ZILLOW GROUP, INC.
For the period ended Mar 31, 2025. Filed May 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 7, 2025
ZG$30.36-2.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-06.
0001617640-24-000126
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001617640-25-000064
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 145 previous paragraphs and 136 current paragraphs.
55 unchanged; 62 reworded; 19 added; 27 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
StreetEasy for-sale revenue primarily consists of our StreetEasy Experts and StreetEasy subscription offerings. StreetEasy Experts is our pay for performance pricing model available in the New York City market for which agents and brokers are provided with leads at no initial cost and pay a performance referral fee only when a real estate purchase transaction is closed with one of the leads. Revenue generated through StreetEasy subscription offerings includes the sale of advertising and a suite of tools to developers, property managers, agents and other market professionals.
Current report
Follow Up Boss revenue primarily consists of our software-as-a-service customer relationship management system which provides real estate agents, teams and brokerages with a central hub to manage real estate transactions from connection to close.
Current report
For Sale Revenue
Current report
Rentals Revenue
Current report
•Rentals revenue increased by $32 million, or 33%, to $129 million, due to increases in quarterly revenue per average monthly rentals unique visitor and average monthly rentals unique visitors.
Current report
For Sale Revenue Per Total Transaction Value
Current report
For Sale revenue per TTV is an important metric because it is an indicator of our For Sale revenue performance relative to the residential real estate industry. To evaluate how our investments drive performance relative to industry growth, we use this metric to measure our ability to both connect and convert more buyers and sellers to transact with us and to grow revenue per customer transaction.
Current report
We calculate For Sale revenue per TTV as total For Sale revenue for the relevant period divided by the aggregate TTV for the same period. TTV is calculated as the number of existing residential homes sold during the relevant period multiplied by the average sales price of existing residential homes sold during the same period according to residential real estate data collected and estimated by Zillow Group, as published monthly on our site. For Sale revenue and TTV have historically been affected by seasonal fluctuations in the residential real estate market. We generally expect For Sale revenue to peak during the three months ending June 30 or September 30. As such, we measure performance and present our For Sale revenue per TTV on a trailing twelve-month basis to account for seasonality.
Current report
The following table presents our For Sale revenue per TTV for the periods presented:
Current report
(1) Estimate for the trailing twelve months ended March 31, 2025 is as of April 2025.
Current report
Total revenue increased $69 million, or 13%, to $598 million:
Current report
For Sale Revenue
Current report
Rentals Revenue
Current report
Cost of revenue increased $16 million, or 13%, primarily driven by increases of $8 million in depreciation and amortization expense primarily due to an increase in amortization of website development costs and $5 million in lead acquisition costs related to strategic partnerships. We expect our cost of revenue to increase in absolute dollars during the three months ending June 30, 2025, primarily due to higher direct product and service costs, including increased lead acquisition costs associated with our rentals partnership with Redfin that went live at the end of April 2025, as we continue to support growth in revenue.
Current report
Other income, net decreased $11 million for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024, and was primarily driven by lower interest income on investments due to a decrease in our investment balances as a result of the settlement of the 2024 Notes and 2026 Notes during the year ended December 31, 2024.
Current report
For the three months ended March 31, 2025, net cash used in by investing activities was $52 million. This was primarily related to $144 million of purchases of property and equipment and intangible assets, including a $100 million payment in connection with the partnership we entered into with Redfin in February 2025. These outflows were partially offset by $92 million of net proceeds from maturities and sales of investments.
Current report
2025 Notes
Current report
(2)Agreement was entered into on February 27, 2025.
Current report
Critical Accounting Estimates
Removed paragraphs (27)
Previous report
•Rentals revenue increased by $24 million, or 24%, to $123 million, due to increases in average monthly rentals unique visitors and quarterly revenue per average monthly rentals unique visitor.
Previous report
Universal Analytics is no longer offered by Google as of July 1, 2024 and has been replaced by Google Analytics 4. As a result of this change, from January 1, 2024 through June 30, 2024, we measured visits to Zillow using an internal measurement tool, but continued to use Universal Analytics to measure visits to StreetEasy. As of July 1, 2024, we measure visits to both Zillow and StreetEasy using an internal measurement tool, and visits to Zillow and StreetEasy end after thirty minutes of user inactivity or at midnight. Trulia continues to measure visits with Adobe Analytics, and visits to Trulia end after thirty minutes of user inactivity.
Previous report
Total revenue increased $85 million, or 17%, to $581 million:
Previous report
Total revenue increased $211 million, or 14%, to $1.7 billion:
Previous report
•Residential revenue increased $104 million, or 9%. The increase in Residential revenue was driven by a 6% increase in Residential revenue per visit to $0.166 for the nine months ended September 30, 2024 from $0.158 for the nine months ended September 30, 2023, primarily due to the inclusion of revenue from Follow Up Boss, which we acquired in December 2023, growth in our Premier Agent revenue primarily due to continued improvement in our ability to convert connections into transactions, an increase in ShowingTime+ revenue as we expanded software services available to sellers and listing agents, and accelerating growth in our new construction revenue. The increase in Residential revenue was also attributable to a 4% increase in the number of visits for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023.
