Redfin Corporation (NASDAQ:RDFN) Q2 2022 Earnings Conference Call August 4, 2022 4:30 PM ET Company Participants Meg Nunnally - Head of Investor Relations Glenn Kelman - Chief Executive Officer Chris Nielsen - Chief Financial Officer Conference Call Participants Brian Mecke - Selman & Associates Operator Good day, and welcome to the Redfin Corporation Q2 2022 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Meg Nunnally. Please go ahead, m ...

| --- | --- | --- | --- | --- | --- | |-------------------------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | A Technology-Powered Real Estate Company | | | | | | | Q2 2022 Earnings Slides | | | | | | | | | | | | | Important Legal Information This presentation contains forward-looking statements. All statements contained in this presentation other than statements of historical fact, including statements regarding our future operating re ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___ to ___ Commission file number 001-38160 Redfin Corporation (Exact name of registrant as specified in its charter) Delaware 74-3064240 (State or other juris ...

Q1 2022 Financial Highlights - Total revenue reached $597 million, a 123% year-over-year increase[10] - Real estate services revenue was $177 million, up 5% year-over-year[19] - Properties revenue surged to $380 million, a 310% year-over-year increase[24] - Gross margin was 12.1%, a decrease of 370 bps year-over-year[13] - Net loss amounted to $91 million[15] Key Metrics & Market Position - Average monthly visitors reached 51.3 million, an 11% increase compared to the prior year[8] - U S market share increased to 1 18%, a 2 bps year-over-year increase[8] Q2 2022 Outlook - The company projects total revenue between $613 million and $650 million, representing a year-over-year growth of 30% to 38%[41] - Real estate services revenue is expected to grow between -1% and 1% year-over-year[41] - Properties revenue is projected to grow between 48% and 63% year-over-year[41] - Net loss is anticipated to be between $60 million and $72 million[41]

Redfin Corporation (NASDAQ:RDFN) Q1 2022 Earnings Conference Call May 5, 2022 4:30 PM ET Company Participants Meg Nunnally - Head of IR Glenn Kelman - CEO Chris Nielsen - CFO Conference Call Participants Mark Mahaney - Evercore ISI Ygal Arounian - Wedbush Robert Zeller - Truist Securities John Campbell - Stephens Inc. Tom Champion - Piper Sandler Operator Good day. And welcome to the Redfin Corporation First Quarter 2022 Earnings Call. Today’s conference is being recorded. At this time, I’d like to turn the ...

PART I - FINANCIAL INFORMATION This section details the company's unaudited financial performance, condition, market risks, and internal controls [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the company's unaudited consolidated financial statements, including balance sheets, statements of comprehensive loss, and cash flows, along with their accompanying notes [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This subsection presents the company's consolidated balance sheets, statements of comprehensive loss, and cash flows Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $612,680 | $591,003 | | Inventory | $245,487 | $358,221 | | Total current assets | $1,099,231 | $1,246,064 | | Total assets | $1,867,153 | $2,021,972 | | **Liabilities & Equity** | | | | Total current liabilities | $300,366 | $401,812 | | Convertible senior notes, net, noncurrent | $1,238,585 | $1,214,017 | | Total liabilities | $1,591,651 | $1,672,252 | | Total stockholders' equity | $235,623 | $309,852 | Consolidated Statements of Comprehensive Loss (in thousands) | Account | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Total revenue | $597,346 | $268,319 | | Gross profit | $72,538 | $42,358 | | Loss from operations | ($85,120) | ($34,513) | | Net loss | ($90,806) | ($35,784) | | Net loss per share | ($0.86) | ($0.37) | Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $79,001 | ($50,765) | | Net cash used in investing activities | ($73,192) | ($9,573) | | Net cash (used in) provided by financing activities | ($75,359) | $457,562 | | Net change in cash, cash equivalents, and restricted cash | ($69,554) | $397,225 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This subsection provides detailed notes supporting the consolidated financial statements, including acquisition details and debt information - On April 2, 2021, Redfin acquired RentPath Holdings, Inc. for **$608 million** in cash to enter the real estate rentals market. The acquisition resulted in the recognition of **$400.2 million** in goodwill and **$211.0 million** in intangible assets[37](index=37&type=chunk)[39](index=39&type=chunk) Segment