Segment Reporting and Revenue

9 Months Ended

Sep. 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 (loss) 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 September 30, 2024
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue	$	175,136	$	51,660	$	35,621	$	15,598	$	—	$	278,015
Cost of revenue	126,421		12,366		30,214		7,151		—		176,152
Gross profit	48,715		39,294		5,407		8,447		—		101,863
Operating expenses
Technology and development	26,927		10,648		675		889		1,193		40,332
Marketing	12,907		13,600		667		12		—		27,186
General and administrative	18,263		24,074		5,885		1,215		9,351		58,788
Restructuring and reorganization	—		—		—		—		2,509		2,509
Total operating expenses	58,097		48,322		7,227		2,116		13,053		128,815
(Loss) income from continuing operations	(9,382)		(9,028)		(1,820)		6,331		(13,053)		(26,952)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	38		100		(2,966)		266		(4,268)		(6,830)
Net (loss) income from continuing operations	$	(9,344)	$	(8,928)	$	(4,786)	$	6,597	$	(17,321)	$	(33,782)

	Three Months Ended September 30, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue	$	177,750	$	47,410	$	32,923	$	10,873	$	—	$	268,956
Cost of revenue	123,684		10,824		29,629		6,479		—		170,616
Gross profit	54,066		36,586		3,294		4,394		—		98,340
Operating expenses
Technology and development	25,711		15,813		800		1,133		935		44,392
Marketing	10,785		12,245		1,088		20		(43)		24,095
General and administrative	18,418		21,838		6,670		952		7,502		55,380
Total operating expenses	54,914		49,896		8,558		2,105		8,394		123,867
(Loss) income from continuing operations	(848)		(13,310)		(5,264)		2,289		(8,394)		(25,527)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	41		42		(73)		207		6,338		6,555
Net (loss) income from continuing operations	$	(807)	$	(13,268)	$	(5,337)	$	2,496	$	(2,056)	$	(18,972)

	Nine Months Ended September 30, 2024
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue	$	493,885	$	152,105	$	109,619	$	43,088	$	—	$	798,697
Cost of revenue	371,198		35,453		88,646		21,139		—		516,436
Gross profit	122,687		116,652		20,973		21,949		—		282,261
Operating expenses
Technology and development	84,354		36,577		2,031		2,686		3,328		128,976
Marketing	47,939		42,137		2,221		27		—		92,324
General and administrative	57,178		66,794		19,087		3,279		35,028		181,366
Restructuring and reorganization	—		—		—		—		4,732		4,732
Total operating expenses	189,471		145,508		23,339		5,992		43,088		407,398
(Loss) income from continuing operations	(66,784)		(28,856)		(2,366)		15,957		(43,088)		(125,137)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	6		65		(2,962)		690		(1,098)		(3,299)
Net (loss) income from continuing operations	$	(66,778)	$	(28,791)	$	(5,328)	$	16,647	$	(44,186)	$	(128,436)

	Nine Months Ended September 30, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
Revenue(1)	$	485,687	$	135,636	$	107,838	$	29,434	$	—	$	758,595
Cost of revenue	359,625		31,016		93,108		18,178		—		501,927
Gross profit	126,062		104,620		14,730		11,256		—		256,668
Operating expenses
Technology and development	82,650		48,081		2,177		3,475		2,813		139,196
Marketing	51,849		42,509		3,122		46		5		97,531
General and administrative	58,997		73,445		20,323		3,049		30,770		186,584
Restructuring and reorganization	—		—		—		—		7,159		7,159
Total operating expenses	193,496		164,035		25,622		6,570		40,747		430,470
(Loss) income from continuing operations	(67,434)		(59,415)		(10,892)		4,686		(40,747)		(173,802)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	41		115		(224)		475		69,901		70,308
Net (loss) income from continuing operations	$	(67,393)	$	(59,300)	$	(11,116)	$	5,161	$	29,154	$	(103,494)

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