Previous report
•Rentals revenue increased $73 million, or 28%. The increase in Rentals revenue was primarily due to a 24% increase in quarterly revenue per average monthly rentals unique visitor to $3.62 for the nine months ended September 30, 2024 as compared to $2.93 for the nine months ended September 30, 2023, primarily driven by growth in multifamily property listings, which drove a 42% increase in multifamily rentals revenue. The increase in rentals revenue was also due to growth in the number of average monthly rentals unique visitors, which increased 3% to 31 million during the nine months ended September 30, 2024, from 30 million during the nine months ended September 30, 2023.
Previous report
•Mortgages revenue increased $30 million, or 41%. This increase was driven by a $45 million increase in mortgage originations revenue, partially offset by a $12 million decrease in Custom Quote and Connect advertising services revenue. The increase in mortgage originations revenue was primarily due to a 106% increase in total loan origination volume to $2.2 billion for the nine months ended September 30, 2024 from $1.1 billion for the nine months ended September 30, 2023, primarily driven by continued growth in Zillow Home Loans purchase loan origination volume. The increase in mortgage originations revenue was also attributable to a 20% increase in gain on sale margin. The increase in mortgage originations revenue was partially offset by a $12 million decrease in Custom Quote and Connect advertising services revenue, which was primarily due to a 20% decrease in leads generated from marketing products sold to mortgage professionals. This decrease in leads was primarily driven by our focus on organic growth of our mortgage origination business.
Previous report
•Adjusted EBITDA does not reflect acquisition-related costs;
Previous report
•Adjusted EBITDA does not reflect loss on extinguishment of debt;
Previous report
Cost of revenue increased $30 million, or 27%, primarily driven by increases of $14 million in depreciation and amortization expense primarily due to an increase in amortization of website development costs, $4 million in mortgage loan processing costs due to increased purchase loan origination volume, $3 million in lead acquisition costs related to partnerships, and $2 million in connectivity costs.
Previous report
Cost of revenue increased $87 million, or 28%, primarily driven by increases of $47 million in depreciation and amortization expense primarily due to an increase in amortization of website development costs, $12 million in mortgage loan processing costs due to increased purchase loan origination volume, $7 million in lead acquisition costs related to partnerships, $5 million in connectivity costs, and $4 million in headcount-related expenses, including share-based compensation expense.
Previous report
Gross profit increased by $55 million, or 14%, primarily due to an increase in revenue, discussed above. Total gross margin decreased from 78% to 76%.
Previous report
Technology and development expenses increased $17 million, or 4%, due to increases of $19 million in headcount-related expenses, including share-based compensation expense, as we continue to invest in human capital to grow our businesses, $7 million in software and hardware costs, and $3 million in travel expenses. These increases were partially offset by a $10 million decrease in third-party professional service fees driven by active cost management.
Previous report
General and administrative expenses decreased $21 million, or 5%, primarily due to a decrease of $18 million in headcount-related expenses, including share-based compensation expense. The decrease in headcount-related expenses was primarily driven by $18 million in share-based compensation expense associated with the departures of certain executive personnel incurred during the nine months ended September 30, 2023. The decrease in general and administrative expenses was also due to a $12 million decrease in rent expense primarily driven by cost savings associated with changes in the use of certain office space in our lease portfolio. These decreases were partially offset by increases of $8 million due to the change in fair value of contingent consideration associated with our acquisition of Follow Up Boss and $3 million in travel expenses.
Previous report
Impairment and Restructuring Costs
Previous report
Impairment and restructuring costs were not material for the three months ended September 30, 2024 and 2023. Impairment and restructuring costs were $6 million and $9 million for the nine months ended September 30, 2024 and 2023, respectively, and were primarily associated with changes in the use of certain office space in our lease portfolio. Impairment and restructuring costs incurred during the nine months ended September 30, 2023 also included $3 million that pertained to employee termination costs.
Previous report
Other income, net decreased $7 million for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023, and was primarily driven by fair value adjustments on an outstanding warrant, partially offset by increases in returns on investments due to the higher interest rate environment as compared to the prior year period.
Previous report
In 2021, the OECD, a global policy forum, released Pillar Two, designed to ensure that multinational groups with consolidated financial statement revenue in excess of €750 million annually pay a minimum 15% tax in each jurisdiction in which they operate. The OECD continues to release guidance and countries are implementing legislation to adopt these rules, which are expected to be effective for accounting periods beginning on or after December 31, 2023. The United States has not yet enacted legislation implementing Pillar Two. We have evaluated the impact of these rules and currently believe they will not have a material impact on our financial position, results of operations or cash flows due to certain transitional safe harbors. We will continue to monitor and refine our assessment as further guidance is made available.
