Name: This Company Calls Itself the 'Amazon of Real Estate'
Uploaded: 2019-12-11
Duration: 3 min 48 s
Description: Redfin stock is now trading on Nasdaq.

 Glenn, this is a special day for Redfin. Yeah. Why is going public so important? Well, if you want to build a great, enduring company, you got to go into the public markets. It gives you currency to buy other companies. It gives the employees liquidity. It's the best place to raise capital right now. So we knew we wanted to be a big independent. Thing is this is just where those companies live. Well, you sure raised capital today. You raised almost $180 million. What are you going to do with that money for Redfin? We're trying to make money, so I don't think we're going to spend it all in one place. Lots of investors on the road were asking us to invest more in growth, but the company's already doing just fine. So I think we're going to save that for a rainy day in case there's a strategic acquisition we want to make, in case there's something we want to do that really requires a big check. So Redfin has-- revenues have been growing, but not so much with profits. When is the company going to be profitable? I think it's a year or two out, but we've been steadily increasing our revenues and minimizing our costs, so we're on a good track. Glenn, a few days before this IPO, the co-founder and former CEO of Redfin-- Oh, yes, yes. --said that he might file a lawsuit over a patent application. Why is this happening now? Well, I think, when you go public, lots of people realize that the company has plenty of money. So in these events, you're going to have lawsuits. It's not that unusual. David's a good person. He's just trying to figure out what's fair. So what are you going to tell investors about this issue and the possibility of a lawsuit? Well, we've already told them. We filed an amendment to the S-1 just disclosing that everybody who bought the stock last night already knew about it. We wanted to be completely above board, and we have been. So Redfin describes itself as a technology-powered real estate brokerage. How are you using technology to change the way that people are buying and selling homes? We should start with the website. We invented map-based search. That means people come to our website, they see listings first, they get the most accurate estimate on the value of their home. But then, when they start working with one of our agents, that's where the real magic happens. You can schedule a tour at the click of a button, getting it instantly confirmed-- just like ordering a Lyft or an Uber-- and get into a house. We can generate the offer using our technology. We can prepare pricing guidance using our technology. Everything that we do to automate the process just makes it so much less expensive. We can deliver better service and save people thousands of dollars in fees. That's why the world's beating a path to our door. You probably hear this all the time, that most people know the name Zillow, but they're not as familiar with Redfin. Yeah. What are you going to do to change that? People knew about IBM before they knew about Apple. Sometimes it takes a little longer for better to win, so we've been patient about this. We don't need to take the world by storm. We just need to make our customers happy. And when we do that, the word spreads. It's so coincidental that both Zillow and Redfin are from Seattle. You're just within a few blocks of each other. You're both in this real estate online business. What would you say is the key difference, though? The key difference is that we're a real estate broker. So Zillow is a great website for real estate search, but then they connect you with a traditional agent and a traditional fee. And instead, we're like the Amazon of real estate. Instead of being the Google of real estate, we're the Amazon, which means that not only do we have a site to search for listings, but we deliver the whole freaking service. Two years, three years from now, what will Redfin look like? Well, in two years, we're not only going to be doing the real estate transaction-- we're also going to be loaning the money. We're going to vertically integrate the whole thing so that we can have a digital closing. It's going to be amazing. 

This Company Calls Itself the 'Amazon of Real Estate'

Real_Estate

blend. This is a special day for Redfin. Uh, why is going public importance? Oh, well, if you want to build a great enduring company, you've got to go into the public markets. It gives you currency to buy other companies. That gives the employees liquidity. It's the best place to raise capital right now. So we knew we wanted to be a big independent. Thing is, this is just where those companies will You sure raise capital today? Uh, almost $180 million. What do you do with that money for Red Now we're trying to make money, so I don't think we're gonna spend it all in one place. Lots of investors on the road. We're asking us to invest more in growth, but the company is already doing just fine. So I think we're gonna save that for a rainy day in case there's a strategic acquisition we want to make. In case there's something we want to do that really requires a big check. So has revenues have been growing, but not so much with profits. When is the company could be profitable? I think it's a year to out, but we've been steadily increasing our revenues and minimizing our costs. So we're on a good track blend. A few days before this, I, p o the co founder and former CEO read said that he might file a lawsuit over a patent application. Why is this happening now? Well, I think when you go public, lots of people realize that the company has plenty of money. So in these events, you're gonna have lawsuits. It's not that unusual, David. Good person. He's just trying to figure out what's fair. So, what are you gonna tell investors about this issue and the possibility of a lawsuit? Ah, well, we've already told him we found an amendment to the S one just disclosing that everybody who bought the stock last night already knew about it. We wanted to be completely above board, and we have been so Rex in describes itself as a technology powered real estate. How are you using technology to change the way that people are buying and selling homes? We should start with the website. We invented map. They search. That means people come to our website. They see listings. First, they get the most accurate estimate on the value of their home. But then when they start working with one of our agents, that's where the real magic happens. You can schedule a tour at the click of a button, getting it instantly confirmed, just like ordering a lift or an uber and get into a house. We can generate the offer. Using our technology, we can prepare price and guidance using our technology. Everything that we do to automate the process just makes it so much less expensive. We can deliver better service and save people thousands of dollars in fees. That's why the world beating a path to our door. You probably hear this all the time that most people know the name vill. Oh, but they're not a familiar with red. What you gonna do to change that? People knew about IBM before they knew about Apple. Sometimes it takes a little longer for better toe win. So we've been patient about this. We don't need to take the world by storm. We just need to make our customers happy. And when we do that, the word spreads. It's so coincidental. Zab. Ooh, Zillow and Redfin are from Seattle. You're just within a few blocks of each other. You're both in this real estate online business. What would you say is the key difference? The key difference is that where a real estate broker. So Zillow is a great website for real estate search. But then they connect you with the traditional agent and a traditional fee. And instead we're like the Amazon and real estate instead of being the Google, a real estate where the Amazon which means that not only do we have a sight to search for listing, but we deliver the whole freaking service to two years two years from now, what will reckon, look like? Well, in two years, we're not only gonna be doing the real estate transaction, we're also gonna be loaning the money. We're gonna vertically integrate the whole thing so that we can have a digital closing. It's gonna be amazing.