Key TakeawaysShares of Zillow Group soared on Thursday, one day after the company named a new CEO and announced better-than-expected second-quarter results.The real estate services company reported a narrower loss and better-than-expected revenue for the second quarter, as demand for all of its services grew.Zillow announced COO Jeremy Wacksman would be the new CEO, replacing co-founder Rich Barton. Zillow Group (Z) shares jumped as the real estate services company reported better-than-expected results for ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Zillow Group, Inc. (ZG) reported healthy second-quarter 2024 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. The company witnessed a revenue expansion year over year, backed by strong momentum in all verticals.The company has a solid brand position in the residential real estate industry. It boasts 231 million average monthly unique users across the Zillow ecosystem of apps and sites. Zillow’s advanced technology, such as Real Time Touring, Listing Showcase, Follow Up ...

Zillow Group (ZG) reported $572 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 13%. EPS of $0.39 for the same period compares to $0.39 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $539.75 million, representing a surprise of +5.98%. The company delivered an EPS surprise of +25.81%, with the consensus EPS estimate being $0.31.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

Company Performance - Zillow reported quarterly earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, with an earnings surprise of 25.81% [1] - The company generated revenues of $572 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 5.98%, compared to $506 million in the same quarter last year [1] - Over the last four quarters, Zillow has surpassed consensus EPS estimates two times and revenue estimates three times [1] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.44 on revenues of $564.3 million, and for the current fiscal year, it is $1.42 on revenues of $2.18 billion [4] - The estimate revisions trend for Zillow is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [4] Industry Context - The Real Estate - Operations industry, to which Zillow belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, suggesting potential challenges ahead [5] - Another company in the same industry, American Strategic Investment Co., is expected to report a quarterly loss of $2.99 per share, reflecting a year-over-year change of +37.3% [5][6]

Zillow Group (ZG) came out with quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 25.81%. A quarter ago, it was expected that this online real estate marketplace would post earnings of $0.36 per share when it actually produced earnings of $0.36, delivering no surprise.Over the last four quarters, the ...

Reported Consolidated Results ZILLOW GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited) Exhibit 99.2 ZILLOW GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | | (in millions, except share data, which are presented in thousands, and per share data, unaudited) | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | Three Months Ended | | | | Six Months Ended | | | | | | June 30, | | | June 30, | | | | | | 2024 | | 2023 | | 2024 | | 2023 | | Revenue | ...

