Total 19,985,249 21,188,297 2017 Employee Stock Purchase Plan: Shares reserved under employee stock purchase plan 2,414,688 1,600,000 Total 2,414,688 1,600,000 Preferred Stock — As of March 31, 2018 and 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 | 3 Months Ended |
Mar. 31, 2018 | |
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”) became effective 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 February 22, 2018, the board of directors determined to increase to the number of shares reserved for issuance under the 2017 ESPP by 814,688 shares. On each purchase date, participating employees 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. The initial offering period began on January 1, 2018. The Company has recognized compensation cost and employee deductions have commenced. Offering periods last 6 months each, and begin every January 1 and July 1. During the three months ended March 31, 2018, no shares of common stock were purchased under the 2017 ESPP. The fair value of common shares to be issued under the 2017 ESPP were calculated using the Black-Scholes-Merton option-pricing model with the following assumptions: Three Months Ended March 31, 2018 Expected life 0.5 years Volatility 37.01% Risk-free interest rate 1.61% Dividend yield —% Weighted-average grant date fair value $7.93 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 7,895,659 . 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 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 and generally vest over a four -year period. Amended and Restated 2004 Equity Incentive Plan -The Company granted options under its Amended and Restated 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. Options to Purchase Common Stock— The Company did not issue any options to purchase common stock during the three months ended March 31, 2018. The fair value of the options issued under the Amended and Restated 2004 Equity Incentive Plan for the three months ended March 31, 2017 were calculated using the Black-Scholes-Merton option-pricing model with the following assumptions: Three Months Ended March 31, 2017 Expected life 7 years Volatility 37.88% Risk-free interest rate 2.26% Dividend yield —% Weighted-average grant date fair value 4.53 The following table presents information regarding options granted, exercised, forfeited, or canceled for the periods presented: Weighted- Average Exercise Price Weighted-Average Remaining Contractual Life (years) Outstanding at December 31, 2017 13,180,950 $ 6.30 7.02 $ 329,786 Options granted — — Options exercised (1,198,732) 5.01 21,365 Options forfeited or canceled (161,194) 9.05 Outstanding at March 31, 2018 11,821,024 6.39 6.80 194,319 Options exercisable at March 31, 2018 8,101,710 $ 5.18 6.09 $ 143,034 The fair value of the outstanding options to purchase common stock will be recorded as stock-based compensation over the vesting period. As of March 31, 2018, there was $15,256 of total unrecognized compensation cost related to options to purchase common stock, which is expected to be recognized over a weighted-average period of 2.12 years . Restricted Stock Units— The following table summarizes activity for restricted stock units for the three months ended March 31, 2018: Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested outstanding at December 31, 2017 981,276 $ 22.78 Granted 216,312 20.58 Vested (7,532 ) 22.78 Forfeited or canceled (37,338 ) 22.74 Unvested outstanding at March 31, 2018 1,152,718 $ 22.37 The fair value of the outstanding restricted stock units will be recorded as stock-based compensation over the vesting period. As of March 31, 2018, there was $23,995 of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted-average period of 3.57 years . Compensation Cost —The following table presents detail of stock-based compensation, net of the amount capitalized in internally developed software, included in the Company’s condensed consolidated statements of operations for the periods indicated below Three Months Ended March 31, 2018 2017 Cost of revenue $ 1,300 $ 714 Technology and development 1,473 731 Marketing 119 119 General and administrative 1,304 1,117 Total stock-based compensation $ 4,196 $ 2,681 |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stock | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common Stock | Net Loss per Share Attributable to Common Stock Net loss per share attributable to common stock is computed by dividing the net loss attributable to common stock by the weighted-average number of common shares outstanding. The Company has outstanding stock options, restricted stock units, employee stock purchase plan shares, and previously had redeemable convertible preferred stock, which are included in the calculation of diluted net loss attributable to common stock per share whenever doing so would be dilutive. The Company calculates basic and diluted net 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 2 nd , 2017, the Company only had one class of participating security, common stock. Diluted net 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, options to purchase common stock, restricted stock units, and employee purchase plan shares are considered anti-dilutive securities for all periods presented. Basic and diluted net 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 loss per share attributable to common stock during