Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Redfin Corp | |
Entity Central Index Key | 0001382821 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 90,988,859 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 395,618 | $ 432,608 |
Restricted cash | 10,471 | 6,446 |
Accrued revenue, net | 16,253 | 15,363 |
Inventory | 38,306 | 22,694 |
Loans held for sale | 15,748 | 4,913 |
Prepaid expenses and other current assets | 13,586 | 14,223 |
Total current assets | 489,982 | 496,247 |
Property and equipment, net | 30,618 | 25,187 |
Right of use assets, net | 32,737 | |
Goodwill and intangibles, net | 11,870 | 11,992 |
Other non-current assets | 9,403 | 9,395 |
Total assets | 574,610 | 542,821 |
Current liabilities | ||
Accounts payable | 17,533 | 2,516 |
Accrued liabilities | 54,064 | 30,837 |
Other payables | 10,374 | 6,544 |
Warehouse credit facilities | 15,193 | 4,733 |
Current operating lease liabilities | 6,368 | |
Current portion of deferred rent | 68 | 1,588 |
Total current liabilities | 103,600 | 46,218 |
Non-current operating lease liabilities | 41,567 | |
Deferred rent | 0 | 11,079 |
Convertible senior notes, net | 115,094 | 113,586 |
Total liabilities | 260,261 | 170,883 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity | ||
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 90,926,249 and 90,151,341 shares issued and outstanding, respectively | 91 | 90 |
Additional paid-in capital | 552,418 | 542,829 |
Accumulated deficit | (238,160) | (170,981) |
Total stockholders’ equity | 314,349 | 371,938 |
Total liabilities and stockholders’ equity | $ 574,610 | $ 542,821 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
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) | 90,926,249 | 90,151,341 |
Common stock, outstanding (in shares) | 90,926,249 | 90,151,341 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue | $ 110,141,000 | $ 79,893,000 |
Cost of revenue | 107,388,000 | 74,197,000 |
Gross profit | 2,753,000 | 5,696,000 |
Operating expenses | ||
Technology and development | 15,556,000 | 12,762,000 |
Marketing | 33,201,000 | 13,336,000 |
General and administrative | 21,448,000 | 16,772,000 |
Total operating expenses | 70,205,000 | 42,870,000 |
Loss from operations | (67,452,000) | (37,174,000) |
Interest income | 2,316,000 | 577,000 |
Interest expense | (2,136,000) | 0 |
Other income, net | 92,000 | 158,000 |
Net loss | $ (67,180,000) | $ (36,439,000) |
Net loss per share - basic and diluted (in dollars per share) | $ (0.74) | $ (0.44) |
Weighted average shares - basic and diluted (in shares) | 90,610,416 | 82,010,913 |
Foreign currency translation adjustments | $ 1,000 | $ 0 |
Total comprehensive loss | (67,179,000) | (36,439,000) |
Service | ||
Revenue | 88,768,000 | 76,841,000 |
Cost of revenue | 84,395,000 | 70,855,000 |
Product | ||
Revenue | 21,373,000 | 3,052,000 |
Cost of revenue | $ 22,993,000 | $ 3,342,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net loss | $ (67,180) | $ (36,439) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 1,637 | 2,003 |
Stock-based compensation | 6,406 | 4,196 |
Amortization of debt discount and issuance costs | 1,507 | 0 |
Non-cash lease expense | 1,216 | |
Change in assets and liabilities | ||
Accrued revenue | (890) | 1,241 |
Inventory | (15,612) | (3,286) |
Other assets | 1,441 | 3,374 |
Accounts payable | 14,848 | 1,029 |
Accrued liabilities | 21,695 | 7,248 |
Operating lease liabilities | (1,459) | |
Deferred rent | 69 | (268) |
Origination of loans held for sale | (49,850) | (9,477) |
Proceeds from sale of loans originated as held for sale | 39,015 | 9,887 |
Net cash used in operating activities | (47,157) | (20,492) |
Investing activities | ||
Purchases of property and equipment | (3,151) | (2,305) |
Net cash used in investing activities | (3,151) | (2,305) |
Financing activities | ||
Proceeds from the exercise of stock options | 3,732 | 5,946 |
Tax payment related to net share settlements on restricted stock units | (818) | (59) |
Borrowings from warehouse credit facilities | 48,557 | 9,265 |
Repayments of warehouse credit facilities | (38,097) | (9,924) |
Other payables - deposits held in escrow | 3,968 | 6,808 |
Net cash provided by financing activities | 17,342 | 12,036 |
Net change in cash, cash equivalents, and restricted cash | (32,966) | (10,761) |
Cash, cash equivalents, and restricted cash | ||
Beginning of period | 439,055 | 212,658 |
End of period | 406,089 | 201,897 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 1,202 | 0 |
Non-cash transactions | ||
Stock-based compensation capitalized in property and equipment | (270) | (124) |
Property and equipment additions in accounts payable and accrued liabilities | (1,370) | (55) |
Leasehold improvements paid directly by lessor | $ 1,963 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2017 | 81,468,891 | |||
Beginning balance at Dec. 31, 2017 | $ 235,430 | $ 81 | $ 364,352 | $ (129,003) |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of common stock pursuant to exercise of stock options (in shares) | 1,198,732 | |||
Issuance of common stock pursuant to exercise of stock options | 6,002 | $ 2 | 6,000 | |
Issuance of common stock pursuant to settlement of restricted stock units (in shares) | 7,532 | |||
Issuance of common stock pursuant to settlement of restricted stock units | 0 | |||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units (in shares) | (2,563) | |||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units | (58) | (58) | ||
Stock-based compensation | 4,320 | 4,320 | ||
Net loss | (36,439) | (36,439) | ||
Ending balance (in shares) at Mar. 31, 2018 | 82,672,592 | |||
Ending balance at Mar. 31, 2018 | $ 209,255 | $ 83 | 374,614 | (165,442) |
Beginning balance (in shares) at Dec. 31, 2018 | 90,151,341 | 90,151,341 | ||
Beginning balance at Dec. 31, 2018 | $ 371,938 | $ 90 | 542,829 | (170,981) |
Increase (Decrease) in Stockholders' Equity | ||||
Issuance of common stock pursuant to exercise of stock options (in shares) | 679,495 | 679,495 | ||
Issuance of common stock pursuant to exercise of stock options | $ 3,732 | $ 1 | 3,731 | |
Issuance of common stock pursuant to settlement of restricted stock units (in shares) | 139,889 | |||
Issuance of common stock pursuant to settlement of restricted stock units | 0 | |||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units (in shares) | (44,476) | |||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units | (818) | (818) | ||
Stock-based compensation | 6,676 | 6,676 | ||
Other comprehensive income | 1 | 1 | ||
Net loss | $ (67,180) | (67,180) | ||
Ending balance (in shares) at Mar. 31, 2019 | 90,926,249 | 90,926,249 | ||
Ending balance at Mar. 31, 2019 | $ 314,349 | $ 91 | $ 552,418 | $ (238,160) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 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”). All amounts are presented in thousands, except share and per share data. The financial information as of December 31, 2018 is derived from the audited consolidated financial statements and notes for the year ended December 31, 2018 included in Item 8 in the Annual Report on Form 10-K (the “2018 Annual Report”) of Redfin Corporation (the "Company" or "Redfin"). The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the notes and management’s discussion and analysis of the consolidated financial statements included in the 2018 Annual Report. 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, 2019 , the statements of comprehensive loss, cash flows, and stockholders' equity for the three months ended March 31, 2019 and 2018. The results for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 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. 