Home News On anniversary of home-flipping flop, Zillow is done selling houses

On anniversary of home-flipping flop, Zillow is done selling houses

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Zillow Group Inc. completed the sale of a home a year after abandoning the iBuying business, and executives reported higher-than-expected gains and earnings, closing out a third-quarter effort, but their forecast is It fell short of Wall Street expectations.

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ZG,
+10.16%

Z.
+10.54%

A third-quarter loss of $53 million, or 21 cents per share, was reported late Wednesday on net earnings of $483 million, down from $1.74 billion a year ago. After adjusting for stock-based compensation, losses from discontinued operations and other impacts, Zillow reported earnings of 38 cents per share for him, an improvement from his adjusted loss of 95 cents per share a year ago. Did.

Analysts expect adjusted earnings to average 14 cents per share on sales of $458 million. Zillow’s shares rose more than 2% in after-hours trading after the earnings release and fell 4.9% to close at $29.43.

Zillow’s sales are down from last year due to what happened on this day in 2021. That’s the end of the company’s experiment with participating in the industry it serves. 2 November 2021, Zillow has announced that it will exit its home-flipping business and sell its large residential portfolio. While laying off a quarter of its workforce, it over-buyed in a changing housing market.

These changes have continued over the past year as Zillow demolished all the homes. Management said Wednesday that the sale was completed on Sept. 30, the end of the third quarter, and the division was completely closed.

Zillow shares fell 1.8% in pre-market trading on Thursday.

However, the housing market remains volatile and the outlook is uncertain. Zillow executives Wednesday raised fourth-quarter earnings to $425 million from $396 million and adjusted EBITDA to $63 million from $48 million. According to FactSet, his revenue for the last three months of the year was $434 million, and on average analysts expected him to have an adjusted EBITDA of $89 million.

Management has continued to make changes in response to the changing environment, including: laid off more workers last weekManagement said the ultimate goal is to blend assets from the remaining two segments (Internet, Media & Technology (IMT), and Mortgage Business) to help buyers and sellers navigate the entire home. It says to make it a helpful mobile “super app”. -Buy and sell process.

“The housing market is in a difficult position right now, but if the long-term average turnover rate continues, we expect 60 million homes to be traded over the next 10 years. Opportunities are the foundation of the current environment.”

Zillow shares are down 52.7% so far this year, and the S&P 500 Index is down
SPX,
-1.06%

decreased by 19.1%.

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