(Updates from 12:11 p.m. ET with closing information.)
NEW YORK (TheStreet) -- Zillow (Z) shares plunged 8.26% to $83.22 after the online real estate advertising company posted earnings that beat Wall Street estimates, though compensation expenses rose in the quarter.
Seattle-based Zillow reported a non-GAAP profit of 1 cent per share $46.9 million in revenue as Marketplace Revenue rose 86% year-over-year to $36.5 million. Analysts polled by Thomson Reuters were expecting the company to report a second-quarter loss of 11 cents a share on $44.41 million in revenue.
However, the company had $7.1 million in stock-based compensation during the quarter, causing the company to have a GAAP net loss of $10.2 million compared to net income of $1.3 million in the second quarter of 2012, reporting a GAAP loss of 30 cents per share. The confusion over the reporting may have caused some of the stumble in the stock price.CEO Spencer Rascoff, in a phone interview with The Street, defended the results. "It was a tremendous quarter," Rascoff said. "We crushed revenue, we had record traffic, the highest ever net adds. It's being driven by mobile, where we had 120 homes viewed per second, up from 63 homes a year ago. Now, we're just starting to monetize rental in the past few weeks. We're firing on all cylinders."
Facebook (FB) shares fell 1.14% to $38.11 following the company's completion of the launch of a new search mechanism, Graph Search. In a press release, the Menlo Park, Calif.-based social network announced that Graph Search is now available to every member using Facebook in US English. Graph Search allows users to search for people and pages both by name and by keywords and phrases. Facebook included such examples as "Restaurants in New York liked by graduates of the Culinary Institute of America" and "Friends of friends who live nearby and like playing tennis." Facebook also added that it was phasing out its old privacy settings. New controls were introduced in December.
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