Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-38160 | |
Entity Registrant Name | Redfin Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-3064240 | |
Entity Address, Address Line One | 1099 Stewart Street | |
Entity Address, Address Line Two | Suite 600 | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98101 | |
City Area Code | (206) | |
Local Phone Number | 576-8333 | |
Title of 12(b) Security | Common Stock, $0.001 par value per share | |
Trading Symbol | RDFN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 91,834,413 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001382821 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 241,104 | $ 432,608 |
Restricted cash | 18,133 | 6,446 |
Short-term investments | 35,365 | 0 |
Accrued revenue, net | 38,686 | 15,363 |
Inventory | 85,654 | 22,694 |
Loans held for sale | 30,169 | 4,913 |
Prepaid expenses | 6,763 | 11,916 |
Other current assets | 5,860 | 2,307 |
Total current assets | 461,734 | 496,247 |
Long-term investments | 34,954 | 0 |
Property and equipment, net | 35,675 | 25,187 |
Right of use assets, net | 44,830 | |
Goodwill and intangibles, net | 11,748 | 11,992 |
Other non-current assets | 10,627 | 9,395 |
Total assets | 599,568 | 542,821 |
Current liabilities | ||
Accounts payable | 4,217 | 2,516 |
Accrued liabilities | 57,423 | 30,837 |
Other payables | 18,250 | 6,544 |
Borrowings under warehouse credit facilities | 29,427 | 4,733 |
Current operating lease liabilities | 8,719 | |
Current portion of deferred rent | 36 | 1,588 |
Total current liabilities | 118,072 | 46,218 |
Non-current operating lease liabilities | 52,634 | |
Deferred rent | 0 | 11,079 |
Convertible senior notes, net | 116,617 | 113,586 |
Total liabilities | 287,323 | 170,883 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity | ||
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 91,777,537 and 90,151,341 shares issued and outstanding, respectively | 92 | 90 |
Additional paid-in capital | 562,894 | 542,829 |
Accumulated other comprehensive income | 44 | 0 |
Accumulated deficit | (250,785) | (170,981) |
Total stockholders’ equity | 312,245 | 371,938 |
Total liabilities and stockholders’ equity | $ 599,568 | $ 542,821 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 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) | 91,777,537 | 90,151,341 |
Common stock, outstanding (in shares) | 91,777,537 | 90,151,341 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | $ 197,780 | $ 142,642 | $ 307,922 | $ 222,536 |
Cost of revenue | 149,434 | 97,429 | 256,821 | 171,626 |
Gross profit | 48,346 | 45,213 | 51,101 | 50,910 |
Operating expenses | ||||
Technology and development | 16,063 | 13,033 | 31,620 | 25,796 |
Marketing | 27,050 | 14,435 | 60,250 | 27,770 |
General and administrative | 17,654 | 15,288 | 39,102 | 32,062 |
Total operating expenses | 60,767 | 42,756 | 130,972 | 85,628 |
Income (loss) from operations | (12,421) | 2,457 | (79,871) | (34,718) |
Interest income | 1,913 | 729 | 4,229 | 1,307 |
Interest expense | (2,153) | 0 | (4,290) | 0 |
Other income, net | 36 | 21 | 128 | 179 |
Net income (loss) | $ (12,625) | $ 3,207 | $ (79,804) | $ (33,232) |
Net income (loss) per share - basic (in dollars per share) | $ (0.14) | $ 0.04 | $ (0.88) | $ (0.40) |
Net income (loss) per share - diluted (in dollars per share) | $ (0.14) | $ 0.04 | $ (0.88) | $ (0.40) |
Weighted average shares - basic (in shares) | 91,216,886 | 83,164,670 | 90,915,334 | 82,590,979 |
Weighted average shares - diluted (in shares) | 91,216,886 | 90,743,178 | 90,915,334 | 82,590,979 |
Foreign currency translation adjustments | $ 37 | $ 0 | $ 38 | $ 0 |
Unrealized gain on available-for-sale securities | 6 | 0 | 6 | 0 |
Total comprehensive loss | (12,582) | 3,207 | (79,760) | (33,232) |
Service | ||||
Revenue | 157,872 | 133,656 | 246,641 | 210,498 |
Cost of revenue | 108,528 | 88,341 | 192,923 | 159,196 |
Product | ||||
Revenue | 39,908 | 8,986 | 61,281 | 12,038 |
Cost of revenue | $ 40,906 | $ 9,088 | $ 63,898 | $ 12,430 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||
Net loss | $ (79,804) | $ (33,232) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 3,809 | 3,902 |
Stock-based compensation | 12,282 | 8,974 |
Amortization of debt discount and issuance costs | 3,031 | 0 |
Non-cash lease expense | 2,943 | 0 |
Other | (100) | 0 |
Change in assets and liabilities | ||
Accrued revenue | (23,323) | (5,568) |
Inventory | (62,960) | (11,137) |
Prepaid expenses and other assets | 1,230 | 3,682 |
Accounts payable | 1,350 | 1,934 |
Accrued liabilities and other payables | 26,494 | 7,481 |
Operating lease liabilities | (3,301) | |
Deferred rent | (5) | (583) |
Origination of loans held for sale | (153,335) | (29,249) |
Proceeds from sale of loans originated as held for sale | 128,080 | 27,555 |
Net cash used in operating activities | (143,609) | (26,241) |
Investing activities | ||
Purchases of investments | (70,312) | 0 |
Sales of investments | 100 | 0 |
Purchases of property and equipment | (9,504) | (4,045) |
Net cash used in investing activities | (79,716) | (4,045) |
Financing activities | ||
Proceeds from the exercise of stock options | 8,965 | 14,394 |
Tax payments related to net share settlements on restricted stock units | (1,792) | (227) |
Borrowings from warehouse credit facilities | 149,900 | 28,551 |
Repayments of warehouse credit facilities | (125,206) | (27,076) |
Other payables - deposits held in escrow | 11,602 | 13,631 |
Net cash provided by financing activities | 43,469 | 29,273 |
Effect of exchange rate changes on cash and cash equivalents | 38 | 0 |
Net change in cash, cash equivalents, and restricted cash | (179,818) | (1,013) |
Cash, cash equivalents, and restricted cash | ||
Beginning of period | 439,055 | 212,658 |
End of period | 259,237 | 211,645 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 1,202 | 0 |
Non-cash transactions | ||
Stock-based compensation capitalized in property and equipment | (561) | (244) |
Property and equipment additions in accounts payable and accrued liabilities | (620) | (21) |
Leasehold improvements paid directly by lessor | $ (3,444) | $ (926) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income |
Beginning balance (in shares) at Dec. 31, 2017 | 81,468,891 | ||||
Beginning balance at Dec. 31, 2017 | $ 235,430 | $ 81 | $ 364,352 | $ (129,003) | $ 0 |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock pursuant to employee stock purchase program (in shares) | 187,076 | ||||
Issuance of common stock pursuant to employee stock purchase program | 3,671 | 3,671 | |||
Issuance of common stock pursuant to exercise of stock options (in shares) | 2,108,485 | ||||
Issuance of common stock pursuant to exercise of stock options | 10,753 | $ 3 | 10,750 | ||
Issuance of common stock pursuant to settlement of restricted stock units (in shares) | 31,022 | ||||
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) | (10,223) | ||||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units | (227) | (227) | |||
Stock-based compensation | 9,218 | 9,218 | |||
Net loss | (33,232) | ||||
Ending balance (in shares) at Jun. 30, 2018 | 83,785,251 | ||||
Ending balance at Jun. 30, 2018 | 225,613 | $ 84 | 387,764 | (162,235) | 0 |
Beginning balance (in shares) at Mar. 31, 2018 | 82,672,592 | ||||
Beginning balance at Mar. 31, 2018 | 209,255 | $ 83 | 374,614 | (165,442) | 0 |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock pursuant to employee stock purchase program (in shares) | 187,076 | ||||
Issuance of common stock pursuant to employee stock purchase program | 3,671 | 3,671 | |||
Issuance of common stock pursuant to exercise of stock options (in shares) | 909,753 | ||||
Issuance of common stock pursuant to exercise of stock options | 4,750 | $ 1 | 4,749 | ||
Issuance of common stock pursuant to settlement of restricted stock units (in shares) | 23,490 | ||||
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) | (7,660) | ||||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units | (167) | (167) | |||
Stock-based compensation | 4,897 | 4,897 | |||
Net loss | 3,207 | ||||
Ending balance (in shares) at Jun. 30, 2018 | 83,785,251 | ||||
Ending balance at Jun. 30, 2018 | $ 225,613 | $ 84 | 387,764 | (162,235) | 0 |
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) | 0 |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock pursuant to employee stock purchase program (in shares) | 262,110 | ||||
Issuance of common stock pursuant to employee stock purchase program | $ 3,246 | 3,246 | |||
Issuance of common stock pursuant to exercise of stock options (in shares) | 1,099,599 | 1,099,599 | |||
Issuance of common stock pursuant to exercise of stock options | $ 5,770 | $ 2 | 5,768 | ||
Issuance of common stock pursuant to settlement of restricted stock units (in shares) | 366,915 | ||||
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) | (102,428) | ||||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units | (1,792) | (1,792) | |||
Stock-based compensation | 12,843 | 12,843 | |||
Other comprehensive income | 44 | 44 | |||
Net loss | $ (79,804) | ||||
Ending balance (in shares) at Jun. 30, 2019 | 91,777,537 | 91,777,537 | |||
Ending balance at Jun. 30, 2019 | $ 312,245 | $ 92 | 562,894 | (250,785) | 44 |