the periods presented: Three Months Ended March 31, 2018 2017 Numerator: Net loss $ (36,439 ) $ (28,066 ) Accretion of preferred stock — (24,770 ) Net loss attributable to common stock—basic and diluted $ (36,439 ) $ (52,836 ) Denominator: Weighted average shares used to compute net loss per share attributable to common stock—basic and diluted 82,010,913 14,767,478 Net loss per share attributable to common stock—basic and diluted $ (0.44 ) $ (3.58 ) The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss per share attributable to common stock for the periods presented because their effect would have been anti-dilutive: Three Months Ended March 31, 2018 2017 Redeemable convertible preferred stock — 55,422,002 Options to purchase common stock 11,821,024 13,022,183 Restricted stock units 1,152,718 — Employee stock purchase plan shares 156,530 — Total 13,130,272 68,444,185 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
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 incorporated the change in federal tax rates in its annual tax provision for the period ended December 31, 2017. The net impact to the Company’s tax expense was $0 . As of December 31, 2017, the Company completed and recorded the adjustments necessary under Staff Accounting Bulletin No. 118 related to the Tax Act. The Company’s effective tax rate for the three-month periods ended March 31, 2018 and 2017 was 0% as a result of the Company recording a full valuation allowance against the deferred tax assets. In determining the realizability of the net U.S. federal and state deferred tax assets, the Company considers numerous factors including historical profitability, estimated future taxable income, prudent and feasible tax planning strategies and the industry in which it operates. Management reassesses the realization of the deferred tax assets each reporting period, which resulted in a valuation allowance against the full amount of the Company’s U.S. deferred tax assets for the three-month periods ended March 31, 2018 and 2017. To the extent that the financial results of the U.S. operations improve in the future and the deferred tax assets become realizable, the Company will reduce the valuation allowance through earnings. Under Section 382 of the Internal Revenue Code of 1986, as amended, substantial changes in the Company's ownership may limit the amount of net operating loss carryforwards that could be utilized annually in the future to offset taxable income. Any such annual limitation may significantly reduce the utilization of the net operating losses before they expire. A Section 382 limitation study performed as of March 31, 2017 determined there was an ownership change in 2006 and $1,538 of the 2006 net operating loss is unavailable. Net operating loss carryforwards are available to offset federal taxable income and begin to expire in 2025. As of December 31, 2017 the Company has accumulated approximately $87,071 of federal tax losses, and approximately $4,231 (tax effected) of state losses. The Company’s material income tax jurisdiction is the United States (federal). As a result of net operating loss carryforwards, the Company is subject to audit for tax years 2005 and forward for federal purposes. There are tax years which remain subject to examination in various other jurisdictions that are not material to the Company’s financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
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 the Superior Court of the State of California in 2013 and 2014. Two of the actions, which were pled as “class actions,” were removed to 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 was brought 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 an agreement to resolve all three of these lawsuits for an aggregate payment of $1,800 . 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 court issued final approval of the settlement on March 23, 2018, and the Company paid the settlement amount on March 30, 2018. The Company had recorded an accrual for $1,800 as of December 31, 2017. Pursuant to the terms of the settlement, all claims have been dismissed. The settlement does not contain any admission of liability, wrongdoing, or responsibility. 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 the Company's 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 11 years. Generally, 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 $1,870 and $2,645 for the three months ended March 31, 2018 and 2017, respectively. Other commitments primarily relate to network infrastructure for the Company’s data operations. 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 March 31, 2018 are as follows: Facility Leases Other Commitments March 31, 2018 2018 $ 6,211 $ 5,896 2019 8,604 2,066 2020 7,657 113 2021 7,131 0 2022 and thereafter 29,354 0 Total minimum lease payments $ 58,957 $ 8,075 Mortgage Warehouse and Master Repurchase Agreements — 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 March 31, 2018, but has not received a notice of default related to such failure from either Texas Capital or Western Alliance Bank. As of March 31, 2018 there was no thing outstanding under the Mortgage Warehouse Agreement and $1,357 outstanding on the Master Repurchase Agreement. As of December 31, 2017 there was $833 outstanding under the Mortgage Warehouse Agreement and $1,184 outstanding on the Master Repurchase Agreement. The Mortgage Warehouse Agreement expires on April 5, 2018 and the Master Repurchase Agreement expires on June 15, 2018. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities The following table presents the detail of accrued liabilities as of the dates presented: March 31, 2018 December 31, 2017 Accrued compensation and benefits $ 27,205 $ 19,543 Legal fees and settlements 708 2,230 Miscellaneous accrued liabilities 5,953 4,832 Total accrued liabilities: $ 33,866 $ 26,605 |