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 evaluates its estimates on an ongoing basis. During the three months ended March 31, 2019, the estimated useful life of capitalized software for internal use was updated from one to two years . This change in estimate was not material. In addition, with the adoption of Accounting Standards Codification Topic 842, Leases ("ASC 842" or "Topic 842"), the Company estimated its incremental borrowing rate for the determination of the present value of lease payments. Further description of the impact of this pronouncement is included in Note 6: Leases. The amounts ultimately realized from the affected assets or 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 Accounting Pronouncements —In January 2019, the Company adopted ASU 2016-02, Leases (Topic 842) , using the optional alternative transition method under ASU 2018-11, Leases (Topic 842) Targeted Improvements . The optional alternative transition method applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company evaluated its portfolio of leases and determined a cumulative-effect adjustment to the opening balance of retained earnings was not needed, as the portfolio of leases contains only operating leases. The Company elected the package of practical expedients permitted under the transition guidance within the standard, allowing the Company to carry forward the historical lease classification, carry forward the conclusions on whether current or expired contracts contain leases, and carry forward the accounting for initial direct costs for existing leases. Additionally, the Company elected the practical expedient for use of hindsight to determine the lease term for existing leases whereby it evaluated the performance of existing leases in relation to our leasing strategy and determined that most renewal options would not be reasonably certain to be exercised. This resulted in the shortening of lease terms for the existing leases. Adoption of the standard resulted in the recording of right of use assets and corresponding lease liabilities of $33,953 and $49,395 , respectively, as of January 1, 2019, the difference of which is due to lease incentives. Further description of the impact of this pronouncement is included in Note 6: Leases. In January 2019, the Company adopted the guidance in the U.S. Securities and Exchange Commission (the "SEC") final rule under SEC Release No. 33-10532, Disclosure Update and Simplification. In August 2018, the SEC issued the final rule amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. Recently Issued Accounting Pronouncements — In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-13, Fair Value Measurement (Topic 820) , which modifies the disclosures on fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of such transfers. The ASU expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income. The ASU is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements. In August 2018, the FASB issued authoritative guidance under ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract . The ASU requires implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises of authoritative guidance for internal-use software, and deferred over the noncancelable term of the cloud computing arrangements plus any option renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. The ASU is effective for public entities for fiscal years beginning after December 15, 2019. The Company has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements. |
Segment Reporting and Revenue
Segment Reporting and Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting and Revenue | Segment Reporting and Revenue In its operation of the business, the Company's management, including its chief operating decision maker, who is also the Chief Executive Officer, 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. The Company has five operating segments and two reportable segments, real estate services and properties. Revenue is primarily generated from commissions and fees charged on each real estate services transaction completed by the Company or its partner agents, and proceeds from the sales of homes. The Company’s key revenue components are brokerage revenue, partner revenue, properties revenue, and other revenue. Revenue earned but not received is recorded as accrued revenue on the Company's consolidated balance sheets, net of an allowance for doubtful accounts. Accrued revenue, consisting of commission revenue, is known and is clearing escrow, and therefore it is not estimated. Information on each of the reportable and other segments and reconciliation to consolidated net loss is as follows: Three Months Ended March 31, 2019 2018 Real estate services Brokerage revenue $ 81,314 $ 70,143 Partner revenue 4,576 4,781 Total real estate services revenue 85,890 74,924 Cost of revenue 80,784 68,164 Gross profit 5,106 6,760 Properties Revenue 21,373 3,052 Cost of revenue 22,993 3,342 Gross profit (1,620 ) (290 ) Other Revenue 3,047 1,917 Cost of revenue 3,780 2,691 Gross profit (733 ) (774 ) Intercompany eliminations Revenue (169 ) — Cost of revenue (169 ) — Gross profit — — Consolidated Revenue 110,141 79,893 Cost of revenue 107,388 74,197 Gross profit 2,753 5,696 Operating expenses 70,205 42,870 Interest income 2,316 577 Interest expense (2,136 ) — Other income, net 92 158 Net loss $ (67,180 ) $ (36,439 ) The following table presents the detail of accrued revenue for the periods presented: Three Months Ended March 31, 2019 2018 Accrued revenue $ 16,481 $ 12,232 Less: Allowance for doubtful accounts (228 ) (139 ) Accrued revenue, net $ 16,253 $ 12,093 The following table presents the activity in the allowance for doubtful accounts for the period presented: Three Months Ended March 31, 2019 2018 Balance, beginning of period $ 166 $ 160 Charges 74 (19 ) Write-offs (12 ) (2 ) Balance, end of period $ 228 $ 139 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments A summary of assets and (liabilities) at March 31, 2019 and December 31, 2018 , related to the Company's financial instruments, measured at fair value on a recurring basis, is set forth below: Fair Value Financial Instrument Balance sheet location Fair Value Hierarchy March 31, 2019 December 31, 2018 Money market funds Cash and cash equivalents Level 1 $ 375,259 $ 425,776 Forward sales commitments Prepaid expenses and other current assets Level 2 16 — Forward sales commitments Accrued liabilities Level 2 (401 ) (141 ) Loans held for sale Prepaid expenses and other current assets Level 2 15,748 4,913 Interest rate lock commitments Prepaid expenses and other current assets Level 3 715 254 Interest rate lock commitments Accrued liabilities Level 3 (16 ) — The changes in the Level 3 financial instruments that are measured at fair value on a recurring basis were immaterial during the periods presented. See Note 14: Debt for the carrying amount and estimated fair value of the Notes. Assets and liabilities recognized or disclosed at fair value on a nonrecurring basis include items such as property, plant and equipment, goodwill and other intangible assets, cost method investments, and other assets. These assets are measured at fair value if determined to be impaired. For cost method investments, the Company did not record any significant nonrecurring fair value measurements after initial recognition for the period ended March 31, 2019. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory March 31, 2019 December 31, 2018 Properties for sale $ 14,748 $ 12,649 Properties not available for sale 1,920 2,328 Properties under improvement 21,638 7,717 Inventory $ 38,306 $ 22,694 Inventory costs include direct property acquisition costs and any capitalized improvements, net of applicable lower of cost or net realizable value write-downs. As of March 31, 2019 and December 31, 2018 , lower of cost or net realizable value write-downs were $100 and $190 , respectively. Properties not available for sale represent purchased properties that have been temporarily rented back to the previous homeowner, typically for less than 30 days. Both properties not available for sale and properties under improvement are expected to be sold in less than twelve months. