Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ZG | |
Entity Registrant Name | ZILLOW GROUP, INC. | |
Entity Central Index Key | 0001617640 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 58,318,212 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 6,217,447 | |
Class C Capital Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 140,633,463 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 736,507 | $ 651,058 |
Short-term investments | 780,963 | 903,867 |
Accounts receivable, net of allowance for doubtful accounts of $4,942 and $4,838 at March 31, 2019 and December 31, 2018, respectively | 70,605 | 66,083 |
Inventory | 325,154 | 162,829 |
Mortgage loans held for sale | 29,469 | 35,409 |
Prepaid expenses and other current assets | 69,292 | 61,067 |
Restricted cash | 27,595 | 12,385 |
Total current assets | 2,039,585 | 1,892,698 |
Contract cost assets | 46,176 | 45,819 |
Property and equipment, net | 142,146 | 135,172 |
Right of use assets | 102,056 | |
Goodwill | 1,984,907 | 1,984,907 |
Intangible assets, net | 207,933 | 215,904 |
Other assets | 16,763 | 16,616 |
Total assets | 4,539,566 | 4,291,116 |
Current liabilities: | ||
Accounts payable | 7,708 | 7,471 |
Accrued expenses and other current liabilities | 63,212 | 63,101 |
Accrued compensation and benefits | 30,300 | 31,388 |
Revolving credit facilities | 246,028 | 116,700 |
Warehouse lines of credit | 27,991 | 33,018 |
Deferred revenue | 36,105 | 34,080 |
Deferred rent, current portion | 0 | 1,740 |
Lease liabilities, current portion | 19,561 | |
Total current liabilities | 430,905 | 287,498 |
Deferred rent, net of current portion | 0 | 19,945 |
Lease liabilities, net of current portion | 102,405 | |
Long-term debt | 707,860 | 699,020 |
Deferred tax liabilities and other long-term liabilities | 15,264 | 17,474 |
Total liabilities | 1,256,434 | 1,023,937 |
Commitments and contingencies (Note 17) | ||
Shareholders’ equity: | ||
Preferred stock, $0.0001 par value; 30,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Additional paid-in capital | 4,022,218 | 3,939,842 |
Accumulated other comprehensive income (loss) | 197 | (905) |
Accumulated deficit | (739,304) | (671,779) |
Total shareholders’ equity | 3,283,132 | 3,267,179 |
Total liabilities and shareholders’ equity | 4,539,566 | 4,291,116 |
Class A Common Stock | ||
Shareholders’ equity: | ||
Common stock/capital stock | 6 | 6 |
Class B Common Stock | ||
Shareholders’ equity: | ||
Common stock/capital stock | 1 | 1 |
Class C Capital Stock | ||
Shareholders’ equity: | ||
Common stock/capital stock | $ 14 | $ 14 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 4,942 | $ 4,838 |
Preferred stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized (in shares) | 30,000,000 | 30,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 1,245,000,000 | 1,245,000,000 |
Common stock, issued (in shares) | 58,315,359 | 58,051,448 |
Common stock, outstanding (in shares) | 58,315,359 | 58,051,448 |
Class B Common Stock | ||
Common stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, issued (in shares) | 6,217,447 | 6,217,447 |
Common stock, outstanding (in shares) | 6,217,447 | 6,217,447 |
Class C Capital Stock | ||
Common stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 140,597,526 | 139,635,370 |
Common stock, outstanding (in shares) | 140,597,526 | 139,635,370 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Revenue: | |||
Revenue | $ 454,104 | $ 299,879 | |
Cost of revenue (exclusive of amortization) | |||
Cost of revenue | 151,348 | 23,919 | |
Sales and marketing | 161,587 | 137,291 | |
Technology and development | 107,770 | 93,933 | |
General and administrative | 95,774 | 56,073 | |
Acquisition-related costs | 352 | 0 | |
Integration costs | 0 | 27 | |
Total costs and expenses | 516,831 | 311,243 | |
Loss from operations | (62,727) | (11,364) | |
Other income | 9,168 | 2,446 | |
Interest expense | (16,466) | (7,073) | |
Loss before income taxes | (70,025) | (15,991) | |
Income tax benefit (expense) | 2,500 | (2,600) | |
Net loss | $ (67,525) | $ (18,591) | |
Net loss per share - basic and diluted (usd per share) | $ (0.33) | $ (0.10) | |
Weighted-average shares outstanding - basic and diluted (in shares) | 204,514 | 191,464 | |
Amortization of website development costs and intangible assets included in technology and development | $ 11,000 | $ 13,000 | |
Technology and Development | |||
Cost of revenue (exclusive of amortization) | |||
Amortization of website development costs and intangible assets included in technology and development | 14,400 | 22,549 | |
IMT | |||
Revenue: | |||
Revenue | 298,272 | 280,856 | |
Cost of revenue (exclusive of amortization) | |||
Cost of revenue | [1] | 24,251 | 22,594 |
Sales and marketing | 126,654 | 128,747 | |
Technology and development | 87,969 | 85,917 | |
General and administrative | 70,850 | 50,187 | |
Integration costs | 0 | 27 | |
Total costs and expenses | 309,724 | 287,472 | |
Loss from operations | (11,452) | ||
Other income | 0 | ||
Interest expense | 0 | ||
Loss before income taxes | (11,452) | (6,616) | |
Homes | |||
Revenue: | |||
Revenue | 128,472 | 0 | |
Cost of revenue (exclusive of amortization) | |||
Cost of revenue | [1] | 122,419 | 86 |
Sales and marketing | 20,862 | 290 | |
Technology and development | 12,281 | 2,236 | |
General and administrative | 14,357 | 1,778 | |
Integration costs | 0 | 0 | |
Total costs and expenses | 169,919 | 4,390 | |
Loss from operations | (41,447) | ||
Other income | 0 | ||
Interest expense | (3,758) | ||
Loss before income taxes | (45,205) | (4,390) | |
Mortgages | |||
Revenue: | |||
Revenue | 27,360 | 19,023 | |
Cost of revenue (exclusive of amortization) | |||
Cost of revenue | [1] | 4,678 | 1,239 |
Sales and marketing | 14,071 | 8,254 | |
Technology and development | 7,520 | 5,780 | |
General and administrative | 10,567 | 4,108 | |
Integration costs | 352 | 0 | |
Total costs and expenses | 37,188 | 19,381 | |
Loss from operations | (9,828) | ||
Other income | 313 | ||
Interest expense | (101) | ||
Loss before income taxes | $ (9,616) | $ (358) | |
[1] | Amortization of website development costs and intangible assets included in technology and development of $14,400 and $22,549 for the three months ended March 31, 2019 and 2018, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (67,525) | $ (18,591) |
Other comprehensive income (loss): | ||
Unrealized gains (losses) on investments | 1,144 | (332) |
Currency translation adjustments | (42) | (22) |
Total other comprehensive income (loss) | 1,102 | (354) |
Comprehensive loss | $ (66,423) | $ (18,945) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Class A Common Stock, Class B Common Stock and Class C Capital Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning Balance at Dec. 31, 2017 | $ 2,660,823 | $ 20 | $ 3,254,146 | $ (592,243) | $ (1,100) |
Beginning Balance (in shares) at Dec. 31, 2017 | 190,115,148 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common and capital stock upon exercise of stock options | 52,906 | 52,906 | |||
Issuance of common and capital stock upon exercise of stock options (in shares) | 2,414,214 | ||||
Vesting of restricted stock units | 0 | ||||
Vesting of restricted stock units (in shares) | 394,844 | ||||
Shares and value of restricted stock units withheld for tax liability | (28) | (28) | |||
Shares and value of restricted stock units withheld for tax liability (in shares) | (607) | ||||
Share-based compensation expense | 32,863 | 32,863 | |||
Portion of conversion recorded in additional paid-in-capital in connection with partial conversion of convertible notes maturing in 2020 | 500 | 500 | |||
Portion of conversion recorded in additional paid-in-capital in connection with partial conversion of convertible notes maturing in 2020 (in shares) | 20,727 | ||||
Net loss | (18,591) | (18,591) | |||
Other comprehensive income (loss) | (354) | (354) | |||
Ending Balance at Mar. 31, 2018 | 2,768,441 | $ 20 | 3,340,387 | (570,512) | (1,454) |
Ending Balance (in shares) at Mar. 31, 2018 | 192,944,326 | ||||
Beginning Balance at Dec. 31, 2018 | 3,267,179 | $ 21 | 3,939,842 | (671,779) | (905) |
Beginning Balance (in shares) at Dec. 31, 2018 | 203,904,265 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common and capital stock upon exercise of stock options | $ 13,564 | 13,564 | |||
Issuance of common and capital stock upon exercise of stock options (in shares) | 729,788 | 729,788 | |||
Vesting of restricted stock units | $ 0 | ||||
Vesting of restricted stock units (in shares) | 496,347 | ||||
Shares and value of restricted stock units withheld for tax liability | (2) | (2) | |||
Shares and value of restricted stock units withheld for tax liability (in shares) | (68) | ||||
Share-based compensation expense | 68,814 | 68,814 | |||
Net loss | (67,525) | ||||
Other comprehensive income (loss) | 1,102 | ||||
Ending Balance at Mar. 31, 2019 | $ 3,283,132 | $ 21 | $ 4,022,218 | $ (739,304) | $ 197 |
Ending Balance (in shares) at Mar. 31, 2019 | 205,130,332 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net loss | $ (67,525) | $ (18,591) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 20,525 | 26,906 |
Share-based compensation expense | 66,124 | 30,741 |
Amortization of right of use assets | 4,440 | |
Amortization of contract cost assets | 8,746 | 9,296 |
Amortization of discount and issuance costs on convertible notes maturing in 2023 and 2021 | 8,840 | 4,708 |
Deferred income taxes | (2,500) | 2,600 |
Loss on disposal of property and equipment | 1,704 | 1,803 |
Bad debt expense | 128 | (267) |
Deferred rent | 0 | (3,090) |
Accretion of bond discount | (1,733) | (137) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,650) | 105 |
Inventory | (162,325) | 0 |
Mortgage loans held for sale | 5,940 | 0 |
Prepaid expenses and other assets | (8,537) | (19,923) |
Lease liabilities | (7,010) | |
Contract cost assets | (9,103) | (11,440) |
Accounts payable | (133) | 1,672 |
Accrued expenses and other current liabilities | 328 | (6,747) |
Accrued compensation and benefits | (1,088) | 3,637 |
Deferred revenue | 2,025 | 3,379 |
Other long-term liabilities | 290 | 0 |
Net cash provided by (used in) operating activities | (145,514) | 24,652 |
Investing activities | ||
Proceeds from maturities of investments | 302,187 | 61,386 |
Purchases of investments | (176,412) | (76,729) |
Purchases of property and equipment | (14,202) | (15,791) |
Purchases of intangible assets | (3,269) | (1,098) |
Net cash provided by (used in) investing activities | 108,304 | (32,232) |
Financing activities | ||
Proceeds from borrowing on revolving credit facilities | 129,328 | 0 |
Net repayments on warehouse lines of credit | (5,025) | 0 |
Proceeds from exercise of stock options | 13,564 | 52,906 |
Value of equity awards withheld for tax liability | 2 | (28) |
Net cash provided by financing activities | 137,869 | 52,878 |
Net increase in cash, cash equivalents and restricted cash during period | 100,659 | 45,298 |
Cash, cash equivalents and restricted cash at beginning of period | 663,443 | 352,095 |
Cash, cash equivalents and restricted cash at end of period | 764,102 | 397,393 |
Supplemental disclosures of cash flow information | ||
Cash paid for interest | 4,956 | 0 |
Noncash transactions: | ||
Capitalized share-based compensation | 2,690 | 2,120 |
Write-off of fully depreciated property and equipment | 6,269 | 7,379 |
Write-off of fully amortized intangible assets | $ 3,200 | $ 10,687 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization and Description of Business | Organization and Description of Business Zillow Group, Inc. operates the largest portfolio of real estate and home-related brands on mobile and the web which focus on all stages of the home lifecycle: renting, buying, selling and financing. Zillow Group is committed to empowering consumers with unparalleled data, inspiration and knowledge around homes and connecting them with great real estate professionals. The Zillow Group portfolio of consumer brands includes Zillow, Trulia, Zillow Home Loans, StreetEasy, HotPads, Naked Apartments, RealEstate.com and Out East. In addition, Zillow Group provides a comprehensive suite of marketing software and technology solutions to help real estate professionals maximize business opportunities and connect with millions of consumers. Zillow Offers provides homeowners in certain metropolitan areas with the opportunity to receive offers to purchase their home from Zillow. When Zillow buys a home, it makes certain repairs and lists the home for resale on the open market. Zillow also provides consumers with the opportunity to receive mortgage financing through Zillow Home Loans, a licensed mortgage lender. Zillow Group operates a number of business brands for real estate, rental and mortgage professionals, including Mortech, dotloop, Bridge Interactive and New Home Feed. Zillow, Inc. was incorporated as a Washington corporation in December 2004, and we launched the initial version of our website, Zillow.com, in February 2006. Zillow Group, Inc. was incorporated as a Washington corporation in July 2014 in connection with our acquisition of Trulia, Inc. (“Trulia”). Upon the closing of the Trulia acquisition in February 2015, each of Zillow, Inc. and Trulia became wholly owned subsidiaries of Zillow Group. Certain Significant Risks and Uncertainties |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements include Zillow Group, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes included in Zillow Group, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018 , which was filed with the SEC on February 21, 2019. The condensed consolidated balance sheet as of December 31, 2018 , included herein, was derived from the audited financial statements of Zillow Group, Inc. as of that date. The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position as of March 31, 2019 , our results of operations, comprehensive loss and cash flows for the three month periods ended March 31, 2019 and 2018 . The results of the three month period ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 or for any interim period or for any other future year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to the net realizable value of inventory, amortization period and recoverability of contract cost assets, website and software development costs, recoverability of long-lived assets and intangible assets with definite lives, share-based compensation, income taxes, business combinations, and the recoverability of goodwill and indefinite-lived intangible assets, among others. