FT : Warner Bros Discovery writes down its television channels by $9bn

Warner Bros Discovery writes down its television channels by $9bn
Executives blame ‘tough’ market conditions as cable group battles the shift to streaming

Warner Bros Discovery has written down the value of its traditional television networks by $9.1bn, a dramatic recognition of how fast streaming is eroding the cable business model behind channels such as CNN, HGTV and the Food Network.

The non-cash charge led the US entertainment group to report a quarterly net loss of $10bn, which compared to Wall Street’s expectations of a $542mn loss and exceeded its total revenue of $9.7bn.

The stark revaluation reflects a determination that WBD’s television channels are no longer what they were worth just two years ago, when the company was formed from the merger of Discovery and WarnerMedia.

“It’s fair to say that even two years ago, market valuations and prevailing conditions for legacy media companies were quite different than they are today, and this impairment acknowledges this,” chief executive David Zaslav told investors. “The market conditions within the traditional business are tough.”

“It’s an accounting reflection of the state of the industry,” said chief financial officer Gunnar Wiedenfels.

“Am I disappointed about the impairment? Yes,” Wiedenfels said. “There’s been talk about recovery [in the traditional television market] a year, or year and a half ago. It hasn’t really happened.”

Shares in WBD dropped more than 9 per cent in after-hours trading. The company’s stock had already fallen by almost 70 per cent since it was formed in 2022 in a $40bn merger that was meant to help two legacy media groups survive the brutal streaming battle.

Quarterly revenue fell short of forecasts, weighed by WBD’s television networks, which were hit hard by shrinking audiences as people cancel their pay-TV subscriptions.

Revenue at WBD’s television business unit dropped 8 per cent from a year ago to $5.3bn. Rival Disney reported earlier on Wednesday that its television network revenue fell 7 per cent to $2.7bn in the quarter.

Zaslav and his team have been discussing strategic options as they try to reverse WBD’s sinking share price. They considered breaking up the company but have concluded that this is not currently the best option, the Financial Times reported earlier this week.

Zaslav on Wednesday told analysts: “We have to . . . consider all options. But the number one priority is to run this company as effectively as possible.”

The group’s streaming and HBO cable businesses added 3.6mn direct-to-consumer subscribers in the quarter, reaching 103.3mn subscribers globally. 

“We recognised early on this was a generational disruption . . . requiring us to take bold, necessary steps,” said Zaslav.

>>> US After Hours Summary: ZG +12.6%, ASPN +12.1%, BOOT +9.3%, DUOL +6.3%, KLIC

After Hours Summary: ZG +12.6%, ASPN +12.1%, BOOT +9.3%, DUOL +6.3%, KLIC +3.1% higher on earnings; CDLX -45.7%, FROG -28%, BROS -21.8%, FSLY -13.7%, MGNI -13.2%, SONO -13.1%, MNST -11.2% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: HROW +34.4%, APPS +27%, KVYO +17.1%, FWRD +15.6%, FLNC +14.9%, ZG +12.6% (also promotes COO Jeremy Wacksman to be its new CEO), ASPN +12.1%, HCAT +11.3%, TALO +10.1%, BOOT +9.3%, WAY +8.9%, CW +8.2%, HUBS +7.1%, AOSL +7%, VSAT +6.9%, SBGI +6.8%, DUOL +6.3%, JXN +6.2%, AZEK +6.1%, CPRX +6%, BLBD +5.9%, STKL +5.5%, SM +5.2%, CXW +5.1%, AHH +4.9%, LESL +4.7%, LZ +4.7% (also announces restructuring including 15% reduction in workforce), ODD +4.4%, METC +4.3%, JANX +4.3%, APP +4.2%, CLNE +4.1%, DBRG +4.1%, RAMP +3.9%, BBDC +3.4%, SPCE +3.2%, EQX +3.1%, IONQ +3.1%, KLIC +3.1% (also announces thermo-compression adoption & milestones), CF +3%, ICUI +3%, MODG +2.9%, CXT +2.8%, SVCO +2.4%, HOOD +2.2%, WPM +2.1%, GNK +2%, WES +2%, MKSI +1.9%, STAA +1.8%, NTR +1.4% (also names new CFO), JOBY +1.3%, DLB +1.1%, RDNT +1.1%, CHRD +1%, OXY +1%, ET +0.9%, HI +0.8%, MMS +0.3%, KNTK +0.2%, KAR +0.1%, ZIP +0.1% (also acquires Breakroom, UK-based employer review platform)

