Redfin Corporation and Subsidiaries
Segment Financial Information
(in thousands, unaudited)
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Real estate services | Properties | Rentals | Mortgage | Other | Corporate Overhead and Intercompany Eliminations | Total | |||||||||||||||||||||||||||||||||||
Revenue | $ | 177,487 | $ | 379,753 | $ | 38,044 | $ | 2,917 | $ | 4,368 | $ | (5,223) | $ | 597,346 | |||||||||||||||||||||||||||
Cost of revenue | 153,784 | 358,866 | 7,193 | 5,517 | 4,671 | (5,223) | 524,808 | ||||||||||||||||||||||||||||||||||
Gross profit | 23,703 | 20,887 | 30,851 | (2,600) | (303) | — | 72,538 | ||||||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||||||
Technology and development | 26,739 | 4,119 | 14,282 | 2,347 | 1,036 | 1,117 | 49,640 | ||||||||||||||||||||||||||||||||||
Marketing | 30,844 | 1,153 | 11,042 | 28 | 53 | 222 | 43,342 | ||||||||||||||||||||||||||||||||||
General and administrative | 22,992 | 2,825 | 24,192 | 1,524 | 712 | 6,721 | 58,966 | ||||||||||||||||||||||||||||||||||
Restructuring and reorganization(5) | — | — | — | — | — | 5,710 | 5,710 | ||||||||||||||||||||||||||||||||||
Total operating expenses | 80,575 | 8,097 | 49,516 | 3,899 | 1,801 | 13,770 | 157,658 | ||||||||||||||||||||||||||||||||||
Income (loss) from operations | (56,872) | 12,790 | (18,665) | (6,499) | (2,104) | (13,770) | (85,120) | ||||||||||||||||||||||||||||||||||
Interest income, interest expense, income tax expense, and other expense, net | — | (1,624) | 469 | 1 | 1 | (4,533) | (5,686) | ||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (56,872) | $ | 11,166 | $ | (18,196) | $ | (6,498) | $ | (2,103) | $ | (18,303) | $ | (90,806) |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Real estate services | Properties | Rentals | Mortgage | Other | Corporate Overhead and Intercompany Eliminations | Total | |||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (56,872) | $ | 11,166 | $ | (18,196) | $ | (6,498) | $ | (2,103) | $ | (18,303) | $ | (90,806) | |||||||||||||||||||||||||||
Interest income(1) | — | (25) | — | (318) | (1) | (194) | (538) | ||||||||||||||||||||||||||||||||||
Interest expense(2) | — | 1,649 | — | 277 | — | 2,212 | 4,138 | ||||||||||||||||||||||||||||||||||
Income tax expense | — | — | (203) | — | — | 337 | 134 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | 4,018 | 537 | 9,356 | 302 | 255 | 345 | 14,813 | ||||||||||||||||||||||||||||||||||
Stock-based compensation(3) | 10,140 | 1,537 | 2,240 | 601 | 369 | 1,901 | 16,788 | ||||||||||||||||||||||||||||||||||
Acquisition-related costs(4) | — | — | — | — | — | 917 | 917 | ||||||||||||||||||||||||||||||||||
Restructuring and reorganization(5) | — | — | — | — | — | 5,710 | 5,710 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (42,714) | $ | 14,864 | $ | (6,803) | $ | (5,636) | $ | (1,480) | $ | (7,075) | $ | (48,844) |
(1) Interest income includes $0.3 million of interest income related to originated mortgage loans for the three months ended March 31, 2022.
(2) Interest expense includes $0.3 million of interest expense related to our warehouse credit facilities for the three months ended March 31, 2022.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention for our mortgage and rentals segments due to the restructuring and reorganization activities from our acquisitions of Bay Equity and RentPath, respectively.