Beginning balance (in shares) at Mar. 31, 2019 | 90,926,249 | ||||
Beginning balance at Mar. 31, 2019 | 314,349 | $ 91 | 552,418 | (238,160) | 1 |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of common stock pursuant to employee stock purchase program (in shares) | 262,110 | ||||
Issuance of common stock pursuant to employee stock purchase program | 3,246 | 3,246 | |||
Issuance of common stock pursuant to exercise of stock options (in shares) | 420,104 | ||||
Issuance of common stock pursuant to exercise of stock options | 2,039 | $ 1 | 2,038 | ||
Issuance of common stock pursuant to settlement of restricted stock units (in shares) | 227,026 | ||||
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) | (57,952) | ||||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units | (975) | (975) | |||
Stock-based compensation | 6,167 | 6,167 | |||
Other comprehensive income | 43 | 43 | |||
Net loss | $ (12,625) | (12,625) | |||
Ending balance (in shares) at Jun. 30, 2019 | 91,777,537 | 91,777,537 | |||
Ending balance at Jun. 30, 2019 | $ 312,245 | $ 92 | $ 562,894 | $ (250,785) | $ 44 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 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 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 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 June 30, 2019 , the statements of comprehensive income (loss) and stockholders' equity for the three and six months ended June 30, 2019 and 2018 , and the statement of cash flows for the six months ended June 30, 2019 and 2018. The results for the three and six months ended June 30, 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 six months ended June 30, 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. Cash and Cash Equivalents —Cash equivalents consist primarily of money market instruments and U.S. treasury securities. The Company considers all highly liquid investments originally purchased by the Company with original maturities of three months or less at the date of purchase to be cash equivalents and classified as available-for-sale. Investments —The Company has two types of investments; available-for-sale investments that are available to support operational needs of the Company, which are reported on the balance sheet as short-term and long-term investments, and long-term equity investments accounted for under the cost method, which are reported in other non-current assets. Available-for-sale The Company's short-term and long-term investments consist primarily of U.S. treasury securities, all of which are classified as available-for-sale. Available-for-sale debt securities are recorded at fair value, and unrealized holding gains and losses are recorded as a component of accumulated other comprehensive income. Available-for-sale securities with maturities of one year or less and those identified by management at the time of purchase to be used to fund operations within one year are classified as short-term. All other available-for-sale securities are classified as long-term. The Company evaluates its available-for-sale securities, both ones classified as cash equivalents and as investments, for other-than-temporary impairment on a quarterly basis. Unrealized losses are charged against net earnings when a decline in fair value is determined to be other than temporary. The Company reviews factors to determine whether a loss is other than temporary, such as the length and extent of the fair value decline, the financial condition and near-term prospects of the issuer, and whether the Company has the intent to sell or will more likely than not be required to sell before the securities' anticipated recovery, which may be at maturity. Realized gains and losses are accounted for using the specific identification method. Purchases and sales are recorded on a trade date basis. There were no other than temporary impairments during the periods presented. Cost Method Investments In December 2018, the Company purchased an equity interest in a privately held company for approximately $2,000 which is classified as long-term. The investment is an equity security without a readily determinable fair value that is accounted for at cost minus any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The Company performs a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired as of the end of each reporting period. Advertising and Advertising Production Costs —The Company expenses advertising costs as they are incurred and production costs as of the first date the advertisement takes place. Advertising costs totaled $23,845 and $12,048 for the three months ended June 30, 2019 and 2018 , respectively, and $54,078 and $23,231 for the six months ended June 30, 2019 and 2018 , respectively, and are included in marketing expenses. Advertising production costs totaled $101 and $25 for the three months ended June 30, 2019 and 2018 , respectively, and $149 and $13 for the six months ended June 30, 2019 and 2018 , respectively, and are included in marketing expenses. 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. In June 2016, the FASB issued authoritative guidance under ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), which modifies the measurement of credit losses on financial instruments. This guidance requires the use of an expected loss impairment model for instruments measured at amortized cost based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. For available-for-sale debt securities, an entity is required to recognize credit losses through an allowance for credit losses rather than as an impairment. The ASU is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The adoption of this guidance requires a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. 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 | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Real estate services Brokerage revenue $ 145,399 $ 123,355 $ 226,713 $ 193,498 Partner revenue 7,447 7,503 12,023 12,285 Total real estate services revenue 152,846 130,858 238,736 205,783 Cost of revenue 103,616 85,337 184,399 153,501 Gross profit 49,230 45,521 54,337 52,282 Properties Revenue 39,908 8,986 61,281 12,038 Cost of revenue 40,906 9,088 63,898 12,430 Gross profit (998 ) (102 ) (2,617 ) (392 ) Other Revenue 5,281 2,798 8,329 4,715 Cost of revenue 5,167 3,004 8,948 5,695 Gross profit 114 (206 ) (619 ) (980 ) Intercompany eliminations Revenue (255 ) — (424 ) — Cost of revenue (255 ) — (424 ) — Gross profit — — — — Consolidated Revenue 197,780 142,642 307,922 222,536 Cost of revenue 149,434 97,429 256,821 171,626 Gross profit 48,346 45,213 51,101 50,910 Operating expenses 60,767 42,756 130,972 85,628 Interest income 1,913 729 4,229 1,307 Interest expense (2,153 ) — (4,290 ) — Other income, net 36 21 128 179 Net income (loss) $ (12,625 ) $ 3,207 $ (79,804 ) $ (33,232 ) The following table presents the detail of accrued revenue for the periods presented: Six Months Ended June 30, 2019 2018 Accrued revenue $ 38,902 $ 19,036 Less: Allowance for doubtful accounts (216 ) (134 ) Accrued revenue, net $ 38,686 $ 18,902 The following table presents the activity in the allowance for doubtful accounts for the period presented: Six Months Ended June 30, 2019 2018 Balance, beginning of period $ 166 $ 160 Charges 70 (2 ) Write-offs (20 ) (24 ) Balance, end of period $ 216 $ 134 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments A summary of assets and liabilities at June 30, 2019 and December 31, 2018 , related to the Company's financial instruments measured at fair value on a recurring basis, is set forth below, along with the balance sheet accounts they are classified within: Balance at June 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents Money market funds $ 195,996 $ 195,996 $ — $ — U.S. treasury securities 29,940 — 29,940 — Short-term investments U.S. treasury securities 35,365 — 35,365 — Loans held for sale 30,169 — 30,169 — Prepaid expenses and other current assets Forward sales commitments 25 — 25 — Interest rate lock commitments 712 — — 712 Total prepaid expenses and other current assets 737 — 25 712 Long-term investments U.S. treasury securities 34,954 — 34,954 — Total assets $ 327,161 $ 195,996 $ 130,453 $ 712 Liabilities Accrued liabilities Forward sales commitments $ 407 $ — $ 407 $ — Interest rate lock commitments 24 — — 24 Total liabilities $ 431 $ — $ 407 $ 24 Balance at December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents Money market funds $ 425,776 $ 425,776 $ — $ — Loans held for sale 4,913 — 4,913 — Prepaid expenses and other current assets Interest rate lock commitments 254 — — 254 Total prepaid expenses and other current assets 254 — — 254 Total assets $ 430,943 $ 425,776 $ 4,913 $ 254 Liabilities Accrued liabilities Forward sales commitments $ 141 $ — $ 141 $ — Total liabilities $ 141 $ — $ 141 $ — There were no material transfers between levels, and there was no significant activity within Level 3 financial instruments during the periods presented. See Note 14: Debt for the carrying amount and estimated fair value of the Company's 1.75% Convertible Senior Notes due 2023 (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. The Company did not record any significant nonrecurring fair value measurements after initial recognition for the period ended June 30, 2019 . Gross unrealized holding gains and losses on available-for-sale debt securities were not material as of June 30, 2019. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory June 30, 2019 December 31, 2018 Properties for sale $ 52,118 $ 12,649 Properties not available for sale 9,370 2,328 Properties under improvement 24,166 7,717 Inventory $ 85,654 $ 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 June 30, 2019 and December 31, 2018 , lower of cost or net realizable value write-downs were $179 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 | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment A summary of property and equipment at June 30, 2019 and December 31, 2018 is as follows: Useful Lives (Years) June 30, 2019 December 31, 2018 Leasehold improvements Shorter of lease term or economic life $ 25,568 $ 19,285 Website and software development costs 2-3 23,220 19,948 Computer and office equipment 3 4,423 2,956 Software 3 595 595 Furniture 7 6,446 3,933 Property and equipment, gross 60,252 46,717 Accumulated depreciation and amortization (24,577 ) (21,530 ) Property and equipment, net $ 35,675 $ 25,187 Depreciation and amortization expense for property and equipment amounted to $2,049 and $1,777 for the three months ended June 30, 2019 and 2018 , respectively, and $3,565 and $3,658 for the six months ended June 30, 2019 and 2018 , respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The extent of the Company’s lease commitments consists 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 June 30, 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 June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost (a) Cost of revenue $ 2,091 $ 3,785 Operating lease cost (a) Operating expenses 855 1,710 Total lease cost $ 2,946 $ 5,495 (a) Includes lease expense of $1,489 for leases with initial terms of 12 months or less. Maturity of Lease Liabilities Operating Leases 2019, excluding the six months ended June 30, 2019 $ 6,412 2020 14,590 2021 14,117 2022 13,415 2023 12,539 Thereafter 27,403 Total lease payments $ 88,476 Less: Interest and other (a) (27,123 ) Present value of lease liabilities $ 61,353 (a) Interest and other consists of interest expense related to capitalized right of use lease liabilities of $9,302, maturities related to leases that have not yet commenced and leases with initial maturities of 12 months or less. Lease Term and Discount Rate June 30, 2019 Weighted average remaining operating lease term (years) 6.4 Weighted average discount rate for operating leases 4.4 % Supplemental Cash Flow Information Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,445 Right of use assets obtained in exchange for lease liabilities Operating leases $ 47,773 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 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 June 30, 2019 are as follows: June 30, 2019 Facility Leases (a) Other Commitments 2019, excluding the six months ended June 30, 2019 $ 6,412 $ 35,673 2020 14,590 2,412 2021 14,117 701 2022 13,415 1,138 2023 and thereafter 39,942 — Total minimum lease payments $ 88,476 $ 39,924 (a) The future minimum lease payments are presented on the same basis as the financial information presented in audited consolidated financial statements and notes for the year ended December 31, 2018 included in the 2018 Annual Report. |
Acquired Intangible Assets
Acquired Intangible Assets | 6 Months Ended |
Jun. 30, 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: June 30, 2019 December 31, 2018 Useful Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trade names 10 $ 1,040 $ (494 ) $ 546 $ 1,040 $ (442 ) $ 598 Developed technology 10 2,980 (1,415 ) 1,565 2,980 (1,266 ) 1,714 Customer relationships 10 860 (409 ) 451 860 (366 ) 494 $ 4,880 $ (2,318 ) $ 2,562 $ 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 and $244 for each of the three and six months ended June 30, 2019 and 2018 . Amortization expense of $2,440 will be recognized over the next five years, or $488 per year. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities The following table presents the detail of accrued liabilities as of the dates presented: June 30, 2019 December 31, 2018 Accrued compensation and benefits $ 33,265 $ 22,862 Miscellaneous accrued liabilities 24,158 7,975 Total accrued liabilities $ 57,423 $ 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 June 30, 2019 , which was a result of increased marketing spend and timing of those expenses. |
Other Payables
Other Payables | 6 Months Ended |
Jun. 30, 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: June 30, 2019 December 31, 2018 Customer deposits $ 17,797 $ 6,226 Miscellaneous payables 453 318 Total other payables $ 18,250 $ 6,544 |
Equity and Employee Stock Plans
Equity and Employee Stock Plans | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity and Employee Stock Plans | Equity and Employee Stock Plans Common Stock —At June 30, 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. Preferred Stock — As of June 30, 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. 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 initial public offering. 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. During the three and six months ended June 30, 2019, 262,110 shares of common stock were issued under the 2017 ESPP. The Company has reserved shares of common stock, on an as-converted basis, for future issuance as follows: June 30, 2019 December 31, 2018 Equity Incentive Plans Shares underlying outstanding stock options 8,411,868 9,435,349 Shares underlying outstanding restricted stock units 3,936,774 3,264,702 Shares available for future equity grants 8,562,903 5,068,013 Total shares reserved for issuance 20,911,545 17,768,064 2017 Employee Stock Purchase Plan Shares available for issuance on January 1, 2019 and 2018, respectively 2,890,973 2,414,688 Shares issued since January 1, 2019 and 2018, respectively (262,110 ) (425,228 ) Total shares available for future issuance 2,628,863 1,989,460 Stock Options— The following table summarizes activity for stock options for the six months ended June 30, 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 granted 150,000 27.50 Options exercised (1,099,599) 5.25 Options forfeited (71,588) 9.21 Options canceled (2,294) 8.36 Outstanding at June 30, 2019 8,411,868 6.99 5.82 93,834 Options exercisable at June 30, 2019 7,146,358 6.21 5.49 84,134 The grant date fair value of options to purchase common stock is recorded as stock-based compensation over the vesting period. As of June 30, 2019 , there was $5,267 of total unrecognized compensation cost related to options to purchase common stock, which is expected to be recognized over a weighted-average period of 1.39 years . On June 1, 2019, the Company granted stock options subject to performance conditions, with a target of 150,000 shares and a maximum 300,000 shares, to the Company's Chief Executive Officer. The options have an exercise price of $27.50 per share and have the same performance and vesting conditions as the 2019 PSUs. Restricted Stock Units— The following table summarizes activity for restricted stock units for the six months ended June 30, 2019 : Restricted Stock Units Weighted-Average Grant Date Fair Value Unvested outstanding at December 31, 2018 3,264,702 $ 19.68 Granted 1,238,075 17.54 Vested (366,915 ) 21.29 Forfeited or canceled (199,088 ) 20.32 Unvested outstanding at June 30, 2019 3,936,774 18.82 The grant date fair value of restricted stock units is recorded as stock-based compensation over the vesting period. As of June 30, 2019 , there was $67,730 of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted-average period of 3.15 years . During the three months ended June 30, 2019 , the Company granted 145,224 restricted stock units subject to performance conditions (the "2019 PSUs"). As of June 30, 2019 , there were outstanding 279,826 restricted stock units subject to performance conditions (the "PSUs") at 100% of the target level. During the six months ended June 30, 2019 , a net ($494) for share-based compensation expense was recognized for the PSUs, which includes (i) an adjustment of ($610) related to the PSUs granted in 2018 as the probability of achieving the performance conditions was determined to be not probable and (ii) a charge of $116 related to the 2019 PSUs. Compensation Cost —The following table details the Company's stock-based compensation (i) net of forfeitures, and the amount capitalized in internally developed software and (ii) includes changes to the probability of achieving outstanding performance-based equity awards, as included in the Company’s condensed consolidated statements of operations for the periods indicated below: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Cost of revenue $ 1,328 $ 1,392 $ 2,793 $ 2,691 Technology and development 2,685 1,726 5,341 3,200 Marketing 349 157 635 276 General and administrative 1,514 1,503 3,513 2,808 Total stock-based compensation $ 5,876 $ 4,778 $ 12,282 $ 8,975 |
Net Income (Loss) per Share
