Segment Reporting and Revenue

12 Months Ended

Dec. 31, 2020

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, substantially 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 each real estate services transaction 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:


	Year Ended December 31,
	2020		2019		2018
Real estate services
Brokerage revenue	$	607,513	$	496,480	$	406,293
Partner revenue	43,695		27,060		25,875
Total real estate services revenue	651,208		523,540		432,168
Cost of revenue	417,140		373,150		309,069
Gross profit	$	234,068	$	150,390	$	123,099
Properties
Revenue	209,686		240,507		44,993
Cost of revenue	214,382		245,189		46,613
Gross profit	$	(4,696)	$	(4,682)	$	(1,620)
Other
Revenue	28,212		17,634		9,882
Cost of revenue	25,474		19,239		11,937
Gross profit	$	2,738	$	(1,605)	$	(2,055)
Intercompany eliminations
Revenue	(3,013)		(1,885)		(123)
Cost of revenue	(3,013)		(1,885)		(123)
Gross profit	$	—	$	—	$	—
Consolidated
Revenue	886,093		779,796		486,920
Cost of revenue	653,983		635,693		367,496
Gross profit	$	232,110	$	144,103	$	119,424
Operating expenses	231,318		223,349		163,358
Interest income	2,074		7,146		5,416
Interest expense	(19,495)		(8,928)		(3,681)
Other income (loss), net	(1,898)		223		221
Net loss	$	(18,527)	$	(80,805)	$	(41,978)