Redfin Corporation (NASDAQ: RDFN) today announced results for its second quarter ended June 30, 2022.
Second Quarter 2022
Second quarter revenue was $606.9 million, an increase of 29% compared to the second quarter of 2021. Gross profit was $118.0 million, a decrease of 6% year-over-year. Real estate services gross profit was $74.1 million, a decrease of 16% year-over-year, and real estate services gross margin was 29%, compared to 35% in the second quarter of 2021.
Net loss was $78.1 million, compared to a net loss of $27.9 million in the second quarter of 2021. Net loss attributable to common stock was $78.5 million. Net loss per share attributable to common stock, diluted, was $0.73, compared to net loss per share, diluted, of $0.29 in the second quarter of 2021.
Adjusted EBITDA loss was $28.6 million, compared to adjusted EBITDA income of $2.8 million in the second quarter of 2021.
“The housing market took a turn for the worse in the second quarter,” said Redfin CEO Glenn Kelman. “But I have never been more proud of how this company has responded: we cut costs, grew traffic, accelerated share gains and loyalty sales, lowered voluntary attrition and, for the first time since April 2020, improved the rate at which people buying homes stuck with a Redfin agent. Our rentals business recorded its first quarter-over-quarter revenue gain since 2017, and re-launched itself across every platform as Rent. Best of all, the rate at which Redfin homebuyers got a Redfin mortgage hit 15% in July, a near doubling of the all-time high before 2022. For the quarter, title attach rates more than doubled year over year. There will be more market ups and downs in the road ahead, but our whole engine to drive traffic, brokerage share, customer value and monetization is running more efficiently than ever.”
Second Quarter Highlights
- Reached market share of 0.82% of U.S. existing home sales by units in the second quarter of 2022, an increase of 5 basis points from the second quarter of 2021.(1)
- Redfin’s mobile apps and website reached nearly 53 million average monthly users in the second quarter, an increase of 9% compared to the second quarter of 2021.
- Expanded listing coverage from 91% to 94% of the U.S. population, adding 52 new MLSs.
- Made significant progress with the integration of Bay Equity, ending the second quarter with attach rates of 11% for the month of June, up from an attach rate of 6% in March.
- Improved customer retention, with loyalty mix at 35% in the second quarter, up from 33% in the prior year.
- Relaunched our rentals business under a new brand, Rent., with a newly redesigned consumer app experience, and updated solutions website.
-
Delivered improved software for customers, agents, partners and renovations staff including:
- Added internet provider and speed data to U.S. home listings, making our most-requested feature available to potential homebuyers.
- Released Mobile Agent Tools in the Apple App Store, making it easier for agents to have the latest and greatest version of our software while on the go.
Business Outlook
The following forward-looking statements reflect Redfin's expectations as of August 4, 2022, and are subject to substantial uncertainty.
For the third quarter of 2022 we expect:
- Total revenue between $590 million and $627 million, representing a year-over-year growth between 9% and 16% compared to the third quarter of 2021. Included within total revenue are real estate services segment revenue between $200 million and $208 million, properties segment revenue between $305 million and $330 million, rentals revenue between $37 million and $38 million and mortgage revenue between $45 million and $48 million.
- Total net loss is expected to be between $87 million and $79 million, compared to net loss of $19 million in the third quarter of 2021. This guidance includes approximately $37 million in total marketing expenses, $19 million of stock-based compensation, $16 million of depreciation and amortization, and $5 million of net interest expense. Adjusted EBITDA loss is expected to be between $47 million and $39 million. Furthermore, we expect to pay a quarterly dividend of 30,640 shares of common stock to our preferred stockholder.
Conference Call
Redfin will webcast a conference call to discuss the results at 1:30 p.m. Pacific Time today. The webcast will be open to the public at http://investors.redfin.com. The webcast will remain available on the investor relations website for at least three months following the conference call.
(1) Prior to the second quarter of 2022, we reported our U.S. market share based on the aggregate home value of our real estate services transactions, relative to the aggregate value of all U.S. home sales, which we computed based on the mean sale price of U.S. homes provided by the National Association of REALTORS® (“NAR”). Beginning in the second quarter of 2022, NAR (1) revised its methodology of computing the mean sale price, (2) restated its previously reported mean sale price beginning from January 2020 (and indicated that previously reported mean sale price prior to January 2020 is not comparable), and (3) discontinued publication of the mean sale price as part of its primary data set. Due to these changes, we are now reporting our U.S. market share based on the number of homes sold, rather than the dollar value of homes sold. Our market share by number of homes sold has historically been lower than our market share by dollar value of homes sold.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including our future operating results, as described under Business Outlook. We believe our expectations related to these forward-looking statements are reasonable, but actual results may turn out to be materially different. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our annual report for the year ended December 31, 2021, as supplemented by our quarterly report for the quarter ended June 30, 2022, both of which are available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.
Non-GAAP Financial Measure
To supplement our consolidated financial statements that are prepared and presented in accordance with GAAP, we also compute and present adjusted EBITDA, which is a non-GAAP financial measure. We believe adjusted EBITDA is useful for investors because it enhances period-to-period comparability of our financial statements on a consistent basis and provides investors with useful insight into the underlying trends of the business. The presentation of this financial measure is not intended to be considered in isolation or as a substitute of, or superior to, our financial information prepared and presented in accordance with GAAP. Our calculation of adjusted EBITDA may be different from adjusted EBITDA or similar non-GAAP financial measures used by other companies, limiting its usefulness for comparison purposes. Our adjusted EBITDA, on a consolidated basis and for each reportable segment, for the three months ended June 30, 2022 and 2021 is presented below, along with a reconciliation of adjusted EBITDA to net loss. The reconciliation of adjusted EBITDA to net loss for the three months ended September 30, 2022 is also below.
