Zillow Reports Revenue Climb to $572 Million

Zillow Group has announced impressive financial results for the second quarter of 2024, revealing a revenue increase to $572 million, representing a 13% rise compared to the same quarter last year. This growth was notably driven by advancements in the rental and mortgage sectors. Additionally, a leadership transition was made, with Jeremy Wacksman promoted to Chief Executive Officer, while former CEO Rich Barton has taken on the role of Co-executive Chair of the Board of Directors.

### Key Takeaways
– Zillow’s Q2 revenue hit $572 million, showing a 13% year-over-year increase.
– Jeremy Wacksman has been appointed as CEO, with Rich Barton now serving as Co-executive Chair.
– The rental sector has grown to account for 20% of Zillow’s total revenue.
– There was over a 100% year-over-year increase in purchase mortgage origination volume through Zillow Home Loans.
– The company aims for a 6% share of customer transactions by the end of 2025.
– Average monthly unique users in Q2 reached 231 million, 80% of whom came organically.
– Zillow plans to expand its Enhanced Markets initiative to 40 locations by the end of 2024.
– Although the company reported a net loss of $17 million in Q2, it achieved an EBITDA of $134 million.

### Company Outlook
– Zillow anticipates double-digit revenue growth for 2024 and modest EBITDA margin improvement.
– The company aims to successfully establish itself in 40 Enhanced Markets by the end of 2024.

### Challenges
– A reported net loss of $17 million in Q2 constitutes 3% of total revenue.

### Positive Highlights
– Sturdy growth in both the rental and mortgage sectors.
– Significant user engagement through Zillow’s offerings.
– Revenues from the Premier Agent program have increased more than 2.5 times since 2015.
– Listings and mortgage revenue associated with multifamily properties have risen significantly.

### Areas of Concern
– Despite overall positive growth, the net loss in Q2 raised some eyebrows.

### Q&A Highlights
– The focus remains on expanding Enhanced Markets and promoting growth in rental and mortgage services.
– The company aims to manage costs effectively and curb stock-based compensation to achieve profitability.
– Leadership changes are not expected to shift the overall company strategy.

In summary, Zillow Group’s Q2 performance demonstrates a strong growth trajectory, driven by strategic initiatives and leadership changes aimed at enhancing customer experience and market penetration. With a roadmap for future revenue and profit growth in place, the company is poised for continued expansion in the real estate sector.