Segment Reporting and Revenue

12 Months Ended

Dec. 31, 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 four reportable segments, real estate services, properties, rentals, and mortgage. 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. Our mortgage operating segment does not meet the reportable segment quantitative thresholds set forth in ASC 280, but due to our anticipated acquisition of Bay Equity, we have moved our mortgage segment from the "other" segment and now present it as a standalone reportable segment. We have reflected this change to the earliest period presented for comparability purposes. These changes had no impact on our previously reported consolidated net revenue, (loss) income from operations, net loss, or net loss per share.

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, mortgage 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,
	2021		2020		2019
Revenue
Real estate services (brokerage)	$	849,288	$	607,513	$	496,480
Real estate services (partner)	54,046		43,695		27,060
Properties	880,653		209,686		240,507
Rentals	121,877		—		—
Mortgage	19,818		15,835		6,097
Other	13,609		12,377		11,537
Intercompany eliminations	(16,526)		(3,013)		(1,885)
Total	$	1,922,765	$	886,093	$	779,796
Cost of revenue
Real estate services	603,320		417,140		373,150
Properties	870,052		214,382		245,189
Rentals	21,739		—		—
Mortgage	26,096		15,627		9,978
Other	14,264		9,847		9,261
Intercompany eliminations	(16,526)		(3,013)		(1,885)
Total	$	1,518,945	$	653,983	$	635,693
Gross Profit
Real estate services	300,014		234,068		150,390
Properties	10,601		(4,696)		(4,682)
Rentals	100,138		—		—
Mortgage	(6,278)		208		(3,881)
Other	(655)		2,530		2,276
Total	$	403,820	$	232,110	$	144,103
Real estate services, properties, mortgage, and other operating expenses	367,269		231,318		223,349
Rentals operating expenses	146,504		—		—
Interest income	635		2,074		7,146
Interest expense	(11,762)		(19,495)		(8,928)
Income tax benefit	6,107		—		—
Other income (expense), net	5,360		(1,898)		223
Net loss	$	(109,613)	$	(18,527)	$	(80,805)