EX-99.1 2 q42022earningsreleaseex.htm EX-99.1 Document


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Redfin Reports Fourth Quarter and Full Year 2022 Financial Results

SEATTLE - February 16, 2023 - Redfin Corporation (NASDAQ: RDFN) today announced results for its fourth quarter and full year ended December 31, 2022.

Fourth Quarter 2022
Fourth quarter revenue was $479.7 million, a decrease of 25% compared to the fourth quarter of 2021. Gross profit was $37.4 million, a decrease of 65% year-over-year. Real estate services gross profit was $26.3 million, a decrease of 65% year-over-year, and real estate services gross margin was 18%, compared to 33% in the fourth quarter of 2021.

Net loss was $61.9 million, compared to a net loss of $27.0 million in the fourth quarter of 2021. Net loss attributable to common stock was $62.1 million. Net loss per share attributable to common stock, diluted, was $0.57, compared to net loss per share, diluted, of $0.27 in the fourth quarter of 2021.

Full Year 2022
Full year revenue was $2,284.4 million, an increase of 19% year-over-year. Gross profit was $286.1 million, a decrease of 29% year-over-year. Real estate services gross profit was $179.0 million, a decrease of 40% year-over-year, and real estate services gross margin was 23%, compared to 33% in 2021.

Net loss was $321.1 million, compared to a net loss of $109.6 million in 2021. Net loss attributable to common stock was $322.7 million. Net loss per share attributable to common stock, diluted, was $2.99, compared to a net loss per share, diluted, of $1.12 in 2021.

“Redfin in the fourth quarter of 2022 set ourselves up to earn adjusted EBITDA in 2023, which would be an improvement in profits of nearly $200 million, even in a major housing downturn,” said Redfin CEO Glenn Kelman. “We shifted to more digital-margin revenue, lowered expenses, increased our share of online real estate traffic, and improved the quality of our sales force. The discipline to make adjusted EBITDA this year can make us very profitable when the housing market recovers. We also bought $143 million of debt for $84 million in cash. We have either sold or accepted an offer to sell all but 19 of our RedfinNow homes. Our revenues and net income exceeded the guidance we gave investors in our November earnings report.”

Fourth Quarter and Full Year Highlights
Reached market share of 0.76% of U.S. existing home sales by units in the fourth quarter. For the year, Redfin reached a market share of 0.80%, an increase of 3 bps compared to 2021.
Redfin’s mobile apps and website reached nearly 44 million average monthly users in the fourth quarter. For the year, Redfin reached a record of nearly 50 million average monthly users, an increase of 5% compared to 2021.
Brought Redfin agent service to Wilmington, North Carolina and Green Bay, Wisconsin and expanded listing coverage to a total of 98% of the U.S. population.
Maintained momentum in mortgage cross-selling, with 17% attach rates for the fourth quarter which was flat compared to the third quarter of 2022.
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Confirmed Redfin sells homes faster and for more money than other brokerages for the 7th year in a row. Nationwide Redfin listings sold about 3 days faster and for $1,800 more than comparable listings from other brokerages according to a third-party study that we commissioned.
Delivered software to improve the customers experience and employee productivity:
Added energy cost estimates to U.S. home listings, helping consumers understand the full cost of living in a home and allowing homeowners to discover how much they could save by installing solar panels.
Added zoning and land-use data to U.S. home listings, making it easier for consumers to understand how properties may or may not be used.
Implemented a new design system for iOS home detail pages that increased homebuyer contact and tour completion rates.
Improved landlord referral process from Redfin.com to rentals.com, helping retain high-intent prospective landlords.

Business Outlook
The following forward-looking statements reflect Redfin's expectations as of February 16, 2023, and are subject to substantial uncertainty.

