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  Title	Redfin Reports Third Quarter 2024 Financial Results
  ID	3997266
  External ID	7283688869
  Author	Unknown
  Published Date	Nov. 7, 2024, 3:12 p.m.
  Summary	SEATTLE--( BUSINESS WIRE )--Redfin Corporation (NASDAQ: RDFN) today announced results for its third quarter ended September 30, 2024. “Redfin's third-quarter results were within our guidance range, a
  Tags	press-release
  URL	https://www.businesswire.com/news/home/20241107894315/en
  Sentiment	Negative: 0.22013    Neutral: 0.02989    Positive: 0.74998
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  Content ID	2274746
  Key	181e9f00-c8d0-4df8-b349-25ffea8878fc
  Content	SEATTLE--( BUSINESS WIRE )--Redfin Corporation (NASDAQ: RDFN) today announced results for its third quarter ended September 30, 2024. “Redfin's third-quarter results were within our guidance range, and we're now forecasting fourth-quarter growth in market share and revenues” Post this Third Quarter 2024 Third quarter revenue was $278.0 million, an increase of 3% compared to the third quarter of 2023. Gross profit was $101.9 million, an increase of 4% year-over-year. Real estate services gross profit was $48.7 million, a decrease of 10% year-over-year, and real estate services gross margin was 28%, compared to 30% in the third quarter of 2023. Net loss was $33.8 million, compared to a net loss of $19.0 million in the third quarter of 2023. Net loss attributable to common stock was $34.1 million. Net loss per share attributable to common stock, diluted, was $0.28, compared to net loss per share, diluted, of $0.17 in the third quarter of 2023. Adjusted EBITDA was $3.9 million, down from an adjusted EBITDA of $7.7 million in the third quarter of 2023. “Redfin's third-quarter results were within our guidance range, and we're now forecasting fourth-quarter growth in market share and revenues,” said Redfin CEO Glenn Kelman. “Already, shifting our real estate agents to a commissions-based model has improved close rates, with industry-leading attach rates for mortgage and title services. And now, the growth in our digital businesses and our reductions in headquarters costs will let us fund more demand-generation. With plans to hire hundreds of agents between now and next spring, we're emerging from a year of record low U.S. home sales ready to go on the attack.” Third Quarter Highlights Third quarter market share was 0.76% of U.S. existing home sales by units, compared to 0.78% in the third quarter of 2023. Average lead agents of 1,757, up 1 percent compared to the third quarter of 2023 and marking Redfin's second straight quarter of sequential agent growth. Achieved a 27% mortgage attach rate in the third quarter of 2024, up from 22% in the third quarter of 2023. Maintained momentum in loyalty sales, with 37% of sales coming from loyalty customers compared to 36% in the third quarter of 2023. Announced the nationwide expansion of our Redfin Next agent pay plan and transitioned all existing agents to the plan on October 27. To date, Redfin has hired more than 500 agents to join the brokerage under Next. Launched Redfin Teams nationwide, helping teams of up to five agents formally partner to expand their business and grow their career to a new level. More than 180 agents have joined the program since it launched in September, including over 50 who are new to the brokerage. Extended Redfin Redesign's reach by partnering with five additional multiple listing services. The AI-powered home design tool is now available on more than 355,000 for-sale listings across the U.S. and to any U.S. homeowner who has claimed their home on Redfin. Expanded Redfin's rental tools nationwide, which was announced on October 15. Property managers across the country can now use Redfin to list rental homes for free, connect with renters across Redfin's family of sites, and manage the application and renter screening process. Supported agents and customers through the National Association of Realtors settlement changes by integrating a consumer-friendly fee agreement into our tour scheduling process and giving customers who commit to Redfin early a better deal through Sign & Save. (1) Attach rate reflects total closed loans for Redfin buy-side customers divided by Redfin buy-side transactions with a mortgage (excluding cash transactions) for the period. We previously