February 24, 2021

SEATTLE, Feb. 24, 2021 /PRNewswire/ — Redfin Company (NASDAQ: RDFN) this day announced financial outcomes for the fourth quarter and chubby 365 days ended December 31, 2020. All financial measures, except otherwise eminent, are equipped on a GAAP basis and encompass inventory-essentially based fully compensation, depreciation and amortization, and expenses linked to actions taken in step with COVID-19.

Fourth Quarter 2020

Income elevated 5% 365 days-over-365 days to $244.5 million for the period of the fourth quarter. Unhealthy income changed into once $80.1 million, an magnify of 102% from $39.6 million within the fourth quarter of 2019. Proper property services nasty income changed into once $80.8 million, an magnify of 93% from $42.0 million within the fourth quarter of 2019. Proper property services nasty margin changed into once 41%, when when in contrast with 32% within the fourth quarter of 2019. Working expenses were $54.5 million, an magnify of 17% from $46.4 million within the fourth quarter of 2019. Working expenses were 22% of income, up from 20% within the fourth quarter of 2019.

Accumulate profits changed into once $14.0 million, when when in contrast with a get dangle of lack of $7.8 million within the fourth quarter of 2019. The dividend on our convertible most popular inventory changed into once $1.6 million. Accumulate profits attributable to classic inventory changed into once $12.2 million. Stock-essentially based fully compensation changed into once $11.2 million, up from $8.0 million within the fourth quarter of 2019. Depreciation and amortization changed into once $4.0 million, up from $2.9 million within the fourth quarter of 2019. Entire curiosity and diverse expenses changed into once $11.6 million, which included a $4.6 million loss on the extinguishment of debt and $6.8 million in non-cash curiosity expense which changed into once essentially linked to our convertible senior notes, when when in contrast with $1.0 million within the fourth quarter of 2019.

Accumulate profits per portion attributable to classic inventory, diluted, changed into once $0.11, when when in contrast with a get dangle of loss per portion, diluted, of $0.08 within the fourth quarter of 2019.

Fleshy Year 2020

Income elevated 14% 365 days-over-365 days to $886.1 million in 2020. Unhealthy income changed into once $232.1 million, an magnify of 61% from $144.1 million in 2019. Proper property services nasty income changed into once $234.1 million, an magnify of 56% from $150.4 million in 2019. Proper property services nasty margin changed into once 36%, when when in contrast with 29% in 2019. Working expenses were $231.3 million, an magnify of 4% from $223.3 million in 2019. Working expenses were 26% of income, down from 29% in 2019.

Accumulate loss changed into once $18.5 million, when when in contrast with a get dangle of lack of $80.8 million in 2019. The dividend on our convertible most popular inventory changed into once $4.5 million. Accumulate loss attributable to classic inventory changed into once $23.0 million. Stock-essentially based fully compensation changed into once $37.0 million, up from $27.8 million in 2019. Depreciation and amortization changed into once $14.6 million, up from $9.2 million in 2019. Entire curiosity and diverse expenses changed into once $19.3 million, which included a $4.6 million loss on the extinguishment of our 2023 convertible senior notes and $12.0 million in non-cash curiosity expense which changed into once essentially linked to our convertible senior notes, when when in contrast with $1.6 million in 2019.

Accumulate loss per portion attributable to classic inventory, diluted, changed into once $0.23, when when in contrast with a get dangle of loss per portion, diluted, of $0.88 in 2019.

“Revenues in our core commercial of brokering home gross sales elevated 51% within the fourth quarter, with nasty margins but again exceeding 40%,” talked about Redfin CEO Glenn Kelman. “Our mortgage commercial had even stronger outcomes, with 210% income disclose. We were the fastest-rising predominant true property online page, as home-investors engaging to a unique section of the country maintain an increasing selection of changed into to the Web to rep a true property agent. Since more than half of of all properties now sell in a bidding battle, our on-request of home-touring has become a truly powerful competitive serve for our clients, who ought to look for a listing either in-particular person or virtually earlier than diverse investors even understand it be for sale.”

