SEATTLE, Feb. 14, 2019 (GLOBE NEWSWIRE) -- Redfin Corporation (NASDAQ: RDFN) today announced financial results for
the fourth quarter and full year ended December 31, 2018. All financial measures, unless otherwise noted, are presented on a GAAP
basis and include stock-based compensation as well as depreciation and amortization expenses.
Fourth Quarter 2018
Revenue increased 30% year-over-year to $124.1 million during the fourth quarter. Gross profit was $26.2 million, a decrease of
10% from $29.2 million in the fourth quarter of 2017. Gross margin was 21%, compared to 30% in the fourth quarter of 2017. Real
estate services(1) gross profit was $27.8 million, a decrease of 6% from $29.7 million in the fourth quarter of 2017.
Real estate services gross margin was 28%, compared to 33% in the fourth quarter of 2017. Operating expenses were $38.7 million, an
increase of 23% from $31.5 million in the fourth quarter of 2017. Operating expenses were 31% of revenue, down from 33% in the
fourth quarter of 2017.
Net loss was $12.2 million, compared to net loss of $1.8 million in the fourth quarter of 2017. Stock-based compensation was
$6.0 million, up from $3.1 million in the fourth quarter of 2017. Depreciation and amortization was $2.3 million, up from $1.9
million in the fourth quarter of 2017. Interest income was $2.3 million and interest expense was $2.1 million, up from $0.5 million
and zero, respectively, in the fourth quarter of 2017.
GAAP net loss per share, basic and diluted, was $0.14, compared to GAAP net loss per share, basic and diluted, of $0.02 in the
fourth quarter of 2017.
Full Year 2018
Revenue increased 32% year-over-year to $486.9 million in 2018. Gross profit was $119.4 million, an increase of 7% from $111.8
million in 2017. Gross margin was 25%, compared to 30% in 2017. Operating expenses were $163.4 million, an increase of 28% from
$127.8 million in 2017. Operating expenses were 34% of revenue, down from 35% in 2017.
Net loss was $42.0 million, compared to net loss of $15.0 million in 2017. Stock-based compensation was $20.4 million, up from
$11.1 million in 2017. Depreciation and amortization was $8.5 million, up from $7.2 million in 2017.
GAAP net loss per share, basic and diluted, reflects accretion expense for changes in the fair value of our redeemable
convertible preferred stock, which was outstanding prior to its conversion to common stock following our initial public offering
("IPO"). GAAP net loss per share, basic and diluted, was $0.49, compared to GAAP net loss per share, basic and diluted, of $4.47 in
2017. Adjusted net loss per share, basic and diluted,(2) which excludes accretion expense for changes in the fair value
of our redeemable convertible preferred stock and assumes its conversion to common stock in connection with our IPO as of the first
day of the reported period, was $0.49 and $0.20 in 2018 and 2017, respectively. As a result of the conversion of our redeemable
convertible preferred stock in connection with our IPO, there was no accretion expense in 2018.
“Redfin’s fourth-quarter results again exceeded our expectations, with continued year-over-year gains in market share, and a new
report showing that our customer satisfaction is 49% higher than our competitors’,” said Redfin CEO Glenn Kelman. “But what we’re
most excited about are the first signs that our broader vision is coming to life in 2019: more Redfin homebuyers are choosing a
Redfin mortgage because of an investment in local service, more Redfin home sellers are signing up for our concierge service to
spruce up the home before its market debut, and then more of those home sellers are also meeting our agents to buy their next
place. RedfinNow, our business of buying a home on our own account and then selling it, is increasingly drawing on our brokerage’s
field organization and systems, giving us more confidence that we can grow this business quickly without having to build everything
from scratch.”
Highlights
- Reached market share of 0.81% of U.S. existing home sales by value in the fourth quarter of 2018, an increase of 0.10
percentage points from the fourth quarter of 2017.(3)
- Redfin saved homebuyers and sellers over $31 million in the fourth quarter and over $154 million in 2018, compared to a 2.5%
commission typically charged by traditional agents.
