November 05, 2020

SEATTLE, Nov. 5, 2020 /PRNewswire/ — Redfin Corporation (NASDAQ: RDFN) on the present time launched financial results for the third quarter ended September 30, 2020. All financial measures, except otherwise well-known, are supplied on a GAAP basis and encompass stock-basically based totally compensation, depreciation and amortization, and prices linked to actions taken basically based totally on COVID-19.

Revenue lowered 1% one year-over-one year to $237 million within the midst of the third quarter. Contaminated earnings became $93 million, an develop of 74% from $53 million within the third quarter of 2019. True property services and products defective earnings became $92 million, an develop of 70% from $54 million within the third quarter of 2019. True property services and products defective margin became 44%, compared with 35% within the third quarter of 2019. Working prices like been $56 million, an develop of 22% from $46 million within the third quarter of 2019. Working prices like been 24% of earnings, up from 19% within the third quarter of 2019.

Net earnings became $34.2 million, compared with fetch earnings of $6.8 million within the third quarter of 2019. Dividend on our convertible most popular stock became $1.5 million within the third quarter. Net earnings attributable to overall stock became $32.0 million. Inventory-basically based totally compensation became $11.3 million, up from $7.5 million within the third quarter of 2019. Depreciation and amortization became $3.7 million, up from $2.6 million within the third quarter of 2019. Passion earnings became $0.3 million and ardour expense became $2.5 million, compared with $1.6 million and $2.3 million, respectively, within the third quarter of 2019. Reveal and incremental prices linked to COVID-19 like been $0.3 million and are integrated in most cases and administrative prices.

Net earnings per allotment attributable to overall stock, diluted, became $0.30, compared with fetch earnings per allotment, diluted, of $0.07 within the third quarter of 2019.

“Redfin’s rising allotment of North The usa’s online precise property viewers, coupled with a solid housing market, has generated seek data from quicker than we are going to recruit agents, lenders and partners,” said Redfin CEO Glenn Kelman. “Our market allotment good points like resumed, and appear to be accelerating. Our mortgage trade generated its first quarterly defective earnings. It has taken us more than a decade to originate the expertise and the extraordinary community of local agents to let folk tour practically any home within the marketplace in practically any city in The usa, almost or in person. This functionality became a consolation for folk nonetheless at concern of use a ragged agent for a inappropriate-city transfer. Nevertheless for the hundreds and hundreds of American citizens now free to transfer any place within the nation, that diminutive Redfin touring button on their cell-phone camouflage has change into the passport to a brand unusual lifestyles.”

Third Quarter Highlights

  • Reached market allotment of 1.04% of U.S. existing home sales by establish within the third quarter of 2020, an develop of .08 proportion ingredients from the third quarter of 2019.(1)
  • Saved homebuyers and sellers over $61 million within the third quarter of 2020. This contains the savings Redfin gives investors thru the Redfin Refund and sellers thru Redfin’s decrease list rate when compared with a 2.5% list rate.
  • Grew guests to our web location and cell utility by 38% compared with the third quarter of 2019.
  • Kicked off a huge hiring effort to meet surging person seek data from and welcomed over 400 unusual workers to Redfin within the third quarter.
  • Conducted practically 21,000 video excursions. At the same time as the majority of Redfin consumers like resumed in-person touring, roughly 9% of third quarter tour requests like been for video excursions, a signal Redfin’s virtual brokerage capabilities will almost definitely be a lengthy-term aggressive advantage even after the pandemic subsides.
  • Launched RedfinNow in Palm Springs. The company has now resumed RedfinNow gives in 11 of 13 markets and has persisted to extend to additional markets within the fourth quarter.
  • Created a brand unusual Home Sale Consultant characteristic to better wait on prospects navigate their home promoting alternatives at Redfin, whether or no longer they clutch to list within the marketplace with a local Redfin agent or sell at once to RedfinNow.
  • Elevated the proportion of Redfin workers who are folk of colour from 31% in June to 32% in September.
  • Appointed Kerry D. Chandler, an experienced HR govt, to the Redfin Board of Directors.

