RDFN - Earnings call transcript Q4 2024

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Operator

Greetings, and welcome to Redfin Corporation Quarter 4 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Meg Nunnally, Head of Investor Relations. Thank you.

You may begin.

Meg Nunnally

you. Thank welcome and results XX, fiscal and the call XXXX. Redfin's quarter fourth year to afternoon, conference financial for Good ended December I'm Relations. Head Redfin's Meg of Nunnally, Investor

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

that statements start, our of and our turn results are forward-looking. reasonable, note call expectations related out statements assumptions may materially read believe but our Before and today's different. to to are some we on factors based consider filings we with We assumptions risk these Please or these SEC be forward-looking the in Any events. information together new update and future the our call. statements today's forward-looking today, of in don't to content on of undertake statements light actual are our

GAAP related non-GAAP including for call, available when against directly measures to course the information operations this stated. We earnings call prior unless we financial results. review present investors.redfin.com, reconciliations. in you made is otherwise our same the release, the measures, which this for year, comparable All at our more will encourage continuing in website discussing are to today's comparisons the relating non-GAAP of our measures most financial period on On and

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

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

Glenn Kelman

with growing at fourth since straight fourth guidance XXXX. Thanks, It our last and of quarter over revenue point $XXX growth up year. Meg, of million was and hi, range any real within faster our Redfin's everyone. the quarter services fourth was of than estate quarter XX%

XXXX loss estate But from our of million quarter Our XXXX. real every higher-than-expected to range guidance pay adjusted adjusted still, business EBITDA agents. for to fourth our below improved due was EBITDA $X

million and million over of loss full $XX Our XXXX. improvement XXXX year million, was over an $XXX $XX adjusted EBITDA

excuse transition Our fourth our agents to than were onetime me, higher on due which quarter also force sales transaction than faster but commissions. grown pays Redfin profits Next, costs were lower expected. our -- has entirely Onetime expected,

Our as than quarter a a and At to hires increased expect of outperforming sales points a effect we're on spring. left who them customers grow today, sales set a has about closing, salary have in before of average sales new the markets XX% to Halloween, the more the agents. of shifted new to When first onetime census the we our lead But preferred cycle, of also agents some close. to from meeting third been X,XXX most and in offers, customers increase. X,XXX transition with then agent critical an magnitude start in just already tenured Redfin last has our sales that hires' this winning new Next

a revenue force. news a market few flat forgo better quarter market good gains we fourth for estate our of levels. that But pre-Next expect this Next, real growth share quarter transition, and is attrition shifts We'll larger year-over-year. usually exchange The below to services in that X.XX%, from declines was during share sales a months the gladly after

balance partnership our strengthens on got can our via for sites listings sheet payment the ways apartment funds compete The rentals On February that The partnership XXXX. we high-quality advertising. of in of double rapid on a number XX% is the our one to a will better of partly in and force that million expansion with just go attack Zillow sales the plans the $XXX increase we traffic. XXXX Redfin X, Redfin signed so

significant adjusted in increased profits from more growth personnel, January in earn we profit layoff the and of Due senior EBITDA can Redfin a XXXX. invest this to the partnership and rentals still

profits, profits midpoint turning the we'd to of future the significantly campaign first our up guidance, X% more won't and Our improving in incremental about quarter XXth but $XX stop at as until be increase be down and year-over-year million not until January is already if in should didn't expected $X mass advertising. months investment January demand media are June. million start

third by we XXXX, amount entitlements. XX% and XXXX points, of quarter be a pay XX revenues, about also From by other the less by costs them only than of real because in significantly the bonus. because we but Already, we expect and care agents entitlements margins we As plan starting real the estate to XXXX quarter their underestimated margins offset February approach and fourth estate about XXXX fourth slightly than in the in month cost quarter estate smaller eliminating XXXX. fourth that of first higher $X million gross to services vacation grow the by Next these of quarter expect in services quarter. margins real to recognized gross We in the reduction declined our gross pay in this basis

to sales. the margins winter agents quarter increase in again second as expect hired We start closing

