Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day ladies and gentlemen and welcome to the Redfin Corporation Second Quarter 2023 Earnings Conference Call.

Our host for today's call is Meg Nunnally, Head of Investor Relations. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session.

I would now like to turn the call over to your host. begin. may you Meg,

Meg Nunnally

welcome quarter financial I’m ended of Redfin’s and for Meg conference the Head Relations. second June Investor to afternoon results Redfin’s call Nunnally, Good XX, XXXX.

Glenn me Kelman, our Joining call the today CFO. our and Chris on CEO; Nielsen, is

start, forward-looking of our read note may but actual statements are are today’s of statements expectations and turn some risk our factors filings SEC today’s the the be consider results Please believe call. reasonable, and We assumptions that materially out related we on call our Before forward-looking. to different. with to these our in together content

this results. to We Any and information including available forward-looking financial comparable non-GAAP release, on for measures we discussing don’t which in we these to will GAAP our statements website earnings and when the statements our financial is based today’s On are more light of at non-GAAP assumptions reconciliations. measures, or investors.redfin.com call, directly today, to related information update our encourage our present undertake review new most on events. future related you measures

unless comparisons stated. course in this year, call made against same period the prior All the of in are the otherwise

of our the call. by we be a and be soon after remarks and also available providing Lastly, conclusion audio on our transcript will website of full prepared copy the a call, today’s replay will

turn I’ll call over that, the Glenn. With to

Glenn Kelman

earnings XXXX quarter had adjusted and we but generated Meg, our the EBITDA million, Thanks, $X of million in Redfin of within of forecast everyone. second the and last loss In $XXX revenue an hi, call. ranges

$XX we get purchasing as to our between that is has the adjusted XXXX. even notes full unlikely demand year online sharply better half a EBITDA to our $XX discount. increased profit forecast share had $XX of coming to are sales second earn into we million $XX million our than Our from million forecasted net at But XXXX gain loss million and loss of

million expect to an XXXX planned be about million. $XX now loss over This adjusted of From X.X X.X future homes for adjusted a with XXXX in gains market year We July existing We full to XXXX EBITDA to EBITDA $XXX loss XXXX and improvement is XXXX. between a lower years. million still profit. than share more we June expect similar million The than to sell adjusted been plan has expected. generate Redfin's EBITDA

two our year-over-year active the XXXX. share third loss widened our After demand. points, of us RedfinNow to XXXX gains year-over-year every of and reassign basis of a share In public to of the our setbacks. mainly quarter in due XX% layoffs forced fourth our one-time XXXX share customers first listing second lost closure about quarter offering, the X quarter since in eliminated point about in X XXXX the quarter of we points and basis to of Agent of

share or our as sales quarter-to-quarter Redfin agents expectations, sale point X.X% this from us X.X%. of partner demand with number market as contacted quarter In that improve quarter. met our year. by the at between fourth expect the people haven't. to closed X.X% XXXX We but year the had to XXXX who is and the the perhaps third largely exceeded closed XXXX Throughout From or and early in

We historical close reasons. to expect to rates two through norms return

against retain predictable brokers mortgage have to sales hungrier adjust call, and in recruit plan compete higher who help better been will more discuss later As driven agent, sales more rates, ever a before. our this than which us and customers to will we'll our become

margins Once second to we many home cancelled of Our will one for gain, real people for to XXXX. quarter XX% is photography, to refund tours plans, support up contractors but the in and employees more. margins improving second of estate also agents hosting lowered who we've gross buying of from the quarter staff margin in buyer ratios listing XXXX economics. gross Eliminating switched stop XX% and home so commission our their source go from have the managers the unit improved long-term of

same whether far so our will yield share, but A XX% a sale, more keep lifting but employee, that year has of as buying agent, XX% same is from or served that expense of from that sales We from of the XXXX. plus share employees and partners. traffic. XX% a shift factor up inquiries in the will One margins be at in an contribution by XXXX partner the as home XX% many this estimate partner customer the our to

to has never shift we because shifting sales a we growth have sales. building many offer focused is service. profitable could partners but how only cost partners or can't employees to more limit share search worry were employees gotten. better and visitors primary its source site demand better Since are low much handle, been how then we of about that we're spending, and on share continue profitable can closings The listing online how of using And for marginally our the capital, much significantly our regardless to to