Previous report
For the nine months ended September 30, 2023, net cash provided by investing activities was $339 million. This was the result of $498 million of net proceeds from the maturity of investments, $125 million of purchases of property and equipment and intangible assets, and $34 million of cash paid for acquisitions, net of cash acquired.
Previous report
Notes
Previous report
Settlement of 2024 Notes. The 2024 Notes matured on September 1, 2024. During the period from March 1, 2024 through the close of business on August 29, 2024, holders of the 2024 Notes elected to convert all outstanding 2024 Notes in accordance with the terms of the indenture. We settled these conversions with aggregate cash payments totaling $610 million, which included $608 million in principal repayments, $2 million for accrued interest and a nominal cash payment in lieu of fractional shares, and the issuance of 1.9 million shares of Class C capital stock. In September 2024, we received 2.1 million shares of Class C capital stock from the settlement of the capped call transactions we entered into in connection with the issuance of the 2024 Notes.
Previous report
2025 Notes. We may from time to time seek to redeem, retire or purchase outstanding debt through cash purchases and/or exchanges for cash, shares of stock or a combination of cash and stock, pursuant to the redemption terms of such debt securities, in open market purchases, privately negotiated transactions or otherwise. Such redemptions, repurchases or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved in any such transactions, individually or in the aggregate, may be material.
Previous report
There were no repurchases of Notes during the three months ended September 30, 2024. During the nine months ended September 30, 2024, we repurchased $88 million aggregate principal amount of the 2025 Notes through open market transactions for $89 million in cash, including accrued interest.
Previous report
Redemption of 2026 Notes. On October 8, 2024, we submitted notice to the trustee to exercise our right to redeem the remaining $499 million in aggregate principal amount of the 2026 Notes on December 18, 2024 (the “Redemption Date”). The 2026 Notes may be converted by the holders at any time prior to 5:00 p.m. (New York City time) on December 17, 2024. The conversion rate for the 2026 Notes is 22.9830 shares of Class C capital stock per $1,000 principal amount of 2026 Notes converted (subject to adjustment under certain circumstances as set forth in the indenture governing the 2026 Notes). We expect to settle the principal amount of the 2026 Notes in cash and any conversion premium in shares of Class C capital stock. For any holder of the 2026 Notes that does not elect to convert their 2026 Notes, we will be required to redeem the 2026 Notes in cash at a redemption price equal to 100% of the principal amount of 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the Redemption Date.
Previous report
(2)Agreement was amended and renewed on September 6, 2024, increasing the total maximum borrowing capacity from $100 million to $150 million.
Previous report
(3)Agreement expired on March 11, 2024 and was not renewed.
Previous report
Critical Accounting Policies and Estimates
Reworded paragraphs (62)
Previous wording
Zillow Group is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing and renting experiences.
Current wording
Zillow Group is reimagining real estate to make home a reality for more and more people. As the most visited real estate app and website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated real estate professionals, and easier buying, selling, financing and renting experiences.
Previous wording
Our portfolio of affiliates, subsidiaries and brands includes Zillow Premier Agent, Zillow Home Loans, our mortgage origination business and affiliate lender, Zillow Rentals, Trulia, StreetEasy, HotPads and Out East. In addition, Zillow Group provides a comprehensive suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Spruce and Follow Up Boss.
Current wording
Our portfolio of affiliates, subsidiaries and brands includes Zillow Premier Agent, Zillow Home Loans, our mortgage origination operations and affiliate lender, Zillow Rentals, Trulia, StreetEasy, HotPads and Out East. In addition, Zillow Group provides a comprehensive suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Spruce and Follow Up Boss.
Previous wording
As of September 30, 2024, we had 6,835 employees, compared to 6,263 employees as of December 31, 2023.
Current wording
As of March 31, 2025, we had 6,819 employees, compared to 6,856 employees as of December 31, 2024.
Previous wording
Our financial performance is impacted by changes in the health of the housing market, which is impacted, in turn, by general economic conditions. Current market factors have been driven by low housing inventory, volatility in mortgage interest rates, volatility in rental occupancy rates, as well as home price fluctuations and inflationary conditions. These factors may impact the number of transactions consumers complete using our products and services and demand for our advertising services. According to industry data from NAR, total transaction value increased 2% during the three months ended September 30, 2024 as compared to the three months ended September 30, 2023 and 3% during the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023. Despite the current market factors mentioned above, we continue to invest in the growth of our business. We believe this continued investment has resulted in year over year total revenue results, described below, for the three and nine months ended September 30, 2024 as compared to the same periods in the prior year, that exceeded industry performance for the same periods. The extent to which market factors impact our results and financial position will depend on future developments, which are uncertain and difficult to predict.