Retirement Plan
Retirement Plan | 3 Months Ended |
Mar. 31, 2018 | |
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 three months ended March 31, 2018 and 2017. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Mortgage Warehouse Agreement— In April 2018, the Company entered into a new Mortgage Warehouse Agreement with Texas Capital Bank. The Mortgage Warehouse Agreement expires on March 22, 2019 and the terms remain as described in Note 11 to the financial statements. |
Description of Business and S21
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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 periods 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. The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company's financial position as of March 31, 2018, the Company's results of operations for the three months ended March 31, 2018 and 2017, and the Company's cash flows for the three months ended March 31, 2018 and 2017. The results for the three months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for any interim period or for any other future year. |
Principles of Consolidation | Principles of Consolidation —The unaudited condensed consolidated interim financial statements include the accounts of Redfin and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated. |
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, prior to its conversion on August 2nd, 2017 the 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. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements — In May 2014, the Financial Accounting Standards Board ("FASB") issued a new Accounting Standard Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) . 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 adopted ASU 2014-09 and its related amendments (collectively known as ASC 606) effective 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, did not differ from the Company's timing for recognizing revenue prior to adopting this pronouncement. Further description of the impact of this pronouncement is included in Note 2: Revenue from Contracts with Customers. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230). This guidance impacts the classification of certain cash receipts and cash payments in the statement of cash flows. The new standard made eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The Company adopted the new standard on a retrospective basis on January 1 2018. The adoption of this standard had no impact on the Company’s statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . This guidance impacts 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: Three Months Ended March 31, 2017 Previously reported Adjustments As revised Operating activities $ (22,011 ) $ 197 $ (21,814 ) Financing activities $ (1,028 ) $ 4,651 $ 3,623 Net change in cash, cash equivalents, and restricted cash (1) $ (27,821 ) $ (4,848 ) $ (22,973 ) (1) Previously titled: net change in cash and cash equivalents Recently Issued Accounting Pronouncements — In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . 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 adoption of this guidance will be significant and the 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 |
Fair Value of Financial Instruments | The Company’s financial instruments consist of cash and cash equivalents, accrued revenue, restricted cash, accounts payable, certain accrued liabilities, interest rate lock commitments, and forward sales commitments. 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 Interest Rate Lock Commitments ("IRLCs") and forward sales commitments, included in other current assets and other current liabilities. The Company does not have any Level III financial instruments as of the periods presented. Interest rate lock commitments and forward sales commitments are measured by observable marketplace prices. |
Description of Business and S22
Description of Business and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The reconciliation of amounts previously reported to the revised amounts upon adoption are as follows: Three Months Ended March 31, 2017 Previously reported Adjustments As revised Operating activities $ (22,011 ) $ 197 $ (21,814 ) Financing activities $ (1,028 ) $ 4,651 $ 3,623 Net change in cash, cash equivalents, and restricted cash (1) $ (27,821 ) $ (4,848 ) $ (22,973 ) (1) Previously titled: net change in cash and cash equivalents |
Revenue from Contracts with C23
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company's revenue from contracts with customers for the various revenue categories is as follows: Three Months Ended March 31, 2018 2017 Real estate segment Brokerage revenue $ 70,143 $ 54,471 Partner revenue 4,781 3,900 Total real estate revenue $ 74,924 $ 58,371 Other segment Redfin Now home sales revenue $ 3,052 $ — Other services revenue 1,917 1,497 Total other segment revenue $ 4,969 $ 1,497 |