For the first quarter of 2023 we expect:
Total revenue between $307 million and $324 million, representing a year-over-year decline between (49)% and (46)% compared to the first quarter of 2022. Included within total revenue are real estate services segment revenue between $122 million and $130 million, properties segment revenue between $108 million to $113 million, rentals revenue between $41 million and $42 million, and mortgage revenue between $29 million and $32 million.
Total net loss is expected to be between $116 million and $105 million, compared to net loss of $91 million in the first quarter of 2022. This guidance includes approximately $45 million in total marketing expenses, $20 million of stock-based compensation, $17 million of depreciation and amortization, $7 million in gains on extinguishment of convertible senior notes and $1 million in restructuring expenses. Adjusted EBITDA loss is expected to be between $84 million and $73 million. Furthermore, 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, 2022, 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.

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About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, 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 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 $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 5,000 people.

Redfin-F

Contacts

Investor Relations
Meg Nunnally, 206-576-8610
ir@redfin.com

Public Relations
Mariam Sughayer, 206-876-1322
press@redfin.com
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Redfin Corporation and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share amounts, unaudited)

December 31,
20222021
Assets
Current assets
Cash and cash equivalents$239,840 $591,003 
Restricted cash2,406 127,278 
Short-term investments122,259 33,737 
Accounts receivable, net of allowances for credit losses of $2,019 and $1,29854,880 69,594 
Inventory114,273 358,221 
Loans held for sale199,604 35,759 
Prepaid expenses34,506 22,948 
Other current assets8,690 7,524 
Total current assets776,458 1,246,064 
Property and equipment, net55,105 58,671 
Right-of-use assets, net42,032 54,200 
Mortgage servicing rights, at fair value36,261 — 
Long-term investments29,480 54,828 
Goodwill461,349 409,382 
Intangible assets, net162,272 185,929 
Other assets, noncurrent11,247 12,898 
Total assets$1,574,204 $2,021,972 
Liabilities, mezzanine equity, and stockholders' equity
Current liabilities
Accounts payable$11,819 $12,546 
Accrued and other liabilities109,743 118,122 
Warehouse credit facilities190,509 33,043 
Secured revolving credit facility— 199,781 
Convertible senior notes, net23,431 23,280 
Lease liabilities19,137 15,040 
Total current liabilities354,639 401,812 
Lease liabilities, noncurrent37,298 55,222 
Convertible senior notes, net, noncurrent1,078,157 1,214,017 
Deferred tax liabilities243 1,201 
Total liabilities1,470,337 1,672,252 
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, 2022 and 2021, respectively39,914 39,868 
Stockholders’ equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 109,696,178 and 106,308,767 shares issued and outstanding at December 31, 2022 and 2021, respectively110 106 
Additional paid-in capital757,951 682,084 
Accumulated other comprehensive loss(801)(174)
Accumulated deficit(693,307)(372,164)
Total stockholders’ equity63,953 309,852 
Total liabilities, mezzanine equity, and stockholders’ equity$1,574,204 $2,021,972 
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Redfin Corporation and Subsidiaries
Consolidated Statements of Comprehensive Loss
(in thousands, except share and per share amounts, unaudited)

Three Months Ended December 31,Year Ended December 31,
2022202120222021
Revenue
Service$219,121 $265,992 $1,081,877 $1,042,112 
Product260,543 377,065 1,202,565 880,653 
Total revenue479,664 643,057 2,284,442 1,922,765 
Cost of revenue(1)
Service163,467 161,780 772,351 648,660 
Product278,762 373,253 1,226,038 870,285 
Total cost of revenue442,229 535,033 1,998,389 1,518,945 
Gross profit37,435 108,024 286,053 403,820 
Operating expenses
Technology and development(1)
47,041 43,894 196,250 156,718 
Marketing(1)
24,238 22,397 158,071 138,740 
General and administrative(1)
62,889 66,962 254,593 218,315 
Restructuring and reorganization21,798 — 40,469 — 
Total operating expenses155,966 133,253 649,383 513,773 
Loss from operations(118,531)(25,229)(363,330)(109,953)
Interest income4,691 163 6,639 635 
Interest expense(4,905)(3,939)(17,745)(11,762)
Income tax benefit (expense) 299 744 (126)6,107 
Gain on extinguishment of convertible senior notes57,193 — 57,193 — 
Other (expense) income, net(693)1,259 (3,774)5,360 
Net loss$(61,946)$(27,002)$(321,143)$(109,613)
Dividends on convertible preferred stock(144)(1,394)(1,560)(7,269)
Net loss attributable to common stock—basic and diluted$(62,090)$(28,396)$(322,703)$(116,882)
Net loss per share attributable to common stock—basic and diluted$(0.57)$(0.27)$(2.99)$(1.12)
Weighted average shares of common stock—basic and diluted108,997,415 105,739,395 107,927,464 104,683,460 
Net loss$(61,946)$(27,002)$(321,143)$(109,613)
Other comprehensive income
Foreign currency translation adjustments29 94 
Unrealized (loss) gain on available-for-sale securities(279)217 533 379 
Comprehensive loss(62,196)(26,781)(320,516)(109,228)

