Redfin(US:RDFN)2025-02-27 21:10Financial 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].