(1) We calculate the aggregate establish of U.S. home sales by multiplying the complete series of U.S. existing home sales by the imply sale establish of these properties, each and each as reported by the National Affiliation of REALTORS®. We calculate our market allotment by aggregating the home establish of brokerage and accomplice precise property services and products transactions. Then, in disclose to legend for both the sell- and buy-aspect ingredients of each and each transaction, we divide that establish by two-cases the estimated aggregate establish of U.S. home sales.

Commerce Outlook

The following forward-having a take into legend statements replicate Redfin’s expectations as of November 5, 2020, and are subject to monumental uncertainty.

For the fourth quarter of 2020 we demand:

  • Total earnings between $226 million and $233 million, representing a one year-over-one year decrease between 3% and zero% compared with the fourth quarter of 2019. Properties section earnings between $31 million and $34 million is integrated within the guidance offered.
  • Net earnings between $2 million and $5 million, compared with fetch loss of $7.8 million within the fourth quarter of 2019. This guidance contains roughly $10.5 million of anticipated stock-basically based totally compensation, $4.2 million of anticipated depreciation and amortization, and $7.5 million of anticipated ardour expense linked with our convertible senior notes and totally different credit rating tasks. This guidance also contains roughly $8.1 million of an anticipated one-time, non-money expense linked with the repurchase of a fraction of our convertible senior notes due 2023. Net earnings attributable to overall stock will encompass the price of dividend on our convertible most popular stock, which we demand to pay in shares of our overall stock.

Conference Call

Redfin will webcast a convention call to focus on about the implications at 1: 30 p.m. Pacific Time on the present time. The webcast will almost definitely be birth to the general public at http://traders.redfin.com. The webcast will remain on hand on the investor relatives web location for on the very least three months following the convention call.

Forward-Having a take into legend Statements

This press birth contains forward-having a take into legend statements within the that strategy of federal securities laws, including our future working results, as described below Commerce Outlook. We assume our expectations linked to these forward-having a take into legend statements are life like, but staunch results might presumably flip out to be materially totally different. For factors that might presumably cause staunch results to fluctuate materially from the forward-having a take into legend statements on this press birth, please discover relating to the hazards and uncertainties recognized below the heading “Possibility Components” in our annual document for the one year ended December 31, 2019, as supplemented by our quarterly document for the quarter ended September 30, 2020, both of that are on hand on our Investor Family members web location at http://traders.redfin.com and on the SEC web location at www.sec.gov. All forward-having a take into legend statements replicate our beliefs and assumptions only as of the date of this press birth. We undertake no responsibility to change forward-having a take into legend statements to repeat future events or conditions.

About Redfin

Redfin is a expertise-powered residential precise property company, redefining precise property within the person’s resolve on in a rate-pushed trade. We non-public this by integrating each and each step of the home attempting to search out and promoting process and pairing our like agents with our like expertise, developing a service that is quicker, better and prices much less. We provide brokerage, iBuying, mortgage, and title services and products, and we also bustle the nation’s #1 precise property brokerage search location, providing a huge selection of online instruments to consumers, including the Redfin Estimate. We signify folk attempting to search out and promoting properties in over 90 markets in the United States and Canada. Since our birth in 2006, now we like got saved our prospects over $800 million and now we like helped them buy or sell more than 235,000 properties price more than $115 billion.

Redfin might presumably post updates about COVID-19’s influence on the U.S. residential precise property trade or its trade on its company weblog at www.redfin.com/weblog/precise-property-data/. We lend a hand traders and others making an allowance for our company to verify and subscribe to the suggestions we post on our company weblog, as one of the important suggestions might presumably be subject matter.