between to use drastic Even visitors growth to quarter and sites. for largest. to the these competitors second points decline visitors compare increased year-over-year Comscore, the According XX% site in XX in been redfin.com redfin.com to with from compared second. which the in growth for X% a reduction drawing a advertising, others, first visitor the averaged our by gap away XX sale The largest search for Redfin has rival and to a we traffic in decline and year-over-year quarter second X%

gain traffic months Comparing a bought closed way because the demand our XX prior site to sales first agent purchase. or that force from the the proportion XXXX, contacted XXXX of opportunities our growth first online their had a through the to of all a half of another know people switched broker. we Redfin gives share to sale, half bonafide higher to a the the with whether tracked more Redfin this to We customer who home

amount recommending that the October Our third that rent this In value listing for software have our we of importance looking listings increasing home's artificial home to likelihood or intelligence keep post for for to now buyers from We're Redfin's visitors we've is rental reason and estimating think based intelligence home further in in The in extending afield. a on one wholesale growing software artificial apartments investment quarter we're XXXX to a software like. update that will our don't already are can recognize Seattle the pandemic itself. intelligence. why listings. conditioning air to updates engineers will estimating recommending The of traffic is confident growing. Artificial the built is the of XXXX software or

Open prepare for search underwrite estate since the We've the forefront larger also with offers Technologies. in contacted our been closings, buyers service. opportunity so who much spends interact helping But AI, Conversational Microsoft and of may home and to Google be at customers, on company real us by labor have

time to make explored efficient to We more people purchase, Redfin years have to spend host a complete our more [indiscernible] this conversations of or employees the letting a agents the uses technology sale. customers about with away with from

artificial the when with Redfin the an gains that advantage on real a will can time Internet us engineers disruption published estate, efficiency intelligence over give online generative technology the first in via accessing through low-cost commensurate first believe we get the brokerage a already listings have, map. We powered competitive

we as performance increasing technology expect our Even yields improve. sales should investments, from also

gains drive that our in-person share for out our home listing come with most get expect can an to low coupled real tours We fees, in U.S. to for online ability unrivaled estate markets. shoppers years

Bay home our $X with who best X%, even brokerage for demand starting and contacted who the a massive In retaining the Francisco priced earlier Francisco a with recruiting but is LA, below It's agents. advantage that with But approach a have million. pilot San a markets, much share hiring launching XX%. purchases nearly at agents. our different in higher of entering today in is higher share people and Anyone XXXX we're coastal above would a and for had service San agents bought to the Area,

give Redfin we sales. share the ourselves plan and for Stafford, the Cisco, XXXX, agents on commission LA sourced while to keeping the on Entering margins self-sourced sales of lion high

and $X deliver higher customers Redfin service Our sourced homes better close for sales and hire million keep can and above incremental goal too. agents own who to profits buying rates is their from

that California, extend to our happens revenues, largest, normalizing market, in or we'll a cities transformative home other prices, Coupling it net housing income. on works with model higher gross gains whether this impact share XXXX beyond have a in coastal these markets. changes with most and margins If on driving could profitable

sell able and and to marketplace for we're core the making progress be at downturn, that at will a the to with products people broadening scale in we compete hard for but our Beyond broadening the service. win. with marketplace valuable using business, needed listings title rent a It's sale improvements and to company, the at our through online to result brokerage the mortgage be expansive more

has is in The and increased redfin.com with a expanded rental rental More no XXXX rents ads to even and quarter Aided so revenues part rejuvenated new included offering, of proposition more traffic force, a search. rental doubled, Redfin's says strong From sales nearly to are property growth ahead. the this reason been year-over-year. an accelerated. promoting listings demand value of one XXXX, by overall added consumer all number virtually June we've growth visit June by redfin.com product second it's source XX% to

second sales which price rent that quarter been also impressive. Rents the the in annualized second. the revenues boosted grew has more revenues are less annualized quarter from XXXX through Thus quarter net customers increased to departing to and customers topping second XXXX added the first especially tenfold quarter the to lost the bookings than bookings number from new increase from first

