Employee and Operational Changes - The company reduced its total number of employees by 40% from April 2022 to December 2023, including a 40% reduction in lead agents, to align operations with consumer demand [149]. - The company completed the wind-down of its properties segment, including RedfinNow, in the second quarter of 2023, focusing resources on its core business [150]. Website and Market Performance - Monthly average visitors to the company's website and mobile application were 49,413 thousand in September 2024, a decrease from 51,619 thousand in June 2024 [158]. - Real estate services transactions totaled 16,764 in September 2024, down from 17,573 in June 2024 [158]. - The average revenue per brokerage transaction was $12,363 in September 2024, compared to $12,545 in June 2024 [158]. - The company's U.S. market share by units was 0.76% in September 2024, slightly down from 0.77% in June 2024 [158]. - Revenue from the top-10 Redfin markets accounted for 56% of real estate services revenue in September 2024, consistent with June 2024 [158]. Financial Performance - Revenue for Q3 2024 reached $278.015 million, a 3.9% increase from $268.956 million in Q3 2023 [193]. - Gross profit for Q3 2024 was $101.863 million, compared to $98.340 million in Q3 2023, resulting in a gross margin of 36.6% [193]. - Operating expenses totaled $128.815 million in Q3 2024, up from $123.867 million in Q3 2023, with technology and development expenses at $40.332 million [193]. - Net loss from continuing operations for Q3 2024 was $33.782 million, compared to a loss of $18.972 million in Q3 2023 [193]. - Total revenue for the three months ended September 30, 2024, increased by $9.1 million, or 3%, compared to the same period in 2023, primarily driven by a $4.7 million increase in other segment revenue and a $4.3 million increase in rentals revenue [196]. - Total gross profit for the three months ended September 30, 2024, was $101.9 million, representing an increase of $3.5 million, or 4%, compared to the same period in 2023 [214]. - Total revenue for the nine months ended September 30, 2024, increased by $40.1 million, or 5%, to $798.7 million compared to $758.6 million in the same period in 2023 [212]. Cost and Expense Management - Total cost of revenue increased by $5.5 million, or 3%, compared to the same period in 2023, mainly due to a $5.0 million increase in personnel costs and transaction bonuses [198]. - Operating expenses decreased by $23.1 million, or 5%, to $407.4 million, with significant reductions in technology and development expenses by $10.2 million (7%) and marketing expenses by $5.2 million (5%) [220]. - Interest expense increased significantly to $8.537 million in Q3 2024 from $1.603 million in Q3 2023 [193]. - General and administrative expenses increased by $3.4 million, or 6%, compared to the same period in 2023, mainly due to higher legal settlements and services expenses [206]. Mortgage and Interest Rates - Mortgage originations by dollars were $1,214 million in September 2024, down from $1,338 million in June 2024 [158]. - Mortgage originations are influenced by interest rates and customer demand, impacting the growth of the mortgage business [176]. - A hypothetical 10% change in interest rates would not have a material impact on the company's financial results for the fourth quarter of 2024 [274]. Adjusted EBITDA and Non-GAAP Measures - Adjusted EBITDA is presented as a non-GAAP financial measure to enhance comparability of financial statements and provide insight into underlying business trends [228]. - Adjusted EBITDA for the three months ended September 30, 2024, was $3,948 thousand, down from $7,651 thousand in the same period of 2023, a decrease of approximately 48.3% [231][234]. Cash Flow and Financing Activities - Cash and cash equivalents as of September 30, 2024, were $165.7 million, providing liquidity for operational needs [242]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $(96.0) million, primarily due to the net loss [252]. - Net cash provided by investing activities was $36.6 million for the nine months ended September 30, 2024, mainly from sales of U.S. government securities [255]. - The company repurchased $5.0 million principal amount of 2025 convertible notes and $71.9 million principal amount of 2027 convertible notes for a total repurchase price of $57.1 million [270]. Impairment and Risk Management - Goodwill impairment testing indicated that the estimated fair values of all reporting units substantially exceeded their carrying values, with no impairment charges recorded [268]. - The company does not currently face significant foreign currency exchange rate risk due to limited operations in Canada [276]. - The company manages interest rate risk through forward sales commitments related to mortgage loans held for sale [275].

Core Viewpoint - Redfin (RDFN) is expected to report a quarterly loss of $0.20 per share, a decline of 17.7% year-over-year, with revenues projected at $280.21 million, reflecting a 4.2% increase compared to the previous year [1] Group 1: Earnings Estimates - Analysts predict a quarterly loss of $0.20 per share for Redfin, indicating a 17.7% decline from the same period last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting a reevaluation of initial estimates by analysts [1] Group 2: Revenue Estimates - The consensus estimate for 'Revenue- Real estate services' is $177.07 million, showing a -0.4% change from the prior-year quarter [4] - 'Revenue- Rentals' is expected to be $50.75 million, indicating a year-over-year increase of 7% [4] - 'Revenue- Partner revenue' is projected at $9.65 million, reflecting a -17.1% change year-over-year [4] - 'Revenue- Brokerage revenue' is estimated to reach $166.96 million, a +0.5% change from the year-ago quarter [5] Group 3: Transaction Estimates - Total 'Real estate services transactions' are expected to be 17.03 million, down from 17.43 million in the previous year [5] - 'Real estate services transactions - Partner' are projected at 3.67 million, compared to 4.35 million last year [6] - 'Real estate services transactions - Brokerage' should arrive at 13.3 million, slightly up from 13.08 million in the same quarter last year [8] Group 4: Key Metrics - The average number of lead agents is expected to be 1,717, down from 1,744 in the same quarter last year [6] - 'Real estate services revenue per transaction - Aggregate' is estimated at $10.46 million, compared to $10.20 million last year [7] - 'Monthly average visitors' are projected at 54.15 million, an increase from 51.31 million in the previous year [7] - 'Real estate services revenue per transaction - Partner' is expected to be $2.67 million, slightly down from $2.68 million last year [8] - 'Real estate services revenue per transaction - Brokerage' is forecasted to reach $12.61 million, compared to $12.70 million last year [9] Group 5: Market Performance - Redfin shares have shown a return of +7.3% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [9] - With a Zacks Rank 2 (Buy), Redfin is expected to outperform the overall market in the near future [9]

