Overview
- Zillow stock fell after the company paired an earnings beat with a weaker second‑quarter profit outlook that disappointed investors.
- The company guided adjusted EBITDA to $150 million to $165 million versus a $191 million analyst expectation, and it projected revenue of $750 million to $765 million as it pointed to legal and advertising expenses and a flat housing market.
- First‑quarter results topped estimates with revenue of $708 million, earnings of $0.53 per share, and $1.5 billion in purchase loan originations.
- Business lines showed strong gains, with rentals revenue up 42% to $183 million and mortgage revenue up 56% to $64 million.
- CEO Jeremy Wacksman said affordability is keeping buyers selective, while Zillow leans on AI for search, virtual tours, mortgages, and agent messaging and expands 3D tours, floor plans, and drone videos as it targets mid‑teens full‑year growth with expanding margins.