Zillow Group (Z) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $572 million, up 13% year-over-year, driven by growth in Residential, Rentals, and Mortgages segments, and exceeded guidance despite a challenging real estate environment.

• Net loss narrowed to $17 million (3% of revenue), down from $35 million in Q2 2023; Adjusted EBITDA rose to $134 million, with margin expanding to 23%.

• Leadership transition: Jeremy Wacksman promoted to CEO and Board member, Rich Barton becomes Co-Executive Chair.

• Continued execution on growth strategy, focusing on digitizing and integrating home buying, selling, financing, and renting.

• Outperformed the residential real estate industry for the eighth consecutive quarter.

Financial highlights

• Q2 revenue was $572 million, up 13% year-over-year; net loss was $17 million; Adjusted EBITDA was $134 million (23% margin); gross profit was $442 million (77% margin).

• Residential revenue grew 8% to $409 million; Rentals revenue up 29% to $117 million; Mortgages revenue up 42% to $34 million.

• Multifamily revenue up 44% year-over-year, with 44,000 properties listed at quarter end.

• Purchase mortgage origination volume grew 125% year-over-year to $756 million.

• Share repurchases totaled $301 million in the first half of 2024; $381 million remains authorized.

Outlook and guidance

• Q3 total revenue expected between $545 million and $560 million, implying 11% year-over-year growth at midpoint.

• Residential revenue for Q3 guided to $375–$385 million, reflecting normal seasonality and continued product contributions.

• Rentals revenue expected to grow in the mid-20% range year-over-year in Q3; multifamily revenue to outpace overall rentals.

• EBITDA for Q3 expected between $95 million and $110 million (19% margin at midpoint); full-year 2024 guidance for double-digit revenue growth and modest EBITDA margin expansion.

• Management expects continued investment in growth pillars and increased sales and marketing expenses in Q3.