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.
Redfin-F
Redfin Corporation and Subsidiaries Consolidated Balance Sheets (in thousands, except share and per share amounts, unaudited) |
|||||||
|
June 30, 2022 |
|
December 31, 2021 |
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
379,922 |
|
|
$ |
591,003 |
|
Restricted cash |
|
28,279 |
|
|
|
127,278 |
|
Short-term investments |
|
82,506 |
|
|
|
33,737 |
|
Accounts receivable, net of allowances for credit losses of $1,655 and $1,298 |
|
86,082 |
|
|
|
69,594 |
|
Inventory |
|
377,518 |
|
|
|
358,221 |
|
Loans held for sale |
|
306,364 |
|
|
|
35,759 |
|
Prepaid expenses |
|
30,775 |
|
|
|
22,948 |
|
Other current assets |
|
18,378 |
|
|
|
7,524 |
|
Total current assets |
|
1,309,824 |
|
|
|
1,246,064 |
|
Property and equipment, net |
|
59,709 |
|
|
|
58,671 |
|
Right-of-use assets, net |
|
54,321 |
|
|
|
54,200 |
|
Mortgage servicing rights, at fair value |
|
35,050 |
|
|
|
— |
|
Long-term investments |
|
52,989 |
|
|
|
54,828 |
|
Goodwill |
|
461,349 |
|
|
|
409,382 |
|
Intangible assets, net |
|
181,766 |
|
|
|
185,929 |
|
Other assets, noncurrent |
|
12,720 |
|
|
|
12,898 |
|
Total assets |
$ |
2,167,728 |
|
|
$ |
2,021,972 |
|
Liabilities, mezzanine equity, and stockholders' equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
20,237 |
|
|
$ |
12,546 |
|
Accrued and other liabilities |
|
161,803 |
|
|
|
118,122 |
|
Warehouse credit facilities |
|
298,303 |
|
|
|
33,043 |
|
Secured revolving credit facility |
|
156,540 |
|
|
|
199,781 |
|
Convertible senior notes, net |
|
— |
|
|
|
23,280 |
|
Lease liabilities |
|
18,180 |
|
|
|
15,040 |
|
Total current liabilities |
|
655,063 |
|
|
|
401,812 |
|
Lease liabilities, noncurrent |
|
50,920 |
|
|
|
55,222 |
|
Convertible senior notes, net, noncurrent |
|
1,239,873 |
|
|
|
1,214,017 |
|
Deferred tax liabilities |
|
728 |
|
|
|
1,201 |
|
Total liabilities |
|
1,946,584 |
|
|
|
1,672,252 |
|
Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively |
|
39,891 |
|
|
|
39,868 |
|
Stockholders’ equity |
|
|
|
||||
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 108,415,939 and 106,308,767 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively |
|
108 |
|
|
|
106 |
|
Additional paid-in capital |
|
723,251 |
|
|
|
682,084 |
|
Accumulated other comprehensive loss |
|
(990 |
) |
|
|
(174 |
) |
Accumulated deficit |
|
(541,116 |
) |
|
|
(372,164 |
) |
Total stockholders’ equity |
|
181,253 |
|
|
|
309,852 |
|
Total liabilities, mezzanine equity, and stockholders’ equity |
$ |
2,167,728 |
|
|
$ |
2,021,972 |
|
Redfin Corporation and Subsidiaries Consolidated Statements of Comprehensive Loss (in thousands, except share and per share amounts, unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Service |
$ |
344,309 |
|
|
$ |
298,870 |
|
|
$ |
561,902 |
|
|
$ |
474,463 |
|
Product |
|
262,606 |
|
|
|
172,445 |
|
|
|
642,359 |
|
|
|
265,171 |
|
Total revenue |
|
606,915 |
|
|
|
471,315 |
|
|
|
1,204,261 |
|
|
|
739,634 |
|
Cost of revenue(1) |
|
|
|
|
|
|
|
||||||||
Service |
|
232,886 |
|
|
|
177,762 |
|
|
|
398,695 |
|
|
|
312,613 |
|
Product |
|
256,026 |
|
|
|
167,417 |
|
|
|
615,026 |
|
|
|
258,527 |
|
Total cost of revenue |
|
488,912 |
|
|
|
345,179 |
|
|
|
1,013,721 |
|
|
|
571,140 |
|
Gross profit |
|
118,003 |
|
|
|
126,136 |
|
|
|
190,540 |
|
|
|
168,494 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Technology and development(1) |
|
51,506 |
|
|
|
41,488 |
|
|
|
101,146 |
|
|
|
69,166 |
|
Marketing(1) |
|
56,743 |
|
|
|
55,398 |
|
|
|
100,085 |
|
|
|
67,200 |
|
General and administrative(1) |
|
71,733 |
|
|
|
59,567 |
|
|
|
130,699 |
|
|
|
96,957 |
|
Restructuring and reorganization |
|
12,677 |
|
|
|
— |
|
|
|
18,386 |
|
|
|
— |
|
Total operating expenses |
|
192,659 |
|
|
|
156,453 |
|
|
|
350,316 |
|
|
|
233,323 |
|
Loss from operations |
|
(74,656 |
) |
|
|
(30,317 |
) |
|
|
(159,776 |
) |
|
|
(64,829 |
) |
Interest income |
|
554 |
|
|
|
135 |
|
|
|
774 |
|
|
|
293 |
|
Interest expense |
|
(3,620 |
) |
