Redfin (NASDAQ:RDFN) stock dropped 1.5% in Wednesday after-hours trading after the company’s guidance for Q4 revenue came in under the Wall Street consensus and Q3 revenue also missed as real estate markets weakened due to higher interest rates.
The real estate company expects Q4 revenue of $430M-$459M, well below the $557.3M consensus estimate. Net loss is expected to be $118M-$134M and adjusted EBITDA loss is seen at $58M-$71M.
Earlier, the company said its cutting 862 jobs and closing its RedfinNow iBuying business.
“Redfin will have more cash and sell more properties by focusing on growth in our online audience, low fees, and better brokerage, mortgage and title service,” CEO Glenn Kelman said. “Already, our share of real estate traffic and home sales is increasing.”
He projected that the company will generate positive adjusted EBITDA in 2023 and net income in 2024.
Q3 net loss of $90.2M widened from $27.9M in Q2 and from $19.0M in the year-ago quarter. Gross profit of $58.1M sank from $118M in Q2 and from $127.3M a year ago.
Q3 revenue of $600.5M, missing the $602.7M consensus, dropped from $606.9M in the prior quarter and increased from $540.1M in the year-ago quarter.
Total operating expenses of $143.1M declined from $192.7M in Q2 and from $147.2M in Q3 2021.
Conference call at 4:30 PM ET.
Image and article originally from seekingalpha.com. Read the original article here.