Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 21, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 576-8610 | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | ||
Trading Symbol | RDFN | ||
Security Exchange Name | NASDAQ | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,353,672,542 | ||
Entity Common Stock, Shares Outstanding | 119,241,526 | ||
Documents Incorporated by Reference | The portions of the registrant's proxy statement to be filed in connection with the registrant’s 2023 Annual Meeting of Stockholders that are responsive to the disclosure required by Part III of Form 10-K are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0001382821 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Seattle, Washington |
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 149,759 | $ 232,200 |
Restricted cash | 1,241 | 2,406 |
Short-term investments | 41,952 | 122,259 |
Accounts receivable, net of allowances for credit losses of $3,234 and $2,223 | 51,738 | 46,375 |
Loans held for sale | 159,587 | 199,604 |
Prepaid expenses | 33,296 | 34,006 |
Other current assets | 7,472 | 7,449 |
Total current assets | 445,045 | 776,458 |
Property and equipment, net | 46,431 | 54,939 |
Right-of-use assets, net | 31,763 | 40,889 |
Mortgage servicing rights, at fair value | 32,171 | 36,261 |
Long-term investments | 3,149 | 29,480 |
Goodwill | 461,349 | 461,349 |
Intangible assets, net | 123,284 | 162,272 |
Other assets, noncurrent | 10,456 | 11,247 |
Total assets | 1,153,648 | 1,574,204 |
Current liabilities | ||
Accounts payable | 10,507 | 11,065 |
Accrued and other liabilities | 90,360 | 106,763 |
Warehouse credit facilities | 151,964 | 190,509 |
Convertible senior notes, net | 0 | 23,431 |
Lease liabilities | 15,609 | 18,560 |
Total current liabilities | 268,440 | 354,639 |
Lease liabilities, noncurrent | 29,084 | 36,906 |
Convertible senior notes, net, noncurrent | 688,737 | 1,078,157 |
Term loan | 124,416 | 0 |
Deferred tax liabilities | 264 | 243 |
Total liabilities | 1,110,941 | 1,470,337 |
Commitments and contingencies (Note 7) | ||
Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 and 40,000 shares issued and outstanding at December 31, 2023 and 2022, respectively | 39,959 | 39,914 |
Stockholders’ equity | ||
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 117,372,171 and 109,696,178 shares issued and outstanding at December 31, 2023 and 2022, respectively | 117 | 110 |
Additional paid-in capital | 826,146 | 757,951 |
Accumulated other comprehensive loss | (182) | (801) |
Accumulated deficit | (823,333) | (693,307) |
Total stockholders’ equity | 2,748 | 63,953 |
Total liabilities, mezzanine equity, and stockholders’ equity | 1,153,648 | 1,574,204 |
Total current assets of discontinued operations | 0 | 132,159 |
Disposal Group, Including Discontinued Operation, Assets, Noncurrent | 0 | 1,309 |
Total current liabilities of discontinued operations | 0 | 4,311 |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | $ 0 | $ 392 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowances for credit losses | $ 3,234,000 | $ 2,223,000 |
Redeemable convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Redeemable convertible preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Redeemable convertible preferred stock, issued (in shares) | 40,000 | 40,000 |
Redeemable convertible preferred stock, outstanding (in shares) | 40,000 | 40,000 |
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) | 117,372,171 | 109,696,178 |
Common stock, outstanding (in shares) | 117,372,171 | 109,696,178 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue | $ 976,672 | $ 1,099,574 | $ 1,058,638 |
Cost of revenue | 646,853 | 790,455 | 665,419 |
Gross profit | 329,819 | 309,119 | 393,219 |
Operating expenses | |||
Technology and development | 183,294 | 178,924 | 143,481 |
Marketing | 117,863 | 155,309 | 136,851 |
General and administrative | 238,790 | 243,390 | 208,722 |
Employee termination costs | 7,927 | 32,353 | 0 |
Total operating expenses | 547,874 | 609,976 | 489,054 |
Loss from continuing operations | (218,055) | (300,857) | (95,835) |
Interest income | 10,532 | 6,639 | 635 |
Interest expense | (9,524) | (8,886) | (7,491) |
Income tax (expense) benefit | (979) | (116) | 6,107 |
Gain on extinguishment of convertible senior notes | 94,019 | 57,193 | 0 |
Other (expense) income, net | (2,385) | (3,770) | 5,360 |
Net loss | (130,026) | (321,143) | (109,613) |
Dividends on convertible preferred stock | (1,074) | (1,560) | (7,269) |
Net loss attributable to common stock—basic | (131,100) | (322,703) | (116,882) |
Net loss attributable to common stock—diluted | $ (131,100) | $ (322,703) | $ (116,882) |
Net loss per share attributable to common stock—basic (in dollars per share) | $ (1.16) | $ (2.99) | $ (1.12) |
Net loss per share attributable to common stock— diluted (in dollars per share) | $ (1.16) | $ (2.99) | $ (1.12) |
Weighted average shares of common stock— basic (in shares) | 113,152,752 | 107,927,464 | 104,683,460 |
Weighted average shares of common stock— diluted (in shares) | 113,152,752 | 107,927,464 | 104,683,460 |
Other comprehensive income | |||
Foreign currency translation adjustments | $ (71) | $ 94 | $ 6 |
Unrealized gain on available-for-sale securities | 690 | 533 | 379 |
Comprehensive loss | (129,407) | (320,516) | (109,228) |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (126,392) | (249,797) | (91,224) |
Net loss from discontinued operations | (3,634) | (71,346) | (18,389) |
Net Income (Loss) from Continuing Operations Available to Common Shareholders, Basic | $ (127,466) | $ (251,357) | $ (98,493) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities | |||
Net loss | $ (130,026) | $ (321,143) | $ (109,613) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 62,851 | 64,907 | 46,906 |
Stock-based compensation | 70,935 | 68,257 | 54,722 |
Amortization of debt discount and issuance costs | 3,620 | 6,137 | 4,989 |
Non-cash lease expense | 16,269 | 16,234 | 11,630 |
Impairment costs | 1,948 | 1,136 | 0 |
Net (gain) loss on IRLCs, forward sales commitments, and loans held for sale | (1,992) | 14,427 | 815 |
Change in fair value of mortgage servicing rights, net | 3,198 | (801) | 0 |
Gain on extinguishment of convertible senior notes | (94,019) | (57,193) | 0 |
Other | (2,113) | 3,791 | (4,227) |
Change in assets and liabilities: | |||
Accounts receivable, net | 3,286 | 24,411 | (7,149) |
Inventory | 114,232 | 243,948 | (309,063) |
Prepaid expenses and other assets | 6,004 | (5,904) | (12,248) |
Accounts payable | (1,323) | (2,472) | 3,059 |
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent | (19,085) | (46,454) | 25,791 |
Lease liabilities | (18,998) | (18,452) | (13,268) |
Origination of mortgage servicing rights | (565) | (3,140) | 0 |
Proceeds from sale of mortgage servicing rights | 1,457 | 1,662 | 0 |
Origination of loans held for sale | (3,525,987) | (3,949,442) | (986,982) |
Proceeds from sale of loans originated as held for sale | 3,567,066 | 4,000,582 | 993,070 |
Net cash provided by (used in) operating activities | 56,758 | 40,491 | (301,568) |
Investing activities | |||
Purchases of property and equipment | (12,056) | (21,531) | (27,492) |
Purchases of investments | (76,866) | (182,466) | (146,274) |
Sales of investments | 124,681 | 17,545 | 98,687 |
Maturities of investments | 61,723 | 99,455 | 106,773 |
Cash paid for acquisition, net of cash, cash equivalents, and restricted cash acquired | 0 | (97,341) | (608,000) |
Net cash provided by (used in) investing activities | 97,482 | (184,338) | (576,306) |
Financing activities | |||
Proceeds from the issuance of common stock pursuant to employee equity plans | 9,613 | 11,528 | 22,772 |
Tax payments related to net share settlements on restricted stock units | (16,348) | (7,498) | (27,066) |
Borrowings from warehouse credit facilities | 3,532,119 | 3,938,265 | 942,993 |
Repayments to warehouse credit facilities | (3,570,664) | (3,989,407) | (948,979) |
Borrowings from secured revolving credit facility | 0 | 565,334 | 624,828 |
Repayments to secured revolving credit facility | 0 | (765,114) | (448,996) |
Cash paid for secured revolving credit facility issuance costs | 0 | 733 | 527 |
Proceeds from issuance of convertible senior notes, net of issuance costs | 0 | 0 | 561,529 |
Purchases of capped calls related to convertible senior notes | 0 | 0 | (62,647) |
Conversions of convertible senior notes | 0 | 0 | (2,159) |
Principal payments under finance lease obligations | (89) | (855) | (796) |
Repurchases of convertible senior notes | (241,808) | (83,614) | 0 |
Repayments of convertible senior notes | (23,512) | 0 | 0 |
Repayment of term loan principal | 313 | 0 | 0 |
Extinguishment of convertible senior notes associated with closing of term loan | (57,075) | 0 | 0 |
Payments of debt issuance costs | (2,338) | 0 | 0 |
Proceeds from term loan | 125,000 | 0 | 0 |
Other financing payables | 0 | 0 | (10,611) |
Net cash (used in) provided by financing activities | (245,415) | (332,094) | 650,341 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (71) | (94) | (6) |
Net change in cash, cash equivalents, and restricted cash | (91,246) | (476,035) | (227,539) |
Beginning of period | 242,246 | 718,281 | 945,820 |
End of period | 151,000 | 242,246 | 718,281 |
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 15,589 | 20,107 | 7,592 |
Non-cash transactions | |||
Stock-based compensation capitalized in property and equipment | 4,003 | 3,660 | 4,059 |
Property and equipment additions in accounts payable and accrued liabilities | 34 | 99 | 659 |
Leasehold improvements paid directly by lessor | 20 | 118 | 1,334 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 151,000 | 242,246 | 718,281 |
Continuing operations | |||
Cash and cash equivalents | 149,759 | 232,200 | 571,384 |
Restricted cash | 1,241 | 2,406 | 5,244 |
Total | 151,000 | 234,606 | 576,628 |
Discontinued operations | |||
Total cash, cash equivalents, and restricted cash | 151,000 | 242,246 | 718,281 |
Properties Segment | Discontinued Operations, Disposed of by Means Other than Sale | |||
Supplemental disclosure of cash flow information | |||
Cash paid for interest | 0 | 7,863 | 3,946 |
Non-cash transactions | |||
Property and equipment additions in accounts payable and accrued liabilities | 0 | 1,213 | 1,782 |
Discontinued operations | |||
Cash and cash equivalents | 0 | 7,640 | 19,619 |
Restricted cash | 0 | 0 | 122,034 |
Total | $ 0 | $ 7,640 | $ 141,653 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Mezzanine Equity and Stockholders’ Equity - USD ($) $ in Thousands | Total | Cumulative-effect adjustment from accounting changes | Series A Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative-effect adjustment from accounting changes | Accumulated Deficit | Accumulated Deficit Cumulative-effect adjustment from accounting changes | Accumulated Other Comprehensive Loss |
Redeemable convertible preferred stock beginning balance (in shares) at Dec. 31, 2020 | 40,000 | ||||||||
Redeemable convertible preferred stock beginning balance at Dec. 31, 2020 | $ 39,823 | ||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Issuance of convertible preferred stock, net (in shares) | 0 | ||||||||
Issuance of convertible preferred stock, net | $ 45 | ||||||||
Redeemable convertible preferred stock ending balance (in shares) at Dec. 31, 2021 | 40,000 | ||||||||
Redeemable convertible preferred stock ending balance at Dec. 31, 2021 | $ 39,868 | ||||||||
Balance, beginning of period (in shares) at Dec. 31, 2020 | 103,000,594 | ||||||||
Balance, beginning of period at Dec. 31, 2020 | $ 590,557 | $ 103 | $ 860,556 | $ (270,313) | $ 211 | ||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Issuance of common stock as dividend on convertible preferred stock (in shares) | 122,560 | ||||||||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 334,248 | ||||||||
Issuance of common stock pursuant to employee stock purchase program | 13,787 | 13,787 | |||||||
Issuance of common stock pursuant to exercise of stock options (in shares) | 1,709,324 | ||||||||
Issuance of common stock pursuant to exercise of stock options | 8,980 | $ 2 | 8,978 | ||||||
Issuance of common stock pursuant to settlement restricted stock units (in shares) | 1,559,425 | ||||||||
Issuance of common stock pursuant to settlement of restricted stock units | 0 | $ 2 | (2) | ||||||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units (in shares) | (458,152) | ||||||||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units | $ (27,067) | $ (1) | (27,066) | ||||||
Issuance of common stock in connection with repurchase of convertible senior notes (in shares) | 0 | ||||||||
Cumulative-effect adjustment from accounting changes | $ 0 | ||||||||
Purchases of capped calls related to convertible senior notes | $ 62,647 | 62,647 | |||||||
Issuance of common stock in connection with conversion of convertible senior notes (in shares) | 40,768 | ||||||||
Issuance of common stock in connection with conversion of convertible senior notes | (63) | (63) | |||||||
Stock-based compensation | 58,781 | 58,781 | |||||||
Other comprehensive income | (385) | (385) | |||||||
Net loss | (109,613) | (109,613) | |||||||
Balance, end of period (in shares) at Dec. 31, 2021 | 106,308,767 | ||||||||
Balance, end of period at Dec. 31, 2021 | $ 309,852 | $ (162,478) | $ 106 | 682,084 | $ (170,240) | (372,164) | $ 7,762 | (174) | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Issuance of convertible preferred stock, net | $ 46 | ||||||||
Redeemable convertible preferred stock ending balance (in shares) at Dec. 31, 2022 | 40,000 | 40,000 | |||||||
Redeemable convertible preferred stock ending balance at Dec. 31, 2022 | $ 39,914 | $ 39,914 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Issuance of common stock as dividend on convertible preferred stock (in shares) | 122,560 | ||||||||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 1,170,106 | ||||||||
Issuance of common stock pursuant to employee stock purchase program | 6,465 | $ 1 | 6,464 | ||||||
Issuance of common stock pursuant to exercise of stock options (in shares) | 700,333 | ||||||||
Issuance of common stock pursuant to exercise of stock options | 4,987 | $ 1 | 4,986 | ||||||
Issuance of common stock pursuant to settlement restricted stock units (in shares) | 1,972,441 | ||||||||
Issuance of common stock pursuant to settlement of restricted stock units | 0 | $ 2 | (2) | ||||||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units (in shares) | (578,029) | ||||||||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units | (7,498) | $ 0 | (7,498) | ||||||
Stock-based compensation | 71,917 | 71,917 | |||||||
Other comprehensive income | (627) | (627) | |||||||
Net loss | $ (321,143) | (321,143) | |||||||
Balance, end of period (in shares) at Dec. 31, 2022 | 109,696,178 | 109,696,178 | |||||||
Balance, end of period at Dec. 31, 2022 | $ 63,953 | $ 110 | 757,951 | (693,307) | (801) | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||
Issuance of convertible preferred stock, net | $ 45 | ||||||||
Redeemable convertible preferred stock ending balance (in shares) at Dec. 31, 2023 | 40,000 | 40,000 | |||||||
Redeemable convertible preferred stock ending balance at Dec. 31, 2023 | $ 39,959 | $ 39,959 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Issuance of common stock as dividend on convertible preferred stock (in shares) | 122,560 | ||||||||
Issuance of common stock pursuant to employee stock purchase plan (in shares) | 1,491,040 | ||||||||
Issuance of common stock pursuant to employee stock purchase program | $ 7,201 | $ 1 | 7,200 | ||||||
Issuance of common stock pursuant to exercise of stock options (in shares) | 801,866 | 801,866 | |||||||
Issuance of common stock pursuant to exercise of stock options | $ 2,412 | $ 1 | 2,411 | ||||||
Issuance of common stock pursuant to settlement restricted stock units (in shares) | 6,955,493 | ||||||||
Issuance of common stock pursuant to settlement of restricted stock units | 0 | $ 7 | (7) | ||||||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units (in shares) | (1,694,966) | ||||||||
Common stock surrendered for employees' tax liability upon settlement of restricted stock units | (16,349) | $ (2) | (16,347) | ||||||
Stock-based compensation | 74,938 | 74,938 | |||||||
Other comprehensive income | 619 | 619 | |||||||
Net loss | $ (130,026) | (130,026) | |||||||
Balance, end of period (in shares) at Dec. 31, 2023 | 117,372,171 | 117,372,171 | |||||||
Balance, end of period at Dec. 31, 2023 | $ 2,748 | $ 117 | $ 826,146 | $ (823,333) | $ (182) |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business —Redfin Corporation was incorporated in October 2002 and is headquartered in Seattle, Washington. We operate an online real estate marketplace and provide real estate services, including assisting individuals in the purchase or sale of their home. We also provide title and settlement services, and originate, service, and sell mortgages. In addition, we use digital platforms to connect consumers with rental properties. We have operations located in multiple states across the United States and certain provinces in Canada. 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”). Certain amounts presented in the prior period consolidated statements of comprehensive loss have been reclassified to conform to the current period financial statement presentation. The change in classification does not affect previously reported total revenue or expenses in the consolidated statements of comprehensive loss. Principles of Consolidation —The consolidated financial statements include the accounts of Redfin and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated. Certain Significant Risks and Business Uncertainties —We operate in the residential real estate industry and are a technology-focused company. Accordingly, we are affected by a variety of factors that could have a significant negative effect on our future financial position, results of operations, and cash flows. These factors include: negative macroeconomic factors affecting the health of the U.S. residential real estate industry, negative factors disproportionately affecting markets where we derive most of our revenue, intense competition in the U.S. residential real estate industry, industry changes as the result of certain class action lawsuits or government investigations, our inability to maintain or improve our technology offerings, our failure to obtain and provide comprehensive and accurate real estate listings, errors or inaccuracies in the business data that we rely on to make decisions, and our inability to attract homebuyers and home sellers to our website and mobile application. Use of Estimates —The preparation of consolidated financial statements, in conformity with GAAP, requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the respective periods. Our estimates include, but are not limited to, valuation of deferred income taxes, stock-based compensation, capitalization of website and software development costs, the incremental borrowing rate for the determination of the present value of lease payments, recoverability of intangible assets with finite lives, fair value of our mortgage loans held for sale (“LHFS”) and mortgage servicing rights, estimated useful life of intangible assets, fair value of reporting units for purposes of allocating and evaluating goodwill for impairment, and current expected credit losses on certain financial assets. The amounts ultimately realized from the affected assets or ultimately recognized as liabilities will depend on, among other factors, general business conditions and could differ materially in the near term from the carrying amounts reflected in the consolidated financial statements. Cash and Cash Equivalents —We consider all highly liquid investments originally purchased by us with original maturities of three months or less at the date of purchase to be cash equivalents. Restricted Cash —Restricted cash primarily consists of cash that is specifically designated to repay borrowings under warehouse credit facilities. Accounts Receivable, Net and Allowance for Credit Losses —We have two material classes of receivables: (i) real estate services receivables and (ii) receivables from customers in relation to our rentals business. Accounts receivable related to these classes represent closed transactions for which cash has not yet been received. The majority of our transactions are processed through escrow and collectibility is not a significant risk. For transactions not directly processed through escrow, we establish an allowance for expected credit losses based on historical experience of collectibility, current external economic conditions that may affect collectibility, and current or expected changes to the regulatory environment in which we operate our businesses. We evaluate for changes in credit quality indicators on an annual basis or in the event of a material economic event or material change in the regulatory environment in which we operate. Investments —We have investments in marketable securities that are available to support our operational needs, which are included in our consolidated balance sheets as short-term and long-term investments. Our short-term and long-term investments consist primarily of U.S. treasury securities, including inflation protected securities, and other federal or local government issued securities. 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 loss. 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 securities are classified as long-term. We evaluate our available-for-sale debt securities, both ones classified as cash equivalents and as investments, for expected credit losses on a quarterly basis. An expected credit loss reserve is charged against the fair value of an available-for-sale debt security when it is identified, with a credit loss charged against net earnings. We review factors to determine whether an expected credit loss exists based on credit quality indicators, such as the extent to which the fair value as of the reporting date is less than the amortized cost basis, present value of cash flows expected to be collected, the financial condition and prospects of the issuer, adverse conditions specifically related to the security, and any changes to the credit rating of the security by a rating agency. Realized gains and losses are accounted for using the specific identification method. Purchases and sales are recorded on a trade date basis. Fair Value —We account for certain assets and liabilities at fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value measurements defines a three-level valuation hierarchy for disclosures as follows: Level 1 —Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 —Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable such as quoted prices for similar assets or liabilities in active markets or can be corroborated by observable market data. Level 3 —Unobservable inputs that are supported by little or no market activity and require us to develop our own assumptions. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Our financial instruments consist of Level 1, Level 2, and Level 3 assets and liabilities. Concentration of Credit Risk —Financial instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and investments. We generally place our cash and cash equivalents and investments with major financial institutions we deem to be of high-credit-quality in order to limit our credit exposure. We maintain our cash accounts with financial institutions where deposits exceed federal insurance limits. Credit risk in regard to accounts receivable is spread across a large number of customers. At December 31, 2023 and 2022, no single customer had an accounts receivable balance greater than 10% of total accounts receivable. Loans Held for Sale —Our mortgage segment originates residential mortgage loans. We have elected the fair value option for all loans held for sale and record these loans at fair value. Gains and losses from changes in fair value and direct loan origination fees and costs are recognized in net gain on loans held for sale. The fair value of loans held for sale is in excess of the contractual principal amounts by $3,712 and $2,650, respectively, as of December 31, 2023 and December 31, 2022. The mortgage loans we originate are intended to be sold in the secondary mortgage market within a short period of time following origination. Mortgage loans held for sale primarily consist of single-family residential loans collateralized by the underlying home. Mortgage loans held for sale are recorded at fair value based on either sale commitments or current market quotes for mortgage loans with similar characteristics. Interest income earned or expense incurred on loans held for sale is captured as a component of income from operations. Other Current Assets —Other current assets consist primarily of miscellaneous non-trade receivables, interest receivable, and interest rate lock commitments from mortgage origination operations (see Derivative Instruments below). Derivative Instruments —Our mortgage segment is party to interest rate lock commitments (“IRLCs”) with customers resulting from mortgage origination operations. IRLCs for single-family mortgage loans we intend to sell are considered free-standing derivatives. All free-standing derivatives are required to be recorded on our consolidated balance sheets at fair value. Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements. Interest rate risk related to the residential mortgage loans held for sale and IRLCs is offset using forward sales commitments. We manage this interest rate risk through the use of forward sales commitments on both a best efforts whole loans basis and on a mandatory basis. Forward sales commitments entered into on a mandatory basis are done through the use of commitments to sell mortgage-backed securities. We do not enter into or hold derivatives for trading or speculative purposes. Changes in the fair value of IRLCs and forward sales commitments are recognized as revenue, and the fair values are reflected in other current assets and accrued and other liabilities, as applicable. We estimate the fair value of an IRLC based on current market quotes for mortgage loans with similar characteristics, net of origination costs and fees adjusting for the probability that the mortgage loan will not fund according to the terms of commitment (referred to as a pull-through factor). The fair value measurements of our forward sales commitments use prices quoted directly to us from our counterparties. Property and Equipment —Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives. Depreciation and amortization is included in cost of revenue, marketing, technology and development, and general and administrative and is allocated based on estimated usage for each class of asset. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in our consolidated statements of operations. Repair and maintenance costs are expensed as incurred. Costs incurred in the preliminary stages of website and software development are expensed as incurred. Once an application has reached the development stage, direct internal and external costs relating to upgrades or enhancements that meet the capitalization criteria are capitalized in property and equipment and amortized on a straight-line basis over their estimated useful lives. Maintenance and enhancement costs (including those costs in the post-implementation stages) are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the websites (or software) that result in added functionality, in which case the costs are capitalized. Capitalized software development activities placed in service are amortized over the expected useful lives of those releases. We view capitalized software costs as either internal use or market and product expansion. Estimated useful lives of website and software development activities are reviewed annually, or whenever events or changes in circumstances indicate that intangible assets may be impaired, and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades or enhancements to the existing functionality. In July 2023, we completed an assessment of the useful lives of our website and internally developed software. Due to improvements, efficiencies, and advancements in how we develop, implement, and use our website and internally developed software, we determined we should increase their estimated useful lives from two to three years to three Intangible Assets —Intangible assets are finite lived and mainly consist of trade names, developed technology, and customer relationships and are amortized over their estimated useful lives ranging from three Impairment of Long-Lived Assets —Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured first by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such asset were considered to be impaired, an impairment loss would be recognized in the amount by which the carrying value of the asset exceeds its fair value. To date, no such impairment has occurred. Goodwill —Goodwill represents the excess of the purchase price over the fair value of the net tangible assets and identifiable intangible assets acquired in a business combination. Goodwill is not amortized, but is subject to impairment testing. We assess the impairment of goodwill on an annual basis, during the fourth quarter, or whenever events or changes in circumstances indicate that goodwill may be impaired. Based on our annual goodwill impairment test performed in the fourth quarter of 2023, the estimated fair values of all reporting units substantially exceeded their carrying values. We perform an impairment assessment of goodwill at our reporting unit level. To test for goodwill impairment, we have the option to perform a qualitative assessment of goodwill rather than completing the quantitative assessment. We consider macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other relevant entity-specific events, potential events affecting the reporting units, and changes in the fair value of our common stock. We must assess whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If we conclude this is not the case, we do not need to perform any further assessment. Otherwise, we must perform a quantitative assessment and compare the fair value of the reporting unit to its carrying value, including goodwill. If the fair value of the reporting unit is less than its carrying amount, goodwill is written down for the amount by which the carrying amount exceeds the reporting unit's fair value. However, the loss recognized cannot exceed the carrying amount of goodwill. We use a combination of discounted cash flow models and market data of comparable guideline companies to determine the fair value of a reporting unit. The assumptions used in these models are consistent with those we believe a market participant would use and adjusted for the specific size and risk profile of the reporting units. The aggregate carrying value of goodwill was $461,349 at each of December 31, 2023 and 2022. For the years ended December 31, 2023 and 2022, we performed a quantitative assessment and concluded that there was no impairment. There were no cumulative impairment losses for the years ended December 31, 2023 and 2022. See Note 8 for more information. Other Assets, Noncurrent —Other assets consists primarily of leased building security deposits and the noncurrent portion of prepaid assets. Leases —The extent of our lease commitments consists of operating leases for physical office locations with original terms ranging from one When available, the rate implicit in the lease to discount lease payments to present value would be used; however, none of our significant leases as of December 31, 2023 provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate for each portfolio of leases to discount the lease payments based on information available at lease commencement. We have evaluated the performance of existing leases in relation to our leasing strategy and have determined that most renewal options would not be reasonably certain to be exercised. The right-of-use asset and related lease liability are determined based on the lease component of the consideration in each lease contract. We have evaluated our lease portfolio for appropriate allocation of the consideration in the lease contracts between lease and non-lease components based on standalone prices and determined the allocation per the contracts to be appropriate. Mezzanine Equity —We have issued convertible preferred stock that we have determined is a financial instrument with both equity and debt characteristics and is classified as mezzanine equity in our consolidated financial statements. The instrument was initially recognized at fair value net of issuance costs. We reassess whether the instrument is currently redeemable or probable to become redeemable in the future as of each reporting date, in which, if the instrument meets either criteria, we will accrete the carrying value to the redemption value based on the effective interest method over the remaining term. To assess classification, we review all features of the instrument, including mandatory redemption features and conversion features that may be substantive. All financial instruments that are classified as mezzanine equity are evaluated for embedded derivative features by evaluating each feature against the nature of the host instrument (e.g., more equity-like or debt-like). Features identified as embedded derivatives that are material are recognized separately as a derivative asset or liability in the consolidated financial statements. We have evaluated our convertible preferred stock and determined that its nature is that of an equity host and no material embedded derivatives exist that would require bifurcation on our consolidated balance sheets. See Note 10 for more information. Foreign Currency Translation —Our international operations generally use their local currency as their functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at the average monthly exchange rates during the year. Resulting translation adjustments are reported as a component of other comprehensive income and recorded in accumulated other comprehensive loss on our consolidated balance sheets. Income Taxes —Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the consolidated balance sheets and tax bases of assets and liabilities at the applicable enacted tax rates. We establish a valuation allowance for deferred tax assets if it is more likely than not that these items will expire before we are able to realize their benefits or if future deductibility is uncertain. We account for uncertainty in income taxes in accordance with ASC 740, Income Taxes . Tax positions are evaluated utilizing a two-step process, whereby we first determine whether it is more likely than not that a tax position will be sustained upon examination by the tax authority, including resolutions of any related appeals or litigation processes, based on technical merit. If a tax position meets the more-likely-than-not recognition threshold, it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely to be realized upon ultimate settlement. Subsequent adjustments to amounts previously recorded impact the financial statements in the period during which the changes are identified. We recognize interest and penalties related to unrecognized tax benefits as income tax expense. Convertible Senior Notes —In accounting for the issuance of our convertible senior notes, we treat the instrument wholly as a liability, in accordance with the adoption of ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06"). Issuance costs are amortized to expense over the respective term of the convertible senior notes. For conversions prior to the maturity of the notes, we will settle using cash, shares of our common stock, or a combination of cash and shares of our common stock, at our election. The carrying amount of the instrument (including unamortized debt issuance costs) is reduced by cash and other assets transferred, with the difference reflected as a reduction to additional paid-in capital. The indentures governing our convertible senior notes allow us, under certain circumstances, to irrevocably fix our method for settling conversions of the applicable notes by giving notice to the noteholders. Our election to irrevocably fix the settlement method could affect the calculation of diluted earnings per share when applicable. We have no plans to exercise our rights to fix the settlement method. When we repurchase a portion of our convertible senior notes, we derecognize the liability, accelerate the amortization of debt issuance costs, and record on our consolidated statements of comprehensive loss a gain or loss on extinguishment dependent on the repurchase price. See Note 14 for information regarding repurchases for the year ended December 31, 2023. Revenue Recognition —We generate revenue primarily from commissions and fees charged on each real estate services transaction closed by our lead agents or partner agents, from subscription-based product offerings for our rentals business, and from the origination, sales, and servicing of mortgages. Our key revenue components are brokerage revenue, partner revenue, rentals revenue, mortgage revenue, and other revenue. We have utilized the allowable practical expedient in the accounting guidance and elected not to capitalize costs related to obtaining contracts with customers with durations of less than one year. We do not have significant remaining performance obligations. Revenue earned but not received is recorded as accrued revenue in accounts receivable on our consolidated balance sheets, net of an allowance for credit losses. Accrued revenue consisting of commission revenue is known and is clearing escrow, and therefore it is not estimated. Nature and Disaggregation of Revenue Real Estate Services Revenue Brokerage Revenue —Brokerage revenue includes our offer and listing services, where our lead agents represent homebuyers and home sellers. We recognize commission-based brokerage revenue upon closing of a brokerage transaction, less the amount of any commission refunds, closing-cost reductions, or promotional offers that may result in a material right. The transaction price is generally calculated by taking the agreed upon commission rate and applying that to the home's selling price. Brokerage revenue primarily contains a single performance obligation that is satisfied upon the closing of a transaction, at which point the entire transaction price is earned. We are not entitled to any commission until the performance obligation is satisfied and are not owed any commission for unsuccessful transactions, even if services have been provided. In conjunction with providing offering and listing services to our customers, we may offer promotional pricing or additional discounts on future services. This results in a material right to our customers and represents an additional performance obligation, for which the transaction price is allocated based on standalone selling prices. Amounts allocated to a promise to provide future listing or offering services at a significant discount are initially recorded as contract liabilities. Our promotional pricing and additional discounts have not resulted in a material impact to timing of revenue recognition. The balance of the corresponding contract liabilities are included in accrued and other liabilities on our consolidated balance sheets. See Note 9 for more information. Partner Revenue —Partner revenue consists of fees paid to us from partner agents or under other referral agreements, less the amount of any payments we make to homebuyers and home sellers. We recognize these fees as revenue on the closing of a transaction. The transaction price is a fixed percentage of the partner agent's commission. The partner agent or other entity related to our referral agreements directly remits the referral fee revenue to us. We are neither entitled to referral fee revenue, nor is our performance obligation satisfied, until the related referred home's sale closes. Rentals Revenue Rentals Revenue —Rentals revenue is primarily composed of subscription-based product offerings for internet listing services, as well as lead management and digital marketing solutions. Rentals revenue is recorded as a component of service revenue in our consolidated statements of comprehensive loss. Revenue is recognized upon transfer of control of promised service to customers over time in an amount that reflects the consideration we expect to receive in exchange for those services. Revenues from subscription-based services are recognized on a straight-line basis over the term of the contract, which generally have a term of less than one year. Revenue is presented net of sales allowances, which are not material. The transaction price for a contract is generally determined by the stated price in the contract, excluding any related sales taxes. We enter into contracts that can include various combinations of subscription services, which are capable of being distinct and accounted for as separate performance obligations. We allocate the transaction price to each performance obligation in the contract on a relative stand-alone selling price basis. Generally, the combinations of subscription services are fulfilled concurrently and are co-terminus. Our rentals contracts do not contain any refund provisions other than in the event of our non-performance or breach. Mortgage Revenue Mortgage Revenue —Mortgage revenue includes fees from the origination and subsequent sale of loans, loan servicing income, interest income on loans held for sale, origination of IRLCs, and the changes in fair value of our IRLCs, forward sales commitments, loans held for sale, and MSRs. Other Revenue Other Revenue —Other services revenue includes fees earned from title settlement services, Walk Score data services, and advertising. Substantially all fees and revenue from other services are recognized when the service is provided. Cost of Revenue —Cost of revenue consists primarily of personnel costs (including base pay, benefits, and stock-based compensation), transaction bonuses, home-touring and field expenses, listing expenses, customer fulfillment costs related to our rentals segment, office and occupancy expenses, interest expense on our mortgage related warehouse facilities, and depreciation and amortization related to fixed assets and acquired intangible assets. Technology and Development —Technology and development expenses primarily include personnel costs (including base pay, bonuses, benefits, and stock-based compensation), data licenses, software and equipment, and infrastructure such as for data centers and hosted services. The expenses also include amortization of acquired intangible assets, capitalized internal-use software and website and mobile application development costs. We expense research and development costs as incurred and record them in technology and development expenses. Restructuring and Reorganization —Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention payments associated with wind-down activities. Advertising and Advertising Production Costs —We expense advertising costs as they are incurred and production costs as of the first date the advertisement takes place. Advertising costs and advertising production costs are included in marketing expenses. The following table summarizes total advertising and advertising production costs for the periods listed: Year Ended December 31, 2023 2022 2021 Advertising costs $ 100,321 $ 133,593 $ 119,278 Advertising production costs 2,983 3,425 2,303 Stock-based Compensation —We account for stock-based compensation by measuring and recognizing as compensation expense the fair value of all share-based payment awards made to employees, including restricted stock unit awards and shares forecasted to be issued pursuant to our ESPP, in each case based on estimated grant date fair values. Stock-based compensation expense is recognized over the requisite service period on a straight-line basis. We recognize forfeitures when they occur. The Black-Scholes-Merton option-pricing model is used to determine the fair value of shares forecasted to be issued pursuant to our ESPP. For restricted stock unit awards and restricted stock unit awards with performance conditions, we use the market value of our common stock on the date of grant to determine the fair value of the award. For restricted stock unit awards with market conditions, the market condition is reflected in the grant date fair value of the award using a Monte Carlo simulation. In valuing shares forecasted to be issued pursuant to our ESPP, we make assumptions about expected life, stock price volatility, risk-free interest rates, and expected dividends. Expected Life —The expected term was estimated using the ESPP offering period which is six months. Volatility —The expected stock price volatility for our common stock was estimated by taking the average historical price volatility of Redfin stock over the preceding six months. Risk-Free Rate —The risk-free interest rate is based on the yields of U.S. treasury securities with maturities similar to the expected term, or six months. Dividend Yield —We have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. Consequently, an expected dividend yield of zero was used. Business Combinations —The results of businesses acquired in a business combination are included in our consolidated financial statements from the date of acquisition. We record assets and liabilities of an acquired business at their estimated fair values on the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Mortgage Servicing Rights (“MSRs”) —We determine the fair |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | In November 2022, our management and board of directors made the decision to wind down RedfinNow. The financial results of RedfinNow have historically been included in our properties segment. Winding-down RedfinNow was a strategic decision we made in order to focus our resources on our core businesses in the face of the rising cost of capital. The wind-down of our properties segment was complete as of June 30, 2023, at which time it met the criteria for discontinued operations in our consolidated financial statements. The major classes of assets and liabilities of our discontinued operations were as follows: December 31, 2023 2022 Assets Current assets Cash and cash equivalents $ — $ 7,640 Accounts receivable, net — 8,504 Inventory — 114,232 Prepaid expenses — 500 Other current assets — 1,283 Total current assets of discontinued operations — 132,159 Property and equipment, net — 167 Right-of-use assets, net — 1,142 Total assets of discontinued operations $ — $ 133,468 Liabilities Current liabilities Accounts payable $ — $ 754 Accrued and other liabilities — 2,980 Lease liabilities — 577 Total current liabilities of discontinued operations — 4,311 Lease liabilities, noncurrent — 392 Total liabilities of discontinued operations $ — $ 4,703 The major classes of line items of the discontinued operations included in our consolidated statement of comprehensive loss were as follows: Year Ended December 31, 2023 2022 2021 Revenue $ 122,576 $ 1,184,868 $ 864,127 Cost of revenue (1) 124,422 1,207,933 853,526 Gross (loss) profit (1,846) (23,065) 10,601 Operating expenses Technology and development (1) 552 17,326 13,237 Marketing (1) 523 2,762 1,889 General and administrative (1) 638 11,204 9,593 Restructuring and reorganization 75 8,116 — Total operating expenses 1,788 39,408 24,719 Loss from discontinued operations (3,634) (62,473) (14,118) Interest expense — (8,859) (4,271) Income tax expense — (10) — Other expense, net — (4) — Net loss from discontinued operations $ (3,634) $ (71,346) $ (18,389) Net loss from discontinued operations per share—basic and diluted $ (0.03) $ (0.66) $ (0.18) (1) Includes stock-based compensation as follows: Year Ended December 31, 2023 2022 2021 Cost of revenue $ 46 $ 813 $ 1,226 Technology and development 86 3,243 2,103 Marketing 19 102 207 General and administrative 83 1,080 1,641 Total stock-based compensation $ 234 $ 5,238 $ 5,177 Significant non-cash items and capital expenditures of the discontinued operations were as follows: Year Ended December 31, 2023 2022 2021 Amortization of debt discount and debt issuance costs $ — $ 996 $ 273 Stock-based compensation 234 5,238 5,177 Depreciation and amortization 89 2,337 1,847 Capital expenditures — 1,213 1,782 Cash paid for interest — 7,863 3,946 Charges specifically relating to the wind-down of our properties segment were as follows: Cost type Financial statement line item Year Ended December 31, 2023 Cumulative amount recognized Employee termination costs Restructuring and reorganization $ 539 $ 8,587 Asset write-offs Restructuring and reorganization — 493 Other Restructuring and reorganization (465) (890) Acceleration of debt issuance costs Interest expense — 481 Total $ 74 $ 8,671 |
Segment Reporting and Revenue
Segment Reporting and Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting and Revenue | Segment Reporting and Revenue In its operation of our business, our management, including our chief operating decision maker ("CODM"), who is also our chief executive officer, evaluates the performance of our operating segments based on our statement of operations results, inclusive of net loss. We do not analyze discrete segment balance sheet information related to long-term assets, substantially all of which are located in the United States. We have five operating segments and three reportable segments, real estate services, rentals, and mortgage. As a result of our decision to wind-down RedfinNow operations in November 2022, we report our properties segment as a discontinued operation as we completed wind-down of the business during the three months ended June 30, 2023. We generate revenue primarily from commissions and fees charged on each real estate services transaction closed by our lead agents or partner agents, from subscription-based product offerings for our rentals business, and from the origination, sales, and servicing of mortgages. Our key revenue components are brokerage revenue, partner revenue, rentals revenue, mortgage revenue, and other revenue. Information on each of our reportable and other segments and reconciliation to consolidated net (loss) income from continuing operations is presented in the tables below. We have assigned certain previously reported expenses to each segment to conform to the way we internally manage and monitor our business. We allocated indirect costs to each segment based on a reasonable allocation methodology, when such costs are significant to the performance measures of the segments. Year Ended December 31, 2023 Real estate services Rentals Mortgage Other Corporate overhead Total Revenue (1) $ 618,577 $ 184,812 $ 134,108 $ 39,175 $ — $ 976,672 Cost of revenue 462,625 42,086 118,178 23,964 — 646,853 Gross profit 155,952 142,726 15,930 15,211 — 329,819 Operating expenses Technology and development 108,201 63,934 2,871 4,504 3,784 183,294 Marketing 59,746 53,952 4,064 60 41 117,863 General and administrative 76,851 94,252 25,012 4,017 38,658 238,790 Restructuring and reorganization — 503 — — 7,424 7,927 Total operating expenses 244,798 212,641 31,947 8,581 49,907 547,874 (Loss) income from continuing operations (88,846) (69,915) (16,017) 6,630 (49,907) (218,055) Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net 59 215 (392) 712 91,069 91,663 Net (loss) income from continuing operations $ (88,787) $ (69,700) $ (16,409) $ 7,342 $ 41,162 $ (126,392) (1) Included in revenue is $1,244 from providing services to our discontinued properties segment. Year Ended December 31, 2022 Real estate services Rentals Mortgage Other Corporate overhead Total Revenue (1) $ 787,076 $ 155,910 $ 132,904 $ 23,684 $ — $ 1,099,574 Cost of revenue 608,027 33,416 126,552 22,460 — 790,455 Gross profit 179,049 122,494 6,352 1,224 — 309,119 Operating expenses Technology and development 105,196 59,899 6,034 3,591 4,204 178,924 Marketing 98,673 51,064 4,889 199 484 155,309 General and administrative 88,171 92,728 25,680 3,307 33,504 243,390 Restructuring and reorganization — — — — 32,353 32,353 Total operating expenses 292,040 203,691 36,603 7,097 70,545 609,976 Loss from continuing operations (112,991) (81,197) (30,251) (5,873) (70,545) (300,857) Interest income, interest expense, income tax benefit, gain on extinguishment of convertible senior notes, and other expense, net (123) 1,389 (114) 140 49,768 51,060 Net loss from continuing operations $ (113,114) $ (79,808) $ (30,365) $ (5,733) $ (20,777) $ (249,797) (1) Included in revenue is $17,783 from providing services to our discontinued properties segment. Year Ended December 31, 2021 Real estate services Rentals Mortgage Other Corporate overhead Total Revenue (1) $ 903,334 $ 121,877 $ 19,818 $ 13,609 $ — $ 1,058,638 Cost of revenue 603,320 21,739 26,096 14,264 — 665,419 Gross profit 300,014 100,138 (6,278) (655) — 393,219 Operating expenses Technology and development 81,588 41,492 10,396 2,528 7,477 143,481 Marketing 98,746 36,174 561 209 1,161 136,851 General and administrative 84,655 71,943 8,306 2,288 41,530 208,722 Total operating expenses 264,989 149,609 19,263 5,025 50,168 489,054 Income (loss) from continuing operations 35,025 (49,471) (25,541) (5,680) (50,168) (95,835) Interest income, interest expense, and other income, net (87) 3,301 3 2 1,392 4,611 Net income (loss) from continuing operations $ 34,938 $ (46,170) $ (25,538) $ (5,678) $ (48,776) $ (91,224) (1) Included in revenue is $16,526 from providing services to our discontinued properties segment. