Zillow just keeps on getting bigger.
The Seattle online real estate juggernaut today posted quarterly revenue of $208.4 million, a 31 percent increase over the same period last year and in line with the company’s expectations.
The growth in revenue comes after Zillow successfully digested its largest rival, Trulia, which it purchased for $2.5 billion in 2015. The addition of Trulia, along with the 11 other real estate services that Zillow has acquired in recent years, helped the company achieve an all-time high of 171 million unique visitors during the month of May.
Even so, it was not all upbeat during the second quarter as Zillow’s net loss mushroomed to $156.1 million, which included a $130 million litigation settlement with rival Move Inc. and $12.5 million in related legal costs. That compared to a net loss of $38.7 million in the same period last year.
In June, Zillow settled a high-profile lawsuit from Move Inc. which alleged that Zillow’s hiring of two former Move executives — Errol Samuelson and Curt Beardsley — resulted in trade secrets being lifted from Move.
With the Move litigation in the rearview mirror, Zillow appears to be plowing ahead. The company — founded by former Expedia executives Rich Barton and Lloyd Frink — boosted its revenue outlook for 2016, saying it now anticipates revenue in the range of $830 million to $840 million. That’s up from the previous guidance of $825 million to $835 million.
“Record revenue and traffic growth were highlights of Zillow Group’s tremendous second quarter,” said Zillow Group CEO Spencer Rascoff in a release. “We continue to command significant category leadership on mobile and web, reaching an all-time high of unique users in May and achieving our largest market share of the real estate category. It is clear that our monetization on mobile is benefiting from our significant market leadership, which now captures 78% of the mobile-only category.”
In a conference call with analysts, Rascoff called Zillow the “clear mobile audience leader.” He also noted that Zillow is turning into a household name, with more consumers searching for the term “Zillow” than the words “real estate.” Even so, Rascoff said that they still have a lot of work to do to grow the brand to reach the status of other tech brands like Netflix and Google.
The company finished the quarter with 2,571 employees, and it continues to bolster its staff in an effort to focus on growth. “It is early days and we are in growth mode,” said Zillow CFO Kathleen Phillips in today’s conference call with analysts.