Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Redfin Reports Fourth Quarter and Full Year 2021 Financial Results By: Redfin via Business Wire February 17, 2022 at 16:01 PM EST Redfin Corporation (NASDAQ: RDFN) today announced results for its fourth quarter and full year ended December 31, 2021. Fourth Quarter 2021 Fourth quarter revenue was $643.1 million, an increase of 163% compared to the fourth quarter of 2020. Gross profit was $108.0 million, an increase of 35% year-over-year. Real estate services gross profit was $75.2 million, a decrease of 7% year-over-year, and real estate services gross margin was 33%, compared to 41% in the fourth quarter of 2020. Net loss was $27.0 million, compared to a net income of $14.0 million in the fourth quarter of 2020. Net loss attributable to common stock was $28.4 million. Net loss per share attributable to common stock, diluted, was $0.27, compared to net income per share, diluted, of $0.11 in the fourth quarter of 2020. Full Year 2021 Full year revenue was $1,922.8 million, an increase of 117% year-over-year. Gross profit was $403.8 million, an increase of 74% year-over-year. Real estate services gross profit was $300.0 million, an increase of 28% year-over-year, and real estate services gross margin was 33%, compared to 36% in 2020. Net loss was $109.6 million, compared to a net loss of $18.5 million in 2020. Net loss attributable to common stock was $116.9 million. Net loss per share attributable to common stock, diluted, was $1.12, compared to a net loss per share, diluted, of $0.23 in 2020. “Fourth-quarter revenues and net income exceeded our expectations,” said Redfin CEO Glenn Kelman. “More importantly, Redfin is broadening its sources of customer value and corporate income, with title, mortgage, and iBuying now on track to generate gross profits, after years of being subsidized by our brokerage. Entering an uncertain market, Redfin’s pricing power and on-demand service will let us take share and improve operating margins.” Fourth Quarter Highlights Reached market share of 1.15% of U.S. existing home sales by value in the fourth quarter of 2021, an increase of 11 basis points from the fourth quarter of 2020.(1) Saved homebuyers and sellers over $77 million in the fourth quarter and over $288 million in 2021. This includes the savings Redfin offers buyers through the Redfin Refund and sellers through Redfin’s lower listing fee when compared to a 2.5% listing commission typically charged by traditional agents. Redfin’s mobile apps and website reached nearly 45 million average monthly users in the fourth quarter. For the year, Redfin reached a record of more than 47 million average monthly users, an increase of 10% compared to 2020. Expanded brokerage services into Big Bear, California; Ocean City, Maryland; and Ulster County, New York, furthering Redfin’s presence in popular vacation home destinations. Launched RedfinNow in the Minneapolis metro area, reaching a total of 30 markets. Confirmed Redfin sells homes faster and for more money than other brokerages for the 6th year in a row. Nationwide Redfin listings sold about 5 days faster and for $1,600 more than comparable listings from other brokerages according to a third-party study that we commissioned. Welcomed the inaugural class of 32 Redfin agents to our Career Accelerator pilot program, bringing professionals with a diversity of backgrounds to our Seattle and Washington, D.C. teams. Since December 2020, raised more than $1 million to build paths to homeownership for working families through Redfin Rise, an employee funded non-profit partnership. Delivered improved software for customers, agents, partners and renovations staff including: New search filters for customers to tailor the home search including pet friendliness and Walk Score. On-the-go tour scheduling for Redfin agents via Mobile Agent Tools. Speed improvements that help customers move quickly in a competitive market, including faster listing notifications and identifying Hot Homes that are likely to sell quickly within 5 minutes of being listed. SharePlay feature that lets buyers house-hunt together via FaceTime. Automated resale forecasting and renovation timeline model for RedfinNow’s investment and renovation teams. Subsequent to the fourth quarter, launched our annual media campaign on February 5: Welcome to the Housing Market and Redfin Knows What You Like. (1) We calculate our market share by aggregating the home value of brokerage and partner real estate services transactions. Then, in order to account for both the sell- and buy-side components of each transaction, we divide that value by two-times the estimated aggregate value of U.S. home sales. We calculate the aggregate value of U.S. home sales by multiplying the total number of U.S. existing home sales by the mean sale price of these homes, each as reported by the National Association of REALTORS®. Business Outlook The following forward-looking statements reflect Redfin's expectations as of February 17, 2022, and are subject to substantial uncertainty. For the first quarter of 2022 we expect: Total revenue between $535 million and $560 million, representing a year-over-year growth between 99% and 109% compared to the first quarter of 2021. Included within total revenue are real estate services segment revenue between $165 million and $171 million, properties segment revenue between $330 million to $350 million, rentals revenue between $37 million and $38 million, and mortgage revenue of $3 million. Total net loss is expected to be between $122 million and $115 million, compared to net loss of $36 million in the first quarter of 2021. RentPath’s contribution to the net loss is expected to be approximately $19 million. This guidance includes approximately $45 million in total marketing expenses, $19 million of stock-based compensation, $15 million of depreciation and amortization, and $5 million of net interest expense. In addition, we expect to pay a quarterly dividend of 30,640 shares of common stock to our preferred stockholder. Conference Call Redfin will webcast a conference call to discuss the results at 1:30 p.m. Pacific Time today. The webcast will be open to the public at http://investors.redfin.com. The webcast will remain available on the investor relations website for at least three months following the conference call. Forward-Looking Statements This press release contains forward-looking statements within the meaning of federal securities laws, including our future operating results, as described under Business Outlook. We believe our expectations related to these forward-looking statements are reasonable, but actual results may turn out to be materially different. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our annual report for the year ended December 31, 2021, which is available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. About Redfin Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people. Redfin-F Redfin Corporation and Subsidiaries Consolidated Balance Sheets (in thousands, except share and per share amounts, unaudited) December 31, 2021 2020 Assets Current assets Cash and cash equivalents $ 591,003 $ 925,276 Restricted cash 127,278 20,544 Short-term investments 33,737 131,561 Accounts receivable, net of allowances for credit losses of $1,298 and $160 69,594 54,719 Inventory 358,221 49,158 Loans held for sale 35,759 42,539 Prepaid expenses 22,948 12,131 Other current assets 7,524 4,898 Total current assets 1,246,064 1,240,826 Property and equipment, net 58,671 43,988 Right-of-use assets, net 54,200 44,149 Long-term investments 54,828 11,922 Goodwill 409,382 9,186 Intangible assets, net 185,929 1,830 Other assets, noncurrent 12,898 8,619 Total assets $ 2,021,972 $ 1,360,520 Liabilities, mezzanine equity, and stockholders' equity Current liabilities Accounts payable $ 12,546 $ 5,644 Accrued and other liabilities 118,122 82,644 Warehouse credit facilities 33,043 39,029 Secured revolving credit facility 199,781 23,949 Convertible senior notes, net 23,280 22,482 Lease liabilities 15,040 11,973 Total current liabilities 401,812 185,721 Lease liabilities, noncurrent 55,222 49,339 Convertible senior notes, net, noncurrent 1,214,017 488,268 Payroll tax liabilities, noncurrent — 6,812 Deferred tax liabilities 1,201 0 Total liabilities 1,672,252 730,140 Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 and 40,000 shares issued and outstanding at December 31, 2021 and 2020, respectively 39,868 39,823 Stockholders’ equity Common stock—par value $0.001 per share; 500,000,000 shares authorized; 106,308,767 and 103,000,594 shares issued and outstanding at December 31, 2021 and 2020, respectively 106 103 Additional paid-in capital 682,084 860,556 Accumulated other comprehensive (loss) income (174 ) 211 Accumulated deficit (372,164 ) (270,313 ) Total stockholders’ equity 309,852 590,557 Total liabilities, mezzanine equity, and stockholders’ equity $ 2,021,972 $ 1,360,520 Redfin Corporation and Subsidiaries Consolidated Statements of Comprehensive Loss (in thousands, except share and per share amounts, unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Revenue Service $ 265,992 $ 204,452 $ 1,042,112 $ 674,345 Product 377,065 40,065 880,653 211,748 Total revenue 643,057 244,517 1,922,765 886,093 Cost of revenue(1) Service 161,780 122,642 648,660 437,484 Product 373,253 41,755 870,285 216,499 Total cost of revenue 535,033 164,397 1,518,945 653,983 Gross profit 108,024 80,120 403,820 232,110 Operating expenses Technology and development(1) 43,894 23,610 156,718 84,297 Marketing(1) 22,397 7,270 138,740 54,881 General and administrative(1) 66,962 23,601 218,315 92,140 Total operating expenses 133,253 54,481 513,773 231,318 (Loss) income from operations (25,229 ) 25,639 (109,953 ) 792 Interest income 163 215 635 2,074 Interest expense (3,939 ) (11,864 ) (11,762 ) (19,495 ) Income tax benefit 744 — 6,107 — Other income (expense), net 1,259 45 5,360 (1,898 ) Net (loss) income $ (27,002 ) $ 14,035 $ (109,613 ) $ (18,527 ) Dividend on convertible preferred stock (1,394 ) (1,640 ) (7,269 ) (4,454 ) Undistributed earnings attributable to participating — (242 ) — — Net (loss) income attributable to common stock—basic and diluted $ (28,396 ) $ 12,153 $ (116,882 ) $ (22,981 ) Net (loss) income per share attributable to common stock—basic $ (0.27 ) $ 0.12 $ (1.12 ) $ (0.23 ) Weighted average shares of common stock—basic 105,739,395 102,176,459 104,683,460 98,574,529 Net (loss) income per share attributable to common stock—diluted $ (0.27 ) $ 0.11 $ (1.12 ) $ (0.23 ) Weighted average shares of common stock—diluted 105,739,395 109,461,342 104,683,460 98,574,529 Net (loss) income $ (27,002 ) $ 14,035 $ (109,613 ) $ (18,527 ) Other comprehensive (loss) income Foreign currency translation adjustments 4 13 6 (3 ) Unrealized gain (loss) on available-for-sale securities 217 (110 ) 379 172 Total comprehensive (loss) income (26,781 ) 13,938 (109,228 ) (18,358 ) (1) Includes stock-based compensation as follows: Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Cost of revenue $ 3,595 $ 2,863 $ 13,614 $ 8,844 Technology and development 6,288 4,828 23,275 16,564 Marketing 736 439 2,350 1,569 General and administrative 4,667 3,079 15,483 9,996 Total $ 15,286 $ 11,209 $ 54,722 $ 36,973 Redfin Corporation and Subsidiaries Consolidated Statements of Cash Flows (in thousands, unaudited) Year Ended December 31, 2021 2020 Operating Activities Net loss $ (109,613 ) $ (18,527 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 46,906 14,564 Stock-based compensation 54,722 36,973 Amortization of debt discount and issuance costs 4,989 12,038 Non-cash lease expense 11,630 9,204 Impairment costs — 2,063 Loss on repurchases and conversions of convertible senior notes — 4,634 Net loss (gain) on IRLCs, forward sales commitments, and loans held for sale 815 (1,921 ) Other (4,227 ) (349 ) Change in assets and liabilities: Accounts receivable, net (7,149 ) (35,496 ) Inventory (309,063 ) 25,432 Prepaid expenses and other assets (12,248 ) 2,333 Accounts payable 3,059 2,086 Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent 25,791 39,092 Lease liabilities (13,268 ) (11,312 ) Origination of loans held for sale (986,982 ) (677,310 ) Proceeds from sale of loans originated as held for sale 993,070 657,763 Net cash (used in) provided by operating activities (301,568 ) 61,267 Investing activities Purchases of property and equipment (27,492 ) (14,686 ) Purchases of investments (146,274 ) (198,172 ) Sales of investments 98,687 7,887 Maturities of investments 106,773 147,852 Cash paid for acquisition (608,000 ) — Net cash used in investing activities (576,306 ) (57,119 ) Financing activities Proceeds from the issuance of convertible preferred stock, net