Redfin-F

Redfin Corporation and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in hundreds, excluding allotment and per allotment portions, unaudited)


Three Months Ended September 30,

9 Months Ended September 30, 2020

2020

2019

2020

2019

Revenue






Carrier

$

217,280

$

158,519

$

469,893

$

405,160

Product

19,636

80,164

171,683

141,445

Total earnings

236,916

238,683

641,576

546,605

Save of earnings(1)






Carrier

122,583

104,397

314,842

297,320

Product

21,261

80,909

174,744

144,807

Total establish of earnings

143,844

185,306

489,586

442,127

Contaminated earnings

93,072

53,377

151,990

104,478

Working prices






Technology and development(1)

22,452

18,801

60,687

50,421

Advertising(1)

12,421

8,361

47,611

68,611

Fashioned and administrative(1)(2)

21,190

18,779

68,539

57,881

Total working prices

56,063

45,941

176,837

176,913

Earnings (loss) from operations

37,009

7,436

(24,847)

(72,435)

Passion earnings

319

1,576

1,859

5,804

Passion expense

(2,522)

(2,274)

(7,631)

(6,564)

Varied earnings (expense), fetch

(640)

44

(1,943)

172

Net earnings (loss)

$

34,166

$

6,782

$

(32,562)

$

(73,023)

Dividend on convertible most popular stock

(1,530)

—

(2,814)

—

Undistributed earnings attributable to taking part securities

(653)

—

—

—

Net earnings (loss) attributable to overall stock—overall and diluted

$

31,983

$

6,782

$

(35,376)

$

(73,023)

Net earnings (loss) per allotment attributable to overall stock—overall

$

0.32

$

0.07

$

(0.36)

$

(0.80)

Weighted common shares of overall stock—overall

99,840,144

91,994,731

97,365,122

91,279,086

Net earnings (loss) per allotment attributable to overall stock—diluted

0.30

0.07

(0.36)

(0.80)

Weighted common shares of overall stock—diluted

107,607,711

97,171,270

97,365,122

91,279,086

…………………………………………………………………..




.




Varied complete earnings (loss)






Net earnings (loss)

$

34,166

$

6,782

$

(32,562)

$

(73,023)

International currencies translation adjustments

6

(10)

(16)

28

Unrealized succeed in (loss) on on hand-for-sale securities

(139)

(8)

282

(2)

Total complete earnings (loss)

$

34,033

$

6,764

$

(32,296)

$

(72,997)

(1) Comprises stock-basically based totally compensation as follows:


Three Months Ended September 30,

9 Months Ended September 30,

2020

2019

2020

2019

Save of earnings

$

2,574

$

1,605

$

5,981

$

4,398

Technology and development

4,964

3,320

11,736

8,661

Advertising

403

390

1,130

1,025

Fashioned and administrative

3,407

2,195

6,917

5,708

Total

$

11,348

$

7,510

$

25,764

$

19,792

(2) Comprises whine and incremental prices linked to COVID-19 of $321 and $7,846, that are in part offset by $56 and $1,348 in employee retention credits allowed below the CARES Act, for the three and 9 months ended September 30, 2020, respectively.

Redfin Corporation and Subsidiaries

Consolidated Steadiness Sheets

(in hundreds, excluding allotment and per allotment portions, unaudited)


