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High rates and slow sales may be dragging on the real estate industry, but Zillow managed to buck the trend, revealing Wednesday that its third-quarter revenue shot up — with notable gains coming from the portal giant’s mortgage business.
In total, Zillow brought in $581 million in revenue between July and September of this year, according to a newly released earnings report. That represents a 17 percent year-over-year increase — with the company pointing out in the report that the figure bested the broader industry’s total transaction value growth of just 2 percent.
All of Zillow’s segments — residential, rentals, and mortgage — saw year-over-year revenue growth. But it was the mortgage segment that was the real standout, with revenue in that part of the business rising 63 percent year over year to $39 million. In the report, the company attributed that improvement to “an 80 percent year-over-year increase in purchase loan origination volume to $812 million in Q3.”
Revenue in the residential segment of the business rose 12 percent year over year, hitting $405 million, while revenue from rentals hit $123 million, a 24 percent improvement over the third quarter of 2023.
The portal also lost $20 million in the quarter. However, that loss was down from the $28 million it burned through during the same period in 2023.
Jeremy Wacksman | Credit: LinkedIn
In the report, Zillow CEO Jeremy Wacksman said his company had “another strong quarter,” with investments giving the portal an advantage.
“I’m proud of how we are executing our strategy to serve renters, buyers, sellers, agents and the broader residential real estate industry,” Wacksman continued. “We continue to invest in tech solutions to build the integrated transaction experience consumers demand and deserve.”
Wednesday’s report also revealed that traffic to Zillow’s sites mostly held steady in Q3, with 233 million average monthly unique users — a 1 percent year-over-year improvement. Total visits to Zillow’s sites and apps hit 2.4 billion in the quarter, an improvement of 3 percent compared to Q3 of last year.
Heading into Zillow’s earnings report Wednesday, shares in the company were trading for just under $60. That was down for the day, but up compared to both six months and one year ago.
Credit: Google
Zillow had a market cap of about $12.1 billion as of Wednesday afternoon.
The portal last reported earnings in August. At the time, the company revealed that it brought in $572 million in revenue between April and June of this year. That number was up 13 percent compared to one year ago. The company’s mortgage segment was also a standout last quarter, with revenue growing 125 percent year over year.
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