Current wording
Our financial performance is impacted by changes in the health of the housing market, which is impacted, in turn, by general economic conditions. Current market factors have been driven by low housing inventory, volatility in mortgage interest rates, changes in rental inventory and occupancy rates, as well as home price fluctuations and inflationary conditions. These factors may impact the number of transactions consumers complete using our products and services and demand for our advertising services. According to residential real estate data collected and estimated by Zillow Group as published monthly on our site, TTV increased 6% during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. We continue to invest in the growth of our business, which we believe has resulted in year over year total revenue results, described below, for the three months ended March 31, 2025 as compared to the same period in the prior year, that exceeded industry performance for the same period. The extent to which market factors impact our results and financial position will depend on future developments, which are uncertain and difficult to predict.
Previous wording
Our revenue is classified into four categories: Residential, Rentals, Mortgages and Other.
Current wording
Our revenue is classified into four categories: Residential, Mortgages, Rentals and Other. Our “For Sale revenue” subtotal includes our Residential and Mortgages revenue categories and represents our revenue from participation in residential real estate purchase and sale transactions.
Previous wording
Residential. Residential revenue includes revenue generated by our Premier Agent and new construction marketplaces, as well as revenue from the sale of advertising and business technology solutions for real estate professionals through StreetEasy for-sale product offerings, ShowingTime+, including Listing Showcase, and upon acquisition on December 8, 2023, Follow Up Boss.
Current wording
Residential. Residential revenue includes revenue generated by our Premier Agent and new construction marketplaces, as well as revenue from the sale of advertising and business technology solutions for real estate professionals through ShowingTime+, StreetEasy for-sale product offerings and Follow Up Boss.
Previous wording
Premier Agent revenue is generated by the sale of advertising services, as well as marketing and technology products and services, to help real estate agents and brokers grow and manage their businesses and brands. We offer these products and services through our Premier Agent program. Premier Agent products, which include the delivery of validated customer connections, or leads, are offered on a share of voice (“market-based pricing”) and pay for performance (“Flex”) basis. For our market-based pricing offering, connections are distributed to Premier Agent partners in proportion to their share of voice, or a Premier Agent partner’s share of total advertising purchased in a particular zip code. With the Flex model, Premier Agent partners are provided with validated leads at no initial cost and pay a performance advertising fee only when a real estate transaction is closed with one of the leads, generally within two years.
Current wording
Premier Agent revenue is generated by the sale of advertising services, as well as marketing and technology products and services, to help real estate agents and brokers grow and manage their businesses and brands. We offer these products and services through our Premier Agent program. Premier Agent products, which include the delivery of validated customer connections, or leads, are offered on a share of voice (“market-based pricing”) and pay for performance (“Flex”) basis. For our market-based pricing offering, connections are distributed to Premier Agent partners in proportion to their share of voice, or a Premier Agent partner’s share of total advertising purchased in a particular zip code. With the Flex model, Premier Agent partners are provided with leads at no initial cost and pay a performance advertising fee only when a real estate transaction is closed with one of the leads, generally within two years.
Previous wording
Revenue generated through ShowingTime+ includes ShowingTime revenue, which is primarily generated by Appointment Center, a software-as-a-service and call center solution allowing real estate agents, brokerages and multiple listing services to efficiently schedule real estate viewing appointments on behalf of their customers. Appointment Center services also include call center specialists who provide scheduling support to customers. ShowingTime+ revenue also includes our dotloop real estate transaction management software-as-a-service solution, as well as Zillow Showcase, a listing marketing package.
Current wording
Revenue generated through ShowingTime+ includes ShowingTime revenue, which is primarily generated by Appointment Center, a software-as-a-service and call center solution allowing real estate agents, brokerages and MLSs to efficiently schedule real estate viewing appointments on behalf of their customers. Appointment Center services also include call center specialists who provide scheduling support to customers. ShowingTime+ revenue also includes our dotloop real estate transaction management software-as-a-service solution, as well as Zillow Showcase, a listing marketing package.
Previous wording
Mortgages. Mortgages revenue primarily includes revenue generated through mortgage originations and the related sale of mortgages on the secondary market through Zillow Home Loans and from advertising sold to mortgage lenders and other mortgage professionals on a cost per lead basis, including our Custom Quote and Connect services.
Current wording
Mortgages. Mortgages revenue primarily includes revenue generated through mortgage originations and the related sale of mortgages on the secondary market through Zillow Home Loans and revenue from advertising sold to mortgage lenders and other mortgage professionals on a cost-per-lead basis, including our Custom Quote and Connect services.
