Zillow Group Inc. reported second-quarter earnings that beat analysts’ estimates, as the company’s core marketing business outperformed an anemic US housing market.
- The online real estate company reported adjusted earnings before interest, taxes, depreciation and amortization of $111 million, according to a statement Wednesday. Analysts expected $77 million, the average in a survey compiled by Bloomberg.
Key Insights
- Zillow’s “residential” business segment generated $380 million in revenue in the quarter, down just 3% from the same period of 2022, when the housing market was still blazing. That compares with a 22% decline in industry transaction volumes, according to the statement.
- The company’s websites and apps remained popular despite slower home sales, attracting 226 million unique users on the average month in the second quarter. Zillow said investments to its sales funnel have helped it do a better job connecting homebuyers to real estate agents.
- “Zillow outperformed the broader industry for the fourth consecutive quarter as we navigate a tough real estate market,” Chief Executive Officer Rich Barton said in the statement. “I’m pleased with our steady progress on improving and integrating our customer and partner experiences, especially in touring, financing and renting.”
Market Reaction
- Zillow shares rose in late trading. They had increased 70% from the beginning of the year through Wednesday’s close.