(1) Includes stock-based compensation as follows:
Three Months Ended December 31,Year Ended December 31,
2022202120222021
Cost of revenue$4,307 $3,595 $15,950 $13,614 
Technology and development6,572 6,288 29,608 23,275 
Marketing1,069 736 4,093 2,350 
General and administrative4,638 4,667 18,606 15,483 
Total$16,586 $15,286 $68,257 $54,722 

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Redfin Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Year Ended December 31,
20222021
Operating Activities
Net loss
$(321,143)$(109,613)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization64,907 46,906 
Stock-based compensation68,257 54,722 
Amortization of debt discount and issuance costs6,137 4,989 
Non-cash lease expense16,234 11,630 
Impairment costs1,136 — 
Net loss on IRLCs, forward sales commitments, and loans held for sale14,427 815 
Change in fair value of mortgage servicing rights, net(801)— 
Gain on extinguishment of convertible senior notes(57,193)— 
Other3,791 (4,227)
Change in assets and liabilities:
Accounts receivable, net24,411 (7,149)
Inventory243,948 (309,063)
Prepaid expenses and other assets(5,904)(12,248)
Accounts payable(2,472)3,059 
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent(46,454)25,791 
Lease liabilities(18,452)(13,268)
Origination of mortgage servicing rights(3,140)— 
Proceeds from sale of mortgage servicing rights1,662 — 
Origination of loans held for sale(3,949,442)(986,982)
Proceeds from sale of loans originated as held for sale4,000,582 993,070 
Net cash provided by (used in) operating activities40,491 (301,568)
Investing activities
Purchases of property and equipment(21,531)(27,492)
Purchases of investments(182,466)(146,274)
Sales of investments17,545 98,687 
Maturities of investments99,455 106,773 
Cash paid for acquisition, net of cash, cash equivalents, and restricted cash acquired(97,341)(608,000)
Net cash used in investing activities(184,338)(576,306)
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans11,528 22,772 
Tax payments related to net share settlements on restricted stock units(7,498)(27,066)
Borrowings from warehouse credit facilities3,938,265 942,993 
Repayments to warehouse credit facilities(3,989,407)(948,979)
Borrowings from secured revolving credit facility565,334 624,828 
Repayments to secured revolving credit facility(765,114)(448,996)
Cash paid for secured revolving credit facility issuance costs(733)(527)
Proceeds from issuance of convertible senior notes, net of issuance costs— 561,529 
Purchases of capped calls related to convertible senior notes— (62,647)
Conversions of convertible senior notes— (2,159)
Principal payments under finance lease obligations(855)(796)
Repurchases of convertible senior notes(83,614)— 
Other financing payables— (10,611)
Net cash (used in) provided by financing activities(332,094)650,341 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(94)(6)
Net change in cash, cash equivalents, and restricted cash(476,035)(227,539)
Cash, cash equivalents, and restricted cash:
Beginning of period718,281 945,820 
End of period
$242,246 $718,281 
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Redfin Corporation and Subsidiaries
