Redfin Corporation (NASDAQ:RDFN) Q2 2023 Earnings Conference Call August 3, 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

Ygal Arounian - Citi

AJ Hayes - Stephens

Stefanos Crist - Needham & Company

Operator

Good day ladies and gentlemen and welcome to the Redfin Corporation Second Quarter 2023 Earnings Conference Call. Our host for today's call is Meg Nunnally, Head of Investor Relations. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session.

I would now like to turn the call over to your host. Meg, you may begin.

Meg Nunnally

Good afternoon and welcome to Redfin’s financial results conference call for the second quarter ended June 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. In the second quarter of 2023 Redfin generated $276 million of revenue and an adjusted EBITDA loss of $7 million, but within the ranges we had forecast in our last earnings call. Our net loss of $27 million is better than our forecasted loss between $35 million and $44 million to $20 million gain from purchasing our 2025 notes at a discount. But even as our share of online demand has increased sharply we are unlikely to get second half sales to earn the full year adjusted EBITDA profit that we had forecast coming into 2023.