Zillow Beats Estimates on ‘Resilient’ Real Estate

Zillow posts 148% rise in revenue, says ‘there is light on the horizon.’
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Real-estate firm Zillow Group  (ZG) - Get Report  posted better-than-expected financial results for the first quarter after the bell Thursday as revenues proved strong in the face of the coronavirus pandemic.

The company reported revenue of $1.1 billion and a non-GAAP loss per diluted share of 25 cents.

Zillow had been expected to lose 33 cents a share, on sales of $1 billion, based on a FactSet survey of 19 analysts.

In the same period a year ago, the company posted a loss of 2 cents a share on sales of $454.1 million.

“Real estate is resilient as we're seeing clear signals that people are still shopping for homes and want to move," Rich Barton, CEO and co-founder of Zillow Group, said in a statement. "Our Q1 results met or beat our outlook on all measures.”

Zillow's results included only the first few weeks of coronavirus-forced shelter-in-place orders which have led to millions of Americans being laid off and forced to apply for unemployment. On Thursday new data showed more than 3 million additional unemployment claims were filed in the previous week.

Zillow said it sold 2,394 homes and purchased 1,479 homes through Zillow Offers in the quarter.

Traffic to Zillow Group's mobile apps and websites rose 6%, to 192.5 million average monthly unique users, from the same period last year.

The company said its 3-D home tours product positions it well “to enable seamless and safe transactions in a more virtual world. The virtual tools home shoppers need for safety today will become their expectations for convenience tomorrow."

Shares of Zillow rose $2.03, or 4.1%, to $50.59 in after-hours trading. The stock gained 11.8% during the regular session.