Page 1

REDFIN Redfin Reports Third Quarter 2021 Financial Results November 4 , 2021 SEATTLE , Nov. 4 , 2021 / PRNewswire / -- Redfin Corporation ( NASDAQ : RDFN ) today announced financial results for the third quarter ended September 30 , 2021. All financial measures , unless otherwise noted , are presented on a GAAP basis and include stock - based compensation , and depreciation and amortization . REDFIN Revenue increased 128 % year - over - year to $ 540 million during the third quarter . Gross profit was $ 127 million , an increase of 37 % from $ 93 million in the third quarter of 2020. Real estate services gross profit was $ 96 million , an increase of 5 % from $ 92 million in the third quarter of 2020. Real estate services gross margin was 37 % , compared to 44 % in the third quarter of 2020. Operating expenses were $ 147 million , an increase of 163 % from $ 56 million in the third quarter of 2020. Operating expenses were 27 % of revenue , up from 24 % in the third quarter of 2020 . Net loss was $ 18.9 million , compared to net loss of $ 34.2 million in the third quarter of 2020. The dividend on our convertible preferred stock was $ 1.7 million in the third quarter . Net loss attributable to common stock was $ 20.6 million . Stock - based compensation was $ 13.1 million , up from $ 11.3 million in the third quarter of 2020. Depreciation and amortization was $ 14.5 million , up from $ 3.7 million in the third quarter of 2020. Interest income was $ 0.2 million and interest expense was $ 3.7 million , compared to $ 0.3 million and $ 2.5 million , respectively , in the third quarter of 2020 . Net loss per share attributable to common stock , diluted , was $ 0.20 , compared to net income per share attributable to common stock , diluted , of $ 0.30 in the third quarter of 2020 . " Redfin had a fantastic quarter , " said Redfin CEO Glenn Kelman . " Our revenues were at the top of the range we gave investors in our last earnings report , and our net income exceeded that range . Our year - over - year market - share gains continued even as the housing market slowed , and our website again improved its standing against its largest competitors . RedfinNow grew revenues by more than 1,000 percent all while selling homes above our forecasted price . We saved our brokerage customers more than $ 80 million in fees . Agent retention improved , and we're now preparing to broaden changes to our service and pricing that we expect to increase 2022 gross profits , customer satisfaction and agent retention . " Highlights • Reached market share of 1.16 % of U.S. existing home sales by value in the third quarter of 2021 , an increase of 12 basis points from the third quarter of 2020. ( 1 ) • Saved homebuyers and sellers over $ 83 million in the third quarter . 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 % commission typically charged by traditional agents . • Redfin's mobile application and website reached 49.1 million average monthly visitors in the third quarter , which was roughly flat compared to the third quarter of 2020 . • Launched brokerage services in Mississippi and new regions in Florida , surpassing 100 markets served . • Continued RedfinNow expansion by launching in Chicago , Atlanta , Nashville , Charlotte and Raleigh . • Announced the expansion of Direct Access self - touring on October 5th , which lets buyers tour vacant homes listed by Redfin agents and is supported by a partnership with ADT to provide enhanced safety and security measures . • Launched a Career Accelerator pilot program in Seattle and the Washington , D.C. metro area to hire and train people from diverse backgrounds to become Redfin agents . • Delivered improved software for customers , agents , partners and mortgage teams , including : o Climate risk data for every location page on Redfin.com , empowering consumers to make better - informed decisions about buying , selling and renting . • More accurate Redfin Estimates for off - market homes that react quickly to dynamic market conditions . • Easy to import work history from Equifax's The Work Number in mortgage pre - approval applications . o iOS Home Screen Widgets , which show potential homebuyers relevant listings directly on their iPhone or iPad's home screen . o A new appraisal ordering system for Redfin Mortgage Lender Tools that streamlines data sharing between mortgage processors and appraisal management companies . • Automation software for Redfin Home Services to streamline Concierge bids and scope of work agreements . ( 1 ) 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® ( " NAR " ) . NAR data for the most recent period is preliminary and may subsequently be updated by NAR . 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 . Business Outlook The following forward - looking statements reflect Redfin's expectations as of November 4 , 2021 , and are subject to substantial uncertainty . For the fourth quarter of 2021 we expect : • Total revenue between $ 585 million and $ 606 million , representing a year - over - year increase between 139 % and 148 % compared to the fourth quarter of 2020. Included within total revenue are real estate services segment revenue between $ 225 million and $ 230 million , properties segment revenue between $ 319 million and $ 334 million , and rentals revenue between $ 38 million and $ 39 million . • Total net loss between $ 36 million and $ 31 million , compared to total net income of $ 14 million in the fourth quarter of 2020. RentPath's contribution to the net loss is expected to be approximately $ 15 million . This guidance includes approximately $ 24 million in total marketing expenses , $ 16 million of stock - based compensation , $ 15 million of depreciation and amortization , and $ 4 million of net interest expense . Net income attributable to common stockholders will include the value of dividends on our convertible preferred stock , which we expect to pay in shares of our common stock . 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 , 2020 , as supplemented by our quarterly report for the quarter ended September 30 , 2021 , both of which are 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 may publish information and analysis about the U.S. residential real estate industry on its company blog at www.redfin.com/news/housing-market-news/ . We encourage investors and others interested in our company to review and subscribe to the information we post on our company blog , as some of the information may be material . Redfin - F Redfin Corporation and Subsidiaries