Contract with Customer, Asset and Liability | The following table presents the activity in the allowance for doubtful accounts for the three months ended March 31, 2018: Real estate segment Other segment Total Allowance for doubtful accounts: Balance, December 31, 2017 $ 109 $ 51 $ 160 Charges (19 ) — (19 ) Write-offs (22 ) 20 (2 ) Balance, March 31, 2018 $ 68 $ 71 $ 139 Accrued revenue as of March 31, 2018: Accrued Revenue $ 12,093 $ 139 $ 12,232 Less: Allowance for doubtful accounts 68 71 139 Accrued revenue, net $ 12,025 $ 68 $ 12,093 |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets, Liabilities, and Equity Measured at Fair Value on a Recurring Basis | A summary of assets and liabilities at March 31, 2018 and December 31, 2017, related to the Company's financial instruments, measured at fair value on a recurring basis, is set forth below: Fair Value Financial Instrument March 31, 2018 December 31, 2017 Money market funds (included in cash and cash equivalents) Level I $ 176,813 $ 177,235 Interest rate lock commitments Level II 94 29 Forward loan commitments Level II $ (13 ) $ (4 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | A summary of property and equipment at March 31, 2018 and December 31, 2017 is as follows: Useful Lives (Years) March 31, 2018 December 31, 2017 Leasehold improvements Shorter of lease term or economic life $ 16,657 $ 16,039 Website and software development costs 1-3 15,920 14,501 Computer and office equipment 3 2,297 2,192 Software 3 594 685 Furniture 7 3,193 3,039 38,661 36,456 Accumulated depreciation and amortization (15,782 ) (14,138 ) Property and equipment, net $ 22,879 $ 22,318 |
Acquired Intangible Assets (Tab
Acquired Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table presents details of the Company's intangible assets subject to amortization as of the dates presented: As of March 31, 2018 As of December 31, 2017 Useful Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trade Names 10 $ 1,040 $ (364 ) $ 676 $ 1,040 $ (338 ) $ 702 Developed technology 10 2,980 (1,043 ) 1,937 2,980 (968 ) 2,012 Customer relationships 10 860 (301 ) 559 860 (280 ) 580 $ 4,880 $ (1,708 ) $ 3,172 $ 4,880 $ (1,586 ) $ 3,294 |
Operating Segments (Tables)
Operating Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 loss is as follows: Three Months Ended March 31, 2018 2017 Real estate Revenue $ 74,924 $ 58,372 Cost of revenue 68,164 51,156 Gross profit $ 6,760 $ 7,216 Other Revenue $ 4,969 $ 1,496 Cost of revenue 6,033 2,336 Gross profit $ (1,064 ) $ (840 ) Consolidated Revenue $ 79,893 $ 59,868 Cost of revenue 74,197 53,492 Gross profit $ 5,696 $ 6,376 Operating expenses 42,870 34,498 Net loss $ (36,439 ) $ (28,066 ) |
Redeemable Convertible Prefer28
Redeemable Convertible Preferred Stock and Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Temporary Equity And Stockholder's Equity [Abstract] | |
Fair Value Inputs, Instruments Classified in Shareholders' Equity, Quantitative Information | Significant unobservable inputs used in the determination of fair value of the Company’s redeemable convertible preferred stock for the three months ended March 31, 2017, when outstanding, included the following: Three Months Ended March 31, 2017 Valuation methodology: Income approach (private company) 12.5% Market approach (private company) 12.5% PWERM (IPO) 60.0% PWERM (M&A) 15.0% IPO revenue multiple 2.8x-3.0x Forecasted revenue growth rate 31.1%-40.0% Discount rate 20.0% |
Temporary Equity | The following table presents the accretion expense of the redeemable convertible preferred stock to its redemption value recorded within the consolidated statements of changes in redeemable convertible preferred stock and stockholders’ equity during the three months ended March 31, 2017: Three Months Ended March 31, 2017 Series A-1 $ (701 ) Series A-2 (18 ) Series A-3 (1,365 ) Series B (5,451 ) Series C (5,008 ) Series D (4,286 ) Series E (1,806 ) Series F (3,121 ) Series G (3,014 ) Total $ (24,770 ) |
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: March 31, 2018 December 31, 2017 2017 Equity Incentive Plan: Stock options issued and outstanding 11,821,024 13,180,950 Restricted stock units outstanding 1,152,718 981,276 Shares available for future equity grants 7,011,507 7,026,071 Total 19,985,249 21,188,297 2017 Employee Stock Purchase Plan: Shares reserved under employee stock purchase plan 2,414,688 1,600,000 Total 2,414,688 1,600,000 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Value Assumptions | The fair value of common shares to be issued under the 2017 ESPP were calculated using the Black-Scholes-Merton option-pricing model with the following assumptions: Three Months Ended March 31, 2018 Expected life 0.5 years Volatility 37.01% Risk-free interest rate 1.61% Dividend yield —% Weighted-average grant date fair value $7.93 The fair value of the options issued under the Amended and Restated 2004 Equity Incentive Plan for the three months ended March 31, 2017 were calculated using the Black-Scholes-Merton option-pricing model with the following assumptions: Three Months Ended March 31, 2017 Expected life 7 years Volatility 37.88% Risk-free interest rate 2.26% Dividend yield —% Weighted-average grant date fair value 4.53 |