adjusted limited $X.X losses it quarter. breakeven to fourth from $X.X isn't online presence. quarter-to-quarter our the million, our EBITDA in on vision larger But to rents in a keeping narrowed million just to track From investment

more dipped will affected rates. second acquired Equity, to who attach lender real XXXX. the because also of April XXXX, quarter Redfin Redfin their service XXXX take buyers time rate income We we customers XX% increased the used from our earn business of in first from estate the other XX% Percentage second just finance quarter This that to so any X% company. Equity But the than of XXXX. of to in home more visitor Bay rising in is pay purchase want by the that in quarter to Redfin a offer can Bay the most off to

entered Atlanta, places market-by-market time Salt now get and address Lake between to the to second to integration problems stage in XX% us We've for levels attach a Maryland. Redfin, like XX% or requiring the slower Bay to City rates take Equity visiting from to increase execs hiring markets in Bay tax lower keep Equity we'll progress. gated are It Bay officers rate and is believe loan we and making will rates capacity but attach Redfin here, areas. Equity

the its now Equity other but for increase long-term and leaders second, business so the We through to Equity all the feel sales are disciplined profits to EBITDA Bay service the report than brokers are its a likely Redfin earn to small loss first entrepreneurial, good Bay rate is and significant in excellent, about environments. half but adjusted most Equity's future. year. Bay severe will from is projected this

prior is title Our revenues in to pressure From XX% confident rates rate services. second grew of XXXX, can XXXX. of quarter launched pricing on reason we XX% with that business attach an lenders, exceeding XXXX eases we're markets the attach title for keep second quarter the one to ancillary lifting as

this on Beyond of to quarter audience. from XXX% center the online to grew segment our in component handle doesn't the marketplace online revenue, About Much rest more run major national money validating second title demand. ads more sales home the year-over-year, redfin.com. lenders of came which other the Bay service, than a plan connecting have Equity, digital make came from buyers our from of money than our we other mortgage half the is for second which to

sales addition thousands almost tens profit. up the of to want listings listings the on partnership revenue their builders, revenue force but than Zillow a new own from to to of significant of these a will will of hiring site, of to revenues get Rather formed to only get listings By that end online be the our a we add promote our marketplace. from the pure sign builders construction expect redfin.com. to year, portion Redfin increase in we the we generated our

revenue digital Redfin years, to several Over will prioritize continue projects.

We grow our than reducing expect businesses, overall faster and margins to other our digital improving earnings revenue of volatility. any

rising This about flight. careful call months in ahead the will victory claiming bottom. near We the drop rates prices Sales volume are maintain year-over-year now likely the the to that mortgage nearly largest second-half the is even XXXX the low housing or turning in XX was hike over Reserve risk of low. let's keeping market near Before is in to Federal XXXX to is listings stable from discuss There when any to active inventory in months. remain which X%. Chris, be fall, due possibility was the full rock enough another of gains. the a should market. July's year-over-year in through the be Home will period have to comparing inflation

warns down, again. But rates news it the market housing and you good the economists as miraculously the unavoidable, recession come this. now poised almost will as grow to see When is Most unlikely. be

of glorious history Redfin the only grow to way long now, is For returning our gains. share by plans methodical, to

it Chris. Take away,

Chris Nielsen

our our quarter with prior which our in the results RedfinNow properties our moved be periods sold and second results, operations. otherwise I'll last unless to We discontinued noted. To simplify our We're pleased line Thanks, continuing expectations. quarter were second discussing to business operations with comparisons in houses Glenn. for

quarter as basis was points margin shift million margin. $XXX million, was fundamental gross from down higher Total XX.X% to well a expansion in ago. gross was XXX down margins Gross real profit as estate improvements by mixed $XXX from First expanded XX.X%. XX% a services to revenue businesses year-over-year. year This driven by XX%

own or revenue was brokerage which down and million in a from closed in down sales Real and agents businesses, Estate transactions XX% Brokerage Services year-over-year. by revenue, home brokerage our transaction. a X% decrease and revenue generated XX% XX% revenue, partner includes $XXX in increase brokerage our revenue per

buyer mixed a value from shift for on in Revenue well as prices X% was home decreased a from refund in in home our transactions by transactions. revenue decrease decrease Commission increase The offset to per X% driven transaction than lower elimination the a revenue renovations, as which our concierge of X% brokerage average partners more and houses.

