Redfin (RDFN, $8.42) posts narrower-than-expected loss in Q4; has an optimistic full-year outlook

Redfin posted a narrower-than-anticipated loss in the fourth quarter, and offered an optimistic full-year outlook.

The real estate listings and brokerage company incurred a loss of -57 cents per share, compared to the Street expectations of -$1.07 loss per share.

Revenue fell -25% year-over-year to around $480 million, but surpassed analysts’ expectations of roughly $445 million (based on FactSet  data). According to Redfin, overall U.S. home purchases plunged more than -40% from a year earlier.

Redfin is expecting adjusted Ebitda profit in full-year 2023, vs. the company’s adjusted Ebitda loss of -$192 million in fiscal 2022. “We shifted to more digital-margin revenue, lowered expenses, increased our share of online real estate traffic, and improved the quality of our sales force,” mentioned Redfin CEO Glenn Kelman said in a statement. “The discipline to make adjusted Ebitda this year can make us very profitable when the housing market recovers.”

The company said it expects total revenue in the range of $307 million and $324 million in the first quarter, vs. the $295 million estimated by FactSet. Redfin projects a total net loss between -$116 million and -$105 million, and an adjusted Ebitda loss of -$84 million to - $73 million, both wider losses than analysts’ estimates.