Discontinued Operations

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

In November 2022, our management and board of directors made the decision to wind down RedfinNow. The financial results of RedfinNow have historically been included in our properties segment. Winding-down RedfinNow was a strategic decision we made in order to focus our resources on our core businesses in the face of the rising cost of capital. The wind-down of our properties segment was complete as of June 30, 2023, at which time it met the criteria for discontinued operations in our consolidated financial statements.

The major classes of assets and liabilities of our discontinued operations were as follows:

	December 31,
	2023		2022
Assets
Current assets
Cash and cash equivalents	$	—	$	7,640
Accounts receivable, net	—		8,504
Inventory	—		114,232
Prepaid expenses	—		500
Other current assets	—		1,283
Total current assets of discontinued operations	—		132,159
Property and equipment, net	—		167
Right-of-use assets, net	—		1,142
Total assets of discontinued operations	$	—	$	133,468
Liabilities
Current liabilities
Accounts payable	$	—	$	754
Accrued and other liabilities	—		2,980
Lease liabilities	—		577
Total current liabilities of discontinued operations	—		4,311
Lease liabilities, noncurrent	—		392
Total liabilities of discontinued operations	$	—	$	4,703

The major classes of line items of the discontinued operations included in our consolidated statement of comprehensive loss were as follows:

	Year Ended December 31,
	2023		2022		2021
Revenue	$	122,576	$	1,184,868	$	864,127
Cost of revenue(1)	124,422		1,207,933		853,526
Gross (loss) profit	(1,846)		(23,065)		10,601
Operating expenses
Technology and development(1)	552		17,326		13,237
Marketing(1)	523		2,762		1,889
General and administrative(1)	638		11,204		9,593
Restructuring and reorganization	75		8,116		—
Total operating expenses	1,788		39,408		24,719
Loss from discontinued operations	(3,634)		(62,473)		(14,118)
Interest expense	—		(8,859)		(4,271)
Income tax expense	—		(10)		—
Other expense, net	—		(4)		—
Net loss from discontinued operations	$	(3,634)	$	(71,346)	$	(18,389)
Net loss from discontinued operations per share—basic and diluted	$	(0.03)	$	(0.66)	$	(0.18)

(1) Includes stock-based compensation as follows:

	Year Ended December 31,
	2023		2022		2021
Cost of revenue	$	46	$	813	$	1,226
Technology and development	86		3,243		2,103
Marketing	19		102		207
General and administrative	83		1,080		1,641
Total stock-based compensation	$	234	$	5,238	$	5,177

Significant non-cash items and capital expenditures of the discontinued operations were as follows:

	Year Ended December 31,
	2023		2022		2021
Amortization of debt discount and debt issuance costs	$	—	$	996	$	273
Stock-based compensation	234		5,238		5,177
Depreciation and amortization	89		2,337		1,847
Capital expenditures	—		1,213		1,782
Cash paid for interest	—		7,863		3,946

Charges specifically relating to the wind-down of our properties segment were as follows:

Cost type	Financial statement line item	Year Ended December 31, 2023		Cumulative amount recognized
Employee termination costs	Restructuring and reorganization	$	539	$	8,587
Asset write-offs	Restructuring and reorganization	—		493
Other	Restructuring and reorganization	(465)		(890)
Acceleration of debt issuance costs	Interest expense	—		481
Total		$	74	$	8,671