Zillow Group (NASDAQ: Z) shares popped by 12% on Friday after reporting its third quarter financial results on Thursday. The Company edged out analysts’ expectations for both earnings and revenue.
For the quarter, Zillow reported a net loss of USD 64.6 Million or USD 0.31 per share on revenue of USD 745.2 Million. FactSet analysts expected earnings loss of USD 0.43 per share on revenue of USD 718 Million.
Zillow reported that total revenue increased by 117% year-over-year, driven by its stronger homes segment. The homes segment reported revenues of USD 384.62 Million, representing a 3,391% growth year-over-year.
Zillow’s IMT segment reported total revenues of USD 335.29 Million, increasing by 7% year-over-year. The segment was primarily driven by increases in its rentals and other units. Rentals revenue was USD 44.43 Million, increasing by 19% year-over-year, while its others unit reported revenues of USD 50.16 Million, representing a 15% increase.
The Company’s premier agent segment reported revenues of USD 420.69 Million, increasing by 3% year-over-year.
Mortgages segment revenue was USD 25.29 Million at the end of the quarter, increasing by 37% year-over-year.
While revenues increase exponentially during the quarter, Zillow’s net losses widened. In the same quarter a year ago, Zillow reported net losses of USD 492 Million compared to USD 64.64 Million at the end of the third quarter.
The net losses were primarily driven by Zillow’s homes segment, which witnessed its net losses widen from USD 16.42 Million in the third quarter a year ago to USD 87.87 Million.
“Our third quarter results were strong, demonstrating that Zillow Group’s business model expansion to mechanize real estate transactions is gaining traction as consumer demand reveals people want a better, simpler way to buy, sell, rent and finance homes,” said Zillow Co-Founder and Chief Executive Officer Rich Barton.
“Our core Premier Agent business is strong, with record revenue that exceeded our outlook. The profitability of our Premier Agent business is foundational to Zillow’s success and is the reason we are able to expand Zillow Offers with such confidence and speed. This quarter’s results illuminate how Zillow Group is in the most favorable position to lead Real Estate 2.0.” concluded Barton.
Following Zillow’s financial results, the stock is now up 19.06% this year.