Redfin (RDFN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 7% year-over-year to $295.2 million, with gross profit up 9% and market share rising to 0.77% of U.S. home sales.

• Net loss was $27.9 million, with net loss per share improving to $0.23 from $0.25 a year ago.

• Adjusted EBITDA improved to break-even from a $6.9 million loss in Q2 2023.

• Rentals and mortgage segments led growth, with rentals achieving its fourth straight quarter of positive adjusted EBITDA.

• CEO highlighted restructuring, digital investments, and integration of Rent and Redfin operations as drivers for future profitability.

Financial highlights

• Q2 2024 revenue was $295.2 million, up 7% year-over-year; gross profit rose 9% to $109.6 million, and gross margin improved to 37.1%.

• Net loss attributable to common stock was $28.1 million ($0.23 per share), compared to $27.7 million ($0.25 per share) in Q2 2023.

• Operating expenses declined 6% year-over-year to $138.5 million, reflecting lower technology, G&A, and restructuring costs.

• Cash and cash equivalents at quarter-end were $201.8 million.

• Trailing twelve months adjusted EBITDA loss improved to $33 million from $123 million a year ago.

Outlook and guidance

• Q3 2024 revenue expected between $273 million and $285 million, representing 1% to 6% year-over-year growth.

• Q3 net loss projected between $30 million and $22 million, compared to $19 million in Q3 2023.

• Q3 Adjusted EBITDA expected between $4 million and $12 million.

• Full-year 2024 expected to be roughly Adjusted EBITDA breakeven.

• Quarterly dividend of 30,640 shares of common stock to preferred shareholder planned.