Previous wording
For the three months ended September 30, 2024 and 2023, we generated total revenue of $581 million and $496 million, respectively, an increase of 17%. The increase in total revenue was primarily attributable to the following:
Current wording
For the three months ended March 31, 2025 and 2024, we generated total revenue of $598 million and $529 million, respectively, an increase of 13%. The increase in total revenue was primarily attributable to the following:
Previous wording
•Residential revenue increased by $43 million, or 12%, to $405 million, due to increases in residential revenue per visit and the number of visits.
Current wording
•Residential revenue increased by $24 million, or 6%, to $417 million, due to increases in Residential revenue per visit and the number of visits.
Previous wording
•Mortgages revenue increased by $15 million, or 63%, to $39 million, driven by an increase in mortgage originations revenue.
Current wording
•Mortgages revenue increased by $10 million, or 32%, to $41 million, driven by an increase in mortgage originations revenue.
Previous wording
During the three months ended September 30, 2024 and 2023, we generated gross profit of $441 million and $386 million, respectively, an increase of 14%.
Current wording
During the three months ended March 31, 2025 and 2024, we generated gross profit of $459 million and $406 million, respectively, an increase of 13%.
Previous wording
Management has identified visits, unique users and the volume of loans originated through Zillow Home Loans as relevant to investors’ and others’ assessment of our financial condition and results of operations.
Current wording
Management has identified visits, unique users, For Sale revenue per TTV, and the volume of loans originated through Zillow Home Loans as relevant to investors’ and others’ assessment of our financial condition and results of operations.
Previous wording
Prior to January 1, 2024, we measured visits to Zillow and StreetEasy using the Universal Analytics version of Google Analytics’ traffic measurement platform. Through Universal Analytics, visits to Zillow and StreetEasy ended either: (i) after thirty minutes of user inactivity or at midnight; or (ii) through a campaign change. A visit ends through a campaign change if a visitor arrived via one campaign or source (for example, via a search engine or referring link on a third-party website), left the mobile application or website, and then returned via another campaign or source.
Current wording
Zillow and StreetEasy measure visits using an internal measurement tool, and Trulia measures visits with Adobe Analytics. Visits to Trulia end after thirty minutes of user inactivity. Visits to Zillow and StreetEasy end after thirty minutes of user inactivity or at midnight. From January 1, 2024 through June 30, 2024, we measured visits to StreetEasy using Google’s Universal Analytics. Since July 1, 2024, we have measured visits to StreetEasy using an internal measurement tool. Through Universal Analytics, visits to StreetEasy ended either: (i) after thirty minutes of user inactivity or at midnight; or (ii) through a campaign change. A visit ends through a campaign change if a visitor arrived via one campaign or source (for example, via a search engine or referring link on a third-party website), left the mobile application or website, and then returned via another campaign or source.
Previous wording
We believe the use of an internal measurement tool to measure visits to Zillow and StreetEasy allows us to maintain control over and provide greater insight into our end-to-end data as we enhance our broader long-term analytics strategy, while also becoming less reliant on third-party providers. We have recast prior period visits to Zillow to conform with the current period measurement methodology. The change in our measurement platform for visits resulted in an approximately 10% decrease in reported visits for both the three and nine month periods ended September 30, 2023, primarily driven by the methodology for campaign changes.
Current wording
We believe that using an internal measurement tool to measure visits to Zillow and StreetEasy allows us to maintain control over and provide greater insight into our end-to-end data as we enhance our broader long-term analytics strategy, while also becoming less reliant on third-party providers.
Previous wording
The following table presents the number of visits to our mobile applications and websites for the periods presented (in millions, except percentages), recast for prior periods, as described above:
Current wording
The following table presents the number of visits to our mobile applications and websites for the periods presented (in millions, except percentages):
Previous wording
Prior to January 1, 2024, we measured unique users for Zillow, StreetEasy and HotPads using Universal Analytics. As discussed above, Universal Analytics is no longer offered as of July 1, 2024 and has been replaced by Google Analytics 4. As a result of this change, from January 1, 2024 through June 30, 2024, we measured unique users for Zillow using an internal measurement tool, but continued to use Universal Analytics to measure unique users for StreetEasy and HotPads. As of July 1, 2024, we measure visits to Zillow, StreetEasy and HotPads using an internal measurement tool. Trulia continues to measure unique users with Adobe Analytics.
Current wording
Zillow, StreetEasy, and HotPads measure unique users using an internal measurement tool, and Trulia measures unique users with Adobe Analytics. From January 1, 2024 through June 30, 2024, we measured unique users for StreetEasy and HotPads using Google’s Universal Analytics. Since July 1, 2024, we have measured unique users for StreetEasy and HotPads using an internal measurement tool.
Previous wording
We believe the use of an internal measurement tool to measure unique users for Zillow, StreetEasy and HotPads allows us to maintain control over and provide greater insight into our end-to-end data as we enhance our broader long-term analytics strategy, while also becoming less reliant on third-party providers. We have recast prior period unique users for Zillow to conform to the current period measurement methodology. The change in our measurement platform for unique users resulted in an approximately 2% increase in reported unique users for both the three and nine month periods ended September 30, 2023.
