Redfin slips in after hours following poor outlook

$RDFN(RDFN)

Real estate technology company Redfin, Inc. (RDFN) announced its Q4 earnings report for the fiscal year 2023, showing a mixed performance. The company reported a revenue decrease of 55% year-over-year, which missed analysts' expectations, but also demonstrated a significant increase in gross profit and a narrower net loss per share. 

The stock opened today"s session at $6.92 and rallied to $7.30 ahead of the close. However, it has given up those gains and slipped below the opening level as investors raised concerns around the forward guidance. 

Key Financial Metrics 

* Revenue: $218.1 million, down 55% year-over -year, compared to an estimate of $220.4 million. 

* Real Estate Services Revenue: $132.9 million, down 9.1% year-over-year, compared to an estimate of $132.1 million.

 * Rentals Revenue: $49.2 million, up 20% year-over -year, compared to an estimate of $49.5 million. 

* Mortgage Revenue: $26.3 million, down 7.6% year-over-year, compared to an estimate of $28.6 million. 

* Loss Per Share: $0.20, compared to a loss per share of $0.57 in the same quarter last year. 

Redfin, the real estate technology company, recently released its Q4 FY2023 earnings report, which showcased a decrease in revenue of 55% year-over-year to $218.1 million. While this fell short of analysts' expectations of $220.4 million, it is worth noting that the company reported a narrower loss per share of $0.20 compared to a loss of $0.57 per share in the same quarter last year, beating the consensus estimate of a loss per share of $0.21. 

Redfin issued in-line guidance for Q1 2024, projecting total revenue between $214 million and $223 million, representing a year-over-year change between 0% and 4% compared to Q1 2023. This guidance includes real estate services revenue between $126 million and $131 million, rentals revenue between $49 million and $50 million, mortgage revenue between $29 million and $32 million, and other revenue between $9 million and $10 million. 

Total net loss is expected to be between $72 million and $65 million, and adjusted EBITDA loss is expected to be between $36 million and $29 million. 

Redfin also expects to pay a quarterly dividend of 30,640 shares of common stock to its preferred stockholder. 

Conclusion Redfin's Q4 2023 earnings report showcases a mixed performance, with revenue missing expectations but gross profit and net loss per share demonstrated significant improvements. The company's in-line guidance for Q1 2024 is encouraging, indicating a steady revenue stream and a narrower adjusted EBITDA loss. 

Overall, Redfin appears to be navigating a challenging business environment while maintaining its profitability and growth prospects.As the company continues to adapt to market conditions, investors will be watching its future performance closely.