of issuance costs — 39,801 Proceeds from the issuance of common stock, net of issuance costs — 69,701 Proceeds from the issuance of common stock pursuant to employee equity plans 22,772 21,072 Tax payments related to net share settlements on restricted stock units (27,066 ) (16,852 ) Borrowings from warehouse credit facilities 942,993 662,278 Repayments to warehouse credit facilities (948,979 ) (644,551 ) Borrowings from secured revolving credit facility 624,828 89,619 Repayments to secured revolving credit facility (448,996 ) (70,115 ) Cash paid for secured revolving credit facility issuance costs (527 ) (4 ) Proceeds from issuance of convertible senior notes, net of issuance costs 561,529 647,486 Purchases of capped calls related to convertible senior notes (62,647 ) — Payments for repurchases and conversions of convertible senior notes (2,159 ) (108,061 ) Principal payments under finance lease obligations (796 ) (221 ) Other financing payables (10,611 ) 4,074 Net cash provided by financing activities 650,341 694,227 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (6 ) (3 ) Net change in cash, cash equivalents, and restricted cash (227,539 ) 698,372 Cash, cash equivalents, and restricted cash: Beginning of period 945,820 247,448 End of period $ 718,281 $ 945,820 Redfin Corporation and Subsidiaries Supplemental Financial Information and Business Metrics (unaudited) Three Months Ended Dec. 31, 2021 Sep. 30, 2021 Jun. 30, 2021 Mar. 31, 2021 Dec. 31, 2020 Sep. 30, 2020 Jun. 30, 2020 Mar. 31, 2020 Monthly average visitors (in thousands) 44,665 49,147 48,437 46,202 44,135 49,258 42,537 35,519 Real estate services transactions Brokerage 19,428 21,929 21,006 14,317 16,951 18,980 13,828 10,751 Partner 4,603 4,755 4,597 3,944 4,940 5,180 2,691 2,479 Total 24,031 26,684 25,603 18,261 21,891 24,160 16,519 13,230 Real estate services revenue per transaction Brokerage $ 10,900 $ 11,107 $ 11,307 $ 10,927 $ 10,751 $ 10,241 $ 9,296 $ 9,520 Partner 2,819 2,990 3,195 3,084 3,123 2,988 2,417 2,535 Aggregate 9,352 9,661 9,850 9,233 9,030 8,686 8,175 8,211 Aggregate home value of real estate services transactions (in millions) $ 13,255 $ 14,926 $ 14,612 $ 9,710 $ 11,478 $ 12,207 $ 7,576 $ 6,098 U.S. market share by value 1.15 % 1.16 % 1.18 % 1.16 % 1.04 % 1.04 % 0.94 % 0.92 % Revenue from top-10 Redfin markets as a percentage of real estate services revenue 61 % 62 % 64 % 62 % 63 % 63 % 63 % 61 % Average number of lead agents 2,485 2,370 2,456 2,277 1,981 1,820 1,399 1,826 RedfinNow Homes Sold 600 388 292 171 83 37 162 171 Revenue per RedfinNow Home Sold 622,251 599,010 570,930 525,173 471,551 504,583 444,690 461,916 Redfin Corporation and Subsidiaries Supplemental Financial Information (unaudited, in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Revenue Real estate services (brokerage) $ 211,756 $ 182,244 $ 849,288 607,513 Real estate services (partner) 12,976 15,426 54,046 43,695 Properties 377,065 39,399 880,653 209,686 Rentals 38,923 — 121,877 — Mortgage 3,996 5,140 19,818 15,834.547 Other 3,347 3,073 13,609 12,377.25 Intercompany eliminations (5,006 ) (765 ) (16,526 ) (3,013 ) Total $ 643,057 $ 244,517 $ 1,922,765 $ 886,093 Cost of revenue Real estate services $ 149,529 $ 116,835 $ 603,320 $ 417,140 Properties 373,105 41,275 870,052 214,382 Rentals 6,774 — 21,739 — Mortgage 6,690 4,585 26,096 15,627 Other 3,941 2,467 14,264 9,847 Intercompany eliminations (5,006 ) (765 ) (16,526 ) (3,013 ) Total $ 535,033 $ 164,397 $ 1,518,945 $ 653,983 Gross Profit Real estate services 75,203 80,835 300,014 234,068 Properties 3,960 (1,876 ) 10,601 (4,696 ) Rentals 32,149 — 100,138 — Mortgage (2,694 ) 555 (6,278 ) 208 Other (594 ) 606 (655 ) 2,530 Total $ 108,024 $ 80,120 $ 403,820 $ 232,110 Real estate services, properties, mortgage, and other operating expenses 85,699 54,481 367,269 231,318 Rentals operating expenses 47,554 — 146,504 — Interest income 163 215 635 2,074 Interest expense (3,939 ) (11,864 ) (11,762 ) (19,495 ) Income tax benefit 744 — 6,107 — Other income (expense), net 1,259 45 5,360 (1,898 ) Net (loss) income $ (27,002 ) $ 14,035 $ (109,613 ) $ (18,527 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20220217005835/en/Contacts Investor Relations Meg Nunnally, 206-576-8610 ir@redfin.com Public Relations Mariam Sughayer, 206-876-1322 press@redfin.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Redfin Reports Fourth Quarter and Full Year 2021 Financial Results By: Redfin via Business Wire February 17, 2022 at 16:01 PM EST Redfin Corporation (NASDAQ: RDFN) today announced results for its fourth quarter and full year ended December 31, 2021. Fourth Quarter 2021 Fourth quarter revenue was $643.1 million, an increase of 163% compared to the fourth quarter of 2020. Gross profit was $108.0 million, an increase of 35% year-over-year. Real estate services gross profit was $75.2 million, a decrease of 7% year-over-year, and real estate services gross margin was 33%, compared to 41% in the fourth quarter of 2020. Net loss was $27.0 million, compared to a net income of $14.0 million in the fourth quarter of 2020. Net loss attributable to common stock was $28.4 million. Net loss per share attributable to common stock, diluted, was $0.27, compared to net income per share, diluted, of $0.11 in the fourth quarter of 2020. Full Year 2021 Full year revenue was $1,922.8 million, an increase of 117% year-over-year. Gross profit was $403.8 million, an increase of 74% year-over-year. Real estate services gross profit was $300.0 million, an increase of 28% year-over-year, and real estate services gross margin was 33%, compared to 36% in 2020. Net loss was $109.6 million, compared to a net loss of $18.5 million in 2020. Net loss attributable to common stock was $116.9 million. Net loss per share attributable to common stock, diluted, was $1.12, compared to a net loss per share, diluted, of $0.23 in 2020. “Fourth-quarter revenues and net income exceeded our expectations,” said Redfin CEO Glenn Kelman. “More importantly, Redfin is broadening its sources of customer value and corporate income, with title, mortgage, and iBuying now on track to generate gross profits, after years of being subsidized by our brokerage. Entering an uncertain market, Redfin’s pricing power and on-demand service will let us take share and improve operating margins.” Fourth Quarter Highlights Reached market share of 1.15% of U.S. existing home sales by value in the fourth quarter of 2021, an increase of 11 basis points from the fourth quarter of 2020.