Zillow Group Inc (NASDAQ: Z)
Zillow, the online marketplace dedicated to helping home buyers and sellers find and share vital real estate information, reported lower than expected 2018 third-quarter results late Tuesday.
The company also issued a downbeat revenue forecast for the full year, sending its stock down $7.45, or 18.28% to 33.30 in post-market trade. Shares of the company closed the regular trading session at $40.75.
Z Earnings & Outlook
The company posted third-quarter sales of $343.1 million, up 22% from $282 million in the year-ago period and in line with its forecast. Zillow attributed the rise to growth in its Premier Agent, New Construction and Rentals marketplaces, as well as contribution from its Homes segment during its first quarter.
Zillow had a net loss of nearly $0.5 million, or less than a penny per share. Analysts had called for expected a loss of a penny per share on sales of $344 million. The company had $1.6 billion in investments and cash in its balance sheet at the end of the quarter.
Cash from operating activities increased by $102.5 million, positioning the company well to fund its next stage of growth. For the full year, the company views revenue in the range of $1.307 billion to 1.324 billion, while analysts expect revenue of $1.34 billion.
Zillow CEO Comments
“Zillow Group is undergoing a period of transformational innovation, including our new Premier Agent lead validation and distribution process, Zillow Offers, and now mortgage origination, which together will provide more of an end-to-end real estate transaction experience for consumers,” said Zillow Group CEO Spencer Rascoff.
“We believe that these changes will have positive long-term effects for consumers, our industry partners and our business. It will take time for advertisers to adapt to these changes, but we are confident that they set us up for long-term growth.”
Zillow Group, Inc. Company Profile
Zillow Group, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. The company offers a portfolio of brands and products to enable consumers find information about homes and connect with local professionals. Its brands focus on various stages of the home lifecycle, including renting, buying, selling, and financing.
The company’s portfolio of consumer brands comprises real estate and rental marketplaces, such as Zillow, Trulia, StreetEasy, HotPads, Naked Apartments, RealEstate.com, and OutEast.com. It also provides a suite of marketing software and technology solutions; and owns and operates various business brands for real estate, rental, and mortgage professionals comprising Mortech, dotloop, Bridge Interactive, and New Home Feed.
In addition, the company offers advertising services. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington. – Yahoo Finance