Financial Data and Key Metrics Changes - Redfin's Q4 2024 revenue was $244 million, up 12% year-over-year, marking the fourth consecutive quarter of growth [8] - Adjusted EBITDA loss for Q4 was $3 million, an improvement from a loss of $13 million in the prior year, with a full-year adjusted EBITDA loss of $27 million, improving by $53 million over 2023 [9][30] - Net loss for Q4 was $36 million, compared to a net loss of $23 million in the prior year, which was below the guidance range [31] Business Line Data and Key Metrics Changes - Real estate services revenue was $149 million, up 12% year-over-year, with brokerage revenue increasing by 13% [32] - Rentals segment revenue was $52 million, a 5% increase, marking its ninth consecutive quarter of growth [35] - Mortgage segment revenue was $30 million, up 15% year-over-year, with gross margin improving from 4.6% to 10.9% [37][28] Market Data and Key Metrics Changes - Real estate services market share was 0.72%, flat year-over-year, despite a significant increase in the sales force [12] - The number of days a listing took to sell increased by 15% year-over-year, indicating a mixed market environment [27] Company Strategy and Development Direction - The company plans to aggressively expand its sales force and improve monetization across all business segments, including a partnership with Zillow to enhance rental listings [13][19] - Redfin aims to increase real estate gross margins to approximately 30% in 2025, with expectations of improved profitability from the Zillow partnership [15][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the housing market, noting that while home sales may not significantly recover in 2025, the worst of the downturn is likely behind [25][27] - The company anticipates a gradual recovery in home sales, particularly in the summer, as inventory increases and sellers become less aggressive on pricing [26] Other Important Information - The company expects first-quarter revenue to be between $214 million and $225 million, representing a year-over-year change of down 5% to roughly flat [40] - Significant restructuring charges are anticipated in the first quarter, primarily related to the Zillow partnership and workforce reduction [42] Q&A Session Summary Question: Regarding ad spending and marketing strategy - Management indicated that advertising is being ramped up early to capture homebuyer interest, with expectations of significant profitability in 2025 [48][50] Question: On lead agent count and hiring - The lead agent count increased by 25% from the previous quarter, with a focus on hiring experienced agents who are outperforming tenured agents [60][61] Question: About the rentals business and revenue expectations - Revenue from the rentals segment is expected to decrease initially due to the transition but is projected to triple adjusted EBITDA over 2024 on a run rate basis [43][68] Question: On market share trends in Next markets - Management noted that the transition to the Next program has been successful, particularly in high-end markets, and they are optimistic about future share gains [78][80] Question: On the economics of Redfin Next - The company is focused on maximizing gross profit from online audiences and has made adjustments to agent compensation to improve margins [110][114]

A Technology-Powered Real Estate Company Q4 2024 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," "contin ...

Redfin Corporation (NASDAQ:RDFN) Q4 2024 Earnings Conference Call February 27, 2025 4:30 PM ET Corporate Participants Meg Nunnally - Head, IR Glenn Kelman - Chief Executive Officer Chris Nielsen - Chief Financial Officer Conference Call Participants Naved Khan - B. Riley John Campbell - Stephens Dae Lee - JPMorgan Jason Helfstein - Oppenheimer & Co. Ygal Arounian - Citi John Colantuoni - Jefferies Tom White - DA Davidson Operator Greetings and welcome to Redfin Corporation Quarter Four 2024 Earnings Confere ...

Core Insights - Redfin reported revenue of $244.28 million for the quarter ended December 2024, reflecting a 12% increase year-over-year, and an EPS of -$0.29, compared to -$0.20 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $241.47 million by 1.17%, while the EPS fell short of the consensus estimate of -$0.24 by 20.83% [1] Financial Performance Metrics - Total real estate services transactions reached 14.36 million, surpassing the average estimate of 13.76 million [4] - The average number of lead agents was 1,927, exceeding the estimated 1,742 [4] - Real estate services revenue was $148.98 million, slightly above the average estimate of $147.32 million, marking a year-over-year increase of 12.1% [4] - Revenue from rentals was $51.63 million, compared to the estimated $51.15 million, representing a 5% increase year-over-year [4] - Mortgage revenue was reported at $30.21 million, exceeding the average estimate of $29.82 million, with a year-over-year growth of 15% [4] Stock Performance - Redfin's shares have returned +1.7% over the past month, contrasting with a -2.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Redfin achieved notable revenue growth in Q4 2024, reaching $244.3 million, surpassing analyst expectations of $242 million, and marking a 12.0% increase year-over-year [2][5] - Despite revenue growth, the company reported a GAAP EPS of -$0.29, which was below the estimate of -$0.24, indicating ongoing challenges in achieving profitability [2][7] Financial Performance - Revenue for Q4 2024 was $244.3 million, up from $218.1 million in Q4 2023, reflecting a 12.0% year-over-year growth [3][5] - Adjusted EBITDA improved significantly to $2.9 million, a turnaround from a loss of $13.5 million in the same quarter last year, indicating better cost management [3][6] - The net loss for the quarter was reported at $36.4 million, exceeding guidance due to higher operational costs [7] Business Strategy - Redfin's business model focuses on leveraging technology to enhance the real estate brokerage experience, with a reduced commission pricing strategy appealing to cost-sensitive consumers [4] - The company is enhancing its technological offerings and integrating services like brokerage, rentals, and mortgage to create a seamless customer journey [4] - Partnerships, such as the one with Zillow, aim to expand Redfin's rental listings and consumer reach, contributing approximately $100 million [8] Future Outlook - For Q1 2025, Redfin projects revenue between $214 million and $225 million, indicating cautious optimism for continued growth despite market challenges [9] - The anticipated net loss for the first quarter is expected to be between $83 million and $94 million, suggesting that profitability remains a challenge [9]

