Z Q3 2024 Earnings

Call Details

• Call Title: Zillow Group, Inc. Q3 2024 Earnings Call
• Date: November 6, 2024 at 10:00 PM UTC
• Management Team:
  • Brad Berning (Vice President, Investor Relations)
  • Jeremy Wacksman (Chief Operating Officer)
  • Jeremy Hofmann (Chief Financial Officer)

Call Summary

Financial Performance

• Total company revenue for Q3 2024 was $581 million, up 17% year over year.
• Residential revenue in Q3 was $405 million, up 12% year over year.
• Rentals revenue in Q3 was $123 million, up 24% year over year, with multifamily rentals revenue up 38% year over year.
• Mortgages revenue in Q3 was $39 million, up 63% year over year, with purchase loan origination volume of $812 million, up 80% year over year.
• GAAP net loss in Q3 was $20 million and EBITDA was $127 million, representing a 22% EBITDA margin.
• Average monthly unique users across Zillow apps and sites were 233 million per Zillow internal metrics, and Comscore reported 116 million average monthly unique visitors.
• Total listings across the rentals marketplace were 1.9 million in September, up 15% year over year.
• Share-based compensation expense in Q3 was $108 million and was down year over year.

Guidance

• Q4 2024 total company revenue is expected to be between $525 million and $540 million, implying approximately 12% year-over-year growth at the midpoint.
• Q4 2024 residential revenue is expected to be between $364 million and $374 million.
• Q4 2024 rentals revenue is expected to grow in the mid-20% year-over-year range.
• Q4 2024 mortgages revenue is expected to grow in the mid-60% year-over-year range.
• Q4 2024 EBITDA is expected to be between $90 million and $105 million, implying an 18% margin at the midpoint and approximately 300 basis points year-over-year improvement.
• Q4 2024 EBITDA expenses are expected to be approximately $435 million, down sequentially from $454 million in Q3 primarily due to seasonally lower advertising spend.
• At the midpoint of the Q4 outlook, full-year 2024 revenue is expected to be up 14% and full-year 2024 EBITDA margin is expected to be 22%, implying approximately 200 basis points of margin expansion versus 2023.
• Annual fixed cost run rate is expected to remain approximately $1 billion, consistent with the end of 2023 levels.