レッドフィンの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) August 3, 2023


Redfin Corporation

(Exact name of registrant as specified in its charter)

Delaware

001-38160

74-3064240

(State or other jurisdiction of incorporation or organization)

(Commission File Number)

(I.R.S. Employer Identification No.)

1099 Stewart Street

Suite 600

Seattle

98101

(Address of principal executive offices)

(Zip Code)


(206)			576-8333
Registrant's telephone number, including area code



(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐						Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐						Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐						Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐						Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.001 par value per share	RDFN	The Nasdaq Global Select Market


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company			☐


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐

Item 2.02 Results of Operations and Financial Condition.

On August 3, 2023, we reported our financial results for the quarter ended June 30, 2023. A copy of our earnings release is furnished as exhibit 99.1 to this report.

Item 9.01 Financial Statements and Exhibits.


			Exhibit Number						Description
			99.1						Press release dated August 3, 2023
			104						Cover page interactive data file, submitted using inline XBRL

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Redfin Corporation

(Registrant)

Date: August 3, 2023

/s/ Chris Nielsen

Chris Nielsen
Chief Financial Officer

EX-99.1 2 q22023earningsreleaseex.htm EX-99.1 Document

Redfin Reports Second Quarter 2023 Financial Results

SEATTLE - August 3, 2023 - Redfin Corporation (NASDAQ: RDFN) today announced results for its second quarter ended June 30, 2023.

Second Quarter 2023

Second quarter revenue was $275.6 million, a decrease of 21% compared to the second quarter of 2022. Gross profit was $100.2 million, a decrease of 10% year-over-year. Real estate services gross profit was $56.2 million, a decrease of 24% year-over-year, and real estate services gross margin was 31%, compared to 29% in the second quarter of 2022.

Net loss was $27.4 million, compared to a net loss of $78.1 million in the second quarter of 2022. Net loss attributable to common stock was $27.7 million. Net loss per share attributable to common stock, diluted, was $0.25, compared to net loss per share, diluted, of $0.73 in the second quarter of 2022.

“In a declining market, Redfin improved our second-quarter net income by $50 million,” said Redfin CEO Glenn Kelman. “We expect to break-even on an adjusted-EBITDA basis over the next 12 months rather than in 2023, which is a setback, but still we project that our adjusted EBITDA this year will improve by more than $140 million. We lost market share due to one-time setbacks from agent layoffs and the closure of RedfinNow, but we expect to return to quarter-over-quarter gains in the second half, as Redfin.com has been competing better for traffic. The year-over-year change in visitors to Redfin.com was 17 points better in the second quarter than it was for the two largest portals to for-sale listings, an acceleration from our first-quarter advantage of 12 points. Gross margins in our core real-estate-services business improved by nearly two percentage points. We believe Redfin is set up for profitable growth.”

Second Quarter Highlights

•Second quarter market share was 0.75% of U.S. existing home sales by units, compared to 0.83% in the second quarter of 2022.

•Redfin’s mobile apps and website reached more than 52 million average monthly users, compared to 53 million in the second quarter of 2022.

•Maintained momentum in mortgage cross-selling with 19% attach rates for the second quarter, up from 8% in the second quarter of 2022.

•Brought Title Forward closing services to Florida and made significant progress in cross-selling, with 57% attach rates in the second quarter, up from 29% in the second quarter of 2022.

•Experienced an uptick in high-end demand with over 1,300 $1M+ listings since launching the new Redfin Premier brand in the first quarter. In large coastal markets like San Francisco and Los Angeles, Redfin's year-over-year growth in $1M+ pending transactions began outpacing the broader market in June.

•Began leveraging AI to improve both employee efficiency and the user experience on Redfin.com, including using large language models to assist with internal engineering tasks and to create content at scale for users.

•Increased the mix of sales to loyalty customers from 35% in the second quarter of 2022 to 37% in the second quarter of 2023, driven by better agent follow-up and pipeline mining efforts.

•Delivered software to improve customer and agent experience while driving customer contacts and boosting traffic to Redfin:

◦Launched a new design system for all property pages on Redfin.com, improving the visual appearance and making it easier for Redfin teams to create beautiful, scalable features in the future. These improvements also drove significant growth in the number of buyers and sellers contacting Redfin for service.