|
|
(2,813 |
) |
|
|
(7,481 |
) |
|
|
(4,151 |
) |
Income tax (expense) benefit |
|
(159 |
) |
|
|
5,052 |
|
|
|
(293 |
) |
|
|
5,052 |
|
Other (expense) income, net |
|
(265 |
) |
|
|
65 |
|
|
|
(2,176 |
) |
|
|
(27 |
) |
Net loss |
$ |
(78,146 |
) |
|
$ |
(27,878 |
) |
|
$ |
(168,952 |
) |
|
$ |
(63,662 |
) |
Dividends on convertible preferred stock |
|
(350 |
) |
|
|
(1,878 |
) |
|
|
(1,144 |
) |
|
|
(4,214 |
) |
Net loss attributable to common stock—basic and diluted |
$ |
(78,496 |
) |
|
$ |
(29,756 |
) |
|
$ |
(170,096 |
) |
|
$ |
(67,876 |
) |
Net loss per share attributable to common stock—basic and diluted |
$ |
(0.73 |
) |
|
$ |
(0.29 |
) |
|
$ |
(1.59 |
) |
|
$ |
(0.65 |
) |
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted |
|
107,396,575 |
|
|
|
104,391,337 |
|
|
|
107,032,381 |
|
|
|
103,912,212 |
|
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(78,146 |
) |
|
$ |
(27,878 |
) |
|
$ |
(168,952 |
) |
|
$ |
(63,662 |
) |
Other comprehensive income |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
34 |
|
|
|
— |
|
|
|
38 |
|
|
|
— |
|
Unrealized gain on available-for-sale debt securities |
|
217 |
|
|
|
84 |
|
|
|
778 |
|
|
|
134 |
|
Comprehensive loss |
$ |
(77,895 |
) |
|
$ |
(27,794 |
) |
|
$ |
(168,136 |
) |
|
$ |
(63,528 |
) |
(1) Includes stock-based compensation as follows: |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Cost of revenue |
$ |
3,879 |
|
|
$ |
3,758 |
|
|
$ |
7,257 |
|
|
$ |
6,736 |
|
Technology and development |
|
7,700 |
|
|
|
5,771 |
|
|
|
15,665 |
|
|
|
11,532 |
|
Marketing |
|
924 |
|
|
|
535 |
|
|
|
1,996 |
|
|
|
1,078 |
|
General and administrative |
|
4,310 |
|
|
|
3,679 |
|
|
|
8,683 |
|
|
|
6,981 |
|
Total |
$ |
16,813 |
|
|
$ |
13,743 |
|
|
$ |
33,601 |
|
|
$ |
26,327 |
|
Redfin Corporation and Subsidiaries Consolidated Statements of Cash Flows (in thousands, unaudited) |
|||||||
|
Six Months Ended June 30, |
||||||
|
2022 |
|
2021 |
||||
Operating Activities |
|
|
|
||||
Net loss |
$ |
(168,952 |
) |
|
$ |
(63,662 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
31,140 |
|
|
|
18,018 |
|
Stock-based compensation |
|
33,601 |
|
|
|
26,327 |
|
Amortization of debt discount and issuance costs |
|
2,899 |
|
|
|
2,203 |
|
Non-cash lease expense |
|
7,096 |
|
|
|
5,448 |
|
Net loss on IRLCs, forward sales commitments, and loans held for sale |
|
2,721 |
|
|
|
238 |
|
Other |
|
3,170 |
|
|
|
169 |
|
Change in assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
(6,791 |
) |
|
|
(22,312 |
) |
Inventory |
|
(19,297 |
) |
|
|
(199,845 |
) |
Prepaid expenses and other assets |
|
(2,852 |
) |
|
|
(7,137 |
) |
Accounts payable |
|
5,964 |
|
|
|
15,766 |
|
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent |
|
5,529 |
|
|
|
26,915 |
|
Lease liabilities |
|
(8,042 |
) |
|
|
(6,144 |
) |
Change in fair value of mortgage servicing rights, net |
|
(878 |
) |
|
|
— |
|
Origination of mortgage servicing rights |
|
(964 |
) |
|
|
— |
|
Proceeds from sale of mortgage servicing rights |
|
774 |
|
|
|
— |
|
Origination of loans held for sale |
|
(1,641,377 |
) |
|
|
(488,274 |
) |
Proceeds from sale of loans originated as held for sale |
|
1,587,759 |
|
|
|
478,652 |
|
Net cash used in operating activities |
|
(168,500 |
) |
|
|
(213,638 |
) |
Investing activities |
|
|
|
||||
Purchases of property and equipment |
|
(12,131 |
) |
|
|
(13,580 |
) |
Purchases of investments |
|
(82,184 |
) |
|
|
(104,877 |
) |
Sales of investments |
|
12,946 |
|
|
|
89,536 |
|
Maturities of investments |
|
19,425 |
|
|
|
92,843 |
|
Cash paid for acquisition, net of cash acquired |
|
(97,341 |
) |
|
|
(608,000 |
) |
Net cash used in investing activities |
|
(159,285 |
) |
|
|
(544,078 |
) |
Financing activities |
|
|
|
||||
Proceeds from the issuance of common stock pursuant to employee equity plans |
|
9,258 |
|
|
|
12,496 |
|
Tax payments related to net share settlements on restricted stock units |
|
(3,743 |
) |
|
|
(16,530 |
) |
Borrowings from warehouse credit facilities |
|
1,628,684 |
|
|
|
