Segment Reporting and Revenue

3 Months Ended

Mar. 31, 2024

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, gross profit, operating income, and net income. 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.

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 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.

	Three Months Ended March 31, 2024
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue	$	131,180	$	49,518	$	33,819	$	10,962	$	—	$	225,479
Cost of revenue	110,914		11,457		25,904		6,392		—		154,667
Gross profit	20,266		38,061		7,915		4,570		—		70,812
Operating expenses
Technology and development	28,507		15,512		656		832		922		46,429
Marketing	11,177		12,788		906		7		—		24,878
General and administrative	19,775		22,478		6,683		1,154		17,783		67,873
Restructuring and reorganization	—		—		—		—		889		889
Total operating expenses	59,459		50,778		8,245		1,993		19,594		140,069
(Loss) income from continuing operations	(39,193)		(12,717)		(330)		2,577		(19,594)		(69,257)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	(46)		7		3		244		2,275		2,483
Net (loss) income from continuing operations	$	(39,239)	$	(12,710)	$	(327)	$	2,821	$	(17,319)	$	(66,774)

	Three Months Ended March 31, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue(1)	$	127,296	$	42,870	$	36,489	$	7,428	$	—	$	214,083
Cost of revenue	111,494		9,765		29,213		5,473		—		155,945
Gross profit	15,802		33,105		7,276		1,955		—		58,138
Operating expenses
Technology and development	28,895		15,964		643		1,224		937		47,663
Marketing	25,060		14,326		980		10		27		40,403
General and administrative	19,618		26,302		6,929		1,053		15,537		69,439
Restructuring and reorganization	—		—		—		—		1,053		1,053
Total operating expenses	73,573		56,592		8,552		2,287		17,554		158,558
Loss from continuing operations	(57,771)		(23,487)		(1,276)		(332)		(17,554)		(100,420)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	—		45		(60)		115		43,010		43,110
Net (loss) income from continuing operations	$	(57,771)	$	(23,442)	$	(1,336)	$	(217)	$	25,456	$	(57,310)

(1) Included in revenue is $1,149 from providing services to our discontinued properties segment.