1
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Real estate services | Properties | Rentals | Mortgage | Other | Corporate Overhead and Intercompany Eliminations | Total | |||||||||||||||||||||||||||||||||||
Revenue | $ | 224,732 | $ | 377,065 | $ | 38,923 | $ | 3,996 | $ | 3,347 | $ | (5,006) | $ | 643,057 | |||||||||||||||||||||||||||
Cost of revenue | 149,529 | 373,105 | 6,774 | 6,690 | 3,941 | (5,006) | 535,033 | ||||||||||||||||||||||||||||||||||
Gross profit | 75,203 | 3,960 | 32,149 | (2,694) | (594) | — | 108,024 | ||||||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||||||
Technology and development | 20,727 | 3,724 | 13,876 | 2,582 | 990 | 1,995 | 43,894 | ||||||||||||||||||||||||||||||||||
Marketing | 11,923 | 466 | 9,450 | 149 | 104 | 305 | 22,397 | ||||||||||||||||||||||||||||||||||
General and administrative | 23,842 | 2,828 | 25,530 | 2,620 | 823 | 11,319 | 66,962 | ||||||||||||||||||||||||||||||||||
Total operating expenses | 56,492 | 7,018 | 48,856 | 5,351 | 1,917 | 13,619 | 133,253 | ||||||||||||||||||||||||||||||||||
Income (loss) from operations | 18,711 | (3,058) | (16,707) | (8,045) | (2,511) | (13,619) | (25,229) | ||||||||||||||||||||||||||||||||||
Interest income, interest expense, income tax expense, and other expense, net | — | (1,723) | 2,777 | 1 | 1 | (2,829) | (1,773) | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 18,711 | $ | (4,781) | $ | (13,930) | $ | (8,044) | $ | (2,510) | $ | (16,448) | $ | (27,002) |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Real estate services | Properties | Rentals | Mortgage | Other | Corporate Overhead and Intercompany Eliminations | Total | |||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 18,711 | $ | (4,781) | $ | (13,930) | $ | (8,044) | $ | (2,510) | $ | (16,448) | $ | (27,002) | |||||||||||||||||||||||||||
Interest income(1) | — | (2) | — | (424) | (1) | (159) | (586) | ||||||||||||||||||||||||||||||||||
Interest expense(2) | — | 1,725 | — | 431 | — | 2,214 | 4,370 | ||||||||||||||||||||||||||||||||||
Income tax expense | — | — | (2,177) | — | — | 1,433 | (744) | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | 3,583 | 554 | 9,307 | 387 | 247 | 525 | 14,603 | ||||||||||||||||||||||||||||||||||
Stock-based compensation(3) | 8,963 | 1,492 | 994 | 820 | 348 | 2,669 | 15,286 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 31,257 | $ | (1,012) | $ | (5,806) | $ | (6,830) | $ | (1,916) | $ | (9,766) | $ | 5,927 |
(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended December 31, 2021.
(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended December 31, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
2
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Real estate services | Properties | Rentals | Mortgage | Other | Corporate Overhead and Intercompany Eliminations | Total | |||||||||||||||||||||||||||||||||||
Revenue | $ | 257,795 | $ | 238,417 | $ | 40,406 | $ | 5,013 | $ | 3,193 | $ | (4,750) | $ | 540,074 | |||||||||||||||||||||||||||
Cost of revenue | 161,449 | 238,397 | 7,395 | 6,705 | 3,576 | (4,750) | 412,772 | ||||||||||||||||||||||||||||||||||
Gross profit | 96,346 | 20 | 33,011 | (1,692) | (383) | — | 127,302 | ||||||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||||||
Technology and development | 20,732 | 3,602 | 13,849 | 2,910 | 586 | 1,979 | 43,658 | ||||||||||||||||||||||||||||||||||
Marketing | 33,894 | 645 | 14,113 | 149 | 42 | 300 | 49,143 | ||||||||||||||||||||||||||||||||||
General and administrative | 18,383 | 2,258 | 23,264 | 2,334 | 533 | 7,623 | 54,395 | ||||||||||||||||||||||||||||||||||
Total operating expenses | 73,009 | 6,505 | 51,226 | 5,393 | 1,161 | 9,902 | 147,196 | ||||||||||||||||||||||||||||||||||
Income (loss) from operations | 23,337 | (6,485) | (18,215) | (7,085) | (1,544) | (9,902) | (19,894) | ||||||||||||||||||||||||||||||||||