464,250 |
|
Repayments to warehouse credit facilities |
|
(1,572,033 |
) |
|
|
(456,854 |
) |
Borrowings from secured revolving credit facility |
|
326,025 |
|
|
|
230,608 |
|
Repayments to secured revolving credit facility |
|
(369,266 |
) |
|
|
(130,788 |
) |
Proceeds from issuance of convertible senior notes, net of issuance costs |
|
— |
|
|
|
561,529 |
|
Purchases of capped calls related to convertible senior notes |
|
— |
|
|
|
(62,647 |
) |
Payments for repurchases and conversions of convertible senior notes |
|
— |
|
|
|
(1,925 |
) |
Other financing payables |
|
— |
|
|
|
97 |
|
Principal payments under finance lease obligations |
|
(414 |
) |
|
|
(353 |
) |
Cash paid for secured revolving credit facility issuance costs |
|
(764 |
) |
|
|
(305 |
) |
Net cash provided by financing activities |
|
17,747 |
|
|
|
599,578 |
|
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
|
(42 |
) |
|
|
— |
|
Net change in cash, cash equivalents, and restricted cash |
|
(310,080 |
) |
|
|
(158,138 |
) |
Cash, cash equivalents, and restricted cash: |
|
|
|
||||
Beginning of period |
|
718,281 |
|
|
|
945,820 |
|
End of period |
$ |
408,201 |
|
|
$ |
787,682 |
|
Redfin Corporation and Subsidiaries Supplemental Financial Information and Business Metrics (unaudited) |
|||||||||||||||||||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||||||||||||||||
|
Jun. 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
|
Mar. 31,
|
|
Dec. 31,
|
|
Sep. 30,
|
|
Jun. 30,
|
||||||||||||||||||
Monthly average visitors (in thousands) |
|
52,698 |
|
|
|
51,287 |
|
|
|
44,665 |
|
|
|
49,147 |
|
|
|
48,437 |
|
|
|
46,202 |
|
|
|
44,135 |
|
|
|
49,258 |
|
|
|
42,537 |
|
Real estate services transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Brokerage |
|
20,565 |
|
|
|
15,001 |
|
|
|
19,428 |
|
|
|
21,929 |
|
|
|
21,006 |
|
|
|
14,317 |
|
|
|
16,951 |
|
|
|
18,980 |
|
|
|
13,828 |
|
Partner |
|
3,983 |
|
|
|
3,417 |
|
|
|
4,603 |
|
|
|
4,755 |
|
|
|
4,597 |
|
|
|
3,944 |
|
|
|
4,940 |
|
|
|
5,180 |
|
|
|
2,691 |
|
Total |
|
24,548 |
|
|
|
18,418 |
|
|
|
24,031 |
|
|
|
26,684 |
|
|
|
25,603 |
|
|
|
18,261 |
|
|
|
21,891 |
|
|
|
24,160 |
|
|
|
16,519 |
|
Real estate services revenue per transaction |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Brokerage |
$ |
11,692 |
|
|
$ |
11,191 |
|
|
$ |
10,900 |
|
|
$ |
11,107 |
|
|
$ |
11,307 |
|
|
$ |
10,927 |
|
|
$ |
10,751 |
|
|
$ |
10,241 |
|
|
$ |
9,296 |
|
Partner |
|
2,851 |
|
|
|
2,814 |
|
|
|
2,819 |
|
|
|
2,990 |
|
|
|
3,195 |
|
|
|
3,084 |
|
|
|
3,123 |
|
|
|
2,988 |
|
|
|
2,417 |
|
Aggregate |
|
10,258 |
|
|
|
9,637 |
|
|
|
9,352 |
|
|
|
9,661 |
|
|
|
9,850 |
|
|
|
9,233 |
|
|
|
9,030 |
|
|
|
8,686 |
|
|
|
8,175 |
|
U.S. market share by units(1) |
|
0.82 |
% |
|
|
0.79 |
% |
|
|
0.78 |
% |
|
|
0.78 |
% |
|
|
0.77 |
% |
|
|
0.75 |
% |
|
|
0.68 |
% |
|
|
0.70 |
% |
|
|
0.66 |
% |
Revenue from top-10 Redfin markets as a percentage of real estate services revenue |
|
59 |
% |
|
|
57 |
% |
|
|
61 |
% |
|
|
62 |
% |
|
|
64 |
% |
|
|
62 |
% |
|
|
63 |
% |
|
|
63 |
% |
|
|
63 |
% |
Average number of lead agents |
|
2,640 |
|
|
|
2,750 |
|
|
|
2,485 |
|
|
|
2,370 |
|
|
|
2,456 |
|
|
|
2,277 |
|
|
|
1,981 |
|
|
|
1,820 |
|
|
|
1,399 |
|
RedfinNow homes sold |
|
423 |
|
|
|
617 |
|
|
|
600 |
|
|
|
388 |
|
|
|
292 |
|
|
|
171 |
|
|
|
83 |
|
|
|
37 |
|
|
|
162 |
|
Revenue per RedfinNow home sold (in ones) |
$ |
604,120 |
|
|
$ |
608,851 |
|
|
$ |
622,519 |
|
|
$ |
599,963 |
|
|
$ |
571,670 |
|
|
$ |
525,765 |
|
|
$ |
471,895 |
|
|
$ |
504,730 |
|
|
$ |
444,757 |
|
Mortgage originations by dollars (in millions) |
$ |
1,565 |
|
|
$ |
159 |
|
|
$ |
242 |
|
|
$ |
258 |
|
|
$ |
261 |
|
|
$ |
227 |
|
|
$ |
206 |
|
|
$ |
185 |
|
|
$ |
161 |
|
Mortgage originations by units (in ones) |
|
3,860 |
|
|
|
414 |
|
|
|
591 |
|
|
|
671 |
|
|
|
749 |
|
|
|
632 |
|
|
|
570 |
|
|
|
539 |
|
|
|
475 |
|