Gross Profit (in thousands) | Segment | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Real estate services | $23,703 | $40,393 | | Properties | $20,887 | $1,596 | | Rentals | $30,851 | — | | Mortgage | ($2,600) | ($158) | | **Total** | **$72,538** | **$42,358** | - As of March 31, 2022, the company had three tranches of convertible senior notes outstanding with a total net carrying amount of **$1.24 billion**[53](index=53&type=chunk)[122](index=122&type=chunk) - Subsequent to the quarter end, on April 1, 2022, Redfin completed the acquisition of Bay Equity LLC, a full-service mortgage lender, for an estimated purchase price of **$137.8 million**[132](index=132&type=chunk)[134](index=134&type=chunk) - On April 29, 2022, the company settled a lawsuit alleging violations of the Fair Housing Act (FHA). The settlement includes payments totaling **$4 million** and changes to business practices[137](index=137&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant revenue growth driven by the Properties segment and RentPath acquisition, alongside declining gross margins, rising operating expenses, and the company's liquidity position [Key Business Metrics](index=34&type=section&id=Key%20Business%20Metrics) This subsection presents key operational metrics used to evaluate the company's performance Key Operating Metrics Comparison | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Monthly average visitors (thousands) | 51,287 | 46,202 | | Total real estate services transactions | 18,418 | 18,261 | | U.S. market share by value | 1.18% | 1.16% | | RedfinNow homes sold | 617 | 171 | [Results of Operations](index=39&type=section&id=Results%20of%20Operations) This subsection details the company's revenue, gross profit, and operating expenses by segment Revenue by Segment (in thousands) | Segment | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Total real estate services | $177,487 | $168,609 | 5% | | Properties | $379,753 | $92,726 | 310% | | Rentals | $38,044 | — | N/A | | Mortgage | $2,917 | $5,711 | (49)% | | **Total revenue** | **$597,346** | **$268,319** | **123%** | Gross Margin by Segment | Segment | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Real estate services | 13.4% | 24.0% | | Properties | 5.5% | 1.7% | | Rentals | 81.1% | N/A | | Mortgage | (89.1)% | (2.8)% | | **Total gross margin** | **12.1%** | **15.8%** | - Operating expenses increased by **105% YoY** to **$157.7 million**. This was driven by the inclusion of RentPath's operating expenses (**$46.3 million**), a **$16.2 million** increase in marketing media costs, and a **$6.9 million** increase in technology personnel costs[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) This subsection discusses the company's cash position, debt obligations, and cash flow activities - As of March 31, 2022, the company had **$612.7 million** in cash and cash equivalents and **$151.7 million** in investments[204](index=204&type=chunk) - The company has **$1.26 billion** in aggregate principal of convertible senior notes outstanding, maturing between 2023 and 2027[205](index=205&type=chunk) - Net cash provided by operating activities was **$79.0 million** for Q1 2022, a significant improvement from the **$50.8 million** used in Q1 2021, primarily due to a **$112.7 million** decrease in inventory[212](index=212&type=chunk)[214](index=214&type=chunk)[215](index=215&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is to interest rate fluctuations, which affect its investment portfolio, mortgage operations (loans held for sale, IRLCs), and borrowings under its secured revolving credit facility. Foreign currency risk from Canadian operations is considered insignificant - The company is exposed to interest rate risk on its mortgage loans held for sale and Interest Rate Lock Commitments (IRLCs), which it manages through the use of forward sales commitments[243](index=243&type=chunk) - Borrowings under the secured revolving credit facility are subject to interest rate risk, but a hypothetical **10% change** in rates is not expected to have a material impact[244](index=244&type=chunk) [Item 4. Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2022. No material changes to internal control over financial reporting were identified during the quarter - Based on an evaluation, the principal executive and financial officers concluded that disclosure controls and procedures were **effective** as of March 31, 2022[247](index=247&type=chunk) - There were **no changes** in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[248](index=248&type=chunk) PART II - OTHER INFORMATION This section provides information on legal proceedings, key risk factors, and a list of exhibits filed with the quarterly report [Item 1. Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 of the consolidated financial statements for details on material, pending legal proceedings - For a discussion of material, pending legal proceedings, the report refers to Note 8 of the consolidated financial statements[252](index=252&type=chunk) [Item 1A. Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) The company highlights new risks related to its mortgage business, including secondary market disruptions, fair value estimation challenges for MSRs, and reliance on warehouse credit facilities - A key risk is the potential for disruption in the secondary mortgage market, which could hinder the ability of the newly acquired Bay Equity to sell its originated mortgage loans on favorable terms[254](index=254&type=chunk) - The company faces risk from the difficulty in accurately estimating the fair value of mortgage servicing rights (MSRs), which are sensitive to factors like prepayment rates and delinquencies[255](index=255&type=chunk)[256](index=256&type=chunk) - Bay Equity's reliance on warehouse credit facilities to fund its mortgage originations presents a risk; if these facilities become unavailable, it could adversely affect the ability to originate new loans[258](index=258&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section provides a list of exhibits filed or furnished with the quarterly report, including the Merger Agreement for the Bay Equity acquisition, officer certifications, and interactive data files - This section lists the exhibits filed with the Form 10-Q, including officer certifications (31.1, 31.2, 32.1, 32.2) and interactive data files (101, 104)[261](index=261&type=chunk)

Redfin Corporation (NASDAQ:RDFN) Q4 2021 Earnings Conference Call February 17, 2022 4:30 PM ET Company Participants Meg Nunnally - Head of Investor Relations Glenn Kelman - Chief Executive Officer Chris Nielsen - Chief Financial Officer Conference Call Participants Naved Khan - Truist Securities Jason Helfstein - Oppenheimer Ryan McKeveny - Zelman Associates Ygal Arounian - Wedbush Smith Hanley - KeyBanc Curtis Nagle - Bank of America Brad Erickson - RBC Capital Markets Mark Mahaney - Evercore Tom Champion ...

Q4 2021 Highlights - Redfin reached a market share of 1.15%, an increase of 11 basis points year-over-year[9] - The company's average monthly visitors reached 447 million, a 1% increase compared to the prior year[9] - Redfin is on track to launch rental listings on Redfincom in March 2022[9] - In January 2022, Redfin announced an agreement to acquire Bay Equity[9] Q4 2021 Financial Results - Total revenue for Q4 2021 was $643 million, a 163% increase year-over-year[11] - Real estate services revenue in Q4 2021 reached $225 million, a 14% increase year-over-year[19] - Properties revenue for Q4 2021 was $377 million, an 857% increase year-over-year[24] - The gross margin for Q4 2021 was 168%, a decrease of 1600 basis points year-over-year[13] - The company reported a net loss of $270 million for Q4 2021[15] Q1 2022 Outlook - The company anticipates total revenue between $535 million and $560 million, representing year-over-year growth between 99% and 109%[39] - Real estate services revenue is projected to be between $165 million and $171 million, indicating year-over-year growth between (2)% and 1%[39] - Properties revenue is expected to range from $330 million to $350 million, reflecting year-over-year growth between 256% and 277%[39]

PART I [Business](index=5&type=section&id=Item%201.%20Business) Redfin operates as a technology-powered residential real estate brokerage, integrating its own agents with proprietary technology to offer comprehensive, efficient, and cost-effective services - Redfin's core business is a **residential real estate brokerage** that pairs its own agents with its own technology to provide a **comprehensive suite of services**, including mortgage, title, direct home buying (iBuying), and rentals[17](index=17&type=chunk)[18](index=18&type=chunk) - The company aims to provide a **complete, integrated customer solution** by combining brokerage, rentals, mortgage, title services, and instant offers, believing this approach is more efficient than using separate stand-alone companies[22](index=22&type=chunk) Key Business Achievements and Statistics (as of 2021) | Metric | Value | | :--- | :--- | | Homes Bought/Sold (cumulative through 2021) | > 400,000 | | Aggregate Home Value (cumulative through 2021) | > $200 billion | | Customer Savings (cumulative since 2006) | > $1 billion | | Monthly Average Visitors (2021) | > 47 million | | Seller Commission Rate | 1% to 1.5% | | Average Homebuyer