Redfin CEO promises to ‘drink our own urine’ if mortgage rates don’t fall | TechCrunch

🌈 Abstract

The article discusses the candid and humorous comments made by Redfin CEO Glenn Kelman during the company's second-quarter earnings call, where he addressed the challenges facing the real estate market and Redfin's plans to adapt.

🙋 Q&A

[01] Redfin CEO's Remarks

1. What were the key points made by Redfin CEO Glenn Kelman during the earnings call?

• Kelman compared the current real estate market to "The Twilight Zone," noting that mortgage rates have dropped significantly but the market response has been muted.
• He stated that Redfin's "Plan B" is to "drink our own urine or our competitors' blood, stay in the foxhole" if mortgage rates don't fall.
• Kelman expressed uncertainty about the market's future, saying Redfin is "ready to take share if the market grows, we're ready to take share if it doesn't, but we're not going to ease off."
• He later expressed regret over his choice of words, saying "We'll drink our urine before the blood. Actually, I wish I just hadn't said that. I'm a lover, not a fighter."

2. What was the context of Kelman's remarks?

• The comments were made during Redfin's second-quarter earnings call, where executives typically stick to "blandly optimistic platitudes."
• Analysts were focused on the prospects for the larger housing market, and Kelman's remarks were in response to questions about Redfin's "Plan B" if mortgage rates don't fall.

3. How did Kelman's remarks differ from the typical earnings call?

• Kelman's comments were much more candid and humorous than the usual "blandly optimistic platitudes" heard on earnings calls.
• He made references to drinking bodily fluids and being "a lover, not a fighter," which are highly unusual for an executive earnings call.

[02] Redfin's Outlook

1. What is Redfin's outlook on the housing market?

• Kelman expressed uncertainty about the housing market, saying Redfin is "ready to take share if the market grows, we're ready to take share if it doesn't, but we're not going to ease off."
• He is not counting on the market improving, despite hoping it will.

2. How is Redfin preparing for different market scenarios?

• Redfin is prepared to "take share" whether the market grows or not, indicating the company is positioning itself to adapt to different market conditions.
• Kelman's "Plan B" comments suggest Redfin is willing to take unconventional measures to weather a downturn in the housing market.

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