Net Income (Loss) per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Net Income (Loss) per Share Net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock 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) per share whenever doing so would be dilutive. The following table sets forth the calculation of basic and diluted net income (loss) per share during the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator Net income (loss) $ (12,625 ) $ 3,207 $ (79,804 ) $ (33,232 ) Denominator Weighted average shares: Basic 91,216,886 83,164,670 90,915,334 82,590,979 Dilutive shares from stock plans — 7,578,508 — — Dilutive 91,216,886 90,743,178 90,915,334 82,590,979 Net income (loss) per share Net income (loss) per share - basic $ (0.14 ) $ 0.04 $ (0.88 ) $ (0.40 ) Net income (loss) per share - diluted $ (0.14 ) $ 0.04 $ (0.88 ) $ (0.40 ) The following outstanding shares of common stock equivalents as of June 30, 2019 and 2018 were excluded from the computation of the diluted net income (loss) per share for the periods presented because their effect would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options 8,411,868 — 8,411,868 10,775,812 Restricted stock units 3,936,774 179,712 3,936,774 2,010,186 Employee stock purchase plan — — — — Total 12,348,642 179,712 12,348,642 12,785,998 There is no impact from the Notes on the Company's diluted net loss per share for the three and six months ended June 30, 2019 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the six months ended June 30, 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 six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Warehouse Credit Facilities —To provide capital for the mortgage loans that it originates, Redfin Mortgage, the Company's wholly owned mortgage origination subsidiary, utilizes warehouse credit facilities that are classified as current liabilities in the Company's condensed consolidated balance sheets. The following table summarizes these facilities as of the periods presented: Lender Borrowing Capacity as of June 30, 2019 Borrowings as of June 30, 2019 Borrowings as of December 31, 2018 Western Alliance Bank $ 30,000 $ 14,750 $ 1,141 Texas Capital Bank, N.A. 20,000 14,677 3,592 Total $ 50,000 $ 29,427 $ 4,733 Borrowings under the facility with Western Alliance Bank matures on August 14, 2019 and generally bear interest at a rate equal to the greater of (i) one-month LIBOR plus 2.75% or (ii) 3.50% . The agreement governing the facility requires Redfin Mortgage to maintain certain financial covenants. Redfin Mortgage failed to satisfy a financial covenant contained in the agreement as of June 30, 2019, but the lender has not enforced its remedy under the agreement of requiring Redfin Mortgage to repurchase all outstanding loans held by the lender. Redfin Corporation has guaranteed Redfin Mortgage’s obligations under the agreement. Borrowings under the facility with Texas Capital Bank, N.A. ("Texas Capital") matures on May 6, 2020 and generally bear interest at a rate equal to the greater of (i) the rate of interest accruing on the outstanding principal balance of the loan minus 0.5% or (ii) 3.5% . The agreement governing the facility requires Redfin Mortgage to maintain certain financial covenants. Redfin Mortgage failed to satisfy a financial covenant as of June 30, 2019, but the lender 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 the lender or Redfin Mortgage in any loan subject to the agreement. Redfin Corporation has guaranteed Redfin Mortgage’s obligations under the agreement. 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 June 30, 2019 , no conversion events have occurred. The Company 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: June 30, 2019 December 31, 2018 Principal $ 143,750 $ 143,750 Less: debt discount, net of amortization (23,964 ) (26,636 ) Less: debt issuance costs, net of amortization (3,169 ) (3,528 ) Net carrying amount of the Notes $ 116,617 $ 113,586 The total estimated fair value of the Notes as of June 30, 2019 and December 31, 2018 was approximately $137,820 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: Six Months Ended June 30, 2019 Amortization of debt discount $ 2,672 Amortization of debt issuance costs 359 Total amortization of debt issuance costs and accretion of equity portion 3,031 Contractual interest expense 1,258 Total interest expense related to the Notes $ 4,289 Effective interest rate of the liability component 7.25 % |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Secured Revolving Credit Facility — On July 26, 2019, RedfinNow Borrower LLC, an indirect wholly owned subsidiary of Redfin Corporation (the "Borrower"), entered into a Loan and Security Agreement (the “Loan Agreement”) with Goldman Sachs Bank USA, as administrative agent and sole initial lender (together with other parties that may become lenders from time to time, the "Lenders"). The Loan Agreement has an initial term of 18 months, which may be extended for an additional six months . Under the Loan Agreement, the Lenders may, at their sole option, finance a portion of the Borrower's costs to purchase qualified homes. The portion financed is based, in part, on how long the Borrower has owned the qualifying home. The Loan Agreement has a maximum borrowing capacity of $100,000 , and interest accrues at a rate of one-month LIBOR (subject to a floor of 0.50% ) plus 2.65% . The Borrower must repay all borrowings and accrued interest upon the termination of the Loan Agreement, and it has the option to repay the borrowings, and the related interest, with respect to a specific financed home upon the sale of such home. In certain situations involving a financed home remaining unsold after a certain time period or becoming ineligible for financing under the Loan Agreement, the Borrower may be obligated to repay all or a portion of the borrowings, and related interest, with respect to such home prior to the sale of such home. Borrowings under the Loan Agreement are secured by the Borrower's assets, including any financed homes. Furthermore, the holder of all of the equity interests of the Borrower has pledged such equity interests to the Lenders, and, in instances involving "bad acts," Redfin Corporation has guaranteed repayment of amounts owed under the facility, in some situations, and indemnification of certain expenses incurred, in other situations. The Loan Agreement includes customary representations and warranties, covenants (including financial covenants applicable to the Company), and provisions regarding events of default, the occurrence of which may accelerate repayment obligations under the Loan Agreement. Texas Capital Bank Warehouse Credit Facility — On July 30, 2019, Redfin Mortgage and Texas Capital agreed to increase the borrowing capacity under their facility to $24,500 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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 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 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 June 30, 2019 , the statements of comprehensive income (loss) and stockholders' equity for the three and six months ended June 30, 2019 and 2018 , and the statement of cash flows for the six months ended June 30, 2019 and 2018. The results for the three and six months ended June 30, 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 six months ended June 30, 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents —Cash equivalents consist primarily of money market instruments and U.S. treasury securities. The Company considers all highly liquid investments originally purchased by the Company with original maturities of three months or less at the date of purchase to be cash equivalents and classified as available-for-sale. |
Investments | Investments —The Company has two types of investments; available-for-sale investments that are available to support operational needs of the Company, which are reported on the balance sheet as short-term and long-term investments, and long-term equity investments accounted for under the cost method, which are reported in other non-current assets. Available-for-sale The Company's short-term and long-term investments consist primarily of U.S. treasury securities, all of which are classified as available-for-sale. Available-for-sale debt securities are recorded at fair value, and unrealized holding gains and losses are recorded as a component of accumulated other comprehensive income. Available-for-sale securities with maturities of one year or less and those identified by management at the time of purchase to be used to fund operations within one year are classified as short-term. All other available-for-sale securities are classified as long-term. The Company evaluates its available-for-sale securities, both ones classified as cash equivalents and as investments, for other-than-temporary impairment on a quarterly basis. Unrealized losses are charged against net earnings when a decline in fair value is determined to be other than temporary. The Company reviews factors to determine whether a loss is other than temporary, such as the length and extent of the fair value decline, the financial condition and near-term prospects of the issuer, and whether the Company has the intent to sell or will more likely than not be required to sell before the securities' anticipated recovery, which may be at maturity. Realized gains and losses are accounted for using the specific identification method. Purchases and sales are recorded on a trade date basis. There were no other than temporary impairments during the periods presented. Cost Method Investments In December 2018, the Company purchased an equity interest in a privately held company for approximately $2,000 which is classified as long-term. The investment is an equity security without a readily determinable fair value that is accounted for at cost minus any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The Company performs a qualitative assessment considering impairment indicators to evaluate whether the investment is impaired as of the end of each reporting period. |