- Earned a Net Promoter Score, a measure of customer satisfaction, that is 49% higher than competing brokerages’, as measured
in a Redfin-commissioned November 2018 survey of people who bought or sold a home in the previous 12 months. 2018 marked the
fourth consecutive year that our customer satisfaction was higher than that of traditional brokers.
- Redfin continued to expand its nationwide footprint in 2018, launching brokerage services in four new markets: Asheville, NC,
Connecticut, Palm Springs, CA and Spokane, WA. Redfin is now reaching customers across 89 markets total and services 77% of the
U.S. population. In addition, Redfin introduced the 1% listing fee to Nashville and Salt Lake City in the fourth quarter.
- Expanded Redfin Concierge Service to Seattle, where Redfin coordinates, supervises and pays for services such as deep
cleaning, painting, staging and landscaping, all for a two percent listing fee. Redfin agents create a custom plan for each home
to make sure it has a great debut on the market. The service is also available for homes $500K or higher in Los Angeles,
Washington, D.C. and San Francisco, with additional markets slated to launch in 2019.
- Redfin is now providing customers with an entirely digital home buying experience in markets that offer Redfin Mortgage.
Through a new partnership with Notarize, Redfin Mortgage clients have the ability to close on a home quickly, easily and
completely online. This is another example of Redfin using technology to improve the entire home-buying process from home search,
mortgage application and approval, to purchasing and closing on a home.
- Expanded Redfin Mortgage to Colorado. As of the end of 2018, Redfin Mortgage had launched in ten states and Washington, D.C.,
with plans to launch in additional states in the coming months. Customers in those states can now get conforming mortgages and
jumbo loans, with a 30-day closing guarantee. By integrating a lending operation with Redfin's existing brokerage and title
businesses, Redfin makes closing on a home more efficient.
- Redfin increased our proportion of women technologists from 32 percent in 2017 to 33 percent in 2018. We continue to work
towards our goal of 50 percent overall. We are also prioritizing racial and ethnic diversity, as we believe employing a diverse
workforce will help us deliver better service to all people.
(1) Prior to reporting our financial results for the second quarter ended June 30, 2018, we had one reportable
segment ("Real estate") that reflected revenue derived from commissions and fees charged on real estate services transactions
closed by us or partner agents representing customers in buying and selling homes. Beginning with our financial results for the
second quarter ended June 30, 2018, we recognized a new reportable segment ("Properties") that reflects revenue from when we sell
homes that we previously bought directly from homeowners through RedfinNow. Concurrent with our recognition of the new "Properties"
segment, we changed the name of our "Real estate" segment to "Real estate services." Prior to our financial results for the second
quarter ended June 30, 2018, we included the results from our "Properties" segment as part of our "Other" segment.
(2) Adjusted net loss per share, basic and diluted, are non-GAAP financial measures as defined by the Securities and
Exchange Commission ("SEC"). A reconciliation of GAAP to non-GAAP financial measures is provided below in the tables included in
this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
(3) We calculate the aggregate value of U.S. home sales by multiplying the total number of U.S. existing home sales
by the mean sale price of these homes, each as reported by the National Association of REALTORS®. We calculate our
market share by aggregating the home value of real estate services transactions conducted by our lead agents or our partner agents.
Then, in order to account for both the sell- and buy-side components of each transaction, we divide that value by two-times the
estimated aggregate value of U.S. home sales.
Business Outlook
The following forward-looking statements reflect Redfin's expectations as of February 14, 2019, and are subject to substantial
uncertainty.
For the first quarter of 2019 we expect:
- Total revenue between $101.5 million and $105.1 million, representing year-over-year growth between 27% and 32% compared to
the first quarter of 2018. Properties segment revenue between $15.0 million and $16.5 million is included in the guidance
provided.
- Net loss between $69.2 million and $67.8 million, compared to net loss of $36.4 million in the first quarter of 2018. This
guidance includes approximately $6.6 million of expected stock-based compensation and $2.1 million of expected depreciation and
amortization.
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 statements
regarding expansion of Redfin Concierge Service and Redfin Mortgage and our employee diversity goals, each as described under
Highlights, and 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 on Form 10-K for the year ended December
31, 2018, which is 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 Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we have used
non-GAAP financial measures, specifically adjusted net loss per share, basic and diluted, in this press release. The presentation
of these financial measures is not intended to be considered in isolation or as a substitute of, or superior to, financial
information prepared and presented in accordance with GAAP.