margin and Services in decrease expenses, basis year-over-year. point XX XX.X%, points fleet in increase a in gross Estate basis personnel and basis home Real basis costs offset in points XXX point XXX XX primarily costs by was points driven up mileage seller listing bonuses, by was expenses. This transaction basis improvement XXX and

million a EBITDA income loss for increase net up in a $X quarter from higher in offset $X prior loss of prior the in primarily and the Estate gross the Total million, million expenses, Real million, net was lower up Services year from The second was attributable adjusted $XX $X margins lower to the revenues. loss than year. operating of and which more was

was the EBITDA posted quarter and quarter million, the fourth that was than positive net profit million as to million of we million, growth segment was for higher growth and gross adjusted second EBITDA rentals in operating still expenses. by prior generate rental our by adjusted $X of business the negative XXXX. Our rentals offset XX%. higher for $XX with Total Total expect of quarter of revenue its third $XX worse loss loss of year $XX slightly straight

segment generated contraction against year-over-year. revenue, approximately range XX% This the million margin was mortgage within industry guidance and $XX better Mortgage our XX.X%, indicating down XX% Our was down gross result wide of gains prior from year share of a than market. of not mortgage improvement was volumes. an fully reductions from impact net net the lower Total XX.X% $X have year. million, ago in offset $X a as loss million for cost the loss in

a loss million million, improvement Total loss year. an in was the prior adjusted EBITDA $X from $X

up a quarter compared both ago. margin in businesses as digital title million in from Our was a X.X% prior the generated XX.X%, of Other revenue other revenue million and year to negative segment our the gross grew. segment $XX second $X year,

net compared of $X the the year was income negative $X $X a was net $X Total EBITDA million positive adjusted million million in to loss million to year. prior prior and in compared

of accretive Redfin As to with digital Glenn to be revenue nicely profitability which opportunity grow see we an noted, continue should our overall. business

$XX total and attributable and down $XXX million The legal were repeat million in acquisition a from Turning decrease million not $X in expenses did in million, consolidated current to primarily marketing the back $XX personnel results, million in year-over-year. expenses, prior and operating to year lower that $XX expenses. the year lower operations continuing was restructuring expenses

continuing The was $XX a as extinguishment This $X $XX million was gain of was Net in so to better from year. compared due to than loss million. the to impact was million range the guidance. million from our $XX notes million only million of $XX operations million operations anticipated of our loss this gain guidance on loss prior was negligible, net net in also $XX discontinued total $XX

million EBITDA from common our $X.XX share of positive operations adjusted guidance ago. was $X one $X from continuing with to compared $X per with Our range loss million negative attributable line negative Diluted in operations to stock $X.XX of was year million. continuing

Now turning as third range Glenn longer to profitability targets. with the underscore quarter, what our earlier. the said wanted I Starting financial to targets, expectations profitability for as well

the market reach positive Given our no longer being to we in of target adjusted conditions, expect EBITDA challenging XXXX.

our have remains wise would it and rates breakeven. activity cut been than lower market we our Against of funnel While strong, to top close way our think into we this be backdrop, share don't expected. the

demand recovery to positioned happens. houses We capitalize to market Redfin want sure that when remained Consumer on is for make it strong.

XX-month this of for to profitability. So goal, we're the but XXXX. basis on We the in half timeline pushing breakeven running out adjusted EBITDA our trailing focused expect still now on achieve first achieve to remained business a

net we expect to XXXX. achieve income Furthermore, still profitability in

be roughly future adjusted operations for we services in from years. expansion we real XX% loss closer further continuing expect potential and million, with $XX gross the to of year expect full EBITDA the to to be For estate margin XXXX,

million Services million third expect of representing for and continuing Included revenue decline between $XX $XX $XXX and $XXX the $XXX revenue third XX% approximately million, X% other $XXX quarter XXXX, and million, compared Mortgage total between Rentals within million a to revenue from and $XX Estate million revenue Real in revenue XXXX. revenue, between and between total $XX quarter $XX of expectations to revenue million. year-over-year Turning and between operations the we million our our million

