Zillow Group, Inc., which is transforming how people buy, sell, rent, and finance homes, today announced its consolidated financial results for the three months ended June 30, 2019. The company reported 84% year-over-year growth in total consolidated quarterly revenue, driven by demand for Zillow Offers as the company continues to accelerate growth into new markets.
Complete financial results and outlook can be found in the investor relations section of Zillow Group’s website.
“Our second quarter results reflect the momentum we are seeing across our businesses,” said Rich Barton, Co-Founder and CEO of Zillow Group, Inc. “The demand signal for Zillow Offers is incredibly impressive as seen in the annualized revenue run rate going from zero to $1 billion in just a year1. Our Premier Agent business is performing well, and our partnerships with the highest performing and most client-focused agents position us well to deliver a truly seamless transaction experience for home buyers and sellers. We’re in the early stages of a bold expansion of our company that opens up exciting opportunities for our customers, partners, shareholders and employees. We are uniquely advantaged by our brand awareness, audience size, technology, data science, industry partnerships, and operational know-how and are well on our way to rewire real estate.”
Recent highlights include:
1 Homes segment annualized revenue run rate is calculated by multiplying Homes segment revenue for the quarter by four.
The following table sets forth Zillow Group’s financial highlights for the periods presented (in thousands, unaudited):
| Three Months Ended | 2018 to 2019 % Change |
Six Months Ended | 2018 to 2019 % Change |
||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
| Revenue: | |||||||||||||||||||||
| IMT segment: | |||||||||||||||||||||
| Premier Agent | $ | 231,961 | $ | 230,885 | — | % | $ | 449,696 | $ | 444,617 | 1 | % | |||||||||
| Rentals | 42,670 | 33,288 | 28 | % | 80,508 | 62,351 | 29 | % | |||||||||||||
| Other (1) | 49,038 | 41,768 | 17 | % | 91,737 | 79,829 | 15 | % | |||||||||||||
| Total IMT segment revenue | 323,669 | 305,941 | 6 | % | 621,941 | 586,797 | 6 | % | |||||||||||||
| Homes segment | 248,924 | - | N/A | 377,396 | - | N/A | |||||||||||||||
| Mortgages segment | 26,985 | 19,305 | 40 | % | 54,345 | 38,328 | 42 | % | |||||||||||||
| Total revenue | $ | 599,578 | $ | 325,246 | 84 | % | $ | 1,053,682 | $ | 625,125 | 69 | % | |||||||||
| Other Financial Data: | |||||||||||||||||||||
| Segment income (loss) before income taxes: | |||||||||||||||||||||
| IMT segment | $ | 13,238 | $ | 110 | $ | 1,786 | $ | (6,506 | ) | ||||||||||||
| Homes segment | $ | (71,122 | ) | $ | (10,061 | ) | $ | (116,327 | ) | $ | (14,451 | ) | |||||||||
| Mortgages segment | $ | (10,438 | ) | $ | 356 | $ | (20,054 | ) | $ | (2 | ) | ||||||||||
| Net loss | $ | (71,977 | ) | $ | (3,093 | ) | $ | (139,502 | ) | $ | (21,684 | ) | |||||||||
| Adjusted EBITDA (2): | |||||||||||||||||||||
| IMT segment | $ | 64,055 | $ | 59,718 | $ | 125,102 | $ | 106,401 | |||||||||||||
| Homes segment | (56,452 | ) | (8,352 | ) | (90,976 | ) | (11,865 | ) | |||||||||||||
| Mortgages segment | (5,306 | ) | 4,634 | (7,907 | ) | 7,774 | |||||||||||||||
| Total Adjusted EBITDA | $ | 2,297 | $ | 56,000 | $ | 26,219 | $ | 102,310 | |||||||||||||
| Percentage of Revenue: | |||||||||||||||||||||
| Segment income (loss) before income taxes: | |||||||||||||||||||||
| IMT segment | 4 | % | — | % | — | % | (1 | )% | |||||||||||||
| Homes segment | (29 | )% | N/A | (31 | )% | N/A | |||||||||||||||
| Mortgages segment | (39 | )% | 2 | % | (37 | )% | — | % | |||||||||||||
| Net loss | (12 | )% | (1 | )% | (13 | )% | (3 | )% | |||||||||||||
| Adjusted EBITDA: | |||||||||||||||||||||
| IMT segment | 20 | % | 20 | % | 20 | % | 18 | % | |||||||||||||
| Homes segment | (23 | )% | N/A | (24 | )% | N/A | |||||||||||||||
| Mortgages segment | (20 | )% | 24 | % | (15 | )% | 20 | % | |||||||||||||
| Total Adjusted EBITDA | — | % | 17 | % | 2 | % | 16 | % | |||||||||||||
| (1) Other revenue primarily includes revenue generated by new construction and display, as well as revenue from the sale of various other marketing and business products and services to real estate professionals. | |||||||||||||||||||||
| (2) Adjusted EBITDA is a non-GAAP financial measure; it is not calculated or presented in accordance with U.S. generally accepted accounting principles, or GAAP. See below for more information regarding our presentation of Adjusted EBITDA, including a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure, which is net loss on a consolidated basis and income (loss) before income taxes for each segment, for each of the periods presented. | |||||||||||||||||||||
SOURCE Zillow Group, Inc.
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