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Derivatives Our primary market exposure is to interest rate risk, specifically U.S. treasury and mortgage interest rates, due to their impact on mortgage-related assets and commitments. We use forward sales commitments on whole loans and mortgage-backed securities to manage and reduce this risk. We do not have any derivative instruments designated as hedging instruments. Forward Sales Commitments —We are exposed to interest rate and price risk on loans held for sale from the funding date until the date the loan is sold. Forward sales commitments on whole loans and mortgage-backed securities are used to fix the forward sales price that will be realized at the sale of each loan. Interest Rate Lock Commitments —IRLCs represent an agreement to extend credit to a mortgage loan applicant. We commit (subject to loan approval) to fund the loan at the specified rate, regardless of changes in market interest rates between the commitment date and the funding date. Outstanding IRLCs are subject to interest rate risk and related price risk during the period from the date of commitment through the loan funding date or expiration date. Loan commitments generally range between 30 and 90 days and the borrower is not obligated to obtain the loan. Therefore, IRLCs are subject to fallout risk, which occurs when approved borrowers choose not to close on the underlying loans. We review our commitment-to-closing ratio ("pull-through rate") as part of an estimate of the number of mortgage loans that will fund according to the IRLCs. December 31, Notional Amounts 2023 2022 Forward sales commitments $ 274,400 $ 301,548 IRLCs 188,554 210,787 The locations and amounts of gains (losses) recognized in revenue related to our derivatives are as follows: Year Ended December 31, Instrument Classification 2023 2022 2021 Forward sales commitments Revenue $ (2,226) $ (11,336) $ 518 IRLCs Revenue 3,156 (4,184) (641) Fair Value of Financial Instruments A summary of assets and liabilities related to our financial instruments, measured at fair value on a recurring basis and as reflected on our consolidated balance sheets, is set forth below: Balance at December 31, 2023 Quoted Prices in Active Markets for Identical Assets Significant Significant Assets Cash equivalents Money market funds $ 115,276 $ 115,276 $ — $ — Total cash equivalents 115,276 115,276 — — Short-term investments U.S. treasury securities 10,720 10,720 — — Agency bonds 31,232 31,232 — — Total short-term investments 41,952 41,952 — — Loans held for sale 159,587 — 159,587 — Other current assets IRLCs 4,600 — — 4,600 Total other current assets 4,600 — — 4,600 Mortgage servicing rights, at fair value 32,171 — — 32,171 Long-term investments U.S. treasury securities 3,149 3,149 — — Total assets $ 356,735 $ 160,377 $ 159,587 $ 36,771 Liabilities Accrued liabilities Forward sales commitments $ 2,429 $ — $ 2,429 $ — IRLCs 147 — — 147 Total liabilities $ 2,576 $ — $ 2,429 $ 147 Balance at December 31, 2022 Quoted Prices in Active Markets for Identical Assets Significant Significant Assets Cash equivalents Money market funds $ 186,410 $ 186,410 $ — $ — Total cash equivalents 186,410 186,410 — — Short-term investments U.S. treasury securities 96,925 96,925 — — Agency bonds 25,334 25,334 — — Total short-term investments 122,259 122,259 — — Loans held for sale 199,604 — 199,604 — Other current assets Forward sales commitments 1,669 — 1,669 — IRLCs 2,338 — — 2,338 Total other current assets 4,007 — 1,669 2,338 Mortgage servicing rights, at fair value 36,261 — — 36,261 Long-term investments U.S. treasury securities 29,480 29,480 — — Total assets $ 578,021 $ 338,149 $ 201,273 $ 38,599 Liabilities Accrued liabilities Forward sales commitments $ 1,873 $ — $ 1,873 $ — IRLCs 1,041 — — 1,041 Total liabilities $ 2,914 $ — $ 1,873 $ 1,041 There were no transfers into or out of Level 3 financial instruments during the years ended December 31, 2023 and 2022. The significant unobservable input used in the fair value measurement of IRLCs is the pull-through rate. Significant changes in the input could result in a significant change in fair value measurement. The following is a quantitative summary of key unobservable inputs used in the valuation of IRLCs and mortgage servicing rights (“MSRs”): December 31, 2023 December 31, 2022 Key Inputs Valuation Technique Range Weighted-Average Range Weighted-Average IRLCs Pull-through rate Market pricing 67.2% - 100.0% 87.7% 62.0% - 100.0% 91.0% MSRs Prepayment speed Discounted cash flow 6.0% - 19.0% 6.8% 6.0% - 14.4% 6.6% Default rates Discounted cash flow 0.1% - 1.2% 0.2% 0.0% - 0.5% 0.1% Discount rate Discounted cash flow 10.0% - 17.0% 10.2% 9.5% - 12.4% 9.6% The following is a summary of changes in the fair value of IRLCs: Year Ended December 31, 2023 2022 2021 Balance, net—beginning of period $ 1,297 $ 1,131 $ 1,771 IRLCs acquired in business combination — 4,326 — Issuances of IRLCs 51,089 51,453 18,415 Settlements of IRLCs (48,902) (54,784) (18,827) Fair value changes recognized in earnings 969 (829) (228) Balance, net—end of period $ 4,453 $ 1,297 $ 1,131 The following is a summary of changes in the fair value of MSRs: Year Ended December 31, 2023 2022 2021 Balance—beginning of period $ 36,261 $ — $ — MSRs acquired in business combination — 33,982 — MSRs originated 565 3,140 — MSRs sales (1,457) (1,662) — Fair value changes recognized in earnings (3,198) 801 — Balance, net—end of period $ 32,171 $ 36,261 $ — The following table presents the carrying amounts and estimated fair values of our convertible senior notes that are not recorded at fair value on our consolidated balance sheets: December 31, 2023 December 31, 2022 Issuance Net Carrying Amount Estimated Fair Value Net Carrying Amount Estimated Fair Value 2023 notes $ — $ — $ 23,431 $ 22,147 2025 notes 192,002 164,113 512,683 309,292 2027 notes 496,735 325,927 565,474 267,398 The difference between the principal amounts of our 2025 notes and our 2027 notes, which were $193,445 and $503,106, respectively, and the net carrying amounts of the notes represents the unamortized debt issuance costs. The estimated fair value of each tranche of convertible senior notes is based on the closing trading price of the notes on the last day of trading for the period and is classified as Level 2 within the fair value hierarchy, due to the limited trading activity of the notes. Based on the closing price of our common stock of $10.32 on December 31, 2023, the if-converted value of both convertible notes were less than the principal amounts. See Note 14 for additional details on our convertible senior notes. See Note 10 for the carrying amount of our convertible preferred stock. Assets and liabilities recognized or disclosed at fair value on a nonrecurring basis include items such as property and equipment, goodwill and other intangible assets, equity investments, and other assets. These assets are measured at fair value if determined to be impaired. The cost or amortized cost, gross unrealized gains and losses, and estimated fair market value of our cash, money market funds, restricted cash, available-for-sale investments, and equity securities were as follows: December 31, 2023 Fair Value Hierarchy Cost or Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash, Cash Equivalents, Restricted Cash Short-term Investments Long-term Investments Cash N/A $ 34,483 $ — $ — $ 34,483 $ 34,483 $ — $ — Money markets funds Level 1 115,276 — — 115,276 115,276 — — Restricted cash N/A 1,241 — — 1,241 1,241 — — U.S. treasury securities Level 1 13,895 1 (27) 13,869 — 10,720 3,149 Agency bonds Level 1 31,246 — (14) 31,232 — 31,232 — Total $ 196,141 $ 1 $ (41) $ 196,101 $ 151,000 $ 41,952 $ 3,149 December 31, 2022 Fair Value Hierarchy Cost or Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash, Cash Equivalents, Restricted Cash Short-term Investments Long-term Investments Cash N/A $ 53,430 $ — $ — $ 53,430 $ 45,790 $ — $ — Money markets funds Level 1 186,410 — — 186,410 186,410 — — Restricted cash N/A 2,406 — — 2,406 2,406 — — U.S. treasury securities Level 1 127,130 28 (753) 126,405 — 96,925 29,480 Agency bonds Level 1 25,339 — (5) 25,334 — 25,334 — Total $ 394,715 $ 28 $ (758) $ 393,985 $ 234,606 $ 122,259 $ 29,480 As of December 31, 2023 and 2022, the aggregate fair value of available-for-sale debt securities in an unrealized loss position totaled $38,684 and $77,277, with aggregate unrealized losses of $41 and $758, respectively. We have evaluated our portfolio of available-for-sale debt securities based on credit quality indicators for expected credit losses and do not believe there are any expected credit losses. In addition, as of December 31, 2023 and 2022, we had not made a decision to sell any of our debt securities held, nor did we consider it more likely than not that we would be required to sell such securities before recovery of our amortized cost basis. Our portfolio consists of U.S. government securities, all with a high quality credit rating issued by various credit agencies. As of December 31, 2023 and 2022, we had accrued interest of $332 and $576, respectively, on our available-for-sale investments, for which we have recorded no expected credit losses. Accrued interest receivable is presented within other current assets in our consolidated balance sheets. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The components of property and equipment were as follows: Useful Lives (years) December 31, 2023 2022 Leasehold improvements Shorter of lease term or economic life $ 28,789 $ 32,262 Website and software development costs 3 - 5 75,573 62,963 Computer and office equipment 3 - 5 16,175 19,702 Software 3 1,869 1,871 Furniture 7 7,754 7,911 Property and equipment, gross 130,160 124,709 Accumulated depreciation and amortization (89,275) (76,597) Construction in progress 5,546 6,827 Property and equipment, net $ 46,431 $ 54,939 The following table summarizes depreciation and amortization and capitalized software development costs: Year Ended December 31, 2023 2022 2021 Depreciation and amortization for property and equipment $ 23,774 $ 24,403 $ 18,200 Capitalized software development costs, including stock-based compensation 16,131 18,738 17,571 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense were as follows: Year Ended December 31, Lease Cost 2023 2022 Operating lease cost: Operating lease cost (cost of revenue) $ 10,874 $ 10,694 Operating lease cost (operating expenses) 7,499 5,394 Short-term lease cost 3,025 5,055 Sublease income (1,408) (951) Total operating lease cost $ 19,990 $ 20,192 Finance lease cost: Amortization of right-of-use assets $ 67 $ 62 Interest on lease liabilities 6 7 Total finance lease cost $ 73 $ 69 Lease Liabilities Other Leases Total Lease Obligations Maturity of Lease Liabilities Operating (2) Financing Operating 2024 $ 17,106 $ 61 $ 1,834 $ 19,001 2025 13,381 38 484 13,903 2026 10,513 16 385 10,914 2027 5,471 11 320 5,802 2028 1,130 — 293 1,423 Thereafter 26 — 250 276 Total lease payments $ 47,627 $ 126 $ 3,566 $ 51,319 Less: Interest (1) 3,052 8 Present value of lease liabilities $ 44,575 $ 118 (1) Includes interest on operating leases of $1,581 and financing leases of $5 due within the next 12 months. (2) Excludes sublease income. As of December 31, 2023, we expect sublease income of approximately $1,677 to be received for the year ended December 31, 2024. December 31, Lease Term and Discount Rate 2023 2022 Weighted-average remaining operating lease term (years) 3.2 3.6 Weighted-average remaining finance lease term (years) 2.5 2.4 Weighted-average discount rate for operating leases 4.5 % 4.5 % Weighted-average discount rate for finance leases 5.4 % 5.4 % Year Ended December 31, Supplemental Cash Flow Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 21,292 $ 21,504 Operating cash outflows from finance leases 6 8 Financing cash outflows from finance leases 55 48 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ 8,597 $ 132 Finance leases 62 — |
Leases | Leases The components of lease expense were as follows: Year Ended December 31, Lease Cost 2023 2022 Operating lease cost: Operating lease cost (cost of revenue) $ 10,874 $ 10,694 Operating lease cost (operating expenses) 7,499 5,394 Short-term lease cost 3,025 5,055 Sublease income (1,408) (951) Total operating lease cost $ 19,990 $ 20,192 Finance lease cost: Amortization of right-of-use assets $ 67 $ 62 Interest on lease liabilities 6 7 Total finance lease cost $ 73 $ 69 Lease Liabilities Other Leases Total Lease Obligations Maturity of Lease Liabilities Operating (2) Financing Operating 2024 $ 17,106 $ 61 $ 1,834 $ 19,001 2025 13,381 38 484 13,903 2026 10,513 16 385 10,914 2027 5,471 11 320 5,802 2028 1,130 — 293 1,423 Thereafter 26 — 250 276 Total lease payments $ 47,627 $ 126 $ 3,566 $ 51,319 Less: Interest (1) 3,052 8 Present value of lease liabilities $ 44,575 $ 118 (1) Includes interest on operating leases of $1,581 and financing leases of $5 due within the next 12 months. (2) Excludes sublease income. As of December 31, 2023, we expect sublease income of approximately $1,677 to be received for the year ended December 31, 2024. December 31, Lease Term and Discount Rate 2023 2022 Weighted-average remaining operating lease term (years) 3.2 3.6 Weighted-average remaining finance lease term (years) 2.5 2.4 Weighted-average discount rate for operating leases 4.5 % 4.5 % Weighted-average discount rate for finance leases 5.4 % 5.4 % Year Ended December 31, Supplemental Cash Flow Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 21,292 $ 21,504 Operating cash outflows from finance leases 6 8 Financing cash outflows from finance leases 55 48 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ 8,597 $ 132 Finance leases 62 — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings Below is a discussion of our material, pending legal proceedings. Except as otherwise indicated, given the preliminary stage of these proceedings and the claims and issues presented, we cannot estimate a range of reasonably possible losses. In addition, we are regularly subject to claims, litigation, and other proceedings, including potential regulatory proceedings, involving employment, intellectual property, privacy and data protection, consumer protection, competition and antitrust laws, and commercial or contractual disputes, and other matters. The outcomes of our legal proceedings and other contingencies are inherently unpredictable, subject to significant uncertainties, and could be material to our operating results and cash flows for a particular period. We evaluate, on a regular basis, developments in our legal proceedings and other contingencies that could affect the amount of liability, including amounts in excess of any previous accruals and reasonably possible losses disclosed, and make adjustments and changes to our accruals and disclosures as appropriate. For the matters we disclose that do not include an estimate of the amount of loss or range of losses, such an estimate is not possible or is immaterial, and we may be unable to estimate the possible loss or range of losses that could potentially result from the application of non-monetary remedies. Until the final resolution of such matters, if any of our estimates and assumptions change or prove to have been incorrect, we may experience losses in excess of the amounts recorded, which could have a material effect on our business, consolidated financial position, results of operations, or cash flows. Except for the matters discussed below, we do not believe that any of our pending litigation, claims, and other proceedings are material to our business. Lawsuit by David Eraker —On May 11, 2020, David Eraker, our co-founder and former chief executive officer who departed Redfin in 2006, filed a complaint through Appliance Computing III, Inc. (d/b/a Surefield) ("Surefield"), which is a company that Mr. Eraker founded and that we believe he controls, in the U.S. District Court for the Western District of Texas, Waco Division. The complaint alleged that we were infringing four patents claimed to be owned by Surefield without its authorization or license. Surefield sought an unspecified amount of damages and an injunction against us offering products and services that allegedly infringe the patents at issue. On May 17, 2022, the jury returned a verdict in our favor, finding that we did not infringe any of the asserted claims of the patents claimed to be owned by Surefield, and accordingly, we do not owe any damages to Surefield. The jury also found that all asserted claims of Surefield’s claimed patents were invalid. The court entered final judgment on August 15, 2022. On September 12, 2022, Surefield filed a motion for judgment as a matter of law and a motion for a new trial. In the motions, Surefield asserts that no jury could have found non-infringement based on the trial record, among other things. We filed oppositions to the motions on October 3, 2022 and Surefield filed replies on October 21, 2022. Lawsuits Alleging Misclassification —On August 28, 2019, Devin Cook, who was one of our former independent contractor licensed sales associates, whom we call associate agents, filed a complaint against us in the Superior Court of California, County of San Francisco. The plaintiff initially pled the complaint as a class action and alleged that we misclassified her as an independent contractor instead of an employee. The plaintiff also sought unspecified penalties pursuant to representative claims under California’s Private Attorney General Act ("PAGA"). On January 30, 2020, the plaintiff filed a first amended complaint dismissing her class action claim and asserting only claims under PAGA. On November 20, 2020, Jason Bell, who was one of our former lead agents as well as a former associate agent, filed a complaint against us in the U.S. District Court for the Southern District of California. The complaint was pled as a class action and alleges that, (1) during the time he served as an associate agent, we misclassified him as an independent contractor instead of an employee and (2) during the time he served as a lead agent, we misclassified him as an employee who was exempt from minimum wage and overtime laws. The plaintiff also asserted representative claims under PAGA. The plaintiff sought unspecified amounts of unpaid overtime wages, regular wages, meal and rest period compensation, waiting time and other penalties, injunctive and other equitable relief, and plaintiff's attorneys' fees and costs. On May 23, 2022, pursuant to a combined mediation, we settled the lawsuits brought by Ms. Cook and Mr. Bell for an aggregate of three million dollars. This amount is subject to adjustment if our actual number of associate agents, lead agents, or their respective workweeks differs from the number that we represented to the plaintiffs. This settlement was subject to court approval. On April 7, 2023, plaintiffs filed a motion for preliminary approval of the class settlements. The motion for preliminary approval of the class settlement was granted by the court on May 4, 2023. The motion for final approval of the class settlement was granted on November 28, 2023. The settlement funds have been paid and are being distributed to class members. Lawsuits Alleging Antitrust Violations —Since October 2023, a number of class action lawsuits have been filed on behalf of putative classes of home buyers and home sellers against the National Association of Realtors, local real estate associations, multiple listing services, and various residential real estate brokerages in various federal districts in the United States. Some of these lawsuits name Redfin as a defendant, including: • Don Gibson, et al. v. National Association of Realtors, et al. , Case no. 4:23-cv-00788-SRB, filed on October 31, 2023 in United States District Court for the Western District of Missouri. • Mya Batton et al. v. Compass, Inc., et al. , Case no. 1:23-cv-15618, filed on November 2, 2023 in United States District Court for the Northern District of Illinois. • 1925 Hooper LLC, et al. v. The National Association of Realtors, et al. , Case no. 1:23-cv-05392-SEG, filed on December 6, 2023 in the United States District Court for the Northern District of Georgia. • Daniel Umpa v. The National Association of Realtors, et al. , Case no. 4:23-cv-00945-FJG, filed on December 27, 2023 in the United States District Court for the Western District of Missouri. • Nathaniel Whaley v. National Association of Realtors, et al. , Case no. 2:24-cv-00105-GMN-MDC, filed on January 25, 2024 in the United States District Court for the District of Nevada. • Angela Boykin v. National Association of Realtors, et al. , Case No. 2:24-cv-00340, filed on February 16, 2024 in the United States District Court for the District of Nevada. • Freedlund v. Redfin Corporation, et al. , Case No. 2:24-cv-01561, filed on February 26, 2024 in the United States District Court for the Central District of California. These lawsuits allege a conspiracy to fix prices stemming from a National Association of Realtors rule, which allegedly requires brokers to make a blanket, non-negotiable offer of buyer broker compensation when listing a property on a multiple listing service. The plaintiffs generally seek injunctive relief, unspecified damages under federal antitrust law, and unspecified damages under various state laws. A motion to consolidate some of these cases as In re Real Estate Commission Antitrust Litigation , MDL No. 3100, is pending before the Judicial Panel on Multidistrict Litigation. At this time, we are unable to predict the potential outcome of these lawsuits. Commitments Purchase Commitments —Purchase commitments primarily relate to network infrastructure for our data operations. Future payments due under these agreements as of December 31, 2023 are as follows: Purchase Commitments 2024 $ 27,205 2025 31,926 2026 34,161 2027 18,098 2028 — Thereafter — Total future minimum payments $ 111,390 Other Commitments |
Acquired Intangible Assets and
Acquired Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets and Goodwill | Acquired Intangible Assets and Goodwill Acquired Intangible Assets —The following table presents the gross carrying amount and accumulated amortization of intangible assets: December 31, 2023 December 31, 2022 Weighted-Average Useful Gross Accumulated Net Gross Accumulated Net Trade names 9.3 $ 82,690 $ (24,290) $ 58,400 $ 82,690 $ (14,856) $ 67,834 Developed technology 3.3 66,340 (59,883) 6,457 66,340 (38,465) 27,875 Customer relationship 10 81,360 (22,933) 58,427 81,360 (14,797) 66,563 $ 230,390 $ (107,106) $ 123,284 $ 230,390 $ (68,118) $ 162,272 Our intangible assets are amortized on a straight-line basis over their respective estimated useful lives to a split between general and administrative and cost of revenue for customer relationships and trade names; and developed technology intangible assets are split between general and administrative expense, cost of revenue, and technology and development expense in our consolidated statements of comprehensive loss. Amortization expense amounted to $38,988 and $38,167 for the years ended December 31, 2023 and 2022, respectively. The following table presents our estimate of remaining amortization expense for intangible assets that existed as of December 31, 2023: 2024 $ 23,741 2025 17,618 2026 17,380 2027 15,633 2028 15,050 Thereafter 33,862 Estimated remaining amortization expense $ 123,284 Goodwill— The carrying amounts of goodwill by reportable segment were as follows: Real Estate Services Rentals Mortgage Total Balance as of December 31, 2023 and 2022 $ 250,231 $ 159,151 $ 51,967 $ 461,349 We did not recognize any goodwill impairment charges during the years ended December 31, 2023 or 2022. |
Accrued and Other Liabilities
Accrued and Other Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued and Other Liabilities | Accrued and Other Liabilities The components of accrued and other liabilities were as follows: December 31, 2023 2022 Accrued compensation and benefits $ 58,836 $ 74,079 Miscellaneous accrued and other liabilities 26,037 27,023 Customer contract liabilities 5,487 5,661 Total accrued and other liabilities $ 90,360 $ 106,763 |
Mezzanine Equity
Mezzanine Equity | 12 Months Ended |
Dec. 31, 2023 | |
Temporary Equity Disclosure [Abstract] | |
Mezzanine Equity | Mezzanine Equity On April 1, 2020, we issued 4,484,305 shares of our common stock, at a price of $15.61 per share, and 40,000 shares of our preferred stock, at a price of $1,000 per share, for aggregate gross proceeds of $110,000. We designated this preferred stock as Series A Convertible Preferred Stock (our "convertible preferred stock"). Our convertible preferred stock is classified as mezzanine equity in our consolidated financial statements as the substantive conversion features at the option of the holder precludes liability classification. We have determined there are no material embedded features that require recognition as a derivative asset or liability. We allocated the gross proceeds of $110,000 to the common stock issuance and the convertible preferred stock issuance based on the standalone fair value of the issuances, resulting in a fair valuation of $40,000 for the preferred stock, which is also the value of the mandatory redemption amount. As of December 31, 2023, the carrying value of our convertible preferred stock, net of issuance costs, is $39,959, and holders have earned unpaid stock dividends in the amount of 30,640 shares of common stock. This stock dividend was issued on January 2, 2024. These shares are included in basic and diluted net loss from continuing operations per share attributable to common stock, as described in Note 12. As of December 31, 2023, no shares of the preferred stock have been converted, and the preferred stock was not redeemable, nor probable to become redeemable in the future as there is a more than remote chance the shares will be automatically converted prior to the mandatory redemption date. The number of shares of common stock reserved for future issuance resulting from dividends, conversion, or redemption with respect to the preferred stock was 2,622,177 as of the issuance date. Dividends —The holders of our convertible preferred stock are entitled to dividends. Dividends accrue daily based on a 360 day fiscal year at a rate of 5.5% per annum based on the issue price and are payable quarterly in arrears on the first business day following the end of each calendar quarter. Assuming we satisfy certain conditions, we will pay dividends in shares of common stock at a rate of the dividend payable divided by $17.95. If we do not satisfy such conditions, we will pay dividends in a cash amount equal to (i) the dividend shares otherwise issuable on the dividends multiplied by (ii) the volume-weighted average closing price of our common stock for the ten trading days preceding the date the dividends are payable. Participation Rights —Holders of our convertible preferred stock are entitled to dividends paid and distributions made to holders of our common stock to the same extent as if such preferred stockholders had converted their shares of preferred stock into common stock and held such shares on the record date for such dividends and distributions. Conversion —Holders may convert their convertible preferred stock into common stock at any time at a rate per share of preferred stock equal to the issue price divided by $19.51 (the "conversion price"). A holder that converts will also receive any dividend shares resulting from accrued dividends. Our convertible preferred stock may also be automatically converted to shares of our common stock. If the closing price of our common stock exceeds $27.32 per share (i) for each day of the 30 consecutive trading days immediately preceding April 1, 2023 or (ii) following April 1, 2023 until 30 trading days prior to November 30, 2024, for each day of any 30 consecutive trading days, then each outstanding share of preferred stock will automatically convert into a number of shares of our common stock at a rate per share of preferred stock equal to the issue price divided by the conversion price. Upon an automatic conversion, a holder will also receive any dividend shares resulting from accrued dividends. Redemption —On November 30, 2024, we will be required to redeem any outstanding shares of our convertible preferred stock, and each holder may elect to receive cash, shares of common stock, or a combination of cash and shares. If a holder elects to receive cash, we will pay, for each share of preferred stock, an amount equal to the issue price plus any accrued dividends. If a holder elects to receive shares, we will issue, for each share of preferred stock, a number of shares of common stock at a rate of the issue price divided by the conversion price plus any dividend shares resulting from accrued dividends. A holder of our convertible preferred stock has the right to require us to redeem up to all shares of preferred stock it holds following certain events outlined in the document governing the preferred stock. If a holder redeems as the result of such events, such holder may elect to receive cash or shares of common stock, as calculated in the same manner as the mandatory redemption described above. Additionally, such holder will also receive, in cash or shares of common stock as elected by the holder, an amount equal to all scheduled dividend payments on the preferred stock for all remaining dividend periods from the date the holder gives its notice of redemption. Liquidation Rights —Upon our liquidation, dissolution, or winding up, holders of our convertible preferred stock will be entitled to receive cash out of our assets prior to holders of the common stock. |
Equity and Equity Compensation
