Redfin Corporation. (NASDAQ:RDFN) Q3 2023 Earnings Conference Call November 2, 2023 4:30 PM ET

Company Participants

Meg Nunnally - Head of Investor Relations

Glenn Kelman - President and Chief Executive Officer

Chris Nielsen - Chief Financial Officer

Conference Call Participants

Jason Helfstein - Oppenheimer

Wyatt Swanson - D.A. Davidson

Bernie McTernan - Needham and Company

Ygal Arounian - City Group

Jonathan Bass - Stephens

Jay McCanless - Wedbush

Vincent Kardos - Jefferies

Operator

Greetings and welcome to the Redfin Corporation’s Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host. Meg Nunnally. Thank you. You may begin.

Meg Nunnally

Good afternoon and welcome to Redfin’s financial results conference call for the third quarter ended September 30, 2023. I’m Meg Nunnally, Redfin’s Head of Investor Relations. Joining me on the call today is Glenn Kelman, our CEO; and Chris Nielsen, our CFO.

Before we start, note that some of our statements on today’s call are forward-looking. We believe our assumptions and expectations related to these forward-looking statements are reasonable, but our actual results may turn out to be materially different. Please read and consider the risk factors in our SEC filings together with the content of today’s call.

Any forward-looking statements are based on our assumptions today, and we don’t undertake to update these statements in light of new information or future events. On this call, we will present non-GAAP measures when discussing our financial results. We encourage you to review today’s earnings release, which is available on our website at investors.redfin.com for more information related to our non-GAAP measures, including the most directly comparable GAAP financial measures and related reconciliations.

All comparisons made in the course of this call are against the same period in the prior year, unless otherwise stated. Lastly, we will be providing a copy of our prepared remarks on our website by the conclusion of today’s call, and a full transcript and audio replay will also be available soon after the call.

With that, I’ll turn the call over to Glenn.

Glenn Kelman

Thanks, Meg, and hi, everyone. Despite a housing market that has gone from bad to worse, Redfin gained share and earned adjusted EBITDA profits in the third quarter of 2023. Our third quarter results from continuing operations show how much more efficient we become over the last year. Revenue declined year-over-year by 12% but gross profits increased by 8% and adjusted EBITDA improved by $20 million with improvements in nearly every segment. Including the gain from closing Redfin now, the year-over-year increase in our adjusted EBITDA was $59 million.