reported only the inclusive attach rate (includes cash transactions in the denominator), which was 21% in the third quarter of 2024, compared to 18% in the third quarter of 2023. Business Outlook The following forward-looking statements reflect Redfin's expectations as of November 7, 2024, and are subject to substantial uncertainty. For the fourth quarter of 2024 we expect: Total revenue between $237 million and $247 million, representing a year-over-year growth between 9% and 13% compared to the fourth quarter of 2023. Included within total revenue are real estate services revenue between $144 million and $150 million, rentals revenue of $51 million, mortgage revenue between $28 million and $32 million and other revenue between $13 million and $14 million. Total net loss is expected to be between $32 million and $25 million, compared to net loss of $23 million in the fourth quarter of 2023. This guidance includes approximately $22 million in total marketing expenses, $18 million of stock-based compensation, $9 million in depreciation and amortization, and $7 million in net interest expense. Adjusted EBITDA is expected to be between $1 million and $8 million. Furthermore, we expect to pay a final dividend of 20,427 shares of common stock to our preferred stockholder. Conference Call Redfin will webcast a conference call to discuss the results at 1:30 p.m. Pacific Time today. The webcast will be open to the public at http://investors.redfin.com . The webcast will remain available on the investor relations website for at least three months following the conference call. Forward-Looking Statements This press release contains forward-looking statements within the meaning of federal securities laws, including our future operating results, as described under Business Outlook . We believe our expectations related to these forward-looking statements are reasonable, but actual results may turn out to be materially different. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our annual report for the year ended December 31, 2023, as supplemented by our quarterly report for the quarter ended March 31, 2024, each of which are available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov . All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. Non-GAAP Financial Measure To supplement our consolidated financial statements that are prepared and presented in accordance with GAAP, we also compute and present adjusted EBITDA, which is a non-GAAP financial measure. We believe adjusted EBITDA is useful for investors because it enhances period-to-period comparability of our financial statements on a consistent basis and provides investors with useful insight into the underlying trends of the business. The presentation of this financial measure is not intended to be considered in isolation or as a substitute of, or superior to, our financial information prepared and presented in accordance with GAAP. Our calculation of adjusted EBITDA may be different from adjusted EBITDA or similar non-GAAP financial measures used by other companies, limiting its usefulness for comparison purposes. Our adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023 is presented below, along with a reconciliation of adjusted EBITDA to net loss. About Redfin Redfin ( www.redfin.com ) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people. Redfin-F Redfin Corporation and Subsidiaries Consolidated Balance Sheets (in thousands, except share and per share amounts, unaudited) September 30, 2024 December 31, 2023 Assets Current assets Cash and cash equivalents $ 165,660 $ 149,759 Restricted cash 174 1,241 Short-term investments — 41,952 Accounts receivable, net of allowances for credit losses of $3,945 and $3,234 74,971 51,738 Loans held for sale 212,921 159,587 Prepaid expenses 30,531 33,296 Other current assets 20,514 7,472 Total current assets 504,771 445,045 Property and equipment, net 43,312 46,431 Right-of-use assets, net 26,275 31,763 Mortgage servicing rights, at fair value 2,534 32,171 Long-term investments — 3,149 Goodwill 461,349 461,349 Intangible assets, net 104,127 123,284 Other assets, noncurrent 8,705 10,456 Total assets $ 1,151,073 $ 1,153,648 Liabilities, mezzanine equity, and stockholders' (deficit) equity Current liabilities Accounts payable $ 14,280 $ 10,507 Accrued and other liabilities 101,040 90,360 Warehouse credit facilities 208,817 