Supplemental Financial Information and Business Metrics
(unaudited)
Three Months Ended
Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022Mar. 31, 2022Dec. 31, 2021Sep. 30, 2021Jun. 30, 2021Mar. 31, 2021
Monthly average visitors (in thousands)
43,847 50,785 52,698 51,287 44,665 49,147 48,437 46,202 
Real estate services transactions
Brokerage12,743 18,245 20,565 15,001 19,428 21,929 21,006 14,317 
Partner2,742 3,507 3,983 3,417 4,603 4,755 4,597 3,944 
Total15,485 21,752 24,548 18,418 24,031 26,684 25,603 18,261 
Real estate services revenue per transaction
Brokerage$10,914 $11,103 $11,692 $11,191 $10,900 $11,107 $11,307 $10,927 
Partner2,611 2,556 2,851 2,814 2,819 2,990 3,195 3,084 
Aggregate9,444 9,725 10,258 9,637 9,352 9,661 9,850 9,233 
U.S. market share by units(1)
0.76 %0.80 %0.82 %0.79 %0.78 %0.78 %0.77 %0.75 %
Revenue from top-10 Redfin markets as a percentage of real estate services revenue57 %58 %59 %57 %61 %62 %64 %62 %
Average number of lead agents
2,022 2,293 2,640 2,750 2,485 2,370 2,456 2,277 
RedfinNow homes sold474 530 423 617 600 388 292 171 
Revenue per RedfinNow home sold538,788 550,903 604,120 608,851 622,519 599,963 571,670 525,765 
Mortgage originations by dollars (in millions)$1,036 $1,557 $1,565 $159 $242 $258 $261 $227 
Mortgage originations by units (in ones)2,631 3,720 3,860 414 591 671 749 632 
Year Ended December 31,
20222021
Monthly average visitors (in thousands)49,654 47,113 
Real estate services transactions
Brokerage66,554 76,680 
Partner13,649 17,899 
Total80,203 94,579 
Real estate services revenue per transaction
Brokerage$11,269 $11,076 
Partner2,718 3,020 
Aggregate9,814 9,551 
U.S. market share by units(1)
0.80 %0.77 %
Revenue from top-10 markets as a percentage of real estate services revenue58 %62 %
Average number of lead agents2,426 2,396 
RedfinNow homes sold2,044 1,451 
Revenue per RedfinNow home sold$576,599 $594,268 
Mortgage originations by dollars (in millions)$4,317 $988 
Mortgage originations by units (in ones)10,625 2,643 
(1) Prior to the second quarter of 2022, we reported our U.S. market share based on the aggregate home value of our real estate services transactions, relative to the aggregate value of all U.S. home sales, which we computed based on the mean sale price of U.S. homes provided by the National Association of REALTORS® (“NAR”). Beginning in the second quarter of 2022, NAR (1) revised its methodology of computing the mean sale price, (2) restated its previously reported mean sale price beginning from January 2020 (and indicated that previously reported mean sale price prior to January 2020 is not comparable), and (3) discontinued publication of the mean sale price as part of its primary data set. Due to these changes, as of the second quarter of 2022, we report our U.S. market share based on the number of homes sold, rather than the dollar value of homes sold. Our market share by number of homes sold has historically been lower than our market share by dollar value of homes sold. We also stopped reporting the aggregate home value of our real estate services transactions.


