Zillow Group Inc (NAS:ZG)
$ 72.01 -1.21 (-1.65%) Market Cap: 17.22 Bil Enterprise Value: 16.53 Bil PE Ratio: 0 PB Ratio: 3.61 GF Score: 71/100
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Q2 2024 Zillow Group Inc Earnings Call Transcript

Aug 07, 2024 / 09:00PM GMT
Release Date Price: $40.35 (-2.30%)

Key Points

Positve
  • Zillow Group Inc (Z) reported better-than-expected revenue growth across the business, with Q2 revenue at $572 million, up 13% year over year.
  • Rentals revenue grew 29% year over year to $117 million, with multifamily revenue up 44%, driven by strong growth in multifamily property count.
  • Zillow Home Loans purchase mortgage origination volume grew 125% year over year, contributing to a 42% increase in mortgage revenue.
  • The company has successfully integrated its Zillow-branded housing super app, enhancing the consumer and partner experience across multiple markets.
  • Zillow Group Inc (Z) maintained strong cost discipline, resulting in a 23% EBITDA margin for Q2, a year-over-year margin expansion of more than 100 basis points.
Negative
  • Despite the positive revenue growth, Zillow Group Inc (Z) reported a GAAP net loss of $17 million for Q2.
  • The broader residential real estate industry remains challenging, with the total purchase loan origination volume estimated to be down mid-single digits year over year in Q2.
  • The company faces ongoing challenges in the mortgage rate environment, which continues to impact the overall market.
  • Zillow Group Inc (Z) has a significant amount of outstanding convertible debt, with $1.5 billion due in the coming years.
  • The company’s Q3 outlook for residential revenue indicates a potential decline due to normal seasonality and continued strong contributions from other product offerings.
Operator

Hello, and welcome to Zillow's second-quarter 2024 earnings call. (Operator Instructions) Also, as a reminder, this conference is being recorded today. (Operator Instructions) Brad, you may begin.

Brad Berning
Zillow Group Inc - VP, Strategic Affairs and Investor Relations

Thank you. Good afternoon, and welcome to Zillow Group's second-quarter 2024 call. Joining me today to discuss our results are Zillow Group's Co-Founder and Co-Executive Chairman, Rich Barton; newly appointed CEO, Jeremy Wacksman; and CFO, Jeremy Hofmann.

During today's call, we will make forward-looking statements about our future performance and operating plans based on our current expectations and assumptions. These statements are subject to risks and uncertainties, and we encourage you to consider the risk factors described in our SEC filings for additional information.

We undertake no obligation to update these statements as a result of new information or future events except as required by law. This call is being broadcast on the Internet and is accessible on our

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