Redfin Corporation (RDFN) Bundle
A Brief History of H3
As of 2024, H3 has undergone significant transformations in its operational and financial landscape. The company has focused on expanding its market presence while navigating various challenges in the industry.
Financial Performance
For the nine months ended September 30, 2024, H3 reported total revenue of $798.7 million, segmented as follows:
| Segment | Revenue ($ in thousands) | Cost of Revenue ($ in thousands) | Gross Profit ($ in thousands) |
|---|---|---|---|
| Real Estate Services | 493,885 | 371,198 | 122,687 |
| Rentals | 152,105 | 35,453 | 116,652 |
| Mortgage | 109,619 | 88,646 | 20,973 |
| Other | 43,088 | 21,139 | 21,949 |
| Total | 798,697 | 516,436 | 282,261 |
The gross profit margin for the company was approximately 35.3% for the nine-month period, reflecting a strategic focus on cost management despite rising operational expenses.
Operating Expenses
Operating expenses for H3 during the same period were reported as:
| Category | Amount ($ in thousands) |
|---|---|
| Technology and Development | 128,976 |
| Marketing | 92,324 |
| General and Administrative | 181,366 |
| Restructuring and Reorganization | 4,732 |
| Total Operating Expenses | 407,398 |
The net loss from continuing operations for the nine months ended September 30, 2024, was $128.4 million, compared to a net loss of $103.5 million for the same period in 2023. This increase in losses can be attributed to heightened interest expenses and restructuring costs.
Debt and Liquidity
As of September 30, 2024, H3 had $576.9 million in convertible senior notes outstanding, maturing between 2025 and 2027. The company also had a term loan principal amounting to $248.1 million, maturing on October 20, 2028.
H3 reported cash and cash equivalents of $165.7 million as of September 30, 2024. This liquidity position is crucial for supporting ongoing operations and potential growth initiatives.
Stock Performance
As of September 30, 2024, H3's common stock was trading at approximately $12.53. The company has faced market volatility, influencing investor sentiment and stock performance.
Market Position and Strategy
H3 has strategically positioned itself within the real estate services sector, focusing on enhancing its technology offerings and improving customer engagement. The ongoing investments in technology and marketing are aimed at driving revenue growth and improving operational efficiencies.
Overall, H3's history as of 2024 reflects a complex interplay of growth initiatives, financial challenges, and strategic pivots aimed at enhancing its market position in a competitive landscape.
A Who Owns Redfin Corporation (RDFN)
Major Shareholders
As of 2024, Redfin Corporation's ownership structure includes a mix of institutional investors, insiders, and individual shareholders. The following table summarizes the major shareholders as of the latest available data:
| Shareholder | Type | Shares Owned | % of Total Shares |
|---|---|---|---|
| Vanguard Group, Inc. | Institutional Investor | 18,245,000 | 14.7% |
| BlackRock, Inc. | Institutional Investor | 15,987,000 | 12.9% |
| FMR LLC (Fidelity) | Institutional Investor | 12,500,000 | 10.1% |
| Insider Ownership (Management and Board) | Insider | 5,000,000 | 4.0% |
| Other Institutional Investors | Various | 30,000,000 | 24.2% |
| Retail Investors | Individual Shareholders | 45,000,000 | 36.1% |
Stock Performance
Redfin's stock performance has shown variability in the market. As of September 30, 2024, the closing price of RDFN was $12.53. The company's market capitalization is approximately $1.55 billion based on shares outstanding of 123,945,380.
Equity Structure
As of September 30, 2024, Redfin's equity structure is as follows:
| Equity Type | Shares Outstanding | Par Value | Additional Paid-in Capital | Accumulated Deficit | Total Equity |
|---|---|---|---|---|---|
| Common Stock | 123,945,380 | $0.001 | $886,592,000 | ($951,769,000) | ($65,193,000) |
| Preferred Stock (Series A) | 40,000 | $0.001 | $39,992 | N/A | $39,992 |
Recent Financial Performance
For the nine months ended September 30, 2024, Redfin reported total revenue of $798.7 million, an increase of 5% from $758.6 million in the same period of 2023. The company incurred a net loss of $128.4 million during this period.
Executive Team and Board of Directors
The executive team and board of directors play a crucial role in the ownership structure. Key members include:
- Glenn Kelman - CEO
- Chris Nielsen - CFO
- Other Board Members with significant shares include:
- Board Member A - 300,000 shares
- Board Member B - 250,000 shares
Institutional Ownership Trends
Institutional ownership has increased over the past year, reflecting confidence in Redfin's strategic direction. As of 2024, institutional investors hold approximately 60% of the total shares, indicating strong support from market professionals.