gross loss, to operations to Services points in XXXX. $XX by to to XXX discontinued be and net third of increase to quarter Estate a $XX million million Total includes to depreciation continuing net amortization. million This basis the million expenses, total marketing in Real approximately expected in the quarter XXX XXXX. we of and stock-based $XX For compared including million is both guidance and expect compared $XX million margins of loss of $XX third compensation $XX

continuing other of in acquisitions, Adjusted from $XX that to pay preferred operations estimates. things XXXX. are that the This shares our million investments, stock revisions is further and or million guidance adjusted from million additional to common $X note no stock restructurings, expected among of or operations to expect other an loss of of quarter compared $XX quarterly to Furthermore, we EBITDA based a to be stock between concluded third continuing are XX,XXX no EBITDA assumes convertible shareholder. repurchases settlements compensation business there legal dividend

let's And questions. now take your

Operator

[Operator Arounian of Ygal from question Instructions] first comes Your Citi.

Your is open. line

Ygal Arounian

questions I'll think good afternoon. and have together. ask I they're pretty guys, Hey them related. two I

you're of guys to customers rates down. from with the rates you lot that at than time You Like it. And not affordability. talking the But at things I on housing world know, the And overall about and that. coming we've a rates recession this think with about and and, you Glenn, I real So out put learning are live much near-term for time, first a am, smarter I hearing something right? seeing same same kind a on talking on you talked to recovery, guys around the I in all there's have. higher been about about breathe -- the but ecosystem, they this market of adapt no move are, the people incentive and is think Chris, the

go breaks not not that the affordability then, like logjam than And move, into just and with other your improve the agent a on away, then? so bit Seattle I'm you And I structure some are much Are of, adjustable about. little especially And And to more people of fully helps I not everyone's on agents, struggle more just was where way for talking although here, to you side. off? there's the and of L.A. continuing you're of the an strategy, kind rates incentive caught then going a of waiting but find on still that to the San have freeze to agents then, tying problem. maybe you not Francisco recovery making financials how new the you sure shifts the kind the full-time it after laying kind were partner expanding in

a there, lot in hopefully So topics. I important know that Thanks. but two there's pretty

Glenn Kelman

Great questions.

through all, change in housing of half any do first the of market, we second anticipate in not So significant the market the housing XXXX.

issue. You're inventory absolutely right available rates amount to are huge be just and that sellers for affordability a limit going going the of for high to is buyers,

some we trade to So want to grow that units unchanged. Redfin start say our be We about one-time just setbacks closure of for of also but share, should is third to like lapse X.X We prepared which which market a force. QX a in expect just we have or in now to expect QX recovery by sales laying market XXXX. off million the gaining XXXX, able in of this be and we to did

which is, in change a that's our basic unlikely market, It's So the soon. housing take jam. that to on is anytime

not the whole is has only good the a The U.S. that tailspin. into economy sent news rate increase

guess. to in a ease as good should in rates of XXXX. housing probably first That's the always place knows So half Who when. be hard

elements One there we've issue already strategy. our One is the discussed. new. absolutely So are to second two

partners our to we're of first is that make demand more the So resilient. business the element moving more to

we've our of partners yield will demand than went partners. half our So market a to XX% the previous a discussed share just amply It that of our XX% sales of expect ago, about same employees strategy because go a demand our and from traffic. XX% to more affect about part By partners. calls. That's in buying we longstanding year to XXXX, home

have been profitable But we anyway, fixed cost. the want very those to sales incremental and carry don't wouldn't

So we partners. are shifting to

new. what's today, of agents. that the what for we're more This a which first talked about Here's is type is time hiring we traditional

at get agents So a we Redfin but is Redfin trade-off when you'll lower more approach the usually customers, at split.

So same to you have make income close more the or income. to amount of sales more

to to Now worlds personal the their at the a with we're trying margins sales allow sourced agents while we traditional best retaining offer close on both where That's agents get Redfin. similar from they of network would high at a split what sales. broker to Redfin

come So to or meet closed could a them California we let's sales earn in help XX, same XX sales. about say million, an could customers close to agent above the and XX they income, $X XX Redfin another has over but

our we what end will that we're all up a would going or who third they customers even And them not in for Redfin a always at like business. seeing is It of larger where X.X% close of competitors increase and but And though our share compete a have is be who's been market, higher be do. and wants still we it's fear think coastal about these service, buying something Redfin in agent can hoped a very to incremental, rates would the house, that let And who successful would rates close that. the markets where that about third we at margin. contact is out sales what significantly do. go an we the would This for us

we lot And we this so is much and we agent by can better unlock close could of going think increase hiring to if do a a rates better growth.