Fourth Quarter Highlights

  • Reached market portion of 1.04% of U.S. unique home gross sales by charge within the fourth quarter of 2020, an magnify of .10 percentage aspects from the fourth quarter of 2019.(1)
  • Saved homebuyers and sellers over $54 million within the fourth quarter and over $185 million in 2020. This entails the financial savings Redfin presents investors thru the Redfin Refund and sellers thru Redfin’s decrease listing rate when when when in contrast with a 2.5% listing commission in most cases charged by historical agents.
  • Redfin’s mobile apps and online page reached a file of 44 million moderate month-to-month customers within the fourth quarter. For the 365 days, Redfin reached a file of more than 42 million moderate month-to-month customers, an magnify of 28% when when in contrast with 2019.
  • Persisted expansion of RedfinNow by launching in Sacramento, San Francisco and Seattle within the fourth quarter of 2020.
  • Conducted over 21,000 video tours within the fourth quarter. For the reason that birth of the pandemic in March, Redfin has considered a 137-fold magnify in month-to-month requests for video tours and a virtually 7-fold magnify in month-to-month views of 3D walkthroughs on Redfin.com.
  • Upgraded its instrument for clients, agents, partners, home services and mortgage groups, together with:
    • Collectively with flood anguish data to home listing pages to provide clients more data about particular particular person properties and their anguish components.
    • Collectively with Utter Discover admission to touring data to the Owner Dashboard, giving sellers and agents the flexibility to computer screen self-tours and watch investors’ ideas referring to the home.
    • Bettering the functionality, disappear and stability of Redfin Builder Instruments and Redfin Lender Instruments, instrument ragged by Redfin’s home services and mortgage organizations.
    • Rolling out a unique communique platform for Redfin partner agents to support them without direct join with clients, utilizing sooner response cases and better buyer experiences.
  • Launched Redfin Upward thrust, an employee-funded initiative to pork up charitable organizations which might perhaps well be constructing paths to homeownership for working-class families.

(1) We calculate the aggregate charge of U.S. home gross sales by multiplying the total assortment of U.S. unique home gross sales by the mean sale rate of these properties, each as reported by the National Affiliation of REALTORS®. We calculate our market portion by aggregating the home charge of brokerage and partner true property services transactions. Then, in show to tale for both the sell- and rob-facet components of each transaction, we divide that charge by two-cases the estimated combination charge of U.S. home gross sales.

Trade Outlook

The following forward-taking a look for statements replicate Redfin’s expectations as of February 24, 2021, and are area to essential uncertainty.

For the predominant quarter of 2021 we search data from:

  • Entire income between $249 million and $255 million, representing a 365 days-over-365 days disclose between 30% and 34% when when in contrast with the predominant quarter of 2020. Properties segment income between $77 million to $80 million is included within the steering equipped.
  • Accumulate loss is expected to be between $39 million and $36 million, when when in contrast with get dangle of lack of $60 million within the predominant quarter of 2020. This steering entails roughly $13.0 million of expected inventory-essentially based fully compensation, $4.5 million of expected depreciation and amortization, and $1.2 million of expected curiosity expense linked to our convertible senior notes and diverse credit responsibilities. Besides, we search data from to pay a quarterly dividend of 30,640 shares of classic inventory to our most popular stockholder.

Conference Name

Redfin will webcast a convention name to debate the outcomes at 1: 30 p.m. Pacific Time this day. The webcast will be birth to the public at http://investors.redfin.com. The webcast will stay readily accessible on the investor kinfolk online page for now not less than three months following the convention name.

Forward-Having a look for Statements

This press launch contains forward-taking a look for statements within the which implies of federal securities guidelines, together with our future operating outcomes, as described below Trade Outlook. We trust our expectations linked to those forward-taking a look for statements are cheap, however true outcomes might perhaps well even honest become materially diverse. For components that might perhaps also deliver off true outcomes to vary materially from the forward-taking a look for statements on this press launch, please watch the dangers and uncertainties acknowledged below the heading “Risk Elements” in our annual impart for the 365 days ended December 31, 2020, which is at once accessible on our Investor Family members online page at http://investors.redfin.com and on the SEC online page at www.sec.gov. All forward-taking a look for statements replicate our beliefs and assumptions preferrred as of the date of this press launch. We undertake no obligation to update forward-taking a look for statements to copy future events or conditions.

About Redfin

Redfin is a expertise-powered residential true property firm, redefining true property within the patron’s prefer in a commission-driven commercial. We attain this by integrating every step of the home making an strive to rep and promoting process and pairing our maintain agents with our maintain expertise, increasing a service that is quicker, better and fees less. We provide brokerage, iBuying, mortgage, and title services, and we also disappear the country’s #1 true property brokerage search area, providing a substantial amount of online instruments to customers, together with the Redfin Estimate. We impart of us making an strive to rep and promoting properties in over 95 markets in the US and Canada. Since our launch in 2006, we maintain got saved our clients virtually $1 billion and we maintain helped them rob or sell more than 310,000 properties rate more than $152 billion.