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment A summary of property and equipment at March 31, 2019 and December 31, 2018 is as follows: Useful Lives (Years) March 31, 2019 December 31, 2018 Leasehold improvements Shorter of lease term or economic life $ 23,005 $ 19,285 Website and software development costs 2-3 21,766 19,948 Computer and office equipment 3 3,881 2,956 Software 3 595 595 Furniture 7 4,416 3,933 Property and equipment, gross 53,663 46,717 Accumulated depreciation and amortization (23,045 ) (21,530 ) Property and equipment, net $ 30,618 $ 25,187 Depreciation and amortization expense for property and equipment amounted to $1,515 and $1,881 for the three months ended March 31, 2019 and 2018 , respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The extent of the Company’s lease commitments consist of operating leases for physical office locations with terms ranging from one to 11 years . The Company has accounted for the portfolio of operating leases by disaggregation based on nature and term of the lease. Generally, the leases require a fixed minimum rent with contractual minimum rent increases over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet, but rather lease expense from these leases is recognized on a straight-line basis over the lease term. When available, the rate implicit in the lease to discount lease payments to present value would be used; however, none of the Company's significant leases as of March 31, 2019 provide a readily determinable implicit rate. Therefore, the Company must estimate its incremental borrowing rate for each portfolio of leases to discount the lease payments based on information available at lease commencement. The Company has evaluated the performance of existing leases in relation to its leasing strategy and determined that most renewal options would not be reasonably certain to be exercised. The right of use asset and related lease liability is determined based on the lease component of the consideration in each lease contract. The Company has evaluated its lease portfolio for appropriate allocation of the consideration in the lease contracts between lease and nonlease components based on standalone prices and determined the allocation per the contracts to be appropriate. Lease Cost Classification Three months ended March 31, 2019 Operating lease cost (a) Cost of revenue $ 1,693 Operating lease cost (a) G&A expenses 855 Total lease cost $ 2,548 (a) Includes lease expense of $821 for leases with initial terms of 12 months or less. Maturity of Lease Liabilities Operating Leases 2019, excluding the three months ended March 31, 2019 $ 7,932 2020 11,919 2021 11,408 2022 10,635 2023 9,678 Thereafter 21,255 Total lease payments $ 72,827 Less: Interest (24,892 ) Present value of lease liabilities $ 47,935 Lease Term and Discount Rate March 31, 2019 Weighted average remaining operating lease term (years) 7.1 Weighted average discount rate for operating leases 4.4 % Supplemental Cash Flow Information Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,975 Right of use assets obtained in exchange for lease liabilities Operating leases $ 33,953 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings — From time to time, the Company is involved in litigation, claims, and other proceedings arising in the ordinary course of its business. Such litigation and other proceedings may include, but are not limited to, actions or claims relating to employment law (including misclassification), intellectual property, privacy and consumer protection, the Real Estate Settlement Procedures Act of 1974, the Fair Housing Act of 1968 or other fair housing statutes, cybersecurity incidents, data breaches or misappropriation, and commercial or contractual disputes. They may also relate to ordinary-course brokerage disputes, including, but not limited to, failure to disclose property defects, failure to meet client legal obligations, commission disputes, personal injury or property damage claims, and vicarious liability based upon conduct of individuals or entities outside of the Company's control, including partner agents and third-party contractor agents. The Company does not believe that any of its pending litigation, claims, and other proceedings is material to its business. 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. Other commitments primarily relate to homes that the Company is under contract to purchase through its properties segment but that have not closed, and network infrastructure for the Company’s data operations. Future minimum payments due under these agreements as of March 31, 2019 are as follows: March 31, 2019 Facility Leases Other Commitments 2019 $ 7,932 $ 31,821 2020 11,919 2,412 2021 11,408 701 2022 10,635 1,138 2023 and thereafter 30,933 — Total minimum lease payments $ 72,827 $ 36,072 Warehouse Credit Facilities — In December 2016, Redfin Mortgage entered into a Mortgage Warehouse Agreement with Texas Capital Bank, National Association (“Texas Capital”), which was amended and restated in December 2017 and further amended on March 19, 2019. The Mortgage Warehouse Agreement expires on April 21, 2019. In April 2019, Redfin Mortgage and Texas Capital extended the Warehouse Agreement, as further described in Note 15: Subsequent Events. The Mortgage Warehouse Agreement requires Redfin Mortgage to maintain certain financial covenants and to provide periodic financial and compliance reports. Redfin Mortgage failed to satisfy a financial covenant contained in the Mortgage Warehouse Agreement as of March 31, 2019 , but Texas Capital has not enforced its remedies under the agreement, which principally include the rights to (i) cease purchasing participation interests in loans from Redfin Mortgage and (ii) sell all interests of Texas Capital or Redfin Mortgage in any loan subject to the agreement. As of March 31, 2019 and December 31, 2018 , there were $6,819 and $3,592 , respectively, outstanding under the Mortgage Warehouse Agreement. In June 2017, Redfin Mortgage entered into a Master Repurchase Agreement with Western Alliance Bank ("Western Alliance"), which was amended in September 2018. The Master Repurchase Agreement will expire on June 15, 2019. The Master Repurchase Agreement requires Redfin Mortgage to maintain certain financial covenants and to provide periodic financial and compliance reports. Redfin Mortgage failed to satisfy a financial covenant contained in the Master Repurchase Agreement as of March 31, 2019 , but Western Alliance has not enforced its remedy under the agreement of requiring Redfin Mortgage to repurchase all outstanding loans held by Western Alliance. As of March 31, 2019 and December 31, 2018 , there were $8,374 and $1,141 , respectively, outstanding on the Master Repurchase Agreement. |
Acquired Intangible Assets
Acquired Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, 2019 December 31, 2018 Useful Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trade names 10 $ 1,040 $ (468 ) $ 572 $ 1,040 $ (442 ) $ 598 Developed technology 10 2,980 (1,341 ) 1,639 2,980 (1,266 ) 1,714 Customer relationships 10 860 (387 ) 473 860 (366 ) 494 $ 4,880 $ (2,196 ) $ 2,684 $ 4,880 $ (2,074 ) $ 2,806 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 each of the three months ended March 31, 2019 and 2018 . Amortization expense of $2,440 will be recognized over the next five years, or $488 per year. |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities The following table presents the detail of accrued liabilities as of the dates presented: March 31, 2019 December 31, 2018 Accrued compensation and benefits $ 33,774 $ 22,862 Miscellaneous accrued liabilities 20,290 7,975 Total accrued liabilities $ 54,064 $ 30,837 The increase in miscellaneous accrued liabilities since December 31, 2018 was driven primarily by an increase in marketing activity during the quarter ended March 31, 2019, which was a result of increased marketing spend and timing of those expenses. |