We believe these non-GAAP financial measures enable comparison of financial results between periods where net loss per share,
basic and diluted, may vary independent of business performance. There are limitations associated with the use of non-GAAP
financial measures as an analytical tool, in particular the adjustments to our GAAP financial measures reflect the exclusion of
accretion expense, which is related to our redeemable convertible preferred stock that converted into common stock upon the
completion of our IPO in August 2017. Included in weighted-average shares outstanding, basic and diluted, are shares of redeemable
convertible preferred stock as if all such shares were converted to common stock on the first date of each period presented. These
measures may be different from non-GAAP financial measures used by other companies, limiting its usefulness for comparison
purposes. A reconciliation of adjusted net loss per share, basic and diluted, to net loss per share, basic and diluted, has been
provided in the financial statement tables included in this press release, and investors are encouraged to review the
reconciliation.
About Redfin
Redfin (www.redfin.com) is a technology-powered residential real estate company. Founded by software
engineers, we run the country's #1 most-visited brokerage website and offer a host of online tools to consumers, including the
Redfin Estimate. We represent people buying and selling homes in over 85 markets throughout the United States and Canada.
Our mission is to redefine real estate in the consumer’s favor. In a commission-driven industry, we put the customer first. We do
this by pairing our own agents with our own technology to create a service that is faster, better, and costs less. Since our launch
in 2006 through 2018, we have helped customers buy or sell more than 170,000 homes worth more than $85 billion.
Redfin-F
Contacts
Investor Relations
Elena Perron, 206-576-8610
ir@redfin.com
Public Relations
Mariam Sughayer, 206-876-1322
press@redfin.com
| |
Redfin Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts) |
| |
| |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| |
Unaudited |
|
|
|
|
| Revenue |
$ |
124,129 |
|
|
$ |
95,754 |
|
|
$ |
486,920 |
|
|
$ |
370,036 |
|
| Cost of revenue (1) |
97,920 |
|
|
66,583 |
|
|
367,496 |
|
|
258,216 |
|
| Gross profit |
26,209 |
|
|
29,171 |
|
|
119,424 |
|
|
111,820 |
|
| Operating expenses |
|
|
|
|
|
|
|
| Technology and development (1) |
13,692 |
|
|
11,287 |
|
|
53,797 |
|
|
42,532 |
|
| Marketing (1) |
8,054 |
|
|
6,072 |
|
|
44,061 |
|
|
32,251 |
|
| General and administrative (1) |
16,969 |
|
|
14,181 |
|
|
65,500 |
|
|
53,009 |
|
| Total operating expenses |
38,715 |
|
|
31,540 |
|
|
163,358 |
|
|
127,792 |
|
| Loss from operations |
(12,506 |
) |
|
(2,369 |
) |
|
(43,934 |
) |
|
(15,972 |
) |
| Interest income |
2,334 |
|
|
495 |
|
|
5,416 |
|
|
882 |
|
| Interest expense |
(2,071 |
) |
|
— |
|
|
(3,681 |
) |
|
— |
|
| Other income, net |
21 |
|
|
76 |
|
|
221 |
|
|
88 |
|
| Net loss |
$ |
(12,222 |
) |
|