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, our financial statements will be affected. Recently Adopted Accounting Standards In February 2018, the Financial Accounting Standards Board (“FASB”) issued guidance on income tax accounting related to the Tax Cuts and Jobs Act (the “Tax Act”). This guidance permits a reclassification from accumulated other comprehensive income (loss) to accumulated deficit for the adjustment of deferred taxes due to the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate under the Tax Act. It also requires certain disclosures regarding these reclassifications. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. This guidance must be applied either on a prospective basis in the period of adoption or retrospectively to each period in which the effect of the change in the corporate income tax rate is recognized. We adopted this guidance on January 1, 2019. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows. In March 2017, the FASB issued guidance related to the premium amortization on purchased callable debt securities. This guidance shortens the amortization period for certain callable debt securities purchased at a premium by requiring that the premium be amortized to the earliest call date. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. This guidance must be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We adopted this guidance on January 1, 2019. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows. In February 2016, the FASB issued guidance on leases. This guidance requires the recognition of a right of use asset and lease liability on the balance sheet for all leases. This guidance also requires more detailed disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018. In July 2018, the FASB issued certain targeted improvements to the accounting and disclosure requirements for leases, including an additional optional transition method that allows entities to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating prior periods. When adopting the lease guidance, an entity may elect a practical expedient package, under which it need not reassess (a) whether any expired or existing contracts are or contain leases; (b) the lease classification for any expired or existing leases; and (c) initial direct costs for any existing leases. These three practical expedients must be elected as a package and must be consistently applied to all existing leases at the date of adoption. We adopted the new guidance on leases on January 1, 2019 using the optional transition method and elected to adopt the practical expedient package. Under this approach, we did not restate the prior financial statements presented. Based on our lease portfolio as of December 31, 2018, we recorded on our consolidated balance sheet right of use assets of $106.5 million as well as operating lease liabilities of $129.0 million , and we removed the existing deferred rent balance of $22.5 million . The adoption of the standard did not have a material impact to our condensed consolidated statements of operations. Recently Issued Accounting Standards Not Yet Adopted In August 2018, the FASB issued guidance related to a customer’s accounting for implementation costs incurred in hosting arrangements. The guidance aligns the requirements for capitalizing implementation costs incurred in cloud computing arrangements with the requirements for capitalizing costs to develop or obtain internal-use software. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. This guidance may be applied either retrospectively or prospectively. We expect to adopt this guidance on January 1, 2020. We have not yet determined the impact the adoption of this guidance will have on our financial position, results of operations or cash flows. In August 2018, the FASB issued guidance related to disclosure requirements for fair value measurements. This guidance removes, modifies and adds disclosures related to fair value measurements. This guidance is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim and annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. We expect to adopt this guidance on January 1, 2020. We have not yet determined the impact the adoption of this guidance will have on our financial statement disclosures. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require. We applied the following methods and assumptions in estimating our fair value measurements: Cash equivalents — The fair value measurement of money market funds is based on quoted market prices in active markets. The fair value measurement of corporate notes and bonds, commercial paper, U.S. government agency securities and certificates of deposit is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Short-term investments — The fair value measurement of our short-term investments is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Restricted cash — Restricted cash consists of cash received from the resale of homes through Zillow Offers which is used to repay amounts borrowed on our revolving credit facilities (see Note 13 ) and amounts held in escrow related to funding home purchases in our mortgage origination business. The carrying value of restricted cash approximates fair value due to the short period of time amounts borrowed on the revolving credit facilities are outstanding. Mortgage loans held for sale —The fair value of mortgage loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics. Interest rate lock commitments —The fair value of interest rate lock commitments (“IRLCs”) is calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics. Expired commitments are excluded from the fair value measurement. We generally only issue IRLCs for products that meet specific purchaser guidelines. Since not all IRLCs will become closed loans, we adjust our fair value measurements for the estimated amount of IRLCs that will not close. Forward contracts —The fair value of mandatory loan sales commitments and derivative instruments such as forward sales of mortgage-backed securities that are utilized as hedging instruments are calculated by reference to quoted prices for similar assets. The following tables present the balances of assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in thousands): March 31, 2019 Total Level 1 Level 2 Cash equivalents: Money market funds $ 578,037 $ 578,037 $ — Commercial paper 9,940 — 9,940 Short-term investments: U.S. government agency securities 531,006 — 531,006 Corporate notes and bonds 115,682 — 115,682 Commercial paper 82,755 — 82,755 Municipal securities 33,331 — 33,331 Foreign government securities 14,965 — 14,965 Certificates of deposit 3,224 — 3,224 Mortgage origination-related: Mortgage loans held for sale 29,469 — 29,469 Interest rate lock commitments 1,257 — 1,257 Forward contracts - other current assets 19 — 19 Forward contracts - other current liabilities (226 ) — (226 ) Total $ 1,399,459 $ 578,037 $ 821,422 December 31, 2018 Total Level 1 Level 2 Cash equivalents: Money market funds $ 541,575 $ 541,575 $ — Commercial paper 3,999 — 3,999 Short-term investments: U.S. government agency securities 646,496 — 646,496 Corporate notes and bonds 112,933 — 112,933 Commercial paper 85,506 — 85,506 Municipal securities 39,306 — 39,306 Foreign government securities 14,915 — 14,915 Certificates of deposit 4,711 — 4,711 Mortgage origination-related: Mortgage loans held for sale 35,409 — 35,409 Interest rate lock commitments 847 — 847 Forward contracts - other current liabilities (125 ) — (125 ) Total $ 1,485,572 $ 541,575 $ 943,997 At March 31, 2019 , the notional amounts of the hedging instruments related to our mortgage loans held for sale were $41.6 million and $49.7 million for our interest rate lock commitments and forward contracts, respectively. At December 31, 2018 , the notional amounts of the hedging instruments related to our mortgage loans held for sale were $26.7 million and $28.8 million for our interest rate lock commitments and forward contracts, respectively. We do not have the right to offset our forward contract derivative positions. See Note 13 for the carrying amount and estimated fair value of the Company’s Convertible Senior Notes due in 2023, Convertible Senior Notes due in 2021 and Trulia’s Convertible Senior Notes due in 2020. We did no t have any material Level 3 assets or liabilities as of March 31, 2019 or December 31, 2018 |
Cash and Cash Equivalents, Shor
Cash and Cash Equivalents, Short-term Investments and Restricted Cash | 3 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents, Short-term Investments and Restricted Cash | Cash and Cash Equivalents, Short-term Investments and Restricted Cash The following tables present the amortized cost, gross unrealized gains and losses and estimated fair market value of our cash and cash equivalents, available-for-sale investments and restricted cash as of the dates presented (in thousands): March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Market Value Cash $ 148,530 $ — $ — $ 148,530 Cash equivalents: Money market funds 578,037 — — 578,037 Commercial paper 9,940 — — 9,940 Short-term investments: U.S. government agency securities 530,938 268 (200 ) 531,006 Corporate notes and bonds 115,648 65 (31 ) 115,682 Commercial paper 82,755 — — 82,755 Municipal securities 33,263 74 (6 ) 33,331 Foreign government securities 14,963 2 — 14,965 Certificates of deposit 3,224 — — 3,224 Restricted cash 27,595 — — 27,595 Total $ 1,544,893 $ 409 $ (237 ) $ 1,545,065 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Market Value Cash $ 105,484 $ — $ — $ 105,484 Cash equivalents: Money market funds 541,575 — — 541,575 Commercial paper 3,999 — — 3,999 Short-term investments: U.S. government agency securities 647,266 51 (821 ) 646,496 Corporate notes and bonds 113,109 1 (177 ) 112,933 Commercial paper 85,506 — — 85,506 Municipal securities 39,316 23 (33 ) 39,306 Foreign government securities 14,929 — (14 ) 14,915 Certificates of deposit 4,711 1 (1 ) 4,711 Restricted cash 12,385 — — 12,385 Total $ 1,568,280 $ 76 $ (1,046 ) $ 1,567,310 The following table presents available-for-sale investments by contractual maturity date as of March 31, 2019 (in thousands): Amortized Cost Estimated Fair Market Value Due in one year or less $ 723,241 $ 723,207 Due after one year through two years 57,550 57,756 Total $ 780,791 $ 780,963 |
Accounts Receivable, net
Accounts Receivable, net | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net The opening balance of accounts receivable, net was $66.1 million as of January 1, 2019. The following table presents the changes in the allowance for doubtful accounts (in thousands): Balance as of January 1, 2019 $ 4,838 Bad debt expense 128 Less: write-offs, net of recoveries and other adjustments (24 ) Balance as of March 31, 2019 $ 4,942 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The components of inventory, net of applicable lower of cost or net realizable value write-downs, were as follows (in thousands): March 31, December 31, Work-in-progress $ 76,283 $ 45,943 Finished goods 248,871 116,886 Inventory $ 325,154 $ 162,829 |
Contract Cost Assets
Contract Cost Assets | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract Cost Assets | Contract Cost Assets As of March 31, 2019 and December 31, 2018 , we had $46.2 million and $45.8 million , respectively, of contract cost assets. During the three months ended March 31, 2019 and 2018 , we recorded no impairment losses. During the three months ended March 31, 2019 and 2018 , we recorded $8.7 million and $9.3 million The following table presents the changes in deferred revenue for the periods presented (in thousands): Three Months Ended Balance as of January 1, 2019 $ 34,080 Deferral of revenue 242,852 Less: Revenue recognized (240,827 ) Balance as of March 31, 2019 $ 36,105 During the three months ended March 31, 2019 , we recognized as revenue a total of $30.7 million |
Property and Equipment, net
Property and Equipment, net | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net The following table presents the detail of property and equipment as of the dates presented (in thousands): March 31, December 31, Website development costs $ 149,558 $ 149,891 Computer equipment 22,675 22,477 Leasehold improvements 74,888 65,012 Construction-in-progress 26,027 29,037 Office equipment, furniture and fixtures 42,401 39,510 Property and equipment 315,549 305,927 Less: accumulated amortization and depreciation (173,403 ) (170,755 ) Property and equipment, net $ 142,146 $ 135,172 We recorded depreciation expense related to property and equipment (other than website development costs) of $6.0 million and $4.2 million , respectively, during the three months ended March 31, 2019 and 2018 . We capitalized $10.0 million and $8.6 million , respectively, in website development costs during the three months ended March 31, 2019 and 2018 . Amortization expense for website development costs included in technology and development expenses was $3.4 million and $9.5 million , respectively, during the three months ended March 31, 2019 and 2018 |