(1) Saved homebuyers and sellers over $77 million in the fourth quarter and over $288 million in 2021. This includes the savings Redfin offers buyers through the Redfin Refund and sellers through Redfin’s lower listing fee when compared to a 2.5% listing commission typically charged by traditional agents. Redfin’s mobile apps and website reached nearly 45 million average monthly users in the fourth quarter. For the year, Redfin reached a record of more than 47 million average monthly users, an increase of 10% compared to 2020. Expanded brokerage services into Big Bear, California; Ocean City, Maryland; and Ulster County, New York, furthering Redfin’s presence in popular vacation home destinations. Launched RedfinNow in the Minneapolis metro area, reaching a total of 30 markets. Confirmed Redfin sells homes faster and for more money than other brokerages for the 6th year in a row. Nationwide Redfin listings sold about 5 days faster and for $1,600 more than comparable listings from other brokerages according to a third-party study that we commissioned. Welcomed the inaugural class of 32 Redfin agents to our Career Accelerator pilot program, bringing professionals with a diversity of backgrounds to our Seattle and Washington, D.C. teams. Since December 2020, raised more than $1 million to build paths to homeownership for working families through Redfin Rise, an employee funded non-profit partnership. Delivered improved software for customers, agents, partners and renovations staff including: New search filters for customers to tailor the home search including pet friendliness and Walk Score. On-the-go tour scheduling for Redfin agents via Mobile Agent Tools. Speed improvements that help customers move quickly in a competitive market, including faster listing notifications and identifying Hot Homes that are likely to sell quickly within 5 minutes of being listed. SharePlay feature that lets buyers house-hunt together via FaceTime. Automated resale forecasting and renovation timeline model for RedfinNow’s investment and renovation teams. Subsequent to the fourth quarter, launched our annual media campaign on February 5: Welcome to the Housing Market and Redfin Knows What You Like. (1) We calculate our market share by aggregating the home value of brokerage and partner real estate services transactions. Then, in order to account for both the sell- and buy-side components of each transaction, we divide that value by two-times the estimated aggregate value of U.S. home sales. We calculate the aggregate value of U.S. home sales by multiplying the total number of U.S. existing home sales by the mean sale price of these homes, each as reported by the National Association of REALTORS®. Business Outlook The following forward-looking statements reflect Redfin's expectations as of February 17, 2022, and are subject to substantial uncertainty. For the first quarter of 2022 we expect: Total revenue between $535 million and $560 million, representing a year-over-year growth between 99% and 109% compared to the first quarter of 2021. Included within total revenue are real estate services segment revenue between $165 million and $171 million, properties segment revenue between $330 million to $350 million, rentals revenue between $37 million and $38 million, and mortgage revenue of $3 million. Total net loss is expected to be between $122 million and $115 million, compared to net loss of $36 million in the first quarter of 2021. RentPath’s contribution to the net loss is expected to be approximately $19 million. This guidance includes approximately $45 million in total marketing expenses, $19 million of stock-based compensation, $15 million of depreciation and amortization, and $5 million of net interest expense. In addition, we expect to pay a quarterly dividend of 30,640 shares of common stock to our preferred stockholder. Conference Call Redfin will webcast a conference call to discuss the results at 1:30 p.m. Pacific Time today. The webcast will be open to the public at http://investors.redfin.com. The webcast will remain available on the investor relations website for at least three months following the conference call. Forward-Looking Statements This press release contains forward-looking statements within the meaning of federal securities laws, including our future operating results, as described under Business Outlook. We believe our expectations related to these forward-looking statements are reasonable, but actual results may turn out to be materially different. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our annual report for the year ended December 31, 2021, which is available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. About Redfin Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people. Redfin-F Redfin Corporation and Subsidiaries Consolidated Balance Sheets (in thousands, except share and per share amounts, unaudited) December 31, 2021 2020 Assets Current assets Cash and cash equivalents $ 591,003 $ 925,276 Restricted cash 127,278 20,544 Short-term investments 33,737 131,561 Accounts receivable, net of allowances for credit losses of $1,298 and $160 69,594 54,719 Inventory 358,221 49,158 Loans held for sale 35,759 42,539 Prepaid expenses 22,948 12,131 Other current assets 7,524 4,898 Total current assets 1,246,064 1,240,826 Property and equipment, net 58,671 43,988 Right-of-use assets, net 54,200 44,149 Long-term investments 54,828 11,922 Goodwill 409,382 9,186 Intangible assets, net 185,929 1,830 Other assets, noncurrent 12,898 8,619 Total assets $ 2,021,972 $ 1,360,520 Liabilities, mezzanine equity, and stockholders' equity Current liabilities Accounts payable $ 12,546 $ 5,644 Accrued and other liabilities 118,122 82,644 Warehouse credit facilities 33,043 39,029 Secured revolving credit facility 199,781 23,949 Convertible senior notes, net 23,280 22,482 Lease liabilities 15,040 11,973 Total current liabilities 401,812 185,721 Lease liabilities, noncurrent 55,222 49,339 Convertible senior notes, net, noncurrent 1,214,017 488,268 Payroll tax liabilities, noncurrent — 6,812 Deferred tax liabilities 1,201 0 Total liabilities 1,672,252 730,140 Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 and 40,000 shares issued and outstanding at December 