Other Payables
Other Payables | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Other Payables | Other Payables Other payables consists primarily of customer deposits for cash held in escrow on behalf of real estate buyers using TItle Forward, the Company's wholly owned title and settlement services subsidiary. Since the Company does not have rights to the cash, the customer deposits are recorded as a liability with a corresponding asset in the same amount recorded within restricted cash. The following table presents the detail of other payables as of the dates presented: March 31, 2019 December 31, 2018 Customer deposits $ 10,194 $ 6,226 Miscellaneous payables 180 318 Total other payables $ 10,374 $ 6,544 |
Equity and Employee Stock Plans
Equity and Employee Stock Plans | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity and Employee Stock Plans | Equity and Employee Stock Plans Common Stock —At March 31, 2019 and December 31, 2018 , the Company was authorized to issue 500,000,000 shares of common stock with a par value of $0.001 per share. 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 initially reserved for issuance under the 2017 EIP was 7,898,159 . 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. Amended and Restated 2004 Equity Incentive Plan - The Company granted options under its 2004 Equity Incentive Plan, as amended ("2004 Plan"), until July 26, 2017, when the plan was terminated in connection with the Company’s IPO. Accordingly, no shares are available for future issuance under this plan. The 2004 Plan continues to govern outstanding equity awards granted thereunder. 2017 Employee Stock Purchase Plan —T he Company initially reserved 1,600,000 shares of common stock for issuance under the 2017 Employee Stock Purchase Plan (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. The Company has reserved shares of common stock, on an as-converted basis, for future issuance as follows: March 31, 2019 December 31, 2018 Equity Incentive Plans Stock options outstanding 8,713,162 9,435,349 Restricted stock units outstanding 3,588,275 3,264,702 Shares available for future equity grants 9,199,286 5,068,013 Total 21,500,723 17,768,064 2017 Employee Stock Purchase Plan Shares available for purchase on January 1, 2019 and 2018, respectively 2,890,973 2,414,688 Shares issued since January 1, 2019 and 2018, respectively — 425,228 Total shares available for future purchases 2,890,973 1,989,460 Preferred Stock — As of March 31, 2019 and December 31, 2018 , the Company was authorized to issue 10,000,000 shares of preferred stock with a par value of $0.001 , of which no shares were issued and outstanding. Stock Options— The following table summarizes activity for stock options for the three months ended March 31, 2019 : Weighted- Average Exercise Price Weighted-Average Remaining Contractual Life (years) Outstanding at December 31, 2018 9,435,349 $ 6.48 6.06 $ 74,669 Options exercised (679,495) 5.49 Options forfeited (40,550) 9.15 Options canceled (2,142) 8.35 Outstanding at March 31, 2019 8,713,162 6.55 6.00 119,575 Options exercisable at March 31, 2019 7,258,130 $ 6.01 5.69 $ 103,486 The grant date fair value of options to purchase common stock is recorded as stock-based compensation over the vesting period. As of March 31, 2019 , there was $6,174 of total unrecognized compensation cost related to options to purchase common stock, which is expected to be recognized over a weighted-average period of 1.40 years . Restricted Stock Units— The following table summarizes activity for restricted stock units for the three months ended March 31, 2019 : Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested outstanding at December 31, 2018 3,264,702 $ 19.68 Granted 569,915 19.61 Vested (139,889 ) 20.99 Forfeited or canceled (106,453 ) 19.48 Unvested outstanding at March 31, 2019 3,588,275 $ 19.62 The grant date fair value of restricted stock units is recorded as stock-based compensation over the vesting period. As of March 31, 2019 , there was $64,843 of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted-average period of 3.29 years . During the three months ended March 31, 2019 , the Company granted no restricted stock units subject to performance conditions. As of March 31, 2019 , there were outstanding 134,602 restricted stock units subject to performance conditions (the "2018 Performance RSUs") at 100% of the target level. For the three months ended March 31, 2019 , $278 of share-based compensation expense was recognized for the 2018 Performance RSUs. 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, 2019 2018 Cost of revenue $ 1,465 $ 1,300 Technology and development 2,656 1,473 Marketing 286 119 General and administrative 1,999 1,304 Total stock-based compensation $ 6,406 $ 4,196 |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stock | 3 Months Ended |
Mar. 31, 2019 | |
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, options to purchase shares under its employee stock purchase plan, and convertible senior notes, which are considered in the calculation of diluted net income (loss) attributable to common stock per share whenever doing so would be dilutive. 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, 2019 2018 Numerator Net loss $ (67,180 ) $ (36,439 ) Denominator Weighted average shares - basic and diluted 90,610,416 82,010,913 Net loss per share Net loss per share - basic and diluted $ (0.74 ) $ (0.44 ) The following outstanding shares of common stock equivalents as of March 31, 2019 and 2018 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, 2019 2018 Stock options 8,713,162 11,821,024 Restricted stock units 3,588,275 1,152,718 Employee stock purchase plan 290,647 156,530 Total 12,592,084 13,130,272 There is no impact from the Convertible Senior Notes due 2023 (the "Notes") on its diluted net loss per share for the three months ended March 31, 2019 as the notes are accounted for based on the treasury stock method as the Company has the ability, and intent, to settle any conversions of the Notes solely in cash. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the three months ended March 31, 2019 and 2018 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 months ended March 31, 2019 and 2018. 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. As of December 31, 2018, the Company had accumulated approximately $125,850 of federal tax losses, approximately $6,180 (tax effected) of state tax losses. Federal net operating losses are available to offset federal taxable income and begin to expire in 2025. Federal net operating loss carryforwards of $39,365 generated during 2018 are available to offset future U.S. federal taxable income over an indefinite period. 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. |
Convertible Senior Notes
