The corporate’s earnings report noticed income climb 7 % to $295.2 million between April and June, nevertheless it additionally misplaced $27.9 million — only a hair above its Q2 2023 loss.
Inman Join is transferring from Las Vegas to San Diego in 2025 and it’ll be greater, higher and bolder than ever earlier than. Be a part of us for Inman Join San Diego on July 30-Aug. 1, 2025 with the brightest minds in actual property to form the way forward for the trade. Reserve your spot at this time for an unique low cost.
Redfin spent the second quarter of 2024 largely treading water, with a brand new report displaying that the corporate’s income rose at the same time as losses and internet visitors remained practically flat.
In complete, the portal and brokerage firm earned $295.2 million in income between April and June of this yr, in accordance with a Q2 earnings report. That’s a 7 % enhance in comparison with the identical interval in 2023. On the identical time, Redfin suffered a internet lack of $27.9 million, only a hair greater than the $27.4 million it misplaced one yr earlier.
The report additionally reveals that Redfin’s apps and web site attracted “nearly 52 million average monthly users.” In Q2 of 2023, the corporate additionally had 52 million common month-to-month customers.
Glenn Kelman
Within the report, Redfin CEO Glenn Kelman celebrated the outcomes, saying that “in a still-declining market, Redfin grew revenues, profits and market share.”
The report reveals that gross revenue — a determine that calculates earnings after manufacturing prices, however earlier than different bills corresponding to curiosity or taxes — grew 9 % yr over yr to $109.6 million. Redfin’s market share grew to 0.77 % of U.S. present house gross sales by models, the report provides, up from 0.75 % a yr earlier.
Heading into Tuesday’s earnings, Redfin shares have been buying and selling within the low $7 vary. That was down barely for the day and week, and down in comparison with a yr in the past when shares have been buying and selling within the low $10 vary.
Shares fluctuated in after-hours buying and selling following the publication of Tuesday’s earnings report however finally trended down.
Credit score: Google
As of Tuesday afternoon, Redfin had a market cap of about $848 million.
Redfin final reported earnings in Could. On the time, the corporate revealed that income jumped 5 % yr over yr within the first quarter of the yr to $225.5 million. The corporate additionally misplaced $66.8 million within the quarter, a rise in comparison with $60.8 million within the first quarter of 2023.
Throughout a name with traders Tuesday afternoon, Kelman touted the expansion of Redfin Subsequent, a program that launched earlier this yr and which shifts brokers from a wage mannequin to a fee mannequin. Redfin initially rolled out this system in 4 California markets however has since expanded it to dozens of others.
Kelman stated through the name that in 2025 this system might be rolled out in all the firm’s markets and that it has helped with recruiting. The report provides that “to date, Redfin has signed more than 200 top-producing agents to join the brokerage under Redfin Next.”
Whereas fielding calls from Wall Avenue analysts through the name, Kelman added that “the next dimension for us is teams.” He defined that Redfin hopes to construct groups round its top-producing brokers, which can, in flip, enable the corporate to “develop new-to-the-industry agents” underneath these prime producers.
“We think that’ll let us scale up hiring,” he added.
Groups have been a significant actual property development in recent times and have performed a task within the rise of each established corporations corresponding to Coldwell Banker in addition to upstarts corresponding to eXp Realty. Nonetheless, Redfin — maybe due to its now-disappearing salaried agent mannequin — has been largely absent from that dialog. Kelman’s feedback, nonetheless, counsel the corporate now desires to hop extra overtly onto the groups bandwagon.
Kelman additionally speculated through the name that Redfin could have a recruiting benefit due to the coming trade guidelines adjustments that resulted from antitrust litigation. The adjustments “may help with recruiting by encouraging more agents to consider a brokerage built to compete on price,” Kelman argued.
Later through the name, Kelman mentioned the market, saying that it’s “significantly shifting in buyers’ favor.” That’s due to rising stock and falling charges, although he added that to this point these decrease charges haven’t spurred considerably greater charges of homebuying.
“It has been the first time in years that a major interest rate drop had no impact on homebuying demand,” Kelman stated, including later that “I can’t remember a time where rates came down this far this fast and the market has been so muted in its response.”
Kelman speculated that the “muted” response might be as a result of nervousness concerning the coming presidential election or concerning the financial system. Or, he continued, it might be that current charge drops merely got here “too late” within the yr when many individuals are on trip or now not being attentive to the housing market. Nonetheless, he stated it’s “inconceivable to me that there won’t be a reaction” and that if “rates keep falling, U.S. home sales should increase.”
“I believe the housing market is about to get better,” Kelman stated, “and that Redfin is about to take share.”
Replace: This story was up to date after publication with further info from Redfin’s earnings report, in addition to with commentary from the corporate’s investor name.
