Zillow Group Reports Second-Quarter 2024 Financial Results
Complete financial results for the second quarter and outlook for the third quarter of 2024 can be found in our shareholder letter on the Investor Relations section of
"Zillow outperformed the residential real estate industry for the eighth consecutive quarter, delivering better-than-expected revenue across the business," said
Recent highlights include:
-
Zillow Group's second-quarter results exceeded the company's outlook for revenue and Adjusted EBITDA. - Q2 revenue was
$572 million , up 13% year over year and above the midpoint of the company's outlook range by$39 million .- Residential revenue was up 8% year over year in Q2 to
$409 million , outperforming both the residential real estate industry total transaction value1 growth of 3% and the company's outlook. - Rentals revenue of
$117 million increased 29% year over year, primarily driven by multifamily revenue growing 44% year over year in Q2. - Mortgages revenue of
$34 million increased 42% year over year, due primarily to a 125% year-over-year increase in purchase loan origination volume to$756 million in Q2. The increase was partially offset by a decrease in mortgage marketplace revenue.
- Residential revenue was up 8% year over year in Q2 to
- On a GAAP basis, net loss was
$17 million , or 3% of total revenue, in Q2. - Q2 Adjusted EBITDA was
$134 million , or 23% of total revenue,$41 million above the midpoint of the company's outlook range, driven primarily by higher-than-expected Residential revenue. - Cash and investments at the end of Q2 were
$2.6 billion , down from$2.9 billion at the end of Q1 2024. - Traffic to
Zillow Group's mobile apps and sites in Q2 was 231 million average monthly unique users, flat year over year. Visits during Q2 were 2.5 billion, up 4% year over year. - Today, we announced
Jeremy Wacksman has been promoted to chief executive officer ofZillow Group and appointed to the company's Board of Directors (the "Board"). Co-founderRich Barton will remain on the Board and become its co-executive chairman, alongside co-founder, President ofZillow Group and current Executive ChairmanLloyd Frink .
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1 National Association of REALTORS® existing homes sold during Q2 2024 multiplied by the average selling price per home for Q2 2024, compared with the same period in 2023. |
Second Quarter 2024 Financial Highlights
The following table sets forth
|
Three Months Ended
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|
2023 to 2024
|
|
Six Months Ended
|
|
2023 to 2024
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||||
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
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||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Residential |
$ 409 |
|
$ 380 |
|
8 % |
|
$ 802 |
|
$ 741 |
|
8 % |
Rentals |
117 |
|
91 |
|
29 % |
|
214 |
|
165 |
|
30 % |
Mortgages |
34 |
|
24 |
|
42 % |
|
65 |
|
50 |
|
30 % |
Other |
12 |
|
11 |
|
9 % |
|
20 |
|
19 |
|
5 % |
Total revenue |
$ 572 |
|
$ 506 |
|
13 % |
|
$ 1,101 |
|
$ 975 |
|
13 % |
Other Financial Data: |
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
$ 442 |
|
$ 402 |
|
|
|
$ 848 |
|
$ 779 |
|
|
Net loss |
$ (17) |
|
$ (35) |
|
|
|
$ (40) |
|
$ (57) |
|
|
Adjusted EBITDA (1) |
$ 134 |
|
$ 111 |
|
|
|
$ 259 |
|
$ 215 |
|
|
Percentage of Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
77 % |
|
79 % |
|
|
|
77 % |
|
80 % |
|
|
Net loss |
(3) % |
|
(7) % |
|
|
|
(4) % |
|
(6) % |
|
|
Adjusted EBITDA (1) |
23 % |
|
22 % |
|
|
|
24 % |
|
22 % |
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|
|
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(1) Adjusted EBITDA is a non-GAAP financial measure; it is not calculated or presented in accordance with to net loss for each of the periods presented. |
Conference Call and Webcast Information
The company will host a live webcast to discuss these results today at
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties, including, without limitation, statements regarding the future performance and operation of our business, and our business strategies and ability to translate such strategies into financial performance. Statements containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "predict," "will," "projections," "continue," "estimate," "outlook," "guidance," "would," "could," "strive," or similar expressions constitute forward-looking statements. Forward-looking statements are made based on assumptions as of
Factors that may contribute to such differences include, but are not limited to: the current and future health and stability of the economy and
The foregoing list of risks and uncertainties is illustrative but not exhaustive. For more information about potential factors that could affect
About
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Please visit https://investors.zillowgroup.com, www.zillowgroup.com/news, and www.x.com/zillowgroup, where
The
(ZFIN)
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, a non-GAAP financial measure. We have provided a reconciliation below of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure. We have not provided a quantitative reconciliation of forecasted GAAP net income (loss) to forecasted Adjusted EBITDA within this press release because we are unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include but are not limited to: income taxes that are directly impacted by unpredictable fluctuations in the market price of the company's capital stock; depreciation and amortization from new acquisitions; impairments of assets; gains or losses on extinguishment of debt; and acquisition-related costs. These items, which could materially affect the computation of forward-looking GAAP net income (loss), are inherently uncertain and depend on various factors, many of which are outside of our control. We have not provided a reconciliation of forecasted Adjusted EBITDA margin to net income (loss) margin, the most directly comparable GAAP financial measure, for the same reasons.
Adjusted EBITDA is a key metric used by our management and board of directors to measure operating performance and trends and to prepare and approve our annual budget. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis.
Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
- Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA does not consider the potentially dilutive impact of share-based compensation;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditures or contractual commitments;
- Adjusted EBITDA does not reflect impairment and restructuring costs;
- Adjusted EBITDA does not reflect acquisition-related costs;
- Adjusted EBITDA does not reflect loss on extinguishment of debt;
- Adjusted EBITDA does not reflect interest expense or other income, net;
- Adjusted EBITDA does not reflect income taxes; and
- Other companies, including companies in our own industry, may calculate Adjusted EBITDA differently from the way we do, limiting its usefulness as a comparative measure.
Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash-flow metrics, net loss and our other GAAP results.
Adjusted EBITDA
The following table presents a reconciliation of Adjusted EBITDA to net loss for each of the periods presented (in millions, unaudited):
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Three Months Ended
|
|
Six Months Ended
|
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Reconciliation of Adjusted EBITDA to Net Loss: |
|
|
|
|
|
|
|
Net loss |
$ (17) |
|
$ (35) |
|
$ (40) |
|
$ (57) |
Income taxes |
2 |
|
1 |
|
4 |
|
1 |
Other income, net |
(34) |
|
(42) |
|
(67) |
|
(74) |
Depreciation and amortization |
59 |
|
45 |
|
115 |
|
85 |
Share-based compensation |
113 |
|
130 |
|
221 |
|
233 |
Impairment and restructuring costs |
— |
|
2 |
|
6 |
|
8 |
Acquisition-related costs |
— |
|
1 |
|
— |
|
1 |
Loss on extinguishment of debt |
1 |
|
— |
|
1 |
|
— |
Interest expense |
10 |
|
9 |
|
19 |
|
18 |
Adjusted EBITDA |
$ 134 |
|
$ 111 |
|
$ 259 |
|
$ 215 |
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