Companies trading higher in after hours in reaction to news: CMPO +26.4% (Resolute Holdings to acquire majority interest in CompoSecure), AMRX +12.3% (FDA approves CREXONT for Parkinson's disease), GNSS +9.1% (signs deal with Puerto Rico to implement its Emergency Warning System across 37 dams), NL +6.6% (declares a special dividend of $0.08/sh), BLND +3.4% (names new CEO, names new Chairman), INSE +1.7% (new strategic partnership with Mecca Bingo), MTUS +0.1% (receives $3.5 mln in grants from JobsOhio), OBDC +0.1% (OBDC and ODBE to merge, with OBDC as the surviving co)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: CDLX -45.7% (also names new CEO), OM -38.2%, BMBL -29.2%, FROG -28%, BROS -21.8%, MTW -18.8%, BRCC -17.1%, FSLY -13.7%, AGO -13.5%, MGNI -13.2%, SONO -13.1%, PACB -11.8%, RYN -11.4%, MNST -11.2%, WBD -9.2%, SRPT -9%, UPWK -8.3%, MCK -7.4% (also increases dividend; approves $4 bln increase to repurchase program), BLNK -7.1%, SEDG -6.7%, HPP -6.4%, UHAL -4.9%, KIND -4.4%, PAAS -4.2%, ASLE -3.8%, CORZ -3.8%, MIRM -3.6%, CPA -3.5%, MRVI -3.4%, KTOS -3.3%, VTLE -3.3%, MQ -3.2%, EGHT -2.7%, NVST -2.6%, BHF -2%, JAMF -2%, RVMD -1.8%, ALLO -1.6%, GH -1.6%, SITM -1.5%, BYND -1.3%, ENS -1.1% (also increases dividend), CDE -0.8%, OPK -0.8%, PRI -0.7% (also increases dividend), UGI -0.6%, EQIX -0.5%, VZIO -0.5%, MFC -0.5%, ESE -0.1% (also reviewing strategic alternatives for the Space business at VACCO), HMN -0.1%

Companies trading lower in after hours in reaction to news: PRGS -1.9% (announces conclusion of SEC investigation into MOVEi), CNP -0.8% ($250 mln stock offering), VFC -0.6% (CEO says turnaround is gaining traction, according to Bloomberg), COST -0.4% (reports July comps), WBA -0.3% (provides VillageMD update; enters into forbearance agreement), OBDE -0.2% (OBDC and ODBE to merge, with OBDC as the surviving co), JNJ -0.2% (NEJM publishes study of pregnant individuals at high risk for early onset severe hemolytic disease), ENLC -0.2% (files mixed shelf securities offering), TK -0.1% (CFO to step down; CEO to take on the added role of Teekay Tankers' President and CEO), HG -0.1% (authorizes new $150 mln share repurchase program), ATS -0.1% (to acquire assets from Heidolph Instruments and Hans Heidolph), TFPM -0.1% (to acquire 3% gold streams; also increases dividend), MRC -0.1% (stock offering by selling shareholder)

The Information : OpenAI Makes a $60 Million Hardware Startup Bet

OpenAI Makes a $60 Million Hardware Startup Bet

OpenAI CEO Sam Altman has long been interested in building an AI-powered device for consumers, similar to the one featured in Spike Jonze’s movie “Her.” He’s personally invested in wearable AI pin startup Humane and separately worked with ex-Apple designer Jony Ive on a personal AI device.

Now OpenAI startup's fund, which invests in promising AI startups that are often also users of its conversational AI software, is backing another hardware developer.

The ChatGPT maker is leading a $60 million Series B funding round for Opal, previously known as Opal Camera, according to two people involved in the deal. Opal, backed by YouTuber Casey Neistat and TikTok siblings Charli and Dixie D’Amelio, historically has made webcams. Existing investors including Founders Fund and Kindred Ventures are expected to participate in the funding round as well, the people said.