September 30, 2020

December 31, 2019

Sources


Fresh sources


Money and money equivalents

$

371,573

$

234,679

Restricted money

16,393

12,769

Rapid-term investments

129,809

70,029

Accounts receivable, fetch

41,085

19,223

Inventory

24,993

74,590

Loans held within the marketplace

41,921

21,985

Pay as you trot prices

7,698

14,822

Varied most standard sources

5,189

3,496

Total most standard sources

638,661

451,593

Property and equipment, fetch

42,210

39,577

Staunch-of-use sources, fetch

45,392

52,004

Long-term investments

17,072

30,978

Goodwill and intangibles, fetch

11,138

11,504

Varied non-most standard sources

8,776

10,557

Total sources

$

763,249

$

596,213

Liabilities, mezzanine equity and stockholders’ equity


Fresh liabilities


Accounts payable

$

3,375

$

2,122

Accrued liabilities

57,517

38,022

Varied payables

10,550

7,884

Warehouse credit rating facilities

40,308

21,302

Secured revolving credit rating facility

14,923

4,444

Convertible senior notes, fetch

124,495

—

Fresh rent liabilities

11,682

11,408

Total most standard liabilities

262,850

85,182

Non-most standard rent liabilities and deposits

51,597

59,869

Convertible senior notes, fetch

—

119,716

Non-most standard payroll tax liabilities

8,711

—

Total liabilities

323,158

264,767

Commitments and contingencies


Sequence A convertible most popular stock—par establish $0.001 per allotment; 10,000,000 shares authorized; 40,000 and no shares issued and prominent, respectively

39,812

—

Stockholders’ equity


Fashioned stock—par establish $0.001 per allotment; 500,000,000 shares authorized; 100,241,416 and 93,001,597 shares issued and prominent, respectively

100

93

Extra paid-in capital

684,219

583,097

Accrued totally different complete earnings

308

42

Accrued deficit

(284,348)

(251,786)

Total stockholders’ equity

400,279

331,446

Total liabilities, mezzanine equity and stockholders’ equity

$

763,249

$

596,213




Redfin Corporation and Subsidiaries

Consolidated Statements of Money Flows

(in hundreds, unaudited)


9 Months Ended September 30,

2020

2019

Working Actions


Net loss

$

(32,562)

$

(73,023)

Adjustments to reconcile fetch loss to fetch money offered by (outmoded in) working activities:




Depreciation and amortization

10,581

6,366

Inventory-basically based totally compensation

25,764

19,792

Amortization of debt carve establish and issuance prices

5,254

4,674

Non-money rent expense

6,821

4,727

Impairment prices

2,063

—

Varied

(693)

(401)

Replace in sources and liabilities:




Accounts receivable, fetch

(21,862)

(9,071)

Inventory

49,597

(82,766)

Pay as you trot prices and totally different sources

5,168

(82)

Accounts payable

851

579

Accrued liabilities, totally different payables, and non-most standard payroll tax liabilities

28,469

18,994

Rent liabilities

(8,368)

(5,095)

Origination of loans held within the marketplace

(479,153)

(285,182)

Proceeds from sale of loans originated as held within the marketplace

459,605

267,850

Net money offered by (outmoded in) working activities

51,535

(132,638)

Investing activities


Purchases of property and equipment

(10,391)

(12,821)

Purchases of investments

(135,118)

(106,063)

Sales of investments

6,583

1,005

Maturities of investments

82,772

4,900

Net money outmoded in investing activities

(56,154)

(112,979)

Financing activities


Proceeds from the issuance of convertible most popular stock, fetch of issuance prices

39,801

—

Proceeds from the issuance of overall stock, fetch of issuance prices

69,701

—

Proceeds from the issuance of shares due to employee equity plans

15,119

10,869

Tax funds linked to fetch allotment settlements on restricted stock objects

(10,987)

(2,856)

Borrowings from warehouse credit rating facilities

473,283

280,129

Repayments to warehouse credit rating facilities

(454,277)

(262,875)

Borrowings from secured revolving credit rating facility

57,378

—

Repayments to secured revolving credit rating facility

(46,899)

—

Varied payables—deposits held in escrow

2,097

637

Significant funds for finance rent tasks

(59)

—

Money paid for debt issuance prices

(4)

(152)

Net money offered by financing activities

145,153

25,752

Plan of exchange rate adjustments on money and money equivalents

(16)

28

Net exchange in money, money equivalents, and restricted money

140,518

(219,837)

Money, money equivalents, and restricted money:




Beginning of length

247,448

439,055

Pause of length

$

387,966

$

219,218

Redfin Corporation and Subsidiaries

Supplemental Financial Knowledge and Commerce Metrics

(unaudited)


