Redfin’s Losses Pile Up to Keep Abreast with Demand By Investing.com

By Christiana Sciaudone

Investing.com — Redfin (NASDAQ:RDFN) plunged 14% despite the high demand for homes in pandemic times.

A loss per share of 37 cents was worse than the expected 33-cent loss, according to data compiled by Investing.com. Sales beat forecasts. 

“After scrambling in the second half of 2020 to hire enough agents and lenders to handle a pandemic-driven surge in demand, Redfin is just about hitting on all cylinders,” said Redfin Chief Executive Officer Glenn Kelman. “From the fourth quarter of 2020 to the first quarter of 2021, our year-over-year market-share gains more than doubled, and our year-over-year gross-margin gains also accelerated. We tripled the rate at which we’re scheduling home tours instantly and automatically, giving our customers a competitive advantage when homes are selling faster than ever.”

For the second quarter of 2021, revenue should increase between 109% and 114% compared to the second quarter of 2020, with a net loss between $38 million and $32 million, compared to total net loss of $7 million in the second quarter of 2020. 

The news prompted firms from Wedbush to Stifel to lower price targets on the stock.