Current wording
We believe that using an internal measurement tool to measure unique users of Zillow, StreetEasy and HotPads allows us to maintain control over and provide greater insight into our end-to-end data as we enhance our broader long-term analytics strategy, while also becoming less reliant on third-party providers.
Previous wording
The following table presents our average monthly unique users for the periods presented (in millions, except percentages), recast for prior periods, as described above:
Current wording
The following table presents our average monthly unique users for the periods presented (in millions, except percentages):
Previous wording
Loan origination volume is an important metric as it is a measure of how successful we are at the origination of mortgage loan products through our mortgage origination business, Zillow Home Loans, which directly impacts our Mortgages revenue. Loan origination volume represents the total value of mortgage loan originations closed through Zillow Home Loans during the period.
Current wording
Loan origination volume is an important metric as it is a measure of how successful we are at the origination of mortgage loan products through our Zillow Home Loans mortgage origination operations, which directly impacts our Mortgages revenue. Loan origination volume represents the total value of mortgage loan originations closed through Zillow Home Loans during the period.
Previous wording
During the three and nine month periods ended September 30, 2024, total loan origination volume increased 79% and 106%, respectively, compared to the three and nine month periods ended September 30, 2023. These increases were primarily driven by the continued growth in Zillow Home Loans purchase loan originations as we prioritize growth in Zillow Home Loans purchase originations.
Current wording
During the three months ended March 31, 2025, total loan origination volume increased 32%, compared to the three months ended March 31, 2024. This increase was primarily driven by the continued growth in Zillow Home Loans purchase loan originations inline with our strategic priorities.
Previous wording
•Residential revenue increased $43 million, or 12%. The increase in Residential revenue was partially driven by an 8% increase in Residential revenue per visit to $0.166 for the three months ended September 30, 2024 from $0.153 for the three months ended September 30, 2023, primarily due to the inclusion of revenue from Follow Up Boss, which we acquired in December 2023, growth in our Premier Agent revenue primarily due to continued improvement in our ability to convert connections into transactions, an increase in ShowingTime+ revenue as we expanded software services available to sellers and listing agents, and growth in our new construction revenue. We calculate Residential revenue per visit by dividing the revenue generated by our Residential offerings by the number of visits in the period. Residential revenue was also positively impacted by a 3% increase in the number of visits for the three months ended September 30, 2024 from the three months ended September 30, 2023. We expect Residential revenue to decrease in absolute dollars during the three months ending December 31, 2024, primarily due to the impact of seasonality on the residential real estate market.
Current wording
•Residential revenue increased $24 million, or 6%. The increase in Residential revenue was partially driven by a 4% increase in Residential revenue per visit to $0.177 for the three months ended March 31, 2025 from $0.170 for the three months ended March 31, 2024, primarily due to an increase in ShowingTime+ revenue as we expanded software services available to sellers and listing agents, and continued growth in Premier Agent and new construction revenue. We calculate Residential revenue per visit by dividing the revenue generated by our Residential offerings by the number of visits in the period. Residential revenue was also positively impacted by a 2% increase in the number of visits for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024.
Previous wording
•Mortgages revenue increased $15 million, or 63%. This increase was primarily driven by a $16 million increase in mortgage originations revenue. The increase in mortgage originations revenue was primarily due to a 79% increase in total loan origination volume to $819 million for the three months ended September 30, 2024 from $457 million for the three months ended September 30, 2023, primarily driven by continued growth in Zillow Home Loans purchase loan origination volume. The increase in mortgage originations revenue was also attributable to a 21% increase in gain on sale margin. Gain on sale margin represents the net gain on sale of mortgage loans divided by total loan origination volume for the period. Net gain on sale of mortgage loans includes all components related to the origination and sale of mortgage loans, including the net gain on sale of loans into the secondary market, loan origination fees, unrealized gains and losses associated with changes in fair value of IRLCs and mortgage loans held for sale, realized and unrealized gains or losses from derivative financial instruments and the provision for losses relating to representations and warranties.
Current wording
•Mortgages revenue increased $10 million, or 32%, driven by a $10 million increase in mortgage originations revenue. The increase in mortgage originations revenue was primarily due to a 32% increase in total loan origination volume to $796 million for the three months ended March 31, 2025 from $605 million for the three months ended March 31, 2024, primarily driven by continued growth in Zillow Home Loans purchase loan origination volume. The increase in mortgage originations revenue was also attributable to a 13% increase in gain on sale margin. Gain on sale margin represents the net gain on sale of mortgage loans divided by total loan origination volume for the period. Net gain on sale of mortgage loans includes all components related to the origination and sale of mortgage loans, including the net gain on sale of loans into the secondary market, loan origination fees, unrealized gains and losses associated with changes in fair value of IRLCs and mortgage loans held for sale, realized and unrealized gains or losses from derivative financial instruments and the provision for losses relating to representations and warranties.
