Zillow raised revenue guidance and set a share buyback after the closing bell Thursday.
The company estimated fourth-quarter revenue in its homes segment of $2.3 billion to $2.9 billion, compared to its previous estimate ranging from $1.7 billion to $2.1 billion as it winds down its Zillow Offers home flipping business.
The board also agreed to a share repurchase of a maximum of $750 million for its Class A shares, Class C shares or a combination of the two.
"(We) recognize that no longer operating Zillow Offers will allow us to have a more capital-efficient balance sheet and business moving forward," Zillow CEO Rich Barton said in a statement.
The End of iBuying
Zillow’s homebuying business, which was started in 2017, lost $381 million during the third quarter. The company halted its homebuying program in November and laid off 25% of its employees.
The company’s stock has fallen by as much as 60% since in said it would exit the business.
Zillow said it had already sold over 50% of the homes it had purchased during its Zillow Offers homebuying program. By the end of the third quarter Zillow said it owned 9,790 homes and had 8,172 homes under contract.
The company's shares rose by over 10% to $59.49 in after-hours trading.