Business
Zillow Group Reports Third-Quarter 2021 Financial Results & Shares Plan to Wind Down Zillow Offers Operations
Company reinforces strength of its core business and vision of building an integrated and digital real estate transaction to shop for, buy, sell, finance and
About this update from Zillow Group, Inc.
[{"type":"text","content":"Company reinforces strength of its core business and vision of building an integrated and digital real estate transaction to shop for, buy, sell, finance and close on homes\n\n\nSEATTLE, Nov. 2, 2021 /PRNewswire/ -- Zillow Group, Inc. (NASDAQ: Z and ZG), today announced consolidated financial results for the three months ended Sept. 30, 2021, and its plan to wind down Zillow Offers, the company's iBuying service in which Zillow acts as the primary purchaser and seller of homes. \n\n \n \n \n \n \n \n\n \n\"We've determined the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility,\" said Zillow Group co-founder and CEO Rich Barton. \"While we built and learned a tremendous amount operating Zillow Offers, it served only a small portion of our customers. Our core business and brand are strong, and we remain committed to creating an integrated and digital real estate transaction that solves the pain points of buyers and sellers while serving a wider audience.\"\nThe wind-down is expected to take several quarters and will include a reduction of Zillow's workforce by approximately 25%. \"The most difficult part of this decision is that it will impact many of our colleagues,\" Barton said. \"This is not something we take lightly. We are grateful for their efforts, and we are committed to providing a smooth transition.\"\nThe company reported the following Q3 financial results: \nConsolidated Q3 revenue of $1.7 billion. IMT segment revenue growth of 16% year over year to $480 million, and Premier Agent revenue growth of 20% year over year to $359 million, both within the company's Q3 outlook ranges. Homes segment revenue of $1.2 billion, below the company's Q3 outlook of $1.45 billion at the midpoint of the range, due primarily to renovation and resale capacity constraints. Mortgages segment revenue growth of 30% year over year to $70 million, exceeding the high end of the company's outlook range. Consolidated GAAP net loss of $328 million in Q3. Segment income (loss) before income taxes of $130 million, $(422) million and $(6) million for the IMT, Homes and Mortgages segments, respectively. Consolidated Adjusted EBITDA loss of $169 million with Adjusted EBITDA for the IMT and Mortgages segments exceeding the high ...