(1) Prior to the second quarter of 2022, we reported our U.S. market share based on the aggregate home value of our real estate services transactions, relative to the aggregate value of all U.S. home sales, which we computed based on the mean sale price of U.S. homes provided by the National Association of REALTORS® (“NAR”). Beginning in the second quarter of 2022, NAR (1) revised its methodology of computing the mean sale price, (2) restated its previously reported mean sale price beginning from January 2020 (and indicated that previously reported mean sale price prior to January 2020 is not comparable), and (3) discontinued publication of the mean sale price as part of its primary data set. Due to these changes, we are now reporting our U.S. market share based on the number of homes sold, rather than the dollar value of homes sold. Our market share by number of homes sold has historically been lower than our market share by dollar value of homes sold.
Supplemental Financial Information Segment Reporting and Reconciliation of Adjusted EBITDA to Net Income (Loss) (unaudited, in thousands) |
|||||||||||||||||||||||||||
|
Three Months Ended June 30, 2022 |
||||||||||||||||||||||||||
|
Real estate
|
|
Properties |
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||||
Revenue |
$ |
251,809 |
|
|
$ |
262,606 |
|
|
$ |
38,248 |
|
|
$ |
53,098 |
|
|
$ |
5,894 |
|
|
$ |
(4,740 |
) |
|
$ |
606,915 |
|
Cost of revenue |
|
177,698 |
|
|
|
255,839 |
|
|
|
7,901 |
|
|
|
46,316 |
|
|
|
5,898 |
|
|
|
(4,740 |
) |
|
|
488,912 |
|
Gross profit |
|
74,111 |
|
|
|
6,767 |
|
|
|
30,347 |
|
|
|
6,782 |
|
|
|
(4 |
) |
|
|
— |
|
|
|
118,003 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Technology and development |
|
27,696 |
|
|
|
4,684 |
|
|
|
14,871 |
|
|
|
1,904 |
|
|
|
1,189 |
|
|
|
1,162 |
|
|
|
51,506 |
|
Marketing |
|
40,765 |
|
|
|
821 |
|
|
|
13,086 |
|
|
|
1,843 |
|
|
|
71 |
|
|
|
157 |
|
|
|
56,743 |
|
General and administrative |
|
24,341 |
|
|
|
3,210 |
|
|
|
21,824 |
|
|
|
9,450 |
|
|
|
850 |
|
|
|
12,058 |
|
|
|
71,733 |
|
Restructuring and reorganization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,677 |
|
|
|
12,677 |
|
Total operating expenses |
|
92,802 |
|
|
|
8,715 |
|
|
|
49,781 |
|
|
|
13,197 |
|
|
|
2,110 |
|
|
|
26,054 |
|
|
|
192,659 |
|
Loss from operations |
|
(18,691 |
) |
|
|
(1,948 |
) |
|
|
(19,434 |
) |
|
|
(6,415 |
) |
|
|
(2,114 |
) |
|
|
(26,054 |
) |
|
|
(74,656 |
) |
Interest income, interest expense, income tax expense, and other expense, net |
|
(123 |
) |
|
|
(1,245 |
) |
|
|
232 |
|
|
|
(35 |
) |
|
|
11 |
|
|
|
(2,330 |
) |
|
|
(3,490 |
) |
Net loss |
$ |
(18,814 |
) |
|
$ |
(3,193 |
) |
|
$ |
(19,202 |
) |
|
$ |
(6,450 |
) |
|
$ |
(2,103 |
) |
|
$ |
(28,384 |
) |
|
$ |
(78,146 |
) |
|
Three Months Ended June 30, 2022 |
||||||||||||||||||||||||||
|
Real estate
|
|
Properties |
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||||
Net loss |
$ |
(18,814 |
) |
|
$ |
(3,193 |
) |
|
$ |
(19,202 |
) |
|
$ |
(6,450 |
) |
|
$ |
(2,103 |
) |
|
$ |
(28,384 |
) |
|
$ |
(78,146 |
) |
Interest income(1) |
|
— |
|
|
|
(159 |
) |
|
|
(1 |
) |
|
|
(2,929 |
) |
|
|
(12 |
) |
|
|
(381 |
) |
|
|
(3,482 |
) |
Interest expense(2) |
|
— |
|
|
|
1,403 |
|
|
|
— |
|
|
|
1,958 |
|
|
|
— |
|
|
|
2,214 |
|
|
|
5,575 |
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
(230 |
) |
|
|
33 |
|
|
|
— |
|
|
|
356 |
|
|
|
159 |
|
Depreciation and amortization |
|
4,551 |
|
|
|
603 |
|
|
|
9,511 |
|
|
|
1,070 |
|
|
|
318 |
|
|
|
274 |
|
|
|
16,327 |
|
Stock-based compensation(3) |
|
9,670 |
|
|
|
1,527 |
|
|
|
2,739 |
|
|
|
780 |
|
|
|
441 |
|
|
|
1,656 |
|
|
|
16,813 |
|
Acquisition-related costs(4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,507 |
|
|
|
1,507 |
|
Restructuring and reorganization(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,677 |
|
|
|
12,677 |
|
Adjusted EBITDA |
$ |
(4,593 |
) |
|
$ |
181 |
|
|
$ |
(7,183 |
) |
|
$ |
(5,538 |
) |
|
$ |
(1,356 |
) |
|
$ |
(10,081 |
) |
|
$ |
(28,570 |
) |
(1) Interest income includes $2.9 million of interest income related to originated mortgage loans for the three months ended June 30, 2022.