Redfin might perhaps well even honest put up updates about COVID-19’s affect on the U.S. residential true property commercial or its commercial on its firm weblog at www.redfin.com/weblog/true-property-data/. We support investors and others in our firm to review and subscribe to the details we put up on our firm weblog, as doubtless the most data might perhaps well even very properly be area matter.

Redfin-F

Redfin Company and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in hundreds, apart from portion and per portion quantities, unaudited)


Three Months Ended December 31,

Year Ended December 31,


2020

2019

2020

2019

Income






Service

$

204,452

$

134,128

$

674,345

$

539,288

Product

40,065

99,063

211,748

240,508

Entire income

244,517

233,191

886,093

779,796

Mark of income(1)






Service

122,642

93,183

437,484

390,504

Product

41,755

100,382

216,499

245,189

Entire charge of income

164,397

193,565

653,983

635,693

Unhealthy income

80,120

39,626

232,110

144,103

Working expenses






Abilities and model(1)

23,610

19,345

84,297

69,765

Advertising and marketing(1)

7,270

8,099

54,881

76,710

Regular and administrative(1)(2)

23,601

18,992

92,140

76,874

Entire operating expenses

54,481

46,436

231,318

223,349

Earnings (loss) from operations

25,639

(6,810)

792

(79,246)

Curiosity profits

215

1,341

2,074

7,146

Curiosity expense

(11,864)

(2,365)

(19,495)

(8,928)

Other profits (expense), get dangle of

45

51

(1,898)

223

Accumulate profits (loss)

$

14,035

$

(7,783)

$

(18,527)

$

(80,805)

Dividend on convertible most popular inventory

(1,640)

—

(4,454)

—

Undistributed earnings attributable to

participating securities

(242)

—

—

—

Accumulate profits (loss) attributable to classic

inventory—classic and diluted

$

12,153

$

(7,783)

$

(22,981)

$

(80,805)

Accumulate profits (loss) per portion attributable to

classic inventory—classic

$

0.12

$

(0.08)

$

(0.23)

$

(0.88)

Weighted moderate shares of classic inventory—

classic

102,176,459

92,486,944

98,574,529

91,583,533

Accumulate profits (loss) per portion attributable to

classic inventory—diluted

0.11

(0.08)

(0.23)

(0.88)

Weighted moderate shares of classic inventory—

diluted

109,461,342

92,486,944

98,574,529

91,583,533








Other total profits (loss)






Accumulate profits (loss)

$

14,035

$

(7,783)

$

(18,527)

$

(80,805)

International substitute translation adjustments

13

5

(3)

33

Unrealized kind (loss) on readily accessible-for-sale

securities

(110)

11

172

9

Entire total profits (loss)

$

13,938

$

(7,767)

$

(18,358)

$

(80,763)

(1) Comprises inventory-essentially based fully compensation as follows:



Three Months Ended December 31,

Twelve Months Ended December 31,


2020

2019

2020

2019

Mark of income

$

2,863

$

1,689

$

8,844

$

6,087

Abilities and model

4,828

3,701

16,564

12,362

Advertising and marketing

439

393

1,569

1,418

Regular and administrative

3,079

2,239

9,996

7,947

Entire

$

11,209

$

8,022

$

36,973

$

27,814

(2) Comprises enlighten and incremental costs linked to COVID-19 of $18 and $7,864, which might perhaps well be partially offset by $0 and $1,348 in employee retention credit allowed below the CARES Act, for the three and twelve months ended December 31, 2020, respectively.