$ |
(1,798 |
) |
|
$ |
(41,978 |
) |
|
$ |
(15,002 |
) |
| Accretion of redeemable convertible preferred stock |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(175,915 |
) |
| Net loss attributable to common stock - basic and diluted |
$ |
(12,222 |
) |
|
$ |
(1,798 |
) |
|
$ |
(41,978 |
) |
|
$ |
(190,917 |
) |
| Net loss per share attributable to common stock - basic and diluted |
$ |
(0.14 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.49 |
) |
|
$ |
(4.47 |
) |
| Weighted average shares - basic and diluted |
89,650,602 |
|
|
81,428,862 |
|
|
85,669,039 |
|
|
42,722,114 |
|
(1) Includes stock-based compensation as follows:
| |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| |
Unaudited |
|
|
|
|
| Cost of revenue |
$ |
1,506 |
|
|
$ |
774 |
|
|
$ |
5,567 |
|
|
$ |
2,902 |
|
| Technology and development |
2,241 |
|
|
1,024 |
|
|
7,576 |
|
|
3,325 |
|
| Marketing |
231 |
|
|
124 |
|
|
662 |
|
|
487 |
|
| General and administrative |
1,988 |
|
|
1,151 |
|
|
6,633 |
|
|
4,387 |
|
| Total |
$ |
5,966 |
|
|
$ |
3,073 |
|
|
$ |
20,438 |
|
|
$ |
11,101 |
|
| |
Redfin Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts) |
| |
| |
December 31, 2018 |
|
December 31, 2017 |
| Assets |
|
|
|
| Current assets |
|
|
|
| Cash and cash equivalents |
$ |
432,608 |
|
|
$ |
208,342 |
|
| Restricted cash |
6,446 |
|
|
4,316 |
|
| Prepaid expenses |
11,916 |
|
|
8,613 |
|
| Accrued revenue, net |
15,363 |
|
|
13,334 |
|
| Inventory |
22,694 |
|
|
3,382 |
|
| Loans held for sale |
4,913 |
|
|
1,891 |
|
| Other current assets |
2,307 |
|
|
328 |
|
| Total current assets |
496,247 |
|
|
240,206 |
|
| Property and equipment, net |
25,187 |
|
|
22,318 |
|
| Intangible assets, net |
2,806 |
|
|
3,294 |
|
| Goodwill |
9,186 |
|
|
9,186 |
|
| Other assets |
9,395 |
|
|
6,951 |
|
| Total assets |
542,821 |
|
|
281,955 |
|
| Liabilities and stockholders' equity |
|
|
|
| Current liabilities |
|
|
|
| Accounts payable |
$ |
2,516 |
|
|
$ |
1,901 |
|
| Accrued liabilities |
30,837 |
|
|
26,605 |
|
| Other payables |
6,544 |
|
|
4,068 |
|
| Warehouse credit facilities |
4,733 |
|
|
2,016 |
|
| Current portion of deferred rent |
1,588 |
|
|
1,267 |
|
| Total current liabilities |
46,218 |
|
|
35,857 |
|
| Deferred rent, net of current portion |
11,079 |
|
|
10,668 |
|
| Convertible senior notes, net |
113,586 |
|
|
— |
|
| Total liabilities |
170,883 |
|
|
46,525 |
|
| Stockholders’ equity/(deficit) |
|
|
|
| Common stock—par value $0.001 per share; 500,000,000 shares authorized; 90,151,341 and 81,468,891 shares issued
and outstanding, respectively |
90 |
|
|
81 |
|
| Preferred stock—par value $0.001 per share; 10,000,000 shares authorized and no shares issued and
outstanding |
— |
|
|
— |
|
| Additional paid-in capital |
542,829 |
|
|
364,352 |
|
| Accumulated deficit |
(170,981 |
) |
|
(129,003 |
) |
| Total stockholders’ equity |
371,938 |
|
|
235,430 |
|
| Total liabilities and stockholders’ equity |
$ |
542,821 |
|
|
$ |
281,955 |
|
| |
Redfin Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands) |
| |
| |