Refund (2021) | > $1,900 | - Redfin employs its lead agents, paying them a salary and benefits, which resulted in a median income **over 2.5 times higher** than competing agents in 2021 and a **17% higher retention rate** from 2020 to 2021[32](index=32&type=chunk) [Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from U.S. residential real estate market health, intense competition, geographic concentration, and substantial indebtedness for its RedfinNow and mortgage operations - The business is **highly dependent on the health of the U.S. residential real estate industry**, which is susceptible to macroeconomic factors such as mortgage rates, unemployment, inflation, and consumer confidence[42](index=42&type=chunk)[43](index=43&type=chunk) - A significant portion of real estate services revenue is **concentrated in its top-10 metropolitan markets**, making the company vulnerable to adverse local or regional economic conditions in these areas[47](index=47&type=chunk)[48](index=48&type=chunk) - The RedfinNow business faces **risks of overestimating home purchase prices** and potential **declines in the value of its owned home inventory** due to market changes or unforeseen property defects[70](index=70&type=chunk)[71](index=71&type=chunk) - The company has **substantial indebtedness** through convertible senior notes and **relies on credit facilities** to fund RedfinNow home purchases and Redfin Mortgage loan originations, with potential defaults if payment obligations are not met[97](index=97&type=chunk)[101](index=101&type=chunk)[106](index=106&type=chunk) [Unresolved Staff Comments](index=23&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are **no unresolved staff comments**[119](index=119&type=chunk) [Properties](index=23&type=section&id=Item%202.%20Properties) This item is not applicable as the company does not own material properties beyond its RedfinNow inventory - This section is **not applicable** as the company does not have material properties to disclose here[120](index=120&type=chunk) [Legal Proceedings](index=23&type=section&id=Item%203.%20Legal%20Proceedings) Material legal proceedings are discussed in Note 8 of the consolidated financial statements - Details on material legal proceedings are provided in **Note 8** to the consolidated financial statements[121](index=121&type=chunk) [Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business operations - This section is **not applicable**[122](index=122&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=24&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Redfin's common stock trades on Nasdaq under 'RDFN', with no cash dividends planned for common stock, and no equity security purchases in Q4 2021 - Redfin's common stock trades on **The Nasdaq Global Select Market** under the symbol **'RDFN'**[125](index=125&type=chunk) - The company **does not intend to pay cash dividends on its common stock** in the foreseeable future, though it pays quarterly dividends on convertible preferred stock in common stock shares[126](index=126&type=chunk) - During the quarter ended December 31, 2021, there were **no purchases of the company's common stock** by or on behalf of Redfin[129](index=129&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2021, Redfin's revenue grew 117% to $1.92 billion, driven by Properties and Rentals segments, but net loss widened to $109.6 million due to lower gross margin and increased operating expenses [Key Business Metrics](index=26&type=section&id=Key%20Business%20Metrics) In 2021, Redfin experienced growth in monthly average visitors, real estate services transactions, U.S. market share, and RedfinNow homes sold Key Business Metrics (2019-2021) | Metric | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Monthly average visitors (thousands) | 47,113 | 42,862 | 33,473 | | Total real estate services transactions | 94,579 | 75,800 | 65,174 | | U.S. market share by value | 1.17% | 1.00% | 0.93% | | Average number of lead agents | 2,396 | 1,757 | 1,553 | | RedfinNow Homes Sold | 1,451 | 453 | 503 | [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Total revenue increased 117% to $1.92 billion in 2021, but gross margin declined to 21.0%, and the company reported a net loss of $109.6 million Consolidated Statement of Operations (in thousands) | Line Item | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Revenue** | **$1,922,765** | **$886,093** | **$779,796** | | Cost of revenue | $1,518,945 | $653,983 | $635,693 | | **Gross profit** | **$403,820** | **$232,110** | **$144,103** | | Total operating expenses | $513,773 | $231,318 | $223,349 | | **(Loss) income from operations** | **($109,953)** | **$792** | **($79,246)** | | **Net