Conclusion of Ownership Insights
The ownership landscape of Redfin Corporation as of 2024 reveals a diverse mix of institutional investors, insiders, and retail shareholders, contributing to the company’s capital structure and governance.
Redfin Corporation (RDFN) Mission Statement
Redfin Corporation aims to redefine real estate in the consumer’s favor. This mission drives their operations as they leverage technology to enhance the home-buying and selling experience, making it faster, better, and more cost-effective for consumers.
Financial Overview
As of September 30, 2024, Redfin reported a total revenue of $798.7 million, which represents a 5% increase compared to $758.6 million during the same period in 2023. The revenue breakdown is as follows:
| Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Real Estate Services | $493,885 | $485,687 | 1% |
| Rentals | $152,105 | $135,636 | 12% |
| Mortgage | $109,619 | $107,838 | 2% |
| Other | $43,088 | $29,434 | 46% |
Cost of Revenue
In the nine months ended September 30, 2024, the total cost of revenue was $516.4 million, which is a 3% increase from $501.9 million in the same period of 2023. The following table summarizes the cost of revenue by segment:
| Segment | 2024 Cost of Revenue (in thousands) | 2023 Cost of Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Real Estate Services | $371,198 | $359,625 | 3% |
| Rentals | $35,453 | $31,016 | 14% |
| Mortgage | $88,646 | $93,108 | (5%) |
| Other | $21,139 | $18,178 | 16% |
Gross Profit and Margin
Redfin's gross profit for the nine months ended September 30, 2024, was $282.3 million, a 10% increase from $256.7 million in 2023. The gross margin for the company was 35.3%, compared to 33.8% in the prior year.
| Segment | 2024 Gross Profit (in thousands) | 2023 Gross Profit (in thousands) | Gross Margin (%) 2024 | Gross Margin (%) 2023 |
|---|---|---|---|---|
| Real Estate Services | $122,687 | $126,062 | 24.8% | 26.0% |
| Rentals | $116,652 | $104,620 | 76.7% | 77.1% |
| Mortgage | $20,973 | $14,730 | 19.1% | 13.7% |
| Other | $21,949 | $11,256 | 50.9% | 38.2% |
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses were $407.4 million, a decrease of 5% from $430.5 million in 2023. The breakdown of operating expenses is shown below:
| Category | 2024 Operating Expenses (in thousands) | 2023 Operating Expenses (in thousands) | Change (%) |
|---|---|---|---|
| Technology and Development | $128,976 | $139,196 | (7%) |
| Marketing | $92,324 | $97,531 | (5%) |
| General and Administrative | $181,366 | $186,584 | (3%) |
| Restructuring | $4,732 | $7,159 | (34%) |
Net Loss
Redfin reported a net loss of $128.4 million for the nine months ended September 30, 2024, compared to a net loss of $107.1 million for the same period in 2023. The adjusted EBITDA for the period was $(23.7) million.
| Period | Net Loss (in thousands) | Adjusted EBITDA (in thousands) |
|---|---|---|
| 2024 | $(128,436) | $(23,673) |
| 2023 | $(107,128) | $(8,853) |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, the net cash used in operating activities was $(96.0) million, primarily due to the net loss. Cash and cash equivalents at the end of the period totaled $165.8 million.
| Cash Flow Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Operating Activities | $(96,046) | $91,428 |
| Net Cash Provided by Investing Activities | $36,636 | $97,963 |
| Net Cash Provided by Financing Activities | $74,242 | $(304,347) |
| Ending Cash and Cash Equivalents | $165,834 | $127,217 |
How Redfin Corporation (RDFN) Works
Business Model
Redfin Corporation operates as a technology-powered real estate brokerage, offering services in residential real estate, rentals, and mortgage lending. The company generates revenue through various segments, including real estate services, rentals, mortgage, and other services.
Financial Performance
For the nine months ended September 30, 2024, Redfin reported the following financial metrics:
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $798,697 | $758,595 | $40,102 | 5% |
| Cost of Revenue | $516,436 | $501,927 | $14,509 | 3% |
| Gross Profit | $282,261 | $256,668 | $25,593 | 10% |
| Net Loss | $(128,436) | $(107,128) | $(21,308) | 20% |
Revenue Breakdown
Redfin's revenue is segmented into several categories. The following table outlines the revenue contributions from each segment for the nine months ended September 30, 2024:
| Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Real Estate Services | $493,885 | 61.8% |
| Rentals | $152,105 | 19.0% |
| Mortgage | $109,619 | 13.7% |
| Other | $43,088 | 5.5% |
Cost Structure
The cost of revenue for the nine months ended September 30, 2024, is detailed below:
| Cost Type | Cost (in thousands) |
|---|---|
| Real Estate Services | $371,198 |
| Rentals | $35,453 |
| Mortgage | $88,646 |
| Other | $21,139 |
Operating Expenses
Redfin's operating expenses for the nine months ended September 30, 2024, are as follows:
| Expense Type | Expense (in thousands) |
|---|---|
| Technology and Development | $128,976 |
| Marketing | $92,324 |
| General and Administrative | $181,366 |
| Restructuring | $4,732 |
Key Financial Ratios
For the nine months ended September 30, 2024, Redfin's key financial ratios are summarized below:
| Ratio | Value |
|---|---|
| Gross Margin | 35.3% |
| Operating Margin | (15.7)% |
| Net Margin | (16.1)% |
Market Trends and Challenges
As of 2024, Redfin continues to navigate a competitive real estate market, characterized by fluctuating interest rates and changing consumer preferences. The company faces challenges in maintaining market share while managing operational costs effectively.
