NASDAQ$Z

Zillow Group Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Zillow's Q3 2021 financial performance reflected strong growth in the IMT and Mortgages segments, offset by challenges in the Homes segment due to renovation and resale capacity constraints, and the company announced its plan to wind down Zillow Offers operations.

Zillow Group reported consolidated Q3 revenue of $1.7 billion. The company experienced a GAAP net loss of $328 million. Zillow also announced its plan to wind down Zillow Offers, expecting the process to take several quarters and include a workforce reduction of approximately 25%.

  • Consolidated Q3 revenue reached $1.7 billion.
  • IMT segment revenue grew 16% year over year to $480 million, with Premier Agent revenue growth of 20% year over year to $359 million.
  • Homes segment revenue was $1.2 billion, below the company's Q3 outlook.
  • Mortgages segment revenue grew 30% year over year to $70 million.

Headline financials

Total Revenue

$1.74B

Previous: $657M+164.5%
EPS (adj)

-$0.95

Previous: $0.37-356.8%
Capital Expenditures

-$45.4M

Previous: -$72.4M+37.3%
Free Cash Flow

-$3.01B

Previous: $678M-543.6%
Net Income

-$328M

Previous: $39.6M-929.4%
Operating Income

-$282M

Previous: $76.4M-468.4%
Gross Profit

$241M

Previous: $440M-45.4%
Cash & Equivalents

$2.2B

Previous: $1.9B+15.3%
Total Assets

$10.8B

Previous: $6.84B+58.4%
Stock-Based Comp

$79.4M

Previous: $49M+62.2%

Revenue & EPS history

Zillow · Revenue · Quarterly

$1.74B

Q3 2021+164.5%vs Q3 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Zillow · $496M total across 4 segments · Q3 2023

  • Residential Revenue
    $362M
  • Rentals Revenue
    $99M+33.8%
  • Mortgages Revenue
    $24M-7.7%
  • Other Revenue
    $11M-84.5%

Forward guidance

The company expects an additional $240 million to $265 million of losses to be recognized in Q4 primarily on homes it expects to purchase in Q4. Additionally, Homes segment Q3 revenue is below the company’s previously provided outlook range due to resale capacity constraints that pushed a number of closings into Q4 that were previously expected to close in Q3.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+1.5%

Avg return

Earnings day

+0.1%

Avg return

5 days after

-0.8%

Avg return

30 days after

56%

24 / 43 earnings

Positive

+27.1%

Q4 2018

Best reaction

-32.6%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%-11.0%-21.3%
Q4 2025-16.5%-20.6%-21.6%
Q3 2025+4.2%+1.8%+3.7%
Q1 2025+0.0%+3.6%+3.6%
Q4 2024-9.4%-7.4%-18.2%
Q3 2024+15.7%+20.7%+30.9%
Q2 2024+16.5%+20.3%+25.7%
Q1 2024-6.4%-2.0%-3.8%
Q4 2023+4.7%-1.2%-0.6%
Q3 2023-2.1%+2.4%+19.6%
Q2 2023-0.6%+1.2%-5.1%
Q1 2023+8.8%+12.7%+9.0%
Q4 2022+5.2%+0.8%-10.8%
Q3 2022+5.3%+8.8%+24.9%
Q2 2022-1.0%-3.2%-9.1%
Q1 2022-13.8%-17.4%-10.9%
Q4 2021+11.6%+31.2%-3.1%
Q3 2021-32.6%-32.0%-44.2%
Q2 2021-7.4%-8.6%-10.7%
Q1 2021-9.5%-5.7%-13.7%
Q4 2020+15.0%+17.2%-10.7%
Q3 2020+18.5%+0.4%+7.0%
Q2 2020+13.0%+6.7%+18.8%
Q1 2020+22.0%+13.3%+36.6%
Q4 2019+21.7%+14.2%-48.0%
Q3 2019+11.7%+12.5%+22.1%
Q2 2019-15.0%-25.2%-36.5%
Q1 2019+3.3%+5.9%+33.5%
Q4 2018+27.1%+21.0%+2.5%
Q3 2018-25.9%-25.2%-8.5%
Q2 2018-13.9%-14.9%-17.2%
Q1 2018+4.3%+3.9%+17.7%
Q4 2017+1.3%+0.4%+23.9%
Q3 2017+0.5%-3.1%+0.8%
Q2 2017-8.2%-13.7%-18.2%
Q1 2017+11.7%+8.4%+14.5%
Q4 2016-5.7%-6.0%-3.8%
Q3 2016+5.2%+3.3%+1.5%
Q2 2016-4.2%-7.4%-11.0%
Q1 2016+11.9%
Q4 2015+6.1%
Q3 2015-2.8%
Q2 2015-5.3%
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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