Financial Performance - Total revenue for 2024 was $1,042,979,000, an increase of $66,307,000 or 7% compared to 2023[186]. - Gross profit for 2024 was $364,201,000, reflecting a 10% increase from $329,819,000 in 2023[188]. - Net loss from continuing operations was $164,801,000 in 2024, compared to a loss of $126,392,000 in 2023[183]. - Total revenue for the year ended December 31, 2022, was $1,099.6 million, with real estate services contributing $787.1 million and rentals $155.9 million[241]. - The net loss from continuing operations for the year ended December 31, 2022, was $249.8 million, compared to a net loss of $321.1 million in 2022[242]. - The company reported a net loss of $(164,801) million for 2024, compared to $(130,026) million in 2023[305]. - The total stockholders' equity (deficit) as of December 31, 2024, was $(82.7) million, a decrease from $(2.7) million in 2023[308]. Revenue and Transactions - Total real estate services transactions were 61,430 in 2024, slightly down from 61,920 in 2023 and significantly lower than 80,203 in 2022[146]. - Real estate services revenue increased by $24,290,000 or 4%, with brokerage revenue rising by $28,315,000 or 5%[186]. - Revenue from the top-10 markets accounted for 56% of real estate services revenue in 2024, up from 55% in 2023 but down from 58% in 2022[146]. - Monthly average visitors decreased to 48,129 thousand in 2024 from 49,479 thousand in 2023, and 49,654 thousand in 2022[146]. - Total real estate services transactions for Q4 2024 were 14,363, down from 16,764 in Q3 2024[225]. Costs and Expenses - Total cost of revenue increased by $31,925,000 or 5% in 2024, primarily due to a $27,100,000 rise in personnel costs and transaction bonuses[188]. - Operating expenses totaled $519,456,000 in 2024, a decrease from $547,874,000 in 2023[183]. - Marketing expenses decreased by $3.4 million, or 3%, mainly due to a $1.7 million decrease in outside services[196]. - Technology and development expenses decreased by $19.4 million, or 11%, primarily due to a $16.4 million decrease in amortization expense[195]. - General and administrative expenses decreased by $3.4 million, or 1%, primarily due to an $8.0 million decrease in company event costs[197]. Market Share and Workforce - U.S. market share by units remained stable at 0.76% in 2024, unchanged from 2023, but down from 0.80% in 2022[146]. - The average number of lead agents decreased to 1,765 in 2024 from 1,776 in 2023 and 2,426 in 2022[146]. - The company reduced its workforce by 39% from April 2022 to December 2024 to align operations with consumer demand[143]. - The average number of lead agents increased to 1,927 in Q4 2024 from 1,757 in Q3 2024, indicating growth in the sales force[225]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2024, were $124.7 million, indicating liquidity for operational needs[245]. - Net cash used in operating activities for the year ended December 31, 2024, was $32.3 million, primarily due to a net loss of $164.8 million[254]. - Net cash provided by investing activities for the year ended December 31, 2024, was $34.4 million, mainly from $45.6 million in net sales of U.S. government securities[258]. - The company expects sufficient liquidity to meet operational needs and growth for at least the next twelve months, relying on existing cash and future cash generation[250]. Interest and Financing - Interest income decreased to $6,348,000 in 2024 from $10,532,000 in 2023[183]. - Interest expense increased by $18.3 million, or 192%, primarily due to interest on a term loan not present in the full period of 2023[200]. - The company incurred $5.684 million in restructuring and reorganization expenses in 2024, consistent with ongoing operational adjustments[235]. - The company repurchased $119.7 million of its 2025 convertible senior notes during the year ended December 31, 2024, using $107.0 million in cash[246]. Strategic Focus and Operations - The properties segment was wound down in Q2 2023 to focus resources on core business operations[144]. - The company plans to continue focusing on cost reduction strategies and optimizing operational efficiency moving forward[213]. - Redfin's operations include an online real estate marketplace and mortgage services, with a focus on technology-driven solutions[313]. - The company plans to continue focusing on technology and development, with expenses in this area amounting to $163.927 million in 2024[237]. Accounting and Reporting - Redfin's financial statements are prepared in accordance with generally accepted accounting principles (GAAP) in the United States[314]. - Revenue recognition policies include brokerage revenue recognized upon closing transactions, with partner revenue based on a fixed percentage of partner agents' commissions[267]. - Goodwill impairment testing is performed annually, with no impairment charges recorded for the years ended December 31, 2024, or 2023[274].