Convertible Senior Notes | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Convertible Senior Notes — On July 23, 2018, the Company issued $143,750 aggregate principal amount of Notes.The Notes are senior, unsecured obligations of Redfin, and bear interest at a fixed rate of 1.75% per year, payable semi-annually in arrears on January 15 and July 15. The Notes mature on July 15, 2023, unless earlier repurchased, redeemed or converted. As of March 31, 2019, no conversion events have occurred. Redfin will settle conversions of the Notes by paying or delivering, as the case may be, cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election. The Company has the ability, and intends, to settle any conversions solely in cash. The Notes consisted of the following: March 31, 2019 December 31, 2018 Principal $ 143,750 $ 143,750 Less: debt discount, net of amortization (25,307 ) (26,636 ) Less: debt issuance costs, net of amortization (3,349 ) (3,528 ) Net carrying amount of the Notes $ 115,094 $ 113,586 The total estimated fair value of the Notes as of March 31, 2019 and December 31, 2018 was approximately $138,998 and $117,875 , respectively, based on the closing trading price of the Notes on last day of trading for the period. The fair value has been classified as Level 2 within the fair value hierarchy given the limited trading activity of the Notes. The following table sets forth total interest expense recognized related to the Notes for the period presented: Three months ended March 31, 2019 Amortization of debt discount $ 1,329 Amortization of debt issuance costs 178 Total amortization of debt issuance costs and accretion of equity portion 1,507 Contractual interest expense 629 Total interest expense related to the Notes $ 2,136 Effective interest rate of the liability component 7.25 % |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In April 2019, Redfin Mortgage and Texas Capital extended the expiration date of their Mortgage Warehouse Agreement to May 12, 2019. On May 7, 2019, Redfin Mortgage and Texas Capital amended and restated their Mortgage Warehouse Agreement. Pursuant to the new Mortgage Warehouse Agreement, Texas Capital agrees to fund loans originated by Redfin Mortgage, in its discretion, up to $15,000 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 0.5% , or 3.5% , whichever is higher. For each loan in which Texas Capital elects to purchase a participation interest, it will acquire an undivided 99% 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's participation interests in the loans will be repurchased in whole or in part by Redfin Mortgage. Redfin Corporation has guaranteed Redfin Mortgage’s obligations under the Mortgage Warehouse Agreement. The Mortgage Warehouse Agreement requires Redfin Mortgage to maintain certain financial covenants and to provide periodic financial and compliance reports. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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”). All amounts are presented in thousands, except share and per share data. The financial information as of December 31, 2018 is derived from the audited consolidated financial statements and notes for the year ended December 31, 2018 included in Item 8 in the Annual Report on Form 10-K (the “2018 Annual Report”) of Redfin Corporation (the "Company" or "Redfin"). The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the notes and management’s discussion and analysis of the consolidated financial statements included in the 2018 Annual Report. 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, 2019 , the statements of comprehensive loss, cash flows, and stockholders' equity for the three months ended March 31, 2019 and 2018. The results for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 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 evaluates its estimates on an ongoing basis. During the three months ended March 31, 2019, the estimated useful life of capitalized software for internal use was updated from one to two years . This change in estimate was not material. In addition, with the adoption of Accounting Standards Codification Topic 842, Leases ("ASC 842" or "Topic 842"), the Company estimated its incremental borrowing rate for the determination of the present value of lease payments. Further description of the impact of this pronouncement is included in Note 6: Leases. The amounts ultimately realized from the affected assets or 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 January 2019, the Company adopted ASU 2016-02, Leases (Topic 842) , using the optional alternative transition method under ASU 2018-11, Leases (Topic 842) Targeted Improvements . The optional alternative transition method applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company evaluated its portfolio of leases and determined a cumulative-effect adjustment to the opening balance of retained earnings was not needed, as the portfolio of leases contains only operating leases. The Company elected the package of practical expedients permitted under the transition guidance within the standard, allowing the Company to carry forward the historical lease classification, carry forward the conclusions on whether current or expired contracts contain leases, and carry forward the accounting for initial direct costs for existing leases. Additionally, the Company elected the practical expedient for use of hindsight to determine the lease term for existing leases whereby it evaluated the performance of existing leases in relation to our leasing strategy and determined that most renewal options would not be reasonably certain to be exercised. This resulted in the shortening of lease terms for the existing leases. Adoption of the standard resulted in the recording of right of use assets and corresponding lease liabilities of $33,953 and $49,395 , respectively, as of January 1, 2019, the difference of which is due to lease incentives. Further description of the impact of this pronouncement is included in Note 6: Leases. In January 2019, the Company adopted the guidance in the U.S. Securities and Exchange Commission (the "SEC") final rule under SEC Release No. 33-10532, Disclosure Update and Simplification. In August 2018, the SEC issued the final rule amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. Recently Issued Accounting Pronouncements — In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU No. 2018-13, Fair Value Measurement (Topic 820) , which modifies the disclosures on fair value measurements by removing the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of such transfers. The ASU expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income. The ASU is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements. In August 2018, the FASB issued authoritative guidance under ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract . The ASU requires implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises of authoritative guidance for internal-use software, and deferred over the noncancelable term of the cloud computing arrangements plus any option renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. The ASU is effective for public entities for fiscal years beginning after December 15, 2019. The Company has not yet completed its assessment of the impact of the new standard on the Company’s consolidated financial statements. |
Segment Reporting and Revenue (
Segment Reporting and Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 Real estate services Brokerage revenue $ 81,314 $ 70,143 Partner revenue 4,576 4,781 Total real estate services revenue 85,890 74,924 Cost of revenue 80,784 68,164 Gross profit 5,106 6,760 Properties Revenue 21,373 3,052 Cost of revenue 22,993 3,342 Gross profit (1,620 ) (290 ) Other Revenue 3,047 1,917 Cost of revenue 3,780 2,691 Gross profit (733 ) (774 ) Intercompany eliminations Revenue (169 ) — Cost of revenue (169 ) — Gross profit — — Consolidated Revenue 110,141 79,893 Cost of revenue 107,388 74,197 Gross profit 2,753 5,696 Operating expenses 70,205 42,870 Interest income 2,316 577 Interest expense (2,136 ) — Other income, net 92 158 Net loss $ (67,180 ) $ (36,439 ) |