Advertising and Advertising Production Costs | Advertising and Advertising Production Costs —The Company expenses advertising costs as they are incurred and production costs as of the first date the advertisement takes place. Advertising costs totaled $23,845 and $12,048 for the three months ended June 30, 2019 and 2018 , respectively, and $54,078 and $23,231 for the six months ended June 30, 2019 and 2018 , respectively, and are included in marketing expenses. Advertising production costs totaled $101 and $25 for the three months ended June 30, 2019 and 2018 , respectively, and $149 and $13 for the six months ended June 30, 2019 and 2018 , respectively, and are included in marketing expenses. |
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. In June 2016, the FASB issued authoritative guidance under ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), which modifies the measurement of credit losses on financial instruments. This guidance requires the use of an expected loss impairment model for instruments measured at amortized cost based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. For available-for-sale debt securities, an entity is required to recognize credit losses through an allowance for credit losses rather than as an impairment. The ASU is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The adoption of this guidance requires a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. 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) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Real estate services Brokerage revenue $ 145,399 $ 123,355 $ 226,713 $ 193,498 Partner revenue 7,447 7,503 12,023 12,285 Total real estate services revenue 152,846 130,858 238,736 205,783 Cost of revenue 103,616 85,337 184,399 153,501 Gross profit 49,230 45,521 54,337 52,282 Properties Revenue 39,908 8,986 61,281 12,038 Cost of revenue 40,906 9,088 63,898 12,430 Gross profit (998 ) (102 ) (2,617 ) (392 ) Other Revenue 5,281 2,798 8,329 4,715 Cost of revenue 5,167 3,004 8,948 5,695 Gross profit 114 (206 ) (619 ) (980 ) Intercompany eliminations Revenue (255 ) — (424 ) — Cost of revenue (255 ) — (424 ) — Gross profit — — — — Consolidated Revenue 197,780 142,642 307,922 222,536 Cost of revenue 149,434 97,429 256,821 171,626 Gross profit 48,346 45,213 51,101 50,910 Operating expenses 60,767 42,756 130,972 85,628 Interest income 1,913 729 4,229 1,307 Interest expense (2,153 ) — (4,290 ) — Other income, net 36 21 128 179 Net income (loss) $ (12,625 ) $ 3,207 $ (79,804 ) $ (33,232 ) |
Contract with Customer, Asset and Liability | The following table presents the detail of accrued revenue for the periods presented: Six Months Ended June 30, 2019 2018 Accrued revenue $ 38,902 $ 19,036 Less: Allowance for doubtful accounts (216 ) (134 ) Accrued revenue, net $ 38,686 $ 18,902 The following table presents the activity in the allowance for doubtful accounts for the period presented: Six Months Ended June 30, 2019 2018 Balance, beginning of period $ 166 $ 160 Charges 70 (2 ) Write-offs (20 ) (24 ) Balance, end of period $ 216 $ 134 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2019 and December 31, 2018 , related to the Company's financial instruments measured at fair value on a recurring basis, is set forth below, along with the balance sheet accounts they are classified within: Balance at June 30, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents Money market funds $ 195,996 $ 195,996 $ — $ — U.S. treasury securities 29,940 — 29,940 — Short-term investments U.S. treasury securities 35,365 — 35,365 — Loans held for sale 30,169 — 30,169 — Prepaid expenses and other current assets Forward sales commitments 25 — 25 — Interest rate lock commitments 712 — — 712 Total prepaid expenses and other current assets 737 — 25 712 Long-term investments U.S. treasury securities 34,954 — 34,954 — Total assets $ 327,161 $ 195,996 $ 130,453 $ 712 Liabilities Accrued liabilities Forward sales commitments $ 407 $ — $ 407 $ — Interest rate lock commitments 24 — — 24 Total liabilities $ 431 $ — $ 407 $ 24 Balance at December 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Cash equivalents Money market funds $ 425,776 $ 425,776 $ — $ — Loans held for sale 4,913 — 4,913 — Prepaid expenses and other current assets Interest rate lock commitments 254 — — 254 Total prepaid expenses and other current assets 254 — — 254 Total assets $ 430,943 $ 425,776 $ 4,913 $ 254 Liabilities Accrued liabilities Forward sales commitments $ 141 $ — $ 141 $ — Total liabilities $ 141 $ — $ 141 $ — |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | June 30, 2019 December 31, 2018 Properties for sale $ 52,118 $ 12,649 Properties not available for sale 9,370 2,328 Properties under improvement 24,166 7,717 Inventory $ 85,654 $ 22,694 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | A summary of property and equipment at June 30, 2019 and December 31, 2018 is as follows: Useful Lives (Years) June 30, 2019 December 31, 2018 Leasehold improvements Shorter of lease term or economic life $ 25,568 $ 19,285 Website and software development costs 2-3 23,220 19,948 Computer and office equipment 3 4,423 2,956 Software 3 595 595 Furniture 7 6,446 3,933 Property and equipment, gross 60,252 46,717 Accumulated depreciation and amortization (24,577 ) (21,530 ) Property and equipment, net $ 35,675 $ 25,187 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | Lease Cost Classification Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Operating lease cost (a) Cost of revenue $ 2,091 $ 3,785 Operating lease cost (a) Operating expenses 855 1,710 Total lease cost $ 2,946 $ 5,495 (a) Includes lease expense of $1,489 for leases with initial terms of 12 months or less. Lease Term and Discount Rate June 30, 2019 Weighted average remaining operating lease term (years) 6.4 Weighted average discount rate for operating leases 4.4 % Supplemental Cash Flow Information Six Months Ended June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 4,445 Right of use assets obtained in exchange for lease liabilities Operating leases $ 47,773 |
Lessee, Operating Lease, Liability, Maturity | Maturity of Lease Liabilities Operating Leases 2019, excluding the six months ended June 30, 2019 $ 6,412 2020 14,590 2021 14,117 2022 13,415 2023 12,539 Thereafter 27,403 Total lease payments $ 88,476 Less: Interest and other (a) (27,123 ) Present value of lease liabilities $ 61,353 (a) Interest and other consists of interest expense related to capitalized right of use lease liabilities of $9,302, maturities related to leases that have not yet commenced and leases with initial maturities of 12 months or less. June 30, 2019 are as follows: June 30, 2019 Facility Leases (a) Other Commitments 2019, excluding the six months ended June 30, 2019 $ 6,412 $ 35,673 2020 14,590 2,412 2021 14,117 701 2022 13,415 1,138 2023 and thereafter 39,942 — Total minimum lease payments $ 88,476 $ 39,924 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | Maturity of Lease Liabilities Operating Leases 2019, excluding the six months ended June 30, 2019 $ 6,412 2020 14,590 2021 14,117 2022 13,415 2023 12,539 Thereafter 27,403 Total lease payments $ 88,476 Less: Interest and other (a) (27,123 ) Present value of lease liabilities $ 61,353 (a) Interest and other consists of interest expense related to capitalized right of use lease liabilities of $9,302, maturities related to leases that have not yet commenced and leases with initial maturities of 12 months or less. June 30, 2019 are as follows: June 30, 2019 Facility Leases (a) Other Commitments 2019, excluding the six months ended June 30, 2019 $ 6,412 $ 35,673 2020 14,590 2,412 2021 14,117 701 2022 13,415 1,138 2023 and thereafter 39,942 — Total minimum lease payments $ 88,476 $ 39,924 |
Other Commitments | Future minimum payments due under these agreements as of June 30, 2019 are as follows: June 30, 2019 Facility Leases (a) Other Commitments 2019, excluding the six months ended June 30, 2019 $ 6,412 $ 35,673 2020 14,590 2,412 2021 14,117 701 2022 13,415 1,138 2023 and thereafter 39,942 — Total minimum lease payments $ 88,476 $ 39,924 (a) The future minimum lease payments are presented on the same basis as the financial information presented in audited consolidated financial statements and notes for the year ended December 31, 2018 included in the 2018 Annual Report. |
Acquired Intangible Assets (Tab