◦Updated SMS surveys for customers who tour with Redfin Partner Agents, making it easier for them to submit feedback about their experience and improving Redfin’s understanding of tour completion rate.

◦Improved prioritization in Redfin’s support queue, helping high-intent customers get personalized help faster and generating a 1% increase in listing customers.

◦Updated rental contact request process that makes it easier for potential renters to browse additional properties and contact multiple properties at once.

Business Outlook

The following forward-looking statements reflect Redfin's expectations as of August 3, 2023, and are subject to substantial uncertainty.

For the third quarter of 2023 we expect:

•Total revenue between $265 million and $279 million, representing a year-over-year decline between (13)% and (9)% compared to the third quarter of 2022. Included within total revenue are real estate services revenue between $172 million and $182 million, rentals revenue between $46 million and $47 million, mortgage revenue between $35 million and $38 million and other revenue of approximately $12 million.

•Total net loss is expected to be between $30 million and $21 million, compared to net loss of $90 million in the third quarter of 2022. This guidance includes approximately $25 million in total marketing expenses, $18 million of stock-based compensation and $17 million of depreciation and amortization. Adjusted EBITDA is expected to be between $4 million and $14 million. Furthermore, we expect to pay a quarterly dividend of 30,640 shares of common stock to our preferred stockholder.

Conference Call

Redfin will webcast a conference call to discuss the results at 1:30 p.m. Pacific Time today. The webcast will be open to the public at http://investors.redfin.com. The webcast will remain available on the investor relations website for at least three months following the conference call.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, including our future operating results, as described under Business Outlook. We believe our expectations related to these forward-looking statements are reasonable, but actual results may turn out to be materially different. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our annual report for the year ended December 31, 2022, as supplemented by our quarterly report for the quarter ended June 30, 2023, both of which are available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.

Non-GAAP Financial Measure

To supplement our consolidated financial statements that are prepared and presented in accordance with GAAP, we also compute and present adjusted EBITDA, which is a non-GAAP financial measure. We believe adjusted EBITDA is useful for investors because it enhances period-to-period comparability of our financial statements on a consistent basis and provides investors with useful insight into the underlying trends of the business. The presentation of this financial measure is not intended to be considered in isolation or as a substitute of, or superior to, our financial information prepared and presented in accordance with GAAP. Our calculation of adjusted EBITDA may be different from adjusted EBITDA or similar non-GAAP financial measures used by other companies, limiting its usefulness for comparison purposes. Our adjusted EBITDA for the three months ended June 30, 2023 and 2022 is presented below, along with a reconciliation of adjusted EBITDA to net loss.

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with same day tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we've saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 5,000 people.

Redfin-F

Contacts

Investor Relations

Meg Nunnally, 206-576-8610

ir@redfin.com

Public Relations

Mariam Sughayer, 206-876-1322

press@redfin.com

Redfin Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share and per share amounts, unaudited)


	June 30, 2023		December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	118,776	$	232,200
Restricted cash	2,377		2,406
Short-term investments	100,643		122,259
Accounts receivable, net of allowances for credit losses of $2,206 and $2,223	67,753		46,375

Loans held for sale	233,550		199,604
Prepaid expenses	26,042		34,006
Other current assets	9,979		7,449
Current assets of discontinued operations	1,378		132,159
Total current assets	560,498		776,458
Property and equipment, net	49,241		54,939
Right-of-use assets, net	37,270		40,889
Mortgage servicing rights, at fair value	35,503		36,261
Long-term investments	5,473		29,480
Goodwill	461,349		461,349
Intangible assets, net	142,778		162,272
Other assets, noncurrent	11,493		11,247
Noncurrent assets of discontinued operations	—		1,309
Total assets	$	1,303,605	$	1,574,204
Liabilities, mezzanine equity, and stockholders' equity
Current liabilities
Accounts payable	$	14,661	$	11,065
Accrued and other liabilities	102,568		106,763
Warehouse credit facilities	227,801		190,509

Convertible senior notes, net	23,506		23,431
Lease liabilities	16,234		18,560
Current liabilities of discontinued operations	44		4,311
Total current liabilities	384,814		354,639
Lease liabilities, noncurrent	34,383		36,906
Convertible senior notes, net, noncurrent	834,716		1,078,157

