XML 53 R8.htm IDEA: XBRL DOCUMENT v3.20.1
Segment Reporting and Revenue
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting and Revenue Segment Reporting and Revenue

In operation of the business, our management, including our chief operating decision maker, who is also our chief executive officer, evaluates the performance of our operating segments based on revenue and gross profit. We do not analyze discrete segment balance sheet information related to long-term assets, all of which are located in the United States. All other financial information is presented on a consolidated basis. We have five operating segments and two reportable segments, real estate services and properties.

We generate revenue primarily from commissions and fees charged on real estate services transactions closed by our lead agents or partner agents, and from the sale of homes. Our key revenue components are brokerage revenue, partner revenue, properties revenue, and other revenue.

Information on each of the reportable and other segments and reconciliation to consolidated net loss is as follows:
 
Three Months Ended March 31,
 
2020
 
2019
Real estate services
 
 
 
Brokerage revenue
$
102,351

 
$
81,314

Partner revenue
6,285

 
4,576

Total real estate services revenue
108,636

 
85,890

Cost of revenue
93,562

 
80,784

Gross profit
15,074

 
5,106

Properties
 
 
 
Revenue
79,098

 
21,373

Cost of revenue
79,299

 
22,993

Gross profit
(201
)
 
(1,620
)
Other
 
 
 
Revenue
4,250

 
3,047

Cost of revenue
6,244

 
3,780

Gross profit
(1,994
)
 
(733
)
Intercompany eliminations
 
 
 
Revenue
(989
)
 
(169
)
Cost of revenue
(989
)
 
$
(169
)
Gross profit
—

 
—

Consolidated
 
 
 
Revenue
190,995

 
110,141

Cost of revenue
178,116

 
107,388

Gross profit
12,879

 
2,753

Operating expenses
70,309

 
70,205

Interest income
1,103

 
2,316

Interest expense
(2,444
)
 
(2,136
)
Other income (expense), net
(1,346
)
 
92

Net loss
$
(60,117
)
 
$
(67,180
)


Revenue earned but not received is recorded as accounts receivable on our consolidated balance sheets, net of an allowance for expected credit losses. Accounts receivable consists primarily of
commission revenue and proceeds from the sale of homes in-transit through the escrow process, and therefore it is not estimated. Based on the regulated environment in which we operate and the nature of our receivables, we do not expect material credit losses, and write-offs were immaterial in the periods presented.