- Zillow's (NASDAQ:Z, ZG) Q3 EPS of $0.07 beat a -$0.03 consensus, and revenue of $176.8M slightly beat a $176.5M consensus. However, the company has guided on its earnings call for Q4 revenue of $165M-$170M, below a $179.1M consensus. Q4 adjusted EBITDA is expected to total $20M-$25M, down from Q3's $29.5M.
- Zillow notes Q4 guidance doesn't include revenue from Market Leader, whose sale was closed at the end of September. Some Q4 analyst estimates might not have been adjusted to account for the sale.
- The online real estate leader does expect 2016 revenue growth to exceed 2015's rate. For the first 9 months of 2015, Zillow's pro forma revenue (adjusts for the Trulia deal) is up 22% Y/Y.
- Top-line performance: Marketplace revenue rose 22% Y/Y in Q3 to $153.2M, while display revenue (ads, hurt by weak industry demand) fell 23% to $30.4M. The display decline is attributed to "continued strategic efforts to reduce display advertising on the company's mobile applications and websites to further promote our Marketplace products."
- Metrics: Agent advertisers fell to 96,965 at the end of Q3 from 101,297 at the end of Q2. Zillow previously stated it's now de-emphasizing agent count, and instead focusing on growing revenue via high-ARPA agents. Monthly unique users averaged 142.1M, up slightly from Q2's 141M.
- Z -7.5% after hours to $27.30. ZG -9.3% to $28.10.
- Q3 results, PR
- Update (6:39PM ET): Zillow tells Seeking Alpha it had found only a small number of Q4 analyst estimates had accounted for the Market Leader sale. Both Z and ZG remain down over 7%.