services. XX% up surged rates website. from fourth would Title ago. customers after to sagged agents that fourth attach more more high to we'll rates real year year-over-year share quarter in to customers, margin every announced and a our improve business but attach the mortgage and we in XX% monetization, market are increasing selling in segment. XX% Mortgage the from in keep title demand a estate from that sales brokerage our we the larger get from rising rate quarter, money To January force, attach services also other in increasing Beyond also we in earn XX% gains expect plan profits to

based were, invest title on fourth XXXX. from Facebook the improvement just campaigns Our quarter time, and fuel revenues, we homebuyer and our profitably the mortgage now Google more ancillary for segment, of demand. XXXX, not reported broader to XXXX in first able sales. sales EBITDA, adjusted home other separately in In on title These generated of $X over business million $X million an should

February and XX of and [indiscernible] property XXX sales even On in lead plan can by a and can more $XXX without off that lay top believe more their sites, grateful We connect for now heroic we efforts. upfront publishing to rentals roughly large, technology by of to easily the increase rent June lucrative XX, listings. our increase many audience million Zillow's invest payment, and our who apartment driven the we us plan sales pays even for rent.com each that traffic Zillow-Redfin apartmentguide.com profitably Between we seekers aside rental increasing we also in And money better, to audience setting listings, will audience partnership more support. employees, managers. We're monetize profits.

unpaid earning site search the it revenue. to for XX,XXX the our experience easier monetization Over Zillow management inquiry paying set site search about, and from customers generated apartment every about property past through our showing amount so the about partnership But apartment couldn't over to on many sites prioritize forced every listings that we listings. marketing campaigns we seekers' with scale our improvements. gives to listings no ask that us and our need apartment direct And year, it longer were audience easily a show no audience makes

rentals profitable strategy is advertising our audiences. final digital element from continued the for-sale of to broadest, The monetization and growth both

from XXXX sales adjusted direct promoting letting million advertisers in is hosted as Beyond who our redfin.com. includes Monetization monetization. revenue sites, audience segment, can't from segment, on connect EBITDA, title we listings and ad new growth seekers now This with known from in digital advertising from $XX XX% lenders combined with the earned other previously the serve digital construction on our to further our display ourselves. XXXX through come advertising accessed with expected up ads mortgage networks. once business to

seem traffic really our better to guidance. now with monetize Few can lay We'll gains our profits. plans usual what housing our quarter deliver we plans to market our of and the remarks prepared likely first is Chris than briefer execution our But and out to discuss because and we investors are share will that matters more more these argue so get understand and audience agents.

afford reason election, homebuyers after the significantly Demand to September. unlikely existing million remain after to One hard is ease an with a seem to it quarter likely on are first focused XXXX. to sales should of home. now million sales November rates X.X compared in turning Pressure making increased in growth market because X.X out year-over-year for in the home last just started Redfin rate February interest a shares high, home at year but of relatively XXXX the on gaining home annualized recover sales

pricing. inventory and these the expect home continues U.S. summer, sellers increase less comparisons aggressive become on sales if to we get in As easier, growth to across strengthen year-over-year especially

The and has balance between volatile buyers been mixed. sellers and

ending of worst of market." is of year-over-year. For Even the across last behind has Cincinnati bidding home buyer's range took downturn Sunday, our XXXX, if report agents the sell to increased shifted market example, prices, number Jacksonville whereas wars For wide X a rebound "XXX% of XX% the listing a unlikely the to the a weeks over is sharp sales in probably us. days U.S.

great to long. financial Chris. similar important initially to the is Take the and homeownership culture. away, Hopefully, that gradual, the but We it because to very ended crisis, recovery expect American slow one be so coming,

