Redfin(RDFN) - 2024 Q4 - Annual Results

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]