Schedule of Stock Option Activity | The following table presents information regarding options granted, exercised, forfeited, or canceled for the periods presented: Weighted- Average Exercise Price Weighted-Average Remaining Contractual Life (years) Outstanding at December 31, 2017 13,180,950 $ 6.30 7.02 $ 329,786 Options granted — — Options exercised (1,198,732) 5.01 21,365 Options forfeited or canceled (161,194) 9.05 Outstanding at March 31, 2018 11,821,024 6.39 6.80 194,319 Options exercisable at March 31, 2018 8,101,710 $ 5.18 6.09 $ 143,034 |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes activity for restricted stock units for the three months ended March 31, 2018: Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested outstanding at December 31, 2017 981,276 $ 22.78 Granted 216,312 20.58 Vested (7,532 ) 22.78 Forfeited or canceled (37,338 ) 22.74 Unvested outstanding at March 31, 2018 1,152,718 $ 22.37 |
Schedule of Allocation of Share-based Compensation Costs | The following table presents detail of stock-based compensation, net of the amount capitalized in internally developed software, included in the Company’s condensed consolidated statements of operations for the periods indicated below Three Months Ended March 31, 2018 2017 Cost of revenue $ 1,300 $ 714 Technology and development 1,473 731 Marketing 119 119 General and administrative 1,304 1,117 Total stock-based compensation $ 4,196 $ 2,681 |
Net Loss per Share Attributab30
Net Loss per Share Attributable to Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of basic and diluted net loss per share attributable to common stock during the periods presented: Three Months Ended March 31, 2018 2017 Numerator: Net loss $ (36,439 ) $ (28,066 ) Accretion of preferred stock — (24,770 ) Net loss attributable to common stock—basic and diluted $ (36,439 ) $ (52,836 ) Denominator: Weighted average shares used to compute net loss per share attributable to common stock—basic and diluted 82,010,913 14,767,478 Net loss per share attributable to common stock—basic and diluted $ (0.44 ) $ (3.58 ) |
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 loss per share attributable to common stock for the periods presented because their effect would have been anti-dilutive: Three Months Ended March 31, 2018 2017 Redeemable convertible preferred stock — 55,422,002 Options to purchase common stock 11,821,024 13,022,183 Restricted stock units 1,152,718 — Employee stock purchase plan shares 156,530 — Total 13,130,272 68,444,185 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments | Future minimum payments due under these agreements as of March 31, 2018 are as follows: Facility Leases Other Commitments March 31, 2018 2018 $ 6,211 $ 5,896 2019 8,604 2,066 2020 7,657 113 2021 7,131 0 2022 and thereafter 29,354 0 Total minimum lease payments $ 58,957 $ 8,075 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | The following table presents the detail of accrued liabilities as of the dates presented: March 31, 2018 December 31, 2017 Accrued compensation and benefits $ 27,205 $ 19,543 Legal fees and settlements 708 2,230 Miscellaneous accrued liabilities 5,953 4,832 Total accrued liabilities: $ 33,866 $ 26,605 |
Description of Business and S33
Description of Business and Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands | Aug. 02, 2017USD ($)$ / sharesshares | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Common stock issued upon conversion (in shares) | shares | 55,422,002 | ||
Conversion basis | 1 | ||
Initial public offering costs | $ 3,708 | ||
Accumulated deficit | $ (165,442) | (129,003) | |
Additional Paid-in Capital | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Initial public offering costs | $ 3,708 | ||
IPO | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Shares sold in offering (in shares) | shares | 10,615,650 | ||
Offering price (in dollars per share) | $ / shares | $ 15 | ||
Net proceeds from stock offering | $ 144,380 | ||
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 |
Description of Business and S34
Description of Business and Summary of Significant Accounting Policies - Adjustments for New Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating activities | $ (20,492) | $ (21,814) |
Financing activities | 12,036 | 3,623 |
Net change in cash, cash equivalents, and restricted cash (1) | $ (10,761) | (22,973) |
Previously reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating activities | (22,011) | |
Financing activities | (1,028) | |
Net change in cash, cash equivalents, and restricted cash (1) | (27,821) | |
Accounting Standards Update 2016-18 | Adjustments | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating activities | 197 | |
Financing activities | 4,651 | |
Net change in cash, cash equivalents, and restricted cash (1) | $ (4,848) |
Revenue from Contracts with C35
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Real estate segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 74,924 | $ 58,371 |
Real estate segment | Brokerage revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 70,143 | 54,471 |
Real estate segment | Partner revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 4,781 | 3,900 |
Other segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 4,969 | 1,497 |
Other segment | Redfin Now home sales revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | 3,052 | 0 |
Other segment | Other services revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer | $ 1,917 | $ 1,497 |
