Zillow Group, Inc. (NASDAQ: ZG) (NASDAQ: Z) reported Q1 revenue for the quarter came in at $454.1 million versus the consensus estimate of $432.99 million.

“We delivered strong first quarter results that met or exceeded our own expectations in all segments as our plan to streamline the real estate transaction comes together,” said Rich Barton, co-founder and CEO of Zillow Group, Inc. “Zillow Offers’ incredible consumer demand and rapid growth gives us confidence we’re in the early stages of something important. I’m quite pleased with our whole team’s execution and overall consumer and industry response to the investments we’re making in Premier Agent, Zillow Offers, and now Zillow Home Loans. The Zillow Group portfolio is more than just the sum of our business segments. We are aligning our entire portfolio to deliver a seamless, integrated transaction experience to help today’s on-demand consumers buy, sell, rent and finance homes faster and easier than ever before.”

Recent highlights include:

• Consolidated Q1 2019 revenue increased 51% year over year to $454.1 million, exceeding the company’s outlook, primarily driven by outperformance in the Homes segment due to strong demand for Zillow Offers™.
• Zillow sold 414 homes in Q1, an increase of nearly 200% over Q4, contributing to $128.5 million in Homes segment revenue. The company purchased 898 homes, up 80% sequentially.
• Accelerating Zillow Offers market expansion with 6 new planned markets, announced separately today, bringing the total planned markets to 20 by the end of the first quarter of 2020.
• Internet, Media & Technology segment reported $298.3 million in revenue in Q1, up 6% year over year, as the Premier Agent® marketplace is stabilizing and churn is returning to historical levels.
• Q1 Mortgages segment revenue of $27.4 million was up 44% year over year.
• Launched Zillow Home Loans, a critical step toward integrating a digital payments platform for mortgage financing to Zillow Offers consumers and other borrowers.
• Reached more than 181 million average monthly unique users and a record 2 billion visits across Zillow Group’s mobile apps and websites during Q1.

Business Outlook – Second Quarter and Full Year 2019

Zillow Group’s Q2 2019 consolidated revenue guidance range implies approximately 79% growth year over year at the mid point, driven primarily by the strong performance of the Homes segment.

In Q2, we expect Homes segment revenue to be $230 to $245 million, reflecting anticipated sequential quarter-over-quarter growth of 85% at the mid point. For Q2, we expect Homes segment Adjusted EBITDA to be a loss of $49 to $55 million as we continue to invest in scaling the business.* We are not providing full year Homes segment revenue and Adjusted EBITDA outlook since we are in the early stages of Zillow Offers and quickly scaling the business, which make longer term forecasts challenging.

We are raising the low end of our IMT and Premier Agent full year 2019 revenue guidance ranges to reflect our confidence in the anticipated continued stabilization of the Premier Agent marketplace. We raised our full year IMT segment Adjusted EBITDA guidancerange to $280 to $300 million from $241 to $266 million to reflect updates to the expected timing of recognition of certain headcount-related expenses and a reduction in our estimated legal liabilities.*

We are maintaining our full-year 2019 Mortgages segment revenue and Adjusted EBITDA outlook as we are in the early stages of transitioning our mortgage loan origination business.

GUIDANCE:

Zillow Group, Inc. sees Q2 2019 revenue of $568-594 million, versus the consensus of $502.75 million.

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