Redfin Reports Mixed Q3 2024 Results with 3% Revenue Growth and Net Loss

Redfin Corporation reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance compared to the same periods in 2023. For the third quarter of 2024, total revenue reached $278.0 million, a 3% increase from $269.0 million in Q3 2023. The revenue breakdown included $175.1 million from real estate services, $51.7 million from rentals, $35.6 million from mortgage services, and $15.6 million from other sources. Gross profit for the quarter was $101.9 million, up from $98.3 million a year earlier, maintaining a gross margin of 36.6%.

Despite the revenue growth, Redfin reported a net loss from continuing operations of $33.8 million for Q3 2024, compared to a loss of $19.0 million in Q3 2023. The increase in losses was attributed to higher operating expenses, which rose to $128.8 million from $123.9 million in the prior year. Notably, general and administrative expenses increased due to higher legal settlements and services costs.

For the nine months ended September 30, 2024, Redfin's total revenue was $798.7 million, a 5% increase from $758.6 million in the same period of 2023. The gross profit for this period was $282.3 million, reflecting a 10% increase from $256.7 million in 2023. However, the net loss from continuing operations for the nine months was $128.4 million, compared to a loss of $103.5 million in the previous year.

The company’s total operating expenses for the nine months decreased to $407.4 million from $430.5 million in 2023, primarily due to reductions in technology and development expenses. However, restructuring and reorganization expenses increased, reflecting ongoing adjustments to align with market conditions.

Strategically, Redfin has focused on its core business by winding down its properties segment, which was completed in Q2 2023. This decision was made in response to rising capital costs and adverse market conditions affecting consumer demand for real estate services. The company has also faced legal challenges, including a settlement agreement with the National Association of Realtors for $418 million to resolve claims from home sellers, which is expected to impact future business practices.

As of September 30, 2024, Redfin reported cash and cash equivalents of $165.7 million, an increase from $149.8 million at the end of 2023. The company continues to navigate a challenging real estate market, influenced by higher mortgage rates and inflation, while implementing strategic changes to enhance operational efficiency and profitability.