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What: Shares of Zillow (NASDAQ:ZG) got crushed today by as much as 11% after the company announced earnings results

So what: Revenue in the first quarter hit a new record of $39 million. That top line beat expectations of $37.4 million, and earnings per share were better than expected. Zillow lost $0.11 per share, which was better than the  $0.13 per share in red ink that investors were expecting. However, Goldman Sachs downgraded shares from "buy" to "neutral," which likely added pressure to the stock today.
Now what: The increased expenses this past quarter were related in part to acquisitions made at the end of 2012, which required increased investments in marketing and operating costs. Share-based compensation was also up. And on the bright side, Zillow boosted its full-year outlook and now expects revenue in the range of $178 million to $182 million.

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Editor's note: Many analysts expected Zillow to lose $0.13 per share rather than the $0.03 per share mentioned in a previous version. The Fool regrets the error.

Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends Zillow. The Motley Fool owns shares of Zillow. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.