OpenAI’s involvement in the funding round is surprising. Opal is best known for its $300 professional-grade webcams—not an obvious match for a large language model developer.

But Opal plans to develop other types of devices powered by OpenAI’s AI models while it continues to sell its webcams, according to one of the people involved in the deal.

The three-year-old startup envisions developing devices that individuals can use as creative tools rather than AI-powered friends or companions, the person said. Opal will be working closely with OpenAI researchers to prototype various device ideas, said one of the people involved in the deal, almost like a research lab.

There’s clearly potential here. I could see this kind of tech being used, for instance, to power an intercom-like device placed on desks to help people brainstorm, research or write for creative projects.

The investment highlights how OpenAI, and its CEO, has become increasingly interested in how AI technology can power physical devices.

Earlier this spring, for instance, the ChatGPT maker restarted its robotics team, which it disbanded four years ago. It has also partnered with startups developing humanoid robots such as Figure and 1X Technologies. That’s in addition to Altman’s personal bets on Humane and the Ive device, which could look like earbuds with cameras in them, we’ve previously reported. (The Opal-OpenAI deal is separate from the Altman-Ive device, said one of the people involved in the deal.)

OpenAI executives were especially excited about the Opal investment because of the opportunity to be able to use its voice AI models in its devices, said a person briefed on the deal.

High-profile backing won’t guarantee Opal’s success, though. Other startups have stumbled in developing AI-powered devices. Humane, the developer of an AI-powered pin, considered selling itself after negative reviews and abysmal sales, and brought on former Cisco CEO and M&A veteran John Chambers last month. Rabbit, another developer of an AI-powered personal device, has struggled because most existing LLMs typically have been too large to run completely on-device. That means that AI-powered devices like Rabbit’s R1 run slowly, quickly drain battery life and require a constant internet connection.

Still, Altman and OpenAI are taking multiple shots at the AI hardware market. That increases their chances that one will pay off.

TechCrunch : ChatGPT’s mobile app revenue saw its biggest spike yet following GP

ChatGPT’s mobile app revenue saw its biggest spike yet following GPT-4o launch

Consumer demand for the latest AI technology is heating up. The launch of OpenAI’s latest flagship model, GPT-4o, has now driven the company’s biggest-ever spike in revenue on mobile, despite the model being freely available on the web. GPT-4o, which launched May 13, can handle text, speech and video, and delivers real-time responsiveness and a range of emotive voice options, making it a far more powerful model than what was offered before. This technical innovation is also pushing more users to upgrade to OpenAI’s paid subscription, according to new data from app intelligence firm Appfigures.

Though OpenAI said GPT-4o would be offered to users on its free tier, that promise hasn’t stretched to include users of its ChatGPT app on mobile as of yet. (OpenAI says it intends to later roll out GPT-4o to mobile). For its first week, however, mobile users were being pushed to upgrade to ChatGPT’s $19.99 monthly subscription, ChatGPT Plus, if they wanted to experiment with OpenAI’s most recent launch.

That strategic decision is generating increased demand for subscriptions among mobile users and has now led to the biggest-ever revenue spike OpenAI has yet seen on mobile devices.

The ChatGPT mobile app’s net revenue first jumped 22% on the day of the GPT-4o launch and continued to grow in the following days, according to Appfigures. On Tuesday, net revenue was up to $900,000, nearly twice that of the app’s daily average of $491,000. (The net revenue figure is calculated after Apple and Google take their commission.)

Before this, ChatGPT’s second-biggest spike was in April, but it was much smaller: merely an abnormally high revenue day, not a massive jump.


The ChatGPT mobile app earned $4.2 million in net revenue across both the App Store and Google Play from May 13 to 17, the firm found, which represents the largest revenue spike the app has seen to date. The jump in revenue indicates there’s real consumer demand for trying out the latest experiments in AI, particularly on mobile, even if it’s more expensive than a Netflix subscription.

Apple’s App Store contributed the majority of the new revenue, at 81%, and the U.S. was the top market, accounting for $1.8 million in revenue. Other top countries included Germany ($282,000), the U.K. ($212,000), Japan ($210,000), France ($147,000), Canada ($134,000), Korea ($123,000), Brazil ($117,000), Australia ($102,000) and Turkey ($89,000).