Deferred tax liabilities	255		243
Noncurrent liabilities of discontinued operations	—		392
Total liabilities	1,254,168		1,470,337
Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	39,936		39,914
Stockholders’ equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 113,934,673 and 109,696,178 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively	114		110
Additional paid-in capital	791,302		757,951
Accumulated other comprehensive loss	(452)		(801)
Accumulated deficit	(781,463)		(693,307)
Total stockholders’ equity	9,501		63,953
Total liabilities, mezzanine equity, and stockholders’ equity	$	1,303,605	$	1,574,204

Redfin Corporation and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands, except share and per share amounts, unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenue	275,556		349,049		489,639		571,865
Cost of revenue(1)	175,366		237,813		331,311		408,980
Gross profit	100,190		111,236		158,328		162,885
Operating expenses
Technology and development(1)	47,141		46,822		94,804		92,343
Marketing(1)	33,033		55,922		73,436		98,111
General and administrative(1)	61,765		68,523		131,204		124,664
Restructuring and reorganization	6,106		12,406		7,159		18,115
Total operating expenses	148,045		183,673		306,603		333,233
Loss from operations	(47,855)		(72,437)		(148,275)		(170,348)
Interest income	2,704		554		6,110		774
Interest expense	(1,766)		(2,217)		(3,688)		(4,429)
Income tax expense	(233)		(159)		(643)		(293)
Gain on extinguishment of convertible senior notes	20,083		—		62,353		—
Other expense, net	(145)		(264)		(379)		(2,175)
Net loss from continuing operations	$	(27,212)	$	(74,523)	$	(84,522)	$	(176,471)
Net (loss) income from discontinued operations	(146)		(3,623)		(3,634)		7,519
Net loss	$	(27,358)	$	(78,146)	$	(88,156)	$	(168,952)

Net loss from continuing operations	(27,212)		(74,523)		(84,522)		(176,471)
Dividends on convertible preferred stock	(297)		(350)		(523)		(1,144)

Net loss from continuing operations attributable to common stock—basic and diluted	$	(27,509)	$	(74,873)	$	(85,045)	$	(177,615)
Net loss from continuing operations per share attributable to common stock—basic and diluted	$	(0.25)	$	(0.70)	$	(0.77)	$	(1.66)
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted	111,678,417		107,396,575		110,895,358		107,032,381
Net loss attributable to common stock—basic and diluted	$	(27,655)	$	(78,496)	$	(88,679)	$	(170,096)
Net loss attributable to common stock per share—basic and diluted	$	(0.25)	$	(0.73)	$	(0.80)	$	(1.59)

Net loss	$	(27,358)	$	(78,146)	$	(88,156)	$	(168,952)
Other comprehensive (loss) income
Foreign currency translation adjustments	—		34		(58)		38
Unrealized (loss) gain on available-for-sale debt securities	(17)		217		407		778
Comprehensive loss	$	(27,375)	$	(77,895)	(87,807)		(168,136)

(1) Includes stock-based compensation as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of revenue	$	3,001	$	3,615	$	7,136	$	6,605
Technology and development	8,241		6,768		16,368		13,877
Marketing	1,254		894		2,499		1,937
General and administrative	5,025		4,009		10,345		8,118
Total	$	17,521	$	15,286	$	36,348	$	30,537

Redfin Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands, unaudited)


	Six Months Ended June 30,
	2023		2022
Operating Activities
Net loss	$	(88,156)	$	(168,952)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	34,146		31,140
Stock-based compensation	36,582		33,601
Amortization of debt discount and issuance costs	2,029		2,899
Non-cash lease expense	9,578		7,096
Impairment costs	113		—

