Redfin’s growing profits spur stock growth

by Kelly McCabe

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In the second quarter of 2017, Redfin Corporation’s revenue increased 35 percent from the same time last year to $104.9 million, the company recently announced.

The remarkable profit growth is causing Redfin stock to continue rising less than two months after going public on July 28. On Sept. 13, the company’s stock (RDFN) reached $25.77, up 1.42 percent from the day before. Redfin had a stock market debut price of $21.72 upon closing on its first day.

“Redfin’s market-share growth accelerated in the second quarter, in part because so many people have been visiting our website,” Redfin CEO Glenn Kelman said. “Redfin.com visitors have grown at a higher rate over each of the past three quarters than in any quarter in the last three years. And more of those visitors are connecting with a Redfin agent because our technology lets those customers move faster to tour and buy homes. Technology also benefits our home-sellers, by promoting their listing to a huge online audience, and by driving long-term efficiency gains that help us charge less and still deliver better results.”

The earnings report showed that visitors to Redfin’s website and mobile application jumped by 43 percent to 24 million average monthly visitors in the second quarter of 2016.

Looking ahead, Redfin projections show revenue growing to between $108.5 million and $110.5 million and a net income of $10 million to $10.8 million.