Redfin losses balloon to $78M in the 2nd Q 2022
Redfin is among the brokerages feeling the burn in recent months as mortgage rates increased, inventory shrunk and prices increased to push homebuyers out of the market.
The company reported a net loss of $78.1 million, compared to a net loss of $27.9 million in the second quarter of 2021. The second quarter revenue was $606.9 million, an increase of 29 percent compared to the second quarter of 2021 and up from $597 in the first quarter.
Gross profit was $118.0 million, a decrease of 6 percent year-over-year.
Redfin’s CEO said there was more to blame the balance sheet on than just the homebuyer’s economy.
In the second quarter, Redfin closed on a deal to acquire Bay Equity Home Loans, a national, full-service mortgage lender. The purchase price was estimated to be $135 million in cash and stock.
The quarter’s results are a far cry from the Redfin’s ride atop the hot housing market. Alongside announcing a 14 percent boost to revenue in 2020, the brokerage said in February 2021 it was racing to expand its agent count, hiring “faster than ever.”
That hot streak appeared to have cooled into reversal by this summer. Redfin in June announced it was laying off around 470 employees, or approximately 8 percent of its total employees.