Revenue in the period jumped 117% from a year earlier to $745.2 million and easily topped forecasts of $714 million.
Zillow said revenue from its homes segment, which includes the buying and selling of homes, rose to $384.6 million from just $11.1 million a year earlier. The company sold 1,211 homes and bought 2,291 homes in the third quarter.
The company reported a third-quarter loss of $64.6 million, wider than a year-earlier loss of $492,000 but narrower than forecasts that called for a loss of $90.3 million. Zillow's loss in its homes segment was $87.9 million.
"The third quarter marks the first time home segment exceeded our IMT revenue coming in at $385 million ahead of our outlook and up from just $11 million in the third quarter of 2018," said Rich Barton, co-founder and CEO. "During the quarter we purchased nearly 2,300 homes and sold more than 1,200 homes."
The company said it expects revenue of as much as $1.25 billion in 2019 from its home-flipping business, leading the company to anticipate revenue for the year of $2.59 billion to $2.62 billion, above Wall Street estimates of $2.53 billion and sharply higher than 2018 revenue of $1.33 billion.
Zillow said it expects fourth-quarter revenue of $790 million to $825 million, above expectations of $751 million.
Tired: Fantasy leagues— Zillow (@zillow) November 4, 2019
Wired: Fantasy homes https://t.co/ipeKadYt3D
The price target on shares of Zillow was cut to $63 a share from $65 by analysts at KeyBanc, who maintained their overweight rating on the stock.
Zillow's class C shares jumped 11.1% to $37.15 in trading Friday. The class A shares rose 19.85% to $37.04.