Zillow Group, Inc. (ZG) Q3 Revenue Misses Consensus, to Wind Down Zillow Offers Operations
(Updated - November 2, 2021 4:09 PM EDT)
Zillow Group, Inc. (NASDAQ: ZG) reported Q3 revenue of $1.74 billion versus the consensus estimate of $2 billion.
- to wind down Zillow Offers, the company's iBuying service in which Zillow acts as the primary purchaser and seller of homes.
"We've determined the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility," said Zillow Group co-founder and CEO Rich Barton. "While we built and learned a tremendous amount operating Zillow Offers, it served only a small portion of our customers. Our core business and brand are strong, and we remain committed to creating an integrated and digital real estate transaction that solves the pain points of buyers and sellers while serving a wider audience."
The wind-down is expected to take several quarters and will include a reduction of Zillow's workforce by approximately 25%. "The most difficult part of this decision is that it will impact many of our colleagues," Barton said. "This is not something we take lightly. We are grateful for their efforts, and we are committed to providing a smooth transition."
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