Equity Investment
Equity Investment | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investment | Equity Investment In October 2016, we purchased a 10% equity interest in a privately held variable interest entity within the real estate industry for $10.0 million . The entity is financed through its business operations. We are not the primary beneficiary of the entity, as we do not direct the activities that most significantly impact the entity’s economic performance. Therefore, we do not consolidate the entity. Our maximum exposure to loss is $10.0 million , the carrying amount of the investment as of March 31, 2019 . There has been no impairment or upward or downward adjustments to our equity investment as of March 31, 2019 |
Intangible Assets, net
Intangible Assets, net | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | Intangible Assets, net The following tables present the detail of intangible assets subject to amortization as of the dates presented (in thousands): March 31, 2019 Cost Accumulated Amortization Net Purchased content $ 42,224 $ (33,017 ) $ 9,207 Software 24,770 (15,339 ) 9,431 Customer relationships 103,600 (63,861 ) 39,739 Developed technology 109,080 (73,459 ) 35,621 Trade names and trademarks 4,400 (4,400 ) — Zillow Home Loans lender licenses 400 (67 ) 333 Intangibles-in-progress 5,602 — 5,602 Total $ 290,076 $ (190,143 ) $ 99,933 December 31, 2018 Cost Accumulated Amortization Net Purchased content $ 42,110 $ (30,477 ) $ 11,633 Software 24,296 (13,925 ) 10,371 Customer relationships 103,900 (60,733 ) 43,167 Developed technology 111,980 (72,788 ) 39,192 Trade names and trademarks 4,900 (4,683 ) 217 Zillow Home Loans lender licenses 400 (17 ) 383 Intangibles-in-progress 2,941 — 2,941 Total $ 290,527 $ (182,623 ) $ 107,904 Amortization expense recorded for intangible assets for the three months ended March 31, 2019 and 2018 was $11.0 million and $13.0 million , respectively. We have an indefinite-lived intangible asset that we recorded in connection with our February 2015 acquisition of Trulia for Trulia’s trade names and trademarks that is not subject to amortization. The carrying value of the Trulia trade names and trademarks intangible asset was $108.0 million as of March 31, 2019 and December 31, 2018 . |
Deferred Revenue
Deferred Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | Contract Cost Assets As of March 31, 2019 and December 31, 2018 , we had $46.2 million and $45.8 million , respectively, of contract cost assets. During the three months ended March 31, 2019 and 2018 , we recorded no impairment losses. During the three months ended March 31, 2019 and 2018 , we recorded $8.7 million and $9.3 million The following table presents the changes in deferred revenue for the periods presented (in thousands): Three Months Ended Balance as of January 1, 2019 $ 34,080 Deferral of revenue 242,852 Less: Revenue recognized (240,827 ) Balance as of March 31, 2019 $ 36,105 During the three months ended March 31, 2019 , we recognized as revenue a total of $30.7 million |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Our lease portfolio is primarily composed of operating leases for our office space. We have lease agreements that include lease components (e.g., fixed rent) and non-lease components (e.g., common area maintenance), which are accounted for as a single component, as we have elected the practical expedient to group lease and non-lease components. We also elected the practical expedient to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. Our leases have remaining lease terms ranging from less than one year to five years , some of which include options to extend the lease term for up to an additional ten years . For example, our largest leases, which include our corporate headquarters in Seattle, Washington and office space in San Francisco, California, include options to extend the existing leases for two periods of five years each. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. For those leases that existed as of January 1, 2019, we used our incremental borrowing rate based on information available at that date. We apply a portfolio approach for determining the incremental borrowing rate based on the applicable lease terms and the current economic environment, and we utilize the assistance of third-party specialists to assist us in determining our yield curve. The components of our operating lease expense are as follows for the three months ended March 31, 2019 (in thousands): Operating lease cost $ 6,523 Variable lease cost 4,781 Total lease cost $ 11,304 Cash paid for amounts included in the measurement of lease liabilities for the three months ended March 31, 2019 was $9.1 million . The weighted average remaining term for our leases as of March 31, 2019 was 5 years . The weighted average discount rate for our leases as of March 31, 2019 was 5.9% . Maturities of our operating lease liabilities by fiscal year are as follows as of March 31, 2019 (in thousands): Remainder of 2019 $ 19,196 2020 28,550 2021 28,090 2022 24,565 2023 22,388 All future years 19,009 Total lease payments 141,798 Less: Imputed interest (19,832 ) Present value of lease liabilities $ 121,966 As of March 31, 2019, we have additional office space operating leases that have not yet commenced with total lease payments of $112.9 million . Our expectation is that these operating leases will commence during fiscal year 2019 with lease terms of five to eleven years . The following table presents our future minimum payments for all operating leases as of December 31, 2018, including future minimum payments for operating leases that had not yet commenced as of December 31, 2018 totaling $112.9 million (in thousands): 2019 $ 29,085 2020 38,060 2021 40,099 2022 37,721 2023 36,458 All future years 85,462 Total future minimum lease payments $ 266,885 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Credit Facilities To provide capital for Zillow Offers, we utilize revolving credit facilities that are classified as current liabilities in our condensed consolidated balance sheets. The following table summarizes our revolving credit facilities as of the periods presented (in thousands, except interest rates): Effective Date Maximum Borrowing Capacity Outstanding Borrowings at March 31, 2019 Outstanding Borrowings at December 31, 2018 Weighted Average Interest Rate July 31, 2018 $ 500,000 $ 167,279 $ 116,700 6.00 % January 31, 2019 500,000 78,749 — 5.99 % Total $ 1,000,000 $ 246,028 $ 116,700 On January 31, 2019, certain wholly owned subsidiaries of Zillow Group entered into a revolving credit agreement with Citibank, N.A., as the directing lender, and certain other parties thereto. The credit agreement provides for a maximum borrowing capacity of $500.0 million (the “Maximum Amount”) with a current borrowing capacity of $79.0 million as of March 31, 2019 , which amount may be increased up to the Maximum Amount subject to the satisfaction of certain conditions, through a non-recourse credit facility secured by a pledge of the equity of certain Zillow Group subsidiaries that purchase and sell select residential properties through Zillow Offers. In certain circumstances Zillow Group may be obligated to fund some or all of the payment obligations under the credit agreement. The credit agreement has an initial term of two years and may be extended for up to one additional year subject to agreement by the directing lender. Zillow Group formed certain special purpose entities to effectuate the transactions contemplated by the January 31, 2019 revolving credit facility. Each special purpose entity is a wholly owned subsidiary of Zillow Group and a separate legal entity, and neither the assets nor credit of any such entity are available to satisfy the debts and other obligations of any affiliate or other entity. The July 31, 2018 revolving credit facility had an initial term of one year which may be extended for up to two additional years, subject to agreement by the directing lender, and has a current borrowing capacity of $177.3 million as of March 31, 2019. Zillow Group formed certain special purpose entities to effectuate the transactions contemplated by the July 31, 2018 revolving credit facility. Each special purpose entity is a wholly owned subsidiary of Zillow Group and a separate legal entity, and neither the assets nor credit of any such entity are available to satisfy the debts and other obligations of any affiliate or other entity. The stated interest rate on our revolving credit facilities is one-month LIBOR plus an applicable margin as defined in the respective credit agreements. Our revolving credit facilities include customary representations and warranties, covenants (including financial covenants applicable to Zillow Group), and provisions regarding events of default. As of March 31, 2019 , Zillow Group was in compliance with all financial covenants and no event of default had occurred. Our revolving credit facilities also require that we establish, maintain, and in certain circumstances fund, certain specified reserve accounts. These reserve accounts include, but are not limited to, interest reserves, insurance, tax reserves, renovation cost reserves and special reserves. Amounts funded to these reserve accounts and the collection accounts have been classified within our consolidated balance sheets as restricted cash. For additional details related to our revolving credit facilities, see Note 14 in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. Warehouse Lines of Credit To provide capital for Zillow Home Loans, we utilize warehouse lines of credit that are classified as current liabilities in our condensed consolidated balance sheets. The following table summarizes our warehouse lines of credit as of the periods presented (in thousands, except interest rates): Maturity Date Maximum Borrowing Capacity Outstanding Borrowings at March 31, 2019 Outstanding Borrowings at December 31, 2018 Weighted Average Interest Rate July 15, 2019 $ 50,000 $ 13,300 $ 14,125 5.00 % June 29, 2019 50,000 14,691 18,892 5.00 % Total $ 100,000 $ 27,991 $ 33,017 Borrowings on the lines of credit bear interest at the one-month LIBOR plus an applicable margin, as defined in the credit agreements governing the warehouse lines of credit. The lines of credit include customary representations and warranties, covenants and provisions regarding events of default. As of March 31, 2019, Zillow Group was in compliance with all financial covenants and no event of default had occurred. Convertible Senior Notes The following table summarizes our outstanding convertible senior notes as of the periods presented (in thousands, except interest rates): Maturity Date Aggregate Principal Amount Fair Value at March 31, 2019 Fair Value at December 31, 2018 Stated Interest Rate Effective Interest Rate July 1, 2023 $ 373,750 $ 341,850 $ 321,855 1.50 % 6.99 % December 1, 2021 460,000 470,911 446,200 2.00 % 7.44 % December 15, 2020 9,637 16,842 16,744 2.75 % N/A Total $ 843,387 $ 829,603 $ 784,799 The convertible notes are senior unsecured obligations and are classified as long-term debt in our condensed consolidated balance sheets. Interest on the convertible notes is paid semi-annually. As of March 31, 2019 and December 31, 2018 , respectively, the total unamortized debt discount and debt issuance costs for our outstanding senior convertible notes were $135.5 million and $144.4 million . The convertible senior notes maturing in 2023 and 2021 are not redeemable or convertible as of March 31, 2019. The convertible senior notes maturing in 2020 are convertible, at the option of the holder, and redeemable, at our option, as of March 31, 2019. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are subject to federal and state income taxes in the United States and in Canada. As of March 31, 2019 and December 31, 2018 , we have provided a valuation allowance against our net deferred tax assets that we believe, based on the weight of available evidence, are not more likely than not to be realized. Therefore, no material current tax liability or expense has been recorded in the condensed consolidated financial statements. We have accumulated federal tax losses of approximately $1,081.7 million as of December 31, 2018 , which are available to reduce future taxable income. We have accumulated state tax losses of approximately $32.5 million (tax effected) as of December 31, 2018 |
Share-Based Awards