(2) Interest expense includes $2.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2022.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 12 to our consolidated financial statements for more information.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022 workforce reduction.
|
Three Months Ended June 30, 2021 |
||||||||||||||||||||||||||
|
Real estate
|
|
Properties |
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||||
Revenue |
$ |
252,199 |
|
|
$ |
172,445 |
|
|
$ |
42,548 |
|
|
$ |
5,099 |
|
|
$ |
3,422 |
|
|
$ |
(4,398 |
) |
|
$ |
471,315 |
|
Cost of revenue |
|
164,125 |
|
|
|
167,420 |
|
|
|
7,570 |
|
|
|
6,832 |
|
|
|
3,630 |
|
|
|
(4,398 |
) |
|
|
345,179 |
|
Gross profit |
|
88,074 |
|
|
|
5,025 |
|
|
|
34,978 |
|
|
|
(1,733 |
) |
|
|
(208 |
) |
|
|
— |
|
|
|
126,136 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Technology and development |
|
20,010 |
|
|
|
3,080 |
|
|
|
13,568 |
|
|
|
2,536 |
|
|
|
479 |
|
|
|
1,815 |
|
|
|
41,488 |
|
Marketing |
|
41,746 |
|
|
|
572 |
|
|
|
12,607 |
|
|
|
130 |
|
|
|
30 |
|
|
|
313 |
|
|
|
55,398 |
|
General and administrative |
|
18,498 |
|
|
|
2,078 |
|
|
|
23,116 |
|
|
|
1,927 |
|
|
|
416 |
|
|
|
13,532 |
|
|
|
59,567 |
|
Total operating expenses |
|
80,254 |
|
|
|
5,730 |
|
|
|
49,291 |
|
|
|
4,593 |
|
|
|
925 |
|
|
|
15,660 |
|
|
|
156,453 |
|
Income (loss) from operations |
|
7,820 |
|
|
|
(705 |
) |
|
|
(14,313 |
) |
|
|
(6,326 |
) |
|
|
(1,133 |
) |
|
|
(15,660 |
) |
|
|
(30,317 |
) |
Interest income, interest expense, income tax expense, and other expense, net |
|
(3 |
) |
|
|
(662 |
) |
|
|
212 |
|
|
|
1 |
|
|
|
1 |
|
|
|
2,890 |
|
|
|
2,439 |
|
Net income (loss) |
$ |
7,817 |
|
|
$ |
(1,367 |
) |
|
$ |
(14,101 |
) |
|
$ |
(6,325 |
) |
|
$ |
(1,132 |
) |
|
$ |
(12,770 |
) |
|
$ |
(27,878 |
) |
|
Three Months Ended June 30, 2021 |
|||||||||||||||||||||||||
|
Real estate
|
|
Properties |
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
|||||||||||||
Net income (loss) |
$ |
7,817 |
|
$ |
(1,367 |
) |
|
$ |
(14,101 |
) |
|
$ |
(6,325 |
) |
|
$ |
(1,132 |
) |
|
$ |
(12,770 |
) |
|
$ |
(27,878 |
) |
Interest income(1) |
|
— |
|
|
(2 |
) |
|
|
— |
|
|
|
(414 |
) |
|
|
(1 |
) |
|
|
(131 |
) |
|
|
(548 |
) |
Interest expense(2) |
|
— |
|
|
664 |
|
|
|
— |
|
|
|
407 |
|
|
|
— |
|
|
|
2,149 |
|
|
|
3,220 |
|
Income tax expense |
|
— |
|
|
— |
|
|
|
(212 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4,840 |
) |
|
|
(5,052 |
) |
Depreciation and amortization |
|
3,180 |
|
|
412 |
|
|
|
9,110 |
|
|
|
313 |
|
|
|
167 |
|
|
|
495 |
|
|
|
13,677 |
|
Stock-based compensation(3) |
|
9,042 |
|
|
1,239 |
|
|
|
113 |
|
|
|
770 |
|
|
|
191 |
|
|
|
2,388 |
|
|
|
13,743 |
|
Acquisition-related costs(4) |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,616 |
|
|
|
5,616 |
|
Restructuring and reorganization(5) |
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
$ |
20,039 |
|
$ |
946 |
|
|
$ |
(5,090 |
) |
|
$ |
(5,249 |
) |
|
$ |
(775 |
) |
|
$ |
(7,093 |
) |
|
$ |
2,778 |
|
(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended June 30, 2021.
