Segment Reporting and Revenue

12 Months Ended

Dec. 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 our statement of operations results, inclusive of net loss. 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 five operating segments and three reportable segments, real estate services, rentals, and mortgage. As a result of our decision to wind-down RedfinNow operations in November 2022, we report our properties segment as a discontinued operation as we completed wind-down of the business during the three months ended June 30, 2023.

We generate revenue primarily from commissions and fees charged on each real estate services transaction closed by our lead agents or partner agents, 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, rentals revenue, mortgage revenue, and other revenue.

Information on each of our reportable and other segments and reconciliation to consolidated net (loss) income from continuing operations 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.

	Year Ended December 31, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue(1)	$	618,577	$	184,812	$	134,108	$	39,175	$	—	$	976,672
Cost of revenue	462,625		42,086		118,178		23,964		—		646,853
Gross profit	155,952		142,726		15,930		15,211		—		329,819
Operating expenses
Technology and development	108,201		63,934		2,871		4,504		3,784		183,294
Marketing	59,746		53,952		4,064		60		41		117,863
General and administrative	76,851		94,252		25,012		4,017		38,658		238,790
Restructuring and reorganization	—		503		—		—		7,424		7,927
Total operating expenses	244,798		212,641		31,947		8,581		49,907		547,874
(Loss) income from continuing operations	(88,846)		(69,915)		(16,017)		6,630		(49,907)		(218,055)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	59		215		(392)		712		91,069		91,663
Net (loss) income from continuing operations	$	(88,787)	$	(69,700)	$	(16,409)	$	7,342	$	41,162	$	(126,392)

(1) Included in revenue is $1,244 from providing services to our discontinued properties segment.

	Year Ended December 31, 2022
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue(1)	$	787,076	$	155,910	$	132,904	$	23,684	$	—	$	1,099,574
Cost of revenue	608,027		33,416		126,552		22,460		—		790,455
Gross profit	179,049		122,494		6,352		1,224		—		309,119
Operating expenses
Technology and development	105,196		59,899		6,034		3,591		4,204		178,924
Marketing	98,673		51,064		4,889		199		484		155,309
General and administrative	88,171		92,728		25,680		3,307		33,504		243,390
Restructuring and reorganization	—		—		—		—		32,353		32,353
Total operating expenses	292,040		203,691		36,603		7,097		70,545		609,976
Loss from continuing operations	(112,991)		(81,197)		(30,251)		(5,873)		(70,545)		(300,857)
Interest income, interest expense, income tax benefit, gain on extinguishment of convertible senior notes, and other expense, net	(123)		1,389		(114)		140		49,768		51,060
Net loss from continuing operations	$	(113,114)	$	(79,808)	$	(30,365)	$	(5,733)	$	(20,777)	$	(249,797)

(1) Included in revenue is $17,783 from providing services to our discontinued properties segment.

	Year Ended December 31, 2021
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue(1)	$	903,334	$	121,877	$	19,818	$	13,609	$	—	$	1,058,638
Cost of revenue	603,320		21,739		26,096		14,264		—		665,419
Gross profit	300,014		100,138		(6,278)		(655)		—		393,219
Operating expenses
Technology and development	81,588		41,492		10,396		2,528		7,477		143,481
Marketing	98,746		36,174		561		209		1,161		136,851
General and administrative	84,655		71,943		8,306		2,288		41,530		208,722
Total operating expenses	264,989		149,609		19,263		5,025		50,168		489,054
Income (loss) from continuing operations	35,025		(49,471)		(25,541)		(5,680)		(50,168)		(95,835)
Interest income, interest expense, and other income, net	(87)		3,301		3		2		1,392		4,611
Net income (loss) from continuing operations	$	34,938	$	(46,170)	$	(25,538)	$	(5,678)	$	(48,776)	$	(91,224)

(1) Included in revenue is $16,526 from providing services to our discontinued properties segment.