31, 2021 and 2020, respectively 39,868 39,823 Stockholders’ equity Common stock—par value $0.001 per share; 500,000,000 shares authorized; 106,308,767 and 103,000,594 shares issued and outstanding at December 31, 2021 and 2020, respectively 106 103 Additional paid-in capital 682,084 860,556 Accumulated other comprehensive (loss) income (174 ) 211 Accumulated deficit (372,164 ) (270,313 ) Total stockholders’ equity 309,852 590,557 Total liabilities, mezzanine equity, and stockholders’ equity $ 2,021,972 $ 1,360,520 Redfin Corporation and Subsidiaries Consolidated Statements of Comprehensive Loss (in thousands, except share and per share amounts, unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Revenue Service $ 265,992 $ 204,452 $ 1,042,112 $ 674,345 Product 377,065 40,065 880,653 211,748 Total revenue 643,057 244,517 1,922,765 886,093 Cost of revenue(1) Service 161,780 122,642 648,660 437,484 Product 373,253 41,755 870,285 216,499 Total cost of revenue 535,033 164,397 1,518,945 653,983 Gross profit 108,024 80,120 403,820 232,110 Operating expenses Technology and development(1) 43,894 23,610 156,718 84,297 Marketing(1) 22,397 7,270 138,740 54,881 General and administrative(1) 66,962 23,601 218,315 92,140 Total operating expenses 133,253 54,481 513,773 231,318 (Loss) income from operations (25,229 ) 25,639 (109,953 ) 792 Interest income 163 215 635 2,074 Interest expense (3,939 ) (11,864 ) (11,762 ) (19,495 ) Income tax benefit 744 — 6,107 — Other income (expense), net 1,259 45 5,360 (1,898 ) Net (loss) income $ (27,002 ) $ 14,035 $ (109,613 ) $ (18,527 ) Dividend on convertible preferred stock (1,394 ) (1,640 ) (7,269 ) (4,454 ) Undistributed earnings attributable to participating — (242 ) — — Net (loss) income attributable to common stock—basic and diluted $ (28,396 ) $ 12,153 $ (116,882 ) $ (22,981 ) Net (loss) income per share attributable to common stock—basic $ (0.27 ) $ 0.12 $ (1.12 ) $ (0.23 ) Weighted average shares of common stock—basic 105,739,395 102,176,459 104,683,460 98,574,529 Net (loss) income per share attributable to common stock—diluted $ (0.27 ) $ 0.11 $ (1.12 ) $ (0.23 ) Weighted average shares of common stock—diluted 105,739,395 109,461,342 104,683,460 98,574,529 Net (loss) income $ (27,002 ) $ 14,035 $ (109,613 ) $ (18,527 ) Other comprehensive (loss) income Foreign currency translation adjustments 4 13 6 (3 ) Unrealized gain (loss) on available-for-sale securities 217 (110 ) 379 172 Total comprehensive (loss) income (26,781 ) 13,938 (109,228 ) (18,358 ) (1) Includes stock-based compensation as follows: Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Cost of revenue $ 3,595 $ 2,863 $ 13,614 $ 8,844 Technology and development 6,288 4,828 23,275 16,564 Marketing 736 439 2,350 1,569 General and administrative 4,667 3,079 15,483 9,996 Total $ 15,286 $ 11,209 $ 54,722 $ 36,973 Redfin Corporation and Subsidiaries Consolidated Statements of Cash Flows (in thousands, unaudited) Year Ended December 31, 2021 2020 Operating Activities Net loss $ (109,613 ) $ (18,527 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 46,906 14,564 Stock-based compensation 54,722 36,973 Amortization of debt discount and issuance costs 4,989 12,038 Non-cash lease expense 11,630 9,204 Impairment costs — 2,063 Loss on repurchases and conversions of convertible senior notes — 4,634 Net loss (gain) on IRLCs, forward sales commitments, and loans held for sale 815 (1,921 ) Other (4,227 ) (349 ) Change in assets and liabilities: Accounts receivable, net (7,149 ) (35,496 ) Inventory (309,063 ) 25,432 Prepaid expenses and other assets (12,248 ) 2,333 Accounts payable 3,059 2,086 Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent 25,791 39,092 Lease liabilities (13,268 ) (11,312 ) Origination of loans held for sale (986,982 ) (677,310 ) Proceeds from sale of loans originated as held for sale 993,070 657,763 Net cash (used in) provided by operating activities (301,568 ) 61,267 Investing activities Purchases of property and equipment (27,492 ) (14,686 ) Purchases of investments (146,274 ) (198,172 ) Sales of investments 98,687 7,887 Maturities of investments 106,773 147,852 Cash paid for acquisition (608,000 ) — Net cash used in investing activities (576,306 ) (57,119 ) Financing activities Proceeds from the issuance of convertible preferred stock, net of issuance costs — 39,801 Proceeds from the issuance of common stock, net of issuance costs — 69,701 Proceeds from the issuance of common stock pursuant to employee equity plans 22,772 21,072 Tax payments related to net share settlements on restricted stock units (27,066 ) (16,852 ) Borrowings from warehouse credit facilities 942,993 662,278 Repayments to warehouse credit facilities (948,979 ) (644,551 ) Borrowings from secured revolving credit facility 624,828 89,619 Repayments to secured revolving credit facility (448,996 ) (70,115 ) Cash paid for secured revolving credit facility issuance costs (527 ) (4 ) Proceeds from issuance of convertible senior notes, net of issuance costs 561,529 647,486 Purchases of capped calls related to convertible senior notes (62,647 ) — Payments for repurchases and conversions of convertible senior notes (2,159 ) (108,061 ) Principal payments under finance lease obligations (796 ) (221 ) Other financing payables (10,611 ) 4,074 Net cash provided by financing activities 650,341 694,227 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (6 ) (3 ) Net change in cash, cash equivalents, and restricted cash (227,539 ) 698,372 Cash, cash equivalents, and restricted cash: Beginning of period 945,820 247,448 End of period $ 718,281 $ 945,820 Redfin Corporation and Subsidiaries Supplemental Financial Information and Business Metrics (unaudited) Three Months Ended Dec. 31, 2021 Sep. 30, 2021 Jun. 30, 2021 Mar. 31, 2021 Dec. 31, 2020 Sep. 30, 2020 Jun. 30, 2020 Mar. 31, 2020 Monthly average visitors (in thousands) 44,665 49,147 48,437 46,202 44,135 49,258 42,537 35,519 Real estate services transactions Brokerage 19,428 21,929 21,006 14,317 16,951 18,980 13,828 10,751 Partner 4,603 4,755 4,597 3,944 4,940 5,180 2,691 2,479 Total 24,031 26,684 25,603 18,261 21,891 24,160 16,519 13,230 Real estate services revenue per transaction Brokerage $ 10,900 $ 11,107 $ 11,307 $ 10,927 $ 10,751 $ 10,241 $ 9,296 $ 9,520 Partner 2,819 2,990 3,195 3,084 3,123 2,988 2,417 2,535 Aggregate 9,352 9,661 9,850 9,233 9,030 8,686 8,175 8,211 