Real estate remains part of American infrastructure and with this, you can be sure that this market will improve over time. Despite the recent slowdown in the housing market, Redfin is expected to do just fine. This is considering the 70% surge in the third quarter sales to $239 million. This was driven by a 23% growth in services and a whopping 600% increase in the product segment. The company’s cost of revenue grew 88% due to its developmental efforts, but reported an 18% increase in operating expenses. And despite having had some very steep losses earlier in the year, it reported a net profit of $6.78 million during its third quarter. The best part about buying Redfin is that it still holds the largest share of the U.S. real estate market.
Redfin(NASDAQ: RDFN) shares rose by 5% after the real estate company reported a third-quarter profit and sales that stood way above Wall Street expectations. The company reported earnings of 7 cents per share in the quarter compared to what they made in the third quarter of the previous year. The revenue rose 70% to $239 million from where it stood at $140 million.
Analysts have forecasted GAAP earnings of 4 cents per share of $230 million sales. The company has also reported high expectations in the fourth quarter revenue, with a projection of between $211 million and $220 million. The company expects its revenue to shoot 70% to 77% higher in the fourth quarter.
Redfin Corp. is a residential real estate brokerage, offering buying and selling of homes services. This Seattle-based technology company is changing how Americans buy and sell homes with tech-enabled customer service. The company offers an online estate market place providing services to customers such as assisting in buying and selling of their residential property. Redfin Corp. also offers titles, settlement services, originate mortgages. It operates through three different segments – Real estate, properties and other.