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Redfin Corporation and Subsidiaries
Segment Reporting and Reconciliation of Adjusted EBITDA to Net Income (Loss)
(unaudited, in thousands)
Three Months Ended December 31, 2022
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Revenue$146,242 $260,629 $40,931 $28,420 $6,342 $(2,900)$479,664 
Cost of revenue119,913 278,761 9,647 30,936 5,872 (2,900)442,229 
Gross profit26,329 (18,132)31,284 (2,516)470 — 37,435 
Operating expenses
Technology and development25,052 3,794 15,360 798 616 1,421 47,041 
Marketing8,293 282 14,258 1,364 26 15 24,238 
General and administrative20,594 2,138 23,990 7,633 960 7,574 62,889 
Restructuring and reorganization— — — — — 21,798 21,798 
Total operating expenses53,939 6,214 53,608 9,795 1,602 30,808 155,966 
Loss from operations(27,610)(24,346)(22,324)(12,311)(1,132)(30,808)(118,531)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net— (1,924)291 50 88 58,080 56,585 
Net loss$(27,610)$(26,270)$(22,033)$(12,261)$(1,044)$27,272 $(61,946)
Three Months Ended December 31, 2022
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Net loss$(27,610)$(26,270)$(22,033)$(12,261)$(1,044)$27,272 $(61,946)
Interest income(1)
— (752)(23)(3,203)(88)(3,819)(7,885)
Interest expense(2)
— 2,666 — 2,981 — 2,136 7,783 
Income tax expense— 10 (288)(174)— 153 (299)
Depreciation and amortization4,569 552 10,133 1,013 274 927 17,468 
Stock-based compensation(3)
7,008 528 2,709 1,542 345 4,454 16,586 
Acquisition-related costs(4)
— — — — — — — 
Restructuring and reorganization(5)
— — — — — 21,798 21,798 
Impairment(6)
— — — — — 224 224 
Gain on extinguishment of convertible senior notes— — — — — (57,193)(57,193)
Adjusted EBITDA$(16,033)$(23,266)$(9,502)$(10,102)$(513)$(4,048)$(63,464)
(1) Interest income includes $3.2 million of interest income related to originated mortgage loans for the three months ended December 31, 2022.
(2) Interest expense includes $2.9 million of interest expense related to our warehouse credit facilities for the three months ended December 31, 2022.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June and October 2022 workforce reductions.
(6) Impairment consists of an impairment loss due to subleasing one of our operating leases.

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Three Months Ended December 31, 2021
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Revenue$224,732 $377,065 $38,923 $3,996 $3,347 $(5,006)$643,057 
Cost of revenue149,529 373,105 6,774 6,690 3,941 (5,006)535,033 
Gross profit75,203 3,960 32,149 (2,694)(594)— 108,024 
Operating expenses
Technology and development20,727 3,724 13,876 2,582 990 1,995 43,894 
Marketing11,923 466 9,450 149 104 305 22,397 
General and administrative23,842 2,828 25,530 2,620 823 11,319 66,962 
Restructuring and reorganization— — — — — — — 
Total operating expenses56,492 7,018 48,856 5,351 1,917 13,619 133,253 
Loss from operations18,711 (3,058)(16,707)(8,045)(2,511)(13,619)(25,229)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net— (1,723)2,777 (2,829)(1,773)
Net loss$18,711 $(4,781)$(13,930)$(8,044)$(2,510)$(16,448)$(27,002)
Three Months Ended December 31, 2021
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Net loss$18,711 $(4,781)$(13,930)$(8,044)$(2,510)$(16,448)$(27,002)
Interest income(1)
— (2)— (424)(1)(159)(586)
Interest expense(2)
— 1,725 — 431 — 2,214 4,370 
Income tax expense— — (2,177)— — 1,433 (744)
Depreciation and amortization3,583 554 9,307 387 247 525 14,603 
Stock-based compensation(3)
8,963 1,492 994 820 348 2,669 15,286 
Adjusted EBITDA$31,257 $(1,012)$(5,806)$(6,830)$(1,916)$(9,766)$5,927 
(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended December 31, 2021.
(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended December 31, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.