Contract with Customer, Asset and Liability | The following table presents the detail of accrued revenue for the periods presented: Three Months Ended March 31, 2019 2018 Accrued revenue $ 16,481 $ 12,232 Less: Allowance for doubtful accounts (228 ) (139 ) Accrued revenue, net $ 16,253 $ 12,093 The following table presents the activity in the allowance for doubtful accounts for the period presented: Three Months Ended March 31, 2019 2018 Balance, beginning of period $ 166 $ 160 Charges 74 (19 ) Write-offs (12 ) (2 ) Balance, end of period $ 228 $ 139 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 , related to the Company's financial instruments, measured at fair value on a recurring basis, is set forth below: Fair Value Financial Instrument Balance sheet location Fair Value Hierarchy March 31, 2019 December 31, 2018 Money market funds Cash and cash equivalents Level 1 $ 375,259 $ 425,776 Forward sales commitments Prepaid expenses and other current assets Level 2 16 — Forward sales commitments Accrued liabilities Level 2 (401 ) (141 ) Loans held for sale Prepaid expenses and other current assets Level 2 15,748 4,913 Interest rate lock commitments Prepaid expenses and other current assets Level 3 715 254 Interest rate lock commitments Accrued liabilities Level 3 (16 ) — |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | March 31, 2019 December 31, 2018 Properties for sale $ 14,748 $ 12,649 Properties not available for sale 1,920 2,328 Properties under improvement 21,638 7,717 Inventory $ 38,306 $ 22,694 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | A summary of property and equipment at March 31, 2019 and December 31, 2018 is as follows: Useful Lives (Years) March 31, 2019 December 31, 2018 Leasehold improvements Shorter of lease term or economic life $ 23,005 $ 19,285 Website and software development costs 2-3 21,766 19,948 Computer and office equipment 3 3,881 2,956 Software 3 595 595 Furniture 7 4,416 3,933 Property and equipment, gross 53,663 46,717 Accumulated depreciation and amortization (23,045 ) (21,530 ) Property and equipment, net $ 30,618 $ 25,187 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | Lease Term and Discount Rate March 31, 2019 Weighted average remaining operating lease term (years) 7.1 Weighted average discount rate for operating leases 4.4 % Supplemental Cash Flow Information Three months ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,975 Right of use assets obtained in exchange for lease liabilities Operating leases $ 33,953 Lease Cost Classification Three months ended March 31, 2019 Operating lease cost (a) Cost of revenue $ 1,693 Operating lease cost (a) G&A expenses 855 Total lease cost $ 2,548 (a) Includes lease expense of $821 for leases with initial terms of 12 months or less. |
Lessee, Operating Lease, Liability, Maturity | Maturity of Lease Liabilities Operating Leases 2019, excluding the three months ended March 31, 2019 $ 7,932 2020 11,919 2021 11,408 2022 10,635 2023 9,678 Thereafter 21,255 Total lease payments $ 72,827 Less: Interest (24,892 ) Present value of lease liabilities $ 47,935 Future minimum payments due under these agreements as of March 31, 2019 are as follows: March 31, 2019 Facility Leases Other Commitments 2019 $ 7,932 $ 31,821 2020 11,919 2,412 2021 11,408 701 2022 10,635 1,138 2023 and thereafter 30,933 — Total minimum lease payments $ 72,827 $ 36,072 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | Maturity of Lease Liabilities Operating Leases 2019, excluding the three months ended March 31, 2019 $ 7,932 2020 11,919 2021 11,408 2022 10,635 2023 9,678 Thereafter 21,255 Total lease payments $ 72,827 Less: Interest (24,892 ) Present value of lease liabilities $ 47,935 Future minimum payments due under these agreements as of March 31, 2019 are as follows: March 31, 2019 Facility Leases Other Commitments 2019 $ 7,932 $ 31,821 2020 11,919 2,412 2021 11,408 701 2022 10,635 1,138 2023 and thereafter 30,933 — Total minimum lease payments $ 72,827 $ 36,072 |
Other Commitments | Future minimum payments due under these agreements as of March 31, 2019 are as follows: March 31, 2019 Facility Leases Other Commitments 2019 $ 7,932 $ 31,821 2020 11,919 2,412 2021 11,408 701 2022 10,635 1,138 2023 and thereafter 30,933 — Total minimum lease payments $ 72,827 $ 36,072 |
Acquired Intangible Assets (Tab
Acquired Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: March 31, 2019 December 31, 2018 Useful Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trade names 10 $ 1,040 $ (468 ) $ 572 $ 1,040 $ (442 ) $ 598 Developed technology 10 2,980 (1,341 ) 1,639 2,980 (1,266 ) 1,714 Customer relationships 10 860 (387 ) 473 860 (366 ) 494 $ 4,880 $ (2,196 ) $ 2,684 $ 4,880 $ (2,074 ) $ 2,806 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | The following table presents the detail of accrued liabilities as of the dates presented: March 31, 2019 December 31, 2018 Accrued compensation and benefits $ 33,774 $ 22,862 Miscellaneous accrued liabilities 20,290 7,975 Total accrued liabilities $ 54,064 $ 30,837 |
Other Payables (Tables)
Other Payables (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Other Payables | The following table presents the detail of other payables as of the dates presented: March 31, 2019 December 31, 2018 Customer deposits $ 10,194 $ 6,226 Miscellaneous payables 180 318 Total other payables $ 10,374 $ 6,544 |
Equity and Employee Stock Pla_2
Equity and Employee Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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, 2019 December 31, 2018 Equity Incentive Plans Stock options outstanding 8,713,162 9,435,349 Restricted stock units outstanding 3,588,275 3,264,702 Shares available for future equity grants 9,199,286 5,068,013 Total 21,500,723 17,768,064 2017 Employee Stock Purchase Plan Shares available for purchase on January 1, 2019 and 2018, respectively 2,890,973 2,414,688 Shares issued since January 1, 2019 and 2018, respectively — 425,228 Total shares available for future purchases 2,890,973 1,989,460 |
Schedule of Stock Option Activity | The following table summarizes activity for stock options for the three months ended March 31, 2019 : Weighted- Average Exercise Price Weighted-Average Remaining Contractual Life (years) Outstanding at December 31, 2018 9,435,349 $ 6.48 6.06 $ 74,669 Options exercised (679,495) 5.49 Options forfeited (40,550) 9.15 Options canceled (2,142) 8.35 Outstanding at March 31, 2019 8,713,162 6.55 6.00 119,575 Options exercisable at March 31, 2019 7,258,130 $ 6.01 5.69 $ 103,486 |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes activity for restricted stock units for the three months ended March 31, 2019 : Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested outstanding at December 31, 2018 3,264,702 $ 19.68 Granted 569,915 19.61 Vested (139,889 ) 20.99 Forfeited or canceled (106,453 ) 19.48 Unvested outstanding at March 31, 2019 3,588,275 $ 19.62 |
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, 2019 2018 Cost of revenue $ 1,465 $ 1,300 Technology and development 2,656 1,473 Marketing 286 119 General and administrative 1,999 1,304 Total stock-based compensation $ 6,406 $ 4,196 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 Numerator Net loss $ (67,180 ) $ (36,439 ) Denominator Weighted average shares - basic and diluted 90,610,416 82,010,913 Net loss per share Net loss per share - basic and diluted $ (0.74 ) $ (0.44 ) |
Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares of common stock equivalents as of March 31, 2019 and 2018 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, 2019 2018 Stock options 8,713,162 11,821,024 Restricted stock units 3,588,275 1,152,718 Employee stock purchase plan 290,647 156,530 Total 12,592,084 13,130,272 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The Notes consisted of the following: March 31, 2019 December 31, 2018 Principal $ 143,750 $ 143,750 Less: debt discount, net of amortization (25,307 ) (26,636 ) Less: debt issuance costs, net of amortization (3,349 ) (3,528 ) Net carrying amount of the Notes $ 115,094 $ 113,586 The total estimated fair value of the Notes as of March 31, 2019 and December 31, 2018 was approximately $138,998 and $117,875 , respectively, based on the closing trading price of the Notes on last day of trading for the period. The fair value has been classified as Level 2 within the fair value hierarchy given the limited trading activity of the Notes. The following table sets forth total interest expense recognized related to the Notes for the period presented: Three months ended March 31, 2019 Amortization of debt discount $ 1,329 Amortization of debt issuance costs 178 Total amortization of debt issuance costs and accretion of equity portion 1,507 Contractual interest expense 629 Total interest expense related to the Notes $ 2,136 Effective interest rate of the liability component 7.25 % |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 32,737 | ||