Revenue Performance - Fourth quarter revenue was $244.3 million, a 12% increase compared to Q4 2023[2] - Full year revenue reached $1,043.0 million, reflecting a 7% year-over-year growth[4] - Revenue for Q4 2024 was $244.3 million, a 12.0% increase from $218.1 million in Q4 2023[18] - Gross profit for the year ended December 31, 2024, reached $364.2 million, up 10.4% from $329.8 million in 2023[18] - Revenue from real estate services reached $148,982 thousand for the three months ended December 31, 2024, compared to $244,282 thousand in total revenue[23] - Total revenue for the three months ended December 31, 2023, was $218.1 million, with real estate services contributing $132.9 million, rentals $49.2 million, and mortgage services $26.3 million[26] - Total revenue for the year ended December 31, 2023, was $976.7 million, with real estate services contributing $618.6 million, rentals $184.8 million, and mortgage $134.1 million[34] Profitability and Losses - Total net loss for 2024 was $164.8 million, compared to a net loss of $130.0 million in 2023[5] - Adjusted EBITDA loss improved to $26.5 million in 2024, from a loss of $76.4 million in 2023[5] - Net loss from continuing operations for the year was $164.8 million, compared to a loss of $126.4 million in 2023, representing a 30.4% increase in losses[18] - The company reported a net loss per share attributable to common stock of $1.36 for the year, compared to $1.13 in 2023[18] - The company reported a net loss from continuing operations of $(36,365) thousand for the three months ended December 31, 2024, compared to a net loss of $(15,544) thousand in the previous quarter[23] - The net loss from continuing operations for the three months ended December 31, 2023, was $22.9 million, compared to a net loss of $21.4 million in the previous quarter[26] - Adjusted EBITDA for the year was $(76.4) million, indicating ongoing challenges in profitability[35] Operating Expenses - Total operating expenses decreased to $519.5 million in 2024, down 5.2% from $547.9 million in 2023[18] - Total operating expenses amounted to $117.4 million, with technology and development expenses at $44.1 million and general and administrative expenses at $52.2 million[26] - Total operating expenses amounted to $547.9 million, with technology and development expenses at $183.3 million and marketing expenses at $117.9 million[34] Cash Flow and Financial Position - Cash, cash equivalents, and restricted cash at the end of the period were $125.0 million, down from $151.0 million at the beginning of the period[20] - The company reported a net cash used in operating activities of $32.3 million for the year, compared to a net cash provided of $56.8 million in 2023[20] - The company incurred interest expense of $27.8 million for the year, significantly higher than $9.5 million in 2023[18] - Interest income for the year included $11.2 million related to originated mortgage loans, while interest expense was $21.5 million[36] Market and Operational Metrics - Redfin's agents helped approximately 61,000 customers buy or sell homes in 2024, achieving a market share of 0.76% of U.S. existing home sales[11] - The mortgage attach rate (excluding cash transactions) increased to 27% in 2024, up from 24% in 2023[11] - Monthly average visitors decreased to 42,680 thousand in December 2024 from 51,619 thousand in June 2024, representing a decline of approximately 17.2%[22] - Total real estate services transactions for the three months ended December 31, 2024, were 14,363, down from 17,573 in June 2024, a decrease of about 18.5%[22] - Mortgage originations by dollars totaled $1,035 million in December 2024, down from $1,338 million in June 2024, a decrease of approximately 22.7%[22] - The U.S. market share by units was reported at 0.72% for December 2024, a slight decrease from 0.77% in June 2024[22] - Revenue from the top-10 Redfin markets accounted for 56% of total real estate services revenue in December 2024, consistent with previous quarters[22] - The average number of lead agents increased to 1,927 in December 2024, up from 1,719 in June 2024, indicating a growth of approximately 12.1%[22] Future Guidance and Strategy - The company expects total revenue for Q1 2025 to be between $214 million and $225 million, representing a year-over-year change between (5)% and 0%[12] - Redfin anticipates a total net loss for Q1 2025 between $94 million and $83 million, including $40 million in marketing expenses[12] - The company plans to increase advertising by 38% while still aiming for a full-year adjusted EBITDA profit[6] - Future guidance for the first quarter of 2025 projects a net loss between $94 million and $83 million, with adjusted EBITDA expected to range from $(39) million to $(32) million[40] - The company is focusing on market expansion and new technology development to improve future performance[34] - There were no significant acquisitions reported during the year, but the company continues to evaluate potential opportunities for growth[37]

