Shares of Zillow (Z -1.07%) (ZG -1.02%) were surging today after the online real estate platform delivered strong results and showed growth across several verticals.
The stock closed up 23.8% on the news.
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Zillow looks strong across the board
Overall revenue at Zillow rose 17% to $581 million, beating the midpoint of the company's guidance at $553 million and the consensus at $554.7 million.
Growth was broad based as residential revenue was up 12% to $405 million as more buyers and sellers worked with Zillow agent partners. Rentals revenue rose 24% to $123 million, and mortgage revenue jumped 63% to $39 million.
The company added new technology to improve its interface, including artificial intelligence (AI)-powered natural-search functionality, and its enhanced-markets strategy, which offers an end-to-end experience in dozens of metros, is also paying off.
On the bottom line, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $127 million, well ahead of guidance. On a generally accepted accounting principles (GAAP) basis, it posted a loss of $20 million, or $0.08 per share.
Calling it another strong quarter, CEO Jeremy Wacksman said, "We continue to invest in tech solutions to build the integrated transaction experience consumers demand and deserve.
NASDAQ: Z
Key Data Points
What's next for Zillow
Zillow is the leading online real estate platform, and the company finally seems to be building out a business model worthy of that position.
Looking ahead to the fourth quarter, it sees total revenue of $525 million to $540 million, which was in line with estimates, and adjusted EBITDA of $90 million to $105 million.
Seventeen-percent growth in the quarter is clearly a strong sign as is improving EBITDA margins. If the housing market bounces back, Zillow could be set up to soar.
