It’s earnings report season for the real estate industry—and we’re keeping you up to date on all the latest numbers!
It was a tough quarter for Redfin, which has reported significant declines in both revenue and gross profit. According to its earnings report, Q4 revenue was $479.7 million, a decrease of 25 percent compared to the fourth quarter of 2021. Gross profit was $37.4 million, a decrease of 65 percent year-over-year.
Real estate services gross profit was $26.3 million, a decrease of 65 percent year-over-year. Net loss was $61.9 million in Q4, compared to a net loss of $27 million in the fourth quarter of 2021.
“Redfin in the fourth quarter of 2022 set ourselves up to earn adjusted EBITDA in 2023, which would be an improvement in profits of nearly $200 million, even in a major housing downturn,” said Redfin CEO Glenn Kelman. “We shifted to more digital-margin revenue, lowered expenses, increased our share of online real estate traffic, and improved the quality of our sales force. The discipline to make adjusted EBITDA this year can make us very profitable when the housing market recovers. We also bought $143 million of debt for $84 million in cash. We have either sold or accepted an offer to sell all but 19 of our RedfinNow homes. Our revenues and net income exceeded the guidance we gave investors in our November earnings report.”
Looking at the full year, Redfin revenue in 2022 was $2,284.4 million, an increase of 19 percent year-over-year. Gross profit was $286.1 million, a decrease of 29 percent year-over-year.
Real estate services gross profit was $179.0 million, a decrease of 40 percent year-over-year. Net loss was $321.1 million, compared to a net loss of $109.6 million in 2021.