Ygal Arounian

Thanks.

follow hiring switching up you're or of agents currently hiring that the you're this these have that, you just to agents model. are over to So on them

people. So if this I'm you're, hiring clear the you're if means not

Glenn Kelman

We're doing both.

are need most in we lucrative the do sales better to where coastal we home announcing the So plan happen. markets

going especially So start Francisco requisitions we're fixed hiring fourth in start that person sourced we different a more who San we're pay agents with markets profile lower the those and to and augment pilot plan. agent income filling more to quarter variable sales this have cost, pay. a existing This Redfin with open is we're of in sales in her aggressively to or just traditional our his wants switching to going

Ygal Arounian

Got it. Really that Thank out. you. interesting, how works excited to see

Glenn Kelman

Me too.

Operator

question with next Your Stephens. John Campbell comes from

line open. Your is

AJ Hayes

John. in guys, questions. Thanks AJ taking Hey is this for our Hayes for stepping

adjusted changed EBITDA target you obviously hitting things you new over adjusted So about next to hitting then play this here, but me months? target your out confidence EBITDA talk can just profitability in profit if XX And your pulled of this the additional just to forecasters you just to efforts? are industry currently help cost without are target there levers expecting, to further need cost as that any are reduction be or you set target? adjust this new achieve generally Can

Glenn Kelman

make. are lap need At the by now been that that accounts happen, We've positive, We're our get already a gains, need for of our setbacks revenue sales. of projections Redfin basis some a have just but That at disrupts the we to pending we will about already the do beyond assumed to six in we some but force one-time we sales for months. to to there will sales by we've We careful looking be of we point, and effect. XX% on trends no about further listings. cost reductions that discussed, that target, also cycle in closure those third. believing setting based share for cut about return part this The

growth strong the of funnel. the terms now right powering And traffic of in really then just top we us have

those share made we earnings take factors believe gain us to So that all this forecast. when can share combined we expecting aggressive make and not we're

not So give you if number a but color, it's want don't forecast there. any Chris, you to have down, add the a I yourself to margin know when want take you rosy to

Chris Nielsen

into next part the EBITDA and profit be year, next first Two growth the to for year. that our this to fourth other we of year expect make that's positive adjusted of rentals the and towards of we and business make continues comments this And into also expect I'd quarter progress rest year -- profits. continued

that's make continue So line second changing call that's to the I on a we our talked a been a difference about something today, is increasing. for is and next place expect revenue where then Redfin it and digital the is difference into to bottom the else making And that and has that year.

continue increase, forward. an contributable to move even important it expect contributor more to we becomes to so as that profits We

Glenn Kelman

is the that final thing XXXX over. to half AJ, say about it's

about you on have estate revenue, confidence projections perfect XX So a when is especially the services. real at little when in got least of on revenue, in bit. instead visibility months you on more have comm you've XX, of Mortgage always your six a days visibility

AJ Hayes

consumer great. then the for explore you on to additional And little introduction then of Chris, starts this it, further. a you've to heard? at long-term, Got touched up Kind more margin when color just and influenced ad looking should experience we to the revenue. advertisements you high of Has from continue And might want this all perp housing it there. not stream. bit back what digital the expect need starts, revenue Thanks that

to it essentially kind trying assume is and to to the is plan Just of part of stay? safe gauge this here that long-term

Chris Nielsen

It is.

And Google buttering careful like Google side, engines. the so we're long, tradeoff we and very standing our been for be because other ads traffic if that. going and it that think video that's search on just places getting with a will So affect to I bread run from it's about our other

the ads. most absolute monetizing we're that single aggressive about to webpage know don't going display every with I be So

a really bit component ways other a be cyclical, that revenues much. can have it's obviously but in down services so nearly get And of monetize the can be lucrative, digital our very that as cyclical, to customer estate is strategy. but little not Real a environment. long-term compressed margins We

been in And that our green so money come really just has after month for month having P&L. good

AJ Hayes

Glenn. the luck rest Thanks the Good of year.

