Redfin found itself amid mixed financial results for the second quarter of 2022. According to its earnings report, the company’s Q2 revenue was $606.9 million, an increase of 29 percent compared to the second quarter of 2021.
Gross profit, however, was $118 million, a decrease of 6 percent year-over-year.
Real estate services gross profit was $74.1 million, also a decrease, down 16 percent year-over-year, and real estate services gross margin was 29 percent, compared to 35 percent in the second quarter of 2021.
“The housing market took a turn for the worse in the second quarter, but I have never been more proud of how this company has responded: we cut costs, grew traffic, accelerated share gains and loyalty sales, lowered voluntary attrition and, for the first time since April 2020, improved the rate at which people buying homes stuck with a Redfin agent,” said Redfin CEO Glenn Kelman. “Our rentals business recorded its first quarter-over-quarter revenue gain since 2017, and re-launched itself across every platform as Rent.
“Best of all, the rate at which Redfin homebuyers got a Redfin mortgage hit 15 percent in July, a near doubling of the all-time high before 2022,” Kelman continued. “For the quarter, title attach rates more than doubled year over year. There will be more market ups and downs in the road ahead, but our whole engine to drive traffic, brokerage share, customer value and monetization is running more efficiently than ever.”
Turning toward outlook, Redfin expects that for the third quarter of 2022, total revenue will fall between $590 million-$627 million, representing a year-over-year growth between 9-16 percent compared to the third quarter of 2021.