Redfin W Bottom Breakout
16 % Short interest in the stock could help fuel the rally
Redfin (NASDAQ:RDFN) is up 6.6% after hours following a Q4 earnings report with a healthy revenue beat and a better-than-expected loss.
Revenues jumped 88% to $233.2M for the quarter, with a manifold increase in product revenues in particular. That pushed year-over-year growth in full-year revenues to 60% (to $780M).
Gross profit rose 51% to $40M; real estate services gross profit was $42M (up 51%).
Net loss narrowed, meanwhile, to $7.8M from a year-ago loss of $12.2M.
"This was the fourth quarter in a row that our real estate services revenue growth accelerated, and the second quarter in a row that gross margins improved in every segment of our business," says CEO Glenn Kelman.
Revenue breakout: Service, $134.1M (up 30.8%); Product, $99.1M (up 359%).
For Q1, it's guiding to total revenue of $179M-188M (Y/Y growth of 63-71%) and a net loss between $72M and $68M.
Company profile
Redfin Corp. is a technology-powered residential real estate brokerage, which engages in buying and selling homes. It operates through the following segments: Real Estate, Properties and Other. The Real Estate segment revenue is derived from commissions and fees charged on real estate services transactions. The Properties segment revenue is earned when the Company sells homes that it previously bought directly from homeowners. The Other segment revenue includes fees earned from mortgage banking services, title settlement services, Walk Score data services and advertising. The company was founded by David Selinger, David Eraker, and Michael Dougherty in 2004 and is headquartered in Seattle, WA.