Operating lease, liability | $ 47,935 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 33,953 | ||
Operating lease, liability | $ 49,395 | ||
Software development | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Finite-lived intangible assets, useful life | 2 years | 1 year |
Segment Reporting and Revenue -
Segment Reporting and Revenue - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 5 |
Number of reportable segments | 2 |
Segment Reporting and Revenue_2
Segment Reporting and Revenue - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Brokerage revenue | $ 110,141 | $ 79,893 |
Cost of revenue | 107,388 | 74,197 |
Gross profit | 2,753 | 5,696 |
Operating expenses | 70,205 | 42,870 |
Interest income | 2,316 | 577 |
Interest expense | (2,136) | 0 |
Other income, net | 92 | 158 |
Net loss | (67,180) | (36,439) |
Operating Segments | Real estate services | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Brokerage revenue | 85,890 | 74,924 |
Cost of revenue | 80,784 | 68,164 |
Gross profit | 5,106 | 6,760 |
Operating Segments | Properties | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Brokerage revenue | 21,373 | 3,052 |
Cost of revenue | 22,993 | 3,342 |
Gross profit | (1,620) | (290) |
Other revenue | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Brokerage revenue | 3,047 | 1,917 |
Cost of revenue | 3,780 | 2,691 |
Gross profit | (733) | (774) |
Intercompany eliminations | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Brokerage revenue | (169) | 0 |
Cost of revenue | (169) | 0 |
Gross profit | 0 | 0 |
Brokerage revenue | Operating Segments | Real estate services | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Brokerage revenue | 81,314 | 70,143 |
Partner revenue | Operating Segments | Real estate services | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Brokerage revenue | $ 4,576 | $ 4,781 |
Segment Reporting and Revenue_3
Segment Reporting and Revenue - Summary of Accrued Revenue (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Segment Reporting [Abstract] | ||||
Accrued revenue | $ 16,481 | $ 12,232 | ||
Less: Allowance for doubtful accounts | (228) | $ (166) | (139) | $ (160) |
Accrued revenue, net | $ 16,253 | $ 12,093 |
Segment Reporting and Revenue_4
Segment Reporting and Revenue - Activity in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Allowance for doubtful accounts | ||
Balance, beginning of period | $ 166 | $ 160 |
Charges | 74 | (19) |
Write-offs | (12) | (2) |
Balance, end of period | $ 228 | $ 139 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 15,748 | $ 4,913 |
Money market funds | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 375,259 | 425,776 |
Forward sales commitments | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 16 | 0 |
Derivative liability | (401) | (141) |
Interest rate lock commitments | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 715 | 254 |
Derivative liability | $ (16) | $ 0 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Properties for sale | $ 14,748 | $ 12,649 |
Properties not available for sale | 1,920 | 2,328 |
Properties under improvement | 21,638 | 7,717 |
Inventory | 38,306 | 22,694 |
Lower of cost or net realizable value write-downs | $ 100 | $ 190 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 53,663 | $ 46,717 |
Accumulated depreciation and amortization | (23,045) | (21,530) |
Property and equipment, net | 30,618 | 25,187 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 23,005 | 19,285 |
Website and software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 21,766 | 19,948 |
Website and software development costs | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (Years) | 2 years | |
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 | $ 3,881 | 2,956 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (Years) | 3 years | |
Property and equipment, gross | $ 595 | 595 |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (Years) | 7 years | |
Property and equipment, gross | $ 4,416 | $ 3,933 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and Amortization | $ 1,515 | $ 1,881 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease term | 11 years |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Total lease cost | $ 2,548 |
Short-term lease cost | 821 |
Cost of revenue | |
Lessee, Lease, Description [Line Items] | |
Total lease cost | 1,693 |
G&A expenses | |
Lessee, Lease, Description [Line Items] | |
Total lease cost | $ 855 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019, excluding the three months ended March 31, 2019 | $ 7,932 |
2020 | 11,919 |
2021 | 11,408 |
2022 | 10,635 |
2023 | 9,678 |
Thereafter | 21,255 |
Total lease payments | 72,827 |
Less: Interest | (24,892) |
Present value of lease liabilities | $ 47,935 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Weighted average remaining operating lease term (years) | 7 years 1 month 6 days |
Weighted average discount rate for operating leases | 4.40% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 1,975 |
Right of use assets obtained in exchange for lease liabilities, operating leases | $ 33,953 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Amount outstanding under Warehouse Agreement | $ 15,193 | $ 4,733 |
Texas Capital Bank, Warehouse Agreement | Mortgage Warehouse Facility | ||
Debt Instrument [Line Items] | ||
Amount outstanding under Warehouse Agreement | 6,819 | 3,592 |
Western Alliance Bank | Mortgage Warehouse Facility | ||
Debt Instrument [Line Items] | ||
Amount outstanding under Warehouse Agreement | $ 8,374 | $ 1,141 |
Minimum | ||
Debt Instrument [Line Items] | ||
Operating lease term | 1 year | |
Maximum | ||
Debt Instrument [Line Items] | ||
Operating lease term | 11 years |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Future Minimum Payments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Facility Leases | |
2019, excluding the three months ended March 31, 2019 | $ 7,932 |
2020 | 11,919 |
2021 | 11,408 |
2022 | 10,635 |
2023 and thereafter | 30,933 |
Total lease payments | 72,827 |
Other Commitments | |
2019 | 31,821 |
2020 | 2,412 |
2021 | 701 |
2022 | 1,138 |
2023 and thereafter | 0 |
Total minimum lease payments | $ 36,072 |
Acquired Intangible Assets - Sc
Acquired Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 4,880 | $ 4,880 |
Accumulated Amortization | (2,196) | (2,074) |
Net | $ 2,684 | 2,806 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives (years) | 10 years | |
Gross | $ 1,040 | 1,040 |
Accumulated Amortization | (468) | (442) |
Net | $ 572 | 598 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives (years) | 10 years | |
Gross | $ 2,980 | 2,980 |
Accumulated Amortization | (1,341) | (1,266) |
Net | $ 1,639 | 1,714 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives (years) | 10 years | |
Gross | $ 860 | 860 |
Accumulated Amortization | (387) | (366) |
Net | $ 473 | $ 494 |
Acquired Intangible Assets - Na
Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization | $ 122 | $ 122 |
2019 | 488 | |
2020 | 488 | |
2021 | 488 | |
2022 | 488 | |
2023 | 488 | |
Net | $ 2,440 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 33,774 | $ 22,862 |
Miscellaneous accrued liabilities | 20,290 | 7,975 |
Total accrued liabilities | $ 54,064 | $ 30,837 |
Other Payables (Details)
Other Payables (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Customer deposits | $ 10,194 | $ 6,226 |
Miscellaneous payables | 180 | 318 |
Total other payables | $ 10,374 | $ 6,544 |
Equity and Employee Stock Pla_3
