BrokerageTechnology

9 risks that could derail Redfin after it goes public

Competitors' technology, rising ad rates and MLS alternative all cited as challenges by the high-tech brokerage
  • It's far from clear whether the company can develop into anything more than a niche player.

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

For more than a decade, Redfin has fought tooth and nail for a small fraction of market share -- without turning a profit. Some analysts think the high-tech brokerage can quickly grow into a multibillion dollar company after its initial public offering (IPO), scheduled for July 28. But it's far from clear whether the company can develop into anything more than a niche player. In its recent IPO filing, Redfin detailed a laundry list of challenges that could derail the company. Some of the risks cited, such as the emergence of an alternative to the multiple listing service (MLS), apply to many brokerages, while others may be unique to Redfin. Here are nine that stand out. Redfin's market share in established markets. 1. Progress has been gradual, and losses have accumulated Redfin more than doubled revenue to $267.2 million from 2014 to 2016. But that growth came at a net loss of $77.4 million. The company's $167 million in venture funding, massive technology investmen...