Zillow Shares Recover on Earnings Beat

NEW YORK (TheStreet) - First-quarter earnings at Zillow (Z) the consumer online real estate service, exceeded Wall Street's expectations, along with record traffic in the quarter.

Zillow reported a first-quarter net loss on a GAAP basis of $6.26 million, or 16 cents a share, compared to a loss of $3.75 million, or 11 cents a share, primarily related to increases in advertising spending, the Seattle-based company said on Wednesday. On a non-GAAP basis though, the company posted an adjusted net income of $873 million, or 2 cents a share, compared to $399 million, or 1 cent a share, in the year earlier quarter. Non-GAAP earnings do not include share-based compensation expenses.

Zillow had record revenue in the March-ending quarter, up 70% from the year prior quarter to $66.2 million, a record for the Seattle-based company. Analysts, according to Thomson Reuters, expected the company to post a loss of 8 cents a share on revenue of $63 million.

Shares were rising 2.6% to $96.11 in post-markets trading following a day in which the stock fell 9% to $93.63 as tech stocks listed on the Nasdaq also fell.

The company also boasted that traffic to the site hit a quarterly and all-time record of 77 million at quarter's end and in April traffic hit 79 million unique users, up 50% year over year, driven by its mobile and Web platforms. More than 460 million homes were viewed on Zillow via a mobile device, which equates to 178 homes per second, the company said.

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