Aggregate home value of real estate services transactions (in millions) $ 13,255 $ 14,926 $ 14,612 $ 9,710 $ 11,478 $ 12,207 $ 7,576 $ 6,098 U.S. market share by value 1.15 % 1.16 % 1.18 % 1.16 % 1.04 % 1.04 % 0.94 % 0.92 % Revenue from top-10 Redfin markets as a percentage of real estate services revenue 61 % 62 % 64 % 62 % 63 % 63 % 63 % 61 % Average number of lead agents 2,485 2,370 2,456 2,277 1,981 1,820 1,399 1,826 RedfinNow Homes Sold 600 388 292 171 83 37 162 171 Revenue per RedfinNow Home Sold 622,251 599,010 570,930 525,173 471,551 504,583 444,690 461,916 Redfin Corporation and Subsidiaries Supplemental Financial Information (unaudited, in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Revenue Real estate services (brokerage) $ 211,756 $ 182,244 $ 849,288 607,513 Real estate services (partner) 12,976 15,426 54,046 43,695 Properties 377,065 39,399 880,653 209,686 Rentals 38,923 — 121,877 — Mortgage 3,996 5,140 19,818 15,834.547 Other 3,347 3,073 13,609 12,377.25 Intercompany eliminations (5,006 ) (765 ) (16,526 ) (3,013 ) Total $ 643,057 $ 244,517 $ 1,922,765 $ 886,093 Cost of revenue Real estate services $ 149,529 $ 116,835 $ 603,320 $ 417,140 Properties 373,105 41,275 870,052 214,382 Rentals 6,774 — 21,739 — Mortgage 6,690 4,585 26,096 15,627 Other 3,941 2,467 14,264 9,847 Intercompany eliminations (5,006 ) (765 ) (16,526 ) (3,013 ) Total $ 535,033 $ 164,397 $ 1,518,945 $ 653,983 Gross Profit Real estate services 75,203 80,835 300,014 234,068 Properties 3,960 (1,876 ) 10,601 (4,696 ) Rentals 32,149 — 100,138 — Mortgage (2,694 ) 555 (6,278 ) 208 Other (594 ) 606 (655 ) 2,530 Total $ 108,024 $ 80,120 $ 403,820 $ 232,110 Real estate services, properties, mortgage, and other operating expenses 85,699 54,481 367,269 231,318 Rentals operating expenses 47,554 — 146,504 — Interest income 163 215 635 2,074 Interest expense (3,939 ) (11,864 ) (11,762 ) (19,495 ) Income tax benefit 744 — 6,107 — Other income (expense), net 1,259 45 5,360 (1,898 ) Net (loss) income $ (27,002 ) $ 14,035 $ (109,613 ) $ (18,527 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20220217005835/en/Contacts Investor Relations Meg Nunnally, 206-576-8610 ir@redfin.com Public Relations Mariam Sughayer, 206-876-1322 press@redfin.com
Redfin Corporation (NASDAQ: RDFN) today announced results for its fourth quarter and full year ended December 31, 2021. Fourth Quarter 2021 Fourth quarter revenue was $643.1 million, an increase of 163% compared to the fourth quarter of 2020. Gross profit was $108.0 million, an increase of 35% year-over-year. Real estate services gross profit was $75.2 million, a decrease of 7% year-over-year, and real estate services gross margin was 33%, compared to 41% in the fourth quarter of 2020. Net loss was $27.0 million, compared to a net income of $14.0 million in the fourth quarter of 2020. Net loss attributable to common stock was $28.4 million. Net loss per share attributable to common stock, diluted, was $0.27, compared to net income per share, diluted, of $0.11 in the fourth quarter of 2020. Full Year 2021 Full year revenue was $1,922.8 million, an increase of 117% year-over-year. Gross profit was $403.8 million, an increase of 74% year-over-year. Real estate services gross profit was $300.0 million, an increase of 28% year-over-year, and real estate services gross margin was 33%, compared to 36% in 2020. Net loss was $109.6 million, compared to a net loss of $18.5 million in 2020. Net loss attributable to common stock was $116.9 million. Net loss per share attributable to common stock, diluted, was $1.12, compared to a net loss per share, diluted, of $0.23 in 2020. “Fourth-quarter revenues and net income exceeded our expectations,” said Redfin CEO Glenn Kelman. “More importantly, Redfin is broadening its sources of customer value and corporate income, with title, mortgage, and iBuying now on track to generate gross profits, after years of being subsidized by our brokerage. Entering an uncertain market, Redfin’s pricing power and on-demand service will let us take share and improve operating margins.” Fourth Quarter Highlights Reached market share of 1.15% of U.S. existing home sales by value in the fourth quarter of 2021, an increase of 11 basis points from the fourth quarter of 2020.(1) Saved homebuyers and sellers over $77 million in the fourth quarter and over $288 million in 2021. This includes the savings Redfin offers buyers through the Redfin Refund and sellers through Redfin’s lower listing fee when compared to a 2.5% listing commission typically charged by traditional agents. Redfin’s mobile apps and website reached nearly 45 million average monthly users in the fourth quarter. For the year, Redfin reached a record of more than 47 million average monthly users, an increase of 10% compared to 2020. Expanded brokerage services into Big Bear, California; Ocean City, Maryland; and Ulster County, New York, furthering Redfin’s presence in popular vacation home destinations. Launched RedfinNow in the Minneapolis metro area, reaching a total of 30 markets. Confirmed Redfin sells homes faster and for more money than other brokerages for the 6th year in a row. Nationwide Redfin listings sold about 5 days faster and for $1,600 more than comparable listings from other brokerages according to a third-party study that we commissioned. Welcomed the inaugural class of 32 Redfin agents to our Career Accelerator pilot program, bringing professionals with a diversity of backgrounds to our Seattle and Washington, D.C. teams. Since December 2020, raised more than $1 million to build paths to homeownership for working families through Redfin Rise, an employee funded non-profit partnership. Delivered improved software for customers, agents, partners and renovations staff including: New search filters for customers to tailor the home search including pet friendliness and Walk Score. On-the-go tour scheduling for Redfin agents via Mobile Agent Tools. Speed improvements that help customers move quickly in a competitive market, including faster listing notifications and identifying Hot Homes that are likely to sell quickly within 5 minutes of being listed. SharePlay feature that lets buyers house-hunt together via FaceTime. Automated resale forecasting and renovation timeline model for RedfinNow’s investment and renovation teams. Subsequent to the fourth quarter, launched our annual media