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Earnings Call Highlights

  • GAAP EPS of $.17, marking the first profitable quarter in 3 years
  • Non-GAAP EPS of $.39, beating consensus by 225% ($.12)
  • $656.6M Q3 reported revenue is 14.79% higher than $572M analyst expectation, but still down YoY
  • Reported EBITDA of $152.18M, beating estimates by 105%
  • Gross margin reported at 67.32%, in line with estimates
  • Housing business brought in $299M, up 24%
  • Ended Q3 with 665 homes in inventory, up from 440 in Q2
  • Apps and websites drew an average 236 million unique users this quarter, up 21% YoY
  • Management saw existing home sales climb to the highest level since 2006
  • Nearly two-thirds of Zillow Offers home purchases are closed digitally with a remote notary
  • Jacksonville, Florida was added to the Zillow Offers market which includes 25 other areas
  • “Zillow 2.0” will build upon existing relationships and provide adjacent services in the mortgages and Title and escrow areas 

Management Guidance

  • Q4 guidance revenue set between $709M to $748M, versus an initial market estimate of $682.9M
  • Adjusted EBITDA guidance set for $96.62M

Quotes from Rich Barton, Co-founder and CEO: 

  • “Instead of stretching and wrapping our lives to fit around where we work, we have been forced to find a way to wrap our work to fit around our lives.”
  • “The audience we built over the past 15 years is nearly double the size of our closest competitor and grew more than 30% in Q3.”