151,964 Lease liabilities 13,347 15,609 Total current liabilities 337,484 268,440 Lease liabilities, noncurrent 22,853 29,084 Convertible senior notes, net, noncurrent 571,644 688,737 Term loan 243,646 124,416 Deferred tax liabilities 647 264 Total liabilities 1,176,274 1,110,941 Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 shares issued and outstanding at September 30, 2024 and December 31, 2023 39,992 39,959 Stockholders' (deficit) equity Common stock—par value $0.001 per share; 500,000,000 shares authorized; 123,945,380 and 117,372,171 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 124 117 Additional paid-in capital 886,592 826,146 Accumulated other comprehensive loss (140 ) (182 ) Accumulated deficit (951,769 ) (823,333 ) Total stockholders' (deficit) equity (65,193 ) 2,748 Total liabilities, mezzanine equity, and stockholders' (deficit) equity $ 1,151,073 $ 1,153,648 Redfin Corporation and Subsidiaries Consolidated Statements of Comprehensive Loss (in thousands, except share and per share amounts, unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue $ 278,015 $ 268,956 $ 798,697 $ 758,595 Cost of revenue(1) 176,152 170,616 516,436 501,927 Gross profit 101,863 98,340 282,261 256,668 Operating expenses Technology and development(1) 40,332 44,392 128,976 139,196 Marketing(1) 27,186 24,095 92,324 97,531 General and administrative(1) 58,788 55,380 181,366 186,584 Restructuring and reorganization 2,509 — 4,732 7,159 Total operating expenses 128,815 123,867 407,398 430,470 Loss from continuing operations (26,952 ) (25,527 ) (125,137 ) (173,802 ) Interest income 1,839 2,060 5,132 8,170 Interest expense (8,537 ) (1,603 ) (19,497 ) (5,291 ) Income tax expense 12 (239 ) (375 ) (882 ) Gain on extinguishment of convertible senior notes — 6,495 12,000 68,848 Other expense, net (144 ) (158 ) (559 ) (537 ) Net loss from continuing operations (33,782 ) (18,972 ) (128,436 ) (103,494 ) Net loss from discontinued operations — — — (3,634 ) Net loss $ (33,782 ) $ (18,972 ) $ (128,436 ) $ (107,128 ) Dividends on convertible preferred stock (282 ) (335 ) (706 ) (858 ) Net loss from continuing operations attributable to common stock—basic and diluted $ (34,064 ) $ (19,307 ) $ (129,142 ) $ (104,352 ) Net loss attributable to common stock—basic and diluted $ (34,064 ) $ (19,307 ) $ (129,142 ) $ (107,986 ) Net loss from continuing operations per share attributable to common stock—basic and diluted $ (0.28 ) $ (0.17 ) $ (1.07 ) $ (0.93 ) Net loss attributable to common stock per share—basic and diluted $ (0.28 ) $ (0.17 ) $ (1.07 ) $ (0.96 ) Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted 122,876,102 114,592,679 120,553,264 112,141,342 Net loss $ (33,782 ) $ (18,972 ) $ (128,436 ) $ (107,128 ) Other comprehensive income Foreign currency translation adjustments 4 (15 ) 2 (73 ) Unrealized gain on available-for-sale debt securities — 210 40 617 Comprehensive loss $ (33,778 ) $ (18,777 ) $ (128,394 ) $ (106,584 ) (1) Includes stock-based compensation as follows: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Cost of revenue $ 2,819 $ 3,037 $ 8,603 $ 10,173 Technology and development 9,135 8,391 26,092 24,759 Marketing 1,131 1,337 3,911 3,836 General and administrative 5,217 6,035 15,336 16,380 Total $ 18,302 $ 18,800 $ 53,942 $ 55,148 Redfin Corporation and Subsidiaries Consolidated Statements of Cash Flows (in thousands, unaudited) Nine Months Ended September 30, 2024 2023 Operating Activities Net loss $ (128,436 ) $ (107,128 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 33,340 48,443 Stock-based compensation 53,942 55,382 Amortization of debt discount and issuance costs 2,280 2,873 Non-cash lease expense 9,046 12,909 Impairment costs — 113 Net gain on IRLCs, forward sales commitments, and loans held for sale (1,809 ) (1,767 ) Change in fair value of mortgage servicing rights, net (742 ) 1,065 Gain on extinguishment of convertible senior notes (12,000 ) (68,848 ) Other 548 (2,013 ) Change in assets and liabilities: Accounts receivable, net (23,377 ) (238 ) Inventory — 114,232 Prepaid expenses and other assets (10,141 ) 9,696 Accounts payable 3,802 177 Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent 11,772 (19,346 ) Lease liabilities (11,993 ) (14,864 ) Origination of mortgage servicing rights (170 ) (699 ) Proceeds from sale of mortgage servicing rights 30,549 1,122 Origination of loans held for sale (3,071,291 ) (2,798,337 ) Proceeds from sale of loans originated as held for sale 3,018,634 2,858,656 Net cash (used in) provided by operating activities (96,046 ) 91,428 Investing activities Purchases of property and equipment (8,984 ) (9,235 ) Purchases of investments — (76,866 ) Sales of investments 39,225 124,681 Maturities of investments 6,395 59,383 Net cash provided by investing activities 36,636 97,963 Financing activities Proceeds from the issuance of common stock pursuant to employee equity plans 4,757 5,790 Tax payments related to net share settlements on restricted stock units (1,574 ) (15,961 ) Borrowings from warehouse credit facilities 3,088,179 2,803,589 Repayments to warehouse credit facilities (3,031,326 ) (2,861,779 ) Principal payments under finance lease obligations (56 ) (73 ) Repurchases of convertible senior notes (106,953 ) (212,401 ) Repayment of term loan principal (1,563 ) — Payments of debt issuance costs (2,222 ) — Proceeds from term loan 125,000 — Net cash provided by (used in) financing activities 74,242 (304,347 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 2 (73 ) Net change in cash, cash equivalents, and restricted cash 14,834 (115,029 ) Cash, cash equivalents, and restricted cash: Beginning of period 151,000 242,246 End of period $ 165,834 $ 127,217 Redfin Corporation and Subsidiaries Supplemental Financial Information and Business Metrics (unaudited) Three Months Ended Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 Dec. 31, 2023 Sep. 30, 2023 Jun. 30, 2023 Mar. 31, 2023 Dec. 31, 2022 Monthly average visitors (in thousands) 49,413 51,619 48,803 43,861 51,309 52,308 50,440 43,847 Real estate services transactions Brokerage 13,324 14,178 10,039 10,152 13,075 13,716 10,301 12,743 Partner 3,440 3,395 2,691 3,186 4,351 3,952 3,187 2,742 Total 16,764 17,573 12,730 13,338 17,426 17,668 13,488 15,485 Real estate services revenue per transaction Brokerage $ 12,363 $ 12,545 $ 12,433 $ 12,248 $ 12,704 $ 12,376 $ 11,556 $ 10,914 Partner 3,025 2,859 2,367 2,684 2,677 2,756 2,592 2,611 Aggregate 10,447 10,674 10,305 9,963 10,200 10,224 9,438 9,444 U.S. market share by units 0.76 % 0.77 % 0.77 % 0.72 % 0.78 % 0.75 % 0.79 % 0.76 % Revenue from top-10 Redfin markets as a percentage of real estate services revenue 56 % 56 % 55 % 55 % 56 % 55 % 53 % 57 % Average number of lead agents 1,757 1,719 1,658 1,692 1,744 1,792 1,876 2,022 Mortgage originations by dollars (in millions) $ 1,214 $ 1,338 $ 969 $ 885 $ 1,110 $ 1,282 $ 991 $ 1,036 Mortgage originations by units (in ones) 2,900 3,192 2,365 2,293 2,786 3,131 2,444 2,631 Redfin Corporation and Subsidiaries Supplemental Financial Information (unaudited, in thousands) Three Months Ended September 30, 2024 Real estate services Rentals Mortgage Other Corporate overhead Total (in thousands) 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, 2024 Real estate services Rentals Mortgage Other Corporate overhead Total (in thousands) Net (loss) income from continuing operations $ (9,344 ) $ (8,928 ) $ (4,786 ) $ 6,597 $ (17,321 ) $ (33,782 ) Interest income(1) (10 ) (111 ) (3,392 ) (266 ) (1,451 ) (5,230 ) Interest expense(2) — — 6,208 — 5,565 11,773 Income tax expense — 11 — — (23 ) (12 ) Depreciation and amortization 3,002 5,077 895 227 283 9,484 Stock-based compensation(3) 11,333 3,515 (89 ) 588 2,955 18,302 Restructuring and reorganization(4) — — — — 2,509 2,509 Legal contingencies(5) — — — — 904 904 Adjusted EBITDA $ 4,981 $ (436 ) $ (1,164 ) $ 7,146 $ (6,579 ) $ 3,948 (1) Interest income includes $3.4 million of interest income related to originated mortgage loans for the three months ended September 30, 2024. (2) Interest expense includes $3.2 million of interest expense related to our warehouse credit facilities for the three months ended September 30, 2024. (3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. (4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities. (5) Legal contingencies includes expenses related to significant contingent liabilities resulting from litigation or other legal proceedings. Three Months Ended September 30, 2023 Real estate services Rentals Mortgage Other Corporate overhead Total (in thousands) 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 Restructuring and reorganization — — — — — — 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 ) Three Months Ended September 30, 2023 Real estate services