Equity and Equity Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity and Equity Compensation Plans | Equity and Equity Compensation Plans Common Stock —As of December 31, 2023 and 2022, our amended and restated certificate of incorporation authorized us to issue 500,000,000 shares of common stock with a par value of $0.001 per share. Preferred Stock —As of December 31, 2023 and 2022, our amended and restated certificate of incorporation authorized us to issue 10,000,000 shares of preferred stock with a par value of $0.001 per share. Amended and Restated 2004 Equity Incentive Plan —We granted stock options under our 2004 Equity Incentive Plan, as amended ("2004 Plan"), until July 26, 2017, when we terminated it in connection with our IPO. Accordingly, no shares are available for future issuance under our 2004 Plan. Our 2004 Plan continues to govern outstanding equity awards granted thereunder, all of which are fully vested. The term of each stock option under the plan is no more than 10 years, and each stock option generally vests over a four-year period. 2017 Equity Incentive Plan —Our 2017 Equity Incentive Plan ("2017 EIP") became effective on July 26, 2017 and provides for issuance of incentive and nonqualified common stock options and restricted stock units to employees, directors, officers, and consultants. The number of shares of common stock initially reserved for issuance under our 2017 EIP was 7,898,159. The number of shares reserved for issuance under our 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 our common stock as of the immediately preceding December 31 or an amount determined by our board of directors. The term of each stock option and restricted stock unit under the plan will not exceed 10 years, and each award generally vests between two We have reserved shares of common stock for future issuance under our 2017 EIP as follows: December 31, 2023 2022 Stock options issued and outstanding 2,406,453 3,282,789 Restricted stock units outstanding 15,947,173 15,731,632 Shares available for future equity grants 7,991,532 7,951,616 Total shares reserved for future issuance 26,345,158 26,966,037 2017 Employee Stock Purchase Plan —Our 2017 Employee Stock Purchase Plan ("ESPP") was approved by the board of directors on July 27, 2017, and enables eligible employees to purchase shares of our common stock at a discount. Purchases will be accomplished through participation in discrete offering periods. We initially reserved 1,600,000 shares of common stock for issuance under our ESPP. The number of shares reserved for issuance under our 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 our common stock as of the immediately preceding December 31 or an amount determined by our board of directors. On each purchase date, eligible employees will purchase our common stock at a price per share equal to 85% of the lesser of (i) the fair market value of our common stock on the first trading day of the offering period, and (ii) the fair market value of our common stock on the purchase date. We have reserved shares of common stock for future issuance under our ESPP as follows: December 31, 2023 2022 Shares available for issuance at beginning of period 4,695,361 5,865,467 Shares issued during the period (1,491,040) (1,170,106) Total shares available for issuance at end of period 3,204,321 4,695,361 The weighted-average grant date fair value and the assumptions used in calculating fair values of shares forecasted to be issued pursuant to our ESPP are as follows: For the Offering Period beginning July 1, 2023 For the Offering Period beginning January 1, 2023 Expected life 0.5 years 0.5 years Volatility 98.62% 98.94% Risk-free interest rate 5.53% 4.77% Dividend yield —% —% Weighted-average grant date fair value $5.22 $1.46 Stock Options —Option activity for the year ended December 31, 2023 was as follows: Number Of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value Outstanding at January 1, 2023 3,282,789 $ 9.10 2.90 $ 1,145 Options exercised (801,866) 2.99 Options expired (74,470) 8.97 Outstanding at December 31, 2023 2,406,453 $ 11.14 2.63 $ 3,355 Options exercisable at December 31, 2023 2,406,453 $ 11.14 2.63 $ 3,355 The grant date fair value of our stock options was recorded as stock-based compensation over the stock options' vesting period. All outstanding options were fully vested as of December 31, 2023. We did not recognize any option-related expense during the year ended December 31, 2023. The fair value of stock options vested and the intrinsic value of stock options exercised are as follows: Year Ended December 31, 2023 2022 2021 Fair value of options vested $ — $ 484 $ 793 Intrinsic value of options exercised 4,160 5,588 90,920 Restricted Stock Units —Restricted stock unit activity for the year ended December 31, 2023 was as follows: Restricted Stock Units Weighted-Average Grant Date Fair Value Outstanding at January 1, 2023 15,731,632 $ 11.53 Granted 9,328,065 8.44 Vested (6,955,493) 11.81 Forfeited or canceled (2,157,031) 11.25 Outstanding or deferred at December 31, 2023 (1) 15,947,173 $ 9.64 (1) Starting with the restricted stock units granted to them in June 2019, our non-employee directors have the option to defer the issuance of common stock receivable upon vesting of such restricted stock units until 60 days following the day they are no longer providing services to us or, if earlier, upon a change in control transaction. The amount reported as vested excludes restricted stock units that have vested but whose settlement into shares have been deferred. The amount reported as outstanding or deferred as of December 31, 2023 includes these restricted stock units. As no further conditions exist to prevent the issuance of the shares of common stock underlying these restricted stock units, the shares are included in the basic and diluted weighted shares outstanding used to calculate net loss per share attributable to common stock. The amount of shares whose issuance have been deferred is not considered material and is not reported separately from stock-based compensation in our consolidated statements of changes in mezzanine equity and stockholders’ equity. The grant date fair value of restricted stock units is recorded as stock-based compensation over the vesting period. As of December 31, 2023, there was $117,005 of total unrecognized stock-based compensation expense related to restricted stock units, which is expected to be recognized over a weighted-average period of 2.11 years. As of December 31, 2023, there were 2,316,061 restricted stock units subject to performance and market conditions ("PSUs") outstanding at 100% of the target level. Depending on our achievement of the performance and market conditions, the actual number of shares of common stock issuable upon vesting of PSUs will range from 0% to 200% of the target amount. For each PSU recipient, the awards will vest only if the recipient is continuing to provide service to us upon our board of directors, or its compensation committee, certifying that we have achieved the PSUs' related performance or market conditions. Stock-based compensation expense for PSUs with performance conditions will be recognized when it is probable that the performance conditions will be achieved. For PSUs with market conditions, the market condition is reflected in the grant date fair value of the award and the expense is recognized over the life of the award. Stock-compensation expense associated with the PSUs is as follows: Year Ended December 31, 2023 2022 2021 Expense associated with the current period $ 2,994 $ 5,341 $ 6,314 Expense due to reassessment of achievement related to prior periods (553) (267) — Total expense $ 2,441 $ 5,074 $ 6,314 Compensation Cost —The following table details, for each period indicated, (i) our stock-based compensation 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, each as included in our consolidated statements of comprehensive loss: Year Ended December 31, 2023 2022 2021 Cost of revenue $ 12,914 $ 15,137 $ 12,388 Technology and development (1) 33,111 26,365 21,172 Marketing 5,148 3,991 2,142 General and administrative 19,528 17,526 13,843 Stock-based compensation from continuing operations 70,701 63,019 49,545 Stock-based compensation from discontinued operations 234 5,238 5,177 Total stock-based compensation $ 70,935 $ 68,257 $ 54,722 (1) Net of $4,003, $3,660 and $4,059 of stock-based compensation expense capitalized for internally developed software for the years ended December 31, 2023, 2022 and 2021, respectively. |
Net Loss per Share Attributable
Net Loss per Share Attributable to Common Stock | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Common Stock | Net Loss from Continuing Operations per Share Attributable to Common Stock Net loss from continuing operations per share attributable to common stock is computed by dividing the net loss from continuing operations attributable to common stock by the weighted-average number of common shares outstanding. We have outstanding stock options, restricted stock units, options to purchase shares under our ESPP, convertible preferred stock, and convertible senior notes, which are considered in the calculation of diluted net loss from continuing operations per share whenever doing so would be dilutive. We calculate basic and diluted net loss from continuing operations per share attributable to common stock in conformity with the two-class method required for companies with participating securities. We consider our convertible preferred stock to be a participating security. Under the two-class method, net loss from continuing operations attributable to common stock is not allocated to the preferred stock as its holders do not have a contractual obligation to share in losses, as discussed in Note 10. The calculation of basic and diluted net loss per share attributable to common stock was as follows: Year Ended December 31, 2023 2022 2021 Numerator: Net loss from continuing operations $ (126,392) $ (249,797) $ (91,224) Dividends on convertible preferred stock (1,074) (1,560) (7,269) Net loss from continuing operations attributable to common stock—basic and diluted $ (127,466) $ (251,357) $ (98,493) Denominator: Weighted-average shares—basic and diluted (1) 113,152,752 107,927,464 104,683,460 Net loss from continuing operations per share attributable to common stock—basic and diluted $ (1.13) $ (2.33) $ (0.94) (1) Basic and diluted weighted-average shares outstanding include (i) common stock earned but not yet issued related to share-based dividends on our convertible preferred stock, and (ii) restricted stock units whose settlement into common stock were deferred at the option of certain non-employee directors. The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss from continuing operations per share attributable to common stock for the periods presented because their effect would have been anti-dilutive. Year Ended December 31, 2023 2022 2021 2023 notes as if converted — 769,623 769,623 2025 notes as if converted 2,667,993 7,154,297 9,119,960 2027 notes as if converted 5,379,209 6,147,900 6,147,900 Convertible preferred stock as if converted 2,040,000 2,040,000 2,040,000 Stock options outstanding (1) 2,406,453 3,282,789 4,019,011 Restricted stock units outstanding (1)(2) 15,908,735 15,710,223 4,589,696 Total 28,402,390 35,104,832 26,686,190 (1) Excludes 2,316,061 incremental PSUs that could vest, assuming applicable performance criteria and market conditions are achieved at 200% of target, which is the maximum achievement level. See Note 11 for additional information regarding PSUs. (2) Excludes 38,438 restricted stock units whose settlement into common stock were deferred at the option of certain non-employee directors as of December 31, 2023. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table represents the significant components of our deferred tax assets and liabilities for the periods presented: December 31, 2023 2022 Deferred income tax assets Net operating loss carryforwards $ 160,329 $ 164,242 Business interest limitation carryforwards 35,402 34,445 Tax credit carryforwards 23,968 23,240 Lease liabilities 11,472 15,019 Capitalized research and development costs 50,780 32,216 Other 15,108 30,719 Gross deferred income tax assets 297,059 299,881 Valuation allowance (257,563) (245,212) Total deferred income tax assets, net of valuation allowance 39,496 54,669 Deferred income tax liabilities Intangible assets (29,608) (40,069) Right-of-use assets (8,155) (11,225) Other (1,997) (3,618) Total deferred income tax liabilities (39,760) (54,912) Net deferred income tax assets and liabilities $ (264) $ (243) In determining the realizability of the net U.S. federal and state deferred tax assets, we consider numerous factors including historical profitability, estimated future taxable income, prudent and feasible tax planning strategies, and the industry in which we operate. Management reassesses the realization of the deferred tax assets each reporting period, which resulted in a valuation allowance against the full amount of our U.S. deferred tax assets for all periods presented. To the extent that the financial results of our U.S. operations improve in the future and the deferred tax assets become realizable, we will reduce the valuation allowance through earnings. The following table represents our net operating loss ("NOL") carryforwards as of December 31, 2023 and 2022: December 31, 2023 2022 Federal $ 642,212 $ 651,498 Various states 32,234 34,718 Foreign 5,363 5,255 Federal NOL carryforwards are available to offset federal taxable income with NOL carryforwards of $449,434 generated after 2017 available to offset future U.S. federal taxable income over an indefinite period, and the remainder expiring between 2024 and 2037. State NOL carryforwards are available to offset future taxable income and begin to expire in 2024. NOL carryforward periods for the various states jurisdictions generally range from 5 to 20 years. Foreign NOL carryforward periods for foreign federal and provincial jurisdictions are generally 20 years and will begin to expire in 2039. Net research and development credit carryforwards of $23,968 and $23,240 are available as of December 31, 2023 and 2022, respectively, to reduce future tax liabilities. The research and development credit carryforwards begin to expire in 2026. Deductible but limited federal business interest expense carryforwards of $149,464 and $145,296 are available as of December 31, 2023 and 2022, respectively, to offset future U.S. federal taxable over an indefinite period. Under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, substantial changes in our ownership may limit the amount of NOL and income tax credit carryforwards that could be utilized annually in the future to offset taxable income and income tax liabilities. Any such annual limitation may significantly reduce the utilization of the NOLs and income tax credits before they expire. A Section 382 limitation study performed as of March 31, 2017 determined that we experienced an ownership change in 2006 with $1,506 of the 2006 NOL, and $32 of the 2006 research and development tax credit unavailable for future use. Furthermore, in connection with the acquisition of Rent., Rent. experienced an ownership change that triggered Section 382. As of September 30, 2021, Rent. completed a Section 382 limitation study and, based on this analysis, we do not expect a reduction in our ability to fully utilize Rent.’s pre-change NOLs. The components of loss from continuing operations before benefit for income taxes for the years ended December 31, 2023, 2022, and 2021 were $(125,110), $(246,880), and $(95,873), for federal purposes, respectively, and $(303), $(2,801), and $(1,458), for foreign purposes, respectively. The following table is a reconciliation of the U.S. federal income tax at statutory rate to our effective income tax rate: December 31, 2023 2022 2021 U.S. federal income tax at statutory rate 21.00 % 21.00 % 21.00 % State taxes (net of federal benefit) 3.26 5.02 9.31 Stock-based compensation (5.18) (3.24) 17.70 Permanent differences (0.36) (0.18) (0.14) Federal research and development credit 0.58 1.77 6.43 Change in valuation allowance (11.62) (20.12) (44.33) Other (0.82) 0.26 (1.99) Acquisition costs — (0.02) (1.71) Expiration of tax attribute carryforwards (7.63) (4.54) — Effective income tax rate (0.77) % (0.05) % 6.27 % The difference between the U.S. federal income tax at statutory rate of 21% for the years ended December 31, 2023, 2022, and 2021, and our effective tax rate in all periods is primarily due to a full valuation allowance related to our U.S. deferred tax assets and the impact of U.S. states where we incur current income tax expense. We recorded an income tax expense of $979 for the year ended December 31, 2023, which in part consists of current state income tax expense recorded for the year ended December 31, 2023. Tax expense for the year ended December 31, 2023 also includes federal and state deferred income tax expense generated by an increase to an indefinite-lived deferred tax liabilities created through our April 2, 2021 acquisition of Rent. and our April 1, 2022 acquisition of Bay Equity. We recorded an income tax expense of $116 for the year ended December 31, 2022, which is primarily a result of a deferred tax liability created through our April 2, 2021 acquisition of Rent. and can be used to realize certain deferred tax assets against which we had previously recorded a full valuation allowance. Our deferred income tax benefit was partially offset by current state income tax expense recorded for the year ended December 31, 2022. We recorded an income tax benefit of $6,107 for the year ended December 31, 2021, which is primarily a result of a deferred tax liability created through our April 2, 2021 acquisition of Rent. and can be used to realize certain deferred tax assets against which we had previously recorded a full valuation allowance. Our deferred income tax benefit was partially offset by current state income tax expense recorded for the year ended December 31, 2021. The following table summarizes the components of our income tax expense (benefit) from continuing operations for the periods presented: December 31, 2023 2022 2021 Current income tax expense: U.S. - State $ 959 $ 1,074 $ 1,215 Total current income tax expense 959 1,074 1,215 Deferred income tax benefit: U.S. - Federal 16 97 — U.S. - State 4 (1,055) (7,322) Total deferred income tax benefit 20 (958) (7,322) Total income tax expense (benefit) $ 979 $ 116 $ (6,107) We account for uncertainty in income taxes in accordance with ASC 740. Tax positions are evaluated utilizing a two-step process, whereby we first determine whether it is more likely than not that a tax position will be sustained upon examination by the tax authority, including resolutions of any related appeals or litigation processes, based on technical merit. If a tax position meets the more-likely-than-not recognition threshold, it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The following table summarizes the activity related to unrecognized tax benefits: December 31, 2023 2022 2021 Unrecognized benefit—beginning of year $ 5,809 $ 4,692 $ 3,105 Gross (decreases) increases—prior year tax positions (527) (210) 32 Gross increases—current year tax positions 709 1,327 1,555 Unrecognized benefit—end of year $ 5,991 $ 5,809 $ 4,692 All of the unrecognized tax benefits as of December 31, 2023 and 2022 are accounted for as a reduction in our deferred tax assets. Due to our valuation allowance, none of the $5,991 and $5,809 of unrecognized tax benefits would affect our effective tax rate, if recognized. We do not believe it is reasonably possible that our unrecognized tax benefits will significantly change in the next 12 months. We recognize interest and penalties related to unrecognized tax benefits as income tax expense. There was no interest or penalties accrued related to unrecognized tax benefits for each year ended December 31, 2023 and 2022 and no liability for accrued interest or penalties related to unrecognized tax benefits as of December 31, 2023. Our material income tax jurisdictions are the United States (federal) and Canada (foreign). As a result of NOL carryforwards, we are subject to audit for all tax years for federal and foreign purposes. All tax years remain subject to examination in various other jurisdictions that are not material to our consolidated financial statements. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of December 31, 2023, outstanding borrowings of our debt are as follows: Maturity of Debt Lender 2024 2025 2026 2027 2028 Thereafter Warehouse Credit Facilities City National Bank $ 20,046 $ — $ — $ — $ — $ — Origin Bank 30,110 — — — — — M&T Bank 18,870 — — — — — Prosperity Bank 29,358 — — — — — Republic Bank & Trust Company 23,415 — — — — — Wells Fargo Bank, N.A. 30,165 — — — — — Term Loan — — — — 124,416 — Convertible Senior Notes 2025 notes — 192,002 — — — — 2027 notes — — — 496,735 — — Total borrowings $ 151,964 $ 192,002 $ — $ 496,735 $ 124,416 $ — Warehouse Credit Facilities —To provide capital for the mortgage loans that it originates, our mortgage segment utilizes warehouse credit facilities that are classified as current liabilities on our consolidated balance sheets. Borrowings under each warehouse credit facility are secured by the related mortgage loan, and rights and income related to the loans. Each warehouse credit facility contains various restrictive and financial covenants and provides that a breach or failure to satisfy these covenants constitutes an event of default. As of December 31, 2023 we received a waiver of our financial covenants pursuant to the Republic Bank & Trust Company credit facility. The following table summarizes borrowings under these facilities as of the periods presented: December 31, 2023 December 31, 2022 Lender Borrowing Capacity Outstanding Borrowings Weighted-Average Interest Rate on Outstanding Borrowings Borrowing Capacity Outstanding Borrowings Weighted-Average Interest Rate on Outstanding Borrowings City National Bank $ 50,000 $ 20,046 7.24 % $ 75,000 $ 27,288 5.89 % Comerica Bank N/A N/A N/A 75,000 26,526 6.36 % Origin Bank 75,000 30,110 7.25 % 75,000 23,739 5.98 % M&T Bank 50,000 18,870 7.39 % 50,000 19,126 6.45 % Prosperity Bank 75,000 29,358 7.23 % 100,000 35,856 6.18 % Republic Bank & Trust Company 45,000 23,415 7.28 % 75,000 26,636 5.81 % Wells Fargo Bank, N.A. 100,000 30,165 7.36 % 100,000 31,338 6.41 % Total $ 395,000 $ 151,964 $ 550,000 $ 190,509 Term Loan —On October 20, 2023, we entered into a definitive agreement with Apollo Capital Management, L.P. and its affiliates (“Apollo”) whereby Apollo agreed to commit up to $250,000 of financing for us in the form of a first lien term loan facility (the “facility”). We borrowed half of the loan on October 20, 2023 and the remainder will be available as a delayed draw during the following 12 months. The facility is pre-payable at par, after 12 months of call protection (during which prepayment would be at 101% of par), or with respect to prepayments made with respect to a change of control, at 101% of par, and carries a five-year term, maturing October 20, 2028. Interest will be charged at the Secured Overnight Financing Rate (“SOFR”) +575 basis points for the first five full fiscal quarters after closing, with step-downs to SOFR +550 basis points and SOFR +525 basis points thereafter upon achieving agreed performance metrics. The facility requires that we maintain cash and cash equivalents of $75,000 which is tested on a quarterly basis. The negative covenants include restrictions on the incurrence of liens and indebtedness, investments, certain merger transactions, and other matters, all subject to certain exceptions. The effective interest rate for our term loan is 11.97%. The facility includes customary events of default that, include among other things, non-payment of principal, interest or fees, inaccuracy of representations and warranties, violation of certain covenants, cross default to certain other indebtedness, bankruptcy and insolvency events, material judgments, change of control, and certain material ERISA events. The occurrence of an event of default could result in the acceleration of the obligations under the facility. In addition, the facility prohibits us from making any cash payments on the conversion or repurchase of our notes if an event of default exists under our term loan facility, or if, after giving effect to such conversion or repurchase, we would not be in compliance with the financial covenants under our term loan facility. As security for our obligations under the facility, we granted Apollo a first priority security interest on substantially all of our assets and the assets of our material subsidiaries, subject to certain exceptions. Therefore, in a bankruptcy, Apollo first, and the holders of our convertible senior notes second, would have a claim to our assets senior to the claims of holders of our common stock. As part of the transaction, we repurchased $5,000 principal amount of our 2025 convertible notes held by Apollo and $71,894 principal amount of 2027 convertible notes held by Apollo for an aggregate repurchase price of $57,075 using cash on our balance sheet. Additionally, we paid $2,471 in debt issuance costs in connection with the Apollo term loan, which is currently recorded in prepaid expenses on our consolidated balance sheet. The components of the term loan were as follows: December 31, 2023 Aggregate Principal Amount Unamortized Debt Discount Unamortized Debt Issuance Costs Net Carrying Amount 124,688 — 272 124,416 Convertible Senior Notes —We have issued convertible senior notes with the following characteristics: Issuance Maturity Date Stated Cash Interest Rate Effective Interest Rate First Interest Payment Date Semi-Annual Interest Payment Dates Conversion Rate 2025 notes October 15, 2025 — % 0.42 % — — 13.7920 2027 notes April 1, 2027 0.50 % 0.90 % October 1, 2021 April 1; October 1 10.6920 We issued our 2025 notes on October 20, 2020, with an aggregate principal amount of $661,250. We issued our 2027 notes on March 25, 2021 and April 5, 2021, with an aggregate principal amount of $575,000. The following table describes repurchase activity for the year ended December 31, 2023: Repurchase Program Repurchases in Conjunction with Apollo Term Loan Issuance Principal Cash Paid Gain on Extinguishment Principal Cash Paid Gain on Extinguishment 2025 notes 320,283 241,808 75,204 5,000 4,075 664 2027 notes — — — 71,894 46,754 18,151 The components of the convertible senior notes are as follows: December 31, 2023 Issuance Aggregate Principal Amount Unamortized Debt Issuance Costs Net Carrying Amount 2025 notes 193,445 1,443 192,002 2027 notes 503,106 6,371 496,735 December 31, 2022 Issuance Aggregate Principal Amount Unamortized Debt Issuance Costs Net Carrying Amount 2023 notes $ 23,512 $ 81 $ 23,431 2025 notes 518,728 6,045 512,683 2027 notes 575,000 9,526 565,474 Year End December 31, 2023 2022 2021 2023 notes Contractual interest expense $ 223 $ 411 $ 413 Amortization of debt issuance costs 81 150 189 Total interest expense $ 304 $ 561 $ 602 2025 notes Contractual interest expense — — — Amortization of debt issuance costs 4,602 2,706 2,760 Total interest expense $ 4,602 $ 2,706 $ 2,760 2027 notes Contractual interest expense 2,785 2,875 2,187 Amortization of debt issuance costs 3,151 2,240 1,705 Total interest expense $ 5,936 $ 5,115 $ 3,892 Total Contractual interest expense 3,008 3,286 2,600 Amortization of debt issuance costs 7,834 5,096 4,654 Total interest expense $ 10,842 $ 8,382 $ 7,254 Conversion of Our Convertible Senior Notes Prior to the free conversion date, a holder of each tranche of our convertible senior notes may convert its notes in multiples of $1,000 principal amount only if one or more of the conditions described below is satisfied. On or after the free conversion date, a holder may convert its notes in such multiples without any conditions. The free conversion date is July 15, 2025 for our 2025 notes and January 1, 2027 for our 2027 notes. The conditions are: • during any calendar quarter (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price on each applicable trading day; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the applicable notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the applicable conversion rate on each such trading day; • if we call any or all of the applicable notes for redemption, at any time prior to the close of business on the scheduled trading day prior to the redemption date; or • upon the occurrence of specified corporate events. We intend to settle any future conversions of our convertible senior notes by paying or delivering, as the case may be, cash, shares of our common stock, or a combination of cash and shares of our common stock, at our election. We apply the if-converted method to calculate diluted earnings per share when applicable. Under the if-converted method, the denominator of the diluted earnings per share calculation is adjusted to reflect the full number of common shares issuable upon conversion, while the numerator is adjusted to add back interest expense for the period. None of the above conditions were satisfied during the year ended December 31, 2023. Classification of Our Convertible Senior Notes Historically, we had separated our 2025 notes into liability and equity components. With our adoption of ASU 2020-06 on January 1, 2021, using the modified retrospective approach, this accounting treatment is no longer applicable. All of our convertible senior notes are now accounted for wholly as liabilities. The difference between the principal amount of the notes and the net carrying amount represents the unamortized debt discount, which we record as a deduction from the debt liability in our consolidated balance sheets. This discount is amortized to interest expense using the effective interest method over the term of the notes. See Note 4 for fair value information related to our convertible senior notes. Cross-acceleration and Cross-default Provisions of our Convertible Senior Notes, Term Loan, and Warehouse Credit Facilities —The indentures governing our 2025 and 2027 convertible senior notes contain cross-acceleration and cross-default provisions. These provisions could have the effect of creating an event of default under the indenture for either our 2025 or 2027 convertible senior notes, despite our compliance with that agreement, due solely to an event of default or failure to pay amounts owed under the indenture for the other tranche of convertible senior notes. Accordingly, all or a significant portion of our outstanding convertible senior notes could become immediately payable due solely to our failure to comply with the terms of a single agreement governing either our 2025 or 2027 convertible senior notes. In addition, each of our warehouse credit facilities and term loan facility contain cross-acceleration and cross-default provisions. These provisions could have the effect of creating an event of default under the agreement for any such facility, despite our compliance with that agreement, due solely to an event of default or failure to pay amounts owed under the agreement for another facility. Accordingly, all or a significant portion of our outstanding warehouse indebtedness or outstanding term loan indebtedness could become immediately payable due solely to our failure to comply with the terms of a single agreement governing one of our facilities. While the cross-default provisions in our existing warehouse credit facilities do not pick up defaults under our convertible senior notes and our existing warehouse credit facilities are carved out of the cross-payment default provisions in our 2025 and 2027 senior notes given that they constitute non-recourse debt, any default under our convertible senior notes would trigger an event of default under our term loan facility and, similarly, any default under our term loan facility would trigger the cross-payment default provisions in our 2025 and 2027 senior notes. 2027 Capped Calls —In connection with the pricing of our 2027 notes, we entered into capped call transactions with certain counterparties (the “2027 capped calls”). The 2027 capped calls have initial strike prices of $93.53 per share and initial cap prices of $138.56 per share, in each case subject to certain adjustments. Conditions that cause adjustments to the initial strike price and initial cap price of the 2027 capped calls are similar to the conditions that result in corresponding adjustments to the conversion rate for our 2027 notes. The 2027 capped calls cover, subject to anti-dilution adjustments, 6,147,900 shares of our common stock and are generally intended to reduce or offset the potential dilution to our common stock upon any conversion of the 2027 notes, with such reduction or offset, as the case may be, subject to a cap based on the cap price. The 2027 capped calls are separate transactions, and not part of the terms of our 2027 notes. As these instruments meet certain accounting criteria, the 2027 capped calls are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $62,647 incurred in connection with the 2027 capped calls was recorded as a reduction to additional paid-in capital on our consolidated balance sheets. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
