$Z (+3.66%) | Zillow Q3 Earnings Highlights:
🔹 EPS: $0.35 (Est. $0.26) 🟢
🔹 Revenue: $581M (Est. $555.36M) 🟢; UP +17% YoY
🔹 Adjusted EBITDA: $127M (Est. $108M) 🟢
Q4 Guidance
🔹 Revenue: $525M - $540M (Est. $532.4M) 🟢
🔹 Adj EBITDA: $90M - $105M (Est: $102M)
Segment Revenue
🔹 Residential Services: $405M; UP +12% YoY
🔹 Rentals: $123M; UP +24% YoY
🔹 Mortgages: $39M; UP +63% YoY
🔹 Other: $14M; UP +27% YoY
Other Financial Metrics
🔹 Gross Profit Margin: 76%, slightly down from 78% in Q3 2023
🔹 Cash and Investments: $2.2B (down from $2.6B in Q2 2024)
🔹 Purchase Loan Origination Volume: $812M; UP +80% YoY
Operational Metrics
🔹 Average Monthly Unique Users: 233M; UP +1% YoY
🔹 Total Visits: 2.4B; UP +3% YoY
Business Highlights
🔸 Strong growth in rental segment, offsetting challenges in residential sales due to higher interest rates
🔸 Multifamily revenue increased by +38% YoY
🔸 Continued improvement in agent conversion rates
🔸 Investments focused on building an integrated transaction experience for real estate consumers
CEO Commentary
🔸 "Zillow had another strong quarter, with 17% revenue growth. We are focused on executing our strategy to support renters, buyers, sellers, agents, and the broader residential real estate industry. We are building tech solutions that deliver the transaction experience consumers demand." — Jeremy Wacksman, CEO
Industry Context
🔸 The real estate sector remains challenged by high interest rates, legal disputes regarding agent commissions, and evolving listing distribution rules.