Year Ended December 31, |
| |
2018 |
|
2017 |
| Operating activities |
|
|
|
| Net loss |
$ |
(41,978 |
) |
|
$ |
(15,002 |
) |
| Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
| Depreciation and amortization |
8,465 |
|
|
7,176 |
|
| Stock-based compensation |
20,438 |
|
|
11,101 |
|
| Amortization of debt discount and issuance costs |
2,584 |
|
|
— |
|
| Change in assets and liabilities |
|
|
|
| Prepaid expenses |
(3,303 |
) |
|
(4,225 |
) |
| Accrued revenue |
(2,029 |
) |
|
(2,709 |
) |
| Inventory |
(19,312 |
) |
|
(3,382 |
) |
| Other current assets |
(1,978 |
) |
|
8,452 |
|
| Other assets |
(444 |
) |
|
223 |
|
| Accounts payable |
617 |
|
|
(252 |
) |
| Accrued liabilities |
4,191 |
|
|
5,115 |
|
| Other payables |
318 |
|
|
— |
|
| Deferred lease liability |
(1,249 |
) |
|
749 |
|
| Origination of loans held for sale |
(86,023 |
) |
|
(11,008 |
) |
| Proceeds from sale of loans originated as held for sale |
83,001 |
|
|
9,117 |
|
| Net cash provided by (used in) operating activities |
(36,702 |
) |
|
5,355 |
|
| Investing activities |
|
|
|
| Sales and maturities of short-term investments |
— |
|
|
2,741 |
|
| Purchases of short-term investments |
— |
|
|
(992 |
) |
| Purchases of property and equipment |
(8,303 |
) |
|
(12,113 |
) |
| Purchases of investments |
(2,000 |
) |
|
— |
|
| Net cash used in investing activities |
(10,303 |
) |
|
(10,364 |
) |
| Financing activities |
|
|
|
| Proceeds from issuance of convertible senior notes, net |
138,953 |
|
|
— |
|
| Proceeds from follow-on offering, net |
107,593 |
|
|
— |
|
| Proceeds from exercise of stock options |
23,407 |
|
|
3,003 |
|
| Tax payment related to net share settlements on restricted stock units |
(1,426 |
) |
|
— |
|
| Proceeds from initial public offering, net of underwriting discounts |
— |
|
|
148,088 |
|
| Payment of initial public offering costs |
— |
|
|
(3,558 |
) |
| Borrowings from warehouse credit facilities |
83,842 |
|
|
10,746 |
|
| Repayments of warehouse credit facilities |
(81,125 |
) |
|
(8,730 |
) |
| Other payables - deposits held in escrow |
2,158 |
|
|
273 |
|
| Net cash provided by financing activities |
273,402 |
|
|
149,822 |
|
| Net change in cash, cash equivalents, and restricted cash |
226,397 |
|
|
144,813 |
|
| Cash, cash equivalents, and restricted cash |
|
|
|
| Beginning of period |
212,658 |
|
|
67,845 |
|
| End of period |
$ |
439,055 |
|
|
$ |
212,658 |
|
| Supplemental disclosure of non-cash investing and financing activities |
|
|
|
| Conversion of redeemable convertible preferred stock to common stock |
$ |
— |
|
|
$ |
831,331 |
|
| Accretion of redeemable convertible preferred stock |
$ |
— |
|
|
$ |
(175,915 |
) |
| Stock-based compensation capitalized in property and equipment |
$ |
(522 |
) |
|
$ |
(268 |
) |
| Property and equipment additions in accounts payable and accrued expenses |
$ |
(82 |
) |
|
$ |
(31 |
) |
| Leasehold improvements paid directly by lessor |
$ |
(1,980 |
) |
|
$ |
(822 |
) |
| |
Redfin Corporation and Subsidiaries
Supplemental Financial Information and Business Metrics
