Redfin’s Q3 income spikes 70% because it goals to ‘redefine actual property within the customers’ favor’

(GeekWire Photograph / Nat Levy)

Shares of Redfin had been up greater than 6 p.c in after-hours buying and selling after the actual property firm posted its third quarter earnings report. Income grew 70 p.c year-over-year to $239 million whereas earnings per share was $0.07, up from $0.04.

Analysts anticipated income of $230 million and EPS of $0.04.

Redfin’s sturdy outcomes had been powered by the Properties division, which incorporates the corporate’s RedfinNow initiative for purchasing properties instantly from customers, spiffing them up and promoting them. The Properties phase introduced in $80.9 million in income, up from $11.four million final 12 months, with a $745,000 loss. Redfin expanded RedfinNow to Austin, Houston, and San Antonio this quarter.

“Redfin’s third quarter was sturdy throughout the board, with accelerating revenues and year-over-year gross-margin beneficial properties in each considered one of our companies,” Redfin CEO Glenn Kelman stated in a press release. “We’re investing extra in higher service, but in addition in disruptive applied sciences that permit folks tour and purchase properties with out an agent. We’ve expanded instantaneous affords for owners from six to 10 markets, and at the moment are exhibiting homebuyers the commissions {that a} vendor is providing their agent. These are large strides towards our long-term aim of redefining actual property within the customers’ favor.”

Redfin quietly launched a program in April known as Redfin Direct that lets homebuyers with out an agent make affords on properties instantly by its web site, bringing again an initiative the corporate first tried greater than a decade in the past. The so-called “Purchase-It Button” is a part of what Kelman has known as Redfin’s second act of adjusting how properties are purchased and bought. Redfin stated it obtained 68 Direct affords within the third quarter, leading to 18 closings. It additionally expanded “Direct Entry for RedfinNow” which lets patrons tour properties on their telephone.

The corporate’s inventory is up barely this 12 months, buying and selling at $18.54 when the market closed Wednesday.

Redfin finds itself within the midst of an extremely lively actual property tech market. Crosstown rival Zillow has redefined its complete enterprise round shopping for and promoting properties instantly. Others comparable to Compass, which simply opened a new Seattle engineering office, are additionally competing.

Editor’s observe: This put up was up to date to replicate the $745 million loss within the Properties phase. 

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