Net (gain) loss on IRLCs, forward sales commitments, and loans held for sale	(4,565)		2,721
Change in fair value of mortgage servicing rights, net	599		(878)
Gain on extinguishment of convertible senior notes	(62,353)		—
Other	(1,794)		3,170
Change in assets and liabilities:
Accounts receivable, net	(14,069)		(6,791)
Inventory	114,232		(19,297)
Prepaid expenses and other assets	8,868		(2,852)
Accounts payable	2,812		5,964
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent	(4,522)		5,529
Lease liabilities	(10,790)		(8,042)
Origination of mortgage servicing rights	(579)		(964)
Proceeds from sale of mortgage servicing rights	738		774
Origination of loans held for sale	(1,922,690)		(1,641,377)
Proceeds from sale of loans originated as held for sale	1,888,706		1,587,759
Net cash used in operating activities	(11,115)		(168,500)
Investing activities
Purchases of property and equipment	(6,213)		(12,131)
Purchases of investments	(76,866)		(82,184)
Sales of investments	65,099		12,946
Maturities of investments	59,383		19,425
Cash paid for acquisition, net of cash, cash equivalents, and restricted cash acquired	—		(97,341)
Net cash provided by (used in) investing activities	41,403		(159,285)
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans	5,665		9,258
Tax payments related to net share settlements on restricted stock units	(11,096)		(3,743)
Borrowings from warehouse credit facilities	1,920,487		1,628,684
Repayments to warehouse credit facilities	(1,883,196)		(1,572,033)
Borrowings from secured revolving credit facility	—		326,025
Repayments to secured revolving credit facility	—		(369,266)




Cash paid for secured revolving credit facility issuance costs	—		(764)
Principal payments under finance lease obligations	(53)		(414)
Repurchases of convertible senior notes	(183,019)		—

Net cash (used in) provided by financing activities	(151,212)		17,747
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(58)		(42)
Net change in cash, cash equivalents, and restricted cash	(120,982)		(310,080)
Cash, cash equivalents, and restricted cash:
Beginning of period	242,246		718,281
End of period	$	121,264	$	408,201

Redfin Corporation and Subsidiaries

Supplemental Financial Information and Business Metrics

(unaudited)


	Three Months Ended
	Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022			Jun. 30, 2022			Mar. 31, 2022			Dec. 31, 2021			Sep. 30, 2021
Monthly average visitors (in thousands)	52,308			50,440			43,847			50,785			52,698			51,287			44,665			49,147
Real estate services transactions
Brokerage	13,716			10,301			12,743			18,245			20,565			15,001			19,428			21,929
Partner	3,952			3,187			2,742			3,507			3,983			3,417			4,603			4,755
Total	17,668			13,488			15,485			21,752			24,548			18,418			24,031			26,684
Real estate services revenue per transaction
Brokerage	$	12,376		$	11,556		$	10,914		$	11,103		$	11,692		$	11,191		$	10,900		$	11,107
Partner	2,756			2,592			2,611			2,556			2,851			2,814			2,819			2,990
Aggregate	10,224			9,438			9,444			9,725			10,258			9,637			9,352			9,661
U.S. market share by units(1)	0.75		%	0.79		%	0.76		%	0.80		%	0.83		%	0.79		%	0.78		%	0.78		%
Revenue from top-10 Redfin markets as a percentage of real estate services revenue	55		%	53		%	57		%	58		%	59		%	57		%	61		%	62		%
Average number of lead agents	1,792			1,876			2,022			2,293			2,640			2,750			2,485			2,370
Mortgage originations by dollars (in millions)	$	1,282		$	991		$	1,036		$	1,557		$	1,565		$	159		$	242		$	258
Mortgage originations by units (in ones)	3,131			2,444			2,631			3,720			3,860			414			591			671

(1) Prior to the second quarter of 2022, we reported our U.S. market share based on the aggregate home value of our real estate services transactions, relative to the aggregate value of all U.S. home sales, which we computed based on the mean sale price of U.S. homes provided by the National Association of REALTORS® (“NAR”). Beginning in the second quarter of 2022, NAR (1) revised its methodology of computing the mean sale price, (2) restated its previously reported mean sale price beginning from January 2020 (and indicated that previously reported mean sale price prior to January 2020 is not comparable), and (3) discontinued publication of the mean sale price as part of its primary data set. Due to these changes, as of the second quarter of 2022, we report our U.S. market share based on the number of homes sold, rather than the dollar value of homes sold. Our market share by number of homes sold has historically been lower than our market share by dollar value of homes sold. We also stopped reporting the aggregate home value of our real estate services transactions.

