NEW YORK (TheStreet) -- Zillow (Z) was plunging after regular market trading on Wednesday as the online real estate marketplace offered revenue forecasts for the current quarter that fell short of analyst expectations. Investors took issue with the slowing growth of display advertising, which Zillow said is likely to continue into the fourth quarter.
Seattle-based Zillow forecast revenue for the fourth-quarter as high as $90 million, short of the $91 million projected by sell-side analysts surveyed by Bloomberg. The company said full-year revenue is expected to fall within the range of $322.5 million to $323.5 million, also short of analysts' estimate of $324.1 million.
Shares were tumbling 9.4% in after-market trading after closing at $103.77, a 27% advance for 2014.
Zillow reported a gain of an adjusted 13 cents a share on $88.6 million in revenue, up 66% year over year. Zillow's Marketplace segment, which includes the company's real estate and mortgages segments, jumped 77% year over year to $72.7 million. Display revenue, otherwise known as advertising, grew 30% to $16 million. Analysts surveyed by Thomson Reuters were expecting an adjusted gain of 8 cents on $88 million in revenue.
On a GAAP basis, Zillow lost 40 cents a share with results negatively impacted by costs associated with its pending purchase of online real-estate rival Trulia. CEO Spencer Rascoff told TheStreet Wednesday afternoon he expects the all-stock deal for Trulia to close in the first half of 2015. The deal is currently under review by the Federal Trade Commission.
Zillow added 4,059 Premier Agent advertisers during the quarter, bringing the total to 60,877, as average revenue per agent (ARPA) reached $349, up from $320 in the second quarter.