Zillow Group Inc (NASDAQ:Z) (NASDAQ:ZG) reported financial results for the second quarter after the market close on Wednesday. Here’s a rundown of the report.
- Q2 Revenue: $572 million, versus estimates of $537.588 million
- Q2 EPS: 39 cents, versus estimates of 27 cents
Total revenue was up 13% year-over-year in the second quarter. Residential revenue increased 8% year-over-year to $409 million. Rentals revenue increased 29% year-over-year to $117 million. Mortgages revenue increased 42% year-over-year to $34 million.
Zillow said it had 231 million average monthly unique users across its mobile apps and sites in the second quarter, flat on a year-over-year basis. Visits were up 4% year-over-year to 2.5 billion.
Zillow also announced that it promoted COO Jeremy Wacksman to CEO. Waksman will replace co-founder Rich Barton, who will remain on Zillow’s board and become co-executive chair alongside co-founder and current executive chair Lloyd Frink.
“Zillow outperformed the residential real estate industry for the eighth consecutive quarter, delivering better-than-expected revenue across the business. We’re executing well, continually shipping exceptional products and services in Zillow’s housing super app as we build the digital future of real estate,” Wacksman said.
“With an increasingly diversified and growing business, we are on our way to deliver strong GAAP profitability over time and meet our 2024 expectations to deliver double-digit revenue growth and modestly expand our Adjusted EBITDA margin.”
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Outlook: Zillow expects third-quarter revenue to be in the range of $545 million to $560 million versus estimates of $538 million. The company expects residential revenue to come in between $375 million and $385 million in the third quarter. Adjusted EBITDA is expected to be in the range of $95 million to $110 million.
“We estimate the residential real estate industry total transaction value in Q3 will grow in the mid-single digits range year over year as compared to 3% year-over-year growth in Q2 2024,” the company said.
“We expect our Rentals revenue to grow in the mid-20% range year over year. We expect multifamily revenue to grow faster than Rentals overall, as we benefit from sales.”
ZG Price Action: Zillow shares were up 13.72% after-hours at $45.89 at the time of publication Wednesday, according to Benzinga Pro.
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