Interest income, interest expense, income tax expense, and other expense, net | (56) | (1,456) | 311 | 1 | 1 | 2,144 | 945 | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 23,281 | $ | (7,941) | $ | (17,904) | $ | (7,084) | $ | (1,543) | $ | (7,758) | $ | (18,949) |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Real estate services | Properties | Rentals | Mortgage | Other | Corporate Overhead and Intercompany Eliminations | Total | |||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 23,281 | $ | (7,941) | $ | (17,904) | $ | (7,084) | $ | (1,543) | $ | (7,758) | $ | (18,949) | |||||||||||||||||||||||||||
Interest income(1) | — | (1) | — | (402) | (1) | (176) | (580) | ||||||||||||||||||||||||||||||||||
Interest expense(2) | — | 1,456 | — | 399 | — | 2,216 | 4,071 | ||||||||||||||||||||||||||||||||||
Income tax expense | — | — | (311) | — | — | — | (311) | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | 3,470 | 530 | 9,189 | 427 | 181 | 488 | 14,285 | ||||||||||||||||||||||||||||||||||
Stock-based compensation(3) | 8,138 | 1,312 | 143 | 721 | 167 | 2,629 | 13,110 | ||||||||||||||||||||||||||||||||||
Acquisition-related costs(4) | — | — | — | — | — | 202 | 202 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 34,889 | $ | (4,644) | $ | (8,883) | $ | (5,939) | $ | (1,196) | $ | (2,399) | $ | 11,828 |
(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended September 30, 2021.
(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended September 30, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
3
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Real estate services | Properties | Rentals | Mortgage | Other | Corporate Overhead and Intercompany Eliminations | Total | |||||||||||||||||||||||||||||||||||
Revenue | $ | 252,199 | $ | 172,445 | $ | 42,548 | $ | 5,099 | $ | 3,422 | $ | (4,398) | $ | 471,315 | |||||||||||||||||||||||||||
Cost of revenue | 164,125 | 167,420 | 7,570 | 6,832 | 3,630 | (4,398) | 345,179 | ||||||||||||||||||||||||||||||||||
Gross profit | 88,074 | 5,025 | 34,978 | (1,733) | (208) | — | 126,136 | ||||||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||||||
Technology and development | 20,010 | 3,080 | 13,568 | 2,536 | 479 | 1,815 | 41,488 | ||||||||||||||||||||||||||||||||||
Marketing | 41,746 | 572 | 12,607 | 130 | 30 | 313 | 55,398 | ||||||||||||||||||||||||||||||||||
General and administrative | 18,498 | 2,078 | 23,116 | 1,927 | 416 | 13,532 | 59,567 | ||||||||||||||||||||||||||||||||||
Total operating expenses | 80,254 | 5,730 | 49,291 | 4,593 | 925 | 15,660 | 156,453 | ||||||||||||||||||||||||||||||||||
Income (loss) from operations | 7,820 | (705) | (14,313) | (6,326) | (1,133) | (15,660) | (30,317) | ||||||||||||||||||||||||||||||||||
Interest income, interest expense, income tax expense, and other expense, net | (3) | (662) | 212 | 1 | 1 | 2,890 | 2,439 | ||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 7,817 | $ | (1,367) | $ | (14,101) | $ | (6,325) | $ | (1,132) | $ | (12,770) | $ | (27,878) |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
Real estate services | Properties | Rentals | Mortgage | Other | Corporate Overhead and Intercompany Eliminations | Total | |||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 7,817 | $ | (1,367) | $ | (14,101) | $ | (6,325) | $ | (1,132) | $ | (12,770) | $ | (27,878) | |||||||||||||||||||||||||||
Interest income(1) | — | (2) | — | (414) | (1) | (131) | (548) | ||||||||||||||||||||||||||||||||||
Interest expense(2) | — | 664 | — | 407 | — | 2,149 | 3,220 | ||||||||||||||||||||||||||||||||||
Income tax expense | — | — | (212) | — | — | (4,840) | (5,052) | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | 3,180 | 412 | 9,110 | 313 | 167 | 495 | 13,677 | ||||||||||||||||||||||||||||||||||
Stock-based compensation(3) | 9,042 | 1,239 | 113 | 770 | 191 | 2,388 | 13,743 | ||||||||||||||||||||||||||||||||||
Acquisition-related costs(4) | — | — | — | — | — | 5,616 | 5,616 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 20,039 | $ | 946 | $ | (5,090) | $ | (5,249) | $ | (775) | $ | (7,093) | $ | 2,778 |
(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended June 30, 2021.
