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Zillow Group: Revenue up 28% year-on-year to $266.9 million

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Seattle-based Zillow Group, Inc. (NASDAQ:Z) (NASDAQ:ZG), announced its consolidated financial results for the three months ended June 30, 2017.

Zillow Group CEO Spencer Rascoff stated that the Group finished the first half of 2017 with another quarter of record revenue and traffic. "Our growing consumer audience is increasingly engaged and we achieved revenue growth across all of our emerging marketplaces. As we continue to expand our suite of marketing and technology solutions to help our industry partners achieve long-term success, we're excited about the opportunities in front of us," said Rascoff.

In the Second Quarter of 2017, Zillow Group's revenue increased 28% to a record $266.9 million from $208.4 million in the second quarter of 2016.

Marketplace Revenue went up 30% to $248.6 million from $191.6 million in the second quarter of 2016.

Premier Agent Revenue increased 29% to $189.7 million from $147.1 million in the second quarter of 2016.

Other Real Estate Revenue(1) increased 45% to $37.9 million from $26.1 million in the second quarter of 2016.

Mortgages Revenue increased 14% to $20.9 million from $18.4 million in the second quarter of 2016.

Display Revenue increased 9% to $18.3 million from $16.8 million in the second quarter of 2016.

GAAP net loss was $21.8 million, or (8)% of Revenue, in the second quarter of 2017, compared to GAAP net loss of $156.1 million, or (75)% of Revenue, in the second quarter of 2016. GAAP net loss in the second quarter of 2016 includes the impact of a $130.0 million litigation settlement.

Adjusted EBITDA was $39.7 million, or 15% of Revenue, in the second quarter of 2017, which was an increase from $(101.3) million, or (49)% of Revenue, in the second quarter of 2016. Adjusted EBITDA in the second quarter of 2016 includes the impact of a $130.0 million litigation settlement.

1 Other Real Estate Revenue primarily includes revenue generated by Zillow Group Rentals, New Construction, as well as revenue from the sale of various other advertising and business software solutions and services for real estate professionals.

Second Quarter 2017 Operating and Business Highlights

More than 178 million average monthly unique users visited Zillow Group brands' mobile apps and websites, an increase of 6% year-over-year. Zillow Group brands' mobile apps and websites reached an all-time high of more than 182 million unique users in May 2017, an increase of more than 10 million unique users from the same period last year.

Visits to Zillow Group brands' mobile apps and websites Zillow, Trulia, StreetEasy (included as of March 2017) and RealEstate.com (included as of June 2017) increased 17% year-over-year to nearly 1.7 billion. Premier Agent revenue per visit increased 10% to $0.113 from $0.103 in the same period last year.

The number of Premier Agent accounts spending more than $5,000 per month grew by 107% year-over-year and increased 92% on a total dollar basis.

Total sales to Premier Agents who have been customers for more than one year increased 49% year-over-year.

Sales to existing Premier Agents accounted for 52% of total bookings.

Business Outlook - Third Quarter and Full Year 2017

The following table presents Zillow Group's business outlook for the periods presented:

Three Months Ending Year Ending
Zillow Group Outlook as of August 8, 2017 September 30, 2017 December 31, 2017
(in millions)
Revenue $273 to $278 $1,055 to $1,065
Premier Agent revenue $196 to $198 $760 to $765
Other real estate revenue $40 to $41 $150 to $152
Mortgages revenue $20 to $21 $80 to $82
Display revenue $17 to $18 $65 to $66
Operating expenses $261 to $266 ***
Net income (loss) $2.25 to $7.25 $(25) to $(15)
Adjusted EBITDA (1) $64 to $69 $220 to $230
Depreciation and amortization $26 to $28 $107 to $112
Share-based compensation expense $28 to $30 $110 to $115
Capital expenditures *** $55 to $57
Weighted average shares outstanding — basic 187.0 to 189.0 185.5 to 187.5
Weighted average shares outstanding — diluted 196.5 to 198.5 195.0 to 197.0
*** Outlook not provided

 

For further information regarding Zillow Group's company information and financial information visit Zillow Group's investment website, blog or Twitter page.

SOURCE Zillow Group, Inc.
Edited by G. Davila

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