Zillow (NASDAQ: Z) (NASDAQ: ZG) reported Q2 revenue for the quarter came in at $768 million versus the consensus estimate of $611.7 million.
Link to 2Q Earnings Letter
Second quarter 2020 highlights include:
- Total consolidated revenue grew 28% year over year to $768 million.
- Segment income (loss) before income taxes was $19 million, $(80) million and $(0.2) million for the IMT, Homes, and Mortgages segments, respectively, and consolidated GAAP net loss was $(84) million.
- Adjusted EBITDA beat company expectations on a consolidated basis and for all three segments.
- Premier Agent year-over-year revenue decreased 17% to $192 million, primarily due to the impact of COVID-19-related discounts offered to our Premier Agent partners.
- The Homes segment delivered $454 million in revenue. Our resale strategies combined with the resilient housing market delivered higher Homes segment revenue, better segment Adjusted EBITDA and lower ending inventory than expected.
- Zillow Offers entered Q2 with home acquisitions temporarily paused due to market uncertainty. During the quarter, the company sold 1,437 homes and purchased 86 homes through Zillow Offers, ending Q2 with 440 homes in inventory. Zillow Offers is now actively purchasing homes in all 24 markets where it previously operated.
- Traffic to Zillow Group's mobile apps and websites reached a record 218 million average monthly unique users, an increase of 12% year over year, driving 2.5 billion visits during the quarter.
- The company exited the quarter with the highest cash balance in its history, growing cash and investments to $3.5 billion from $2.6 billion at the end of Q1 2020. We further strengthened our balance sheet in Q2 by completing nearly $1 billion in capital transactions with a combination convertible debt and equity offering.
"Zillow's second quarter results are even better than we had hoped, and firm up our belief that powerful tailwinds in both real estate and technology are rapidly converging, with Zillow at the nexus," said Zillow Group co-founder and CEO Rich Barton. "I believe we are at the dawn of a Great Reshuffling, as COVID and work-from-home policies are inspiring people to rethink their homes and consider moving. In addition, real estate, like other industries, is experiencing an acceleration in technology adoption, as people move their shopping habits from offline to online. We're lucky to be in a position to serve our customers no matter how they want to move, whether through a seamless Zillow Offers transaction or in partnership with our best-in-class Premier Agents.
"Even more important than the business results is the way our team has responded over the past several months, as we all grapple with fear, loss, protest, and anger through a health crisis and social reckoning. We've managed through all of this with a strong commitment that we can and will do more to support our communities and address systemic barriers in real estate."
For earnings history and earnings-related data on Zillow (Z) click here.