Share-Based Awards | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Awards | Share-Based Awards Option Awards The following table summarizes option award activity for the three months ended March 31, 2019 : Number of Shares Subject to Existing Options Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2019 27,310,110 $ 34.04 6.23 $ 97,941 Granted 6,155,283 39.97 Exercised (729,788 ) 18.59 Forfeited or cancelled (993,437 ) 42.01 Outstanding at March 31, 2019 31,742,168 35.30 6.76 122,262 Vested and exercisable at March 31, 2019 16,791,512 30.84 4.83 101,912 The fair value of options granted is estimated at the date of grant using the Black-Scholes-Merton option-pricing model, assuming no dividends and with the following assumptions for the periods presented: Three Months Ended 2019 2018 Expected volatility 46%-47% 43%-45% Expected dividend yield — — Risk-free interest rate 2.38%-2.53% 2.52%-2.65% Weighted-average expected life 4.75-5.25 years 4.50-5.00 years Weighted-average fair value of options granted $16.77 $20.88 As of March 31, 2019 , there was a total of $229.5 million in unrecognized compensation cost related to unvested stock options. Restricted Stock Units The following table summarizes activity for restricted stock units for the three months ended March 31, 2019 : Restricted Stock Units Weighted- Average Grant- Date Fair Value Unvested outstanding at January 1, 2019 5,266,324 $ 42.19 Granted 2,749,293 39.06 Vested (496,347 ) 37.94 Forfeited or cancelled (273,753 ) 40.44 Unvested outstanding at March 31, 2019 7,245,517 41.36 As of March 31, 2019 , there was $279.8 million of total unrecognized compensation cost related to unvested restricted stock units. Share-Based Compensation Expense The following table presents the effects of share-based compensation in our condensed consolidated statements of operations during the periods presented (in thousands): Three Months Ended 2019 2018 Cost of revenue $ 881 $ 955 Sales and marketing 5,650 5,162 Technology and development 15,508 11,542 General and administrative 44,085 13,082 Total $ 66,124 $ 30,741 On February 21, 2019, Zillow Group announced the appointment of Richard N. Barton as Zillow Group’s Chief Executive Officer, effective February 21, 2019. Mr. Barton succeeds Spencer Rascoff, who served as Zillow Group’s Chief Executive Officer since 2010 and who remains a member of Zillow Group’s board of directors. In connection with Mr. Rascoff’s resignation as Chief Executive Officer, Zillow Group entered into an Executive Departure Agreement and Release (the “Agreement”) with Mr. Rascoff. Pursuant to the Agreement, Mr. Rascoff remained a full-time employee of Zillow Group until March 22, 2019 (the “Departure Date”) in order to provide transition services until such date. Pursuant to the Agreement, Mr. Rascoff received, among other things, accelerated vesting of outstanding stock options held by Mr. Rascoff as of the Departure Date by an additional eighteen months from the Departure Date. Options not vested as of the Departure Date, taking into account the foregoing vesting acceleration, were terminated. Each of Mr. Rascoff’s vested stock options outstanding as of the Departure Date will remain exercisable until, except for any later date contemplated by the following proviso, the earlier of (x) the third anniversary of the Departure Date and (y) the latest day upon which the option would have expired by its original terms under any circumstances (the “Option Expiration Outside Date”); provided, however, that the options will remain exercisable for so long as Mr. Rascoff serves on Zillow Group’s board of directors (but not later than any applicable Option Expiration Outside Date), and if Mr. Rascoff ceases to serve on Zillow Group’s board of directors on or after the third anniversary of the Departure Date, each option will remain exercisable until the earlier of (i) ninety days from the final date of Mr. Rascoff’s service on Zillow Group’s board of directors and (ii) the applicable Option Expiration Outside Date. The change in the exercise period of the options as well as the vesting acceleration pursuant to the Agreement have been accounted for as equity modifications, and we recorded $26.4 million of share-based compensation expense associated with the modifications in the three months ended March 31, 2019. We measured the modification charge by calculating the incremental fair value of the modified award compared to the fair value of the original award immediately prior to the modification. The value of the modified awards as of the modification date was estimated using the Black-Scholes-Merton option-pricing model, assuming no dividends, expected volatility of 46% - 47% , a risk-free interest rate of 2.47% - 2.49% |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share For the periods presented, the following Class A common stock and Class C capital stock equivalents were excluded from the calculations of diluted net loss per share because their effect would have been antidilutive (in thousands): Three Months Ended 2019 2018 Weighted-average Class A common stock and Class C capital stock option awards outstanding 19,408 25,222 Weighted-average Class A common stock and Class C capital stock restricted stock units outstanding 5,860 4,346 Class A common stock issuable upon conversion of the convertible notes maturing in 2020 421 403 Class C capital stock issuable related to conversion spread on the convertible notes maturing in 2021 — 235 Total Class A common stock and Class C capital stock equivalents 25,689 30,206 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease Commitments We have entered into various non-cancelable operating lease agreements for certain of our office space and equipment with original lease periods expiring between 2019 and 2024. For additional information regarding our lease agreements, see Note 12 . Purchase Commitments Purchase commitments primarily include various non-cancelable agreements to purchase content related to our mobile applications and websites as well as homes we are under contract to purchase through Zillow Offers but that have not closed as of the respective date. As of March 31, 2019 , the value of homes under contract that have not closed was $140.2 million . Surety Bonds In the course of business, we are required to provide financial commitments in the form of surety bonds to third parties as a guarantee of our performance on and our compliance with certain obligations. If we were to fail to perform or comply with these obligations, any draws upon surety bonds issued on our behalf would then trigger our payment obligation to the surety bond issuer. We have outstanding surety bonds issued for our benefit of approximately $8.6 million and $8.9 million , respectively, as of March 31, 2019 and December 31, 2018 . Legal Proceedings We are involved in a number of legal proceedings concerning matters arising in connection with the conduct of our business activities, some of which are at preliminary stages and some of which seek an indeterminate amount of damages. We regularly evaluate the status of legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or additional loss may have been incurred to determine if accruals are appropriate. We further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made if accruals are not appropriate. For certain cases described below, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in preliminary stages; (ii) specific damages have not been sought; (iii) damages sought are, in our view, unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories presented. For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material effect on our financial position, results of operations or cash flow. In July 2015, VHT, Inc. (“VHT”) filed a complaint against us in the U.S. District Court for the Western District of Washington alleging copyright infringement of VHT’s images on the Zillow Digs site. In January 2016, VHT filed an amended complaint alleging copyright infringement of VHT’s images on the Zillow Digs site as well as the Zillow listing site. In December 2016, the court granted a motion for partial summary judgment that dismissed VHT’s claims with respect to the Zillow listing site. A federal jury trial began on January 23, 2017, and on February 9, 2017, the jury returned a verdict finding that the Company had infringed VHT’s copyrights in images displayed or saved to the Digs site. The jury awarded VHT $79,875 in actual damages and approximately $8.2 million in statutory damages. In March 2017, the Company filed motions in the district court seeking judgment for the Company on certain claims that are the subject of the verdict, and for a new trial on others. On June 20, 2017, the judge ruled and granted in part our motions, finding that VHT failed to present sufficient evidence to prove direct copyright infringement for a portion of the images, reducing the total damages to approximately $4.1 million . On October 26, 2017, the Company filed an appeal with the Ninth Circuit Court of Appeals seeking review of the final judgment and certain prior rulings entered by the district court. The oral hearing for the appeal took place on August 28, 2018. On March 15, 2019, the Ninth Circuit Court of Appeals issued an opinion that, among other things, (i) affirmed the district court’s grant of summary judgment in favor of Zillow on direct infringement of images on Zillow’s listing site, (ii) affirmed the district court’s grant in favor of Zillow of judgment notwithstanding the verdict on certain images that were displayed on the Zillow Digs site, (iii) remanded consideration of the issue whether VHT’s images on the Zillow Digs site were part of a compilation or individual photos, and (iv) vacated the jury’s finding of willful infringement. We have recorded an estimated liability for immaterial amounts related to this matter as of March 31, 2019 and December 31, 2018. We do not believe there is a reasonable possibility that a material loss in excess of amounts accrued may be incurred. In August and September 2017, two purported class action lawsuits were filed against us and certain of our executive officers, alleging, among other things, violations of federal securities laws on behalf of a class of those who purchased our common stock between February 12, 2016 and August 8, 2017. One of those purported class actions, captioned Vargosko v. Zillow Group, Inc. et al, was brought in the U.S. District Court for the Central District of California. The other purported class action lawsuit, captioned Shotwell v. Zillow Group, Inc. et al, was brought in the U.S. District Court for the Western District of Washington. The complaints allege, among other things, that during the period between February 12, 2016 and August 8, 2017, we issued materially false and misleading statements regarding our business practices. The complaints seek to recover, among other things, alleged damages sustained by the purported class members as a result of the alleged misconduct. In November 2017, an amended complaint was filed against us and certain of our executive officers in the Shotwell v. Zillow Group class action lawsuit, extending the beginning of the class period to November 17, 2014. In January 2018, the Vargosko v. Zillow Group purported class action lawsuit was transferred to the U.S. District Court for the Western District of Washington and consolidated with the Shotwell v. Zillow Group purported class action lawsuit. In February 2018, the plaintiffs filed a consolidated amended complaint, and in April 2018, we filed our motion to dismiss the consolidated amended complaint. In May 2018, the plaintiffs filed their opposition to our motion to dismiss the consolidated amended complaint. In June 2018, we filed our reply in support of our motion to dismiss the consolidated amended complaint. In October 2018, our motion to dismiss was granted without prejudice, and the plaintiffs were given 45 days file a second consolidated amended complaint and attempt to cure the defects in their consolidated amended complaint. In November 2018, the plaintiffs filed a second consolidated amended complaint, which we moved to dismiss in December 2018. In January 2019, the plaintiffs filed their opposition to our motion to dismiss the second consolidated amended complaint. In February 2019, we filed our reply in support of our motion to dismiss the second consolidated amended complaint. On April 19, 2019, our motion to dismiss the second consolidated amended complaint was denied, and we filed our answer to the second amended complaint on May 3, 2019. We have denied the allegations of wrongdoing and intend to vigorously defend the claims in this lawsuit. We have not recorded an accrual related to this lawsuit as of March 31, 2019 and December 31, 2018 , as we do not believe a loss is probable. In October and November 2017 and January and February 2018, four shareholder derivative lawsuits were filed in the U.S. District Court for the Western District of Washington and the Superior Court of the State of Washington, against certain of our executive officers and directors seeking unspecified damages on behalf of the Company and certain other relief, such as reform to corporate governance practices. The plaintiffs in the derivative suits (in which the Company is a nominal defendant) allege, among other things, that the defendants breached their fiduciary duties in connection with oversight of the Company’s public statements and legal compliance, and as a result of the breach of such fiduciary duties, the Company was damaged, and defendants were unjustly enriched. Certain of the plaintiffs also allege, among other things, violations of Section 14(a) of the Securities Exchange Act of 1934 and waste of corporate assets. All four of the shareholder derivative lawsuits have been stayed until after final resolution of pleading motions and related appeals, if any, in the consolidated securities class action lawsuit discussed above. The defendants intend to deny the allegations of wrongdoing and vigorously defend the claims in these lawsuits. We have not recorded an accrual related to these lawsuits as of March 31, 2019 and December 31, 2018 , as we do not believe a loss is probable. In addition to the matters discussed above, from time to time, we are involved in litigation and claims that arise in the ordinary course of business. Although we cannot be certain of the outcome of any such litigation or claims, nor the amount of damages and exposure that we could incur, we currently believe that the final disposition of such matters will not have a material effect on our business, financial position, results of operations or cash flow. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. Indemnifications In the ordinary course of business, we enter into contractual arrangements under which we agree to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements and out of intellectual property infringement claims made by third parties. In addition, we have agreements that indemnify certain issuers of surety bonds against losses that they may incur |