What’s more, the revenue trend does not yet appear to be slowing down, and in fact, may be sustaining or even increasing, the data indicates. Stay tuned.

>>> Notable earnings/guidance movers: FWRD +20%, ASPN +12.2%, ZG +11.5%, BOOT +8

Notable earnings/guidance movers: FWRD +20%, ASPN +12.2%, ZG +11.5%, BOOT +8.4%, DUOL +4.7%, LZ +4.7% higher on earnings; CDLX -50%, BMBL -26.2%, FROG -23.6%, FSLY -19.3%, HPP -15.9%, MTW -15.5%, BROS -14% lower on earnings
  • Earnings/guidance gainers: FWRD +20%, APPS +19.1%, KVYO +16.9%, FLNC +14.2%, ASPN +12.2%, ZG +11.5%, TALO +10.4%, HCAT +9.5%, BOOT +8.4%, JXN +7.5%, HUBS +7.4%, WAY +7.2%, BLBD +7.2%, AOSL +6.9%, SBGI +6.8%, RAMP +6.2%, VSAT +6.1%, CPRX +6%, IONQ +5.9%, CLNE +5.3%, CXW +5.2%, SM +5.2%, MODG +4.8%, DUOL +4.7%, LZ +4.7%, METC +4.3%, JANX +4.3%, BYND +4.1%, AZEK +4%, ICUI +3.5%
  • Earnings/guidance losers: CDLX -50%, BMBL -26.2%, FROG -23.6%, FSLY -19.3%, HPP -15.9%, MTW -15.5%, BROS -14%, AGO -13.5%, MGNI -10.3%, BLNK -9.9%, WBD -9.5%, APP -8.6%, PACB -8.5%, MNST -8.4%, SONO -8.1%, BHF -7%, MCK -6.9%, UPWK -6.8%, SRPT -6.4%, GH -5.8%, UHAL -4.4%, ASLE -3.8%, SEDG -3.8%, OPK -3.5%, MRVI -3.4%, NVST -3.3%, VTLE -3.3%, EGHT -2.7%, MQ -2.6%, KTOS -2.4%

>>> US Close Dow -0.60% S&P -0.77% Nasdaq -1.05% Russell -1.41%

Closing Stock Market Summary
The stock market was in solid form at the start of the session, attempting to build on yesterday's rebound. Gains quickly faded and the major indices ultimately settled with declines.

The initial upside bias was driven by momentum following yesterday's session. Also, concerns about further unwinding of carry trade positions dissipated somewhat after the Bank of Japan's Deputy Governor Uchida said the bank will not raise rates during market instability and the yen weakened against the dollar (USD/JPY +1.9% to 147.10).

The subsequent downturn was driven by growth concerns that had been put on the backburner yesterday and earlier today. The afternoon retreat was broad and orderly. The S&P 500, which was trading up as much as 1.7% at its high, closed 0.8% lower. The equal-weighted S&P 500 was trading up 1.5% at its intraday high, but settled with a 0.7% decline.

Dow components Amgen (AMGN 312.50, -16.54, -5.0%) and Walt Disney (DIS 85.96, -4.01, -4.5%) underperformed after reporting earnings. Walt Disney's streaming business generated positive operating income for the first time, but demand is weakening for its theme parks.

Airbnb (ABNB 113.01, -17.46, -13.4%) was another influential laggard after indicating that it is noticing slowing demand from U.S. guests.

Seven of the S&P 500 sectors closed lower and four of them declined more than 1.0%. The consumer discretionary (-1.4%) and information technology (-1.4%) sectors were among the worst performers, clipped by losses in mega cap constituents. Meanwhile, the utilities (+0.6%) and energy (+0.5%) sectors led the pack.

The 10-yr note yield settled eight basis points higher at 3.97% and the 2-yr note yield settled two basis points higher at 4.00%. On a related note, today's $42 billion 10-yr note auction was poorly received.