Equity and Employee Stock Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 27, 2017 | Jul. 26, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||
Preferred stock, shares issued (in shares) | 0 | 0 | |||
Unrecognized stock-based compensation, options | $ 6,174 | ||||
Share-based compensation expense | $ 6,406 | $ 4,196 | |||
Equity Incentive Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved (in shares) | 7,898,159 | 21,500,723 | 17,768,064 | ||
Percentage of common stock, outstanding | 5.00% | ||||
Restricted stock units outstanding (in shares) | 3,588,275 | 3,264,702 | |||
2017 Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock reserved (in shares) | 2,890,973 | 1,989,460 | |||
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% | ||||
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense, period for recognition | 1 year 4 months 26 days | ||||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense, period for recognition | 3 years 3 months 13 days | ||||
Unrecognized stock-based compensation | $ 64,843 | ||||
Restricted stock units outstanding (in shares) | 3,588,275 | 3,264,702 | |||
Performance RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock units outstanding (in shares) | 134,602 | ||||
Achievement percentage of performance conditions | 100.00% | ||||
Share-based compensation expense | $ 278 |
Equity and Employee Stock Pla_4
Equity and Employee Stock Plans - Summary of Common Stock Reserved for Future Issuance (in shares) (Details) - shares | Mar. 31, 2019 | Dec. 31, 2018 | Jul. 26, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 8,713,162 | 9,435,349 | |
Equity Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 8,713,162 | 9,435,349 | |
Restricted stock units outstanding (in shares) | 3,588,275 | 3,264,702 | |
Shares available for future equity grants (in shares) | 9,199,286 | 5,068,013 | |
Common stock reserved (in shares) | 21,500,723 | 17,768,064 | 7,898,159 |
2017 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for purchase on January 1, 2019 and 2018, respectively (in shares) | 2,890,973 | 2,414,688 | |
Shares issued since January 1, 2019 and 2018, respectively (in shares) | 0 | 425,228 | |
Common stock reserved (in shares) | 2,890,973 | 1,989,460 |
Equity and Employee Stock Pla_5
Equity and Employee Stock Plans - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | |
Number Of Options | |||
Outstanding, beginning balance (in shares) | 9,435,349 | ||
Options exercised (in shares) | (679,495) | ||
Options forfeited (in shares) | (40,550) | ||
Options canceled (in shares) | (2,142) | ||
Outstanding, ending balance (in shares) | 8,713,162 | ||
Options exercisable at period end (in shares) | 7,258,130 | ||
Weighted- Average Exercise Price | |||
Outstanding, beginning balance (in dollars per share) | $ 6.48 | ||
Options exercised (in dollars per share) | 5.49 | ||
Options forfeited (in dollars per share) | 9.15 | ||
Options canceled (in dollars per share) | 8.35 | ||
Outstanding, ending balance (in dollars per share) | 6.55 | ||
Options exercisable at period end (in dollars per share) | $ 6.01 | ||
Weighted-Average Remaining Contractual Life (years) | |||
Weighted average remaining contractual life outstanding | 6 years | 6 years 22 days | |
Weighted average remaining contractual life exercisable | 5 years 8 months 9 days | ||
Aggregate Intrinsic Value | |||
Options outstanding, Aggregate intrinsic value | $ 119,575 | $ 74,669 | |
Options exercisable, Aggregate intrinsic value | $ 103,486 |
Equity and Employee Stock Pla_6
Equity and Employee Stock Plans - Schedule of Restricted Stock Unit Activity (Details) - Restricted stock units | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Restricted Stock Units | |
Unvested outstanding at beginning of period (in shares) | shares | 3,264,702 |
Granted (in shares) | shares | 569,915 |
Vested (in shares) | shares | (139,889) |
Forfeited or canceled (in shares) | shares | (106,453) |
Unvested outstanding at end of period (in shares) | shares | 3,588,275 |
Weighted Average Grant-Date Fair Value | |
Unvested outstanding at beginning of period (in dollars per share) | $ / shares | $ 19.68 |
Granted (in dollars per share) | $ / shares | 19.61 |
Vested (in dollars per share) | $ / shares | 20.99 |
Forfeited or canceled (in dollars per share) | $ / shares | 19.48 |
Unvested outstanding at end of period (in dollars per share) | $ / shares | $ 19.62 |
Equity and Employee Stock Pla_7
Equity and Employee Stock Plans - Allocation of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 6,406 | $ 4,196 |
Cost of revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 1,465 | 1,300 |
Technology and development | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 2,656 | 1,473 |
Marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | 286 | 119 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation | $ 1,999 | $ 1,304 |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Common Stock - Computation of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator | ||
Net loss | $ (67,180) | $ (36,439) |
Weighted average shares: | ||
Weighted average shares - basic and diluted (in shares) | 90,610,416 | 82,010,913 |
Net loss per share | ||
Net loss per share - basic and diluted (in dollars per share) | $ (0.74) | $ (0.44) |
Net Loss per Share Attributab_4
Net Loss per Share Attributable to Common Stock - Summary of Anti-dilutive Stock Equivalents (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share (in shares) | 12,592,084 | 13,130,272 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share (in shares) | 8,713,162 | 11,821,024 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share (in shares) | 3,588,275 | 1,152,718 |
Employee stock purchase plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from earnings per share (in shares) | 290,647 | 156,530 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 0.00% | 0.00% | ||
Operating loss unavailable for carryforward | $ 1,538 | |||
Federal Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 125,850 | |||
Operating loss carryforwards, not subject to expiration | 39,365 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 6,180 |
Debt - Narrative (Details)
Debt - Narrative (Details) - 1.75% Convertible Senior Notes due 2023 - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Jul. 23, 2018 |
Debt Instrument [Line Items] | |||
Aggregated principal amount | $ 143,750,000 | ||
Stated interest rate | 1.75% | ||
Fair Value, Inputs, Level 2 | |||
Debt Instrument [Line Items] | |||
Debt instrument, fair value | $ 138,998,000 | $ 117,875,000 |
Debt - Components of The Notes
Debt - Components of The Notes (Details) - 1.75% Convertible Senior Notes due 2023 - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Principal | $ 143,750 | $ 143,750 |
Less: debt discount, net of amortization | (25,307) | (26,636) |
Less: debt issuance costs, net of amortization | (3,349) | (3,528) |
Net carrying amount of the Notes | $ 115,094 | $ 113,586 |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total amortization of debt issuance costs and accretion of equity portion | $ 1,507 | $ 0 |
Total interest expense related to the Notes | 2,136 | $ 0 |
1.75% Convertible Senior Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Amortization of debt discount | 1,329 | |
Amortization of debt issuance costs | 178 | |
Total amortization of debt issuance costs and accretion of equity portion | 1,507 | |
Contractual interest expense | 629 | |
Total interest expense related to the Notes | $ 2,136 | |
Effective interest rate of the liability component | 7.25% |
Subsequent Events (Details)
Subsequent Events (Details) - Texas Capital Bank, Warehouse Agreement - Mortgage Warehouse Facility - Subsequent Event | May 07, 2019USD ($) |
Subsequent Event [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 15,000,000 |
Debt instrument, variable rate | 0.50% |
Stated interest rate | 3.50% |
Line of credit facility, lender participation interest | 99.00% |