Glenn Kelman

Thanks.

Operator

Our question Instructions] next McTernan [Operator comes Bernie Needham Company. and with from

Your line is open.

Stefanos Crist

this Stefanos calling for Hey, for our Bernie. is questions. Thanks Crist in taking

year? detail quick mortgage put maybe rates, a Just the the one expectations for some rest any attach and the takes there more and on of

Glenn Kelman

what the Mostly remarks. prepared in was

hard. some it is So seen rate to at going number move up because markets plus, but we that we've of can a is think we be XX% sustainable just

I doesn't to need just have executives other recruit I'm showing But by the really markets just and offices. personally. to sure we we we're Equity make sure officers. sales side have make a visit wrong taking enough that good Bay itself. Equity it's statement by understand those Bay that what's areas challenge from to Redfin some side in having low to loan rates more. So all In execution that need and a areas the makes They just have flying exactly attach up

keep moving There's see think we're just to we're pressure incredible I a right quarter-to-quarter, too point in attach do don't I rates seven lenders from up. going jump on now. So price going but think

a issue, final at at their just willing is the or there keep business, underwriters busy. buy that's that because So to no profit willing are loss money loan still lenders to to still the trying they're

easier normalizes, market the can't I as too. it'll So to rate think be drive just We wait that. attach for

and rolling up fighting sleeves hand-to-hand, our door-to-door. we're So

Stefanos Crist

No, Thank you. that's great.

Operator

question comes Colantuoni next Your from John Jefferies. of

Your open. line is

Unidentified Analyst

is Hey for Vincent guys, on this John.

you follow that Can expect Thanks it's financing rentals there. And some growth really making coming clearly you're appreciated portal. traffic; strides just with, a core contribute share with what that is from, web well. that largely on you thoughts the be the nice where or then to as looking Zillow think it's, partnership guys. as or any if help about know, homes your partnership have that would new front. for you or And you business us for folks other whether on you means then So the on how us on up, could if

Glenn Kelman

level. like getting the model, more we had a competing launch we been City. our as had but main retail we're of where at Sure. places traffic had national reason because traffic site markets, some strong to been very we're slow that in a in Kansas Cleveland regional coastal portal Well, Redfin scale is or

has And of for the as so has expanding very the but when one helped not center for, estate that just of we are just sale then rental of relations, establish are people a States rental efforts, to go listings. listings places of quickly, looking generally building and loads at across in sale all making better redfin.com just sure being so for United the adding listing housing that every authority search on experience, listings, relevant for broadened conversation our listings. our top people real searching the Google, terms link our And public for site offering

search think is site experience so number that fronts, offering inventory sale we're a site on another big And then of inventory expansion good. to big So been part is of for three listing our sale for and then geographic search it. two we have this. just me when I'd always It's different and say the been of traffic outrageous type rentals part a better

to with then So that hope. Zillow to the very share traffic with Zillow multiple that's approach why is one faster. And our taken listings the listing going us far they services. search of continue to we're partnership, whole ways have consistent take put get listings as just It it's let sales to compete all for more more working just just as the the own we for force would've We that have and hired could to that in don't years. listings builders thesis

Zillow was industrial logic with of really working The strong.

split to have it over the But sales own years, we when because them pot. helped and their than up We with sales revenue generate the revenue digital we that better should force. helped force. us five get deal building they profitable builders think more is of those we that gives some And our even a now. it they've They'll this us is model sign

in this. partnership for with out be even with its it XX-hours. a working It's traffic plugged glad though on first we've them them sometimes we're been So to good

Unidentified Analyst

Thanks. it. I appreciate

Operator

[Operator Instructions]

Glenn Kelman

we'll work you make We're and for right All tuning as Thanks to our going we as everyone, off much go to think We everyone's that's I money to possibly quarter. a your talk in support can. tails appreciate in. it.

Operator

Conference for today's Second attending. day. conclude everyone Corporation, Thank does XXXX you This Quarter your wonderful Redfin Call. Earnings of rest a Have

Redfin (RDFN) 3 Aug 232023 Q2 Earnings call transcript