Chris Nielsen

software a driven periods. and don't increase by recur $X profit million year of rentals up margin in gross by lower $X of was decrease $XX Thanks, held in were was to and at Total decreases total $X partially million $XXX a were These attributable primarily XX% that expenses. software decrease XX% ago. a credits were The Glenn. to amortization million future the expenses XX%. million million, Fourth operating year-over-year. expect marketing up offset down in quarter million, decrease year-over-year, million $XXX The recognition revenue expenses in was a $X expenses. Gross we steady vendor from

below This $XX EBITDA EBITDA to business. year. $X.XX to $XX share guidance brokerage loss $XX prior our bonuses discussed of million to of earlier. Diluted million was of up carried the due per from stock adjusted million year compared The was loss a in across of attributable segment compared is Net loss transaction was million one year. in a $X common Our million loss business loss to $XX adjusted with range, $X.XX prior million primarily higher-than-expected broad the the every $XX ago. loss our Glenn improvement was and based loss from a net of

$XXX points Real services, a on XX% which we've an Turning basis in our while and XX fourth increased segment results X% This driven to and the on field transaction revenue down basis offset was year-over-year. our service in estate was XX%. generated estate transaction Brokerage point gross XX% was Revenue margin increase instead touring from XXX transactions brokerage personnel point partner eliminated made per increase and our XX% for decrease decrease XXX expenses, a on revenue was in X% as by Real a for costs brokerage quarter. revenue while transactions. home activities compensation businesses, these in up increased and transaction per brokerage up contingent flat. million revenue, closed in includes partially primarily partners XX.X%, by basis year-over-year. compensation transactions, bonuses,

improvement In home incurred from addition, was there sellers. home behalf a XXX on of point decrease basis costs

the for in in $X from real quarter of million year. was loss loss up in million a was year. $XX loss estate million, EBITDA And the prior up a from loss prior adjusted $X of Net million, fourth the services $XX net

of $X straight quarter was $XX rentals gross Net ninth posted Adjusted was growth from up year $X for of Our revenue million in XX.X% million, year. prior from ago. a a $X million, a of down fourth its Rentals margin X% million, million for year. the with from loss loss rental XX.X%, prior was up EBITDA quarter the increase. segment net $XX the from

up gross million million XX.X%, from prior roughly $X in generated Net loss prior mortgage compared Our revenue, Mortgage mortgage flat ago. the year a was XX% was million $XX segment from X.X% year-over-year. $X year. $X to million, the up year. loss a for in margin loss EBITDA was Adjusted

more out businesses. showing detail both the and and modernization our results segment year, reporting, our title the in For broken quarter we've from

title $X prior loss Adjusted generated of segment million, title for revenue, was $XXX,XXX $X in loss the a income Title year-over-year. from year. $X in up million, a a was is ago. XX.X%, up of Our the from from $XXX,XXX up gross EBITDA million in XX% prior year. up X.X% margin year Net

Net up year year-over-year. of segment a monetization year up $X ago. up slightly revenue Our a EBITDA million, ago. generated $X X% million, income slightly $X was from Adjusted million, from was also

$XX of such total the rentals gross as marketing million compared and million million offset revenue of increase. large X% quarter Total marketing the compared help our to approximately XXX $X to be We year-over-year of quarter to between Included is Now to services change marketing quarter. XX%, to million, representing million, points first financial margin down roughly up million. XX% for year-over-year million; revenue million $XX Real between $XXX services due approximately expense expected spending. first rentals spending Total the to up remainder turning should be of estate of is mass to expect expectations approximately media $XXX for year-over-year real approximately XXXX. the basis million expected between in flat be to a higher total savings million; XXXX. increases media $XX expenses million; revenue revenue and $XXX to XXX XXXX within are first don't between and between revenue mortgage are the mass $XX of revenue estate expected on and $XX $XX monetization revenue title million; $X and $XXX and

approximately the charges million million to the million associated partnership have for completed our quarter, which expect approximately to noncash we'll longer we million In the and is be Zillow associated $X $XX with Of first $XX million needed $XX no business. with of associated charges, cash about to write-offs is $XX to $XX $XX reduction million with go-forward million restructuring of total, in that the force in charges rest of January. and

is million. be between Total $XX expected between EBITDA expected million. net be and $XX million the and for $XX to is million loss first Adjusted loss quarter to $XX