Reclassification | Certain amounts presented in the prior period consolidated statements of comprehensive loss have been reclassified to conform to the current period financial statement presentation. The change in classification does not affect previously reported total revenue or expenses in the consolidated statements of comprehensive loss. |
Principles of Consolidation | Principles of Consolidation —The consolidated financial statements include the accounts of Redfin and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements, in conformity with GAAP, requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the respective periods. Our estimates include, but are not limited to, valuation of deferred income taxes, stock-based compensation, capitalization of website and software development costs, the incremental borrowing rate for the determination of the present value of lease payments, recoverability of intangible assets with finite lives, fair value of our mortgage loans held for sale (“LHFS”) and mortgage servicing rights, estimated useful life of intangible assets, fair value of reporting units for purposes of allocating and evaluating goodwill for impairment, and current expected credit losses on certain financial assets. The amounts ultimately realized from the affected assets or ultimately recognized as liabilities will depend on, among other factors, general business conditions and could differ materially in the near term from the carrying amounts reflected in the consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents —We consider all highly liquid investments originally purchased by us with original maturities of three months or less at the date of purchase to be cash equivalents. |
Restricted Cash and Other Payables | Restricted Cash —Restricted cash primarily consists of cash that is specifically designated to repay borrowings under warehouse credit facilities. |
Accounts Receivable, Net and Allowance for Credit Losses | Accounts Receivable, Net and Allowance for Credit Losses —We have two material classes of receivables: (i) real estate services receivables and (ii) receivables from customers in relation to our rentals business. Accounts receivable related to these classes represent closed transactions for which cash has not yet been received. The majority of our transactions are processed through escrow and collectibility is not a significant risk. For transactions not directly processed through escrow, we establish an allowance for expected credit losses based on historical experience of collectibility, current external economic conditions that may affect collectibility, and current or expected changes to the regulatory environment in which we operate our businesses. We evaluate for changes in credit quality indicators on an annual basis or in the event of a material economic event or material change in the regulatory environment in which we operate. |
Investments | Investments —We have investments in marketable securities that are available to support our operational needs, which are included in our consolidated balance sheets as short-term and long-term investments. Our short-term and long-term investments consist primarily of U.S. treasury securities, including inflation protected securities, and other federal or local government issued securities. 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 loss. 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 securities are classified as long-term. We evaluate our available-for-sale debt securities, both ones classified as cash equivalents and as investments, for expected credit losses on a quarterly basis. An expected credit loss reserve is charged against the fair value of an available-for-sale debt security when it is identified, with a credit loss charged against net earnings. We review factors to determine whether an expected credit loss exists based on credit quality indicators, such as the extent to which the fair value as of the reporting date is less than the amortized cost basis, present value of cash flows expected to be collected, the financial condition and prospects of the issuer, adverse conditions specifically related to the security, and any changes to the credit rating of the security by a rating agency. Realized gains and losses are accounted for using the specific identification method. Purchases and sales are recorded on a trade date basis. |
Fair Value | Fair Value —We account for certain assets and liabilities at fair value. Fair value is defined as the exchange price that would be received for an asset or an exit price paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The current accounting guidance for fair value measurements defines a three-level valuation hierarchy for disclosures as follows: Level 1 —Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 —Inputs other than quoted prices included within Level 1 that are observable, unadjusted quoted prices in markets that are not active, or other inputs that are observable such as quoted prices for similar assets or liabilities in active markets or can be corroborated by observable market data. Level 3 —Unobservable inputs that are supported by little or no market activity and require us to develop our own assumptions. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Our financial instruments consist of Level 1, Level 2, and Level 3 assets and liabilities. |
Concentration of Credit Risk | Concentration of Credit Risk —Financial instruments that potentially subject us to concentrations of credit risk are primarily cash and cash equivalents and investments. We generally place our cash and cash equivalents and investments with major financial institutions we deem to be of high-credit-quality in order to limit our credit exposure. We maintain our cash accounts with financial institutions where deposits exceed federal insurance limits. Credit risk in regard to accounts receivable is spread across a large number of customers. At December 31, 2023 and 2022, no single customer had an accounts receivable balance greater than 10% of total accounts receivable. |
Loans Held for Sale | Loans Held for Sale —Our mortgage segment originates residential mortgage loans. We have elected the fair value option for all loans held for sale and record these loans at fair value. Gains and losses from changes in fair value and direct loan origination fees and costs are recognized in net gain on loans held for sale. The fair value of loans held for sale is in excess of the contractual principal amounts by $3,712 and $2,650, respectively, as of December 31, 2023 and December 31, 2022. The mortgage loans we originate are intended to be sold in the secondary mortgage market within a short period of time following origination. Mortgage loans held for sale primarily consist of single-family residential loans collateralized by the underlying home. Mortgage loans held for sale are recorded at fair value based on either sale commitments or current market quotes for mortgage loans with similar characteristics. Interest income earned or expense incurred on loans held for sale is captured as a component of income from operations. |
Other Current Assets | Other Current Assets —Other current assets consist primarily of miscellaneous non-trade receivables, interest receivable, and interest rate lock commitments from mortgage origination operations (see Derivative Instruments below). |
Derivatives Instruments | Derivative Instruments —Our mortgage segment is party to interest rate lock commitments (“IRLCs”) with customers resulting from mortgage origination operations. IRLCs for single-family mortgage loans we intend to sell are considered free-standing derivatives. All free-standing derivatives are required to be recorded on our consolidated balance sheets at fair value. Since we can terminate a loan commitment if the borrower does not comply with the terms of the contract, and some loan commitments may expire without being drawn upon, these commitments do not necessarily represent future cash requirements. Interest rate risk related to the residential mortgage loans held for sale and IRLCs is offset using forward sales commitments. We manage this interest rate risk through the use of forward sales commitments on both a best efforts whole loans basis and on a mandatory basis. Forward sales commitments entered into on a mandatory basis are done through the use of commitments to sell mortgage-backed securities. We do not enter into or hold derivatives for trading or speculative purposes. Changes in the fair value of IRLCs and forward sales commitments are recognized as revenue, and the fair values are reflected in other current assets and accrued and other liabilities, as applicable. We estimate the fair value of an IRLC based on current market quotes for mortgage loans with similar characteristics, net of origination costs and fees adjusting for the probability that the mortgage loan will not fund according to the terms of commitment (referred to as a pull-through factor). The fair value measurements of our forward sales commitments use prices quoted directly to us from our counterparties. |
Property and Equipment | Property and Equipment —Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives. Depreciation and amortization is included in cost of revenue, marketing, technology and development, and general and administrative and is allocated based on estimated usage for each class of asset. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in our consolidated statements of operations. Repair and maintenance costs are expensed as incurred. Costs incurred in the preliminary stages of website and software development are expensed as incurred. Once an application has reached the development stage, direct internal and external costs relating to upgrades or enhancements that meet the capitalization criteria are capitalized in property and equipment and amortized on a straight-line basis over their estimated useful lives. Maintenance and enhancement costs (including those costs in the post-implementation stages) are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the websites (or software) that result in added functionality, in which case the costs are capitalized. Capitalized software development activities placed in service are amortized over the expected useful lives of those releases. We view capitalized software costs as either internal use or market and product expansion. Estimated useful lives of website and software development activities are reviewed annually, or whenever events or changes in circumstances indicate that intangible assets may be impaired, and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades or enhancements to the existing functionality. In July 2023, we completed an assessment of the useful lives of our website and internally developed software. Due to improvements, efficiencies, and advancements in how we develop, implement, and use our website and internally developed software, we determined we should increase their estimated useful lives from two to three years to three |
Intangible Assets | Intangible Assets —Intangible assets are finite lived and mainly consist of trade names, developed technology, and customer relationships and are amortized over their estimated useful lives ranging from three |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets —Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured first by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such asset were considered to be impaired, an impairment loss would be recognized in the amount by which the carrying value of the asset exceeds its fair value. To date, no such impairment has occurred. |
Goodwill | Goodwill —Goodwill represents the excess of the purchase price over the fair value of the net tangible assets and identifiable intangible assets acquired in a business combination. Goodwill is not amortized, but is subject to impairment testing. We assess the impairment of goodwill on an annual basis, during the fourth quarter, or whenever events or changes in circumstances indicate that goodwill may be impaired. Based on our annual goodwill impairment test performed in the fourth quarter of 2023, the estimated fair values of all reporting units substantially exceeded their carrying values. |
Other Assets, Noncurrent | Other Assets, Noncurrent —Other assets consists primarily of leased building security deposits and the noncurrent portion of prepaid assets. |
Leases | Leases —The extent of our lease commitments consists of operating leases for physical office locations with original terms ranging from one When available, the rate implicit in the lease to discount lease payments to present value would be used; however, none of our significant leases as of December 31, 2023 provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate for each portfolio of leases to discount the lease payments based on information available at lease commencement. We have evaluated the performance of existing leases in relation to our leasing strategy and have determined that most renewal options would not be reasonably certain to be exercised. The right-of-use asset and related lease liability are determined based on the lease component of the consideration in each lease contract. We have evaluated our lease portfolio for appropriate allocation of the consideration in the lease contracts between lease and non-lease components based on standalone prices and determined the allocation per the contracts to be appropriate. |
Mezzanine Equity | Mezzanine Equity —We have issued convertible preferred stock that we have determined is a financial instrument with both equity and debt characteristics and is classified as mezzanine equity in our consolidated financial statements. The instrument was initially recognized at fair value net of issuance costs. We reassess whether the instrument is currently redeemable or probable to become redeemable in the future as of each reporting date, in which, if the instrument meets either criteria, we will accrete the carrying value to the redemption value based on the effective interest method over the remaining term. To assess classification, we review all features of the instrument, including mandatory redemption features and conversion features that may be substantive. All financial instruments that are classified as mezzanine equity are evaluated for embedded derivative features by evaluating each feature against the nature of the host instrument (e.g., more equity-like or debt-like). Features identified as embedded derivatives that are material are recognized separately as a derivative asset or liability in the consolidated financial statements. We have evaluated our convertible preferred stock and determined that its nature is that of an equity host and no material embedded derivatives exist that would require bifurcation on our consolidated balance sheets. See Note 10 for more information. |
Foreign Currency Translation | Foreign Currency Translation —Our international operations generally use their local currency as their functional currency. Assets and liabilities are translated at exchange rates in effect at the balance sheet date. Income and expense accounts are translated at the average monthly exchange rates during the year. Resulting translation adjustments are reported as a component of other comprehensive income and recorded in accumulated other comprehensive loss on our consolidated balance sheets. |
Income Taxes | Income Taxes —Income taxes are accounted for using an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the consolidated balance sheets and tax bases of assets and liabilities at the applicable enacted tax rates. We establish a valuation allowance for deferred tax assets if it is more likely than not that these items will expire before we are able to realize their benefits or if future deductibility is uncertain. We account for uncertainty in income taxes in accordance with ASC 740, Income Taxes . Tax positions are evaluated utilizing a two-step process, whereby we first determine whether it is more likely than not that a tax position will be sustained upon examination by the tax authority, including resolutions of any related appeals or litigation processes, based on technical merit. If a tax position meets the more-likely-than-not recognition threshold, it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely to be realized upon ultimate settlement. Subsequent adjustments to amounts previously recorded impact the financial statements in the period during which the changes are identified. We recognize interest and penalties related to unrecognized tax benefits as income tax expense. |
Convertible Senior Notes | Convertible Senior Notes —In accounting for the issuance of our convertible senior notes, we treat the instrument wholly as a liability, in accordance with the adoption of ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06"). Issuance costs are amortized to expense over the respective term of the convertible senior notes. For conversions prior to the maturity of the notes, we will settle using cash, shares of our common stock, or a combination of cash and shares of our common stock, at our election. The carrying amount of the instrument (including unamortized debt issuance costs) is reduced by cash and other assets transferred, with the difference reflected as a reduction to additional paid-in capital. The indentures governing our convertible senior notes allow us, under certain circumstances, to irrevocably fix our method for settling conversions of the applicable notes by giving notice to the noteholders. Our election to irrevocably fix the settlement method could affect the calculation of diluted earnings per share when applicable. We have no plans to exercise our rights to fix the settlement method. When we repurchase a portion of our convertible senior notes, we derecognize the liability, accelerate the amortization of debt issuance costs, and record on our consolidated statements of comprehensive loss a gain or loss on extinguishment dependent on the repurchase price. See Note 14 for information regarding repurchases for the year ended December 31, 2023. |
Revenue Recognition, Nature and Disaggregation of Revenue | Revenue Recognition —We generate revenue primarily from commissions and fees charged on each real estate services transaction closed by our lead agents or partner agents, from subscription-based product offerings for our rentals business, and from the origination, sales, and servicing of mortgages. Our key revenue components are brokerage revenue, partner revenue, rentals revenue, mortgage revenue, and other revenue. We have utilized the allowable practical expedient in the accounting guidance and elected not to capitalize costs related to obtaining contracts with customers with durations of less than one year. We do not have significant remaining performance obligations. Revenue earned but not received is recorded as accrued revenue in accounts receivable on our consolidated balance sheets, net of an allowance for credit losses. Accrued revenue consisting of commission revenue is known and is clearing escrow, and therefore it is not estimated. Nature and Disaggregation of Revenue Real Estate Services Revenue Brokerage Revenue —Brokerage revenue includes our offer and listing services, where our lead agents represent homebuyers and home sellers. We recognize commission-based brokerage revenue upon closing of a brokerage transaction, less the amount of any commission refunds, closing-cost reductions, or promotional offers that may result in a material right. The transaction price is generally calculated by taking the agreed upon commission rate and applying that to the home's selling price. Brokerage revenue primarily contains a single performance obligation that is satisfied upon the closing of a transaction, at which point the entire transaction price is earned. We are not entitled to any commission until the performance obligation is satisfied and are not owed any commission for unsuccessful transactions, even if services have been provided. In conjunction with providing offering and listing services to our customers, we may offer promotional pricing or additional discounts on future services. This results in a material right to our customers and represents an additional performance obligation, for which the transaction price is allocated based on standalone selling prices. Amounts allocated to a promise to provide future listing or offering services at a significant discount are initially recorded as contract liabilities. Our promotional pricing and additional discounts have not resulted in a material impact to timing of revenue recognition. The balance of the corresponding contract liabilities are included in accrued and other liabilities on our consolidated balance sheets. See Note 9 for more information. Partner Revenue —Partner revenue consists of fees paid to us from partner agents or under other referral agreements, less the amount of any payments we make to homebuyers and home sellers. We recognize these fees as revenue on the closing of a transaction. The transaction price is a fixed percentage of the partner agent's commission. The partner agent or other entity related to our referral agreements directly remits the referral fee revenue to us. We are neither entitled to referral fee revenue, nor is our performance obligation satisfied, until the related referred home's sale closes. Rentals Revenue Rentals Revenue —Rentals revenue is primarily composed of subscription-based product offerings for internet listing services, as well as lead management and digital marketing solutions. Rentals revenue is recorded as a component of service revenue in our consolidated statements of comprehensive loss. Revenue is recognized upon transfer of control of promised service to customers over time in an amount that reflects the consideration we expect to receive in exchange for those services. Revenues from subscription-based services are recognized on a straight-line basis over the term of the contract, which generally have a term of less than one year. Revenue is presented net of sales allowances, which are not material. The transaction price for a contract is generally determined by the stated price in the contract, excluding any related sales taxes. We enter into contracts that can include various combinations of subscription services, which are capable of being distinct and accounted for as separate performance obligations. We allocate the transaction price to each performance obligation in the contract on a relative stand-alone selling price basis. Generally, the combinations of subscription services are fulfilled concurrently and are co-terminus. Our rentals contracts do not contain any refund provisions other than in the event of our non-performance or breach. Mortgage Revenue Mortgage Revenue —Mortgage revenue includes fees from the origination and subsequent sale of loans, loan servicing income, interest income on loans held for sale, origination of IRLCs, and the changes in fair value of our IRLCs, forward sales commitments, loans held for sale, and MSRs. Other Revenue Other Revenue —Other services revenue includes fees earned from title settlement services, Walk Score data services, and advertising. Substantially all fees and revenue from other services are recognized when the service is provided. |
Cost of Revenue | Cost of Revenue —Cost of revenue consists primarily of personnel costs (including base pay, benefits, and stock-based compensation), transaction bonuses, home-touring and field expenses, listing expenses, customer fulfillment costs related to our rentals segment, office and occupancy expenses, interest expense on our mortgage related warehouse facilities, and depreciation and amortization related to fixed assets and acquired intangible assets. |
Technology and Development | Technology and Development |
Advertising and Advertising Production Costs | Advertising and Advertising Production Costs |
Stock-based Compensation | Stock-based Compensation —We account for stock-based compensation by measuring and recognizing as compensation expense the fair value of all share-based payment awards made to employees, including restricted stock unit awards and shares forecasted to be issued pursuant to our ESPP, in each case based on estimated grant date fair values. Stock-based compensation expense is recognized over the requisite service period on a straight-line basis. We recognize forfeitures when they occur. The Black-Scholes-Merton option-pricing model is used to determine the fair value of shares forecasted to be issued pursuant to our ESPP. For restricted stock unit awards and restricted stock unit awards with performance conditions, we use the market value of our common stock on the date of grant to determine the fair value of the award. For restricted stock unit awards with market conditions, the market condition is reflected in the grant date fair value of the award using a Monte Carlo simulation. In valuing shares forecasted to be issued pursuant to our ESPP, we make assumptions about expected life, stock price volatility, risk-free interest rates, and expected dividends. Expected Life —The expected term was estimated using the ESPP offering period which is six months. Volatility —The expected stock price volatility for our common stock was estimated by taking the average historical price volatility of Redfin stock over the preceding six months. Risk-Free Rate —The risk-free interest rate is based on the yields of U.S. treasury securities with maturities similar to the expected term, or six months. Dividend Yield —We have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. Consequently, an expected dividend yield of zero was used. Business Combinations —The results of businesses acquired in a business combination are included in our consolidated financial statements from the date of acquisition. We record assets and liabilities of an acquired business at their estimated fair values on the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Mortgage Servicing Rights (“MSRs”) —We determine the fair value of MSRs using a valuation model that calculates the net present value of estimated future cash flows. Key estimates of future cash flows include prepayment speeds, default rates, discount rates, cost of servicing, objective portfolio characteristics, and other factors. Changes in these estimates could materially change the estimated fair value. Lease Impairment —During the year ended December 31, 2023 we recognized impairment losses of $1,948 due to subleasing two of our operating leases. These costs are recorded in other (expense) income, net in our consolidated statements of operations and in impairment costs in our consolidated statements of cash flows. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements —None applicable. Recently Issued Accounting Pronouncements — In September 2023, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance under ASU 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures. The ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this Update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We plan to adopt this guidance for fiscal year 2024 and we do not expect the adoption to have a material impact on our financial statement disclosures. In December 2023, the FASB issued authoritative guidance under ASU 2023-09, Income Taxes - Improvements to Income Tax Disclosures. The ASU enhances annual income tax disclosures to address investor requests for more information about the tax risks and opportunities present in an entity’s worldwide operations. The two primary enhancements disaggregate existing income tax disclosures related to the effective tax rate reconciliation and income taxes paid. The amendments in this Update are effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the potential impact of the guidance on our financial statement disclosures. |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Advertising costs and advertising production costs are included in marketing expenses. The following table summarizes total advertising and advertising production costs for the periods listed: Year Ended December 31, 2023 2022 2021 Advertising costs $ 100,321 $ 133,593 $ 119,278 Advertising production costs 2,983 3,425 2,303 |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups (Tables) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total current assets of discontinued operations | $ 0 | $ 132,159 | |