Previous wording
•Rentals revenue increased $24 million, or 24%. The increase in Rentals revenue was primarily due to growth in average monthly rentals unique visitors, which increased 20% to 36 million during the three months ended September 30, 2024, from 30 million during the three months ended September 30, 2023. We have estimated average monthly rentals unique visitors using Comscore data as of September 2024, which measures average monthly unique visitors on rental listings on Zillow, Trulia and HotPads mobile apps and websites. The increase in Rentals revenue was also driven by a 4% increase in quarterly revenue per average monthly rentals unique visitor to $3.42 for the three months ended September 30, 2024, from $3.30 for the three months ended September 30, 2023, primarily driven by growth in multifamily property listings, which drove a 38% increase in multifamily rentals revenue. We calculate quarterly revenue per average monthly rentals unique visitor by dividing total Rentals revenue for the period by the average monthly rentals unique visitors for the period and then dividing by the number of quarters in the period.
Current wording
•Rentals revenue increased $32 million, or 33%. The increase in Rentals revenue was primarily due to a 20% increase in quarterly revenue per average monthly rentals unique visitor to $4.30 for the three months ended March 31, 2025 from $3.59 for the three months ended March 31, 2024, primarily driven by growth in multifamily property listings which drove a 47% increase in multifamily rentals revenue. We calculate quarterly revenue per average monthly rentals unique visitor by dividing total Rentals revenue for the period by the average monthly rentals unique visitors for the period and then dividing by the number of quarters in the period. The increase in Rentals revenue was also driven by growth in average monthly rentals unique visitors, which increased 11% to 30 million during the three months ended March 31, 2025, from 27 million during the three months ended March 31, 2024. We have estimated average monthly rentals unique visitors using Comscore data, which measures average monthly unique visitors on rental listings on Zillow, Trulia and HotPads mobile apps and websites. We expect Rentals revenue to increase in absolute dollars during the three months ending June 30, 2025, primarily driven by growth in multifamily revenue from the addition of new rental properties and higher spend per property, including our partnership with Redfin that went live at the end of April 2025.
Previous wording
The following table summarizes net loss and Adjusted EBITDA (in millions, except percentages):
Current wording
The following table summarizes net income (loss) and Adjusted EBITDA (in millions, except percentages):
Previous wording
To provide investors with additional information regarding our financial results, we have disclosed Adjusted EBITDA, a non-GAAP financial measure, in this Quarterly Report on Form 10-Q. We have provided a reconciliation below of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure.
Current wording
To provide investors with additional information regarding our financial results, we have disclosed Adjusted EBITDA, a non-GAAP financial measure, in this Quarterly Report on Form 10-Q. We have provided a reconciliation below of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure.
Previous wording
•Adjusted EBITDA does not reflect impairment and restructuring costs;
Current wording
•Adjusted EBITDA does not reflect impairment costs;
Previous wording
Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash-flow metrics, net loss and our other GAAP results.
Current wording
Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash-flow metrics, net income (loss) and our other GAAP results.
Previous wording
The following table presents a reconciliation of Adjusted EBITDA to net loss for each of the periods presented (in millions, unaudited):
Current wording
The following table presents a reconciliation of Adjusted EBITDA to net income (loss) for each of the periods presented (in millions, unaudited):
Previous wording
Gross profit increased by $124 million, or 11%, primarily due to an increase in revenue, discussed above. Total gross margin decreased from 79% to 77%.
Current wording
Gross profit increased by $53 million, or 13%, primarily due to an increase in revenue, discussed above. Total gross margin remained consistent at 77%.
Previous wording
Sales and marketing expenses consist of advertising costs and other sales expenses related to promotional and marketing activities, headcount-related expenses, including salaries, commissions, benefits, bonuses and share-based compensation expense for sales, sales support, customer support, including the customer connections team and mortgage loan officers and specialists, marketing and public relations employees, depreciation expense and amortization of certain intangible assets recorded in connection with acquisitions, including trade names and trademarks and customer relationships.
Current wording
Sales and marketing expenses consist of advertising costs and other sales expenses related to promotional and marketing activities, headcount-related expenses, including salaries, commissions, benefits, bonuses and share-based compensation expense for sales, sales support, customer support, including the customer connections team and mortgage loan officers and specialists, marketing and public relations employees, depreciation expense and amortization of certain acquired intangible assets, including trade names and trademarks and customer relationships.
Previous wording
Sales and marketing expenses increased $53 million, or 32%, due to increases of $25 million in marketing and advertising costs as we continue to invest in the growth of our rentals marketplace and $23 million in headcount-related expenses, including share-based compensation expense. We expect sales and marketing expenses to decrease in absolute dollars during the three months ending December 31, 2024 as marketing and advertising costs decrease in line with typical seasonal media spend.
