Zillow Group Inc Class C ( (Z) ) has released its Q3 earnings. Here is a breakdown of the information Zillow Group Inc Class C presented to its investors.
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Zillow Group Inc Class C, a prominent player in the residential real estate sector, harnesses technology to transform and digitize real estate transactions for consumers, agents, and industry professionals. In its latest earnings report, Zillow showcased robust performance, with a 17% increase in total revenue to $581 million in Q3 2024, outpacing the broader residential real estate market. Residential revenue rose 12% year-over-year to $405 million, bolstered by enhanced customer conversion rates. Rentals continued their upward trend with a 24% rise in revenue, driven by a 38% increase in multifamily revenue. Mortgages also saw a significant 63% growth in revenue, reflecting an 80% increase in purchase loan origination volume.
Zillow’s strategic advancements include the expansion of its Enhanced Markets initiative, which has already doubled share gains in initial locations since 2023. The company has introduced technological upgrades, such as improvements to its AI-powered search and climate risk data, which enhance customer engagement and streamline transactions. Additionally, Zillow’s acquisition of Follow Up Boss and integration of Zillow Home Loans into its ecosystem have bolstered its service offerings, improving connection and conversion rates.
Despite reporting a GAAP net loss of $20 million in Q3, Zillow’s Adjusted EBITDA reached $127 million, surpassing expectations. With cash and investments totaling $2.2 billion, Zillow remains financially solid, despite a slight decrease from the previous quarter due to convertible note maturities. The company anticipates continued revenue growth, projecting a 12% year-over-year increase for Q4 2024, with significant growth expected in Rentals and Mortgages revenues.
Looking forward, Zillow aims to capture a more substantial share of the $30 billion addressable market in residential real estate by the end of 2025. The company plans to continue expanding its Enhanced Markets and delivering innovative solutions to enhance the real estate transaction experience, promising growth for both customers and shareholders.
