Online real-estate brokerage Redfin has revamped its website, promising "freakish depth" of data about neighborhood home sales. If only it provided such rich, clear data about its own finances. The company is notable for kicking back two-thirds of the commission it earns back to buyers, keeping a third to fund its operations According to an article on finance blog Seeking Alpha, CEO Glenn Kelman reels off a series of seemingly impressive stats:

• 1,500 transactions
• $12 million reimbursed to customers
• Average refund is $10,000
• 2007 revenues of $5 million

Hold on a second: If the average refund is $10,000, and the company's done 1,500 transactions, wouldn't that add up to $15 million, not $12 million, reimbursed to customers? And shouldn't the company's total revenues include the full commission, with the rebates listed below the top line as an operating expense? Even if the company nets out rebates before totaling its revenues, something doesn't add up here. Which is what I've always thought about Redfin's business model. Such a glossy website — "freakishly deep" — catering to a mere 1,500 customers?

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