Redfin Corporation and Subsidiaries

Supplemental Financial Information

(unaudited, in thousands)


	Three Months Ended June 30, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue(1)	$	180,641	$	45,356	$	38,426	$	11,133	$	—	$	275,556
Cost of revenue	124,447		10,427		34,266		6,226		—		175,366
Gross profit	56,194		34,929		4,160		4,907		—		100,190
Operating expenses
Technology and development	28,044		16,304		734		1,118		941		47,141
Marketing	16,004		15,938		1,054		16		21		33,033
General and administrative	20,961		25,305		6,724		1,044		7,731		61,765
Restructuring and reorganization	—		—		—		—		6,106		6,106
Total operating expenses	65,009		57,547		8,512		2,178		14,799		148,045
(Loss) income from continuing operations	(8,815)		(22,618)		(4,352)		2,729		(14,799)		(47,855)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	—		28		(91)		153		20,553		20,643
Net (loss) income from continuing operations	$	(8,815)	$	(22,590)	$	(4,443)	$	2,882	$	5,754	$	(27,212)

(1) Included in revenue is $0.1 million from providing services to our discontinued properties segment.


	Three Months Ended June 30, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Net (loss) income from continuing operations	$	(8,815)	$	(22,590)	$	(4,443)	$	2,882	$	5,754	$	(27,212)
Interest income(1)	—		(77)		(3,686)		(153)		(2,467)		(6,383)
Interest expense(2)	—		—		3,990		—		1,766		5,756
Income tax expense	—		43		83		—		107		233
Depreciation and amortization	5,264		10,235		994		307		329		17,129
Stock-based compensation(3)	12,297		3,709		823		561		131		17,521
Acquisition-related costs(4)	—		—		—		—		8		8
Restructuring and reorganization(5)	—		—		—		—		6,106		6,106

Gain on extinguishment of convertible senior notes	—		—		—		—		(20,083)		(20,083)
Adjusted EBITDA	$	8,746	$	(8,680)	$	(2,239)	$	3,597	$	(8,349)	$	(6,925)

(1) Interest income includes $3.7 million of interest income related to originated mortgage loans for the three months ended June 30, 2023.

(2) Interest expense includes $4.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2023.

(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 12 to our consolidated financial statements for more information.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.

(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022, October 2022, and March 2023 workforce reductions.


	Three Months Ended June 30, 2022
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue(1)	$	251,809	$	38,248	$	53,098	$	5,894	$	—	$	349,049
Cost of revenue	177,698		7,901		46,316		5,898		—		237,813
Gross profit	74,111		30,347		6,782		(4)		—		111,236
Operating expenses
Technology and development	27,696		14,871		1,904		1,189		1,162		46,822
Marketing	40,765		13,086		1,843		71		157		55,922
General and administrative	24,341		21,824		9,450		850		12,058		68,523
Restructuring and reorganization	—		—		—		—		12,406		12,406
Total operating expenses	92,802		49,781		13,197		2,110		25,783		183,673
Loss from continuing operations	(18,691)		(19,434)		(6,415)		(2,114)		(25,783)		(72,437)
Interest income, interest expense, income tax expense, and other expense, net	(123)		232		(35)		11		(2,171)		(2,086)
Net loss from continuing operations	$	(18,814)	$	(19,202)	$	(6,450)	$	(2,103)	$	(27,954)	$	(74,523)

(1) Included in revenue is $4.7 million from providing services to our discontinued properties segment.


	Three Months Ended June 30, 2022
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Net loss from continuing operations	$	(18,814)	$	(19,202)	$	(6,450)	$	(2,103)	$	(27,954)	$	(74,523)
Interest income(1)	—		(1)		(2,929)		(12)		(540)		(3,482)
Interest expense(2)	—		—		1,958		—		2,214		4,172
Income tax expense	—		(230)		33		—		356		159
Depreciation and amortization	4,551		9,511		1,070		318		272		15,722
Stock-based compensation(3)	9,670		2,739		780		441		1,656		15,286
Acquisition-related costs(4)	—		—		—		—		1,507		1,507
Restructuring and reorganization(5)	—		—		—		—		12,406		12,406


Adjusted EBITDA	$	(4,593)	$	(7,183)	$	(5,538)	$	(1,356)	$	(10,083)	$	(28,753)

(1) Interest income includes $2.9 million of interest income related to originated mortgage loans for the three months ended June 30, 2022.

(2) Interest expense includes $2.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2022.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.