campaign on February 5: Welcome to the Housing Market and Redfin Knows What You Like. (1) We calculate our market share by aggregating the home value of brokerage and partner real estate services transactions. Then, in order to account for both the sell- and buy-side components of each transaction, we divide that value by two-times the estimated aggregate value of U.S. home sales. We calculate the aggregate value of U.S. home sales by multiplying the total number of U.S. existing home sales by the mean sale price of these homes, each as reported by the National Association of REALTORS®. Business Outlook The following forward-looking statements reflect Redfin's expectations as of February 17, 2022, and are subject to substantial uncertainty. For the first quarter of 2022 we expect: Total revenue between $535 million and $560 million, representing a year-over-year growth between 99% and 109% compared to the first quarter of 2021. Included within total revenue are real estate services segment revenue between $165 million and $171 million, properties segment revenue between $330 million to $350 million, rentals revenue between $37 million and $38 million, and mortgage revenue of $3 million. Total net loss is expected to be between $122 million and $115 million, compared to net loss of $36 million in the first quarter of 2021. RentPath’s contribution to the net loss is expected to be approximately $19 million. This guidance includes approximately $45 million in total marketing expenses, $19 million of stock-based compensation, $15 million of depreciation and amortization, and $5 million of net interest expense. In addition, we expect to pay a quarterly dividend of 30,640 shares of common stock to our preferred stockholder. Conference Call Redfin will webcast a conference call to discuss the results at 1:30 p.m. Pacific Time today. The webcast will be open to the public at http://investors.redfin.com. The webcast will remain available on the investor relations website for at least three months following the conference call. Forward-Looking Statements This press release contains forward-looking statements within the meaning of federal securities laws, including our future operating results, as described under Business Outlook. We believe our expectations related to these forward-looking statements are reasonable, but actual results may turn out to be materially different. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our annual report for the year ended December 31, 2021, which is available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. About Redfin Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people. Redfin-F Redfin Corporation and Subsidiaries Consolidated Balance Sheets (in thousands, except share and per share amounts, unaudited) December 31, 2021 2020 Assets Current assets Cash and cash equivalents $ 591,003 $ 925,276 Restricted cash 127,278 20,544 Short-term investments 33,737 131,561 Accounts receivable, net of allowances for credit losses of $1,298 and $160 69,594 54,719 Inventory 358,221 49,158 Loans held for sale 35,759 42,539 Prepaid expenses 22,948 12,131 Other current assets 7,524 4,898 Total current assets 1,246,064 1,240,826 Property and equipment, net 58,671 43,988 Right-of-use assets, net 54,200 44,149 Long-term investments 54,828 11,922 Goodwill 409,382 9,186 Intangible assets, net 185,929 1,830 Other assets, noncurrent 12,898 8,619 Total assets $ 2,021,972 $ 1,360,520 Liabilities, mezzanine equity, and stockholders' equity Current liabilities Accounts payable $ 12,546 $ 5,644 Accrued and other liabilities 118,122 82,644 Warehouse credit facilities 33,043 39,029 Secured revolving credit facility 199,781 23,949 Convertible senior notes, net 23,280 22,482 Lease liabilities 15,040 11,973 Total current liabilities 401,812 185,721 Lease liabilities, noncurrent 55,222 49,339 Convertible senior notes, net, noncurrent 1,214,017 488,268 Payroll tax liabilities, noncurrent — 6,812 Deferred tax liabilities 1,201 0 Total liabilities 1,672,252 730,140 Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 and 40,000 shares issued and outstanding at December 31, 2021 and 2020, respectively 39,868 39,823 Stockholders’ equity Common stock—par value $0.001 per share; 500,000,000 shares authorized; 106,308,767 and 103,000,594 shares issued and outstanding at December 31, 2021 and 2020, respectively 106 103 Additional paid-in capital 682,084 860,556 Accumulated other comprehensive (loss) income (174 ) 211 Accumulated deficit (372,164 ) (270,313 ) Total stockholders’ equity 309,852 590,557 Total liabilities, mezzanine equity, and stockholders’ equity $ 2,021,972 $ 1,360,520 Redfin Corporation and Subsidiaries Consolidated Statements of Comprehensive Loss (in thousands, except share and per share amounts, unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Revenue Service $ 265,992 $ 204,452 $ 1,042,112 $ 674,345 Product 377,065 40,065 880,653 211,748 Total revenue 643,057 244,517 1,922,765 886,093 Cost of revenue(1) Service 161,780 122,642 648,660 437,484 Product 373,253 41,755 870,285 216,499 Total cost of revenue 535,033 164,397 1,518,945 653,983 Gross profit 108,024 80,120 403,820 232,110 Operating expenses Technology and development(1) 43,894 23,610 156,718 84,297 Marketing(1) 22,397 7,270 138,740 54,881 General and administrative(1) 66,962 23,601 218,315 92,140 Total operating expenses 133,253 54,481 513,773 231,318 (Loss) income from operations (25,229 ) 25,639 (109,953 ) 792 Interest income 163 215 635 2,074 Interest expense (3,939 ) (11,864 ) (11,762 ) (19,495 ) Income tax benefit 744 — 6,107 — Other income (expense), net 1,259 45 5,360 (1,898 ) Net (loss) income $ (27,002 ) $ 14,035 $ (109,613 ) $ (18,527 ) Dividend on convertible preferred stock (1,394 ) (1,640 ) (7,269 ) (4,454 ) Undistributed earnings attributable to participating — (242 ) — — Net (loss) income attributable to common stock—basic and diluted $ (28,396 ) $ 12,153 $ (116,882 ) $ (22,981 ) Net (loss) income per share attributable to common stock—basic $ (0.27 ) $ 0.12 $ (1.12 ) $ (0.23 ) Weighted average shares of common stock—basic 105,739,395 102,176,459 104,683,460 98,574,529 Net (loss) income per share attributable to common stock—diluted $ (0.27 ) $ 0.11 $ (1.12 ) $ (0.23 ) Weighted average shares of common stock—diluted 105,739,395 109,461,342 104,683,460 98,574,529 Net (loss) income $ (27,002 ) $ 14,035 $ (109,613 ) $ (18,527 ) Other comprehensive (loss) income Foreign currency translation adjustments 4 13 6 (3 ) Unrealized gain (loss) on available-for-sale securities 217 (110 ) 379 172 Total comprehensive (loss) income (26,781 ) 13,938 (109,228 ) (18,358 ) (1) Includes stock-based compensation as follows: Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Cost of revenue $ 3,595 $ 2,863 $ 13,614 $ 8,844 Technology and development 6,288 4,828 23,275 16,564 Marketing 736 439 2,350 1,569 General and administrative 4,667 3,079 15,483 9,996 Total $ 15,286 $ 11,209 $ 54,722 $ 36,973 Redfin Corporation and Subsidiaries Consolidated Statements of Cash Flows (in thousands, unaudited) Year Ended December 31, 2021 2020 Operating Activities Net loss $ (109,613 ) $ (18,527 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 46,906 14,564 Stock-based compensation 54,722 36,973 Amortization of debt discount and issuance costs 4,989 12,038 Non-cash lease expense 11,630 9,204 Impairment costs — 2,063 Loss on repurchases and conversions of convertible senior notes — 4,634 Net loss (gain) on IRLCs, forward sales commitments, and loans held for sale 815 (1,921 ) Other (4,227 ) (349 ) Change in assets and liabilities: Accounts receivable, net (7,149 ) (35,496 ) Inventory (309,063 ) 25,432 Prepaid expenses and other assets (12,248 ) 2,333 Accounts payable 3,059 2,086 Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent 25,791 39,092 Lease liabilities (13,268 ) (11,312 ) Origination of loans held for sale (986,982 ) (677,310 ) Proceeds from sale of loans originated as held for sale 993,070 657,763 Net cash (used in) provided by operating activities (301,568 ) 61,267 Investing activities Purchases of property and equipment (27,492 ) (14,686 ) Purchases of investments (146,274 ) (198,172 ) Sales of investments 98,687 7,887 Maturities of investments 106,773 147,852 Cash paid for acquisition (608,000 ) — Net cash used in investing activities (576,306 ) (57,119 ) Financing activities Proceeds from the issuance of convertible preferred stock, net of issuance costs — 39,801 Proceeds from the issuance of common stock, net of issuance costs — 69,701 Proceeds from the issuance of common stock pursuant to employee equity plans 22,772 21,072 Tax payments related to net share settlements on restricted stock units (27,066 ) (16,852 ) Borrowings from warehouse credit facilities 942,993 662,278 Repayments to warehouse credit facilities (948,979 ) (644,551 ) Borrowings from secured revolving credit facility 624,828 89,619 Repayments to secured revolving credit facility (448,996 ) (70,115 ) Cash paid for secured revolving credit facility issuance costs (527 ) (4 ) Proceeds from issuance of convertible senior notes, net of issuance costs 561,529 647,486 Purchases of capped calls related to convertible senior notes (62,647 ) — Payments for repurchases and conversions of convertible senior notes (2,159 ) (108,061 ) Principal payments under finance lease obligations (796 ) (221 ) Other financing payables (10,611 ) 4,074 Net cash provided by financing activities 650,341 694,227 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (6 ) (3 ) Net change in cash, cash equivalents, and restricted cash (227,539 ) 698,372 Cash, cash equivalents, and restricted cash: Beginning of period 945,820 247,448 End of period $ 718,281 $ 945,820 Redfin Corporation and Subsidiaries Supplemental Financial Information and Business Metrics (unaudited) Three Months Ended Dec. 31, 2021 Sep. 30, 2021 Jun. 30, 2021 Mar. 31, 2021 Dec. 31, 2020 Sep. 30, 2020 Jun. 30, 2020 Mar. 31, 2020 Monthly average visitors (in thousands) 44,665 49,147 48,437 46,202 44,135 49,258 42,537 35,519 Real estate services transactions Brokerage 19,428 21,929 21,006 14,317 16,951 18,980 13,828 10,751 Partner 4,603 4,755 4,597 3,944 4,940 5,180 2,691 2,479 Total 24,031 26,684 25,603 18,261 21,891 24,160 16,519 13,230 Real estate services revenue per transaction Brokerage $ 10,900 $ 11,107 $ 11,307 $ 10,927 $ 10,751 $ 10,241 $ 9,296 $ 9,520 Partner 2,819 2,990 3,195 3,084 3,123 2,988 2,417 2,535 Aggregate 9,352 9,661 9,850 9,233 9,030 8,686 8,175 8,211 Aggregate home value of real estate services transactions (in millions) $ 13,255 $ 14,926 $ 14,612 $ 9,710 $ 11,478 $ 12,207 $ 7,576 $ 6,098 U.S. market share by value 1.15 % 1.16 % 1.18 % 1.16 % 1.04 % 1.04 % 0.94 % 0.92 % Revenue from top-10 Redfin markets as a percentage of real estate services revenue 61 % 62 % 64 % 62 % 63 % 63 % 63 % 61 % Average number of lead agents 2,485 2,370 2,456 2,277 1,981 1,820 1,399 1,826 RedfinNow Homes Sold 600 388 292 171 83 37 162 171 Revenue per RedfinNow Home Sold 622,251 599,010 570,930 525,173 471,551 504,583 444,690 461,916 Redfin Corporation and Subsidiaries Supplemental Financial Information (unaudited, in thousands) Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Revenue Real estate services (brokerage) $ 211,756 $ 182,244 $ 849,288 607,513 Real estate services (partner) 12,976 15,426 54,046 43,695 Properties 377,065 39,399 880,653 209,686 Rentals 38,923 — 121,877 — Mortgage 3,996 5,140 19,818 15,834.547 Other 3,347 3,073 13,609 12,377.25 Intercompany eliminations (5,006 ) (765 ) (16,526 ) (3,013 ) Total $ 643,057 $ 244,517 $ 1,922,765 $ 886,093 Cost of revenue Real estate services $ 149,529 $ 116,835 $ 603,320 $ 417,140 Properties 373,105 41,275 870,052 214,382 Rentals 6,774 — 21,739 — Mortgage 6,690 4,585 26,096 15,627 Other 3,941 2,467 14,264 9,847 Intercompany eliminations (5,006 ) (765 ) (16,526 ) (3,013 ) Total $ 535,033 $ 164,397 $ 1,518,945 $ 653,983 Gross Profit Real estate services 75,203 80,835 300,014 234,068 Properties 3,960 (1,876 ) 10,601 (4,696 ) Rentals 32,149 — 100,138 — Mortgage (2,694 ) 555 (6,278 ) 208 Other (594 ) 606 (655 ) 2,530 Total $ 108,024 $ 80,120 $ 403,820 $ 232,110 Real estate services, properties, mortgage, and other operating expenses 85,699 54,481 367,269 231,318 Rentals operating expenses 47,554 — 146,504 — Interest income 163 215 635 2,074 Interest expense (3,939 ) (11,864 ) (11,762 ) (19,495 ) Income tax benefit 744 — 6,107 — Other income (expense), net 1,259 45 5,360 (1,898 ) Net (loss) income $ (27,002 ) $ 14,035 $ (109,613 ) $ (18,527 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20220217005835/en/
Investor Relations Meg Nunnally, 206-576-8610 ir@redfin.com Public Relations Mariam Sughayer, 206-876-1322 press@redfin.com