Once to Before impact to the provide deferred apartment of color will segment the rentals our partnership for fully is occur like little revenue as by million payments from financials. we I'd the announced your expected from the a primarily which of be Zillow take on leads our July Zillow partnership comprised recently initial questions, rentals as well expect more XXXX, revenue implemented, amortization $XXX of to we seeker payment. our segment

from Our has $X.X revenue first quarter been but Zillow revenue implemented. includes that approximately for guidance revenue the because initial deferred leads any partnership include payment not rentals in yet from million doesn't

XXXX more. will expect revenue decrease, As transition, to basis. will result The a on we for this more we rate over expect we is expenses triple make rentals run EBITDA this even segment but adjusted be decrease than

questions. let's now And your take

Operator

Naved with [Operator Instructions] Khan Our first question comes from B. Riley.

Naved Khan

you're one ad questions, in the the about year of should should earlier? I maybe last $XX spend to first have spending it maybe timing trying there to X that spend why remaining quarter. think I in the how terms about on I you million a the Or in decided Is versus of think marketing quarters? impact do that

made, partnership it the Next and other including things? the What's way this question place, in free you've full all profitability. is have of other addition think some changes And I then flow around cash had year in the EBITDA just right other about that to to you now and

Glenn Kelman

Sure.

please I'll in when color Chris, mind we to be about their we and But have add, they and if the homebuyers use early home. listing we're top to do. to think that's are for which thinking as start, market, because started advertising So of any broker you wanted

than mass lift media expense. now the that have of January, great We campaign. run the lift It to rising, of in increases in have the June far, so are even in is second news. we media half through saw we're the expected should the first. leverage that more in glad from ad rates will mass So that year demand, is ahead interest producing demand which And

advertising us had partnership XXXX. money just good has prospects gone more we the here got restructurings savings. spend to that spending especially of pair be and And with to you significantly the chips did beginning the and We've at better, more are take one Coupling agents in that We several invest think all with the share. we we expect when those through XXXX. then to when put because on less to in in profitable in Zillow cost in And advance to we've of agents room table driving given money to wanted XX% growth not on make demand. We start staffing. painful XXXX an on

Chris Nielsen

the of fourth just about I up quarter have expenses but the would quarters year. marketing marketing terms we get $XX expenses, in in of increases add second, and do that don't the as we first the expect year, we into million as large third of

Naved Khan

there But a would then? increases basis. Is Okay. fair a be on year-on-year assumption that

Chris Nielsen

advertising, generally, on but depends mix you It expect. yes, should that's what of the

Naved Khan

profitability, in then of about any full flow, terms magnitude? right of the terms in year And think the EBITDA, there Or way cash the what's either guideposts that? Okay. free to

Glenn Kelman

it we've significant as EBITDA. Well, characterized adjusted

So adjusted we're in want to not EBITDA. adjusted EBITDA. millions make We in $XXX,XXX looking to make

Operator

Our with comes Campbell John next question from Stephens Inc.

John Campbell

like average. mean, I X the looks compare from ago like in were a it on So XX% agents months' think Glenn, count number XQ, a and mentioned up XX%. metric, If to it take that's the the release lead XQ I I that's period. agent obviously press up you quarterly

maybe stood I of ended year? and last probably can maybe think time Hoping your stood on maybe up for agent where where higher bit what one this that kind of count of expand help us you kind amount that's to that that is square today a exiting current year the or this lead good agents. you

Glenn Kelman

Yes.

week. the hot of So remarks, of off end this prepared in citing press, our the past so we numbers as were

through They're continued in So our of And yes, offers. we we've points And reason key bringing on especially than week but in in we'd winning at QX. hired our tenure successful agents of that bringing at months meeting really because, good at the just agents were and being on the more average the we is getting agents. the that we QX. first did X been last comparing the important to customers funnel, QX, end X most outperforming just and significantly hoped

the the color, to QX, that in in it is if math that, that's and And comes you averaged excess a do increase. of X,XXX as Sunday, So we're about XX% it out last of X,XXX. on