(unaudited) |
| |
| |
Three Months Ended |
|
Twelve Months Ended |
| |
Dec. 31, 2018 |
|
Sep. 30, 2018 |
|
Jun. 30, 2018 |
|
Mar. 31, 2018 |
|
Dec. 31, 2017 |
|
Sep. 30, 2017 |
|
Jun. 30, 2017 |
|
Mar. 31, 2017 |
|
Dec. 31, 2016 |
|
Dec. 31, 2018 |
|
Dec. 31, 2017 |
|
Dec. 31, 2016 |
| Monthly average visitors (in thousands) |
25,212 |
|
|
29,236 |
|
|
28,777 |
|
|
25,820 |
|
|
21,377 |
|
|
24,518 |
|
|
24,400 |
|
|
20,162 |
|
|
16,058 |
|
|
27,261 |
|
|
22,623 |
|
|
16,215 |
|
| Real estate services transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Brokerage |
9,822 |
|
|
12,876 |
|
|
12,971 |
|
|
7,285 |
|
|
8,598 |
|
|
10,527 |
|
|
10,221 |
|
|
5,692 |
|
|
6,432 |
|
|
42,954 |
|
|
35,038 |
|
|
25,868 |
|
| Partner |
2,749 |
|
|
3,333 |
|
|
3,289 |
|
|
2,237 |
|
|
2,739 |
|
|
3,101 |
|
|
2,874 |
|
|
2,041 |
|
|
2,281 |
|
|
11,608 |
|
|
10,755 |
|
|
9,482 |
|
| Total |
12,571 |
|
|
16,209 |
|
|
16,260 |
|
|
9,522 |
|
|
11,337 |
|
|
13,628 |
|
|
13,095 |
|
|
7,733 |
|
|
8,713 |
|
|
54,562 |
|
|
45,793 |
|
|
35,350 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real estate services revenue per transaction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Brokerage |
$ |
9,569 |
|
|
$ |
9,227 |
|
|
$ |
9,510 |
|
|
$ |
9,628 |
|
|
$ |
9,659 |
|
|
$ |
9,289 |
|
|
$ |
9,301 |
|
|
$ |
9,570 |
|
|
$ |
9,428 |
|
|
$ |
9,459 |
|
|
$ |
9,429 |
|
|
$ |
9,436 |
|
| Partner |
2,232 |
|
|
2,237 |
|
|
2,281 |
|
|
2,137 |
|
|
2,056 |
|
|
1,960 |
|
|
1,945 |
|
|
1,911 |
|
|
1,991 |
|
|
2,229 |
|
|
1,971 |
|
|
1,719 |
|
| Aggregate |
$ |
7,964 |
|
|
$ |
7,790 |
|
|
$ |
8,048 |
|
|
$ |
7,869 |
|
|
$ |
7,822 |
|
|
$ |
7,621 |
|
|
$ |
7,687 |
|
|
$ |
7,548 |
|
|
$ |
7,481 |
|
|
$ |
7,921 |
|
|
$ |
7,677 |
|
|
$ |
7,366 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggregate home value of real estate services transactions (in millions) |
$ |
5,825 |
|
|
$ |
7,653 |
|
|
$ |
7,910 |
|
|
$ |
4,424 |
|
|
$ |
5,350 |
|
|
$ |
6,341 |
|
|
$ |
6,119 |
|
|
$ |
3,470 |
|
|
$ |
4,018 |
|
|
$ |
25,812 |
|
|
$ |
21,280 |
|
|
$ |
16,199 |
|
| U.S. market share by value |
0.81 |
% |
|
0.85 |
% |
|
0.83 |
% |
|
0.73 |
% |
|
0.71 |
% |
|
0.71 |
% |
|
0.64 |
% |
|
0.58 |
% |
|
0.56 |
% |
|
0.81 |
% |
|
0.67 |
% |
|
0.54 |
% |
| Revenue from top-10 Redfin markets as a percentage of real estate services revenue |
66 |
% |
|
66 |
% |
|
68 |
% |
|
66 |
% |
|
69 |
% |
|
69 |
% |
|
69 |
% |
|
68 |
% |
|
71 |
% |
|
67 |
% |
|
69 |
% |
|
72 |
% |
| Average number of lead agents |
1,419 |
|
|
1,397 |
|
|
1,415 |
|
|
1,327 |
|
|
1,118 |
|
|
1,028 |
|
|
1,010 |
|
|
935 |
|
|
796 |
|
|
1,390 |
|
|
1,023 |
|
|
763 |
|
| |
Redfin Corporation and Subsidiaries
Supplemental Financial Information
(in thousands) |
| |
| |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
| |
2018 |
|
2017 |
|
2018 |
|
2017 |
| |
Unaudited |
|
|
|
|
| Revenue by segment |
|
|
|
|
|
|
|
| Brokerage revenue |
$ |
93,985 |
|
|
$ |
83,045 |
|
|
$ |
406,293 |
|
|
$ |
330,372 |
|
| Partner revenue |
6,135 |
|
|
5,631 |
|
|
25,875 |
|
|
21,198 |
|
