Zillow reported net loss of $6.3 million, or 16 cents a share, compared to a loss of $3.7 million, or 11 cents a share, in the same period one year earlier. Adjusted basic and diluted net income was 2 cents a share, compared to 1 cent a share in the same quarter one year earlier. The loss widened due increased advertising spending in order to draw more visitors to the site.
Analysts had expected a loss of 8 cents a share on revenue of $63.3 million.
Must Read: Warren Buffett's 10 Favorite Growth Stocks
Zillow also noted record quarterly and all-time traffic and set a record with almost 79 million monthly unique users on mobile and Web in April 2014. This marked a 50% year-over-year increase.
Separately, TheStreet Ratings team rates ZILLOW INC as a "sell" with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZILLOW INC (Z) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."