Shares of Zillow Group surged on Thursday following the company’s announcement of a new CEO and its better-than-expected second-quarter financial results. The real estate services firm revealed a narrower loss of $0.07 per share, significantly less than the previous year and well below analysts’ forecasts. Revenue for the quarter increased by 13% to $572 million, surpassing expectations.
Residential revenue rose 8% to $409 million, driven by enhanced connections between high-intent customers and Premier Agent partners. Rentals revenue surged 29% to $117 million, largely due to a 44% increase in multi-family revenue. Mortgage revenue grew 42% to $34 million, with a notable rise in purchase loan origination volume.
Zillow’s mobile apps and sites attracted 231 million average monthly unique users, maintaining steady engagement, while visits increased by 4% to 2.5 billion.
In a significant leadership change, COO Jeremy Wacksman has been appointed as the new CEO, replacing co-founder Rich Barton, who will now serve as Co-Executive Chair alongside Lloyd Frink.
The announcement boosted Zillow’s shares by 20% in late trading, although the stock remains down 14% year-to-date.
