Zillow Q2 revenue rises on mortgage growth

Overview

• US real estate platform's Q2 revenue rose 18% yr/yr to $772 mln

• Adjusted net income and adjusted EBITDA increased yr/yr; company posted small net loss

• Company repurchased 5.6 mln shares for $200 mln in Q2

Outlook

• Company says it is on track toward its full-year goals

• Zillow notes industry indicators point to a slower second half

Result Drivers

• MORTGAGES GROWTH - Co said mortgage revenue rose 75% yr/yr, driven by 95% increase in purchase loan origination volume

• RENTALS GROWTH - Co said rentals revenue rose 31% yr/yr, mainly due to multifamily revenue growing 42% yr/yr

• AGENT TOOLS NEW CONSTRUCTION - Residential revenue benefited from growth in Preferred, Zillow Showcase, New Construction and suite of agent software tools

Company press release: ID:nPnnq84Na

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the real estate services peer group is "buy"

• Wall Street's median 12-month price target for Zillow Group, Inc. is $55.00, about 48.5% above its August 4 closing price of $37.03

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• Aug 4 - Compass Q2 revenue rises beats analyst estimates on cost synergies

• Aug 4 - Opendoor Q2 revenue misses estimates

• Aug 4 - Real estate platform eXp World's Q2 revenue beats estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)