Zillow Stock Soars as Real Estate Company Names New CEO, Reports Revenue Growth
Zillow Group (Z) shares jumped as the real estate services company reported better-than-expected results for the second quarter and named a new chief executive officer.
Strong Second Quarter Results
The company posted a second-quarter loss of $0.07, less than half of what it was a year ago and just one-third of the average estimate of analysts surveyed by Visible Alpha. Revenue was up 13% to $572 million, also beating forecasts.
Residential revenue increased 8% to $409 million, as the company improved connections between high-intent customers and its Premier Agent partners. Rentals revenue gained 29% to $117 million, primarily driven by a 44% increase in multi-family revenue. Mortgages revenue grew 42% to $34 million as purchase loan origination volume soared.
Zillow’s mobile apps and sites had 231 million average monthly unique users, little changed from 2023, although visits rose 4% to 2.5 billion.
New CEO Announcement
Along with the earnings news, the company said COO Jeremy Wacksman has taken over as CEO, replacing Zillow co-founder Rich Barton. Barton will be Co-Executive Chair with fellow co-founder Lloyd Frink.
Market Reaction
Zillow shares were up 20% in late trading Thursday. Despite the gain, the stock is still down 14% since the beginning of the year.
Investors reacted positively to Zillow’s second-quarter results and the announcement of a new CEO. The company’s stock soared by 20% in late trading on Thursday. However, despite this gain, the stock is still down 14% since the beginning of the year.
Zillow’s strong second-quarter performance can be attributed to several factors. The company reported a narrower loss compared to the previous year, exceeding analysts’ expectations. Additionally, Zillow’s revenue increased by 13% to $572 million, surpassing forecasts.
The growth in residential revenue can be attributed to Zillow’s efforts to improve connections between high-intent customers and its Premier Agent partners. This resulted in an 8% increase in residential revenue, reaching $409 million. Rentals revenue also saw significant growth, with a 29% increase to $117 million, driven by a 44% increase in multi-family revenue. Zillow’s mortgages revenue experienced substantial growth as well, with a 42% increase to $34 million, fueled by a surge in purchase loan origination volume.
Zillow’s mobile apps and sites continue to attract a large user base, with 231 million average monthly unique users. Although this figure remained relatively unchanged from 2023, visits to Zillow’s platforms increased by 4% to 2.5 billion.
The appointment of Jeremy Wacksman as the new CEO of Zillow marks a significant leadership change for the company. Wacksman, who previously served as the company’s COO, will replace co-founder Rich Barton. Barton will transition into the role of Co-Executive Chair alongside fellow co-founder Lloyd Frink. This change in leadership aims to bring fresh perspectives and drive further growth for Zillow.
Overall, Zillow’s second-quarter results and the appointment of a new CEO have instilled confidence in investors. The stock’s significant jump in late trading reflects optimism about the company’s future prospects. However, it is important to note that Zillow’s stock is still down 14% since the beginning of the year, indicating that challenges remain.
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