Segment Reporting and Revenue

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Reporting and Revenue

Segment Reporting and Revenue

In operation of the business, our management, including our chief operating decision maker ("CODM"), 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 six operating segments and three reportable segments, real estate services, properties, and rentals. As a result of our acquisition of RentPath, we added the rentals segment and determined it is a reportable segment because RentPath met the quantitative thresholds under ASC 280, Segment Reporting. Our CODM evaluates the rentals segment as a stand-alone business; accordingly, we are separately reporting the segment's operating expenses from our consolidated operating expenses.

We generate revenue primarily from commissions and fees charged on each real estate services transaction closed by our lead agents or partner agents, from the sale of homes, and from subscription-based product offerings for our rentals business. Our key revenue components are brokerage revenue, partner revenue, properties revenue, rentals revenue, and other revenue.

Information on each of the reportable and other segments and reconciliation to consolidated net (loss) income is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenue
Real estate services (brokerage)	$	243,575	$	194,375	$	637,532	$	425,269
Real estate services (partner)	14,220		15,478		41,070		28,269
Properties	238,417		19,005		503,588		170,287
Rentals	40,406		—		82,954		—
Other	8,206		8,503		26,084		19,999
Intercompany eliminations	(4,750)		(445)		(11,520)		(2,248)
Total	$	540,074	$	236,916	$	1,279,708	$	641,576
Cost of revenue
Real estate services	161,449		117,944		453,790		300,305
Properties	238,397		20,460		496,948		173,107
Rentals	7,395		—		14,965		—
Other	10,281		5,885		29,729		18,422
Intercompany eliminations	(4,750)		(445)		(11,520)		(2,248)
Total	$	412,772	$	143,844	$	983,912	$	489,586
Gross profit
Real estate services	96,346		91,909		224,812		153,233
Properties	20		(1,455)		6,640		(2,820)
Rentals	33,011		—		67,989		—
Other	(2,075)		2,618		(3,645)		1,577
Total	$	127,302	$	93,072	$	295,796	$	151,990
Real estate services, properties, and other operating expenses	96,910		56,063		281,569		176,837
Rentals operating expenses	50,286		—		98,950		—
Interest income	178		319		472		1,859
Interest expense	(3,672)		(2,522)		(7,822)		(7,631)
Income tax benefit	311		—		5,363		—
Other income (expense), net	4,128		(640)		4,099		(1,943)
Net (loss) income	$	(18,949)	$	34,166	$	(82,611)	$	(32,562)