Redfin is leaning on technology as it adapts amid the global pandemic.
The Seattle real estate company posted its first quarter earnings report on Thursday with $191 million in revenue, up 73% and beating expectations of $178 million. Net loss per share came in at $0.64, lower than estimates of -$0.75.
Shares were down slightly in after-hours trading; the stock is down about 30% since February.
Redfin CEO Glenn Kelman touted the company’s technology — video chat tours; self-service access to homes — as a competitive advantage.
“Real estate commerce has probably virtualized itself more in the past two months than it had in the prior 20 years,” he said in a statement.
As questions swirl about the real estate market amid the COVID-19 pandemic, Redfin said last month that it will cut 7% of its staff and furlough hundreds of agents due to decreased housing demand. The company is also making small cuts at its headquarters in Seattle, while temporarily slashing all salaries by 10-to-15% and canceling bonuses for the remainder of this year.
Redfin said today it asked approximately 135 employees “to return from furlough to serve renewed homebuying demand.”
The company last month sold $110 million of stock to Durable Capital Partners, a year-old investment firm led by Henry Ellenbogen, a longtime Redfin backer.
The future of the housing market largely depends on how long the pandemic lasts and “its continuous effects on homeowners, buyers and sellers,” Redfin notes in a FAQ page. Unemployment and the availability of credit are also factors.
Kelman last month said buyers should seek opportunity, while sellers should hold off if able.
Update: Redfin reported Friday that “new listings and home sales are seeing early signs of recovery in the U.S. housing market.”
Revenue from the company’s Brokerage division came in at $102 million, up 26%. The Properties division, which includes the company’s RedfinNow initiative for buying homes directly from consumers, spiffing them up and selling them, brought in $79 million in revenue, up from $21.3 million last year, with a $201,000 loss. Redfin paused its RedfinNow program in March as home sales and listings are down, but said today it will restart the program in select markets this month.
The company expects Q2 revenue between $179-to-$189 million, down 9% and 4% year-over-year.
Redfin appointed David Lissy to be its new board chairman on April 24. Former chairman Robert Mylod, who served in the role since 2016, will remain on the board and its audit committee.
