Segment Reporting and Revenue

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Reporting and Revenue

Segment Reporting and RevenueIn its operation of our 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. 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 (see Note 16 for details on the closing of our acquisition of Bay Equity), beginning in the fourth quarter of 2021, we 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 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:

	Three Months Ended March 31,
	2022		2021
Revenue
Real estate services (brokerage)	$	167,872	$	156,447
Real estate services (partner)	9,615		12,162
Properties	379,753		92,726
Rentals	38,044		—
Mortgage	2,917		5,711
Other	4,368		3,646
Intercompany eliminations	(5,223)		(2,373)
Total	$	597,346	$	268,319
Cost of revenue
Real estate services	$	153,784	$	128,216
Properties	358,866		91,130
Rentals	7,193		—
Mortgage	5,517		5,869
Other	4,671		3,119
Intercompany eliminations	(5,223)		(2,373)
Total	$	524,808	$	225,961
Gross profit
Real estate services	$	23,703	$	40,393
Properties	20,887		1,596
Rentals	30,851		—
Mortgage	(2,600)		(158)
Other	(303)		527
Total	$	72,538	$	42,358
Real estate services, properties, mortgage, and other operating expenses	$	109,781	$	76,871
Rentals operating expenses	47,877		—
Loss from operations	(85,120)		(34,513)
Interest income	220		159
Interest expense	(3,861)		(1,338)
Income tax expense	(134)		—
Other expense, net	(1,911)		(92)
Net loss	$	(90,806)	$	(35,784)