Redfin Q3 2024: Net Losses Continue for American Portal/Brokerage Operator

American portal and brokerage operator Redfin racked up its fifteenth consecutive quarter of net losses with no end in sight for the beleaguered broker in this quarter's financial statement.

Highlights include:

• Revenues increased 3% year-on-year, rising to $278.0 million for the quarter
• Net losses widened to $33.8 million, a 75% increase from Q3 2023's net loss of $19.0 million
• Adjusted EBITDA was $3.9 million
• Market share dips slightly, from 0.78% in 2023 to 0.76% in 2024 (for existing home sales, by units)

Glenn Kelman, CEO at Redfin, said:

"Redfin’s third-quarter results were within our guidance range, and we’re now forecasting fourth-quarter growth in market share and revenues.

"Already, shifting our real estate agents to a commissions-based model has improved close rates, with industry-leading attach rates for mortgage and title services. And now, the growth in our digital businesses and our reductions in headquarters costs will let us fund more demand-generation. With plans to hire hundreds of agents between now and next spring, we’re emerging from a year of record low U.S. home sales ready to go on the attack."

Redfin has made a net loss of over $128 million so far this year at an adjusted EBITDA loss of just over $23.6 million.

The company has also seen YoY traffic to its portal hit in the past 12 months, with 2,000+ fewer visits for the quarter than a year ago, matching similar drops in Q1 and Q2.

Redfin's Mortgage segment experienced marginal growth compared to the same period in 2023, but this increasingly important segment of the business still racked up a loss of more than $4.7 million.

Redfin is forecasting revenues of between $237 million and 247 million in Q4, of which mortgage revenue will generate between $28 million and $32 million.

Net losses are forecasted to fall between -$25 million and -$32 million for the quarter.

The company's struggles go most of the way in explaining why Redfin made circa 100 members of staff redundant in August.