	Six Months Ended June 30, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue(1)	$	307,937	$	88,226	$	74,915	$	18,561	$	—	$	489,639
Cost of revenue	235,941		20,192		63,479		11,699		—		331,311
Gross profit	71,996		68,034		11,436		6,862		—		158,328
Operating expenses
Technology and development	56,939		32,268		1,377		2,342		1,878		94,804
Marketing	41,064		30,264		2,034		26		48		73,436
General and administrative	40,579		51,607		13,653		2,097		23,268		131,204
Restructuring and reorganization	—		—		—		—		7,159		7,159
Total operating expenses	138,582		114,139		17,064		4,465		32,353		306,603
(Loss) income from continuing operations	(66,586)		(46,105)		(5,628)		2,397		(32,353)		(148,275)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	—		73		(151)		268		63,563		63,753
Net (loss) income from continuing operations	$	(66,586)	$	(46,032)	$	(5,779)	$	2,665	$	31,210	$	(84,522)

(1) Included in revenue is $1.2 million from providing services to our discontinued properties segment.


	Six Months Ended June 30, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Net (loss) income from continuing operations	$	(66,586)	$	(46,032)	$	(5,779)	$	2,665	$	31,210	$	(84,522)
Interest income(1)	—		(157)		(6,176)		(268)		(5,668)		(12,269)
Interest expense(2)	—		—		6,605		—		3,687		10,292
Income tax expense	—		86		151		—		406		643
Depreciation and amortization	9,696		20,387		1,982		523		1,432		34,020
Stock-based compensation(3)	21,890		7,325		2,081		1,122		3,930		36,348
Acquisition-related costs(4)	—		—		—		—		8		8
Restructuring and reorganization(5)	—		—		—		—		7,159		7,159
Impairment(6)	—		—		—		—		113		113
Gain on extinguishment of convertible senior notes	—		—		—		—		(62,353)		(62,353)
Adjusted EBITDA	$	(35,000)	$	(18,391)	$	(1,136)	$	4,042	$	(20,076)	$	(70,561)

(1) Interest income includes $6.2 million of interest income related to originated mortgage loans for the six months ended June 30, 2023.

(2) Interest expense includes $6.6 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2023.

(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.

(6) Impairment consists of an impairment loss due to subleasing one of our operating leases.


	Six Months Ended June 30, 2022
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue(1)	$	429,295	$	76,292	$	56,015	$	10,263	$	—	$	571,865
Cost of revenue	331,482		15,094		51,834		10,570		—		408,980
Gross profit	97,813		61,198		4,181		(307)		—		162,885
Operating expenses
Technology and development	54,435		29,154		4,251		2,225		2,278		92,343
Marketing	71,608		24,128		1,871		125		379		98,111
General and administrative	47,333		46,015		10,974		1,562		18,780		124,664
Restructuring and reorganization	—		—		—		—		18,115		18,115
Total operating expenses	173,376		99,297		17,096		3,912		39,552		333,233
Loss from operations	(75,563)		(38,099)		(12,915)		(4,219)		(39,552)		(170,348)
Interest income, interest expense, income tax expense, and other expense, net	(123)		701		(35)		12		(6,678)		(6,123)
Net loss from continuing operations	$	(75,686)	$	(37,398)	$	(12,950)	$	(4,207)	$	(46,230)	$	(176,471)

(1) Included in revenue is $10.0 million from providing services to our discontinued properties segment.


	Six Months Ended June 30, 2022
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Net loss from continuing operations	$	(75,686)	$	(37,398)	$	(12,950)	$	(4,207)	$	(46,230)	$	(176,471)
Interest income(1)	—		(1)		(3,247)		(13)		(759)		(4,020)
Interest expense(2)	—		—		2,235		—		4,427		6,662
Income tax expense	—		(434)		33		—		694		293
Depreciation and amortization	8,569		18,867		1,372		573		618		29,999
Stock-based compensation(3)	19,810		4,979		1,381		810		3,557		30,537
Acquisition-related costs(4)	—		—		—		—		2,424		2,424
Restructuring and reorganization(5)	—		—		—		—		18,115		18,115


Adjusted EBITDA	$	(47,307)	$	(13,987)	$	(11,176)	$	(2,837)	$	(17,154)	$	(92,461)

(1) Interest income includes $3.2 million of interest income related to originated mortgage loans for the six months ended June 30, 2023.

(2) Interest expense includes $2.2 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2023.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.

Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance

(unaudited, in millions)


	Q3 2023
	Low	High
Net loss	(30)	(21)


Depreciation and amortization	17	17
Stock-based compensation	18	18




Adjusted EBITDA	4	14

Note: Figures may not sum due to rounding.