Seattle real estate brokerage firm Redfin Thursday Announce second quarter revenue 471 million US dollars, an increase of 121% over the same period last year. The surge in revenue was also accompanied by an increase in net loss-this quarter was 27.9 million US dollars, compared with 6.6 million US dollars in the same period last year.
The loss is related to Redfin’s recent acquisition of the bankrupt RentPath, which caused a loss of $13 million. Compared with the second quarter of last year, Redfin has also increased its marketing expenses. Redfin CEO Glenn Kelman pointed out that this is a “near death experience” for the real estate industry shaken by the COVID-19 outbreak. The company has also invested heavily in attracting and retaining real estate agents.
Redfin’s stock price closed at $60.76 on Thursday, with a market value of $6.3 billion. The stock rose slightly in after-hours trading.
Kelman said in a press release: “Even in a rapidly expanding market, Redfin’s market share in the second quarter was greater than at any time since our 2017 IPO.” The company said that by value, Its market share currently accounts for 1.18% of US existing home sales.
Kelman said that the real estate market is beginning to return to more normal levels, noting that online interest in housing began to weaken in April as families began to celebrate graduation and vacations. But he also said that the bidding war has forced some buyers to withdraw from the market, which is “resistance to out-of-control prices.”
“The market is still hot, but not as hot as it used to be,” Kelman said, adding that the number of homes for sale is increasing, and popular markets like Bend, Oregon and Phoenix are starting to see prices fall.
The company continues to expand its RedfinNow home buying services, and recently expanded to Tucson, Boston and Portland. Compared with the whole year of last year, it purchased 40% of the houses in the second quarter. The company believes that when competing with the company, it uses machine learning to determine which houses to buy and its expertise in home improvement Help develop its direct purchase services like OpenDoor and Zillow Group.
Redfin expects revenue in the third quarter of 530 million to 541 million U.S. dollars, and a net loss of 20 to 24 million U.S. dollars. RentPath is expected to account for US$40 million to US$41 million in revenue and approximately US$17 million of these losses in the third quarter.Red fin fish Recently clicked Former ParkMobile CEO Jon Ziglar serves as the CEO of RentPath.
Redfin’s cross-city rival Zillow Group also announced quarterly results on Thursday, reporting revenue of US$1.3 billion and consolidated net income of US$10 million.