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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.”