  • S&P 500: +9.0% YTD
  • Nasdaq Composite:+7.9% YTD
  • S&P Midcap 400: +3.3% YTD
  • Dow Jones Industrial Average: +2.9% YTD
  • Russell 2000: +0.4% YTD

Reviewing today's economic data:
  • Weekly MBA Mortgage Applications Index 6.9%; Prior -3.9%
  • Weekly EIA Crude Oil Inventories showed a draw of 3.73 million barrels following last week's draw of 3.44 million barrels

Looking ahead to Thursday, market participants will receive the following data:
  • 8:30 ET: Weekly Initial Claims (consensus 242,000; prior 249,000) and Continuing Claims (prior 1.877 mln)
  • 10:00 ET: June Wholesale Inventories (consensus 0.2%; prior 0.6%)
  • 10:30 ET: Weekly natural gas inventories (prior +18 bcf)

FT : Telegram use surged after UK stabbing as rioters turn to chat apps

Telegram use surged after UK stabbing as rioters turn to chat apps
Messaging service, known for ‘hands off’ approach to content moderation, faces pressure to tackle extremist groups in UK

Use of messaging app Telegram surged in the UK on the day that a peaceful vigil for three girls killed in a mass stabbing in Southport turned into a night of rioting tied to the far-right English Defence League.

Telegram, known for its “hands off” approach to content moderation, is facing renewed pressure to tackle extremist groups on its platform in the UK as it emerged as one of the main tools wielded for mobilising rioters and stoking unrest.

Active users on the app rose to 3.1mn on July 29, the day of the stabbing in the seaside town in northern England, up from an average of about 2.7mn since the beginning of 2024, according to figures from Similarweb, an online analytics company.

That figure jumped to 3.7mn the following day, when a night of violence in Southport, which centred on attacks against a local mosque, left at least 50 police officers injured. Merseyside police said they believed the far-right English Defence League, founded by activist Tommy Robinson, was behind some of the violence.

Telegram usage returned to average levels by the weekend, according to Similarweb data.

The Southport riot ignited a wave of violence across the country, which UK ministers, police and analysts say was both fuelled by and organised through online platforms including Telegram, TikTok and Elon Musk’s X.

UN-backed counterterrorism group Tech Against Terrorism said on Wednesday it was issuing an “urgent alert” regarding the organisation of UK riots by far-right extremists using Telegram. It cited the growth of a 15,000-strong Telegram group that it said was now removed, which had shared a list of protest targets, including immigration-related sites.

“Telegram’s inadequate moderation of extremist channels is contributing to violence and unrest across the UK,” Tech Against Terrorism said.

As several UK towns were braced for further violence on Wednesday, media watchdog Ofcom urged tech platforms to be “proactive” in taking down material that stirred racial hatred or promoted violence.

“We welcome the proactive approaches that have been deployed by some services in relation to these acts of violence across the UK,” Ofcom said. “In a few months, new safety duties under the Online Safety Act will be in place, but you can act now — there is no need to wait to make your sites and apps safer for users.”


Telegram said its moderators “are actively monitoring the situation and are removing channels and posts containing calls to violence”.

“Moderators use a combination of proactive monitoring of public parts of the platform, sophisticated AI tools and user reports to ensure content that breaches Telegram’s terms is removed,” it said.

Founded in 2013 by Russian-born billionaire Pavel Durov and his brother Nikolai, Telegram has gained prominence for its positioning as an anti-surveillance, “free speech” messaging platform. As a result it has been used by everyone from pro-democracy protesters in Iran to far-right organisers in the UK, and attracted scrutiny for criminal activity on the platform, according to some researchers.

Tell Mama, a group that documents anti-Muslim incidents, said on Monday it had identified far-right posts on Telegram threatening to target immigration solicitors and refugee services in more than 30 UK locations.

Dubai-based Telegram allows users to send encrypted messages privately, or create groups of up to 200,000 members, and “channels” — for one-way broadcasting of messages — with unlimited subscribers. Its guidelines on content moderation state that it does not allow spam and scams, illegal pornography or the promotion of violence on “publicly viewable Telegram channels”.

It also bans terrorist channels, after bowing in 2019 to pressure to take down Isis-linked groups. In the wake of the January 6 2021 attack on the US Capitol building, Telegram closed down public extremist and white supremacist groups involved.

This week, several prominent public Telegram groups organising far-right violence in the UK, including one called “Southport Wake Up”, appeared to have been removed. However, researchers warned that new back-up channels and private groups, which are harder to monitor, continued to share misinformation and racial hatred.