Self-Insurance
Self-Insurance | 3 Months Ended |
Mar. 31, 2019 | |
Insurance [Abstract] | |
Self-Insurance | Self-Insurance We are self-insured for medical benefits and dental benefits for all qualifying Zillow Group employees. The medical plan carries a stop-loss policy which will protect when cumulative medical claims exceed 125% of expected claims for the plan year with a limit of $1.0 million and from individual claims during the plan year exceeding $500,000 . We record estimates of the total costs of claims incurred based on an analysis of historical data and independent estimates. Our liability for self-insured claims is included within accrued compensation and benefits in our condensed consolidated balance sheets and was $4.1 million and $ 3.9 million , respectively, as of March 31, 2019 and December 31, 2018 |
Employee Benefit Plan
Employee Benefit Plan | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan We have a defined contribution 401(k) retirement plan covering Zillow Group employees who have met certain eligibility requirements (the “Zillow Group 401(k) Plan”). Eligible employees may contribute pretax compensation up to a maximum amount allowable under the Internal Revenue Service limitations. Employee contributions and earnings thereon vest immediately. We currently match up to 4% of employee contributions under the Zillow Group 401(k) Plan. The total expense related to the Zillow Group 401(k) Plan for the three months ended March 31, 2019 and 2018 was $4.9 million and $3.8 million |
Segment Information and Revenue
Segment Information and Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information and Revenue | Segment Information and Revenue Beginning January 1, 2019, we have three operating and reportable segments, which have been identified based on the way in which our chief operating decision-maker manages our business, makes operating decisions and evaluates operating performance. The chief executive officer acts as the chief operating decision-maker and reviews financial and operational information for the Internet, Media & Technology (“IMT”), Homes and Mortgages segments. The IMT segment includes the financial results for the Premier Agent, Rentals and new construction marketplaces, dotloop, and display, as well as revenue from the sale of various other marketing and business products and services to real estate professionals. The Homes segment includes the financial results from Zillow Group’s buying and selling of homes directly. The Mortgages segment includes financial results for advertising sold to mortgage lenders and other mortgage professionals, mortgage originations through Zillow Home Loans and the sale of mortgages on the secondary market, as well as Mortech mortgage software solutions. Revenue and costs are directly attributed to our segments when possible. However, due to the integrated structure of our business, certain costs incurred by one segment may benefit the other segments. These costs primarily include headcount-related expenses and facilities costs and are allocated to each segment based on the estimated benefit each segment receives from such expenditures. The chief executive officer reviews information about our revenue categories as well as statement of operations data inclusive of loss before income taxes by segment. This information is included in the following tables for the periods presented (in thousands): Three Months Ended March 31, 2019 IMT Homes Mortgages Revenue: Premier Agent $ 217,735 $ — $ — Rentals 37,838 — — Other 42,699 — — Homes — 128,472 — Mortgages — — 27,360 Total revenue 298,272 128,472 27,360 Costs and expenses: Cost of revenue 24,251 122,419 4,678 Sales and marketing 126,654 20,862 14,071 Technology and development 87,969 12,281 7,520 General and administrative 70,850 14,357 10,567 Integration costs — — 352 Total costs and expenses 309,724 169,919 37,188 Loss from operations (11,452 ) (41,447 ) (9,828 ) Segment other income — — 313 Segment interest expense — (3,758 ) (101 ) Loss before income taxes (1) $ (11,452 ) $ (45,205 ) $ (9,616 ) Three Months Ended March 31, 2018 IMT Homes Mortgages Revenue: Premier Agent $ 213,732 $ — $ — Rentals 29,063 — — Other 38,061 — — Homes — — — Mortgages — — 19,023 Total revenue 280,856 — 19,023 Costs and expenses: Cost of revenue 22,594 86 1,239 Sales and marketing 128,747 290 8,254 Technology and development 85,917 2,236 5,780 General and administrative 50,187 1,778 4,108 Acquisition costs 27 — — Total costs and expenses 287,472 4,390 19,381 Loss from operations and loss before incomes taxes (1) $ (6,616 ) $ (4,390 ) $ (358 ) (1) The following table presents the reconciliation of total segment loss before income taxes to consolidated loss before income taxes for the periods presented (in thousands): Three Months Ended March 31, 2019 2018 Total segment loss before income taxes $ (66,273 ) $ (11,364 ) Corporate interest expense (12,607 ) (7,073 ) Corporate other income 8,855 2,446 Consolidated loss before income taxes $ (70,025 ) $ (15,991 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements include Zillow Group, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes included in Zillow Group, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018 , which was filed with the SEC on February 21, 2019. The condensed consolidated balance sheet as of December 31, 2018 , included herein, was derived from the audited financial statements of Zillow Group, Inc. as of that date. The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position as of March 31, 2019 , our results of operations, comprehensive loss and cash flows for the three month periods ended March 31, 2019 and 2018 . The results of the three month period ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019 |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to the net realizable value of inventory, amortization period and recoverability of contract cost assets, website and software development costs, recoverability of long-lived assets and intangible assets with definite lives, share-based compensation, income taxes, business combinations, and the recoverability of goodwill and indefinite-lived intangible assets, among others. To the extent there are material differences between these estimates, judgments, or assumptions and actual results, our financial statements will be affected. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In February 2018, the Financial Accounting Standards Board (“FASB”) issued guidance on income tax accounting related to the Tax Cuts and Jobs Act (the “Tax Act”). This guidance permits a reclassification from accumulated other comprehensive income (loss) to accumulated deficit for the adjustment of deferred taxes due to the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate under the Tax Act. It also requires certain disclosures regarding these reclassifications. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. This guidance must be applied either on a prospective basis in the period of adoption or retrospectively to each period in which the effect of the change in the corporate income tax rate is recognized. We adopted this guidance on January 1, 2019. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows. In March 2017, the FASB issued guidance related to the premium amortization on purchased callable debt securities. This guidance shortens the amortization period for certain callable debt securities purchased at a premium by requiring that the premium be amortized to the earliest call date. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018, and early adoption is permitted. This guidance must be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We adopted this guidance on January 1, 2019. The adoption of this guidance did not have a material impact on our financial position, results of operations or cash flows. In February 2016, the FASB issued guidance on leases. This guidance requires the recognition of a right of use asset and lease liability on the balance sheet for all leases. This guidance also requires more detailed disclosures to enable users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018. In July 2018, the FASB issued certain targeted improvements to the accounting and disclosure requirements for leases, including an additional optional transition method that allows entities to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating prior periods. When adopting the lease guidance, an entity may elect a practical expedient package, under which it need not reassess (a) whether any expired or existing contracts are or contain leases; (b) the lease classification for any expired or existing leases; and (c) initial direct costs for any existing leases. These three practical expedients must be elected as a package and must be consistently applied to all existing leases at the date of adoption. We adopted the new guidance on leases on January 1, 2019 using the optional transition method and elected to adopt the practical expedient package. Under this approach, we did not restate the prior financial statements presented. Based on our lease portfolio as of December 31, 2018, we recorded on our consolidated balance sheet right of use assets of $106.5 million as well as operating lease liabilities of $129.0 million , and we removed the existing deferred rent balance of $22.5 million . The adoption of the standard did not have a material impact to our condensed consolidated statements of operations. Recently Issued Accounting Standards Not Yet Adopted In August 2018, the FASB issued guidance related to a customer’s accounting for implementation costs incurred in hosting arrangements. The guidance aligns the requirements for capitalizing implementation costs incurred in cloud computing arrangements with the requirements for capitalizing costs to develop or obtain internal-use software. This guidance is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. This guidance may be applied either retrospectively or prospectively. We expect to adopt this guidance on January 1, 2020. We have not yet determined the impact the adoption of this guidance will have on our financial position, results of operations or cash flows. In August 2018, the FASB issued guidance related to disclosure requirements for fair value measurements. This guidance removes, modifies and adds disclosures related to fair value measurements. This guidance is effective for interim and annual periods beginning after December 15, 2019, and early adoption is permitted. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim and annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. We expect to adopt this guidance on January 1, 2020. We have not yet determined the impact the adoption of this guidance will have on our financial statement disclosures. |
Fair Value Measurements | Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require. We applied the following methods and assumptions in estimating our fair value measurements: Cash equivalents — The fair value measurement of money market funds is based on quoted market prices in active markets. The fair value measurement of corporate notes and bonds, commercial paper, U.S. government agency securities and certificates of deposit is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Short-term investments — The fair value measurement of our short-term investments is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Restricted cash — Restricted cash consists of cash received from the resale of homes through Zillow Offers which is used to repay amounts borrowed on our revolving credit facilities (see Note 13 ) and amounts held in escrow related to funding home purchases in our mortgage origination business. The carrying value of restricted cash approximates fair value due to the short period of time amounts borrowed on the revolving credit facilities are outstanding. Mortgage loans held for sale —The fair value of mortgage loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics. Interest rate lock commitments —The fair value of interest rate lock commitments (“IRLCs”) is calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics. Expired commitments are excluded from the fair value measurement. We generally only issue IRLCs for products that meet specific purchaser guidelines. Since not all IRLCs will become closed loans, we adjust our fair value measurements for the estimated amount of IRLCs that will not close. Forward contracts |
