Redfin, the real estate brokerage site, saw its shares tumble about 7% in after-hours trading, shortly after sharing its earnings.
The company posted about $109.5 million for the third quarter. Analysts surveyed by Yahoo Finance had been expecting about $110.6 million. Adjusted earnings per share were 12 cents, missing the 13 cents predicted.
The newly public business may have disappointed Wall Street, but it’s still growing. Revenue was up 35% from last year and net income nearly doubled from $5.7 million to $10.6 million.
“Redfin’s brokerage market-share gains accelerated again in the third quarter, with strong traffic growth and steadily increasing sales in all of our new businesses,” said Redfin CEO Glenn Kelman, in a statement.
In an interview with TechCrunch following its July IPO, Kleman referred to the business as an “Amazon of real estate.” Both companies are based in Seattle, and like Amazon is for shopping, he wants Redfin to be a one-stop shop for all things real estate.
Redfin makes money by taking a cut of the home sales generated by its site. It also recently introduced a mortgage origination business.
Greylock, Madrona Ventures and Tiger Global were the largest shareholders at the time of the IPO.
Redfin shares closed Thursday at $23.20, still healthily above its $15 IPO price.
Featured Image: Nasdaq
Published at Thu, 09 Nov 2017 21:32:07 +0000