Zillow earnings rebounded to positive territory from the year-ago quarter’s loss.
In the second quarter, the online real estate service company’s earnings came in at 4 cents a share, compared to a loss of -38 cents a share in the year-ago period. After adjusting for stock-based compensation and other costs, the earnings were 44 cents a share, vs. an adjusted loss of -17 cents a share in the year-ago quarter. Analysts polled by FactSet expected adjusted earnings of 24 cents a share.
Revenue surged +70% year-over-year to $1.31 billion in the quarter, surpassing analysts’ estimate of $1.28 billion. Zillow’s revenue from the Internet, Media & Technology segment came in at $476.1 million (vs. $280 million a year ago, and compared to analysts’ expected $467 million); revenue from for its core Premier Agent offering for professionals was $348.8 million (vs. $192 million a year-ago, and compared to analysts’ expected $345 million).
The company’s revenue from its Homes segment was $777.1 million (vs. $454.3 million in the same quarter last year, and $751 million expected by analysts polled by Factset). The Mortgages segment had sales of $56.7 million (vs. $33.8 million, and $62 million expected by analysts).
For the third quarter, Zillow has projected revenue in the range of $1.93 billion to $2.05 billion, well above analysts' estimate of $1.45 billion (based on FactSet poll). The biggest contributor to the difference between analysts’ estimates and Zillow’s forecast was expected growth in Zillow Offers: Zillow’s forecast for the Home business far exceeded analysts’ $900 million expectation for the segment.