NEW YORK (TheStreet) –– Zillow (Z) shares fell an additional 2.6% in afterhours trading, as the company missed earnings estimates despite it continuing to experience strength in the online real estate market, as the company continues to invest for the long haul.
Seattle-based Zillow reported a loss of an adjusted 5 cents a share on $78.7 million in revenue, up 68% year over year. The company's Marketplace segment, which includes real estate and mortgages, saw a 72% jump year over year to $62.6 million. Display revenue increased 53% to a record $16.1 million from $10.5 million in the second quarter.
On a GAAP basis, Zillow lost 26 cents a share. The company added 3,850 Premier Agent advertisers during the quarter, bringing the total to 56,818, as average revenue per agent (ARPA) reached $320, up from $266 in the year ago quarter.
Analysts surveyed by Thomson Reuters were expecting an adjusted loss of 4 cents on $76.52 million in revenue.
"We had our strongest quarter yet with record consumer traffic and record revenue and bookings by Premier Agent advertisers," said CEO Spencer Rascoff said in a press release. "Our deliberate focus on highperforming agents and their teams drove the significant increase in orders, and has prompted us to increase our full-year outlook. Advertisers are clearly following audience, and we're continuing to reinvest in the business to get the flywheel to spin even faster."
The company noted that adjusted EBITDA came in at $6.2 million, up from $5.3 million in the year ago quarter. Shares were moving lower in after-hours trading, falling 1.5% to trade at $139.00.