Redfin Company and Subsidiaries

Consolidated Steadiness Sheets

(in hundreds, apart from portion and per portion quantities, unaudited)


December 31, 2020

December 31, 2019

Sources


Newest sources


Money and cash equivalents

$

925,276

$

234,679

Restricted cash

20,544

12,769

Non permanent investments

131,561

70,029

Accounts receivable, get dangle of of allowances for credit losses of $160 and $165

54,719

19,223

Inventory

49,158

74,590

Loans held for sale

42,539

21,985

Prepaid expenses

12,131

14,822

Other unique sources

4,898

3,496

Entire unique sources

1,240,826

451,593

Property and equipment, get dangle of

43,988

39,577

Like minded-of-utilize sources, get dangle of

44,149

52,004

Prolonged-term investments

11,922

30,978

Goodwill and intangibles, get dangle of

11,016

11,504

Other sources, noncurrent

8,619

10,557

Entire sources

$

1,360,520

$

596,213

Liabilities, mezzanine fairness and stockholders’ fairness


Newest liabilities


Accounts payable

$

5,644

$

2,122

Accumulated liabilities

69,460

38,022

Other payables

13,184

7,884

Warehouse credit facilities

39,029

21,302

Secured revolving credit facility

23,949

4,444

Convertible senior notes, get dangle of

22,482

—

Rent liabilities

11,973

11,408

Entire unique liabilities

185,721

85,182

Rent liabilities and deposits, noncurrent

49,339

59,869

Convertible senior notes, get dangle of, noncurrent

488,268

119,716

Payroll tax liabilities, noncurrent

6,812

—

Entire liabilities

730,140

264,767

Commitments and contingencies (Existing 7)


Series A convertible most popular inventory—par charge $0.001 per portion; 10,000,000 shares approved;

40,000 and nil shares issued and prominent, respectively

39,823

—

Stockholders’ fairness


Traditional inventory—par charge $0.001 per portion; 500,000,000 shares approved; 103,000,594 and

93,001,597 shares issued and prominent, respectively

103

93

Additional paid-in capital

860,556

583,097

Accumulated diverse total profits

211

42

Accumulated deficit

(270,313)

(251,786)

Entire stockholders’ fairness

590,557

331,446

Entire liabilities, mezzanine fairness and stockholders’ fairness

$

1,360,520

$

596,213




Redfin Company and Subsidiaries

Consolidated Statements of Money Flows

(in hundreds, unaudited)


Year Ended December 31,

2020

2019

Working Actions


Accumulate loss

$

(18,527)

$

(80,805)

Adjustments to reconcile get dangle of loss to get dangle of cash equipped by (ragged in) operating actions:




Depreciation and amortization

14,564

9,230

Stock-essentially based fully compensation

36,973

27,814

Amortization of debt nick rate and issuance costs

12,038

6,385

Non-cash rent expense

9,204

6,940

Impairment costs

2,063

—

Loss on repurchases and conversions of convertible senior notes

4,634

—

Accumulate kind on IRLCs, forward gross sales commitments and loans held for sale

(1,921)

(493)

Other

(349)

(663)

Alternate in sources and liabilities:




Accounts receivable, get dangle of

(35,496)

(3,861)

Inventory

25,432

(51,896)

Prepaid expenses and diverse sources

2,333

(3,293)

Accounts payable

2,086

(394)

Accumulated liabilities, diverse payables, and payroll tax liabilities, noncurrent

39,092

7,422

Rent liabilities

(11,312)

(7,209)

Deferred rent

—

1

Origination of loans held for sale

(677,310)

(395,354)

Proceeds from sale of loans originated as held for sale

657,763

378,566

Accumulate cash equipped by (ragged in) operating actions

61,267

(107,610)

Investing actions


Purchases of property and equipment

(14,686)

(15,533)

Purchases of investments

(198,172)

(136,265)

Sales of investments

7,887

11,486

Maturities of investments

147,852

24,400

Accumulate cash ragged in investing actions

(57,119)

(115,912)

Financing actions


Proceeds from the issuance of convertible most popular inventory, get dangle of of issuance costs

39,801

—

Proceeds from the issuance of classic inventory, get dangle of of issuance costs

69,701

—

Proceeds from the issuance of classic inventory pursuant to employee fairness plans

21,072

16,107

Tax payments linked to get dangle of portion settlements on restricted inventory fashions

(16,852)

(5,126)

Borrowings from warehouse credit facilities

662,278

388,586

Repayments to warehouse credit facilities

(644,551)

(372,017)

Borrowings from secured revolving credit facility

89,619

4,444

Repayments to secured revolving credit facility

(70,115)

—

Money paid for secured revolving credit facility issuance costs

(4)

(922)

Proceeds from issuance of convertible senior notes, get dangle of of issuance costs

647,486

—

Funds for repurchases and conversions of convertible senior notes

(108,061)

—

Vital payments below finance rent responsibilities

(221)

(72)

