Zillow Group Inc. shares slid after the company's revenue forecast missed estimates, with an
The company, whose core business is helping real estate agents connect with homebuyers, said it's projecting third-quarter revenue of $458 million to $486 million. That compares with an average analyst estimate of $488 million in data compiled by Bloomberg.
The shares fell as much as 7.6% in late trading. They were down 2.1% to $51.91 at 4:46 p.m. New York time.
The disappointing forecast came on a day in which the company reported second-quarter earnings that beat analyst estimates.
Zillow's "residential" business segment generated $380 million in revenue in the quarter, down just 3% from the same period of 2022, when the housing market was still blazing. That compares with a 22% decline in industry transaction volumes, according to the statement.
The company's websites and apps remained popular despite slower home sales, attracting 226 million unique users on the average month in the second quarter. Zillow said investments to its sales funnel have helped it do a better job connecting homebuyers to real estate agents.
"Zillow outperformed the broader industry for the fourth consecutive quarter as we navigate a tough real estate market," Chief Executive Officer Rich Barton said in the statement. "I'm pleased with our steady progress on improving and integrating our customer and partner experiences, especially in touring, financing and renting."