Segment Reporting | Beginning January 1, 2019, we have three operating and reportable segments, which have been identified based on the way in which our chief operating decision-maker manages our business, makes operating decisions and evaluates operating performance. The chief executive officer acts as the chief operating decision-maker and reviews financial and operational information for the Internet, Media & Technology (“IMT”), Homes and Mortgages segments. The IMT segment includes the financial results for the Premier Agent, Rentals and new construction marketplaces, dotloop, and display, as well as revenue from the sale of various other marketing and business products and services to real estate professionals. The Homes segment includes the financial results from Zillow Group’s buying and selling of homes directly. The Mortgages segment includes financial results for advertising sold to mortgage lenders and other mortgage professionals, mortgage originations through Zillow Home Loans and the sale of mortgages on the secondary market, as well as Mortech mortgage software solutions. Revenue and costs are directly attributed to our segments when possible. However, due to the integrated structure of our business, certain costs incurred by one segment may benefit the other segments. These costs primarily include headcount-related expenses and facilities costs and are allocated to each segment based on the estimated benefit each segment receives from such expenditures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Balances of Cash Equivalents and Investments | The following tables present the balances of assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in thousands): March 31, 2019 Total Level 1 Level 2 Cash equivalents: Money market funds $ 578,037 $ 578,037 $ — Commercial paper 9,940 — 9,940 Short-term investments: U.S. government agency securities 531,006 — 531,006 Corporate notes and bonds 115,682 — 115,682 Commercial paper 82,755 — 82,755 Municipal securities 33,331 — 33,331 Foreign government securities 14,965 — 14,965 Certificates of deposit 3,224 — 3,224 Mortgage origination-related: Mortgage loans held for sale 29,469 — 29,469 Interest rate lock commitments 1,257 — 1,257 Forward contracts - other current assets 19 — 19 Forward contracts - other current liabilities (226 ) — (226 ) Total $ 1,399,459 $ 578,037 $ 821,422 December 31, 2018 Total Level 1 Level 2 Cash equivalents: Money market funds $ 541,575 $ 541,575 $ — Commercial paper 3,999 — 3,999 Short-term investments: U.S. government agency securities 646,496 — 646,496 Corporate notes and bonds 112,933 — 112,933 Commercial paper 85,506 — 85,506 Municipal securities 39,306 — 39,306 Foreign government securities 14,915 — 14,915 Certificates of deposit 4,711 — 4,711 Mortgage origination-related: Mortgage loans held for sale 35,409 — 35,409 Interest rate lock commitments 847 — 847 Forward contracts - other current liabilities (125 ) — (125 ) Total $ 1,485,572 $ 541,575 $ 943,997 |
Cash and Cash Equivalents, Sh_2
Cash and Cash Equivalents, Short-term Investments and Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Market Value of Cash and Cash Equivalents and Available-for-Sale Investments | The following tables present the amortized cost, gross unrealized gains and losses and estimated fair market value of our cash and cash equivalents, available-for-sale investments and restricted cash as of the dates presented (in thousands): March 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Market Value Cash $ 148,530 $ — $ — $ 148,530 Cash equivalents: Money market funds 578,037 — — 578,037 Commercial paper 9,940 — — 9,940 Short-term investments: U.S. government agency securities 530,938 268 (200 ) 531,006 Corporate notes and bonds 115,648 65 (31 ) 115,682 Commercial paper 82,755 — — 82,755 Municipal securities 33,263 74 (6 ) 33,331 Foreign government securities 14,963 2 — 14,965 Certificates of deposit 3,224 — — 3,224 Restricted cash 27,595 — — 27,595 Total $ 1,544,893 $ 409 $ (237 ) $ 1,545,065 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Market Value Cash $ 105,484 $ — $ — $ 105,484 Cash equivalents: Money market funds 541,575 — — 541,575 Commercial paper 3,999 — — 3,999 Short-term investments: U.S. government agency securities 647,266 51 (821 ) 646,496 Corporate notes and bonds 113,109 1 (177 ) 112,933 Commercial paper 85,506 — — 85,506 Municipal securities 39,316 23 (33 ) 39,306 Foreign government securities 14,929 — (14 ) 14,915 Certificates of deposit 4,711 1 (1 ) 4,711 Restricted cash 12,385 — — 12,385 Total $ 1,568,280 $ 76 $ (1,046 ) $ 1,567,310 |
Available-for-Sale Investments by Contractual Maturity | The following table presents available-for-sale investments by contractual maturity date as of March 31, 2019 (in thousands): Amortized Cost Estimated Fair Market Value Due in one year or less $ 723,241 $ 723,207 Due after one year through two years 57,550 57,756 Total $ 780,791 $ 780,963 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | The following table presents the changes in the allowance for doubtful accounts (in thousands): Balance as of January 1, 2019 $ 4,838 Bad debt expense 128 Less: write-offs, net of recoveries and other adjustments (24 ) Balance as of March 31, 2019 $ 4,942 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Net Inventory | The components of inventory, net of applicable lower of cost or net realizable value write-downs, were as follows (in thousands): March 31, December 31, Work-in-progress $ 76,283 $ 45,943 Finished goods 248,871 116,886 Inventory $ 325,154 $ 162,829 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Detail of Property and Equipment | The following table presents the detail of property and equipment as of the dates presented (in thousands): March 31, December 31, Website development costs $ 149,558 $ 149,891 Computer equipment 22,675 22,477 Leasehold improvements 74,888 65,012 Construction-in-progress 26,027 29,037 Office equipment, furniture and fixtures 42,401 39,510 Property and equipment 315,549 305,927 Less: accumulated amortization and depreciation (173,403 ) (170,755 ) Property and equipment, net $ 142,146 $ 135,172 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | The following tables present the detail of intangible assets subject to amortization as of the dates presented (in thousands): March 31, 2019 Cost Accumulated Amortization Net Purchased content $ 42,224 $ (33,017 ) $ 9,207 Software 24,770 (15,339 ) 9,431 Customer relationships 103,600 (63,861 ) 39,739 Developed technology 109,080 (73,459 ) 35,621 Trade names and trademarks 4,400 (4,400 ) — Zillow Home Loans lender licenses 400 (67 ) 333 Intangibles-in-progress 5,602 — 5,602 Total $ 290,076 $ (190,143 ) $ 99,933 December 31, 2018 Cost Accumulated Amortization Net Purchased content $ 42,110 $ (30,477 ) $ 11,633 Software 24,296 (13,925 ) 10,371 Customer relationships 103,900 (60,733 ) 43,167 Developed technology 111,980 (72,788 ) 39,192 Trade names and trademarks 4,900 (4,683 ) 217 Zillow Home Loans lender licenses 400 (17 ) 383 Intangibles-in-progress 2,941 — 2,941 Total $ 290,527 $ (182,623 ) $ 107,904 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Change in Deferred Revenue | The following table presents the changes in deferred revenue for the periods presented (in thousands): Three Months Ended Balance as of January 1, 2019 $ 34,080 Deferral of revenue 242,852 Less: Revenue recognized (240,827 ) Balance as of March 31, 2019 $ 36,105 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of our operating lease expense are as follows for the three months ended March 31, 2019 (in thousands): Operating lease cost $ 6,523 Variable lease cost 4,781 Total lease cost $ 11,304 |
Schedule of Maturities for Operating Lease Liabilities | Maturities of our operating lease liabilities by fiscal year are as follows as of March 31, 2019 (in thousands): Remainder of 2019 $ 19,196 2020 28,550 2021 28,090 2022 24,565 2023 22,388 All future years 19,009 Total lease payments 141,798 Less: Imputed interest (19,832 ) Present value of lease liabilities $ 121,966 |
Schedule of Future Minimum Payments for Operating Leases | The following table presents our future minimum payments for all operating leases as of December 31, 2018, including future minimum payments for operating leases that had not yet commenced as of December 31, 2018 totaling $112.9 million (in thousands): 2019 $ 29,085 2020 38,060 2021 40,099 2022 37,721 2023 36,458 All future years 85,462 Total future minimum lease payments $ 266,885 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Revolving Credit Facilities and Lines of Credit | The following table summarizes our warehouse lines of credit as of the periods presented (in thousands, except interest rates): Maturity Date Maximum Borrowing Capacity Outstanding Borrowings at March 31, 2019 Outstanding Borrowings at December 31, 2018 Weighted Average Interest Rate July 15, 2019 $ 50,000 $ 13,300 $ 14,125 5.00 % June 29, 2019 50,000 14,691 18,892 5.00 % Total $ 100,000 $ 27,991 $ 33,017 Effective Date Maximum Borrowing Capacity Outstanding Borrowings at March 31, 2019 Outstanding Borrowings at December 31, 2018 Weighted Average Interest Rate July 31, 2018 $ 500,000 $ 167,279 $ 116,700 6.00 % January 31, 2019 500,000 78,749 — 5.99 % Total $ 1,000,000 $ 246,028 $ 116,700 |
Schedule of Convertible Senior Notes | The following table summarizes our outstanding convertible senior notes as of the periods presented (in thousands, except interest rates): Maturity Date Aggregate Principal Amount Fair Value at March 31, 2019 Fair Value at December 31, 2018 Stated Interest Rate Effective Interest Rate July 1, 2023 $ 373,750 $ 341,850 $ 321,855 1.50 % 6.99 % December 1, 2021 460,000 470,911 446,200 2.00 % 7.44 % December 15, 2020 9,637 16,842 16,744 2.75 % N/A Total $ 843,387 $ 829,603 $ 784,799 |
Share-Based Awards (Tables)
Share-Based Awards (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Option Award Activity | The following table summarizes option award activity for the three months ended March 31, 2019 : Number of Shares Subject to Existing Options Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at January 1, 2019 27,310,110 $ 34.04 6.23 $ 97,941 Granted 6,155,283 39.97 Exercised (729,788 ) 18.59 Forfeited or cancelled (993,437 ) 42.01 Outstanding at March 31, 2019 31,742,168 35.30 6.76 122,262 Vested and exercisable at March 31, 2019 16,791,512 30.84 4.83 101,912 |
Fair Value of Options Granted, Estimated at Date of Grant Using Black Scholes Merton Option Pricing Model | The fair value of options granted is estimated at the date of grant using the Black-Scholes-Merton option-pricing model, assuming no dividends and with the following assumptions for the periods presented: Three Months Ended 2019 2018 Expected volatility 46%-47% 43%-45% Expected dividend yield — — Risk-free interest rate 2.38%-2.53% 2.52%-2.65% Weighted-average expected life 4.75-5.25 years 4.50-5.00 years Weighted-average fair value of options granted $16.77 $20.88 |
Summary of Restricted Stock Units Activity | The following table summarizes activity for restricted stock units for the three months ended March 31, 2019 : Restricted Stock Units Weighted- Average Grant- Date Fair Value Unvested outstanding at January 1, 2019 5,266,324 $ 42.19 Granted 2,749,293 39.06 Vested (496,347 ) 37.94 Forfeited or cancelled (273,753 ) 40.44 Unvested outstanding at March 31, 2019 7,245,517 41.36 |
Effects of Share Based Compensation in Consolidated Statements of Operations | The following table presents the effects of share-based compensation in our condensed consolidated statements of operations during the periods presented (in thousands): Three Months Ended 2019 2018 Cost of revenue $ 881 $ 955 Sales and marketing 5,650 5,162 Technology and development 15,508 11,542 General and administrative 44,085 13,082 Total $ 66,124 $ 30,741 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | For the periods presented, the following Class A common stock and Class C capital stock equivalents were excluded from the calculations of diluted net loss per share because their effect would have been antidilutive (in thousands): Three Months Ended 2019 2018 Weighted-average Class A common stock and Class C capital stock option awards outstanding 19,408 25,222 Weighted-average Class A common stock and Class C capital stock restricted stock units outstanding 5,860 4,346 Class A common stock issuable upon conversion of the convertible notes maturing in 2020 421 403 Class C capital stock issuable related to conversion spread on the convertible notes maturing in 2021 — 235 Total Class A common stock and Class C capital stock equivalents 25,689 30,206 |
Segment Information and Reven_2
Segment Information and Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenue Categories | This information is included in the following tables for the periods presented (in thousands): Three Months Ended March 31, 2019 IMT Homes Mortgages Revenue: Premier Agent $ 217,735 $ — $ — Rentals 37,838 — — Other 42,699 — — Homes — 128,472 — Mortgages — — 27,360 Total revenue 298,272 128,472 27,360 Costs and expenses: Cost of revenue 24,251 122,419 4,678 Sales and marketing 126,654 20,862 14,071 Technology and development 87,969 12,281 7,520 General and administrative 70,850 14,357 10,567 Integration costs — — 352 Total costs and expenses 309,724 169,919 37,188 Loss from operations (11,452 ) (41,447 ) (9,828 ) Segment other income — — 313 Segment interest expense — (3,758 ) (101 ) Loss before income taxes (1) $ (11,452 ) $ (45,205 ) $ (9,616 ) Three Months Ended March 31, 2018 IMT Homes Mortgages Revenue: Premier Agent $ 213,732 $ — $ — Rentals 29,063 — — Other 38,061 — — Homes — — — Mortgages — — 19,023 Total revenue 280,856 — 19,023 Costs and expenses: Cost of revenue 22,594 86 1,239 Sales and marketing 128,747 290 8,254 Technology and development 85,917 2,236 5,780 General and administrative 50,187 1,778 4,108 Acquisition costs 27 — — Total costs and expenses 287,472 4,390 19,381 Loss from operations and loss before incomes taxes (1) $ (6,616 ) $ (4,390 ) $ (358 ) (1) The following table presents the reconciliation of total segment loss before income taxes to consolidated loss before income taxes for the periods presented (in thousands): Three Months Ended March 31, 2019 2018 Total segment loss before income taxes $ (66,273 ) $ (11,364 ) Corporate interest expense (12,607 ) (7,073 ) Corporate other income 8,855 2,446 Consolidated loss before income taxes $ (70,025 ) $ (15,991 ) |