Proceeds from observe on providing

—

—

Other payables – deposits held in escrow

4,074

883

Accumulate cash equipped by financing actions

$

694,227

$

31,883

Originate of alternate rate adjustments on cash and cash equivalents

(3)

32

Accumulate alternate in cash, cash equivalents, and restricted cash

698,372

(191,607)

Money, cash equivalents, and restricted cash:




Foundation of period

247,448

439,055

Conclude of period

$

945,820

$

247,448

Redfin Company and Subsidiaries

Supplemental Financial Recordsdata and Trade Metrics

(unaudited)


Three Months Ended

Dec. 31

2020

Sep. 30

2020

Jun. 30,

2020

Mar. 31,

2020

Dec. 31,

2019

Sep. 30,

2019

Jun. 30,

2019

Mar. 31,

2019

Dec. 31,

2018

Monthly moderate company (in hundreds)

44,135

49,258

42,537

35,519

30,595

35,633

36,557

31,107

25,212

Proper property services transactions
















Brokerage

16,951

18,980

13,828

10,751

13,122

16,098

15,580

8,435

9,822

Partner

4,940

5,180

2,691

2,479

2,958

3,499

3,357

2,125

2,749

Entire

21,891

24,160

16,519

13,230

16,080

19,597

18,937

10,560

12,571

Proper property services income per transaction
















Brokerage

$

10,751

$

10,241

$

9,296

$

9,520

$

9,425

$

9,075

$

9,332

$

9,640

$

9,569

Partner

3,123

2,988

2,417

2,535

2,369

2,295

2,218

2,153

2,232

Aggregate

9,030

8,686

8,175

8,211

8,127

7,865

8,071

8,134

7,964


















Aggregate home charge of actual property

services transactions (in hundreds and hundreds)

$

11,478

$

12,207

$

7,576

$

6,098

$

7,588

$

9,157

$

8,986

$

4,800

$

5,825

U.S. market portion by charge

1.04

%

1.04

%

0.93

%

0.93

%

0.94

%

0.96

%

0.94

%

0.83

%

0.81

%

Income from top-10 Redfin markets as a

percentage of actual property services income

63

%

63

%

63

%

61

%

62

%

63

%

64

%

64

%

66

%

Sensible assortment of lead agents

1,981

1,820

1,399

1,826

1,526

1,579

1,603

1,503

1,419

Properties transactions

83

37

162

171

212

168

80

43

47

Properties income per transaction

474,690

513,648

445,578

462,563

467,276

477,167

498,847

497,044

459,663

Redfin Company and Subsidiaries

Supplemental Financial Recordsdata

(unaudited, in hundreds)


Three Months Ended December 31,

Year  Ended December 31,

2020

2019

2020

2019

Proper property services income






Brokerage income

$

182,244

$

123,671

$

607,513

496,480

Partner income

15,426

7,008

43,695

27,060

  Entire true property services income

197,670

130,679

651,208

523,540

Properties income

39,399

99,063

209,686

240,507

Other income

8,213

4,143

28,212

17,634

Intercompany eliminations

(765)

(693)

(3,013)

(1,885)

Entire income

$

244,517

$

233,192

$

886,093

$

779,796








Mark of income






Proper property services

$

116,835

$

88,703

$

417,140

$

373,150

Properties

41,275

100,382

214,382

245,189

Other

7,052

5,174

25,474

19,239

Intercompany eliminations

(765)

(693)

(3,013)

(1,885)

Entire charge of income

$

164,397

$

193,566

$

653,983

$

635,693








Unhealthy income by segment






Proper property services

$

80,835

$

41,976

$

234,068

$

150,390

Properties

(1,876)

(1,319)

(4,696)

(4,682)

Other

1,161

(1,031)

2,738

(1,605)

Entire nasty income

$

80,120

$

39,626

$

232,110

$

144,103








Unhealthy margin (percentage of income)






Proper property services

40.9

%

32.1

%

35.9

%

28.7

%

Properties

(4.8)

(1.3)

(2.2)

(1.9)

Other

14.1

(24.9)

9.7

(9.1)

Entire nasty margin

32.8

17.0

26.2

18.5

Cision Peek customary order material to download multimedia: http://www.prnewswire.com/data-releases/redfin-reports-fourth-quarter-and-chubby-365 days-2020-financial-outcomes-301234908.html

SOURCE Redfin

Investor Family members, Meg Nunnally, 206-576-8132, [email protected]; Public Family members, Mariam Sughayer, 206-876-1322, [email protected]