Redfin Corporation (NASDAQ:RDFN) Q3 2022 Earnings Conference Call November 9, 2022 4:30 PM ET

Company Participants

Meg Nunnally - Investor Relations

Glenn Kelman - Chief Executive Officer

Chris Nielsen - Chief Financial Officer

Conference Call Participants

Tom White - D.A. Davidson

Jason Helfstein - Oppenheimer

Naved Khan - Truist Securities

Mike Ng - Goldman Sachs

John Campbell - Stephens Inc

Mark Mahaney - Evercore

Jay McCanless - Wedbush

Chris Laskowski - Jefferies

Curtis Nagle - Bank of America

Operator

Good day, ladies and gentlemen and welcome to the Redfin Corporation Q3 2022 Earnings Conference Call. [Operator Instructions] At this time, it is my pleasure to turn the floor over to your host, Meg Nunnally, ma’am, the floor is yours.

Meg Nunnally

Good afternoon and welcome to Redfin’s financial results conference call for the third quarter ended September 30, 2022. 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 recently 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 will turn the call over to Glenn.

Glenn Kelman

Thanks, Meg and hi everyone. As many of you have by now heard, Redfin today laid off 13% of our employees and announced the closure of RedfinNow. The reduction since April 30 has been 27%. We are grateful for the dedication and ingenuity of the people leaving and heartbroken that we don’t have enough customers to pay for their work. Our June layoff was a reaction to slowing 2022 home sales. Today’s layoff assumes a housing downturn that lasts at least through 2023, letting us earn adjusted EBITDA next year even if home sales declined at the levels of the great financial crisis when the U.S. population was 10% smaller.