Redfin (RDFN 19.53, -3.60, -15.58%) is down over 15% as
cautious guidance for the third quarter masks better than expected second
The real estate broker with a large online presence reported above-consensus second quarter earnings of $0.04/share on a 35.9% year/year spike in revenue to $142.6 mln, which was also ahead of expectations.
However, the company issued cautious guidance for the third quarter, expecting below-consensus revenue between $137.1 mln and $141.3 mln. Redfin's CEO Glenn Kelman said that the company saw an unexpected slowdown in bookings over the last three weeks, leading to slower traffic in a real estate market that is weakening. Keep in mind that housing affordability has dropped to levels not seen in a decade, worsened by rising mortgage rates.
Returning to second quarter results, the company saw its market share of U.S. existing home sales by value increase by 0.19 percentage points to 0.83%. Transactions from repeat customers and personally referred customers increased 35.0% on a sequential basis. Gross margin worsened to 32% from 35% one year ago. Real estate services gross margin declined to 35% from 37%.
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