Rentals Mortgage Other Corporate overhead Total (in thousands) Net (loss) income from continuing operations $ (807 ) $ (13,268 ) $ (5,337 ) $ 2,496 $ (2,056 ) $ (18,972 ) Interest income(1) (41 ) (81 ) (2,886 ) (207 ) (1,732 ) (4,947 ) Interest expense(2) — — 3,132 — 1,598 4,730 Income tax expense — 37 70 — 132 239 Depreciation and amortization 3,123 9,681 947 233 312 14,296 Stock-based compensation(3) 11,151 4,255 473 574 2,347 18,800 Gain on extinguishment of convertible senior notes — — — — (6,495 ) (6,495 ) Adjusted EBITDA $ 13,426 $ 624 $ (3,601 ) $ 3,096 $ (5,894 ) $ 7,651 (1) Interest income includes $2.9 million of interest income related to originated mortgage loans for the three months ended September 30, 2023. (2) Interest expense includes $3.1 million of interest expense related to our warehouse credit facilities for the three months ended September 30, 2023. (3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information. Nine Months Ended September 30, 2024 Real estate services Rentals Mortgage Other Corporate overhead Total (in thousands) 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, 2024 Real estate services Rentals Mortgage Other Corporate overhead Total (in thousands) Net (loss) income from continuing operations $ (66,778 ) $ (28,791 ) $ (5,328 ) $ 16,647 $ (44,186 ) $ (128,436 ) Interest income(1) (40 ) (233 ) (8,416 ) (690 ) (4,169 ) (13,548 ) Interest expense(2) — — 11,246 — 16,522 27,768 Income tax expense — 109 — — 266 375 Depreciation and amortization 9,302 19,888 2,779 667 704 33,340 Stock-based compensation(3) 34,246 9,978 663 1,688 7,367 53,942 Restructuring and reorganization(4) — — — — 4,732 4,732 Gain on extinguishment of convertible senior notes — — — — (12,000 ) (12,000 ) Legal contingencies(5) — — — — 10,154 10,154 Adjusted EBITDA $ (23,270 ) $ 951 $ 944 $ 18,312 $ (20,610 ) $ (23,673 ) (1) Interest income includes $8.4 million of interest income related to originated mortgage loans for the nine months ended September 30, 2024. (2) Interest expense includes $8.3 million of interest expense related to our warehouse credit facilities for the nine months ended September 30, 2024. (3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. (4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities. (5) Legal contingencies includes expenses related to significant contingent liabilities resulting from litigation or other legal proceedings. Nine Months Ended September 30, 2023 Real estate services Rentals Mortgage Other Corporate overhead Total (in thousands) 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 $1.2 million from providing services to our discontinued properties segment. Nine Months Ended September 30, 2023 Real estate services Rentals Mortgage Other Corporate overhead Total (in thousands) Net (loss) income from continuing operations $ (67,393 ) $ (59,300 ) $ (11,116 ) $ 5,161 $ 29,154 $ (103,494 ) Interest income(1) (41 ) (238 ) (9,062 ) (475 ) (7,400 ) (17,216 ) Interest expense(2) — — 9,737 — 5,285 15,022 Income tax expense — 123 222 — 537 882 Depreciation and amortization 12,819 30,068 2,929 756 1,745 48,317 Stock-based compensation(3) 33,041 11,580 2,554 1,696 6,277 55,148 Acquisition-related costs(4) — — — — 8 8 Restructuring and reorganization(5) — — — — 7,159 7,159 Impairment(6) — — — — 113 113 Gain on extinguishment of convertible senior notes — — — — (68,848 ) (68,848 ) Adjusted EBITDA $ (21,574 ) $ (17,767 ) $ (4,736 ) $ 7,138 $ (25,970 ) $ (62,909 ) (1) Interest income includes $9.0 million of interest income related to originated mortgage loans for the nine months ended September 30, 2023. (2) Interest expense includes $9.7 million of interest expense related to our warehouse credit facilities for the nine months ended September 30, 2023. (3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. (4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies. (5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities. (6) Impairment consists of an impairment loss due to subleasing one of our operating leases. Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance (unaudited, in millions) Three months ending December 31, 2024 Low High Net loss (32 ) (25 ) Net interest expense 6 6 Depreciation and amortization 9 9 Stock-based compensation 18 18 Adjusted EBITDA 1 8 Note: Figures may not sum due to rounding.
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