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Year ended December 31, 2022
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Revenue$787,076 $1,202,651 $155,910 $132,904 $23,684 $(17,783)$2,284,442 
Cost of revenue608,027 1,225,717 33,416 126,552 22,460 (17,783)1,998,389 
Gross profit179,049 (23,066)122,494 6,352 1,224 — 286,053 
Operating expenses
Technology and development105,196 17,326 59,899 6,034 3,591 4,204 196,250 
Marketing98,673 2,762 51,064 4,889 199 484 158,071 
General and administrative88,171 11,203 92,728 25,680 3,307 33,504 254,593 
Restructuring and reorganization— — — — — 40,469 40,469 
Total operating expenses292,040 31,291 203,691 36,603 7,097 78,661 649,383 
Loss from operations(112,991)(54,357)(81,197)(30,251)(5,873)(78,661)(363,330)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net(123)(7,607)1,389 (114)140 48,502 42,187 
Net loss$(113,114)$(61,964)$(79,808)$(30,365)$(5,733)$(30,159)$(321,143)
Year ended December 31, 2022
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Net loss$(113,114)$(61,964)$(79,808)$(30,365)$(5,733)$(30,159)$(321,143)
Interest income(1)
— (1,266)(24)(10,499)(143)(5,181)(17,113)
Interest expense(2)
— 8,859 — 8,580 — 8,778 26,217 
Income tax expense— 10 (1,077)— — 1,193 126 
Depreciation and amortization17,526 2,335 38,683 3,438 1,089 1,836 64,907 
Stock-based compensation(3)
36,652 5,238 11,319 4,132 1,496 9,420 68,257 
Acquisition-related costs(4)
— — — — — 2,437 2,437 
Restructuring and reorganization(5)
— — — — — 40,469 40,469 
Impairment(6)
— — — — — 1,136 1,136 
Gain on extinguishment of convertible senior notes— — — — — (57,193)(57,193)
Adjusted EBITDA$(58,936)$(46,788)$(30,907)$(24,714)$(3,291)$(27,264)$(191,900)
(1) Interest income includes $10.5 million of interest income related to originated mortgage loans for the year ended December 31, 2022.
(2) Interest expense includes $8.5 million of interest expense related to our warehouse credit facilities for the year ended December 31, 2022.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June and October 2022 workforce reductions.
(6) Impairment consists of an impairment loss due to subleasing one of our operating leases.

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Year ended December 31, 2021
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Revenue$903,334 $880,653 $121,877 $19,818 $13,609 $(16,526)$1,922,765 
Cost of revenue603,320 870,052 21,739 26,096 14,264 (16,526)1,518,945 
Gross profit300,014 10,601 100,138 (6,278)(655)— 403,820 
Operating expenses
Technology and development81,588 13,237 41,492 10,396 2,528 7,477 156,718 
Marketing98,746 1,889 36,174 561 209 1,161 138,740 
General and administrative84,655 9,593 71,943 8,306 2,288 41,530 218,315 
Restructuring and reorganization— — — — — — — 
Total operating expenses264,989 24,719 149,609 19,263 5,025 50,168 513,773 
Loss from operations35,025 (14,118)(49,471)(25,541)(5,680)(50,168)(109,953)
Interest income, interest expense, income tax benefit, and other expense, net(87)(4,261)3,301 1,382 340 
Net income (loss)$34,938 $(18,379)$(46,170)$(25,538)$(5,678)$(48,786)$(109,613)
Year ended December 31, 2021
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Net loss$34,938 $(18,379)$(46,170)$(25,538)$(5,678)$(48,786)$(109,613)
Interest income(1)
— (9)— (1,598)(2)(619)(2,228)
Interest expense(2)
— 4,271 — 1,666 — 7,490 13,427 
Income tax expense— — (2,699)— — (3,408)(6,107)
Depreciation and amortization13,282 1,888 27,607 1,406 761 1,962 46,906 
Stock-based compensation(3)
34,662 5,177 1,311 2,985 856 9,731 54,722 
Acquisition-related costs(4)
— — — — — 7,925 7,925 
Restructuring and reorganization(5)
— — — — — — — 
Adjusted EBITDA$82,882 $(7,052)$(19,951)$(21,079)$(4,063)$(25,705)$5,032 
(1) Interest income includes $1.6 million of interest income related to originated mortgage loans for the year ended December 31, 2021.
(2) Interest expense includes $1.7 million of interest expense related to our warehouse credit facilities for the year ended December 31, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisition of Rent.




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Redfin Corporation and Subsidiaries
Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance
(unaudited, in millions)

Three Months Ended March 31, 2023
LowHigh
Net loss$(116)$(105)
Depreciation and amortization17 17 
Stock-based compensation20 20 
Restructuring and reorganization
Gain on extinguishment of convertible senior notes(7)(7)
Adjusted EBITDA$(84)$(73)
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