Q2 2024 Redfin Corp Earnings Call Transcript
Key Points
- Redfin Corp (RDFN) achieved breakeven adjusted EBITDA for the second quarter, which was at the top of their guidance range.
- Real estate services revenue reached $188 million, meeting the upper end of their guidance.
- The company saw a year-over-year increase in the share of home sales brokered by their agents, marking the first gain in nearly two years.
- Redfin Corp (RDFN) successfully integrated their rentals business, reducing operating expenses by 19% year over year.
- Title Forward, their title business, achieved extraordinary performance with attach rates above 60% and year-over-year revenue growth above 50%.
- Total net loss for the second quarter was $28 million, slightly higher than the $27 million loss from the prior year.
- Real estate services gross margin decreased by 250 basis points year over year, primarily due to increased personnel costs and transaction bonuses.
- The company anticipates lower real estate services margins in the second and third quarters due to one-time transition pay for agents.
- Despite a drop in mortgage interest rates, there was minimal immediate reaction from homebuyers, indicating potential market challenges.
- The company expects total net loss for the third quarter to be between $30 million and $22 million, compared to a net loss of $19 million in the third quarter of 2023.
Good day, ladies and gentlemen. And welcome to the Redfin Corporation second-quarter 2024 earnings conference call. Our host for today's call is Meg Nunnally, Head of Investor Relations.
(Operator Instructions) I would like to now turn the call over to your host. Ms. Nunnally, you may begin.
Thank you. Good afternoon, and welcome to Redfin's financial results conference call for the second quarter ended June 30, 2024. I'm Meg Nunally, Redfin's Head of Investor Relations. Joining me on the call today is Glenn Kelman, our CEO; and Chris Nielsen, our CFO.
Before we start, note that some of our statements on today's call are forward-looking. We believe our assumptions and expectations related to these forward-looking statements are reasonable, but our actual results may turn out to be materially different. Please read and consider the risk factors in our SEC filings together with the content of today's call. Any forward-looking statements are based on our assumptions today, and we don't
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