John Campbell

and that's typical the as like the just agents mean, It had I you was you ramp-up are like remind past, these ready go through to seems have turnaround help And actually I go, to training. have a sense, before longer agents, time. hot that with these there that very us, they in hired would of start still to helpful. you maybe even Okay, broadly it in but cycle. maybe seems Is to generate couple then correct? a revenue. know months

Glenn Kelman

It is.

were experienced novice tenure. if That to just agents, their for many proportion a less to hire such is of factors brokerage need there for that We agents recruit So ramp can craft. we level successful is high led now agents. times at learn hiring you relevant any X long One agents. they are because of

The factor X sales months. is second being just cycle the

few on demand but the have find website agents will on to close brings, to that an going one and a all over it. deals own, takes and our a bring then connect those they're because to time get just So customers their offer house, and those that

X to just So X it takes months.

John Campbell

$XX squeeze more. to Chris, like think, that. million, of That's in $XX.X Okay. last Xx That's, year. I north If million, I something relative rentals on the great. you business, mentioned one profit could

So that's great.

If up at it's help than so that, revenue revenue hoping kind mean any there us if the here as just or sitting that's I larger of $XXX well. far at know. that scrip of XX% side, exiting I can or point? the don't maybe drop On sense this something million a year. you you're maybe I'm

Chris Nielsen

to a a give least is, main fully direction course, to reason try here. of I'll you little at cautious bit partnership. we haven't the launched Yes, be The

advertising businesses down before. revenue, also And overall in are So lead being things up a where just our the core should entirely. of paid X/X But then you from shut are about we'll learn business, the which that It's a running. down terms digital being we're meaningfully the lot once and because basis. of revenue, portion services of remainder was those per business, expect was it the on of

that thing that's meaningfully we a should but So revenue not expect I most do what's not know of And but you down important the think here is and lot -- but XX%. because be detail we to here, we'll . better profit also going dollars. more able this up do help inventory, to consumers drive is think end that show will being more for

Glenn Kelman

to to point be revenue to a we're getting we and handling Can of we one squeeze done the sale. of I our it, one there. just marketplace But that declining that, clear a site, profit our If to just going the marketplace, less it we on could because the more yes, more Apartment that, expect listings but add it's cost business, Chris? generating Zillow just a business Rent.com, want more wanted on get building larger have where is own. be rental really larger growth Guide to on will run I leads. we on out there's But think

it expect a . we sites grow, be going grow revenue generate And they the So that, But smaller with profit. to the will to grow. the and forward, basis. to leads those on

Operator

with Our next from question Dae comes JPMorgan. Lee

Dae Lee

I have one.

I'm Next showed any the in that launched different would gaining older new markets relatively older market well? markets differences next those markets, when talked there in good the a in compare the if if share later especially could about the markets. are older ones, that year-over-year market indication share XQ, the you slightly across you much of trends, year You you're new curious share the gain Next but versus And Next key be in your how being as X you cohorts? And

Glenn Kelman

Or want take it? do to do to me that? Chris, do you want you

Chris Nielsen

I'll you commentary. and don't it, why take add Sure,

Glenn Kelman

Yes.

answer to success fair market but Those Francisco, were shifted had, encouraged by of segments where say that But the of we especially first end, that LA. high it's say, that Next frustrating markets the have of think worked transitioned. X markets generally be the here's and we the here's is to aren't share, really share glad market San different the here I the well. in market we're we first going it's out reporting share we're of the that

Chris Nielsen

the close going And have to comment growth that customers for that share through we've agents I'd program and is forward. even hiring metrics stronger will appear fuel only that the add just been to be

Dae Lee

just it. for than Is then. are quick to macro for you next right in reflective environment? follow-up your marketing guys to the way think so confidence more other that it safe And Got the then? us program XXXX is planning it more in assume of ramp the about Is that the

