Redfin Generates Nearly $600M in Q1 Revenue as Market Share Grows

Revenue, market share, internet users and homes sold by RedfinNow have all increased. But the company announced a net loss of $90.8 million on Thursday during a first-quarter earnings call.

Redfin posted revenue of $597.3 million in the first three months of this year, the company said in its first-quarter earnings report, marking a continuing trend for the online brokerage portal. exceeding investors’ expectations and reporting a net loss.

The company offered an upbeat outlook in a statement shortly before an investor call on Thursday afternoon, saying its market share rose to 1.18% of U.S. existing home sales by value in the quarter. Portal app and website users also grew by 11% to 51 million monthly users.

“Redfin exceeded our first-quarter revenue and earnings guidance by tens of millions of dollars,” said Redfin CEO Glenn Kelman. “Online traffic has accelerated dramatically. Our core business has gained market share and we expect these gains to accelerate throughout the year. »

The company said in the earnings report, released after markets closed on Thursday, that its gross profit was $72.5 million, although it posted a net loss of $90.8 million after taking into account its expenditure on ordinary shares. The company’s real estate services accounted for $23.7 million of its gross profit, down 41% year-over-year.

The company’s iBuying arm, RedfinNow, also said it sold 617 homes, the highest number ever in the history of buying and reselling homes through the program.

“RedfinNow had another explosive quarter,” Kelman said. “We closed the acquisition of Bay Equity on April 1 and are already on course to almost double the percentage of Redfin homebuyers who obtain a Redfin loan, or approximately double each client’s gross profit. We are more optimistic than ever about our strategy of driving customer demand by making a comprehensive destination for real estate information, and making more money from every customer by becoming a one-stop-shop for real estate. buying or selling. a house.”

The company saw an increase in revenue over the past year, rising from $268 million in the first three months of 2021.

At the same time, it continued to post net losses. Analysts expected Redfin to earn $551.1 million in the quarter. Its reported actual earnings marked a 123% increase from the same period last year.

In the last three of 2021, the company raised $643.1 million, a 163% spike from the same period a year earlier. Despite this surge in revenue, the company posted a net loss of $27 million to close last year.

Thursday’s report gave a glimpse of corporate performance amid the start of a rapid rise in mortgage rates, which topped 5.5% this week and climbed much faster than analysts had expected this week. year.

This is a developing story.

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