Redfin Corp.’s stock
RDFN,
slid 10% in after-hours trade Thursday, after the real estate company said it will take longer to break even than expected after it lost market share in its latest quarter. Seattle-based Redfin had a net loss of $27.7 million, or 25 cents a share, for the second quarter, narrower than the loss of $74.9 million, or 73 cents a share, posted in the year-earlier period. Revenue fell to $275.6 million from $349.0 million a year ago. The FactSet consensus was for a loss of 34 cents and revenue of $276.0 million. CEO Glenn Kelman said the company now expects to break even on an adjusted EBITDA basis in the next 12 months, rather than in 2023, “which is a setback, but still we project that our adjusted EBITDA this year will improve by more than $140 million.” EBITDA, or earnings before interest taxes, depreciation and amortization, is an adjustment of an already-adjusted number that has nothing to do with net profit. “We lost market share due to one-time setbacks from agent layoffs and the closure of RedfinNow, but we expect to return to quarter-over-quarter gains in the second half, as Redfin.com has been competing better for traffic,” he said. The company is now expecting a third-quarter loss of $30 million to$21 million, after loss of $90 million a year ago. It expects revenue of $265 million to $279 million for the third quarter, down 13% to 9% from a year ago. The stock has gained 238% in the year to date, while the S&P 500
SPX,
has gained 17%.
