Segment Reporting and Revenue

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Reporting and Revenue

Segment Reporting and Revenue

In 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. We have six operating segments and four reportable segments, real estate services, properties, rentals, and mortgage. As a result of our decision to wind-down RedfinNow operations in November 2022, we plan to report our properties segment as a discontinued operation beginning with the period during which we complete wind-down of the business.

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, from subscription-based product offerings for our rentals business, and from the origination, sales, and servicing of mortgages. Our key revenue components are brokerage revenue, partner revenue, properties revenue, rentals revenue, mortgage revenue, and other revenue.

Information on each of our reportable and other segments and reconciliation to consolidated net loss is presented in the tables below. We have assigned certain previously reported expenses to each segment to conform to the way we internally manage and monitor our business. We allocated indirect costs to each segment based on a reasonable allocation methodology, when such costs are significant to the performance measures of the segments.

	Three Months Ended March 31, 2023
	Real estate services		Properties		Rentals		Mortgage		Other		Corporate Overhead and Intercompany Eliminations		Total
Revenue	$	127,296	$	112,727	$	42,870	$	36,489	$	7,428	$	(1,149)	$	325,661
Cost of revenue	111,494		114,658		9,765		29,213		5,473		(1,149)		269,454
Gross profit	15,802		(1,931)		33,105		7,276		1,955		—		56,207
Operating expenses
Technology and development	28,895		529		15,964		643		1,224		937		48,192
Marketing	25,060		505		14,326		980		10		27		40,908
General and administrative	19,618		523		26,302		6,929		1,053		15,537		69,962
Restructuring and reorganization	—		—		—		—		—		1,053		1,053
Total operating expenses	73,573		1,557		56,592		8,552		2,287		17,554		160,115
Loss from operations	(57,771)		(3,488)		(23,487)		(1,276)		(332)		(17,554)		(103,908)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	—		814		45		(60)		115		42,196		43,110
Net loss	$	(57,771)	$	(2,674)	$	(23,442)	$	(1,336)	$	(217)	$	24,642	$	(60,798)

	Three Months Ended March 31, 2022
	Real estate services		Properties		Rentals		Mortgage		Other		Corporate Overhead and Intercompany Eliminations		Total
Revenue	$	177,487	$	379,753	$	38,044	$	2,917	$	4,368	$	(5,223)	$	597,346
Cost of revenue	153,784		358,866		7,193		5,517		4,671		(5,223)		524,808
Gross profit	23,703		20,887		30,851		(2,600)		(303)		—		72,538
Operating expenses
Technology and development	26,739		4,119		14,282		2,347		1,036		1,117		49,640
Marketing	30,844		1,153		11,042		28		53		222		43,342
General and administrative	22,992		2,825		24,192		1,524		712		6,721		58,966
Restructuring and reorganization	—		—		—		—		—		5,710		5,710
Total operating expenses	80,575		8,097		49,516		3,899		1,801		13,770		157,658
Income (loss) from operations	(56,872)		12,790		(18,665)		(6,499)		(2,104)		(13,770)		(85,120)
Interest income, interest expense, income tax expense, and other expense, net	—		(1,624)		469		1		1		(4,533)		(5,686)
Net (loss) income	$	(56,872)	$	11,166	$	(18,196)	$	(6,498)	$	(2,103)	$	(18,303)	$	(90,806)