Shares of online real estate platform Zillow Group (Z) - Get Report fell on Thursday after the company posted a narrower-than-expected second-quarter loss but provided lower guidance on third-quarter revenue, particularly from its home-flipping business.

Shares of Zillow were down 13.9%, or $6.56 a share, at $43.19 in early trading on Thursday after the company reported a second-quarter adjusted loss of $28.3 million, or 14 cents a share, vs. adjusted earnings of $25.9 million, or 13 cents a share, a year earlier.

Analysts polled by FactSet had been expecting a loss of 16 cents a share. Revenue came in at $599.6 million, above the $590.6 million expected by analysts.

Of focus for investors, however, was Zillow's $56.5 million loss before interest, taxes, depreciation and amortization (EBITDA) in its Homes segment, which includes Zillow Offers, an algo-driven home-flipping service where buyers and sellers can interact directly.

As well, the company warned that that its Premier Agent business, which lets agents pay to be connected with potential home buyers, will lose as much as $80 million in the third quarter before EBITDA.

Overall, the home-search company is projecting third-quarter adjusted EBITDA of between an $18 million loss and a $2 million gain. That compares to a consensus estimate of $17 million, based on the average forecast of analysts polled by Factset.

Analysts were quick to downgrade Zillow following the earnings announcement. 

Susquehanna analyst Shyam Patil lowered his stock price target to $42 from $45, noting the company's latest results reflect the challenges it faces in luring home buyers and sellers away from traditional real estate sales methodologies - and making money doing it.

Canaccord Genuity analyst Maria Ripps also reduced her price target to $62 from $65, though kept her buy rating on the stock, while KeyBanc Capital analyst Brad Erikson cut his target to $56 from $63, though kept his rating at overweight.