What happened

Shares of Zillow Group Inc. (NASDAQ:Z) (NASDAQ:ZG) were down 9.8% as of 1:30 p.m. EDT Wednesday after the online real estate platform company announced strong second-quarter results, but followed with light forward guidance.

So what

Zillow's quarterly revenue climbed 28.1% year over year to $266.9 million, led by 29% growth in Premier Agent revenue to $189.7 million. Zillow also saw monthly unique users climb 6% year over year to more than 178 million, including an all-time high of 182 million users in May. On the bottom line, that translated to adjusted net income of $7.4 million, or $0.04 per share, swinging from a net loss of $0.71 per share in last year's second quarter. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) arrived at $39.7 million. 

These results exceeded Zillow's most recent financial guidance, which called for revenue of $257 million to $262 million, and lower adjusted EBITDA of $27 million to $32 million. And analysts, on average, were anticipating Zillow would turn in an adjusted net loss of $0.01 per share.

Zillow homepage screenshot with homes in the background

Image source: Zillow Group.

For the current (third) quarter, however, Zillow expects revenue of $273 million to $278 million -- below the $280.5 million investors were expecting. Even so, Zillow increased the lower ends of its full-year guidance to call for revenue of $1.055 billion to $1.065 billion (up from $1.050 billion to $1.065 billion previously), and adjusted EBITDA of $220 million to $230 million (up from $215 million to $230 million before).

Now what

Putting aside Zillow's light third-quarter revenue guidance -- and noting the company has made a habit of beating expectations and increasing its full-year guidance for the past several quarters -- there was nothing not to like about Zillow's report today. I think long-term Zillow investors should be pleased with the company's position.

Steve Symington has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Zillow Group (A shares) and Zillow Group (C shares). The Motley Fool has a disclosure policy.