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.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.