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Zillow (NASDAQ:Z) shares fell more than 8% after-hours despite the company’s reported Q2 results, with revenue of $1 billion coming in better than the consensus estimate of $984.81 million.
Revenue for the Internet, Media & Technology (IMT) segment was $475 million, flat year-over-year, and within the company’s outlook range of $472 million to $492 million. Premier Agent revenue was $333 million, down 5% year-over-year, impacted by macro housing market factors, including interest rate and home price increases, as well as tight inventory levels. Rentals revenue was $71 million, down 3% year-over-year.
Homes segment revenue was $505 million, exceeding the company’s outlook as the wind-down of iBuying operations continued to progress faster than anticipated.
Mortgages segment revenue was $29 million, slightly below the low end of the company’s outlook range, as rising interest rates impacted demand more than expected.
“Zillow stands on solid ground and is well-positioned for long-term growth, with a healthy balance sheet, positive operating cash flow, and a trusted household brand,” said Zillow Group (NASDAQ:ZG) CEO and co-founder Rich Barton. “Despite the challenges of the macroeconomic environment, we’re making strides in key growth areas — including financing, touring and seller solutions — that get us closer to our vision of an integrated digital experience to help customers with all their real estate needs in our ‘housing super app.'”
The company provided its Q3 guidance, expecting revenue to be $446 million at the midpoint.
