Zillow beats by $0.14, beats on revs; guides Q3 revs in-line; promotes COO Jeremy Wacksman to be its new CEO (40.35 -0.95)
- Reports Q2 (Jun) earnings of $0.39 per share, excluding non-recurring items, $0.14 better than the FactSet Consensus of $0.25; revenues rose 13.0% year/year to $572 mln vs the $538.36 mln FactSet Consensus.
- Q2 adjusted EBITDA $134 mln vs $85-100 mln prior guidance.
- Q2 Residential revenue grew 8% yr/yr to $409 mln. Rentals continued its growth with $117 mln in revenue in Q2, up 29% yr/yr. Multifamily revenue is up 44% yr/yr, driven by growth in its multifamily property count, with 44,000 properties at the end of Q2, up from 40,000 at the end of Q1.
- Co also reports Q2 Mortgages segment revenue of $34 mln, up 42% yr/yr with purchase mortgage origination volume growing 125%. Co says these successes come despite a persistently challenging mortgage-rate environment, as evidenced by its estimate of total industry purchase loan origination volume being down mid-single digits year over year in Q2.
- Co issues in-line guidance for Q3, sees Q3 revs of $545-560 mln vs. $552.82 mln FactSet Consensus. Co guides to Q3 adjusted EBITDA of $95-110 mln.
- Co also names longtime executive and COO Jeremy Wacksman as its new CEO. Wacksman succeeds co-founder Rich Barton, who remains on the Zillow Board and becomes co-executive chair alongside Zillow co-founder and current Executive Chair Lloyd Frink.
- Wacksman joined Zillow from Microsoft in 2009 and has earned multiple promotions throughout his 15 years at Zillow, including as a product leader, chief marketing officer (CMO) and, for the past three years, as COO, with responsibility for growing Zillow Group businesses and also overseeing engineering, product, design, marketing, sales and industry relations.