(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 12 to our consolidated financial statements for more information.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022 workforce reduction.
|
Six Months Ended June 30, 2022 |
||||||||||||||||||||||||||
|
Real estate
|
|
Properties |
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||||
Revenue |
$ |
429,295 |
|
|
$ |
642,359 |
|
|
$ |
76,292 |
|
|
$ |
56,015 |
|
|
$ |
10,263 |
|
|
$ |
(9,963 |
) |
|
$ |
1,204,261 |
|
Cost of revenue |
|
331,482 |
|
|
|
614,704 |
|
|
|
15,094 |
|
|
|
51,834 |
|
|
|
10,570 |
|
|
|
(9,963 |
) |
|
|
1,013,721 |
|
Gross profit |
|
97,813 |
|
|
|
27,655 |
|
|
|
61,198 |
|
|
|
4,181 |
|
|
|
(307 |
) |
|
|
— |
|
|
|
190,540 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Technology and development |
|
54,435 |
|
|
|
8,803 |
|
|
|
29,154 |
|
|
|
4,251 |
|
|
|
2,225 |
|
|
|
2,278 |
|
|
|
101,146 |
|
Marketing |
|
71,608 |
|
|
|
1,974 |
|
|
|
24,128 |
|
|
|
1,871 |
|
|
|
125 |
|
|
|
379 |
|
|
|
100,085 |
|
General and administrative |
|
47,333 |
|
|
|
6,035 |
|
|
|
46,015 |
|
|
|
10,974 |
|
|
|
1,562 |
|
|
|
18,780 |
|
|
|
130,699 |
|
Restructuring and reorganization |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,386 |
|
|
|
18,386 |
|
Total operating expenses |
|
173,376 |
|
|
|
16,812 |
|
|
|
99,297 |
|
|
|
17,096 |
|
|
|
3,912 |
|
|
|
39,823 |
|
|
|
350,316 |
|
Loss from operations |
|
(75,563 |
) |
|
|
10,843 |
|
|
|
(38,099 |
) |
|
|
(12,915 |
) |
|
|
(4,219 |
) |
|
|
(39,823 |
) |
|
|
(159,776 |
) |
Interest income, interest expense, income tax expense, and other expense, net |
|
(123 |
) |
|
|
(2,869 |
) |
|
|
701 |
|
|
|
(35 |
) |
|
|
12 |
|
|
|
(6,862 |
) |
|
|
(9,176 |
) |
Net (loss) income |
$ |
(75,686 |
) |
|
$ |
7,974 |
|
|
$ |
(37,398 |
) |
|
$ |
(12,950 |
) |
|
$ |
(4,207 |
) |
|
$ |
(46,685 |
) |
|
$ |
(168,952 |
) |
|
Six Months Ended June 30, 2022 |
||||||||||||||||||||||||||
|
Real estate
|
|
Properties |
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||||
Net (loss) income |
$ |
(75,686 |
) |
|
$ |
7,974 |
|
|
$ |
(37,398 |
) |
|
$ |
(12,950 |
) |
|
$ |
(4,207 |
) |
|
$ |
(46,685 |
) |
|
$ |
(168,952 |
) |
Interest income(1) |
|
— |
|
|
|
(184 |
) |
|
|
(1 |
) |
|
|
(3,247 |
) |
|
|
(13 |
) |
|
|
(575 |
) |
|
|
(4,020 |
) |
Interest expense(2) |
|
— |
|
|
|
3,052 |
|
|
|
— |
|
|
|
2,235 |
|
|
|
— |
|
|
|
4,427 |
|
|
|
9,714 |
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
(434 |
) |
|
|
33 |
|
|
|
— |
|
|
|
694 |
|
|
|
293 |
|
Depreciation and amortization |
|
8,569 |
|
|
|
1,141 |
|
|
|
18,867 |
|
|
|
1,372 |
|
|
|
573 |
|
|
|
618 |
|
|
|
31,140 |
|
Stock-based compensation(3) |
|
19,810 |
|
|
|
3,064 |
|
|
|
4,979 |
|
|
|
1,381 |
|
|
|
810 |
|
|
|
3,557 |
|
|
|
33,601 |
|
Acquisition-related costs(4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,424 |
|
|
|
2,424 |
|
Restructuring and reorganization(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18,386 |
|
|
|
18,386 |
|
Adjusted EBITDA |
$ |
(47,307 |
) |
|
$ |
15,047 |
|
|
$ |
(13,987 |
) |
|
$ |
(11,176 |
) |
|
$ |
(2,837 |
) |
|
$ |
(17,154 |
) |
|
$ |
(77,414 |
) |
(1) Interest income includes $3.2 million of interest income related to originated mortgage loans for the six months ended June 30, 2022.
