Zillow beat estimates for its second quarter with $655 million in revenue, up 15% year-over-year. GAAP net income was $2 million, up from a $17 million loss in the year-ago period.
Shares were down as much as 6% in after-hours trading but later recovered.
The company’s mortgage business (up 41% to $48 million) and rentals unit (up 36% to $159 million) helped drive growth in the quarter. Zillow’s core “Residential” business grew 6% to $434 million.
Traffic to Zillow’s mobile apps and websites was up 5% to 243 million average monthly unique users.
The total revenue growth beat internal expectations and outpaced the broader housing and mortgage market “that remained essentially flat,” CEO Jeremy Wacksman wrote in a letter to shareholders.
The Seattle-based company now expects mid-teens revenue growth for 2025, at the higher end of its previous full-year outlook.
Zillow’s stock is up more than 15% in the past month.
In addition to a slow U.S. housing market, Zillow is in legal battles with two other industry titans: CoStar (over copyright infringement) and Compass (over listings).