Segment Reporting and Revenue

6 Months Ended

Jun. 30, 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 June 30, 2024
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue	$	187,569	$	50,927	$	40,179	$	16,528	$	—	$	295,203
Cost of revenue	133,863		11,630		32,528		7,596		—		185,617
Gross profit	53,706		39,297		7,651		8,932		—		109,586
Operating expenses
Technology and development	28,920		10,417		700		965		1,213		42,215
Marketing	23,855		15,749		648		8		—		40,260
General and administrative	19,140		20,242		6,519		910		7,894		54,705
Restructuring and reorganization	—		—		—		—		1,334		1,334
Total operating expenses	71,915		46,408		7,867		1,883		10,441		138,514
(Loss) income from continuing operations	(18,209)		(7,111)		(216)		7,049		(10,441)		(28,928)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	14		(42)		1		180		895		1,048
Net (loss) income from continuing operations	$	(18,195)	$	(7,153)	$	(215)	$	7,229	$	(9,546)	$	(27,880)

	Three Months Ended June 30, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue(1)	$	180,641	$	45,356	$	38,426	$	11,133	$	—	$	275,556
Cost of revenue	124,447		10,427		34,266		6,226		—		175,366
Gross profit	56,194		34,929		4,160		4,907		—		100,190
Operating expenses
Technology and development	28,044		16,304		734		1,118		941		47,141
Marketing	16,004		15,938		1,054		16		21		33,033
General and administrative	20,961		25,305		6,724		1,044		7,731		61,765
Restructuring and reorganization	—		—		—		—		6,106		6,106
Total operating expenses	65,009		57,547		8,512		2,178		14,799		148,045
(Loss) income from continuing operations	(8,815)		(22,618)		(4,352)		2,729		(14,799)		(47,855)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	—		28		(91)		153		20,553		20,643
Net (loss) income from continuing operations	$	(8,815)	$	(22,590)	$	(4,443)	$	2,882	$	5,754	$	(27,212)

(1) Included in revenue is $95 from providing services to our discontinued properties segment.

	Six Months Ended June 30, 2024
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue	$	318,749	$	100,445	$	73,998	$	27,490	$	—	$	520,682
Cost of revenue	244,777		23,087		58,432		13,988		—		340,284
Gross profit	73,972		77,358		15,566		13,502		—		180,398
Operating expenses
Technology and development	57,427		25,929		1,356		1,797		2,135		88,644
Marketing	35,032		28,537		1,554		15		—		65,138
General and administrative	38,915		42,720		13,202		2,064		25,677		122,578
Restructuring and reorganization	—		—		—		—		2,223		2,223
Total operating expenses	131,374		97,186		16,112		3,876		30,035		278,583
(Loss) income from continuing operations	(57,402)		(19,828)		(546)		9,626		(30,035)		(98,185)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	(32)		(35)		4		424		3,170		3,531
Net (loss) income from continuing operations	$	(57,434)	$	(19,863)	$	(542)	$	10,050	$	(26,865)	$	(94,654)

	Six Months Ended June 30, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue(1)	$	307,937	$	88,226	$	74,915	$	18,561	$	—	$	489,639
Cost of revenue	235,941		20,192		63,479		11,699		—		331,311
Gross profit	71,996		68,034		11,436		6,862		—		158,328
Operating expenses
Technology and development	56,939		32,268		1,377		2,342		1,878		94,804
Marketing	41,064		30,264		2,034		26		48		73,436
General and administrative	40,579		51,607		13,653		2,097		23,268		131,204
Restructuring and reorganization	—		—		—		—		7,159		7,159
Total operating expenses	138,582		114,139		17,064		4,465		32,353		306,603
(Loss) income from continuing operations	(66,586)		(46,105)		(5,628)		2,397		(32,353)		(148,275)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	—		73		(151)		268		63,563		63,753
Net (loss) income from continuing operations	$	(66,586)	$	(46,032)	$	(5,779)	$	2,665	$	31,210	$	(84,522)

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