Total current liabilities of discontinued operations | 0 | 4,311 | |
Properties Segment | Discontinued Operations, Disposed of by Means Other than Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash and cash equivalents | 0 | 7,640 | $ 19,619 |
Accounts receivable, net | 0 | 8,504 | |
Inventory | 0 | 114,232 | |
Prepaid expenses | 0 | 500 | |
Other current assets | 0 | 1,283 | |
Total current assets of discontinued operations | 0 | 132,159 | |
Property and equipment, net | 0 | 167 | |
Right-of-use assets, net | 0 | 1,142 | |
Total assets of discontinued operations | 0 | 133,468 | |
Accounts payable | 0 | 754 | |
Accrued and other liabilities | 0 | 2,980 | |
Lease liabilities | 0 | 577 | |
Total current liabilities of discontinued operations | 0 | 4,311 | |
Lease liabilities, noncurrent | 0 | 392 | |
Total liabilities of discontinued operations | $ 0 | $ 4,703 |
Segment Reporting and Revenue -
Segment Reporting and Revenue - (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Information on each of our reportable and other segments and reconciliation to consolidated net (loss) income from continuing operations is presented in the tables below. We have assigned certain previously reported expenses to each segment to conform to the way we internally manage and monitor our business. We allocated indirect costs to each segment based on a reasonable allocation methodology, when such costs are significant to the performance measures of the segments. Year Ended December 31, 2023 Real estate services Rentals Mortgage Other Corporate overhead Total Revenue (1) $ 618,577 $ 184,812 $ 134,108 $ 39,175 $ — $ 976,672 Cost of revenue 462,625 42,086 118,178 23,964 — 646,853 Gross profit 155,952 142,726 15,930 15,211 — 329,819 Operating expenses Technology and development 108,201 63,934 2,871 4,504 3,784 183,294 Marketing 59,746 53,952 4,064 60 41 117,863 General and administrative 76,851 94,252 25,012 4,017 38,658 238,790 Restructuring and reorganization — 503 — — 7,424 7,927 Total operating expenses 244,798 212,641 31,947 8,581 49,907 547,874 (Loss) income from continuing operations (88,846) (69,915) (16,017) 6,630 (49,907) (218,055) Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net 59 215 (392) 712 91,069 91,663 Net (loss) income from continuing operations $ (88,787) $ (69,700) $ (16,409) $ 7,342 $ 41,162 $ (126,392) (1) Included in revenue is $1,244 from providing services to our discontinued properties segment. Year Ended December 31, 2022 Real estate services Rentals Mortgage Other Corporate overhead Total Revenue (1) $ 787,076 $ 155,910 $ 132,904 $ 23,684 $ — $ 1,099,574 Cost of revenue 608,027 33,416 126,552 22,460 — 790,455 Gross profit 179,049 122,494 6,352 1,224 — 309,119 Operating expenses Technology and development 105,196 59,899 6,034 3,591 4,204 178,924 Marketing 98,673 51,064 4,889 199 484 155,309 General and administrative 88,171 92,728 25,680 3,307 33,504 243,390 Restructuring and reorganization — — — — 32,353 32,353 Total operating expenses 292,040 203,691 36,603 7,097 70,545 609,976 Loss from continuing operations (112,991) (81,197) (30,251) (5,873) (70,545) (300,857) Interest income, interest expense, income tax benefit, gain on extinguishment of convertible senior notes, and other expense, net (123) 1,389 (114) 140 49,768 51,060 Net loss from continuing operations $ (113,114) $ (79,808) $ (30,365) $ (5,733) $ (20,777) $ (249,797) (1) Included in revenue is $17,783 from providing services to our discontinued properties segment. Year Ended December 31, 2021 Real estate services Rentals Mortgage Other Corporate overhead Total Revenue (1) $ 903,334 $ 121,877 $ 19,818 $ 13,609 $ — $ 1,058,638 Cost of revenue 603,320 21,739 26,096 14,264 — 665,419 Gross profit 300,014 100,138 (6,278) (655) — 393,219 Operating expenses Technology and development 81,588 41,492 10,396 2,528 7,477 143,481 Marketing 98,746 36,174 561 209 1,161 136,851 General and administrative 84,655 71,943 8,306 2,288 41,530 208,722 Total operating expenses 264,989 149,609 19,263 5,025 50,168 489,054 Income (loss) from continuing operations 35,025 (49,471) (25,541) (5,680) (50,168) (95,835) Interest income, interest expense, and other income, net (87) 3,301 3 2 1,392 4,611 Net income (loss) from continuing operations $ 34,938 $ (46,170) $ (25,538) $ (5,678) $ (48,776) $ (91,224) (1) Included in revenue is $16,526 from providing services to our discontinued properties segment. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | We review our commitment-to-closing ratio ("pull-through rate") as part of an estimate of the number of mortgage loans that will fund according to the IRLCs. December 31, Notional Amounts 2023 2022 Forward sales commitments $ 274,400 $ 301,548 IRLCs 188,554 210,787 |
Derivative Instruments, Gain (Loss) | The locations and amounts of gains (losses) recognized in revenue related to our derivatives are as follows: Year Ended December 31, Instrument Classification 2023 2022 2021 Forward sales commitments Revenue $ (2,226) $ (11,336) $ 518 IRLCs Revenue 3,156 (4,184) (641) |
Schedule of Assets, Liabilities, and Equity Measured at Fair Value on a Recurring Basis | A summary of assets and liabilities related to our financial instruments, measured at fair value on a recurring basis and as reflected on our consolidated balance sheets, is set forth below: Balance at December 31, 2023 Quoted Prices in Active Markets for Identical Assets Significant Significant Assets Cash equivalents Money market funds $ 115,276 $ 115,276 $ — $ — Total cash equivalents 115,276 115,276 — — Short-term investments U.S. treasury securities 10,720 10,720 — — Agency bonds 31,232 31,232 — — Total short-term investments 41,952 41,952 — — Loans held for sale 159,587 — 159,587 — Other current assets IRLCs 4,600 — — 4,600 Total other current assets 4,600 — — 4,600 Mortgage servicing rights, at fair value 32,171 — — 32,171 Long-term investments U.S. treasury securities 3,149 3,149 — — Total assets $ 356,735 $ 160,377 $ 159,587 $ 36,771 Liabilities Accrued liabilities Forward sales commitments $ 2,429 $ — $ 2,429 $ — IRLCs 147 — — 147 Total liabilities $ 2,576 $ — $ 2,429 $ 147 Balance at December 31, 2022 Quoted Prices in Active Markets for Identical Assets Significant Significant Assets Cash equivalents Money market funds $ 186,410 $ 186,410 $ — $ — Total cash equivalents 186,410 186,410 — — Short-term investments U.S. treasury securities 96,925 96,925 — — Agency bonds 25,334 25,334 — — Total short-term investments 122,259 122,259 — — Loans held for sale 199,604 — 199,604 — Other current assets Forward sales commitments 1,669 — 1,669 — IRLCs 2,338 — — 2,338 Total other current assets 4,007 — 1,669 2,338 Mortgage servicing rights, at fair value 36,261 — — 36,261 Long-term investments U.S. treasury securities 29,480 29,480 — — Total assets $ 578,021 $ 338,149 $ 201,273 $ 38,599 Liabilities Accrued liabilities Forward sales commitments $ 1,873 $ — $ 1,873 $ — IRLCs 1,041 — — 1,041 Total liabilities $ 2,914 $ — $ 1,873 $ 1,041 |
Fair Value Measurement Inputs and Valuation Techniques | The following is a quantitative summary of key unobservable inputs used in the valuation of IRLCs and mortgage servicing rights (“MSRs”): December 31, 2023 December 31, 2022 Key Inputs Valuation Technique Range Weighted-Average Range Weighted-Average IRLCs Pull-through rate Market pricing 67.2% - 100.0% 87.7% 62.0% - 100.0% 91.0% MSRs Prepayment speed Discounted cash flow 6.0% - 19.0% 6.8% 6.0% - 14.4% 6.6% Default rates Discounted cash flow 0.1% - 1.2% 0.2% 0.0% - 0.5% 0.1% Discount rate Discounted cash flow 10.0% - 17.0% 10.2% 9.5% - 12.4% 9.6% |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following is a summary of changes in the fair value of IRLCs: Year Ended December 31, 2023 2022 2021 Balance, net—beginning of period $ 1,297 $ 1,131 $ 1,771 IRLCs acquired in business combination — 4,326 — Issuances of IRLCs 51,089 51,453 18,415 Settlements of IRLCs (48,902) (54,784) (18,827) Fair value changes recognized in earnings 969 (829) (228) Balance, net—end of period $ 4,453 $ 1,297 $ 1,131 The following is a summary of changes in the fair value of MSRs: Year Ended December 31, 2023 2022 2021 Balance—beginning of period $ 36,261 $ — $ — MSRs acquired in business combination — 33,982 — MSRs originated 565 3,140 — MSRs sales (1,457) (1,662) — Fair value changes recognized in earnings (3,198) 801 — Balance, net—end of period $ 32,171 $ 36,261 $ — |
Schedule of Long-term Debt Instruments | The following table presents the carrying amounts and estimated fair values of our convertible senior notes that are not recorded at fair value on our consolidated balance sheets: December 31, 2023 December 31, 2022 Issuance Net Carrying Amount Estimated Fair Value Net Carrying Amount Estimated Fair Value 2023 notes $ — $ — $ 23,431 $ 22,147 2025 notes 192,002 164,113 512,683 309,292 2027 notes 496,735 325,927 565,474 267,398 As of December 31, 2023, outstanding borrowings of our debt are as follows: Maturity of Debt Lender 2024 2025 2026 2027 2028 Thereafter Warehouse Credit Facilities City National Bank $ 20,046 $ — $ — $ — $ — $ — Origin Bank 30,110 — — — — — M&T Bank 18,870 — — — — — Prosperity Bank 29,358 — — — — — Republic Bank & Trust Company 23,415 — — — — — Wells Fargo Bank, N.A. 30,165 — — — — — Term Loan — — — — 124,416 — Convertible Senior Notes 2025 notes — 192,002 — — — — 2027 notes — — — 496,735 — — Total borrowings $ 151,964 $ 192,002 $ — $ 496,735 $ 124,416 $ — The following table summarizes borrowings under these facilities as of the periods presented: December 31, 2023 December 31, 2022 Lender Borrowing Capacity Outstanding Borrowings Weighted-Average Interest Rate on Outstanding Borrowings Borrowing Capacity Outstanding Borrowings Weighted-Average Interest Rate on Outstanding Borrowings City National Bank $ 50,000 $ 20,046 7.24 % $ 75,000 $ 27,288 5.89 % Comerica Bank N/A N/A N/A 75,000 26,526 6.36 % Origin Bank 75,000 30,110 7.25 % 75,000 23,739 5.98 % M&T Bank 50,000 18,870 7.39 % 50,000 19,126 6.45 % Prosperity Bank 75,000 29,358 7.23 % 100,000 35,856 6.18 % Republic Bank & Trust Company 45,000 23,415 7.28 % 75,000 26,636 5.81 % Wells Fargo Bank, N.A. 100,000 30,165 7.36 % 100,000 31,338 6.41 % Total $ 395,000 $ 151,964 $ 550,000 $ 190,509 |
Marketable Securities | The cost or amortized cost, gross unrealized gains and losses, and estimated fair market value of our cash, money market funds, restricted cash, available-for-sale investments, and equity securities were as follows: December 31, 2023 Fair Value Hierarchy Cost or Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash, Cash Equivalents, Restricted Cash Short-term Investments Long-term Investments Cash N/A $ 34,483 $ — $ — $ 34,483 $ 34,483 $ — $ — Money markets funds Level 1 115,276 — — 115,276 115,276 — — Restricted cash N/A 1,241 — — 1,241 1,241 — — U.S. treasury securities Level 1 13,895 1 (27) 13,869 — 10,720 3,149 Agency bonds Level 1 31,246 — (14) 31,232 — 31,232 — Total $ 196,141 $ 1 $ (41) $ 196,101 $ 151,000 $ 41,952 $ 3,149 December 31, 2022 Fair Value Hierarchy Cost or Amortized Cost Unrealized Gains Unrealized Losses Estimated Fair Value Cash, Cash Equivalents, Restricted Cash Short-term Investments Long-term Investments Cash N/A $ 53,430 $ — $ — $ 53,430 $ 45,790 $ — $ — Money markets funds Level 1 186,410 — — 186,410 186,410 — — Restricted cash N/A 2,406 — — 2,406 2,406 — — U.S. treasury securities Level 1 127,130 28 (753) 126,405 — 96,925 29,480 Agency bonds Level 1 25,339 — (5) 25,334 — 25,334 — Total $ 394,715 $ 28 $ (758) $ 393,985 $ 234,606 $ 122,259 $ 29,480 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | The components of property and equipment were as follows: Useful Lives (years) December 31, 2023 2022 Leasehold improvements Shorter of lease term or economic life $ 28,789 $ 32,262 Website and software development costs 3 - 5 75,573 62,963 Computer and office equipment 3 - 5 16,175 19,702 Software 3 1,869 1,871 Furniture 7 7,754 7,911 Property and equipment, gross 130,160 124,709 Accumulated depreciation and amortization (89,275) (76,597) Construction in progress 5,546 6,827 Property and equipment, net $ 46,431 $ 54,939 The following table summarizes depreciation and amortization and capitalized software development costs: Year Ended December 31, 2023 2022 2021 Depreciation and amortization for property and equipment $ 23,774 $ 24,403 $ 18,200 Capitalized software development costs, including stock-based compensation 16,131 18,738 17,571 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Year Ended December 31, Lease Cost 2023 2022 Operating lease cost: Operating lease cost (cost of revenue) $ 10,874 $ 10,694 Operating lease cost (operating expenses) 7,499 5,394 Short-term lease cost 3,025 5,055 Sublease income (1,408) (951) Total operating lease cost $ 19,990 $ 20,192 Finance lease cost: Amortization of right-of-use assets $ 67 $ 62 Interest on lease liabilities 6 7 Total finance lease cost $ 73 $ 69 December 31, Lease Term and Discount Rate 2023 2022 Weighted-average remaining operating lease term (years) 3.2 3.6 Weighted-average remaining finance lease term (years) 2.5 2.4 Weighted-average discount rate for operating leases 4.5 % 4.5 % Weighted-average discount rate for finance leases 5.4 % 5.4 % Year Ended December 31, Supplemental Cash Flow Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 21,292 $ 21,504 Operating cash outflows from finance leases 6 8 Financing cash outflows from finance leases 55 48 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ 8,597 $ 132 Finance leases 62 — |
Lessee, Operating Lease, Liability, Maturity | Lease Liabilities Other Leases Total Lease Obligations Maturity of Lease Liabilities Operating (2) Financing Operating 2024 $ 17,106 $ 61 $ 1,834 $ 19,001 2025 13,381 38 484 13,903 2026 10,513 16 385 10,914 2027 5,471 11 320 5,802 2028 1,130 — 293 1,423 Thereafter 26 — 250 276 Total lease payments $ 47,627 $ 126 $ 3,566 $ 51,319 Less: Interest (1) 3,052 8 Present value of lease liabilities $ 44,575 $ 118 (1) Includes interest on operating leases of $1,581 and financing leases of $5 due within the next 12 months. |
Schedule of Maturity of Financing Lease Liabilities | Lease Liabilities Other Leases Total Lease Obligations Maturity of Lease Liabilities Operating (2) Financing Operating 2024 $ 17,106 $ 61 $ 1,834 $ 19,001 2025 13,381 38 484 13,903 2026 10,513 16 385 10,914 2027 5,471 11 320 5,802 2028 1,130 — 293 1,423 Thereafter 26 — 250 276 Total lease payments $ 47,627 $ 126 $ 3,566 $ 51,319 Less: Interest (1) 3,052 8 Present value of lease liabilities $ 44,575 $ 118 (1) Includes interest on operating leases of $1,581 and financing leases of $5 due within the next 12 months. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments | Future payments due under these agreements as of December 31, 2023 are as follows: Purchase Commitments 2024 $ 27,205 2025 31,926 2026 34,161 2027 18,098 2028 — Thereafter — Total future minimum payments $ 111,390 |
Acquired Intangible Assets (Tab
Acquired Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The following table presents the gross carrying amount and accumulated amortization of intangible assets: December 31, 2023 December 31, 2022 Weighted-Average Useful Gross Accumulated Net Gross Accumulated Net Trade names 9.3 $ 82,690 $ (24,290) $ 58,400 $ 82,690 $ (14,856) $ 67,834 Developed technology 3.3 66,340 (59,883) 6,457 66,340 (38,465) 27,875 Customer relationship 10 81,360 (22,933) 58,427 81,360 (14,797) 66,563 $ 230,390 $ (107,106) $ 123,284 $ 230,390 $ (68,118) $ 162,272 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table presents our estimate of remaining amortization expense for intangible assets that existed as of December 31, 2023: 2024 $ 23,741 2025 17,618 2026 17,380 2027 15,633 2028 15,050 Thereafter 33,862 Estimated remaining amortization expense $ 123,284 |
Schedule of Goodwill | The carrying amounts of goodwill by reportable segment were as follows: Real Estate Services Rentals Mortgage Total Balance as of December 31, 2023 and 2022 $ 250,231 $ 159,151 $ 51,967 $ 461,349 |
Accrued and Other Liabilities (
Accrued and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | The components of accrued and other liabilities were as follows: December 31, 2023 2022 Accrued compensation and benefits $ 58,836 $ 74,079 Miscellaneous accrued and other liabilities 26,037 27,023 Customer contract liabilities 5,487 5,661 Total accrued and other liabilities $ 90,360 $ 106,763 |
Equity and Equity Compensatio_2
Equity and Equity Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Reserved Shares of Common Stock | We have reserved shares of common stock for future issuance under our 2017 EIP as follows: December 31, 2023 2022 Stock options issued and outstanding 2,406,453 3,282,789 Restricted stock units outstanding 15,947,173 15,731,632 Shares available for future equity grants 7,991,532 7,951,616 Total shares reserved for future issuance 26,345,158 26,966,037 We have reserved shares of common stock for future issuance under our ESPP as follows: December 31, 2023 2022 Shares available for issuance at beginning of period 4,695,361 5,865,467 Shares issued during the period (1,491,040) (1,170,106) Total shares available for issuance at end of period 3,204,321 4,695,361 |
Schedule of Valuation Assumptions | The weighted-average grant date fair value and the assumptions used in calculating fair values of shares forecasted to be issued pursuant to our ESPP are as follows: For the Offering Period beginning July 1, 2023 For the Offering Period beginning January 1, 2023 Expected life 0.5 years 0.5 years Volatility 98.62% 98.94% Risk-free interest rate 5.53% 4.77% Dividend yield —% —% Weighted-average grant date fair value $5.22 $1.46 |
Schedule of Stock Option Activity | Option activity for the year ended December 31, 2023 was as follows: Number Of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (years) Aggregate Intrinsic Value Outstanding at January 1, 2023 3,282,789 $ 9.10 2.90 $ 1,145 Options exercised (801,866) 2.99 Options expired (74,470) 8.97 Outstanding at December 31, 2023 2,406,453 $ 11.14 2.63 $ 3,355 Options exercisable at December 31, 2023 2,406,453 $ 11.14 2.63 $ 3,355 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | The fair value of stock options vested and the intrinsic value of stock options exercised are as follows: Year Ended December 31, 2023 2022 2021 Fair value of options vested $ — $ 484 $ 793 Intrinsic value of options exercised 4,160 5,588 90,920 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | Restricted stock unit activity for the year ended December 31, 2023 was as follows: Restricted Stock Units Weighted-Average Grant Date Fair Value Outstanding at January 1, 2023 15,731,632 $ 11.53 Granted 9,328,065 8.44 Vested (6,955,493) 11.81 Forfeited or canceled (2,157,031) 11.25 Outstanding or deferred at December 31, 2023 (1) 15,947,173 $ 9.64 (1) Starting with the restricted stock units granted to them in June 2019, our non-employee directors have the option to defer the issuance of common stock receivable upon vesting of such restricted stock units until 60 days following the day they are no longer providing services to us or, if earlier, upon a change in control transaction. The amount reported as vested excludes restricted stock units that have vested but whose settlement into shares have been deferred. The amount reported as outstanding or deferred as of December 31, 2023 includes these restricted stock units. As no further conditions exist to prevent the issuance of the shares of common stock underlying these restricted stock units, the shares are included in the basic and diluted weighted shares outstanding used to calculate net loss per share attributable to common stock. The amount of shares whose issuance have been deferred is not considered material and is not reported separately from stock-based compensation in our consolidated statements of changes in mezzanine equity and stockholders’ equity. |
Schedule of Allocation of Share-based Compensation Costs | Stock-compensation expense associated with the PSUs is as follows: Year Ended December 31, 2023 2022 2021 Expense associated with the current period $ 2,994 $ 5,341 $ 6,314 Expense due to reassessment of achievement related to prior periods (553) (267) — Total expense $ 2,441 $ 5,074 $ 6,314 Year Ended December 31, 2023 2022 2021 Cost of revenue $ 12,914 $ 15,137 $ 12,388 Technology and development (1) 33,111 26,365 21,172 Marketing 5,148 3,991 2,142 General and administrative 19,528 17,526 13,843 Stock-based compensation from continuing operations 70,701 63,019 49,545 Stock-based compensation from discontinued operations 234 5,238 5,177 Total stock-based compensation $ 70,935 $ 68,257 $ 54,722 (1) Net of $4,003, $3,660 and $4,059 of stock-based compensation expense capitalized for internally developed software for the years ended December 31, 2023, 2022 and 2021, respectively. |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The calculation of basic and diluted net loss per share attributable to common stock was as follows: Year Ended December 31, 2023 2022 2021 Numerator: Net loss from continuing operations $ (126,392) $ (249,797) $ (91,224) Dividends on convertible preferred stock (1,074) (1,560) (7,269) Net loss from continuing operations attributable to common stock—basic and diluted $ (127,466) $ (251,357) $ (98,493) Denominator: Weighted-average shares—basic and diluted (1) 113,152,752 107,927,464 104,683,460 Net loss from continuing operations per share attributable to common stock—basic and diluted $ (1.13) $ (2.33) $ (0.94) (1) Basic and diluted weighted-average shares outstanding include (i) common stock earned but not yet issued related to share-based dividends on our convertible preferred stock, and (ii) restricted stock units whose settlement into common stock were deferred at the option of certain non-employee directors. |
Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares of common stock equivalents were excluded from the computation of the diluted net loss from continuing operations per share attributable to common stock for the periods presented because their effect would have been anti-dilutive. Year Ended December 31, 2023 2022 2021 2023 notes as if converted — 769,623 769,623 2025 notes as if converted 2,667,993 7,154,297 9,119,960 2027 notes as if converted 5,379,209 6,147,900 6,147,900 Convertible preferred stock as if converted 2,040,000 2,040,000 2,040,000 Stock options outstanding (1) 2,406,453 3,282,789 4,019,011 Restricted stock units outstanding (1)(2) 15,908,735 15,710,223 4,589,696 Total 28,402,390 35,104,832 26,686,190 (1) Excludes 2,316,061 incremental PSUs that could vest, assuming applicable performance criteria and market conditions are achieved at 200% of target, which is the maximum achievement level. See Note 11 for additional information regarding PSUs. (2) Excludes 38,438 restricted stock units whose settlement into common stock were deferred at the option of certain non-employee directors as of December 31, 2023. |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The following table represents the significant components of our deferred tax assets and liabilities for the periods presented: December 31, 2023 2022 Deferred income tax assets Net operating loss carryforwards $ 160,329 $ 164,242 Business interest limitation carryforwards 35,402 34,445 Tax credit carryforwards 23,968 23,240 Lease liabilities 11,472 15,019 Capitalized research and development costs 50,780 32,216 Other 15,108 30,719 Gross deferred income tax assets 297,059 299,881 Valuation allowance (257,563) (245,212) Total deferred income tax assets, net of valuation allowance 39,496 54,669 Deferred income tax liabilities Intangible assets (29,608) (40,069) Right-of-use assets (8,155) (11,225) Other (1,997) (3,618) Total deferred income tax liabilities (39,760) (54,912) Net deferred income tax assets and liabilities $ (264) $ (243) |
Summary of Operating Loss Carryforwards | The following table represents our net operating loss ("NOL") carryforwards as of December 31, 2023 and 2022: December 31, 2023 2022 Federal $ 642,212 $ 651,498 Various states 32,234 34,718 Foreign 5,363 5,255 |
Schedule of Effective Income Tax Rate Reconciliation | The following table is a reconciliation of the U.S. federal income tax at statutory rate to our effective income tax rate: December 31, 2023 2022 2021 U.S. federal income tax at statutory rate 21.00 % 21.00 % 21.00 % State taxes (net of federal benefit) 3.26 5.02 9.31 Stock-based compensation (5.18) (3.24) 17.70 Permanent differences (0.36) (0.18) (0.14) Federal research and development credit 0.58 1.77 6.43 Change in valuation allowance (11.62) (20.12) (44.33) Other (0.82) 0.26 (1.99) Acquisition costs — (0.02) (1.71) Expiration of tax attribute carryforwards (7.63) (4.54) — Effective income tax rate (0.77) % (0.05) % 6.27 % |
Schedule of Components of Income Tax Benefit | The following table summarizes the components of our income tax expense (benefit) from continuing operations for the periods presented: December 31, 2023 2022 2021 Current income tax expense: U.S. - State $ 959 $ 1,074 $ 1,215 Total current income tax expense 959 1,074 1,215 Deferred income tax benefit: U.S. - Federal 16 97 — U.S. - State 4 (1,055) (7,322) Total deferred income tax benefit 20 (958) (7,322) Total income tax expense (benefit) $ 979 $ 116 $ (6,107) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarizes the activity related to unrecognized tax benefits: December 31, 2023 2022 2021 Unrecognized benefit—beginning of year $ 5,809 $ 4,692 $ 3,105 Gross (decreases) increases—prior year tax positions (527) (210) 32 Gross increases—current year tax positions 709 1,327 1,555 Unrecognized benefit—end of year $ 5,991 $ 5,809 $ 4,692 |
Debt - (Tables)
Debt - (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table presents the carrying amounts and estimated fair values of our convertible senior notes that are not recorded at fair value on our consolidated balance sheets: December 31, 2023 December 31, 2022 Issuance Net Carrying Amount Estimated Fair Value Net Carrying Amount Estimated Fair Value 2023 notes $ — $ — $ 23,431 $ 22,147 2025 notes 192,002 164,113 512,683 309,292 2027 notes 496,735 325,927 565,474 267,398 As of December 31, 2023, outstanding borrowings of our debt are as follows: Maturity of Debt Lender 2024 2025 2026 2027 2028 Thereafter Warehouse Credit Facilities City National Bank $ 20,046 $ — $ — $ — $ — $ — Origin Bank 30,110 — — — — — M&T Bank 18,870 — — — — — Prosperity Bank 29,358 — — — — — Republic Bank & Trust Company 23,415 — — — — — Wells Fargo Bank, N.A. 30,165 — — — — — Term Loan — — — — 124,416 — Convertible Senior Notes 2025 notes — 192,002 — — — — 2027 notes — — — 496,735 — — Total borrowings $ 151,964 $ 192,002 $ — $ 496,735 $ 124,416 $ — The following table summarizes borrowings under these facilities as of the periods presented: December 31, 2023 December 31, 2022 Lender Borrowing Capacity Outstanding Borrowings Weighted-Average Interest Rate on Outstanding Borrowings Borrowing Capacity Outstanding Borrowings Weighted-Average Interest Rate on Outstanding Borrowings City National Bank $ 50,000 $ 20,046 7.24 % $ 75,000 $ 27,288 5.89 % Comerica Bank N/A N/A N/A 75,000 26,526 6.36 % Origin Bank 75,000 30,110 7.25 % 75,000 23,739 5.98 % M&T Bank 50,000 18,870 7.39 % 50,000 19,126 6.45 % Prosperity Bank 75,000 29,358 7.23 % 100,000 35,856 6.18 % Republic Bank & Trust Company 45,000 23,415 7.28 % 75,000 26,636 5.81 % Wells Fargo Bank, N.A. 100,000 30,165 7.36 % 100,000 31,338 6.41 % Total $ 395,000 $ 151,964 $ 550,000 $ 190,509 |