(2) Interest expense includes $2.2 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2022.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 12 to our consolidated financial statements for more information.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022 workforce reduction.
|
Six Months Ended June 30, 2021 |
||||||||||||||||||||||||||
|
Real estate
|
|
Properties |
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||||
Revenue |
$ |
420,808 |
|
|
$ |
265,171 |
|
|
$ |
42,548 |
|
|
$ |
10,810 |
|
|
$ |
7,068 |
|
|
$ |
(6,771 |
) |
|
$ |
739,634 |
|
Cost of revenue |
|
292,342 |
|
|
|
258,551 |
|
|
|
7,570 |
|
|
|
12,701 |
|
|
|
6,747 |
|
|
|
(6,771 |
) |
|
|
571,140 |
|
Gross profit |
|
128,466 |
|
|
|
6,620 |
|
|
|
34,978 |
|
|
|
(1,891 |
) |
|
|
321 |
|
|
|
— |
|
|
|
168,494 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Technology and development |
|
40,130 |
|
|
|
5,910 |
|
|
|
13,767 |
|
|
|
4,904 |
|
|
|
952 |
|
|
|
3,503 |
|
|
|
69,166 |
|
Marketing |
|
52,928 |
|
|
|
779 |
|
|
|
12,611 |
|
|
|
264 |
|
|
|
63 |
|
|
|
555 |
|
|
|
67,200 |
|
General and administrative |
|
42,429 |
|
|
|
4,507 |
|
|
|
23,149 |
|
|
|
3,352 |
|
|
|
933 |
|
|
|
22,587 |
|
|
|
96,957 |
|
Total operating expenses |
|
135,487 |
|
|
|
11,196 |
|
|
|
49,527 |
|
|
|
8,520 |
|
|
|
1,948 |
|
|
|
26,645 |
|
|
|
233,323 |
|
Loss from operations |
|
(7,021 |
) |
|
|
(4,576 |
) |
|
|
(14,549 |
) |
|
|
(10,411 |
) |
|
|
(1,627 |
) |
|
|
(26,645 |
) |
|
|
(64,829 |
) |
Interest income, interest expense, income tax expense, and other expense, net |
|
(31 |
) |
|
|
(1,082 |
) |
|
|
212 |
|
|
|
2 |
|
|
|
1 |
|
|
|
2,065 |
|
|
|
1,167 |
|
Net loss |
$ |
(7,052 |
) |
|
$ |
(5,658 |
) |
|
$ |
(14,337 |
) |
|
$ |
(10,409 |
) |
|
$ |
(1,626 |
) |
|
$ |
(24,580 |
) |
|
$ |
(63,662 |
) |
|
Six Months Ended June 30, 2021 |
||||||||||||||||||||||||||
|
Real estate
|
|
Properties |
|
Rentals |
|
Mortgage |
|
Other |
|
Corporate
|
|
Total |
||||||||||||||
Net loss |
$ |
(7,052 |
) |
|
$ |
(5,658 |
) |
|
$ |
(14,337 |
) |
|
$ |
(10,409 |
) |
|
$ |
(1,626 |
) |
|
$ |
(24,580 |
) |
|
$ |
(63,662 |
) |
Interest income(1) |
|
— |
|
|
|
(7 |
) |
|
|
— |
|
|
|
(771 |
) |
|
|
(1 |
) |
|
|
(284 |
) |
|
|
(1,063 |
) |
Interest expense(2) |
|
— |
|
|
|
1,089 |
|
|
|
— |
|
|
|
835 |
|
|
|
— |
|
|
|
3,063 |
|
|
|
4,987 |
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
(212 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4,840 |
) |
|
|
(5,052 |
) |
Depreciation and amortization |
|
6,230 |
|
|
|
803 |
|
|
|
9,111 |
|
|
|
591 |
|
|
|
334 |
|
|
|
949 |
|
|
|
18,018 |
|
Stock-based compensation(3) |
|
17,560 |
|
|
|
2,373 |
|
|
|
174 |
|
|
|
1,444 |
|
|
|
341 |
|
|
|
4,435 |
|
|
|
26,327 |
|
Acquisition-related costs(4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,723 |
|
|
|
7,723 |
|
Restructuring and reorganization(5) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted EBITDA |
$ |
16,738 |
|
|
$ |
(1,400 |
) |
|
$ |
(5,264 |
) |
|
$ |
(8,310 |
) |
|
$ |
(952 |
) |
|
$ |
(13,534 |
) |
|
$ |
(12,722 |
) |
(1) Interest income includes $0.8 million of interest income related to originated mortgage loans for the six months ended June 30, 2021.
(2) Interest expense includes $0.8 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program. See Note 12 to our consolidated financial statements for more information.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities from our acquisitions of Bay Equity and Rent., and from our June 2022 workforce reduction.
Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance (unaudited, in millions) |
|||||||
|
Three Months Ended September 30, 2022 |
||||||
|
Low |
|
High |
||||
Net loss |
$ |
(87 |
) |
|
$ |
(79 |
) |
Net interest expense |
|
5 |
|
|
|
5 |
|
Income tax expense |
|
— |
|
|
|
— |
|
Depreciation and amortization |
|
16 |
|
|
|
16 |
|
Stock-based compensation |
|
19 |
|
|
|
19 |
|
Acquisition-related costs |
|
— |
|
|
|
— |
|
Restructuring and reorganization |
|
— |
|
|
|
— |
|
Adjusted EBITDA |
$ |
(47 |
) |
|
$ |
(39 |
) |
Note: Figures may not sum due to rounding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220804005874/en/
Contacts
Investor Relations
Meg Nunnally, 206-576-8610
ir@redfin.com
Public Relations
Mariam Sughayer, 206-876-1322
press@redfin.com