loss** | **($109,613)** | **($18,527)** | **($80,805)** | Revenue by Segment (2021 vs. 2020, in thousands) | Segment | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Total real estate services | $903,334 | $651,208 | 39% | | Properties | $880,653 | $209,686 | 320% | | Rentals | $121,877 | $0 | N/A | | Mortgage | $19,818 | $15,835 | 25% | | **Total revenue** | **$1,922,765** | **$886,093** | **117%** | Gross Margin by Segment (2021 vs. 2020) | Segment | 2021 | 2020 | | :--- | :--- | :--- | | Real estate services | 33.2% | 35.9% | | Properties | 1.2% | (2.2)% | | Rentals | 82.2% | N/A | | Mortgage | (31.7)% | 1.3% | | **Total gross margin** | **21.0%** | **26.2%** | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2021, Redfin held $591.0 million in cash, with liquidity supported by operations and credit facilities, alongside $1.26 billion in convertible senior notes - As of December 31, 2021, the company had cash and cash equivalents of **$591.0 million** and investments of **$88.6 million**[210](index=210&type=chunk) - The company has significant debt obligations, including **$1.26 billion** in aggregate principal of convertible senior notes and **40,000 shares** of convertible preferred stock outstanding[211](index=211&type=chunk) Summary of Cash Flows (in thousands) | Activity | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($301,568) | $61,267 | ($107,610) | | Net cash used in investing activities | ($576,306) | ($57,119) | ($115,912) | | Net cash provided by financing activities | $650,341 | $694,227 | $31,883 | [Critical Accounting Policies and Estimates](index=44&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies involve significant judgment in revenue recognition, valuation of acquired intangible assets and goodwill, and home inventory valuation - Critical policies include **revenue recognition**, where brokerage revenue is recognized at closing and properties revenue is recorded on a gross basis representing the home's sales price[232](index=232&type=chunk)[233](index=233&type=chunk) - **Valuation of acquired intangible assets and goodwill** requires significant judgment regarding future cash flows, discount rates, and asset lives, impacting future depreciation and amortization[238](index=238&type=chunk)[239](index=239&type=chunk) - **Home inventory is stated at cost** and reviewed individually, with write-downs to net realizable value recognized if a home's estimated market value falls below its cost[243](index=243&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations, affecting investment income, mortgage operations, and borrowing costs, with foreign currency risk being insignificant - The primary market risk is **interest rate risk**, which impacts investment income, mortgage operations, and borrowing costs[249](index=249&type=chunk) - The mortgage business is exposed to **interest rate risk** on loans held for sale and IRLCs, managed through forward sales commitments[252](index=252&type=chunk) - Foreign currency exchange risk from Canadian operations is currently **not significant**[254](index=254&type=chunk) [Financial Statements and Supplementary Data](index=47&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2021, 2020, and 2019, including balance sheets, statements of comprehensive loss, cash flows, equity changes, and accompanying notes [Consolidated Balance Sheets](index=52&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2021, total assets increased to $2.02 billion, driven by inventory, goodwill, and intangibles, while total liabilities grew to $1.67 billion due to convertible senior notes Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $591,003 | $925,276 | | Inventory | $358,221 | $49,158 | | Goodwill | $409,382 | $9,186 | | **Total Assets** | **$2,021,972** | **$1,360,520** | | Secured revolving credit facility | $199,781 | $23,949 | | Convertible senior notes, net, noncurrent | $1,214,017 | $488,268 | | **Total Liabilities** | **$1,672,252** | **$730,140** | | **Total Stockholders' Equity** | **$309,852** | **$590,557** | [Consolidated Statements of Comprehensive Loss](index=53&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) In 2021, total revenue reached $1.92 billion, but the company reported a net loss of $109.6 million, resulting in a net loss per share of ($1.12) Key P&L Figures (in thousands) | Line Item | 2021 | 2020 | | :--- | :--- | :--- | | Total revenue | $1,922,765 | $886,093 | | Gross profit | $403,820 | $232,110 | | (Loss) income from operations | ($109,953) | $792 | | Net loss | ($109,613) | ($18,527) | | Net loss per share—basic and diluted | ($1.12) | ($0.23) | [Notes to Consolidated Financial