Schedule of Capitalization | The components of the term loan were as follows: December 31, 2023 Aggregate Principal Amount Unamortized Debt Discount Unamortized Debt Issuance Costs Net Carrying Amount 124,688 — 272 124,416 |
Convertible Senior Notes | We have issued convertible senior notes with the following characteristics: Issuance Maturity Date Stated Cash Interest Rate Effective Interest Rate First Interest Payment Date Semi-Annual Interest Payment Dates Conversion Rate 2025 notes October 15, 2025 — % 0.42 % — — 13.7920 2027 notes April 1, 2027 0.50 % 0.90 % October 1, 2021 April 1; October 1 10.6920 The following table describes repurchase activity for the year ended December 31, 2023: Repurchase Program Repurchases in Conjunction with Apollo Term Loan Issuance Principal Cash Paid Gain on Extinguishment Principal Cash Paid Gain on Extinguishment 2025 notes 320,283 241,808 75,204 5,000 4,075 664 2027 notes — — — 71,894 46,754 18,151 |
Interest Income and Interest Expense Disclosure | The components of the convertible senior notes are as follows: December 31, 2023 Issuance Aggregate Principal Amount Unamortized Debt Issuance Costs Net Carrying Amount 2025 notes 193,445 1,443 192,002 2027 notes 503,106 6,371 496,735 December 31, 2022 Issuance Aggregate Principal Amount Unamortized Debt Issuance Costs Net Carrying Amount 2023 notes $ 23,512 $ 81 $ 23,431 2025 notes 518,728 6,045 512,683 2027 notes 575,000 9,526 565,474 Year End December 31, 2023 2022 2021 2023 notes Contractual interest expense $ 223 $ 411 $ 413 Amortization of debt issuance costs 81 150 189 Total interest expense $ 304 $ 561 $ 602 2025 notes Contractual interest expense — — — Amortization of debt issuance costs 4,602 2,706 2,760 Total interest expense $ 4,602 $ 2,706 $ 2,760 2027 notes Contractual interest expense 2,785 2,875 2,187 Amortization of debt issuance costs 3,151 2,240 1,705 Total interest expense $ 5,936 $ 5,115 $ 3,892 Total Contractual interest expense 3,008 3,286 2,600 Amortization of debt issuance costs 7,834 5,096 4,654 Total interest expense $ 10,842 $ 8,382 $ 7,254 |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) sublease classOfReceivable $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Material classes of receivables | classOfReceivable | 2 | ||
Fair value of loans held for sale | $ 3,712,000 | $ 2,650,000 | |
Goodwill | 461,349,000 | $ 461,349,000 | |
Accumulated impairments to goodwill | 0 | ||
Lease impairment loss | $ 1,948,000 | ||
Operating leases, number of subleases | sublease | 2 | ||
Net loss per share attributable to common stock—basic (in dollars per share) | $ / shares | $ (1.16) | $ (2.99) | $ (1.12) |
Earnings Per Share, Diluted | $ / shares | $ (1.16) | $ (2.99) | $ (1.12) |
Technology and development | $ 183,294,000 | $ 178,924,000 | $ 143,481,000 |
Net loss | $ (130,026,000) | $ (321,143,000) | $ (109,613,000) |
Service Life | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net loss per share attributable to common stock—basic (in dollars per share) | $ / shares | $ 0.03 | ||
Earnings Per Share, Diluted | $ / shares | $ 0.03 | ||
Technology and development | $ 3,049,000 | ||
Net loss | $ 3,049,000 | ||
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Useful Lives (years) | 3 years | ||
Intangible assets, useful life | 3 years | ||
Operating lease term | 1 year | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Useful Lives (years) | 5 years | ||
Intangible assets, useful life | 10 years | ||
Operating lease term | 11 years |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies - Schedule of New Accounting Pronouncement and Changes in Accounting Principles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advertising costs | $ 100,321 | $ 133,593 | $ 119,278 |
Advertising production costs | $ 2,983 | $ 3,425 | $ 2,303 |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net loss from discontinued operations | $ (3,634) | $ (71,346) | $ (18,389) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | $ (0.03) | $ (0.66) | $ (0.18) |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share | $ (0.03) | $ (0.66) | $ (0.18) |
Capital expenditures | $ 34 | $ 99 | $ 659 |
Cash paid for interest | 15,589 | 20,107 | 7,592 |
Employee termination costs | 7,927 | 32,353 | 0 |
Discontinued Operations, Disposed of by Means Other than Sale | Properties Segment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Revenue | 122,576 | 1,184,868 | 864,127 |
Cost of revenue(1) | 124,422 | 1,207,933 | 853,526 |
Gross (loss) profit | (1,846) | (23,065) | 10,601 |
Technology and development(1) | 552 | 17,326 | 13,237 |
Marketing(1) | 523 | 2,762 | 1,889 |
General and administrative(1) | 638 | 11,204 | 9,593 |
Restructuring and reorganization | 75 | 8,116 | 0 |
Total operating expenses | 1,788 | 39,408 | 24,719 |
Loss from discontinued operations | (3,634) | (62,473) | (14,118) |
Interest expense | 0 | (8,859) | (4,271) |
Income tax expense | 0 | 10 | 0 |
Other expense, net | 0 | (4) | 0 |
Net loss from discontinued operations | (3,634) | (71,346) | (18,389) |
Amortization of debt discount and debt issuance costs | 0 | 996 | 273 |
Stock-based compensation | 234 | 5,238 | 5,177 |
Depreciation and amortization | 89 | 2,337 | 1,847 |
Capital expenditures | 0 | 1,213 | 1,782 |
Cash paid for interest | 0 | $ 7,863 | $ 3,946 |
Employee termination costs | 74 | ||
Restructuring and Related Cost, Cost Incurred to Date | 8,671 | ||
Discontinued Operations, Disposed of by Means Other than Sale | Properties Segment | Employee Severance | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Employee termination costs | 539 | ||
Restructuring and Related Cost, Cost Incurred to Date | 8,587 | ||
Discontinued Operations, Disposed of by Means Other than Sale | Properties Segment | Asset Write Offs | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Employee termination costs | 0 | ||
Restructuring and Related Cost, Cost Incurred to Date | 493 | ||
Discontinued Operations, Disposed of by Means Other than Sale | Properties Segment | Other Restructuring | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Employee termination costs | 465 | ||
Restructuring and Related Cost, Cost Incurred to Date | 890 | ||
Discontinued Operations, Disposed of by Means Other than Sale | Properties Segment | Accelerated Amortization of Debt Issuance Costs | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Employee termination costs | 0 | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 481 |
Segment Reporting and Revenue_2
Segment Reporting and Revenue - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 5 |
Number of reportable segments | 3 |
Segment Reporting and Revenue_3
Segment Reporting and Revenue - Reconciliation of Operating Profit (Loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenue | $ 976,672 | $ 1,099,574 | $ 1,058,638 |
Cost of revenue | 646,853 | 790,455 | 665,419 |
Gross profit | 329,819 | 309,119 | 393,219 |
Technology and development | 183,294 | 178,924 | 143,481 |
Marketing | 117,863 | 155,309 | 136,851 |
General and administrative | 238,790 | 243,390 | 208,722 |
Employee termination costs | 7,927 | 32,353 | 0 |
Total operating expenses | 547,874 | 609,976 | 489,054 |
(Loss) income from continuing operations | (218,055) | (300,857) | (95,835) |
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net | 91,663 | 51,060 | 4,611 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (126,392) | (249,797) | (91,224) |
Operating Segments | Real estate services | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenue | 618,577 | 787,076 | 903,334 |
Cost of revenue | 462,625 | 608,027 | 603,320 |
Gross profit | 155,952 | 179,049 | 300,014 |
Technology and development | 108,201 | 105,196 | 81,588 |
Marketing | 59,746 | 98,673 | 98,746 |
General and administrative | 76,851 | 88,171 | 84,655 |
Employee termination costs | 0 | 0 | |
Total operating expenses | 244,798 | 292,040 | 264,989 |
(Loss) income from continuing operations | (88,846) | (112,991) | 35,025 |
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net | 59 | (123) | (87) |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (88,787) | (113,114) | 34,938 |
Operating Segments | Rentals | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenue | 184,812 | 155,910 | 121,877 |
Cost of revenue | 42,086 | 33,416 | 21,739 |
Gross profit | 142,726 | 122,494 | 100,138 |
Technology and development | 63,934 | 59,899 | 41,492 |
Marketing | 53,952 | 51,064 | 36,174 |
General and administrative | 94,252 | 92,728 | 71,943 |
Employee termination costs | 503 | 0 | |
Total operating expenses | 212,641 | 203,691 | 149,609 |
(Loss) income from continuing operations | (69,915) | (81,197) | (49,471) |
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net | 215 | 1,389 | 3,301 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (69,700) | (79,808) | (46,170) |
Operating Segments | Mortgage | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenue | 134,108 | 132,904 | 19,818 |
Cost of revenue | 118,178 | 126,552 | 26,096 |
Gross profit | 15,930 | 6,352 | (6,278) |
Technology and development | 2,871 | 6,034 | 10,396 |
Marketing | 4,064 | 4,889 | 561 |
General and administrative | 25,012 | 25,680 | 8,306 |
Employee termination costs | 0 | 0 | |
Total operating expenses | 31,947 | 36,603 | 19,263 |
(Loss) income from continuing operations | (16,017) | (30,251) | (25,541) |
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net | (392) | (114) | 3 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (16,409) | (30,365) | (25,538) |
Operating Segments | Discontinued Properties Segment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenue | 1,244 | 17,783 | 16,526 |
Other | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenue | 39,175 | 23,684 | 13,609 |
Cost of revenue | 23,964 | 22,460 | 14,264 |
Gross profit | 15,211 | 1,224 | (655) |
Technology and development | 4,504 | 3,591 | 2,528 |
Marketing | 60 | 199 | 209 |
General and administrative | 4,017 | 3,307 | 2,288 |
Employee termination costs | 0 | 0 | |
Total operating expenses | 8,581 | 7,097 | 5,025 |
(Loss) income from continuing operations | 6,630 | (5,873) | (5,680) |
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net | 712 | 140 | 2 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 7,342 | (5,733) | (5,678) |
Corporate overhead | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Revenue | 0 | 0 | 0 |
Cost of revenue | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Technology and development | 3,784 | 4,204 | 7,477 |
Marketing | 41 | 484 | 1,161 |
General and administrative | 38,658 | 33,504 | 41,530 |
Employee termination costs | 7,424 | 32,353 | |
Total operating expenses | 49,907 | 70,545 | 50,168 |
(Loss) income from continuing operations | (49,907) | (70,545) | (50,168) |
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net | 91,069 | 49,768 | 1,392 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ 41,162 | $ (20,777) | $ (48,776) |
Financial Instruments - Schedul
Financial Instruments - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Forward sales commitments | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Notional Amounts | $ 274,400 | $ 301,548 |
IRLCs | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Notional Amounts | $ 188,554 | $ 210,787 |
Financial Instruments - Derivat
Financial Instruments - Derivative Instruments, Gain (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Forward sales commitments | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Gain (loss) on derivative | $ (2,226) | $ (11,336) | $ 518 |
IRLCs | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Gain (loss) on derivative | $ 3,156 | $ (4,184) | $ (641) |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Assets, Liabilities, and Equity Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Derivative Asset, Type [Extensible Enumeration] | Other current assets | |
Mortgage servicing rights, at fair value | $ 32,171 | $ 36,261 |
Fair Value, Measurements, Recurring | ||
Assets | ||
Cash equivalents | 115,276 | 186,410 |
Short-term investments | 41,952 | 122,259 |
Loans held for sale | 159,587 | 199,604 |
Other current assets | 4,600 | 4,007 |
Mortgage servicing rights, at fair value | 32,171 | 36,261 |
Long-term investments | 3,149 | 29,480 |
Total assets | 356,735 | 578,021 |
Liabilities | ||
Total liabilities | 2,576 | 2,914 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Cash equivalents | 115,276 | 186,410 |
Short-term investments | 41,952 | |
Loans held for sale | 0 | 0 |
Other current assets | 0 | 0 |
Mortgage servicing rights, at fair value | 0 | 0 |
Total assets | 160,377 | 338,149 |
Liabilities | ||
Total liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | |
Loans held for sale | 159,587 | 199,604 |
Other current assets | 0 | 1,669 |
Mortgage servicing rights, at fair value | 0 | 0 |
Total assets | 159,587 | 201,273 |
Liabilities | ||
Total liabilities | 2,429 | 1,873 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | |
Loans held for sale | 0 | 0 |
Other current assets | 4,600 | 2,338 |
Mortgage servicing rights, at fair value | 32,171 | 36,261 |
Total assets | 36,771 | 38,599 |
Liabilities | ||
Total liabilities | 147 | 1,041 |
Fair Value, Measurements, Recurring | Money market funds | ||
Assets | ||
Cash equivalents | 115,276 | 186,410 |
Fair Value, Measurements, Recurring | Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Cash equivalents | 115,276 | 186,410 |
Fair Value, Measurements, Recurring | Money market funds | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Money market funds | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Cash equivalents | 0 | 0 |
U.S. treasury securities | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 10,720 | 96,925 |
Long-term investments | 3,149 | 29,480 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Short-term investments | 10,720 | 96,925 |
Long-term investments | 3,149 | 29,480 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
U.S. treasury securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Agency bonds | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 31,232 | 25,334 |
Long-term investments | 0 | 0 |
Agency bonds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Short-term investments | 31,232 | 25,334 |
Agency bonds | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Short-term investments | 0 | 0 |
Agency bonds | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Short-term investments | 0 | 0 |
Total short-term investments | Fair Value, Measurements, Recurring | ||
Assets | ||
Short-term investments | 122,259 | |
Total short-term investments | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Short-term investments | 122,259 | |
Total short-term investments | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Short-term investments | 0 | |
Total short-term investments | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Short-term investments | 0 | |
Forward sales commitments | Fair Value, Measurements, Recurring | ||
Assets | ||
Other current assets | 1,669 | |
Liabilities | ||
Liabilities | 2,429 | 1,873 |
Forward sales commitments | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Other current assets | 0 | |
Liabilities | ||
Liabilities | 0 | 0 |
Forward sales commitments | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Other current assets | 1,669 | |
Liabilities | ||
Liabilities | 2,429 | 1,873 |
Forward sales commitments | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Other current assets | 0 | |
Liabilities | ||
Liabilities | 0 | 0 |
IRLCs | Fair Value, Measurements, Recurring | ||
Assets | ||
Other current assets | 4,600 | 2,338 |
Liabilities | ||
Liabilities | 147 | 1,041 |
IRLCs | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Other current assets | 0 | 0 |
Liabilities | ||
Liabilities | 0 | 0 |
IRLCs | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Other current assets | 0 | 0 |
Liabilities | ||
Liabilities | 0 | 0 |
IRLCs | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Other current assets | 4,600 | 2,338 |
Liabilities | ||
Liabilities | $ 147 | $ 1,041 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Closing price of common stock (in dollars per share) | $ 10.32 | |
Unrealized loss position | $ 38,684,000 | $ 77,277,000 |
Aggregate unrealized losses | 41,000 | 758,000 |
Accrued interest | 332,000 | 576,000 |
Expected credit losses | 0 | $ 0 |
2025 notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Principal Amount | 193,445,000 | |
2027 notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Principal Amount | $ 503,106,000 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value Measurement Inputs and Valuation Techniques (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
IRLCs | Pull-through rate | Market pricing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instrument, measurement input | 0.877 | 0.910 |
IRLCs | Pull-through rate | Market pricing | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instrument, measurement input | 0.672 | 0.620 |
IRLCs | Pull-through rate | Market pricing | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instrument, measurement input | 1 | 1 |
MSRs | Prepayment speed | Valuation Technique, Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instrument, measurement input | 0.068 | 0.066 |
MSRs | Prepayment speed | Valuation Technique, Discounted Cash Flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instrument, measurement input | 0.060 | 0.060 |
MSRs | Prepayment speed | Valuation Technique, Discounted Cash Flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instrument, measurement input | 0.190 | 0.144 |
MSRs | Default rates | Valuation Technique, Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instrument, measurement input | 0.002 | 0.001 |
MSRs | Default rates | Valuation Technique, Discounted Cash Flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instrument, measurement input | 0.001 | 0 |
MSRs | Default rates | Valuation Technique, Discounted Cash Flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instrument, measurement input | 0.012 | 0.005 |
MSRs | Discount rate | Valuation Technique, Discounted Cash Flow | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instrument, measurement input | 0.102 | 0.096 |
MSRs | Discount rate | Valuation Technique, Discounted Cash Flow | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instrument, measurement input | 0.100 | 0.095 |
MSRs | Discount rate | Valuation Technique, Discounted Cash Flow | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative instrument, measurement input | 0.170 | 0.124 |
Financial Instruments - Summary
Financial Instruments - Summary of Changes in the Fair Value of IRLCs (Details) - IRLCs - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes of fair value of interest rate lock commitments [Roll Forward] | |||
Balance, net—beginning of period | $ 1,297 | $ 1,131 | $ 1,771 |
IRLCs acquired in business combination | 0 | 4,326 | 0 |
Issuances of IRLCs | 51,089 | 51,453 | 18,415 |
Settlements of IRLCs | (48,902) | (54,784) | (18,827) |
Fair value changes recognized in earnings | 969 | (829) | (228) |
Balance, net—end of period | $ 4,453 | $ 1,297 | $ 1,131 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Changes in the Fair Value MSRs (Details) - MSRs - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Balance, net—beginning of period | $ 36,261 | $ 0 | $ 0 |
IRLCs acquired in business combination | 0 | 33,982 | 0 |
MSRs originated | 565 | 3,140 | 0 |
MSRs sales | (1,457) | (1,662) | 0 |
Fair value changes recognized in earnings | (3,198) | 801 | 0 |
Balance, net—end of period | $ 32,171 | $ 36,261 | $ 0 |
Financial Instruments - Sched_3
Financial Instruments - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
2023 notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Net Carrying Amount | $ 0 | $ 23,431 |
Estimated Fair Value | 0 | 22,147 |
2025 notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Net Carrying Amount | 192,002 | 512,683 |
Estimated Fair Value | 164,113 | 309,292 |
2027 notes | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Net Carrying Amount | 496,735 | 565,474 |
Estimated Fair Value | $ 325,927 | $ 267,398 |
Financial Instruments - Marketa
Financial Instruments - Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cost or Amortized Cost | ||||
Cash and cash equivalents, at carrying value | $ 149,759 | $ 232,200 | $ 571,384 | |
Restricted cash | 1,241 | 2,406 | 5,244 | |
Estimated Fair Value | ||||
Restricted cash | 1,241 | 2,406 | 5,244 | |
Cash, Cash Equivalents, Restricted Cash | ||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 151,000 | 242,246 | $ 718,281 | $ 945,820 |
Fair Value, Measurements, Recurring | ||||
Cost or Amortized Cost | ||||
Restricted cash | 1,241 | 2,406 | ||
Cash, cash equivalents, and available-for-sale debt securities, amortized cost | 196,141 | 394,715 | ||
Unrealized Gains (Losses) | ||||
Unrealized Gains | 1 | 28 | ||
Unrealized Losses | (41) | (758) | ||
Estimated Fair Value | ||||
Cash and cash equivalents, fair value disclosure | 115,276 | 186,410 | ||
Restricted cash | 1,241 | 2,406 | ||
Cash, cash equivalents, and available-for-sale debt securities | 196,101 | 393,985 | ||
Cash, Cash Equivalents, Restricted Cash | ||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 151,000 | 234,606 | ||
Short-term Investments | ||||
Short-term investments | 41,952 | 122,259 | ||
Long-term Investments | ||||
Long-term investments | 3,149 | 29,480 | ||
U.S. treasury securities | Fair Value, Measurements, Recurring | ||||
Cost or Amortized Cost | ||||
Debt securities, available-for-sale, amortized cost | 13,895 | 127,130 | ||
Unrealized Gains (Losses) | ||||
Unrealized Gains | 1 | 28 | ||
Unrealized Losses | (27) | (753) | ||
Estimated Fair Value | ||||
Debt securities, available for sale, estimated fair value | 13,869 | 126,405 | ||
Short-term Investments | ||||
Short-term investments | 10,720 | 96,925 | ||
Long-term Investments | ||||
Long-term investments | 3,149 | 29,480 | ||
Agency bonds | Fair Value, Measurements, Recurring | ||||
Cost or Amortized Cost | ||||
Debt securities, available-for-sale, amortized cost | 31,246 | 25,339 | ||
Unrealized Gains (Losses) | ||||
Unrealized Gains | 0 | 0 | ||
Unrealized Losses | (14) | (5) | ||
Estimated Fair Value | ||||
Debt securities, available for sale, estimated fair value | 31,232 | 25,334 | ||
Short-term Investments | ||||
Short-term investments | 31,232 | 25,334 | ||
Long-term Investments | ||||
Long-term investments | 0 | 0 | ||
Total short-term investments | Fair Value, Measurements, Recurring | ||||
Short-term Investments | ||||
Short-term investments | 122,259 | |||
Cash | Fair Value, Measurements, Recurring | ||||
Cost or Amortized Cost | ||||
Cash and cash equivalents, at carrying value | 34,483 | 53,430 | ||
Estimated Fair Value | ||||
Cash and cash equivalents, fair value disclosure | 34,483 | 53,430 | ||
Cash, Cash Equivalents, Restricted Cash | ||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 34,483 | 45,790 | ||
Money markets funds | Fair Value, Measurements, Recurring | ||||
Cost or Amortized Cost | ||||
Cash and cash equivalents, at carrying value | 115,276 | 186,410 | ||
Estimated Fair Value | ||||
Cash and cash equivalents, fair value disclosure | 115,276 | 186,410 | ||
Cash, Cash Equivalents, Restricted Cash | ||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $ 115,276 | $ 186,410 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation and amortization | $ (89,275) | $ (76,597) |
Property and equipment, net | $ 46,431 | 54,939 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (years) | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (years) | 5 years | |
Property and equipment, gross | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 130,160 | 124,709 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 28,789 | 32,262 |
Website and software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 75,573 | 62,963 |
Website and software development costs | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (years) | 3 years | |
Website and software development costs | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (years) | 5 years | |
Computer and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 16,175 | 19,702 |
Computer and office equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (years) | 3 years | |
Computer and office equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (years) | 5 years | |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (years) | 3 years | |
Property and equipment, gross | $ 1,869 | 1,871 |
Furniture | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (years) | 7 years | |
Property and equipment, gross | $ 7,754 | 7,911 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 5,546 | $ 6,827 |
Property and Equipment - Summ_2
Property and Equipment - Summary of Software Development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization for property and equipment | $ 23,774 | $ 24,403 | $ 18,200 |
Capitalized software development costs, including stock-based compensation | $ 16,131 | $ 18,738 | $ 17,571 |
Leases - Summary of Lease Cost
Leases - Summary of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Leased Assets [Line Items] | |||
Operating lease cost | $ 19,990 | $ 20,192 | |
Sublease Income | (1,408) | (951) | |
Finance lease, right-of-use asset, amortization | 67 | 62 | |
Finance lease, interest expense | 6 | 7 | |
Finance lease cost | 73 | 69 | |
Short-term lease cost | 3,025 | 5,055 | |
Forecast | |||
Operating Leased Assets [Line Items] | |||
Sublease Income | $ (1,677) | ||
Operating lease cost (cost of revenue) | |||
Operating Leased Assets [Line Items] | |||
Operating lease cost | 10,874 | 10,694 | |
Operating lease cost (operating expenses) | |||
Operating Leased Assets [Line Items] | |||
Operating lease cost | $ 7,499 | $ 5,394 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Operating leases | |||
2024 | $ 17,106 | ||
2025 | 13,381 | ||
2026 | 10,513 | ||
2027 | 5,471 | ||
2028 | 1,130 | ||
Thereafter | 26 | ||
Total future minimum payments | 47,627 | ||
Less: Interest | 3,052 | ||
Present value of lease liabilities | 44,575 | ||
Financing | |||
2024 | 61 | ||
2025 | 38 | ||
2026 | 16 | ||
2027 | 11 | ||
2028 | 0 | ||
Thereafter | 0 | ||
Total lease payments | 126 | ||
Less: Interest | 8 | ||
Present value of lease liabilities | 118 | ||
Other Leases | |||
2024 | 1,834 | ||
2025 | 484 | ||
2026 | 385 | ||
2027 | 320 | ||
2028 | 293 | ||
Thereafter | 250 | ||
Total lease payments | 3,566 | ||
Total Lease Obligations | |||
2024 | 19,001 | ||
2025 | 13,903 | ||
2026 | 10,914 | ||
2027 | 5,802 | ||
2028 | 1,423 | ||
Thereafter | 276 | ||
Total lease payments | 51,319 | ||
Operating lease capitalized interest expense | 1,581 | ||
Financing lease, capitalized interest expense | 5 | ||
Sublease income | $ 1,408 | $ 951 | |
Forecast | |||
Total Lease Obligations | |||
Sublease income | $ 1,677 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted-average remaining operating lease term (years) | 3 years 2 months 12 days | 3 years 7 months 6 days |
Weighted-average remaining finance lease term (years) | 2 years 6 months | 2 years 4 months 24 days |
Weighted-average discount rate for operating leases | 4.50% | 4.50% |
Weighted-average discount rate for finance leases | 5.40% | 5.40% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash outflows from operating leases | $ 21,292 | $ 21,504 |
Operating cash outflows from finance leases | 6 | 8 |
Financing cash outflows from finance leases | 55 | 48 |
Right-of-use assets obtained in exchange for lease liabilities | ||
Operating leases | 8,597 | 132 |
Finance leases | $ 62 | $ 0 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | ||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Thousands | May 23, 2022 USD ($) | May 11, 2020 patent | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |||
Patents allegedly infringed upon | patent | 4 | ||
Litigation settlement payment | $ 3,000 | ||
Escrow deposit | $ 24,149 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Future Minimum Payments (Details) - Purchase Commitments $ in Thousands | Dec. 31, 2023 USD ($) |
Purchase Commitments | |
2024 | $ 27,205 |
2025 | 31,926 |
2026 | 34,161 |
2027 | 18,098 |
2028 | 0 |
Thereafter | 0 |
Total future minimum payments | $ 111,390 |
Acquired Intangible Assets an_2
Acquired Intangible Assets and Goodwill - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 230,390 | $ 230,390 |
Accumulated Amortization | (107,106) | (68,118) |
Net | $ 123,284 | 162,272 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Life (years) | 9 years 3 months 18 days | |
Gross | $ 82,690 | 82,690 |
Accumulated Amortization | (24,290) | (14,856) |