Current wording
Sales and marketing expenses increased $32 million, or 19%, due to increases of $16 million in headcount-related expenses, including share-based compensation expense, as we continue to invest in human capital to grow our business, and $12 million in marketing and advertising costs as we continue to invest in the growth of our rentals marketplace. We expect sales and marketing expenses to increase in absolute dollars during the three months ending June 30, 2025, as we increase our marketing and advertising costs to support the growth of our rentals marketplace.
Previous wording
Technology and development expenses consist of headcount-related expenses, including salaries, benefits, bonuses and share-based compensation expense for individuals engaged in the design, development and testing of our products, mobile applications and websites and the tools and applications that support our products. Technology and development expenses also include equipment and maintenance costs and depreciation expense.
Current wording
Technology and development expenses consist of headcount-related expenses, including salaries, benefits, bonuses and share-based compensation expense for individuals engaged in the design, development and testing of our products, mobile applications and websites and the tools and applications that support our products. Technology and development expenses also include equipment and software maintenance costs and depreciation expense.
Previous wording
Technology and development expenses increased $3 million, or 2%, due primarily to an increase of $3 million in headcount-related expenses, including share-based compensation expense.
Current wording
Technology and development expenses increased $2 million, or 1%, due primarily to an increase of $2 million in software and hardware costs.
Previous wording
General and administrative expenses consist of headcount-related expenses, including salaries, benefits, bonuses and share-based compensation expense for executive, finance, accounting, legal, human resources, recruiting, corporate information technology costs and other administrative support. General and administrative expenses also include legal settlement costs and estimated legal liabilities, legal, accounting and other third-party professional service fees, rent expense, depreciation expense and bad debt expense.
Current wording
General and administrative expenses consist of headcount-related expenses, including salaries, benefits, bonuses and share-based compensation expense for executive, finance, accounting, legal, human resources, recruiting, corporate information technology costs and other administrative support. General and administrative expenses also include legal settlement costs and estimated legal liabilities, legal, accounting and other third-party professional service fees, rent expense, depreciation expense, change in the fair value of contingent consideration, and bad debt expense.
Previous wording
General and administrative expenses decreased $8 million, or 6%, primarily due to a $6 million decrease in third party professional service fees driven by active cost management and a $5 million decrease in rent expense primarily driven by cost savings associated with changes in the use of certain office space in our lease portfolio. These decreases were partially offset by an increase of $4 million due to the change in fair value of contingent consideration associated with our acquisition of Follow Up Boss.
Current wording
General and administrative expenses decreased $11 million, or 8%, due to decreases of $6 million in headcount-related expenses, including share-based compensation expense, $4 million in third party professional service fees driven by active cost management, and $2 million in facility expenses driven by cost savings associated with changes in the use of certain office space in our lease portfolio.
Previous wording
Other income, net consists primarily of interest income earned on our cash, cash equivalents and investments and fair value adjustments on an outstanding warrant.
Current wording
Other income, net consists primarily of interest income earned on our cash, cash equivalents and investments.
Previous wording
We are subject to income taxes in the United States (federal and state) and certain foreign jurisdictions. As of September 30, 2024 and December 31, 2023, we have provided a valuation allowance against our net deferred tax assets that we believe, based on the weight of available evidence, are not more likely than not to be realized. There is a reasonable possibility that within the next several years, sufficient positive evidence will become available to demonstrate that a significant portion of the valuation allowance against our U.S. net deferred tax assets will no longer be required. We have accumulated federal tax losses of approximately $1.4 billion as of December 31, 2023, which are available to reduce future taxable income. We have accumulated state tax losses of approximately $56 million (tax effected) as of December 31, 2023.
Current wording
We are subject to income taxes in the United States (federal and state) and certain foreign jurisdictions. As of March 31, 2025 and December 31, 2024, we have provided a valuation allowance against our net deferred tax assets that we believe, based on the weight of available evidence, are not more likely than not to be realized. There is a reasonable possibility that within the next several years, sufficient positive evidence will become available to demonstrate that a significant portion of the valuation allowance against our U.S. net deferred tax assets will no longer be required. We have accumulated federal tax losses of approximately $1.3 billion as of December 31, 2024, which are available to reduce future taxable income. We have accumulated state tax losses of approximately $66 million (tax effected) as of December 31, 2024.
Previous wording
Income tax expense was not material for the three and nine month periods ended September 30, 2024 and 2023.
Current wording
Income tax expense was not material for the three months ended March 31, 2025 and 2024.
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Previous report — wording carried elsewhere
Sales and marketing expenses increased $95 million, or 19%, due to increases of $52 million in headcount-related expenses, including share-based compensation expense, $33 million in marketing and advertising costs as we continue to invest in the growth of our rentals marketplace, and $4 million in travel expenses.