Redfin 2Q Revenues Up, Profits Down
Summary
Technology-powered real estate company Redfin Corp. announced its second quarter earnings Thursday after the close of the stock market. “The housing market took a turn for the worse in the second quarter,” Redfin CEO Glenn Kelman said in a news release Thursday. “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." During an earnings call, Kelman also acknowledged that the company’s performance was below the expectations set forth after the first-quarter results were announced, and pointed to the interest rate hikes and hiring too aggressively during the pandemic. Chris Nielsen, Redfin’s chief financial officer, also spoke during the earnings call, saying the second quarter was a volatile one with quicker-than-expected declines and that the company was being responsive to the changing environment and taking actions to manage toward profitability, including reducing the number of homes the company purchases, laying people off, and limiting backfills.