Core Viewpoint - Analysts forecast a quarterly loss of $0.24 per share for Redfin, indicating a year-over-year decline of 20%, while revenues are expected to reach $241.47 million, reflecting a 10.7% increase compared to the previous year [1]. Revenue Estimates - The consensus estimate for 'Revenue - Real estate services' is $147.32 million, showing a year-over-year change of +10.9% [4]. - 'Revenue - Rentals' is projected to be $51.15 million, with a year-over-year change of +4% [5]. - 'Revenue - Other' is estimated at $14.17 million, indicating a significant year-over-year change of +45.4% [5]. - 'Revenue - Mortgage' is expected to be $29.82 million, reflecting a year-over-year increase of +13.5% [5]. Transaction and Agent Metrics - 'Real estate services transactions - Total' are expected to reach 13.76 million, up from 13.34 million in the same quarter last year [6]. - The 'Average number of lead agents' is projected to be 1,742, compared to 1,692 in the same quarter last year [6]. - 'Real estate services transactions - Partner' are forecasted to be 2.92 million, down from 3.19 million year-over-year [7]. Revenue per Transaction - 'Real estate services revenue per transaction - Aggregate' is expected to be $10.66 million, compared to $9.96 million in the same quarter last year [7]. - 'Real estate services revenue per transaction - Partner' is projected at $3.03 million, up from $2.68 million year-over-year [8]. - 'Real estate services revenue per transaction - Brokerage' is estimated to be $12.8 million, compared to $12.25 million in the same quarter last year [9]. Visitor Metrics - Analysts predict 'Monthly average visitors' will reach 43.87 million, slightly up from 43.86 million year-over-year [8]. Market Performance - Redfin shares have experienced a change of -1.2% in the past month, compared to a -0.5% move of the Zacks S&P 500 composite [9]. - With a Zacks Rank 2 (Buy), Redfin is expected to outperform the overall market in the near future [10].

Company Overview - Redfin (RDFN) is expected to report a quarterly loss of $0.24 per share, reflecting a year-over-year decline of 20% [3] - Revenues are anticipated to reach $241.47 million, which is a 10.7% increase from the same quarter last year [3] Earnings Expectations - Wall Street anticipates a year-over-year decline in earnings despite higher revenues, with the earnings report due on February 27 [1][2] - The consensus EPS estimate has been revised 0.5% lower in the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Prediction - The Most Accurate Estimate for Redfin matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10] - Redfin holds a Zacks Rank of 2 (Buy), but this combination makes it challenging to predict an earnings beat conclusively [11] Historical Performance - In the last reported quarter, Redfin was expected to post a loss of $0.20 per share but actually reported a loss of $0.28, resulting in a surprise of -40% [12] - Over the past four quarters, Redfin has beaten consensus EPS estimates three times [13] Industry Comparison - Bridge Investment Group Holdings Inc. (BRDG), another player in the real estate operations sector, is expected to report earnings of $0.16 per share, indicating a year-over-year increase of 14.3% [17] - BRDG's revenues are projected to be $81.32 million, up 15.3% from the previous year [17] - The consensus EPS estimate for BRDG has been revised 2.8% higher in the last 30 days, but it currently has an Earnings ESP of -2.04% and a Zacks Rank of 4 (Sell) [18]

Agreement adds the Redfin sites to the Zillow Rentals Network, enhancing the rental search experience for renters while helping property marketers reach a broader audienceSEATTLE, Feb. 11, 2025 /PRNewswire/ -- Zillow® and Redfin today announced a partnership making Zillow the exclusive provider of multifamily rental listings (properties with 25 or more units) on Redfin and its sites, Rent.com and ApartmentGuide.com. This partnership is expected to give renters access to a larger pool of available apartments ...