On August 7, 2024, Zillow Group Inc (ZG, Financial) released its 8-K filing for the second quarter of 2024, showcasing a robust performance that exceeded analyst expectations. Zillow Group Inc is an Internet-based real estate company that offers its customers an on-demand experience for selling, buying, renting, or financing with transparency and ease. The group works with real estate agents, brokers, builders, property managers, and landlords to pair technology with top-notch service. The group has brands such as Zillow, Trulia, StreetEasy, Hotpads, Zillow Rentals, Zillow Home Loans, ShowingTime, Follow Up Boss, Aryeo, and others.
Performance Overview
Zillow Group Inc reported Q2 2024 revenue of $572 million, a 13% increase year-over-year, surpassing the analyst estimate of $538.25 million. The company also reported a net loss of $17 million, which is an improvement from the $35 million net loss in the same period last year. Adjusted EBITDA came in at $134 million, representing 23% of total revenue and exceeding the company's outlook by $41 million.
Key Financial Achievements
Several segments contributed to Zillow Group Inc's strong performance:
- Residential revenue increased by 8% year-over-year to $409 million, outperforming the residential real estate industry’s total transaction value growth of 3%.
- Rentals revenue surged by 29% year-over-year to $117 million, driven primarily by a 44% increase in multifamily revenue.
- Mortgages revenue grew by 42% year-over-year to $34 million, largely due to a 125% increase in purchase loan origination volume.
Financial Metrics and Analysis
Important financial metrics from the earnings report include:
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total Revenue | $572 million | $506 million | 13% |
| Gross Profit | $442 million | $402 million | 10% |
| Net Loss | $(17) million | $(35) million | 51% |
| Adjusted EBITDA | $134 million | $111 million | 21% |
These metrics are crucial as they highlight Zillow Group Inc's ability to grow its revenue streams while managing costs effectively. The improvement in net loss and the increase in Adjusted EBITDA indicate better operational efficiency and profitability potential.
Commentary and Future Outlook
"Zillow outperformed the residential real estate industry for the eighth consecutive quarter, delivering better-than-expected revenue across the business," said Zillow Group CEO Jeremy Wacksman. "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."
Despite the net loss, Zillow Group Inc's performance in Q2 2024 demonstrates its resilience and growth potential in the interactive media and real estate industry. The company's diversified revenue streams and strong operational execution position it well for future profitability and market expansion.
For more detailed financial results and outlook, visit the Investor Relations section of Zillow Group’s website.
Explore the complete 8-K earnings release (here) from Zillow Group Inc for further details.