Reconciliation of Total Segment Loss | The following table presents the reconciliation of total segment loss before income taxes to consolidated loss before income taxes for the periods presented (in thousands): Three Months Ended March 31, 2019 2018 Total segment loss before income taxes $ (66,273 ) $ (11,364 ) Corporate interest expense (12,607 ) (7,073 ) Corporate other income 8,855 2,446 Consolidated loss before income taxes $ (70,025 ) $ (15,991 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | |||
Right of use assets | $ 102,056 | ||
Operating lease liabilities | $ 121,966 | ||
Accounting Standards Update 2016-02 | |||
Property, Plant and Equipment [Line Items] | |||
Right of use assets | $ 106,500 | ||
Operating lease liabilities | $ 129,000 | ||
Removal of deferred rent balance | $ 22,500 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 780,963 | |
Mortgage loans held for sale | 29,469 | $ 35,409 |
Total | 1,399,459 | 1,485,572 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 0 | 0 |
Total | 578,037 | 541,575 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale | 29,469 | 35,409 |
Total | 821,422 | 943,997 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 578,037 | 541,575 |
Money market funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 578,037 | 541,575 |
Money market funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,940 | 3,999 |
Short-term investments | 82,755 | 85,506 |
Commercial paper | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Commercial paper | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,940 | 3,999 |
Short-term investments | 82,755 | 85,506 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 531,006 | 646,496 |
U.S. government agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
U.S. government agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 531,006 | 646,496 |
Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 115,682 | 112,933 |
Corporate notes and bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Corporate notes and bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 115,682 | 112,933 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 33,331 | 39,306 |
Municipal securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Municipal securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 33,331 | 39,306 |
Foreign government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 14,965 | 14,915 |
Foreign government securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Foreign government securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 14,965 | 14,915 |
Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,224 | 4,711 |
Certificates of deposit | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Certificates of deposit | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,224 | 4,711 |
Interest rate lock commitments | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,257 | 847 |
Interest rate lock commitments | Level 1 | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Interest rate lock commitments | Level 2 | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,257 | 847 |
Forward contracts | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 19 | (125) |
Derivative liability | (226) | |
Forward contracts | Level 1 | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liability | 0 | |
Forward contracts | Level 2 | Not Designated as Hedging Instrument | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 19 | $ (125) |
Derivative liability | $ (226) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | $ 0 | $ 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Interest rate lock commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amount | 41,600,000 | 26,700,000 |
Forward contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amount | $ 49,700,000 | $ 28,800,000 |
Cash and Cash Equivalents, Sh_3
Cash and Cash Equivalents, Short-term Investments and Restricted Cash - Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Market Value of Cash and Cash Equivalents and Available-for-Sale Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash and cash equivalents | $ 736,507 | $ 651,058 |
Short-term investments: | ||
Amortized Cost | 780,791 | |
Gross Unrealized Gains | 409 | 76 |
Gross Unrealized Losses | (237) | |
Estimated Fair Market Value | 780,963 | |
Restricted cash | 27,595 | 12,385 |
Cash, cash equivalents, short-term investments, and restricted cash, amortized cost | 1,544,893 | 1,568,280 |
Cash, cash equivalents, short-term investments, and restricted cash, gross unrealized losses | (1,046) | |
Cash, cash equivalents, short-term investments, and restricted cash, estimated fair market value | 1,545,065 | 1,567,310 |
U.S. government agency securities | ||
Short-term investments: | ||
Amortized Cost | 530,938 | 647,266 |
Gross Unrealized Gains | 268 | 51 |
Gross Unrealized Losses | (200) | (821) |
Estimated Fair Market Value | 531,006 | 646,496 |
Corporate notes and bonds | ||
Short-term investments: | ||
Amortized Cost | 115,648 | 113,109 |
Gross Unrealized Gains | 65 | 1 |
Gross Unrealized Losses | (31) | (177) |
Estimated Fair Market Value | 115,682 | 112,933 |
Commercial paper | ||
Short-term investments: | ||
Amortized Cost | 82,755 | 85,506 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Market Value | 82,755 | 85,506 |
Municipal securities | ||
Short-term investments: | ||
Amortized Cost | 33,263 | 39,316 |
Gross Unrealized Gains | 74 | 23 |
Gross Unrealized Losses | (6) | (33) |
Estimated Fair Market Value | 33,331 | 39,306 |
Foreign government securities | ||
Short-term investments: | ||
Amortized Cost | 14,963 | 14,929 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | 0 | (14) |
Estimated Fair Market Value | 14,965 | 14,915 |
Certificates of deposit | ||
Short-term investments: | ||
Amortized Cost | 3,224 | 4,711 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | (1) |
Estimated Fair Market Value | 3,224 | 4,711 |
Cash | ||
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash and cash equivalents | 148,530 | 105,484 |
Money market funds | ||
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash and cash equivalents | 578,037 | 541,575 |
Commercial paper | ||
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash and cash equivalents | $ 9,940 | $ 3,999 |
Cash and Cash Equivalents, Sh_4
Cash and Cash Equivalents, Short-term Investments and Restricted Cash - Available-for-Sale Investments by Contractual Maturity (Detail) $ in Thousands | Mar. 31, 2019USD ($) |
Cash and Cash Equivalents [Abstract] | |
Amortized Cost, Due in one year or less | $ 723,241 |
Amortized Cost, Due after one year through two years | 57,550 |
Amortized Cost | 780,791 |
Estimated Fair Market Value, Due in one year or less | 723,207 |
Estimated Fair Market Value, Due after one year through two years | 57,756 |
Total | $ 780,963 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||||
Accounts receivable, net | $ 70,605 | $ 66,100 | $ 66,083 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Beginning balance | 4,838 | |||
Bad debt expense | 128 | $ (267) | ||
Less: write-offs, net of recoveries and other adjustments | (24) | |||
Ending balance | $ 4,942 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Work-in-progress | $ 76,283 | $ 45,943 |
Finished goods | 248,871 | 116,886 |
Inventory | $ 325,154 | $ 162,829 |
Contract Cost Assets (Details)
Contract Cost Assets (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Contract cost assets | $ 46,176,000 | $ 45,819,000 | |
Impairment of contract cost assets | 0 | $ 0 | |
Amortization of contract cost assets | $ 8,746,000 | $ 9,296,000 |
Property and Equipment, net - D
Property and Equipment, net - Detail of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 315,549 | $ 305,927 |
Less: accumulated amortization and depreciation | (173,403) | (170,755) |
Property and equipment, net | 142,146 | 135,172 |
Website development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 149,558 | 149,891 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 22,675 | 22,477 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 74,888 | 65,012 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 26,027 | 29,037 |
Office equipment, furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 42,401 | $ 39,510 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Amortization and depreciation expense related to property and equipment other than website development costs | $ 6 | $ 4.2 |
Capitalization of website development costs | 10 | 8.6 |
Amortization of website development costs and intangible assets included in technology and development | 11 | 13 |
Technology and development | Software Development | ||
Property, Plant and Equipment [Line Items] | ||
Amortization of website development costs and intangible assets included in technology and development | $ 3.4 | $ 9.5 |
Equity Investment - Additional
Equity Investment - Additional Information (Detail) - October 2016 Investment - USD ($) | 1 Months Ended | |
Oct. 31, 2016 | Mar. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||
Cumulative impairment charge | $ 0 | |
Upward adjustments | 0 | |
Downward adjustments | 0 | |
Variable Interest Entity, Not Primary Beneficiary | ||
Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity interest held | 10.00% | |
Equity investments | $ 10,000,000 | |
Maximum exposure to loss | $ 10,000,000 |
Intangible Assets, net - Intang
Intangible Assets, net - Intangible Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 290,076 | $ 290,527 |
Accumulated Amortization | (190,143) | (182,623) |
Net | 99,933 | 107,904 |
Purchased content | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 42,224 | 42,110 |
Accumulated Amortization | (33,017) | (30,477) |
Net | 9,207 | 11,633 |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 24,770 | 24,296 |
Accumulated Amortization | (15,339) | (13,925) |
Net | 9,431 | 10,371 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 103,600 | 103,900 |
Accumulated Amortization | (63,861) | (60,733) |
Net | 39,739 | 43,167 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 109,080 | 111,980 |
Accumulated Amortization | (73,459) | (72,788) |
Net | 35,621 | 39,192 |
Trade names and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 4,400 | 4,900 |
Accumulated Amortization | (4,400) | (4,683) |
Net | 0 | 217 |
Zillow Home Loans lender licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 400 | 400 |
Accumulated Amortization | (67) | (17) |
Net | 333 | 383 |
Intangibles-in-progress | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 5,602 | 2,941 |
Accumulated Amortization | 0 | 0 |
Net | $ 5,602 | $ 2,941 |
Intangible Assets, net - Additi
Intangible Assets, net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Amortization of website development costs and intangible assets included in technology and development | $ 11 | $ 13 | |
Trade names and trademarks | Trulia | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible asset | $ 108 | $ 108 |
Deferred Revenue (Details)
Deferred Revenue (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Beginning balance | $ 34,080 |
Deferral of revenue | 242,852 |
Less: Revenue recognized | (240,827) |
Ending balance | 36,105 |
Revenue recognized, recorded in deferred revenue as of prior period | $ 30,700 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)renewal_option | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Option to extend lease | 10 years | |
Option to extend existing lease | 5 years | |
Number of periods | renewal_option | 2 | |
Cash paid for amounts included in measurement of lease liabilities | $ 9.1 | |
Weighted average remaining lease term | 5 years | |
Weighted average discount rate | 5.90% | |
Lease payments for leases not yet commenced | $ 112.9 | |
Operating leases not yet commenced | $ 112.9 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Operating lease commencement period | 5 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 5 years | |
Operating lease commencement period | 11 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 6,523 |
Variable lease cost | 4,781 |
Total lease cost | $ 11,304 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities for Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 19,196 |
2020 | 28,550 |
2021 | 28,090 |
2022 | 24,565 |
2023 | 22,388 |
All future years | 19,009 |
Total lease payments | 141,798 |
Less: Imputed interest | (19,832) |
Present value of lease liabilities | $ 121,966 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 29,085 |
2020 | 38,060 |
2021 | 40,099 |
2022 | 37,721 |
2023 | 36,458 |
All future years | 85,462 |
Total future minimum lease payments | $ 266,885 |
Debt - Schedule of Revolving Cr
Debt - Schedule of Revolving Credit Facilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Outstanding borrowings on revolving credit facility | $ 246,028 | $ 116,700 |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | 1,000,000 | |
Outstanding borrowings on revolving credit facility | 246,028 | 116,700 |
Line of Credit | Revolving Credit Facility | July 31, 2018 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | 500,000 | |
Outstanding borrowings on revolving credit facility | $ 167,279 | 116,700 |
Weighted Average Interest Rate | 6.00% | |
Line of Credit | Revolving Credit Facility | January 31, 2019 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 500,000 | |
Outstanding borrowings on revolving credit facility | $ 78,749 | $ 0 |
Weighted Average Interest Rate | 5.99% |
Debt - Narrative (Detail)
Debt - Narrative (Detail) - USD ($) | Jan. 31, 2019 | Jul. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Unamortized debt discount and debt issuance costs | $ 135,500,000 | $ 144,400,000 | ||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 1,000,000,000 | |||
Extension of expiration period (up to) | 2 years | |||
