Group 1 - Zillow Group reported $598 million in revenue for Q1 2025, a year-over-year increase of 13% [1] - The EPS for the same period was $0.41, compared to $0.36 a year ago, indicating growth [1] - The revenue exceeded the Zacks Consensus Estimate of $588.55 million by 1.61%, while the EPS fell short of the consensus estimate of $0.43 by 4.65% [1] Group 2 - Key metrics indicate that Zillow's shares returned +10.6% over the past month, matching the S&P 500 composite's performance [3] - Zillow currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market [3] Group 3 - Average monthly unique users for Zillow's mobile applications and websites reached 227 million, surpassing the estimated 224.67 million [4] - Total visits to mobile applications and websites were 2.35 billion, exceeding the average estimate of 2.33 billion [4] - Residential revenue was reported at $417 million, slightly above the estimated $414.66 million, reflecting a year-over-year change of +6.1% [4] - Other revenue reached $11 million, significantly higher than the estimated $8.45 million, marking a +37.5% year-over-year change [4] - Mortgage revenue was $41 million, above the estimated $38.83 million, with a year-over-year increase of +32.3% [4] - Rental revenue was reported at $129 million, exceeding the estimated $126.10 million, representing a +33% year-over-year change [4]

Financial Data and Key Metrics Changes - Zillow reported total Q1 revenue of $598 million, up 13% year over year, exceeding expectations [11][27] - Adjusted EBITDA for Q1 was $153 million, with an EBITDA margin of 26%, a 200 basis point improvement year over year [12][28] - The company achieved positive GAAP net income of $8 million, representing 1% of revenue [28][26] Business Line Data and Key Metrics Changes - For Sale category revenue was $458 million, up 8% year over year, with residential revenue growing 6% and mortgages revenue increasing 32% [11][30] - Rentals revenue reached an all-time high of $129 million, up 33% year over year, driven primarily by multifamily revenue growth of 47% [19][30] Market Data and Key Metrics Changes - Zillow had 227 million average monthly unique users in Q1, maintaining a significant lead in the residential real estate market [9] - The company reported 37 million unique visitors to Zillow Rentals in March, solidifying its position as renters' number one preference [21] Company Strategy and Development Direction - Zillow is focused on executing its differentiated housing super app strategy, aiming to monetize a larger share of the total addressable market [7][12] - The company is expanding its enhanced markets, with a goal of increasing connections within these markets to over 35% by the end of the year [13][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 goals of low to mid-teens revenue growth and continued EBITDA margin expansion despite macroeconomic challenges [7][34] - The company anticipates accelerating rentals revenue growth, projecting a 40% increase for the full year 2025 [35][36] Other Important Information - Zillow's cash and investments at the end of Q1 were $1.6 billion, down from $1.9 billion, primarily due to share repurchases [32] - The board approved an additional $1 billion share repurchase authorization, reflecting confidence in the company's financial position [34] Q&A Session Summary Question: What is driving the accelerating growth in the rentals business? - Management highlighted the execution of their strategy to build a comprehensive marketplace, resulting in increased inventory and brand preference among renters [43][45] Question: How should growth be assessed relative to the market? - Management noted that Zillow's growth outperformed the market, particularly in the residential segment, despite macroeconomic noise [50][52] Question: What are the mechanics of the partnership with Redfin? - Management clarified that there was no transfer of contracts; Zillow had to win the business, which resulted in significant property count growth [70][72] Question: What is the industry reaction to the new listing access standards? - Management reported positive industry support for the standards, which promote transparency in the real estate market [96] Question: What factors contributed to the lower than expected EBITDA expenses in Q1? - Management indicated slower hiring and lower marketing expenses than anticipated were the primary reasons for the variance [98]