$RDFN Earnings look stellar.
Total Revenue up 40% but recall iBuying impacts revenue due to whole home price accounted as revenue, so look closer:
Brokerage revenue up 55%
Other Revenue (mortgage and title) up 120% (!)
RedfinNow/iBuying up 17%
Monthly average visitors +30% to 46 million.
U.S. Market share 1.14% up from 1.04% in Q4 and 0.93% in 1Q2020
Average revenue per first-party transaction at record high $10,927
Brokerage transactions up 38% - this is an important KPI as rev growth is partly due to rev per tx
Other services (mortgage and title) as a percentage of non-iBuying activities 5.64% up from 3.99% in 1Q2020.
I use this statistic to track the "take-rate" of mortgage and title.
Gross Profit of $42M up 229% from $12M in 1Q2020.
(Improving leverage)
Operating expenses up 9% on 58% brokerage + other revenue growth (!).
(Improving leverage)
First quarter where all 3 segments contributed to gross profit.
RedfinNow segment has rebounded rapidly from the COVID shutdown.
Up 17% YoY. Headed back to growth.
Guidance:
Total Revenue inclusive of RentPath $446-457M (109-114% YoY)
RentPath $41-42M implies
Organic Total Revenue of $404-416M (89%-95%)
Properties Revenue $151-156M (109%-116%)
Net loss of -38 to -32M incl. $16M loss related to RentPath acq.
Comps will look interesting..
Thoughts: Redfin is executing and guiding well. Hiring at a bewildering pace, 2,277 agents active in quarter.
Q1 GPM is much higher due to higher activity than typical Q1.
My main question is whether or not they can continue to see leverage or if agent pay creates a ceiling.
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