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29) This section presents Zillow Group's unaudited condensed consolidated financial statements for Q2 2024, showing $572 million revenue and a $17 million net loss [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets were $6.63 billion, a slight decrease from year-end 2023, with current liabilities rising due to reclassified convertible notes Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$6,628** | **$6,652** | | Total Current Assets | $3,129 | $3,149 | | Goodwill | $2,818 | $2,817 | | **Total Liabilities** | **$2,127** | **$2,126** | | Total Current Liabilities | $1,478 | $971 | | Convertible senior notes, net | $1,522 | $1,607 | | **Total Shareholders' Equity** | **$4,501** | **$4,526** | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2024, Zillow reported a 13% year-over-year revenue increase to $572 million, narrowing its net loss to $17 million Statement of Operations Summary (in millions, except per share data) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$572** | **$506** | **$1,101** | **$975** | | Gross Profit | $442 | $402 | $848 | $779 | | Loss from Operations | ($38) | ($67) | ($83) | ($112) | | **Net Loss** | **($17)** | **($35)** | **($40)** | **($57)** | | Net Loss Per Share | ($0.07) | ($0.15) | ($0.17) | ($0.24) | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, net cash provided by operating activities decreased to $135 million, while investing and financing activities used significant cash Six Months Ended June 30, Cash Flow Summary (in millions) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $135 | $193 | | Net cash provided by (used in) investing activities | ($207) | $84 | | Net cash used in financing activities | ($240) | ($177) | | **Net (decrease) increase in cash** | **($312)** | **$100** | [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, recent acquisitions, debt structure, and ongoing legal contingencies, including the Follow Up Boss acquisition and convertible notes - Acquired Follow Up Boss for **$399 million** in cash and up to **$100 million** in contingent consideration, adding **$402 million** in goodwill[60](index=60&type=chunk)[61](index=61&type=chunk) - As of June 30, 2024, the company had **$1.526 billion** in aggregate principal of convertible senior notes outstanding, with maturities in 2024, 2025, and 2026[75](index=75&type=chunk) - In Q2 2024, the company repurchased **6.9 million shares** of its Class A and Class C stock for a total of **$292 million**[84](index=84&type=chunk) - The company is involved in ongoing legal proceedings, including patent litigation with IBM and a consolidated securities class action lawsuit, but does not believe a loss is probable for these cases[92](index=92&type=chunk)[95](index=95&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Zillow's Q2 2024 performance, noting a 13% revenue increase to $572 million and a 21% rise in Adjusted EBITDA [Financial and Business Overview](index=31&type=section&id=Financial%20and%20Business%20Overview) Zillow's Q2 2024 revenue grew 13% to $572 million, driven by strong performance across Residential, Rentals, and Mortgages segments, outpacing the broader housing market Revenue by Category - Q2 2024 vs Q2 2023 (in millions) | Category | Q2 2024 | Q2 2023 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Residential | $409 | $380 | $29 | 8% | | Rentals | $117 | $91 | $26 | 29% | | Mortgages | $34 | $24 | $10 | 42% | | Other | $12 | $11 | $1 | 9% | | **Total Revenue** | **$572** | **$506** | **$66** | **13%** | - The company's financial performance outpaced the broader housing market, where total transaction value increased **3%** in Q2 2024 year-over-year[110](index=110&type=chunk) [Key Metrics](index=32&type=section&id=Key%20Metrics) In Q2 2024, Zillow's total visits increased 4% to 2.5 billion, while loan origination volume surged 123% to $759 million, primarily from purchase loans Key Metrics (Q2 2024 vs Q2 2023) | Metric | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Visits (in millions) | 2,495 | 2,391 | 4% | | Average monthly unique users (in millions) | 231 | 232 | 0% | Loan Origination Volume (in millions) | Loan Type | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Purchase | $756 | $336 | 125% | | Refinance | $3 | $4 | (25)% | | **Total** | **$759** | **$340** | **123%** | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) For Q2 2024, gross profit increased 10% to $442 million, while Adjusted EBITDA grew 21% to $134 million, despite rising sales and marketing expenses Adjusted EBITDA Reconciliation (in millions) | Line Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net loss | $(17) | $(35) | | *Adjustments...* | | | | Share-based compensation | $113 | $130 | | Depreciation and amortization | $59 | $45 | | **Adjusted EBITDA** | **$134** | **$111** | - Cost of revenue increased **25%** in Q2 2024, primarily due to higher depreciation and amortization from website development costs and increased mortgage loan processing costs[148](index=148&type=chunk) - Sales and marketing expenses increased **18%** in Q2 2024, driven by higher headcount-related costs and increased marketing investment in the rentals marketplace[154](index=154&type=chunk) - General and administrative expenses decreased **14%** in Q2 2024, mainly because the prior-year period included **$17 million** in share-based compensation expense for departing executives[160](index=160&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2024, Zillow maintained a strong liquidity position with $2.6 billion in cash and investments, utilizing capital for share repurchases and mortgage originations - The