Redfin Corp (RDFN, Financial) released its Q3 2023 earnings report on November 2, 2023. The company reported a revenue of $269.0 million, marking a 12% decrease compared to the same period in 2022. Despite the decrease in revenue, the company's gross profit saw an increase of 8% year-over-year, reaching $98.3 million.
Financial Performance
Redfin's real estate services gross profit was $54.1 million, a decrease of 2% year-over-year, and the gross margin was 30%, compared to 26% in Q3 2022. The company reported a net loss of $19.0 million, a significant improvement from a net loss of $90.2 million in the same period last year. The net loss per share attributable to common stock, diluted, was $0.17, compared to a net loss per share, diluted, of $0.83 in Q3 2022.
CEO Commentary
“In a worsening housing market, Redfin earned an adjusted EBITDA profit, a $59 million improvement over the third quarter of 2022, all while growing traffic and gaining share,” said Redfin CEO Glenn Kelman. “In October, we raised capital, began generating revenues from a new digital business, and launched all-variable agent pay in California. This downturn has only made us stronger.”
Key Highlights
Redfin's market share was 0.78% of U.S. existing home sales by units, compared to 0.75% in Q2 2023. The company's mobile apps and website reached more than 51 million average monthly users, up 1% compared to Q3 2022. The company also achieved a mortgage cross-selling attach rate of 18% in Q3, despite strong headwinds.
Financial Outlook
For Q4 2023, Redfin expects total revenue between $211 million and $226 million, representing a year-over-year change between (5)% and 2% compared to Q4 2022. The total net loss is expected to be between $27 million and $18 million, compared to a net loss of $62 million in Q4 2022.
Balance Sheet Summary
As of September 30, 2023, Redfin had cash and cash equivalents of $125.8 million, a decrease from $232.2 million as of December 31, 2022. Total assets were $1.13 billion, down from $1.57 billion at the end of 2022. Total liabilities stood at $1.08 billion, compared to $1.47 billion at the end of 2022.
Explore the complete 8-K earnings release (here) from Redfin Corp for further details.