Revenue from Contracts with C36
Revenue from Contracts with Customers - Changes in Accrued Revenue and Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2018 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance, December 31, 2017 | $ 160 | |
Charges | (19) | |
Write-offs | (2) | |
Balance, March 31, 2018 | 139 | |
Accrued Revenue | $ 12,232 | |
Less: Allowance for doubtful accounts | 160 | 139 |
Accrued revenue, net | 12,093 | |
Real estate segment | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance, December 31, 2017 | 109 | |
Charges | (19) | |
Write-offs | (22) | |
Balance, March 31, 2018 | 68 | |
Accrued Revenue | 12,093 | |
Less: Allowance for doubtful accounts | 109 | 68 |
Accrued revenue, net | 12,025 | |
Other segment | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance, December 31, 2017 | 51 | |
Charges | 0 | |
Write-offs | 20 | |
Balance, March 31, 2018 | 71 | |
Accrued Revenue | 139 | |
Less: Allowance for doubtful accounts | $ 51 | 71 |
Accrued revenue, net | $ 68 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments - Narrative (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
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) | $ 176,813 | $ 177,235 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate lock commitments | 94 | 29 |
Forward loan commitments | $ (13) | $ (4) |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 38,661 | $ 36,456 |
Accumulated depreciation and amortization | (15,782) | (14,138) |
Property and equipment, net | 22,879 | 22,318 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 16,657 | 16,039 |
Website and software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 15,920 | 14,501 |
Website and software development costs | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (Years) | 1 year | |
Website and software development costs | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (Years) | 3 years | |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (Years) | 3 years | |
Property and equipment, gross | $ 2,297 | 2,192 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (Years) | 3 years | |
Property and equipment, gross | $ 594 | 685 |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (Years) | 7 years | |
Property and equipment, gross | $ 3,193 | $ 3,039 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and Amortization | $ 1,881 | $ 1,783 |
Acquired Intangible Assets - Sc
Acquired Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 4,880 | $ 4,880 |
Accumulated Amortization | (1,708) | (1,586) |
Net | $ 3,172 | 3,294 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Live (years) | 10 years | |
Gross | $ 1,040 | 1,040 |
Accumulated Amortization | (364) | (338) |
Net | $ 676 | 702 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Live (years) | 10 years | |
Gross | $ 2,980 | 2,980 |
Accumulated Amortization | (1,043) | (968) |
Net | $ 1,937 | 2,012 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Live (years) | 10 years | |
Gross | $ 860 | 860 |
Accumulated Amortization | (301) | (280) |
Net | $ 559 | $ 580 |
Acquired Intangible Assets - Na
Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization | $ 122 | $ 122 |
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) | 3 Months Ended |
Mar. 31, 2018segment | |
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 | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenue | $ 79,893 | $ 59,868 | |
Cost of revenue | 74,197 | 53,492 | |
Gross profit | 5,696 | 6,376 | |
Operating expenses | 42,870 | 34,498 | |
Net loss | (36,439) | (28,066) | $ (15,002) |
Real estate segment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenue | 74,924 | 58,372 | |
Cost of revenue | 68,164 | 51,156 | |
Gross profit | 6,760 | 7,216 | |
Other segment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenue | 4,969 | 1,496 | |
Cost of revenue | 6,033 | 2,336 | |
Gross profit | $ (1,064) | $ (840) |
Redeemable Convertible Prefer44
Redeemable Convertible Preferred Stock and Stockholders' Equity - Narrative (Details) | Mar. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares | Aug. 02, 2017 | Dec. 31, 2016shares |
Temporary Equity And Stockholder's Equity [Abstract] | ||||
Conversion basis | 1 | |||
Redeemable convertible preferred stock, authorized (in shares) | 0 | |||
Redeemable convertible preferred stock, issued (in shares) | 0 | |||
Redeemable convertible preferred stock outstanding (in shares) | 0 | 0 | 55,422,002 | |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Preferred stock, outstanding (in shares) | 0 | 0 |
Redeemable Convertible Prefer45
Redeemable Convertible Preferred Stock and Stockholders' Equity - Summary of Significant Unobservable Inputs (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |
Discount rate | 20.00% |
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) | 60.00% |
PWERM (IPO) | 15.00% |
Minimum | |
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |
IPO revenue multiple | 2.8 |
Forecasted revenue growth rate | 31.10% |
Maximum | |
Fair Value Inputs, Equity, Quantitative Information [Line Items] | |
IPO revenue multiple | 3 |
Forecasted revenue growth rate | 40.00% |
Redeemable Convertible Prefer46
Redeemable Convertible Preferred Stock and Stockholders' Equity - Accretion of Redeemable Convertible Preferred Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Temporary Equity [Line Items] | ||
