Business is looking rather balanced over at Zillow. Brokerages and lenders are rolling out their second quarterly earnings statements, giving a preview of how the cooling market is hitting the bottom line…and Zillow survived rather unscathed.
The company reported exceeding its internal outlook by bringing in $1 billion in revenue during the second quarter of the year. Though down 23 percent year-over-year, the company did manage to turn a profit of $69 million.
The wind down of Zillow Offers also beat expectations. Driven by a higher-than-expected number of homes sold during the quarter — a total of 1,211 homes sold—Zillow saw $505 million in home sales during Q2. The company reported having 71 homes still in inventory at the end of June.
“Zillow stands on solid ground and is well-positioned for long-term growth, with a healthy balance sheet, positive operating cash flow, and a trusted household brand,” said Zillow Group CEO and co-founder Rich Barton. “Despite the challenges of the macroeconomic environment, we’re making strides in key growth areas—including financing, touring and seller solutions — that get us closer to our vision of an integrated digital experience to help customers with all their real estate needs in our ‘housing super app.’”
Elsewhere, Premier Agent revenue decreased 5 percent year-over-year to $333 million, slightly below the low end of the company’s outlook range. Results were impacted by macro housing market factors, including interest rate and home price increases, as well as tight inventory levels.
Rentals revenue decreased 3 percent annually to $71 million, surpassing expectations. Mortgages segment revenue was $29 million, slightly below the low end of the outlook range, as rising interest rates impacted demand more than expected.