company holds **$2.6 billion** in cash, cash equivalents, investments, and restricted cash as of June 30, 2024[169](index=169&type=chunk) - During H1 2024, the company repurchased **7.1 million shares** of its stock for an aggregate price of **$301 million**[183](index=183&type=chunk) - In Q2 2024, the company repurchased **$88 million** principal amount of its 2025 Convertible Notes for **$89 million** in cash[182](index=182&type=chunk) - Zillow Home Loans utilizes master repurchase agreements with a total capacity of **$250 million** to fund mortgage originations, with **$182 million** outstanding as of June 30, 2024[184](index=184&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies interest rate and inflation as primary market risks, impacting investment yields, debt costs, operating expenses, and consumer demand - Interest rate risk impacts the company's investment portfolio and its mortgage origination business (Zillow Home Loans), which uses floating-rate debt, managed via forward sales of MBSs[193](index=193&type=chunk)[196](index=196&type=chunk) - Inflationary pressures have adversely impacted revenue by affecting consumer demand for advertising and mortgage services due to high mortgage rates, also increasing operating costs, particularly for labor and marketing[198](index=198&type=chunk)[199](index=199&type=chunk) [Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2024, Zillow's CEO and CFO concluded that disclosure controls and procedures are effective, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2024[202](index=202&type=chunk) - No material changes to internal control over financial reporting were identified during the second quarter of 2024[203](index=203&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=49&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ongoing patent and securities lawsuits, not expected to materially impact its financial position - The company is defending against patent infringement claims from IBM; some claims have been dismissed or found unpatentable, while one remains subject to a pending appeal[92](index=92&type=chunk)[93](index=93&type=chunk) - A consolidated federal securities class action lawsuit alleges false and misleading statements regarding the Zillow Offers business; the company's motion to dismiss was partially granted and partially denied, and the case is ongoing[95](index=95&type=chunk) - Shareholder derivative suits related to the Zillow Offers wind-down have been filed and are currently stayed pending the outcome of the related securities suit[96](index=96&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) This section states that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - There have been no material changes to the risk factors affecting the business from those set forth in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023[207](index=207&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2024, Zillow repurchased 6.885 million shares for $292 million, with $381 million remaining for future repurchases Issuer Purchases of Equity Securities (Q2 2024) | Period | Total Shares Purchased (thousands) | Average Price Paid Per Share | Total Purchase Price (millions) | | :--- | :--- | :--- | :--- | | **Class A Common Stock** | **981** | **$41.92** | **$41** | | April 2024 | 340 | $43.01 | $14.6 | | May 2024 | 528 | $41.34 | $21.8 | | June 2024 | 113 | $41.38 | $4.7 | | **Class C Capital Stock** | **5,904** | **$42.41** | **$251** | | April 2024 | 1,750 | $43.34 | $75.8 | | May 2024 | 3,055 | $41.89 | $127.9 | | June 2024 | 1,099 | $42.38 | $46.6 | | **Total** | **6,885** | **-** | **$292** | - As of June 30, 2024, **$381 million** remained available for future repurchases of stock and/or convertible senior notes[210](index=210&type=chunk) [Other Information](index=53&type=section&id=Item%205.%20Other%20Information) This section discloses that a board member and the Chief Operating Officer entered into 10b5-1 sales plans in June and February 2024, respectively - On June 10, 2024, board member Claire Cormier Thielke entered into a 10b5-1 sales plan for shares of Class C capital stock, effective September 16, 2024[213](index=213&type=chunk) - On February 16, 2024, COO Jeremy Wacksman entered into a 10b5-1 sales plan for shares of Class C capital stock, effective May 17, 2024[214](index=214&type=chunk) [Exhibits](index=54&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate documents and certifications from the CEO and CFO - The exhibits filed with the report include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, as well as Inline XBRL data files[217](index=217&type=chunk)

Listings for luxury homes are seeing relatively more competition than homes in the market's midrange Luxury home values are up 3.9% year over year.  Inventory of luxury homes remains 46.9% below pre-pandemic levels, a bigger deficit than in the housing market overall.  Richmond has the hottest luxury housing market in the country. Austin is the only major market where luxury home values have declined throughout the past year.  SEATTLE, July 31, 2024 /PRNewswire/ -- Luxury home value growth, which has consis ...

The number of cities with 'million-dollar' starter homes has nearly tripled since 2019 The number of cities where a starter home is worth $1 million or more has grown from 84 five years ago to 237 today. Nearly half of these cities with "million-dollar" starter homes are in California. The typical starter home nationwide is worth less than $200,000. SEATTLE, July 25, 2024 /PRNewswire/ -- A million-dollar price tag no longer means lavish and luxurious living. In more than 200 U.S. cities, buyers will find a ...