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 ...

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Core Insights - The real estate technology company Redfin has reported weak third-quarter earnings, primarily attributed to the challenging real estate market rather than any internal issues [1] Company Performance - Redfin's recent earnings report indicates that the company's performance is suffering due to external market conditions [1] - A specific number in the earnings report raises concerns, suggesting potential underlying issues that may need to be addressed [1]

Core Viewpoint - Redfin Corp (NASDAQ:RDFN) has experienced a significant decline of over 22% since the beginning of November, primarily due to a downgrade from Goldman Sachs and ongoing challenges in the real estate market [1][2]. Group 1: Stock Performance - RDFN is currently down 4.7% at $7.98 following a downgrade to "sell" from "neutral" by Goldman Sachs, citing issues such as home affordability and industry competition [1]. - The stock is on track for its fifth consecutive drop, with a total decline of 22.8% since the start of November, falling below its year-to-date breakeven level [2]. - The $8 price level, which previously acted as a ceiling from May to July, may now serve as a support level for the stock [2]. Group 2: Market Sentiment and Options Trading - Despite a 36% quarterly loss, options traders are showing interest in calls, with 23,188 calls purchased compared to 4,953 puts in the past two weeks on major exchanges [3]. - The Schaeffer's Volatility Index (SVI) for Redfin stock is at 81%, indicating low volatility expectations among options traders, ranking in the low 17th percentile of its annual range [4].

Core Insights - Redfin missed profit and sales estimates, leading to a decline in its U.S. market share [1] - The company reduced its full-year adjusted EBITDA guidance significantly [1] Financial Performance - Redfin reported a third-quarter loss of $33.8 million, or $0.28 per share, compared to a loss of $19 million, or $0.17 per share a year ago [1] - Revenue increased by 3.4% to $278 million, but this was below expectations [1] - Adjusted EBITDA fell to $3.9 million from $7.7 million in 2023, a reduction of nearly 50% [1] Market Share and Sales - Redfin's market share of U.S. existing home sales by units decreased to 0.76% from 0.78% a year ago [1] - CEO Glenn Kelman indicated that August and September sales were $7 million below expectations [1] Guidance and Costs - The company revised its full-year adjusted EBITDA loss forecast to between $15 million and $22 million, down from a previous expectation of breakeven [1] - Redfin incurred unexpected costs of $2 million related to changes in agent compensation and an additional $1 million for integrating its rental property program [1]

For the quarter ended September 2024, Redfin (RDFN) reported revenue of $278.02 million, up 3.4% over the same period last year. EPS came in at -$0.28, compared to -$0.17 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $280.21 million, representing a surprise of -0.78%. The company delivered an EPS surprise of -40.00%, with the consensus EPS estimate being -$0.20.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

Redfin (RDFN) came out with a quarterly loss of $0.28 per share versus the Zacks Consensus Estimate of a loss of $0.20. This compares to loss of $0.17 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -40%. A quarter ago, it was expected that this real estate broker would post a loss of $0.27 per share when it actually produced a loss of $0.23, delivering a surprise of 14.81%.Over the last four quarters, the company has surpasse ...

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]