Accretion of redeemable convertible preferred stock | $ 0 | $ (24,770) |
Series A-1 | ||
Temporary Equity [Line Items] | ||
Accretion of redeemable convertible preferred stock | (701) | |
Series A-2 | ||
Temporary Equity [Line Items] | ||
Accretion of redeemable convertible preferred stock | (18) | |
Series A-3 | ||
Temporary Equity [Line Items] | ||
Accretion of redeemable convertible preferred stock | (1,365) | |
Series B | ||
Temporary Equity [Line Items] | ||
Accretion of redeemable convertible preferred stock | (5,451) | |
Series C | ||
Temporary Equity [Line Items] | ||
Accretion of redeemable convertible preferred stock | (5,008) | |
Series D | ||
Temporary Equity [Line Items] | ||
Accretion of redeemable convertible preferred stock | (4,286) | |
Series E | ||
Temporary Equity [Line Items] | ||
Accretion of redeemable convertible preferred stock | (1,806) | |
Series F | ||
Temporary Equity [Line Items] | ||
Accretion of redeemable convertible preferred stock | (3,121) | |
Series G | ||
Temporary Equity [Line Items] | ||
Accretion of redeemable convertible preferred stock | $ (3,014) |
Redeemable Convertible Prefer47
Redeemable Convertible Preferred Stock and Stockholders' Equity - Summary of Common Stock Reserved for Future Issuance (Details) - shares | Mar. 31, 2018 | Dec. 31, 2017 | Jul. 26, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options issued and outstanding (in shares) | 11,821,024 | 13,180,950 | |
2017 Equity Incentive Plan: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options issued and outstanding (in shares) | 11,821,024 | 13,180,950 | |
Restricted stock units outstanding (in shares) | 1,152,718 | 981,276 | |
Shares available for future equity grants (in shares) | 7,011,507 | 7,026,071 | |
Total common stock reserved (in shares) | 19,985,249 | 21,188,297 | 7,895,659 |
2017 Employee Stock Purchase Plan: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total common stock reserved (in shares) | 2,414,688 | 1,600,000 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - USD ($) $ in Thousands | Jul. 27, 2017 | Mar. 31, 2018 | Feb. 22, 2018 | Dec. 31, 2017 | Jul. 26, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized stock-based compensation, options | $ 15,256 | ||||
2017 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved (in shares) | 2,414,688 | 1,600,000 | |||
2017 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved (in shares) | 19,985,249 | 21,188,297 | 7,895,659 | ||
Percentage of common stock, outstanding | 5.00% | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense, period for recognition | 3 years 6 months 26 days | ||||
Unrecognized stock-based compensation | $ 23,995 | ||||
Restricted stock units | 2017 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected life | 10 years | ||||
Award vesting period | 4 years | ||||
Employee stock purchase plan shares | 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% | ||||
Increase in common stock reserved (in shares) | 814,688 | ||||
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 1 month 13 days | ||||
Employee Stock Option | 2017 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expected life | 10 years | ||||
Award vesting period | 4 years |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Value Assumptions (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
2017 Employee Stock Purchase Plan | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 6 months | |
Volatility | 37.01% | |
Risk-free interest rate | 1.61% | |
Dividend yield | 0.00% | |
Weighted-average grant date fair value (in dollars per share | $ 7.93 | |
2004 Equity Incentive Plan | Options to purchase common stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 7 years | |
Volatility | 37.88% | |
Risk-free interest rate | 2.26% | |
Dividend yield | 0.00% | |
Weighted-average grant date fair value (in dollars per share | $ 4.53 |
Stock-based Compensation - Sche
Stock-based Compensation - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Number Of Options | ||
Outstanding at December 31, 2017 (in shares) | 13,180,950 | |
Options granted (in shares) | 0 | |
Options exercised (in shares) | (1,198,732) | |
Options forfeited or canceled (in shares) | (161,194) | |
Outstanding at March 31, 2018 (in shares) | 11,821,024 | 13,180,950 |
Options exercisable at March 31, 2018 (in shares) | 8,101,710 | |
Weighted- Average Exercise Price | ||
Outstanding at December 31, 2017 (in dollars per share) | $ 6.30 | |
Options granted (in dollars per share) | 0 | |
Options exercised (in dollars per share) | 5.01 | |
Options forfeited or canceled (in dollars per share) | 9.05 | |
Outstanding at March 31, 2018 (in dollars per share) | 6.39 | $ 6.30 |
Options exercisable at March 31, 2018 (in dollars per share) | $ 5.18 | |
Stock Option Activity, Additional Disclosures | ||
Weighted average remaining contractual life outstanding | 6 years 9 months 18 days | 7 years 7 days |
Weighted average remaining contractual life exercisable | 6 years 1 month 2 days | |
Options outstanding, Aggregate intrinsic value | $ 194,319 | $ 329,786 |
Options exercised, Aggregate intrinsic value | 21,365 | |
Options exercisable, Aggregate intrinsic value | $ 143,034 |
Stock-based Compensation - Sc51
Stock-based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted stock units | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Restricted Stock Units | |