Net | $ 58,400 | 67,834 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Life (years) | 3 years 3 months 18 days | |
Gross | $ 66,340 | 66,340 |
Accumulated Amortization | (59,883) | (38,465) |
Net | $ 6,457 | 27,875 |
Customer relationship | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Useful Life (years) | 10 years | |
Gross | $ 81,360 | 81,360 |
Accumulated Amortization | (22,933) | (14,797) |
Net | $ 58,427 | $ 66,563 |
Acquired Intangible Assets an_3
Acquired Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization | $ 38,988 | $ 38,167 |
Acquired Intangible Assets an_4
Acquired Intangible Assets and Goodwill - Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 23,741 | |
2025 | 17,618 | |
2026 | 17,380 | |
2027 | 15,633 | |
2028 | 15,050 | |
Thereafter | 33,862 | |
Net | $ 123,284 | $ 162,272 |
Acquired Intangible Assets an_5
Acquired Intangible Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill [Line Items] | ||
Goodwill | $ 461,349 | $ 461,349 |
Real Estate Services | ||
Goodwill [Line Items] | ||
Goodwill | 250,231 | |
Rentals | ||
Goodwill [Line Items] | ||
Goodwill | 159,151 | |
Mortgage | ||
Goodwill [Line Items] | ||
Goodwill | $ 51,967 |
Accrued and Other Liabilities_2
Accrued and Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 58,836 | $ 74,079 |
Miscellaneous accrued and other liabilities | 26,037 | 27,023 |
Customer contract liabilities | 5,487 | 5,661 |
Total accrued and other liabilities | $ 90,360 | $ 106,763 |
Mezzanine Equity (Details)
Mezzanine Equity (Details) | 12 Months Ended | ||||
Apr. 01, 2020 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) d $ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Temporary Equity [Line Items] | |||||
Issuance of common stock, net | $ 110,000,000 | ||||
Carrying value of convertible preferred stock | $ 39,959,000 | $ 39,914,000 | |||
Temporary equity, dividends (in shares) | shares | 30,640 | ||||
Common stock issued upon conversion (in shares) | shares | 2,622,177 | ||||
Preferred stock, dividend rate | 0.055% | ||||
Preferred stock, dividend (in dollars per share) | $ / shares | $ 17.95 | ||||
Trading days | d | 10 | ||||
Conversion price ratio denominator | $ 19.51 | ||||
Conversion stock price trigger (in dollars per share) | $ / shares | $ 27.32 | ||||
Threshold consecutive trading days | d | 30 | ||||
Common Stock | |||||
Temporary Equity [Line Items] | |||||
Issuance of common stock, net (in shares) | shares | 4,484,305 | ||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 15.61 | ||||
Series A Convertible Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Issuance of common stock, net (in shares) | shares | 40,000 | ||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 1,000 | ||||
Issuance of common stock, net | $ 40,000,000 | ||||
Carrying value of convertible preferred stock | $ 39,959,000 | $ 39,914,000 | $ 39,868,000 | $ 39,823,000 |
Equity and Equity Compensatio_3
Equity and Equity Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Jul. 27, 2017 | Jul. 26, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Redeemable convertible preferred stock, authorized (in shares) | 10,000,000 | 10,000,000 | ||
Redeemable convertible preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | ||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized stock-based compensation | $ 117,005 | |||
Unrecognized compensation expense, period for recognition | 2 years 1 month 9 days | |||
Restricted stock units outstanding (in shares) | 15,947,173 | 15,731,632 | ||
Performance Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock units outstanding (in shares) | 2,316,061 | |||
Award requisite service period, achievement percentage | 100% | |||
Performance Restricted Stock Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 0% | |||
Performance Restricted Stock Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, percentage | 200% | |||
2004 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected life | 10 years | |||
Award vesting period | 4 years | |||
2004 Equity Incentive Plan | Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved (in shares) | 0 | |||
2017 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved (in shares) | 26,345,158 | 26,966,037 | 7,898,159 | |
Expected life | 10 years | |||
Percentage of common stock, outstanding | 5% | |||
Restricted stock units outstanding (in shares) | 15,947,173 | 15,731,632 | ||
2017 Equity Incentive Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 2 years | |||
2017 Equity Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
2017 Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock reserved (in shares) | 3,204,321 | 4,695,361 | ||
2017 Employee Stock Purchase Plan | Employee Stock | ||||
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% | |||
Purchase price of common stock, percentage of market price of common stock | 85% |
Equity and Equity Compensatio_4
Equity and Equity Compensation Plans - Summary of Common Stock Reserve for Future Issuance Under 2017 EIP (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 | Jul. 26, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options issued and outstanding (in shares) | 2,406,453 | 3,282,789 | |
2017 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options issued and outstanding (in shares) | 2,406,453 | 3,282,789 | |
Restricted stock units outstanding (in shares) | 15,947,173 | 15,731,632 | |
Shares available for future equity grants (in shares) | 7,991,532 | 7,951,616 | |
Total common stock reserved for future issuance (in shares) | 26,345,158 | 26,966,037 | 7,898,159 |
Equity and Equity Compensatio_5
Equity and Equity Compensation Plans - Summary of Common Stock Reserve for Future Issuance Under ESPP (Details) - 2017 Employee Stock Purchase Plan - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for issuance at beginning of period (in shares) | 4,695,361 | 5,865,467 |
Shares issued during period (in shares) | (1,491,040) | (1,170,106) |
Total common stock reserved for future issuance (in shares) | 3,204,321 | 4,695,361 |
Equity and Equity Compensatio_6
Equity and Equity Compensation Plans - Summary of Value Assumptions (Details) - 2017 Employee Stock Purchase Plan - Employee Stock - $ / shares | Jul. 01, 2022 | Jan. 01, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 6 months | 6 months |
Volatility | 98.62% | 98.94% |
Risk-free interest rate | 5.53% | 4.77% |
Dividend yield | 0% | 0% |
Weighted-average grant date fair value (in dollars per share) | $ 5.22 | $ 1.46 |
Equity and Equity Compensatio_7
Equity and Equity Compensation Plans - Schedule of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number Of Options | ||
Beginning balance (in shares) | 3,282,789 | |
Options exercised (in shares) | (801,866) | |
Options forfeited or canceled (in shares) | (74,470) | |
Ending balance (in shares) | 2,406,453 | 3,282,789 |
Options exercisable at period end (in shares) | 2,406,453 | |
Weighted-Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 9.10 | |
Options exercised (in dollars per share) | 2.99 | |
Options forfeited or canceled (in dollars per share) | 8.97 | |
Ending balance (in dollars per share) | 11.14 | $ 9.10 |
Options exercisable at period end (in dollars per share) | $ 11.14 | |
Stock Option Activity, Additional Disclosures | ||
Weighted average remaining contractual life outstanding | 2 years 7 months 17 days | 2 years 10 months 24 days |
Weighted average remaining contractual life exercisable | 2 years 7 months 17 days | |
Options outstanding, Aggregate intrinsic value | $ 3,355 | $ 1,145 |
Options exercisable, Aggregate intrinsic value | $ 3,355 |
Equity and Equity Compensatio_8
Equity and Equity Compensation Plans - Fair Value of Options Vested & Intrinsic Value of Options Exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Compensation Related Costs [Abstract] | |||
Fair value of options vested | $ 0 | $ 484 | $ 793 |
Intrinsic value of options exercised | $ 4,160 | $ 5,588 | $ 90,920 |
Equity and Equity Compensatio_9
Equity and Equity Compensation Plans - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Restricted Stock Units | |
Outstanding beginning period (in shares) | shares | 15,731,632 |
Granted (in shares) | shares | 9,328,065 |
Vested (in shares) | shares | (6,955,493) |
Forfeited or canceled (in shares) | shares | (2,157,031) |
Outstanding or deferred ending period (in shares) | shares | 15,947,173 |
Weighted-Average Grant Date Fair Value | |
Outstanding beginning period (in dollars per share) | $ / shares | $ 11.53 |
Granted (in dollars per share) | $ / shares | 8.44 |
Vested (in dollars per share) | $ / shares | 11.81 |
Forfeited or canceled (in dollars per share) | $ / shares | 11.25 |
Outstanding or deferred ending period (in dollars per share) | $ / shares | $ 9.64 |
Equity and Equity Compensati_10
Equity and Equity Compensation Plans - Compensation Costs for PSU's (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total expense | $ 70,935 | $ 68,257 | $ 54,722 |
Performance Restricted Stock Units | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total expense | 2,441 | 5,074 | 6,314 |
Performance Restricted Stock Units | Expense associated with the current period | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total expense | 2,994 | 5,341 | 6,314 |
Performance Restricted Stock Units | Expense due to reassessment of achievement related to prior periods | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total expense | $ (553) | $ (267) | $ 0 |
Equity and Equity Compensati_11
Equity and Equity Compensation Plans - Allocation of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation from continuing operations | $ 70,935 | $ 68,257 | $ 54,722 |
Stock-based compensation capitalized | 4,003 | 3,660 | 4,059 |
Continuing Operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation from continuing operations | 70,701 | 63,019 | 49,545 |
Discontinued Operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation from continuing operations | 234 | 5,238 | 5,177 |
Operating lease cost (cost of revenue) | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation from continuing operations | 12,914 | 15,137 | 12,388 |
Operating lease cost (cost of revenue) | Discontinued Operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation from continuing operations | 46 | 813 | 1,226 |
Technology and development(1) | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation from continuing operations | 33,111 | 26,365 | 21,172 |
Technology and development(1) | Discontinued Operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation from continuing operations | 86 | 3,243 | 2,103 |
Marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation from continuing operations | 5,148 | 3,991 | 2,142 |
Marketing | Discontinued Operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation from continuing operations | 19 | 102 | 207 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation from continuing operations | 19,528 | 17,526 | 13,843 |
General and administrative | Discontinued Operations | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation from continuing operations | $ 83 | $ 1,080 | $ 1,641 |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Common Stock - Computation of Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net loss | $ (130,026) | $ (321,143) | $ (109,613) |
Dividends on convertible preferred stock | (1,074) | (1,560) | (7,269) |
Net Income (Loss) from Continuing Operations Available to Common Shareholders, Diluted | (127,466) | (251,357) | (98,493) |
Net Income (Loss) from Continuing Operations Available to Common Shareholders, Basic | $ (127,466) | $ (251,357) | $ (98,493) |
Denominator: | |||
Weighted average shares of common stock— basic (in shares) | 113,152,752 | 107,927,464 | 104,683,460 |
Weighted average shares of common stock— diluted (in shares) | 113,152,752 | 107,927,464 | 104,683,460 |
Income (Loss) from Continuing Operations, Per Diluted Share | $ (1.13) | $ (2.33) | $ (0.94) |
Income (Loss) from Continuing Operations, Per Basic Share | (1.13) | (2.33) | (0.94) |
Net loss per share attributable to common stock—basic (in dollars per share) | (1.16) | (2.99) | (1.12) |
Net loss per share attributable to common stock— diluted (in dollars per share) | $ (1.16) | $ (2.99) | $ (1.12) |
Net Loss per Share Attributab_4
Net Loss per Share Attributable to Common Stock - Summary of Anti-dilutive Stock Equivalents (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share (in shares) | 28,402,390 | 35,104,832 | 26,686,190 |
Performance Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Restricted stock units outstanding (in shares) | 2,316,061 | ||
Performance Restricted Stock Units | Maximum | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Award vesting rights, percentage | 200% | ||
Convertible Debt | 2023 notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share (in shares) | 0 | 769,623 | 769,623 |
Convertible Debt | 2025 notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share (in shares) | 2,667,993 | 7,154,297 | 9,119,960 |
Convertible Debt | 2027 notes | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share (in shares) | 5,379,209 | 6,147,900 | 6,147,900 |
Convertible preferred stock as if converted | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share (in shares) | 2,040,000 | 2,040,000 | 2,040,000 |
Stock options outstanding | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share (in shares) | 2,406,453 | 3,282,789 | 4,019,011 |
Restricted Stock Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share (in shares) | 15,908,735 | 15,710,223 | 4,589,696 |
Restricted Stock Units | Non-employee Directors | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from earnings per share (in shares) | 38,438 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets | ||
Net operating loss carryforwards | $ 160,329 | $ 164,242 |
Business interest limitation carryforwards | 35,402 | 34,445 |
Tax credit carryforwards | 23,968 | 23,240 |
Lease liabilities | 11,472 | 15,019 |
Capitalized research and development costs | 50,780 | 32,216 |
Other | 15,108 | 30,719 |
Gross deferred income tax assets | 297,059 | 299,881 |
Valuation allowance | (257,563) | (245,212) |
Total deferred income tax assets, net of valuation allowance | 39,496 | 54,669 |
Deferred income tax liabilities | ||
Intangible assets | (29,608) | (40,069) |
Right-of-use assets | (8,155) | (11,225) |
Other | (1,997) | (3,618) |
Total deferred income tax liabilities | (39,760) | (54,912) |
Net deferred income tax assets and liabilities | $ (264) | $ (243) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Mar. 31, 2017 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | |||||
Operating loss unavailable for carryforward | $ 1,506,000 | ||||
Net loss | $ (130,026,000) | $ (321,143,000) | $ (109,613,000) | ||
Income tax (expense) benefit | $ 979,000 | $ 116,000 | $ (6,107,000) | ||
U.S. federal income tax at statutory rate | 21% | 21% | 21% | ||
Unrecognized tax benefits that would impact effective tax rate | $ 0 | $ 0 | |||
Unrecognized tax benefits | 5,991,000 | 5,809,000 | $ 4,692,000 | $ 3,105,000 | |
Unrecognized tax benefits, income tax penalties and interest expense | 0 | 0 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 0 | ||||
RentPath Holdings, Inc. | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax (expense) benefit | 979,000 | ||||
Research Tax Credit Carryforward | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax credit carryforward | 23,968,000 | 23,240,000 | |||
Research and development credits, decrease | $ 32,000 | ||||
Federal | |||||
Operating Loss Carryforwards [Line Items] | |||||
Increase (decrease) in operating loss carryforwards | 449,434,000 | ||||
Federal deductible | 149,464,000 | 145,296,000 | |||
Net loss | (125,110,000) | (246,880,000) | (95,873,000) | ||
Foreign | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net loss | $ (303,000) | $ (2,801,000) | $ (1,458,000) |
Income Taxes - Summary of Opera
Income Taxes - Summary of Operating Loss Carryforwards (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward | $ 642,212 | $ 651,498 |
Various states | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward | 32,234 | 34,718 |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward | $ 5,363 | $ 5,255 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal income tax at statutory rate | 21% | 21% | 21% |
State taxes (net of federal benefit) | 3.26% | 5.02% | 9.31% |
Stock-based compensation | (5.18%) | (3.24%) | 17.70% |
Permanent differences | (0.36%) | (0.18%) | (0.14%) |
Federal research and development credit | 0.58% | 1.77% | 6.43% |
Change in valuation allowance | (11.62%) | (20.12%) | (44.33%) |
Other | (0.82%) | 0.26% | (1.99%) |
Acquisition costs | 0% | (0.02%) | (1.71%) |
Expiration of tax attribute carryforwards | (7.63%) | (4.54%) | 0% |
Effective income tax rate | (0.77%) | (0.05%) | 6.27% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current income tax expense: | |||
U.S. - State | $ 959 | $ 1,074 | $ 1,215 |
Total current income tax expense | 959 | 1,074 | 1,215 |
Deferred income tax benefit: | |||
U.S. - Federal | 16 | 97 | 0 |
U.S. - State | 4 | (1,055) | (7,322) |
Total deferred income tax benefit | 20 | (958) | (7,322) |
Income tax (expense) benefit | $ 979 | $ 116 | $ (6,107) |
Income Taxes - Summary of Unrec
Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | |||
Unrecognized benefit—beginning of year | $ 5,809 | $ 4,692 | $ 3,105 |
Gross (decreases) increases—prior year tax positions | (527) | (210) | 32 |
Gross increases—current year tax positions | 709 | 1,327 | 1,555 |
Unrecognized benefit—end of year | $ 5,991 | $ 5,809 | $ 4,692 |
Debt - Outstanding Borrowings (
Debt - Outstanding Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Warehouse credit facilities | $ 151,964 | $ 190,509 |
2025 notes | ||
Debt Instrument [Line Items] | ||
Net Carrying Amount | 192,002 | 512,683 |
2025 notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Net Carrying Amount | 192,002 | 512,683 |
2027 notes | ||
Debt Instrument [Line Items] | ||
Net Carrying Amount | 496,735 | 565,474 |
2027 notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Net Carrying Amount | 496,735 | 565,474 |
Term Loan | Secured Debt | ||
Debt Instrument [Line Items] | ||
Net Carrying Amount | 124,416 | |
Warehouse Agreement Borrowings | ||
Debt Instrument [Line Items] | ||
Warehouse credit facilities | 151,964 | 190,509 |
Warehouse Agreement Borrowings | City National Bank | ||
Debt Instrument [Line Items] | ||
Warehouse credit facilities | 20,046 | 27,288 |
Warehouse Agreement Borrowings | Origin Bank | ||
Debt Instrument [Line Items] | ||
Warehouse credit facilities | 30,110 | 23,739 |
Warehouse Agreement Borrowings | M&T Bank | ||
Debt Instrument [Line Items] | ||
Warehouse credit facilities | 18,870 | 19,126 |
Warehouse Agreement Borrowings | Prosperity Bank | ||
Debt Instrument [Line Items] | ||
Warehouse credit facilities | 29,358 | 35,856 |
Warehouse Agreement Borrowings | Republic Bank & Trust Company | ||
Debt Instrument [Line Items] | ||
Warehouse credit facilities | 23,415 | 26,636 |
Warehouse Agreement Borrowings | Wells Fargo Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Warehouse credit facilities | $ 30,165 | $ 31,338 |
Debt - Warehouse Lines of Credi
Debt - Warehouse Lines of Credit (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Outstanding Borrowings | $ 151,964,000 | $ 190,509,000 |
Warehouse Agreement Borrowings | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | 395,000,000 | 550,000,000 |
Outstanding Borrowings | 151,964,000 | 190,509,000 |
Warehouse Agreement Borrowings | City National Bank | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | 50,000,000 | 75,000,000 |
Outstanding Borrowings | $ 20,046,000 | $ 27,288,000 |
Weighted-Average Interest Rate on Outstanding Borrowings | 7.24% | 5.89% |
Warehouse Agreement Borrowings | Comerica Bank | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 75,000,000 | |
Outstanding Borrowings | $ 26,526,000 | |
Weighted-Average Interest Rate on Outstanding Borrowings | 6.36% | |
Warehouse Agreement Borrowings | Origin Bank | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 75,000,000 | $ 75,000,000 |
Outstanding Borrowings | $ 30,110,000 | $ 23,739,000 |
Weighted-Average Interest Rate on Outstanding Borrowings | 7.25% | 5.98% |
Warehouse Agreement Borrowings | M&T Bank | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 50,000,000 | $ 50,000,000 |
Outstanding Borrowings | $ 18,870,000 | $ 19,126,000 |
Weighted-Average Interest Rate on Outstanding Borrowings | 7.39% | 6.45% |
Warehouse Agreement Borrowings | Prosperity Bank | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 75,000,000 | $ 100,000,000 |
Outstanding Borrowings | $ 29,358,000 | $ 35,856,000 |
Weighted-Average Interest Rate on Outstanding Borrowings | 7.23% | 6.18% |
Warehouse Agreement Borrowings | Republic Bank & Trust Company | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 45,000,000 | $ 75,000,000 |
Outstanding Borrowings | $ 23,415,000 | $ 26,636,000 |
Weighted-Average Interest Rate on Outstanding Borrowings | 7.28% | 5.81% |
Warehouse Agreement Borrowings | Wells Fargo Bank, N.A. | ||
Debt Instrument [Line Items] | ||
Borrowing Capacity | $ 100,000,000 | $ 100,000,000 |
Outstanding Borrowings | $ 30,165,000 | $ 31,338,000 |
Weighted-Average Interest Rate on Outstanding Borrowings | 7.36% | 6.41% |
Debt - Narrative (Details)
Debt - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||||
Oct. 20, 2023 USD ($) | Mar. 25, 2021 $ / shares shares | Dec. 31, 2023 USD ($) tradingDay businessDay | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Apr. 05, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 20, 2020 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $ 151,000 | $ 242,246 | $ 718,281 | $ 945,820 | ||||
Repayments of senior debt | (241,808) | (83,614) | 0 | |||||
Gain on extinguishment of convertible senior notes | 94,019 | 57,193 | 0 | |||||
Adjustments to additional paid in capital, convertible debt, capped call transaction | 62,647 | |||||||
Repayments of convertible debt | 23,512 | 0 | 0 | |||||
Payments of debt issuance costs | $ 2,338 | 0 | $ 0 | |||||
Debt Instrument, Redemption, Period Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion price, percentage | 98% | |||||||
2025 notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate Principal Amount | $ 193,445 | |||||||
2027 notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate Principal Amount | 503,106 | |||||||
Senior Notes | 2023 notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate Principal Amount | 23,512 | |||||||
Senior Notes | 2025 notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate Principal Amount | 193,445 | 518,728 | $ 661,250 | |||||
Senior Notes | 2027 notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate Principal Amount | $ 503,106 | $ 575,000 | $ 575,000 | |||||
Common stock covered under capped calls (in shares) | shares | 6,147,900 | |||||||
Senior Notes | Convertible Senior Notes | Debt Instrument, Redemption, Period One | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold trading days | tradingDay | 20 | |||||||
Threshold consecutive trading days | tradingDay | 30 | |||||||
Threshold percentage of stock price trigger | 130% | |||||||
Senior Notes | Convertible Senior Notes | Debt Instrument, Redemption, Period Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold trading days | businessDay | 5 | |||||||
Threshold consecutive trading days | tradingDay | 5 | |||||||
Senior Notes | Minimum | 2027 notes | Call Option | Capped Call Transaction | ||||||||
Debt Instrument [Line Items] | ||||||||
Strike and cap price (in dollars per share) | $ / shares | $ 93.53 | |||||||
Senior Notes | Maximum | 2027 notes | Call Option | Capped Call Transaction | ||||||||
Debt Instrument [Line Items] | ||||||||
Strike and cap price (in dollars per share) | $ / shares | $ 138.56 | |||||||
Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of convertible debt | $ 57,075 | |||||||
Payments of debt issuance costs | 2,471 | |||||||
Line of Credit | 2025 notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Repurchased face amount | 5,000 | |||||||
Line of Credit | 2027 notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Repurchased face amount | 71,894 | |||||||
Line of Credit | First Lien Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Borrowing Capacity | $ 250,000 | |||||||
Redemption price, percent | 101% | |||||||
Long-term debt term | 5 years | |||||||
Cash and cash equivalent required | $ 75 | |||||||
Interest rate | 11.97% | |||||||
Line of Credit | First Lien Term Loan Facility | Period 3 | Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 52,500% | |||||||
Line of Credit | First Lien Term Loan Facility | Period 1 | Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 57,500% | |||||||
Line of Credit | First Lien Term Loan Facility | Period 2 | Secured Overnight Financing Rate (SOFR) | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, basis spread on variable rate | 55,000% |
Debt - Schedule of Capitalizati
Debt - Schedule of Capitalization (Details) - Term Loan - Secured Debt $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |
Aggregate Principal Amount | $ 124,688 |
Unamortized Debt Discount | 0 |
Unamortized Debt Issuance Costs | 272 |
Net Carrying Amount | $ 124,416 |
Debt - Convertible Senior Notes
Debt - Convertible Senior Notes (Details) - Senior Notes | 12 Months Ended |
Dec. 31, 2023 | |
2025 notes | |
Debt Instrument [Line Items] | |
Effective Interest Rate | 0.42% |
Conversion Rate | 13.7920 |
2027 notes | |
Debt Instrument [Line Items] | |
Stated Cash Interest Rate | 0.50% |
Effective Interest Rate | 0.90% |
Conversion Rate | 10.6920 |
Debt - Repurchase Activity (Det
Debt - Repurchase Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 25, 2021 | Oct. 20, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Repurchases of convertible senior notes | $ 241,808 | $ 83,614 | $ 0 | ||
Gain on extinguishment of convertible senior notes | $ (94,019) | $ (57,193) | $ 0 | ||
Repurchase Program | 2025 notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repurchased face amount | $ 320,283 | ||||
Repurchases of convertible senior notes | 241,808 | ||||
Gain on extinguishment of convertible senior notes | 75,204 | ||||
Repurchases in Conjunction with Apollo Term Loan | 2025 notes | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repurchased face amount | 5,000 | ||||
Repurchases of convertible senior notes | 4,075 | ||||
Gain on extinguishment of convertible senior notes | 664 | ||||
Repurchases in Conjunction with Apollo Term Loan | 0% Convertible Senior Notes due 2027 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Repurchased face amount | $ 71,894 | ||||
Repurchases of convertible senior notes | $ 46,754 | ||||
Gain on extinguishment of convertible senior notes | $ 18,151 |
Debt - Components of Convertibl
Debt - Components of Convertible Senior Notes (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 05, 2021 | Oct. 20, 2020 |
2023 notes | ||||
Debt Instrument [Line Items] | ||||
Net Carrying Amount | $ 0 | $ 23,431 | ||
2023 notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount | 23,512 | |||
Unamortized Debt Issuance Costs | 81 | |||
Net Carrying Amount | 23,431 | |||
2025 notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount | 193,445 | |||
Net Carrying Amount | 192,002 | 512,683 | ||
2025 notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount | 193,445 | 518,728 | $ 661,250 | |
Unamortized Debt Issuance Costs | 1,443 | 6,045 | ||
Net Carrying Amount | 192,002 | 512,683 | ||
2027 notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount | 503,106 | |||
Net Carrying Amount | 496,735 | 565,474 | ||
2027 notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount | 503,106 | 575,000 | $ 575,000 | |
Unamortized Debt Issuance Costs | 6,371 | 9,526 | ||
Net Carrying Amount | $ 496,735 | $ 565,474 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Total interest expense | $ 9,524 | $ 8,886 | $ 7,491 |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 3,008 | 3,286 | 2,600 |
Amortization of debt issuance costs | 7,834 | 5,096 | 4,654 |
Total interest expense | 10,842 | 8,382 | 7,254 |
2023 notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 223 | 411 | 413 |
Amortization of debt issuance costs | 81 | 150 | 189 |
Total interest expense | 304 | 561 | 602 |
2025 notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 0 | 0 | 0 |
Amortization of debt issuance costs | 4,602 | 2,706 | 2,760 |
Total interest expense | 4,602 | 2,706 | 2,760 |
2027 notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Contractual interest expense | 2,785 | 2,875 | 2,187 |
Amortization of debt issuance costs | 3,151 | 2,240 | 1,705 |
Total interest expense | $ 5,936 | $ 5,115 | $ 3,892 |