Acquired Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 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: June 30, 2019 December 31, 2018 Useful Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trade names 10 $ 1,040 $ (494 ) $ 546 $ 1,040 $ (442 ) $ 598 Developed technology 10 2,980 (1,415 ) 1,565 2,980 (1,266 ) 1,714 Customer relationships 10 860 (409 ) 451 860 (366 ) 494 $ 4,880 $ (2,318 ) $ 2,562 $ 4,880 $ (2,074 ) $ 2,806 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | The following table presents the detail of accrued liabilities as of the dates presented: June 30, 2019 December 31, 2018 Accrued compensation and benefits $ 33,265 $ 22,862 Miscellaneous accrued liabilities 24,158 7,975 Total accrued liabilities $ 57,423 $ 30,837 |
Other Payables (Tables)
Other Payables (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Other Payables | The following table presents the detail of other payables as of the dates presented: June 30, 2019 December 31, 2018 Customer deposits $ 17,797 $ 6,226 Miscellaneous payables 453 318 Total other payables $ 18,250 $ 6,544 |
Equity and Employee Stock Pla_2
Equity and Employee Stock Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [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: June 30, 2019 December 31, 2018 Equity Incentive Plans Shares underlying outstanding stock options 8,411,868 9,435,349 Shares underlying outstanding restricted stock units 3,936,774 3,264,702 Shares available for future equity grants 8,562,903 5,068,013 Total shares reserved for issuance 20,911,545 17,768,064 2017 Employee Stock Purchase Plan Shares available for issuance on January 1, 2019 and 2018, respectively 2,890,973 2,414,688 Shares issued since January 1, 2019 and 2018, respectively (262,110 ) (425,228 ) Total shares available for future issuance 2,628,863 1,989,460 |
Schedule of Stock Option Activity | The following table summarizes activity for stock options for the six months ended June 30, 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 granted 150,000 27.50 Options exercised (1,099,599) 5.25 Options forfeited (71,588) 9.21 Options canceled (2,294) 8.36 Outstanding at June 30, 2019 8,411,868 6.99 5.82 93,834 Options exercisable at June 30, 2019 7,146,358 6.21 5.49 84,134 |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes activity for restricted stock units for the six months ended June 30, 2019 : Restricted Stock Units Weighted-Average Grant Date Fair Value Unvested outstanding at December 31, 2018 3,264,702 $ 19.68 Granted 1,238,075 17.54 Vested (366,915 ) 21.29 Forfeited or canceled (199,088 ) 20.32 Unvested outstanding at June 30, 2019 3,936,774 18.82 |
Schedule of Allocation of Share-based Compensation Costs | The following table details the Company's stock-based compensation (i) net of forfeitures, and the amount capitalized in internally developed software and (ii) includes changes to the probability of achieving outstanding performance-based equity awards, as included in the Company’s condensed consolidated statements of operations for the periods indicated below: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Cost of revenue $ 1,328 $ 1,392 $ 2,793 $ 2,691 Technology and development 2,685 1,726 5,341 3,200 Marketing 349 157 635 276 General and administrative 1,514 1,503 3,513 2,808 Total stock-based compensation $ 5,876 $ 4,778 $ 12,282 $ 8,975 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 6 Months Ended |
Jun. 30, 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 income (loss) per share during the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator Net income (loss) $ (12,625 ) $ 3,207 $ (79,804 ) $ (33,232 ) Denominator Weighted average shares: Basic 91,216,886 83,164,670 90,915,334 82,590,979 Dilutive shares from stock plans — 7,578,508 — — Dilutive 91,216,886 90,743,178 90,915,334 82,590,979 Net income (loss) per share Net income (loss) per share - basic $ (0.14 ) $ 0.04 $ (0.88 ) $ (0.40 ) Net income (loss) per share - diluted $ (0.14 ) $ 0.04 $ (0.88 ) $ (0.40 ) |
Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares of common stock equivalents as of June 30, 2019 and 2018 were excluded from the computation of the diluted net income (loss) per share for the periods presented because their effect would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Stock options 8,411,868 — 8,411,868 10,775,812 Restricted stock units 3,936,774 179,712 3,936,774 2,010,186 Employee stock purchase plan — — — — Total 12,348,642 179,712 12,348,642 12,785,998 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The Notes consisted of the following: June 30, 2019 December 31, 2018 Principal $ 143,750 $ 143,750 Less: debt discount, net of amortization (23,964 ) (26,636 ) Less: debt issuance costs, net of amortization (3,169 ) (3,528 ) Net carrying amount of the Notes $ 116,617 $ 113,586 The total estimated fair value of the Notes as of June 30, 2019 and December 31, 2018 was approximately $137,820 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: Six Months Ended June 30, 2019 Amortization of debt discount $ 2,672 Amortization of debt issuance costs 359 Total amortization of debt issuance costs and accretion of equity portion 3,031 Contractual interest expense 1,258 Total interest expense related to the Notes $ 4,289 Effective interest rate of the liability component 7.25 % The following table summarizes these facilities as of the periods presented: Lender Borrowing Capacity as of June 30, 2019 Borrowings as of June 30, 2019 Borrowings as of December 31, 2018 Western Alliance Bank $ 30,000 $ 14,750 $ 1,141 Texas Capital Bank, N.A. 20,000 14,677 3,592 Total $ 50,000 $ 29,427 $ 4,733 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)investment_type | Jun. 30, 2018USD ($) | Dec. 31, 2018 | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Number of types of investments | investment_type | 2 | ||||||
Other-than-temporary impairment loss, debt securities, available-for-sale | $ 0 | ||||||
Payments to acquire equity securities | $ 2,000,000 | ||||||
Advertising expense | $ 23,845,000 | $ 12,048,000 | 54,078,000 | $ 23,231,000 | |||
Advertising production costs | 101,000 | $ 25,000 | 149,000 | $ 13,000 | |||
Operating lease, right-of-use asset | 44,830,000 | 44,830,000 | |||||
Operating lease, liability | $ 61,353,000 | $ 61,353,000 | |||||
Accounting Standards Update 2016-02 | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Operating lease, right-of-use asset | $ 33,953,000 | ||||||
Operating lease, liability | $ 49,395,000 | ||||||
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) | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | $ 197,780 | $ 142,642 | $ 307,922 | $ 222,536 |
Cost of revenue | 149,434 | 97,429 | 256,821 | 171,626 |
Gross profit | 48,346 | 45,213 | 51,101 | 50,910 |
Operating expenses | 60,767 | 42,756 | 130,972 | 85,628 |
Interest income | 1,913 | 729 | 4,229 | 1,307 |
Interest expense | (2,153) | 0 | (4,290) | 0 |
Other income, net | 36 | 21 | 128 | 179 |
Net income (loss) | (12,625) | 3,207 | (79,804) | (33,232) |
Operating Segments | Real estate services | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 152,846 | 130,858 | 238,736 | 205,783 |
Cost of revenue | 103,616 | 85,337 | 184,399 | 153,501 |
Gross profit | 49,230 | 45,521 | 54,337 | 52,282 |
Operating Segments | Properties | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 39,908 | 8,986 | 61,281 | 12,038 |
Cost of revenue | 40,906 | 9,088 | 63,898 | 12,430 |
Gross profit | (998) | (102) | (2,617) | (392) |
Other revenue | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 5,281 | 2,798 | 8,329 | 4,715 |
Cost of revenue | 5,167 | 3,004 | 8,948 | 5,695 |
Gross profit | 114 | (206) | (619) | (980) |
Intercompany eliminations | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | (255) | 0 | (424) | 0 |
Cost of revenue | (255) | 0 | (424) | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Brokerage revenue | Operating Segments | Real estate services | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 145,399 | 123,355 | 226,713 | 193,498 |
Partner revenue | Operating Segments | Real estate services | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | $ 7,447 | $ 7,503 | $ 12,023 | $ 12,285 |
Segment Reporting and Revenue_3
Segment Reporting and Revenue - Summary of Accrued Revenue (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Segment Reporting [Abstract] | ||||
Accrued revenue | $ 38,902 | $ 19,036 | ||
Less: Allowance for doubtful accounts | (216) | $ (166) | (134) | $ (160) |
Accrued revenue, net | $ 38,686 | $ 18,902 |
Segment Reporting and Revenue_4
Segment Reporting and Revenue - Activity in Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Allowance for doubtful accounts | ||
Balance, beginning of period | $ 166 | $ 160 |
Charges | 70 | (2) |
Write-offs | (20) | (24) |
Balance, end of period | $ 216 | $ 134 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jul. 23, 2018 |
Fair Value, Measurements, Recurring | |||
Assets | |||
Loans held for sale | $ 30,169 | $ 4,913 | |
Derivative asset | 737 | 254 | |
Total assets | 327,161 | 430,943 | |
Liabilities | |||
Total liabilities | 431 | 141 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets | |||
Loans held for sale | 0 | 0 | |
Derivative asset | 0 | 0 | |
Total assets | 195,996 | 425,776 | |
Liabilities | |||
Total liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Loans held for sale | 30,169 | 4,913 | |