Credit Agreement | Revolving Credit Facility | Citibank, N.A. | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 500,000,000 | |||
Current borrowing capacity | 79,000,000 | |||
Revolving credit facility, initial term | 2 years | |||
July 31, 2018 | Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 500,000,000 | |||
Current borrowing capacity | $ 177,300,000 | |||
Revolving credit facility, initial term | 1 year |
Debt - Schedule of Warehouse Li
Debt - Schedule of Warehouse Lines of Credit (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Warehouse lines of credit | $ 27,991 | $ 33,018 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | 100,000 | |
Warehouse lines of credit | 27,991 | 33,017 |
Line of Credit | July 15, 2019 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | 50,000 | |
Warehouse lines of credit | $ 13,300 | 14,125 |
Weighted Average Interest Rate | 5.00% | |
Line of Credit | June 29, 2019 | ||
Debt Instrument [Line Items] | ||
Maximum Borrowing Capacity | $ 50,000 | |
Warehouse lines of credit | $ 14,691 | $ 18,892 |
Weighted Average Interest Rate | 5.00% |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Senior Notes (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Aggregate Principal Amount | $ 843,387 | |
Fair Value | 829,603 | $ 784,799 |
Convertible Debt | July 1, 2023 | ||
Debt Instrument [Line Items] | ||
Aggregate Principal Amount | 373,750 | |
Fair Value | $ 341,850 | 321,855 |
Stated Interest Rate | 1.50% | |
Effective Interest Rate | 6.99% | |
Convertible Debt | December 1, 2021 | ||
Debt Instrument [Line Items] | ||
Aggregate Principal Amount | $ 460,000 | |
Fair Value | $ 470,911 | 446,200 |
Stated Interest Rate | 2.00% | |
Effective Interest Rate | 7.44% | |
Convertible Debt | December 15, 2020 | ||
Debt Instrument [Line Items] | ||
Aggregate Principal Amount | $ 9,637 | |
Fair Value | $ 16,842 | $ 16,744 |
Stated Interest Rate | 2.75% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Federal | |
Schedule Of Income Tax [Line Items] | |
Net operating loss carryforwards | $ 1,081.7 |
State | |
Schedule Of Income Tax [Line Items] | |
Net operating loss carryforwards | $ 32.5 |
Share-Based Awards - Summary of
Share-Based Awards - Summary of Option Award (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Number of Shares Subject to Existing Options | ||
Beginning Balance (in shares) | 27,310,110 | |
Granted (in shares) | 6,155,283 | |
Exercised (in shares) | (729,788) | |
Forfeited or cancelled (in shares) | (993,437) | |
Ending Balance (in shares) | 31,742,168 | 27,310,110 |
Vested and exercisable ending balance (in shares) | 16,791,512 | |
Weighted- Average Exercise Price Per Share | ||
Beginning Balance (usd per share) | $ 34.04 | |
Granted (usd per share) | 39.97 | |
Exercised (usd per share) | 18.59 | |
Forfeited or cancelled (usd per share) | 42.01 | |
Ending Balance (usd per share) | 35.30 | $ 34.04 |
Vested and exercisable (usd per share) | $ 30.84 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted-Average Remaining Contractual Life, Outstanding | 6 years 9 months 3 days | 6 years 2 months 23 days |
Weighted-Average Remaining Contractual Life, Vested and exercisable | 4 years 9 months 29 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||
Aggregate Intrinsic Value, Outstanding | $ 122,262 | $ 97,941 |
Aggregate Intrinsic Value Vested, and exercisable | $ 101,912 |
Share-Based Awards - Fair Value
Share-Based Awards - Fair Value of Options Granted, Estimated at Date of Grant Using Black Scholes Merton Option Pricing Model (Detail) - Option Awards - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.00% | 0.00% |
Weighted-average fair value of options granted (usd per share) | $ 16.77 | $ 20.88 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 46.00% | 43.00% |
Risk-free interest rate | 2.38% | 2.52% |
Weighted-average expected life | 4 years 9 months | 4 years 6 months |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 47.00% | 45.00% |
Risk-free interest rate | 2.53% | 2.65% |
Weighted-average expected life | 5 years 3 months | 5 years |
Share-Based Awards - Option Awa
Share-Based Awards - Option Awards - Additional Information (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Option Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized cost of unvested share-based compensation awards | $ 229.5 |
Share-Based Awards - Summary _2
Share-Based Awards - Summary of Restricted Stock Units Activity (Detail) - Restricted Stock Units | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Restricted Stock Units | |
Beginning balance (in shares) | shares | 5,266,324 |
Granted (in shares) | shares | 2,749,293 |
Vested (in shares) | shares | (496,347) |
Forfeited or cancelled (in shares) | shares | (273,753) |
Ending balance (in shares) | shares | 7,245,517 |
Weighted- Average Grant- Date Fair Value | |
Unvested outstanding, beginning balance (usd per share) | $ / shares | $ 42.19 |
Granted (usd per share) | $ / shares | 39.06 |
Vested (usd per share) | $ / shares | 37.94 |
Forfeited or cancelled (usd per share) | $ / shares | 40.44 |
Unvested outstanding, ending balance (usd per share) | $ / shares | $ 41.36 |
Share-Based Awards - Restricted
Share-Based Awards - Restricted Stock Units - Additional Information (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation cost | $ 279.8 |
Share-Based Awards - Effects of
Share-Based Awards - Effects of Share Based Compensation in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | Feb. 21, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $ 66,124 | $ 30,741 | |
Chief Executive Officer | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 26,400 | ||
Accelerated vesting period from departure date | 18 months | ||
Exercisable period from final date | 90 days | ||
Minimum | Chief Executive Officer | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Expected volatility | 46.00% | ||
Risk-free interest rate | 2.47% | ||
Weighted-average expected life | 3 years 10 months 2 days | ||
Maximum | Chief Executive Officer | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Expected volatility | 47.00% | ||
Risk-free interest rate | 2.49% | ||
Weighted-average expected life | 5 years 3 months | ||
Cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 881 | 955 | |
Sales and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 5,650 | 5,162 | |
Technology and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | 15,508 | 11,542 | |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation | $ 44,085 | $ 13,082 |
Net Loss Per Share - Antidiluti
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Class A Common Stock and Class C Capital Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total Class A common stock and Class C capital stock equivalents (in shares) | 25,689 | 30,206 |
Class A Common Stock and Class C Capital Stock | Weighted Average | Option Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total Class A common stock and Class C capital stock equivalents (in shares) | 19,408 | 25,222 |
Class A Common Stock and Class C Capital Stock | Weighted Average | Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total Class A common stock and Class C capital stock equivalents (in shares) | 5,860 | 4,346 |
Class A Common Stock | December 15, 2020 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total Class A common stock and Class C capital stock equivalents (in shares) | 421 | 403 |
Class C Capital Stock | December 1, 2021 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total Class A common stock and Class C capital stock equivalents (in shares) | 0 | 235 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jun. 20, 2017USD ($) | Feb. 09, 2017USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Feb. 28, 2018claim | Sep. 30, 2017claim |
Other Commitments [Line Items] | ||||||
Outstanding surety bonds | $ 8,600,000 | $ 8,900,000 | ||||
VHT Vs Zillow Group Inc. | ||||||
Other Commitments [Line Items] | ||||||
Jury awarded damages | $ 4,100,000 | |||||
VHT Vs Zillow Group Inc. | Actual Damages | ||||||
Other Commitments [Line Items] | ||||||
Jury awarded damages | $ 79,875 | |||||
VHT Vs Zillow Group Inc. | Statutory Damages | ||||||
Other Commitments [Line Items] | ||||||
Jury awarded damages | $ 8,200,000 | |||||
Class Action Lawsuits | ||||||
Other Commitments [Line Items] | ||||||
Number of pending claims | claim | 2 | |||||
Shareholder Derivative Lawsuits | ||||||
Other Commitments [Line Items] | ||||||
Number of pending claims | claim | 4 | |||||
Homes under contract to purchase that have not closed | ||||||
Other Commitments [Line Items] | ||||||
Value of homes under contract that have not closed | $ 140,200,000 |
Self-Insurance - Additional Inf
Self-Insurance - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Insurance [Abstract] | ||
Percentage of cumulative medical claim under self insurance plan (percent exceeded) | 125.00% | |
Limit of medical claim under self insurance plan (limit) | $ 1,000,000 | |
Minimum amount of individual claim under self insurance plan | 500,000 | |
Liability for self-insured claims included in accrued compensation and benefits | $ 4,100,000 | $ 3,900,000 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - Zillow Merger - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | ||
Company's contribution based on employee contribution (up to) | 4.00% | |
Company's expense related to its defined contribution 401(k) retirement plans | $ 4.9 | $ 3.8 |
Segment Information and Reven_3
Segment Information and Revenue - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information and Reven_4
Segment Information and Revenue - Revenue Categories (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Revenue: | |||
Total revenue | $ 454,104 | $ 299,879 | |
Costs and expenses: | |||
Cost of revenue | 151,348 | 23,919 | |
Sales and marketing | 161,587 | 137,291 | |
Technology and development | 107,770 | 93,933 | |
General and administrative | 95,774 | 56,073 | |
Acquisition-related costs | 352 | 0 | |
Integration costs | 0 | 27 | |
Total costs and expenses | 516,831 | 311,243 | |
Loss from operations | (62,727) | (11,364) | |
Other income | 9,168 | 2,446 | |
Interest expense | (16,466) | (7,073) | |
Loss before income taxes | (70,025) | (15,991) | |
IMT | |||
Revenue: | |||
Total revenue | 298,272 | 280,856 | |
Costs and expenses: | |||
Cost of revenue | [1] | 24,251 | 22,594 |
Sales and marketing | 126,654 | 128,747 | |
Technology and development | 87,969 | 85,917 | |
General and administrative | 70,850 | 50,187 | |
Integration costs | 0 | 27 | |
Total costs and expenses | 309,724 | 287,472 | |
Loss from operations | (11,452) | ||
Other income | 0 | ||
Interest expense | 0 | ||
Loss before income taxes | (11,452) | (6,616) | |
IMT | Premier Agent | |||
Revenue: | |||
Total revenue | 217,735 | 213,732 | |
IMT | Rentals | |||
Revenue: | |||
Total revenue | 37,838 | 29,063 | |
IMT | Other | |||
Revenue: | |||
Total revenue | 42,699 | 38,061 | |
IMT | Homes | |||
Revenue: | |||
Total revenue | 0 | 0 | |
IMT | Mortgages | |||
Revenue: | |||
Total revenue | 0 | 0 | |
Homes | |||
Revenue: | |||
Total revenue | 128,472 | 0 | |
Costs and expenses: | |||
Cost of revenue | [1] | 122,419 | 86 |
Sales and marketing | 20,862 | 290 | |
Technology and development | 12,281 | 2,236 | |
General and administrative | 14,357 | 1,778 | |
Integration costs | 0 | 0 | |
Total costs and expenses | 169,919 | 4,390 | |
Loss from operations | (41,447) | ||
Other income | 0 | ||
Interest expense | (3,758) | ||
Loss before income taxes | (45,205) | (4,390) | |
Homes | Premier Agent | |||
Revenue: | |||
Total revenue | 0 | 0 | |
Homes | Rentals | |||
Revenue: | |||
Total revenue | 0 | 0 | |
Homes | Other | |||
Revenue: | |||
Total revenue | 0 | 0 | |
Homes | Homes | |||
Revenue: | |||
Total revenue | 128,472 | 0 | |
Homes | Mortgages | |||
Revenue: | |||
Total revenue | 0 | 0 | |
Mortgages | |||
Revenue: | |||
Total revenue | 27,360 | 19,023 | |
Costs and expenses: | |||
Cost of revenue | [1] | 4,678 | 1,239 |
Sales and marketing | 14,071 | 8,254 | |
Technology and development | 7,520 | 5,780 | |
General and administrative | 10,567 | 4,108 | |
Integration costs | 352 | 0 | |
Total costs and expenses | 37,188 | 19,381 | |
Loss from operations | (9,828) | ||
Other income | 313 | ||
Interest expense | (101) | ||
Loss before income taxes | (9,616) | (358) | |
Mortgages | Premier Agent | |||
Revenue: | |||
Total revenue | 0 | 0 | |
Mortgages | Rentals | |||
Revenue: | |||
Total revenue | 0 | 0 | |
Mortgages | Other | |||
Revenue: | |||
Total revenue | 0 | 0 | |
Mortgages | Homes | |||
Revenue: | |||
Total revenue | 0 | 0 | |
Mortgages | Mortgages | |||
Revenue: | |||
Total revenue | $ 27,360 | $ 19,023 | |
[1] | Amortization of website development costs and intangible assets included in technology and development of $14,400 and $22,549 for the three months ended March 31, 2019 and 2018, respectively. |
Segment Information and Reven_5
Segment Information and Revenue - Reconciliation of Total Segment Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Loss before income taxes | $ (70,025) | $ (15,991) |
Corporate interest expense | (16,466) | (7,073) |
Corporate other income | 9,168 | 2,446 |
Consolidated loss before income taxes | (70,025) | (15,991) |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Loss before income taxes | (66,273) | (11,364) |
Consolidated loss before income taxes | (66,273) | (11,364) |
Corporate | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Corporate interest expense | (12,607) | (7,073) |
Corporate other income | $ 8,855 | $ 2,446 |
Uncategorized Items - q12019for
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 40,322,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 40,322,000 |