Statements](index=59&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies, including the RentPath acquisition, segment revenue, legal proceedings, debt instruments, and a subsequent acquisition of Bay Equity - **Note 2 (Business Combinations):** On April 2, 2021, Redfin acquired RentPath for **$608 million** in cash, resulting in **$400.2 million** of goodwill and **$211 million** of identifiable intangible assets[356](index=356&type=chunk)[358](index=358&type=chunk)[359](index=359&type=chunk) - **Note 8 (Commitments and Contingencies):** The company is involved in several **material legal proceedings**, including lawsuits alleging Fair Housing Act violations and agent misclassification[387](index=387&type=chunk)[388](index=388&type=chunk) - **Note 15 (Debt):** The company utilizes warehouse credit facilities totaling **$115 million** and a secured revolving credit facility of **$200 million**, alongside three series of convertible senior notes[437](index=437&type=chunk)[440](index=440&type=chunk)[443](index=443&type=chunk) - **Note 16 (Subsequent Event):** On January 10, 2022, Redfin agreed to acquire Bay Equity, a full-service mortgage lender, for a premium of **$72.5 million** over its tangible book value at closing[455](index=455&type=chunk)[456](index=456&type=chunk) [Controls and Procedures](index=91&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2021, excluding the recently acquired RentPath - Management concluded that **disclosure controls and procedures were effective** as of the end of the period covered by the report[460](index=460&type=chunk) - Management's report on internal control over financial reporting concluded that **controls were effective** as of December 31, 2021, with the evaluation excluding the recently acquired RentPath[461](index=461&type=chunk)[462](index=462&type=chunk) PART III Part III incorporates information by reference from the 2022 proxy statement, covering directors, executive compensation, security ownership, related transactions, and accounting fees [Directors, Executive Officers and Corporate Governance](index=92&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2022 proxy statement - Information regarding directors, executive officers, and corporate governance is **incorporated by reference** from the forthcoming 2022 proxy statement[467](index=467&type=chunk) [Executive Compensation](index=92&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2022 proxy statement - Information regarding executive compensation is **incorporated by reference** from the forthcoming 2022 proxy statement[468](index=468&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=92&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners and management is incorporated by reference from the 2022 proxy statement - Information regarding security ownership is **incorporated by reference** from the forthcoming 2022 proxy statement[469](index=469&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=92&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the 2022 proxy statement - Information regarding related transactions and director independence is **incorporated by reference** from the forthcoming 2022 proxy statement[470](index=470&type=chunk) [Principal Accounting Fees and Services](index=92&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accounting fees and services is incorporated by reference from the 2022 proxy statement - Information regarding principal accounting fees and services is **incorporated by reference** from the forthcoming 2022 proxy statement[471](index=471&type=chunk) PART IV Part IV lists all exhibits filed with the Form 10-K, including governance documents, material contracts, debt indentures, and CEO/CFO certifications, with financial statements included in Item 8 [Exhibits, Financial Statement Schedules](index=93&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the annual report, including financial statements, merger agreements, corporate governance documents, and debt indentures - This item lists the **financial statements** included under Item 8 and all **exhibits** filed with the annual report[474](index=474&type=chunk)[475](index=475&type=chunk) [Form 10-K Summary](index=94&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates that there is no Form 10-K summary provided - This section is **not applicable**[477](index=477&type=chunk)

REDFIN A Technology-Powered Real Estate Company Q3 2021 Earnings Slides Important Legal Information This presentation contains forward-looking statements. All statements contained in this presentation other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans, our market growth and trends, and our objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," ...