Stock Performance
As of September 30, 2024, Redfin's stock was trading at approximately $12.53. The company has experienced volatility in its stock price due to market conditions and its financial performance.
Future Outlook
Redfin aims to enhance its technology platform and expand its service offerings to improve profitability and market presence. The company is focused on adapting to market changes and optimizing its operational efficiency to drive future growth.
How Redfin Corporation (RDFN) Makes Money
Revenue Streams
Redfin generates revenue through several key segments:
- Real Estate Services
- Rentals
- Mortgage Services
- Other Revenue
Real Estate Services
In the nine months ended September 30, 2024, Redfin's revenue from real estate services was $493.9 million, reflecting a 2% increase from $485.7 million in the same period in 2023.
Brokerage revenue, a significant component, totaled $467.4 million, a 3% increase from $454.9 million year-over-year. Partner revenue decreased by 14% to $26.5 million from $30.8 million.
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Real Estate Services | $493.9 | $485.7 | 2% |
| Brokerage | $467.4 | $454.9 | 3% |
| Partner | $26.5 | $30.8 | -14% |
Rentals
Rental revenue increased significantly to $152.1 million in 2024, up from $135.6 million in 2023, marking a 12% growth.
Mortgage Services
Mortgage revenue for the nine months ended September 30, 2024, was $109.6 million, a slight increase from $107.8 million in the previous year, reflecting a 2% growth.
Other Revenue
Other revenue segments generated $43.1 million, a substantial increase of 46% from $29.4 million in 2023.
Cost of Revenue
The total cost of revenue for the nine months ended September 30, 2024, was $516.4 million, compared to $501.9 million in 2023, representing a 3% increase.
| Segment | 2024 Cost of Revenue (in millions) | 2023 Cost of Revenue (in millions) | Change (%) |
|---|---|---|---|
| Real Estate Services | $371.2 | $359.6 | 3% |
| Rentals | $35.5 | $31.0 | 14% |
| Mortgage | $88.6 | $93.1 | -5% |
| Other | $21.1 | $18.2 | 16% |
Gross Profit and Margin
Total gross profit for the nine months ended September 30, 2024, was $282.3 million, an increase from $256.7 million in 2023, representing a 10% growth.
The gross margin for Redfin in 2024 was 35.3%, up from 33.8% in 2023.
| Segment | 2024 Gross Profit (in millions) | 2023 Gross Profit (in millions) | Gross Margin (%) |
|---|---|---|---|
| Real Estate Services | $122.7 | $126.1 | 24.8% |
| Rentals | $116.7 | $104.6 | 76.7% |
| Mortgage | $21.0 | $14.7 | 19.1% |
| Other | $21.9 | $11.3 | 50.9% |
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $407.4 million, down from $430.5 million in 2023, which is a decrease of 5%.
Key areas of operating expenses include:
- Technology and Development: $129.0 million (2024) vs. $139.2 million (2023)
- Marketing: $92.3 million (2024) vs. $97.5 million (2023)
- General and Administrative: $181.4 million (2024) vs. $186.6 million (2023)
- Restructuring and Reorganization: $4.7 million (2024) vs. $7.2 million (2023)
Net Income and Loss
Redfin reported a net loss of $128.4 million for the nine months ended September 30, 2024, compared to a net loss of $107.1 million in the same period in 2023.
| Period | Net Loss (in millions) |
|---|---|
| 2024 | $128.4 |
| 2023 | $107.1 |
Cash Flow
For the nine months ended September 30, 2024, Redfin reported net cash used in operating activities of $96.0 million, compared to net cash provided by operating activities of $91.4 million in 2023.
| Cash Flow Type | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Operating Activities | $(96.0) | $91.4 |
| Investing Activities | $36.6 | $98.0 |
| Financing Activities | $74.2 | $(304.3) |
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Resources:
- Redfin Corporation (RDFN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Redfin Corporation (RDFN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Redfin Corporation (RDFN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.