Derivative asset | 25 | 0 | |
Total assets | 130,453 | 4,913 | |
Liabilities | |||
Total liabilities | 407 | 141 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Loans held for sale | 0 | 0 | |
Derivative asset | 712 | 254 | |
Total assets | 712 | 254 | |
Liabilities | |||
Total liabilities | 24 | 0 | |
U.S. treasury securities | Fair Value, Measurements, Recurring | |||
Assets | |||
U.S. treasury securities | 35,365 | ||
U.S. treasury securities | 34,954 | ||
U.S. treasury securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets | |||
U.S. treasury securities | 0 | ||
U.S. treasury securities | 0 | ||
U.S. treasury securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Assets | |||
U.S. treasury securities | 35,365 | ||
U.S. treasury securities | 34,954 | ||
U.S. treasury securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Assets | |||
U.S. treasury securities | 0 | ||
U.S. treasury securities | 0 | ||
Forward sales commitments | Fair Value, Measurements, Recurring | |||
Assets | |||
Derivative asset | 25 | ||
Liabilities | |||
Derivative liability | 407 | 141 | |
Forward sales commitments | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets | |||
Derivative asset | 0 | ||
Liabilities | |||
Derivative liability | 0 | 0 | |
Forward sales commitments | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Derivative asset | 25 | ||
Liabilities | |||
Derivative liability | 407 | 141 | |
Forward sales commitments | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Derivative asset | 0 | ||
Liabilities | |||
Derivative liability | 0 | 0 | |
Interest rate lock commitments | Fair Value, Measurements, Recurring | |||
Assets | |||
Derivative asset | 712 | 254 | |
Liabilities | |||
Derivative liability | 24 | ||
Interest rate lock commitments | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets | |||
Derivative asset | 0 | 0 | |
Liabilities | |||
Derivative liability | 0 | ||
Interest rate lock commitments | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Derivative asset | 0 | 0 | |
Liabilities | |||
Derivative liability | 0 | ||
Interest rate lock commitments | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Derivative asset | 712 | 254 | |
Liabilities | |||
Derivative liability | 24 | ||
Money market funds | Fair Value, Measurements, Recurring | |||
Assets | |||
Cash equivalents | 195,996 | 425,776 | |
Money market funds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets | |||
Cash equivalents | 195,996 | 425,776 | |
Money market funds | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Cash equivalents | 0 | 0 | |
Money market funds | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Cash equivalents | 0 | $ 0 | |
U.S. treasury securities | Fair Value, Measurements, Recurring | |||
Assets | |||
U.S. treasury securities | 29,940 | ||
U.S. treasury securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Assets | |||
U.S. treasury securities | 0 | ||
U.S. treasury securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Assets | |||
U.S. treasury securities | 29,940 | ||
U.S. treasury securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Assets | |||
U.S. treasury securities | $ 0 | ||
1.75% Convertible Senior Notes due 2023 | |||
Liabilities | |||
Stated interest rate | 1.75% |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Properties for sale | $ 52,118 | $ 12,649 |
Properties not available for sale | 9,370 | 2,328 |
Properties under improvement | 24,166 | 7,717 |
Inventory | 85,654 | 22,694 |
Lower of cost or net realizable value write-downs | $ 179 | $ 190 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 60,252 | $ 46,717 |
Accumulated depreciation and amortization | (24,577) | (21,530) |
Property and equipment, net | 35,675 | 25,187 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 25,568 | 19,285 |
Website and software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 23,220 | 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 | $ 4,423 | 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 | $ 6,446 | $ 3,933 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation and Amortization | $ 2,049 | $ 1,777 | $ 3,565 | $ 3,658 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Jun. 30, 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) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Total lease cost | $ 2,946 | $ 5,495 |
Short-term lease cost | 1,489 | |
Cost of revenue | ||
Lessee, Lease, Description [Line Items] | ||
Total lease cost | 2,091 | 3,785 |
Operating expenses | ||
Lessee, Lease, Description [Line Items] | ||
Total lease cost | $ 855 | $ 1,710 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019, excluding the six months ended June 30, 2019 | $ 6,412 |
2020 | 14,590 |
2021 | 14,117 |
2022 | 13,415 |
2023 | 12,539 |
Thereafter | 27,403 |
Total lease payments | 88,476 |
Less: Interest and other | (27,123) |
Present value of lease liabilities | $ 61,353 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted average remaining operating lease term (years) | 6 years 4 months 24 days |
Weighted average discount rate for operating leases | 4.40% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 4,445 |
Right of use assets obtained in exchange for lease liabilities, operating leases | $ 47,773 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Jun. 30, 2019 |
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 | Jun. 30, 2019USD ($) |
Facility Leases (a) | |
2019, excluding the six months ended June 30, 2019 | $ 6,412 |
2020 | 14,590 |
2021 | 14,117 |
2022 | 13,415 |
2023 and thereafter | 39,942 |
Total lease payments | 88,476 |
Other Commitments | |
2019 | 35,673 |
2020 | 2,412 |
2021 | 701 |
2022 | 1,138 |
2023 and thereafter | 0 |
Total minimum lease payments | $ 39,924 |
Acquired Intangible Assets - Sc
Acquired Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 4,880 | $ 4,880 |
Accumulated Amortization | (2,318) | (2,074) |
Net | $ 2,562 | 2,806 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives (Years) | 10 years | |
Gross | $ 1,040 | 1,040 |
Accumulated Amortization | (494) | (442) |
Net | $ 546 | 598 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives (Years) | 10 years | |
Gross | $ 2,980 | 2,980 |
Accumulated Amortization | (1,415) | (1,266) |
Net | $ 1,565 | 1,714 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Lives (Years) | 10 years | |
Gross | $ 860 | 860 |
Accumulated Amortization | (409) | (366) |
Net | $ 451 | $ 494 |
Acquired Intangible Assets - Na
Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization | $ 122 | $ 122 | $ 244 | $ 244 |
2019 | 488 | 488 | ||
2020 | 488 | 488 | ||
2021 | 488 | 488 | ||
2022 | 488 | 488 | ||
2023 | 488 | 488 | ||
Net | $ 2,440 | $ 2,440 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 33,265 | $ 22,862 |
Miscellaneous accrued liabilities | 24,158 | 7,975 |
Total accrued liabilities | $ 57,423 | $ 30,837 |
Other Payables (Details)
Other Payables (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Customer deposits | $ 17,797 | $ 6,226 |
Miscellaneous payables | 453 | 318 |
Total other payables | $ 18,250 | $ 6,544 |
Equity and Employee Stock Pla_3
Equity and Employee Stock Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 01, 2019 | Jul. 27, 2017 | Jul. 26, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 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 | 500,000,000 | |||||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | |||||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | |||||
Unrecognized stock-based compensation, options | $ 5,267 | $ 5,267 | ||||||
Options granted (in shares) | 150,000 | |||||||
Options granted (in dollars per share) | $ 27.50 | |||||||
Share-based payment expense | $ 5,876 | $ 4,778 | $ 12,282 | $ 8,975 | ||||
Equity Incentive Plans | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved (in shares) | 7,898,159 | 20,911,545 | 20,911,545 | 17,768,064 | ||||
Percentage of common stock, outstanding | 5.00% | |||||||
Restricted stock units outstanding (in shares) | 3,936,774 | 3,936,774 | 3,264,702 | |||||
2017 Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved (in shares) | 2,628,863 | 2,628,863 | 1,989,460 | |||||
Shares issued under ESPP (in shares) | 262,110 | 262,110 | ||||||
Employee stock purchase plan shares | 2004 Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved (in shares) | 0 | 0 | ||||||
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 20 days | |||||||
Restricted stock units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Unrecognized compensation expense, period for recognition | 3 years 1 month 24 days | |||||||
Unrecognized stock-based compensation | $ 67,730 | $ 67,730 | ||||||
Restricted stock units granted (in shares) | 1,238,075 | |||||||
Restricted stock units outstanding (in shares) | 3,936,774 | 3,936,774 | 3,264,702 | |||||
Performance RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock units granted (in shares) | 145,224 | |||||||
Number of restricted stock units outstanding (in shares) | 279,826 | 279,826 | ||||||
Achievement percentage of performance conditions | 100.00% | |||||||
Share-based payment expense | $ (494) | |||||||
Chief Executive Officer | Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options granted (in shares) | 150,000 | |||||||