Since hitting a more than 52-week high of $15.29 on Sept. 18, real estate services stock Redfin Corp (NASDAQ:RDFN) has taken a step back on the charts. Shares are down 0.7% at $10.11 at last glance to extend an 18.2% quarterly deficit and breaching their year-to-date breakeven level. However, RDFN is still up 100% over the last 12 months, and this most recent dip has it trading near a historically bullish trendline.Per a study from Schaeffer's Senior Quantitative Analyst Rocky White, Redfin stock is within ...

Shares of the online real estate brokerage are on the move. Is it a buy? Redfin (RDFN -2.57%) has been on a roll recently. The online real estate brokerage has surged on hopes that falling mortgage rates will trigger a rebound in the housing market. The stock has doubled over the last three months as enthusiasm about a housing recovery has mounted, but is Redfin a buy now? To answer that question, we asked two of our contributors to weigh in with the bull and bear cases. First, let's hear the bull case. Mor ...

Although this real estate disruptor has more than doubled since midyear, it could have much more upside ahead. Redfin (RDFN -6.47%) has been one of the stock market's top performers recently, more than doubling over the past three months, both in anticipation of and in reaction to the Federal Reserve's rate cut. In this short video, I discuss why the recent movement in the stock could be just the starting point of an excellent period in Redfin's history. *Stock prices used were the morning prices of Sept. 2 ...

The real estate industry has been crushed under the weight of high interest rates, but its fortunes are about to change for the better. According to the Federal Home Loan Mortgage Corp. (Freddie Mac), the U.S. 30-year fixed mortgage rate hit 7.79% in October 2023, which was the highest level since 2000. It crushed the borrowing power of consumers, and it also made existing homeowners hesitant to sell for fear of abandoning their existing lower rate. As a result, high interest rates decimated the housing mar ...

Company Overview - Redfin (RDFN) shares increased by 25.7% in the last trading session, closing at $14.45, with a notable trading volume compared to normal sessions [1] - Over the past four weeks, the stock has gained 51.3% [1] - The rise in investor optimism is linked to a decline in mortgage rates, which is expected to boost second-home demand in the United States [1] Earnings Expectations - Redfin is projected to report a quarterly loss of $0.18 per share, reflecting a year-over-year decrease of 5.9% [2] - Expected revenues for the upcoming quarter are $280.79 million, which is a 4.4% increase from the same quarter last year [2] - The consensus EPS estimate for Redfin has been revised 6% lower in the last 30 days, indicating a negative trend in earnings estimate revisions [3] Industry Context - Redfin operates within the Zacks Real Estate - Operations industry, which includes other companies like Colliers International (CIGI) [3] - Colliers International's consensus EPS estimate remains unchanged at $1.49, representing a year-over-year increase of 25.2% [4] - Colliers International has a Zacks Rank of 3, similar to Redfin [4]

With interest rates expected to fall over the next 12 months, is now the perfect time to buy Redfin? Real estate stocks have faced an uphill battle ever since the Federal Reserve began raising interest rates in 2022. Increased interest rates have affected borrowing costs and the overall demand for real estate, leading to a challenging environment for real estate investors and homebuyers. Redfin (RDFN 5.36%) is one company that has faced significant challenges due to the sharp decline in housing activity. Th ...

Redfin Today RDFN Redfin $10.82 +0.39 (+3.74%) 52-Week Range $4.26 ▼ $11.80 Price Target $7.68 Add to Watchlist Residential real estate brokerage Redfin Co. NASDAQ: RDFN has been a disrupter in the finance sector, specifically in the residential real estate industry. The company has been losing money in the high interest rate and weak home-buying market. Sentiment hasn't been great, as evidenced by its 15.44% short interest. However, with the U.S. Federal Reserve expected to start its interest rate cut cycl ...

Group 1 - The real estate industry is undergoing a transformation that favors companies like Redfin, particularly due to lower overall commissions becoming the new norm [3][6] - Redfin's stock saw an increase of 11.4% following news of its strengthened position in the real estate sales business [1] - The National Association of Realtors (NAR) has implemented new rules regarding agents' commissions and disclosure requirements, which may lower agents' net commissions but also create opportunities for Redfin's cost-effective business model [2][3] Group 2 - Redfin announced that starting in late October, some agents will earn higher commissions, with a commission split of up to 75% and coverage of most business expenses under its Redfin Next program [4] - The company's competitive edge is being solidified in the evolving real estate market, as it is well-positioned to capitalize on the shift towards online house hunting and discounted net commissions [6][7] - Falling mortgage rates are contributing to a bullish outlook for Redfin, adding urgency to the investment opportunity [5][7]