Zillow Group reported a record $266.9 million in revenue for the second quarter of this year, a 28 percent increase over the same period in 2016.
The Seattle real estate data company beat Wall Street expectations of $261.9 million in revenue, and slightly beat earnings estimates with a non-GAAP EPS of $0.04.
Shares were down 5 percent in after-hours trading.
“Zillow Group finished the first half of 2017 with another quarter of record revenue and traffic, further solidifying our foundation for long-term growth,” Zillow Group CEO Spencer Rascoff said a prepared statement. “Our growing consumer audience is increasingly engaged and we achieved revenue growth across all of our emerging marketplaces.”
Average monthly unique users topped 178 million, up 6 percent, for Zillow Group’s consumer brands: Zillow, Trulia, StreetEasy, HotPads and Naked Apartments.
Premier Agent revenue was up 29 percent to $189.7 million, mortgages revenue rose rose 14 percent to $20.9 million, and other revenue increased 45 percent to $37.9 million — a category that includes Zillow Group Rentals, agent services, dotloop, Naked Apartments, and other consumer properties.
In the first quarter of this year, Zillow beat Wall Street expectations and set another revenue record with a 32 percent increase from 2016. The company expects to reach of $1 billion in revenue this year, and its revised outlook today still calls for that milestone. Its shares are up more than 25 percent in the past year.
Earlier this week, Facebook ventured into Zillow’s market and launched its first ad product designed specifically for residential real estate brokerages. In May, Zillow launched Instant Offers, a new product billed as a way for homeowners to avoid traditional hassles and sell quickly.
This is Zillow’s first earnings report since Redfin, another disruptive, Seattle-based estate company tech, went public earlier this month. GeekWire compared the IPOs of both companies, which share a desire to disrupt traditional real estate but differ in many ways.