Options granted (in dollars per share) | $ 27.50 | |||||||
Maximum | Chief Executive Officer | Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options granted (in shares) | 300,000 | |||||||
January To December 2019 Awards | Performance RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based payment expense | (610) | |||||||
January To June 2019 Awards | Performance RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based payment expense | $ 116 |
Equity and Employee Stock Pla_4
Equity and Employee Stock Plans - Summary of Common Stock Reserved for Future Issuance (in shares) (Details) - shares | Jun. 30, 2019 | Dec. 31, 2018 | Jul. 26, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares underlying outstanding stock options (in shares) | 8,411,868 | 9,435,349 | |
Equity Incentive Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares underlying outstanding stock options (in shares) | 8,411,868 | 9,435,349 | |
Shares underlying outstanding restricted stock units (in shares) | 3,936,774 | 3,264,702 | |
Shares available for future equity grants (in shares) | 8,562,903 | 5,068,013 | |
Common stock reserved (in shares) | 20,911,545 | 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 issuance 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) | (262,110) | (425,228) | |
Common stock reserved (in shares) | 2,628,863 | 1,989,460 |
Equity and Employee Stock Pla_5
Equity and Employee Stock Plans - Schedule of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | |
Number Of Options | ||
Outstanding, beginning balance (in shares) | shares | 9,435,349 | |
Options granted (in shares) | shares | 150,000 | |
Options exercised (in shares) | shares | (1,099,599) | |
Options forfeited (in shares) | shares | (71,588) | |
Options canceled (in shares) | shares | (2,294) | |
Outstanding, ending balance (in shares) | shares | 8,411,868 | 9,435,349 |
Options exercisable at period end (in shares) | shares | 7,146,358 | |
Weighted- Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 6.48 | |
Options granted (in dollars per share) | $ / shares | 27.50 | |
Options exercised (in dollars per share) | $ / shares | 5.25 | |
Options forfeited (in dollars per share) | $ / shares | 9.21 | |
Options canceled (in dollars per share) | $ / shares | 8.36 | |
Outstanding, ending balance (in dollars per share) | $ / shares | 6.99 | $ 6.48 |
Options exercisable at period end (in dollars per share) | $ / shares | $ 6.21 | |
Weighted-Average Remaining Contractual Life (Years) | ||
Weighted average remaining contractual life outstanding | 5 years 9 months 25 days | 6 years 21 days |
Weighted average remaining contractual life exercisable | 5 years 5 months 26 days | |
Aggregate Intrinsic Value | ||
Options outstanding, Aggregate intrinsic value | $ | $ 93,834 | $ 74,669 |
Options exercisable, Aggregate intrinsic value | $ | $ 84,134 |
Equity and Employee Stock Pla_6
Equity and Employee Stock Plans - Schedule of Restricted Stock Unit Activity (Details) - Restricted stock units | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Restricted Stock Units | |
Unvested outstanding at beginning of period (in shares) | shares | 3,264,702 |
Granted (in shares) | shares | 1,238,075 |
Vested (in shares) | shares | (366,915) |
Forfeited or canceled (in shares) | shares | (199,088) |
Unvested outstanding at end of period (in shares) | shares | 3,936,774 |
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 | 17.54 |
Vested (in dollars per share) | $ / shares | 21.29 |
Forfeited or canceled (in dollars per share) | $ / shares | 20.32 |
Unvested outstanding at end of period (in dollars per share) | $ / shares | $ 18.82 |
Equity and Employee Stock Pla_7
Equity and Employee Stock Plans - Allocation of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 5,876 | $ 4,778 | $ 12,282 | $ 8,975 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 1,328 | 1,392 | 2,793 | 2,691 |
Technology and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 2,685 | 1,726 | 5,341 | 3,200 |
Marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 349 | 157 | 635 | 276 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 1,514 | $ 1,503 | $ 3,513 | $ 2,808 |
Net Income (Loss) per Share - C
Net Income (Loss) per Share - Computation of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator | ||||
Net income (loss) | $ (12,625) | $ 3,207 | $ (79,804) | $ (33,232) |
Weighted average shares: | ||||
Basic (in shares) | 91,216,886 | 83,164,670 | 90,915,334 | 82,590,979 |
Dilutive shares from stock plans (in shares) | 0 | 7,578,508 | 0 | 0 |
Dilutive (in shares) | 91,216,886 | 90,743,178 | 90,915,334 | 82,590,979 |
Net income (loss) per share | ||||
Net income (loss) per share - basic (in dollars per share) | $ (0.14) | $ 0.04 | $ (0.88) | $ (0.40) |
Net income (loss) per share - diluted (in dollars per share) | $ (0.14) | $ 0.04 | $ (0.88) | $ (0.40) |
Net Income (Loss) per Share - S
Net Income (Loss) per Share - Summary of Anti-dilutive Stock Equivalents (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 12,348,642 | 179,712 | 12,348,642 | 12,785,998 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 8,411,868 | 0 | 8,411,868 | 10,775,812 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 3,936,774 | 179,712 | 3,936,774 | 2,010,186 |
Employee stock purchase plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from earnings per share (in shares) | 0 | 0 | 0 | 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 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 - Warehouse Lines Of Credi
Debt - Warehouse Lines Of Credit (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Borrowings under warehouse credit facilities | $ 29,427,000 | $ 4,733,000 |
Warehouse Agreement Borrowings | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity as of June 30, 2019 | 50,000,000 | |
Borrowings under warehouse credit facilities | 29,427,000 | 4,733,000 |
Western Alliance Bank | Warehouse Agreement Borrowings | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity as of June 30, 2019 | 30,000,000 | |
Borrowings under warehouse credit facilities | 14,750,000 | 1,141,000 |
Texas Capital Bank, N.A. | Warehouse Agreement Borrowings | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity as of June 30, 2019 | 20,000,000 | |
Borrowings under warehouse credit facilities | $ 14,677,000 | $ 3,592,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2018 | Jul. 23, 2018 | |
1.75% Convertible Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 1.75% | ||
Aggregated principal amount | $ 143,750,000 | ||
Significant Other Observable Inputs (Level 2) | 1.75% Convertible Senior Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Debt instrument, fair value | $ 137,820,000 | $ 117,875,000 | |
Western Alliance Bank | Warehouse Agreement Borrowings | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.50% | ||
Western Alliance Bank | Warehouse Agreement Borrowings | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.75% | ||
Texas Capital Bank, N.A. | Warehouse Agreement Borrowings | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.50% | ||
Decrease in rate of interest accruing on outstanding principal | 0.50% |
Debt - Components of The Notes
Debt - Components of The Notes (Details) - 1.75% Convertible Senior Notes due 2023 - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Principal | $ 143,750 | $ 143,750 |
Less: debt discount, net of amortization | (23,964) | (26,636) |
Less: debt issuance costs, net of amortization | (3,169) | (3,528) |
Net carrying amount of the Notes | $ 116,617 | $ 113,586 |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | ||||
Total amortization of debt issuance costs and accretion of equity portion | $ 3,031 | $ 0 | ||
Total interest expense related to the Notes | $ 2,153 | $ 0 | $ 4,290 | $ 0 |
1.75% Convertible Senior Notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Amortization of debt discount | 2,672 | |||
Amortization of debt issuance costs | 359 | |||
Total amortization of debt issuance costs and accretion of equity portion | 3,031 | |||
Contractual interest expense | 1,258 | |||
Total interest expense related to the Notes | $ 4,289 | |||
Effective interest rate of the liability component | 7.25% | 7.25% |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jul. 26, 2019 | Jul. 30, 2019 | Jun. 30, 2019 |
Warehouse Agreement Borrowings | |||
Subsequent Event [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | ||
Warehouse Agreement Borrowings | Texas Capital Bank, N.A. | |||
Subsequent Event [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 20,000,000 | ||
Warehouse Agreement Borrowings | Texas Capital Bank, N.A. | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 24,500,000 | ||
Secured Debt [Member] | Revolving Credit Facility [Member] | Loan Agreement | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt instrument, term | 18 months | ||
Debt instrument, optional extension term | 6 months | ||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | ||
Secured Debt [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) | Loan Agreement | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt Instrument, Floor Rate of Basis Spread On Variable Rate | 0.50% | ||
Debt instrument, basis spread on variable rate | 2.65% |