Unvested outstanding at January 1, 2018 (in shares) | shares | 981,276 |
Granted (in shares) | shares | 216,312 |
Vested (in shares) | shares | (7,532) |
Forfeited or canceled (in shares) | shares | (37,338) |
Unvested outstanding at March 31, 2018 (in shares) | shares | 1,152,718 |
Weighted Average Grant-Date Fair Value | |
Unvested outstanding at January 1, 2018 (in dollars per share) | $ / shares | $ 22.78 |
Granted (in dollars per share) | $ / shares | 20.58 |
Vested (in dollars per share) | $ / shares | 22.78 |
Forfeited or canceled (in dollars per share) | $ / shares | 22.74 |
Unvested outstanding at March 31, 2018 (in dollars per share) | $ / shares | $ 22.37 |
Stock-based Compensation - Allo
Stock-based Compensation - Allocation of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 4,196 | $ 2,681 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 1,300 | 714 |
Technology and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 1,473 | 731 |
Marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 119 | 119 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 1,304 | $ 1,117 |
Net Loss per Share Attributab53
Net Loss per Share Attributable to Common Stock - Narrative (Details) | Aug. 02, 2017class |
Earnings Per Share [Abstract] | |
Number of classes of stock | 1 |
Net Loss per Share Attributab54
Net Loss per Share Attributable to Common Stock - Computation of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Numerator: | |||
Net loss | $ (36,439) | $ (28,066) | $ (15,002) |
Accretion of redeemable convertible preferred stock | 0 | (24,770) | |
Net loss attributable to common stock—basic | (36,439) | (52,836) | |
Net loss attributable to common stock—diluted | $ (36,439) | $ (52,836) | |
Denominator: | |||
Weighted average shares used to compute net income (loss) per share attributable to common stock—basic and diluted (in shares) | 82,010,913 | 14,767,478 | |
Net loss per share attributable to common stock—basic and diluted (in dollars per share) | $ (0.44) | $ (3.58) |
Net Loss per Share Attributab55
Net Loss per Share Attributable to Common Stock - Summary of Anti-dilutive Stock Equivalents (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share | 13,130,272 | 68,444,185 |
Redeemable convertible preferred stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share | 0 | 55,422,002 |
Options to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share | 11,821,024 | 13,022,183 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share | 1,152,718 | 0 |
Employee stock purchase plan shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share | 156,530 | 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Net impact on tax expense due to The Tax Act | $ 0 | ||
Effective tax rate | 0.00% | 0.00% | |
Operating loss unavailable for carryforward | $ 1,538,000 | ||
Federal Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 87,071,000 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 4,231,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017USD ($)lawsuit | Dec. 31, 2016USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2014lawsuit | |
Commitments and Contingencies Disclosure [Abstract] | |||||||
Number of pending lawsuits | lawsuit | 3 | 3 | |||||
Number of class action claims pending | lawsuit | 2 | ||||||
Number of representative claims pending | lawsuit | 1 | ||||||
Accrual for amount of settlement payment | $ 1,800,000 | $ 1,800,000 | |||||
Rent expense | $ 1,870,000 | $ 2,645,000 | |||||
Debt Instrument [Line Items] | |||||||
Amount outstanding under Warehouse Agreement | 1,357,000 | 2,016,000 | |||||
Texas Capital Bank, Warehouse Agreement | Mortgage Warehouse Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 10,000,000 | $ 10,000,000 | |||||
Discount on variable interest rate | 1.50% | ||||||
Stated interest rate | 3.00% | 3.00% | |||||
Lender participation interest | 97.00% | ||||||
Amount outstanding under Warehouse Agreement | 0 | 833,000 | |||||
Western Alliance Bank | Mortgage Warehouse Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 10,000,000 | ||||||
Stated interest rate | 3.75% | ||||||
Basis spread on variable interest rate | 3.00% | ||||||
Lender participation interest | 98.00% | ||||||
Amount outstanding under Warehouse Agreement | $ 1,357,000 | $ 1,184,000 | |||||
Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Operating lease term | 1 year | ||||||
Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Operating lease term | 11 years |
Commitments and Contingencies58
Commitments and Contingencies - Summary of Future Minimum Payments (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Facility Leases | |
2,018 | $ 6,211 |
2,019 | 8,604 |
2,020 | 7,657 |
2,021 | 7,131 |
2022 and thereafter | 29,354 |
Total minimum lease payments | 58,957 |
Other Commitments | |
2,018 | 5,896 |
2,019 | 2,066 |
2,020 | 113 |
2,021 | 0 |
2022 and thereafter | 0 |
Total minimum lease payments | $ 8,075 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 27,205 | $ 19,543 |
Legal fees and settlements | 708 | 2,230 |
Miscellaneous accrued liabilities | 5,953 | 4,832 |
Total accrued liabilities: | $ 33,866 | $ 26,605 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Minimum percentage of compensation allowed to be deferred | 1.00% | |
Maximum percentage of compensation allowed to be deferred | 100.00% | |
Employer matching and profit-sharing contributions | $ 0 | $ 0 |