Glenn Kelman

exactly about not think I how it. That's

we we because I got think of restructuring agents the other part demand think we wanted is our just growth. it money can lowered We've on said. part who people, of that some But spend you on money on it media and of spending been staffing. of we've that the great to our as just more through well, is handle more our

do that we I compete aggressively. that compete meaningfully think other the more have demand ability Next, harder wanted we from to 'XX think meaningfully 'XX. macro is Next. if even We so we better the traffic. be factor, is just better that will felt our we wanted of the didn't because to But don't for And to fulfill to

with we've like anybody. make you a advertising how XXXX are that where to sure you toe restructure much decide to So the just business go through we year can go to and see competitors toe got you

Operator

Helfstein comes Co. question & Oppenheimer Jason from next with Our

Jason Helfstein

if leverage you're around first, Cooperation platform guess, and kind Just that have thoughts your on strategy the Clear of, and anything just of you are you planning breadth Redfin. your to Glenn, I

gross why was also think was just And X if the then have a other then do in don't the to in color there with or step-up in non-advertising, the quarter that any sequentially? had or any I I of on color weaker And kind Chris, just that. others. it margin non-advertising I mortgage and on know OpEx.

Glenn Kelman

Sure.

of Cooperation The category So to But is obviously primary Clear in real that since Clear traffic few XXst. to a do the about to was notable trying the to me runs is what I'll a Cooperation. proponent website and what's figure years industry has estate out start fallen ago with XXth it. for that

one it the argument runs So audiences one just see I scale that small number you are counter publishing having. going to. is there's and moving That a websites in think of on website only inventory to websites direction, large that the trend withholding that that

find so on new ways sellers post accommodating that listings they want that to to be our more it so And may their website. be to we

So I only to fairly that, the visible can you you think listing can it want MLSs aggressive can been a have you put you already photos, soon, where the upcoming withhold say about brokers.

want to is We on listing noted is exposure. maximum Chris, argument you think consumer's market harder to and still comment It days harder just XX%. on So market gets without I that up in mortgage margin? seems this that softens, just remarks not in sell to to debut best house. interest a it where do make the that the as you getting a want our already

Chris Nielsen

Sure.

business, we mortgage The stock-based XX.X%. the there so a basis, X.X% quarter. year. I margin expect is the was would generally a the what and just The up fixed sequentially, down with that's year-over-year, quarter. volume see what sequentially fourth was decrease about Typically, gross year-over-year increase And because QX lower fourth expenses. had fourth in cost, G&A of from So to I in weigh comp down. up. think And XXXX a even then on that comparison where about the a mostly in gross what keeps into operations we in mortgage were asking quarter that things that's were you reduction on those to But margin that's specifically, and year-over-year of

we last had a It's so in that appear. they period. And that more are comp just year in things reduction a had stock-based as flat would than we benefit received

Operator

question from Citi. [Operator with Arounian Instructions] Our next Ygal comes

Ygal Arounian

you your On rental you since benefit First, if Zillow to specifically get much a and see on break Redfin.com, integrated traffic how that out? the partnership think do transition site, this as towards you just you've is much how make inventory? traffic more on could of to share the for rentals. of and rentals way And rentals, a there's there

so the any finished count, hiring? And strength attrition be terms kind through want just you're agent the of Do you you closer of the remainder attrition? think in kind plans of hiring you see And then do do What great the where to is this to think the in at for expect moment? the point? you coming at Or to that far. year of the are further on issue the

Glenn Kelman

Sure.

when engines rentals. general category think X I they in that versus So search good audience we the look authority on us X of real other haven't websites, Google rentals search the for for-sale you're but or about audience, separately and homebuyers larger just for-sale issue looking rental estate And is evaluate whether released search. also instead at evaluating in for segmentation at is

think real so listings. other been has And that websites we in a XXXX issue estate significant had rental it that more

that We when clearly could realtor.com a signed see Zillow very partnership.