The UK government’s disinformation unit — the National Security Online Information Team — has been compiling examples of social media posts that it believes are spreading disinformation and inciting violence and alerting social media groups to concerning content.

While several companies had been quick to respond by removing flagged posts, X was identified as being less responsive and had kept concerning content up, according to people briefed on the government unit’s activities.

Some researchers warned that public platforms such as X, which attract a broader user base, were being used to recruit people to more secretive far-right organising networks on platforms such as Telegram, including private groups that are difficult to monitor.

FT : Bill Ackman’s Pershing Square weighs deal to take property group private

Bill Ackman’s Pershing Square weighs deal to take property group private
Fund eyes real estate company Howard Hughes after recent attempt to take US entity public came to abrupt halt

Bill Ackman’s Pershing Square is weighing up a deal to delist $3bn real estate company Howard Hughes Holdings, according to a regulatory filing, in what would be a significant escalation of its investment in the group.

Pershing Square is the real estate company’s largest shareholder, with a holding of about 38 per cent. Pershing has tapped investment bank Jefferies to evaluate taking the company private and may sound out co-investors to help finance a deal, the regulatory filing on Tuesday showed.

The proposed deal comes as Ackman’s hedge fund wrestles with a series of bruising setbacks. Last week he pulled the initial public offering of Pershing’s US entity Pershing Square USA after slashing its fundraising target from $25bn to $2bn.

Pershing Square declined to comment. Jefferies did not respond to a request for comment. A spokesperson for Howard Hughes said the company does not comment on the actions or intentions of individual shareholders and that all details known to the company were in the regulatory filing. Its shares rose 6.3 per cent on Wednesday in New York.

Pershing Square has been a longtime shareholder of Howard Hughes, which owns land and develops office buildings, apartment buildings and master-planned communities across Texas, Nevada, Arizona, Hawaii and Maryland. The company played a big role in redeveloping South Street Seaport in New York.

Ackman left the board of Howard Hughes this spring, after serving as chair since it was spun out from then-bankrupt shopping mall operator General Growth Properties in 2010.

At the time of the spin-off “it was a complicated collection of development assets, master planned communities, income-producing properties, and other assets”, Ackman said in April, when Howard Hughes announced he would leave its board of directors.

Pershing Square has slowly increased its stake over time and “intends to remain a major, long-term shareholder of HHH”, the company said in a press release in April.

Since then, Howard Hughes has streamlined its business. In July it split off its entertainment division, which includes parts of the South Street Seaport neighbourhood, the Las Vegas Aviators minor league baseball team and stadium, and rights for the space above Las Vegas’s fashion show mall, where it plans to build a casino.

Referring to the failed IPO of Pershing Square USA and future plans, Ackman said in a post on social media platform X: “I made the decision to withdraw the IPO this morning when I came up with a better transaction structure.” The company has not yet provided additional details on what that new potential transaction may be.

>>> HubSpot beats by $0.30, beats on revs; guides Q3 EPS in-line, revs in-line;

HubSpot beats by $0.30, beats on revs; guides Q3 EPS in-line, revs in-line; guides FY24 EPS above consensus, revs above consensus (460.74 +10.65)
  • Reports Q2 (Jun) earnings of $1.94 per share, excluding non-recurring items, $0.30 better than the FactSet Consensus of $1.64; revenues rose 20.4% year/year to $637.2 mln vs the $619.28 mln FactSet Consensus.
    • Grew Customers to 228,054 at June 30, 2024, up 23% from June 30, 2023.
  • Co issues in-line guidance for Q3, sees EPS of $1.89-1.91, excluding non-recurring items, vs. $1.89 FactSet Consensus; sees Q3 revs of $646-647 mln vs. $646.48 mln FactSet Consensus.
  • Co issues upside guidance for FY24, sees EPS of $7.64-7.70, excluding non-recurring items, vs. $7.35 FactSet Consensus; sees FY24 revs of $2.567-2.573 bln vs. $2.56 bln FactSet Consensus.

>>> Zillow beats by $0.14, beats on revs; guides Q3 revs in-line; promotes COO

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.