(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
4
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Real estate services | Properties | Rentals | Mortgage | Other | Corporate Overhead and Intercompany Eliminations | Total | |||||||||||||||||||||||||||||||||||
Revenue | $ | 168,609 | $ | 92,726 | $ | — | $ | 5,711 | $ | 3,646 | $ | (2,373) | $ | 268,319 | |||||||||||||||||||||||||||
Cost of revenue | 128,216 | 91,130 | — | 5,869 | 3,119 | (2,373) | 225,961 | ||||||||||||||||||||||||||||||||||
Gross profit | 40,393 | 1,596 | — | (158) | 527 | — | 42,358 | ||||||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||||||
Technology and development | 20,119 | 2,830 | 199 | 2,367 | 473 | 1,690 | 27,678 | ||||||||||||||||||||||||||||||||||
Marketing | 11,182 | 207 | 5 | 134 | 34 | 240 | 11,802 | ||||||||||||||||||||||||||||||||||
General and administrative | 23,932 | 2,429 | 33 | 1,426 | 517 | 9,054 | 37,391 | ||||||||||||||||||||||||||||||||||
Total operating expenses | 55,233 | 5,466 | 237 | 3,927 | 1,024 | 10,984 | 76,871 | ||||||||||||||||||||||||||||||||||
Loss from operations | (14,840) | (3,870) | (237) | (4,085) | (497) | (10,984) | (34,513) | ||||||||||||||||||||||||||||||||||
Interest income, interest expense, income tax expense, and other expense, net | (28) | (420) | — | 1 | 1 | (825) | (1,271) | ||||||||||||||||||||||||||||||||||
Net loss | $ | (14,868) | $ | (4,290) | $ | (237) | $ | (4,084) | $ | (496) | $ | (11,809) | $ | (35,784) |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Real estate services | Properties | Rentals | Mortgage | Other | Corporate Overhead and Intercompany Eliminations | Total | |||||||||||||||||||||||||||||||||||
Net loss | $ | (14,868) | $ | (4,290) | $ | (237) | $ | (4,084) | $ | (496) | $ | (11,809) | $ | (35,784) | |||||||||||||||||||||||||||
Interest income(1) | — | (5) | — | (357) | (1) | (152) | (515) | ||||||||||||||||||||||||||||||||||
Interest expense(2) | — | 425 | — | 429 | — | 913 | 1,767 | ||||||||||||||||||||||||||||||||||
Income tax expense | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Depreciation and amortization | 3,049 | 391 | 1 | 279 | 167 | 454 | 4,341 | ||||||||||||||||||||||||||||||||||
Stock-based compensation(3) | 8,518 | 1,135 | 61 | 674 | 150 | 2,045 | 12,583 | ||||||||||||||||||||||||||||||||||
Acquisition-related costs(4) | — | — | — | — | — | 2,107 | 2,107 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (3,301) | $ | (2,344) | $ | (175) | $ | (3,059) | $ | (180) | $ | (6,442) | $ | (15,501) |
(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended March 31, 2021.
(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended March 31, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
5