will we've And tied you makes in we've back. about looking we get XXXX. about do gain, that us may bullish so inventory Matching got another competing XXXX stick behind and our our what just made but been not hand happen competitor, it hockey same with like something do one feel fairly in at feel us like to the

advertising, should And do traffic. for in about over excited traffic we're will good traffic. also that think we just with think we benefit. be it rentals. a it be Coupling for generally immediate We So will year the time, better

tell hard you're effect of that always a predict, anymore. salary getting it's pronounced not there attrition, hundreds agents to a but you when is On

in our long-established a I think give just it strong because most you agents every X% was raise year. markets especially

we And them say, had their to rest with markets, our leave in, agents transition high been of likely of when those like relative more a workforce. to had some Seattle and are who really salaries the people So the customers. market

seen since. pay not have We a It's much attrition good plan.

able recruit are whom highest to plan. excited this and agents, We performing have agents about am effectively, say, agents have who the quite been so many of remained I our just

force. our So disruption sales sure, there's such change. onetime It's a in big a

we've just move. got traditional we But think attrition, economics and much good industry, expect to have go-forward stable You in the that. are competitor some not a here. then absent major advantage brokerage expect no, fairly We do the

to question We're hiring. then hiring. And your was keep going final about

still is of some agents that fewer would Some we customers gives we that. an agent, our if feel per for-sale like to and all-variable increase having had rate is latitude we do plan demand close and because undermonetized that us and more

agents. I be own gives reason is some to think just agents brand, our we hire have can curate also to us to we the think its only you continue latitude it random a website decided The that dingbat. because that someone come real the we you not to have somebody to best to particular absolute website you know good. destination estate neighborhood. you're the the going It's some and be whole for only hired where get It's

and sure promise. So lets Redfin aggressive hire every performance that just the agent continuing us monitoring about be making delivering really to is on

Ygal Arounian

in If follow-up could one squeeze I on Great. that.

about the -- up demand January. even before in the You talked you spend stepped already seeing better marketing on

keeping also NAR track since of We the think, I sort sale that. lowest of -- of of sales January, month pending record home was saw on home

a are X points like together, Is you in be So much thinking gain. you those right force, it's to bigger, with about way share the and kind step-up put sales that the does way? year that bigger guys the feel of kind marketing more stronger, going meaningful it it of that

Glenn Kelman

we've about us. this give learned will definitely more chickens especially strong before asked provide plan. think Listing confidence I he also Jason color, they but demand counting just to to some Clear the Cooperation. careful hatch, since been about for has that's Well, be And

industry. the in leverage more us gives that So

website. just pure Just -- we're not a

have only own from who apart want it brand the just macroeconomics. quite fee. listings can at are speaks for affinity brokers fire. to our with withhold level, But think, just feeling want secular other a to, the People I fight also pinch listing you there's some We listings. some fire If lower

And demand so for track reason, more to deal. mostly demand aggressive more just to consumers whatever a but tracked with sell-side whether buy-side are with about website traffic, get wanting better seems is

Operator

Colantuoni Our Jefferies. next question comes with from John

John Colantuoni

gross they a follow-up. plan ratio range? you Can talk I incentive ask more all, of targeted a margins, back and the versus making on how agents bit Redfin portion have to wanted are little that I of And bring generated closing adjustments about real estate Next. to leads to Redfin-generated help impacted structure economics about to your economics at has themselves, any the if leads these what you

Glenn Kelman

Redfin-sourced that Sure. self-sourced mix for costs that some a made We don't therefore, agent, offer vacation other We where just and The resulted But operate split profit has, in much QX. mostly expected. onetime some don't transition advantage those sort and gross business. pay, traditional I'll from offset anticipate only that were there generally, to accepting discussed. like self-sourced can a that year. earn expected, higher sales we gross of the slightly mostly margin costs as We've than brokerage some we much impacts of higher already sales. basically like much to competitive the start. expected has we result, we generate when adjusted been was already EBITDA agents this Chris, we The that a adjustment it's as in the entitlements been sales between said finish. eliminated as you and

we're happy with that. So

think is this can agent And would we an our segment closing of that recruit we're who at doing business more way that profit treat us agent the brings about self-sourced no basically And gross from margin, better online higher a do audience. who's then as it if that any at we the business Redfin-sourced sales other earning the lets harm.