| Total real estate services revenue |
100,120 |
|
|
88,676 |
|
|
432,168 |
|
|
351,570 |
|
| Properties revenue |
21,604 |
|
|
5,147 |
|
|
44,993 |
|
|
10,491 |
|
| Other revenue |
2,476 |
|
|
1,931 |
|
|
9,882 |
|
|
7,975 |
|
| Intercompany eliminations |
(71 |
) |
|
— |
|
|
(123 |
) |
|
— |
|
| Total revenue |
$ |
124,129 |
|
|
$ |
95,754 |
|
|
$ |
486,920 |
|
|
$ |
370,036 |
|
| |
|
|
|
|
|
|
|
| Cost of revenue by segment |
|
|
|
|
|
|
|
| Real estate services cost of revenue |
$ |
72,294 |
|
|
$ |
58,982 |
|
|
$ |
309,069 |
|
|
$ |
237,832 |
|
| Properties cost of revenue |
22,527 |
|
|
5,022 |
|
|
46,613 |
|
|
10,384 |
|
| Other cost of revenue |
3,170 |
|
|
2,579 |
|
|
11,937 |
|
|
10,000 |
|
| Intercompany eliminations |
(71 |
) |
|
— |
|
|
(123 |
) |
|
— |
|
| Total cost of revenue |
$ |
97,920 |
|
|
$ |
66,583 |
|
|
$ |
367,496 |
|
|
$ |
258,216 |
|
| |
|
|
|
|
|
|
|
| Gross profit by segment |
|
|
|
|
|
|
|
| Real estate services gross profit |
$ |
27,826 |
|
|
$ |
29,694 |
|
|
$ |
123,099 |
|
|
$ |
113,738 |
|
| Properties gross profit |
(923 |
) |
|
125 |
|
|
(1,620 |
) |
|
107 |
|
| Other gross profit |
(694 |
) |
|
(648 |
) |
|
(2,055 |
) |
|
(2,025 |
) |
| Total gross profit |
$ |
26,209 |
|
|
$ |
29,171 |
|
|
$ |
119,424 |
|
|
$ |
111,820 |
|
| |
Redfin Corporation and Subsidiaries
Reconciliation of GAAP to non-GAAP Financial Measures
(unaudited, in thousands, except share and per share amounts) |
| |
| |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
| |
2018* |
|
2017* |
|
2018* |
|
2017 |
| Net loss attributable to common stock, as reported |
$ |
(12,222 |
) |
|
$ |
(1,798 |
) |
|
$ |
(41,978 |
) |
|
$ |
(190,917 |
) |
| Adjustments |
|
|
|
|
|
|
|
| Add-back: Accretion of redeemable convertible preferred stock |
— |
|
|
— |
|
|
— |
|
|
175,915 |
|
| Net loss attributable to common stock, adjusted |
$ |
(12,222 |
) |
|
$ |
(1,798 |
) |
|
$ |
(41,978 |
) |
|
$ |
(15,002 |
) |
| Non-GAAP adjusted net loss per share - basic and diluted |
$ |
(0.14 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.20 |
) |
| Weighted-average shares used to compute non-GAAP adjusted net loss per share — basic and diluted |
89,650,602 |
|
|
81,428,862 |
|
|
85,669,039 |
|
|
75,064,269 |
|
| |
|
|
|
|
|
|
|
| Reconciliation of weighted-average shares used to compute net loss per share attributable to common
stockholders, from GAAP to non-GAAP — basic and diluted |
|
|
|
|
|
|
|
| Weighted-average shares used to compute GAAP net loss per share attributable to common stockholders — basic and
diluted |
89,650,602 |
|
|
81,428,862 |
|
|
85,669,039 |
|
|
42,722,114 |
|
| Adjustments |
|
|
|
|
|
|
|
| Conversion of redeemable convertible preferred stock as of beginning of period presented |
— |
|
|
— |
|
|
— |
|
|
32,342,155 |
|
| Weighted-average shares used to compute non-GAAP adjusted net loss per share — basic and diluted |
89,650,602 |
|
|
81,428,862 |
|
|
85,669,039 |
|
|
75,064,269 |
|
* All amounts for 2018 and for three month ended December 31, 2017 are presented on a GAAP basis and included for comparative
purposes.