Three Months Ended

Sep. 30,

2020

Jun. 30,

2020

Mar. 31,

2020

Dec. 31,

2019

Sep. 30,

2019

Jun. 30,

2019

Mar. 31,

2019

Dec. 31,

2018

Sep. 30,

2018

Month-to-month common guests (in hundreds)

49,258

42,537

35,519

30,595

35,633

36,557

31,107

25,212

29,236

True property services and products transactions
















Brokerage

18,980

13,828

10,751

13,122

16,098

15,580

8,435

9,822

12,876

Accomplice

5,180

2,691

2,479

2,958

3,499

3,357

2,125

2,749

3,333

Total

24,160

16,519

13,230

16,080

19,597

18,937

10,560

12,571

16,209

True property services and products earnings per transaction
















Brokerage

$

10,241

$

9,296

$

9,520

$

9,425

$

9,075

$

9,332

$

9,640

$

9,569

$

9,227

Accomplice

2,988

2,417

2,535

2,369

2,295

2,218

2,153

2,232

2,237

Aggregate

8,686

8,175

8,211

8,127

7,865

8,071

8,134

7,964

7,790


















Aggregate home establish of precise property services and products transactions (in hundreds and hundreds)

$

12,207

$

7,576

$

6,098

$

7,588

$

9,157

$

8,986

$

4,800

$

5,825

$

7,653

U.S. market allotment by establish

1.04

%

0.93

%

0.93

%

0.94

%

0.96

%

0.94

%

0.83

%

0.81

%

0.85

%

Revenue from top-10 Redfin markets as a proportion of precise property services and products earnings

63

%

63

%

61

%

62

%

63

%

64

%

64

%

66

%

66

%

Life like series of lead agents

1,820

1,399

1,826

1,526

1,579

1,603

1,503

1,419

1,397

Redfin Corporation and Subsidiaries

Supplemental Financial Knowledge

(unaudited, in hundreds)


Three Months Ended September 30,

9 Months Ended September 30,

2020

2019

2020

2019

True property services and products earnings






Brokerage earnings

$

194,375

$

146,096

$

425,269

$

372,809

Accomplice earnings

15,478

8,030

28,269

20,053

  Total precise property services and products earnings

209,853

154,126

453,538

392,862

Properties earnings

19,005

80,164

170,287

141,445

Varied earnings

8,503

5,161

19,999

13,490

Intercompany eliminations

(445)

(768)

(2,248)

(1,192)

Total earnings

$

236,916

$

238,683

$

641,576

$

546,605








Save of earnings






True property services and products

$

117,944

$

100,048

$

300,305

$

284,447

Properties

20,460

80,909

173,107

144,807

Varied

5,885

5,117

18,422

14,065

Intercompany eliminations

(445)

(768)

(2,248)

(1,192)

Total establish of earnings

$

143,844

$

185,306

$

489,586

$

442,127








Contaminated earnings by section






True property services and products

$

91,909

$

54,078

$

153,233

$

108,415

Properties

(1,455)

(745)

(2,820)

(3,362)

Varied

2,618

44

1,577

(575)

Total defective earnings

$

93,072

$

53,377

$

151,990

$

104,478








Contaminated margin (proportion of earnings)






True property services and products

43.8

%

35.1

%

33.8

%

27.6

%

Properties

(7.7)

(0.9)

(1.7)

(2.4)

Varied

30.8

0.9

7.9

(4.3)

Total defective margin

39.3

22.4

23.7

19.1

Cision Be taught about fashioned whine to gain multimedia: http://www.prnewswire.com/data-releases/redfin-reviews-third-quarter-2020-financial-results-301167383.html

SOURCE Redfin

Investor Family members: Shikher Mathur, 206-576-8610, [email protected]; Public Family members: Mariam Sughayer, 206-876-1322, [email protected]