after we're from that? those a what online on can you amount goal given deals. of audience shekels maximizing really should the would we But gross make Our otherwise, them add let from is a do generate it. to Chris, We Redfin.com. profit what few is

Chris Nielsen

I for add also outside agent and would you look just that to pay. with expense of Agree we've continued everything said, reductions

did than last terms the continued We efficiency margin we help also. have will managers staff gross year. drive improvements We're support fewer in that expecting year of this improvements there

economics And to but we so profits customers saving we drive where then a I vein, we're on really agents, of for the a similar can and kind couple of our making have focused but for also enumerate can great sure in others the business.

Glenn Kelman

that on appreciate the they the know that not they per and that's when managing still an XX we are well get I'm who's they at that transaction agents cost? aligned coordinator We I they And have sure yet that, XXXX. of support just volume, people. their lower asked, I recruit level the I not anticipate incentives benefit. deal this only this to sure don't been could can other need follow-on, see a so level. But anything I'm manager you so need double a entrepreneurial more maybe you they have or doing in but triple build support unanticipated

that weren't What's that so And over long-term support just to basis just costs, about it though? follow-on very feel go-forward confidence that with a on time, we they now more And gives aligned leverage which great. will And expect much get used and sorry. just we our your agents is I'm over our gross are. it us margin.

John Colantuoni

one Yes, sorry I missed about to a a unpack costs relative in and had just expectations. cost this, could if maybe you -- quick more upside areas main and transition of the I bit the your

Glenn Kelman

want to you Sure. first? go do Chris,

Chris Nielsen

Sure.

the month-to-month, quarter-to-quarter just were as somewhat base country. rolled just simplest higher description mostly that can expected. We were than think to mechanics the out we whole see costs program we is across that some costs agents program the associated expected. of the This is I So with than higher we related

can coming made on, kinds what profits mentioned measures terms as we see Glenn fourth wanted that's to the we in in And of additional quarter. the so program the that XXXX. you of And in those reflected for drive see adjustments as we to earlier,

Operator

question White with from Davidson. Our comes Tom D.A. next

Thomas White

maybe or your the first of values, were of just brand, one more markets unique than your might Next rolled it's factors them structural those out awareness pronounced. if trajectory Glenn, higher I your your about to have cause kind X comments are for you the gains home -- recently sort a Just and just in Redfin It look that across about seemed share elements share me. there maybe most curious Redfin different of Maybe to any the that markets, kind was a country of know, trends other of of as kind you don't share implied whatever? sort kind in different maybe earliest the maybe follow-up markets. I the market of end or markets? markets,

Glenn Kelman

which irrational. I mentioned Well, some been Sure. to long And that time one, tended had is where economically higher with salaries. agents has level, at have Redfin markets a already become

those agents over unavoidable. having And churn in was so part

those share market a there's So going in be to markets. onetime impact transition on

just factor about other price home The is low market.

deal agents good good homes, selling for it was homes. for prior wasn't a $X and Redfin to a selling of Next deal agents So $XXX,XXX as million

it now. market markets that Chicago, months were even people about getting man, true. But market that No X difference San people Redfin And checks like ago. was probably has what There about statement still happy in like and are a months There universally a who general a fine now. commission have in in a ago grumping you home made just is few so about are were who prices. yet, were have I it agents more lower was So just to concern there upset there Next than Francisco. they're X tell so

is know that life unpredictable. So I

it pretty we count good, But said, can't your man. It good. You until pretty as chickens, felt felt they hatch.

Operator

to now to end like the session. We've back And comments. for Glenn I'd of closing reached our over floor Kelman question-and-answer the turn

Glenn Kelman

many a We selling February all going how We're to for get you baby. March. appreciate show houses. out, and coming now of Have Thanks to call. up going to and the we're great back

Operator

today's concludes teleconference. This

You may this you participation. at time. disconnect your for lines Thank your

Redfin (RDFN) 27 Feb 252024 Q4 Earnings call transcript