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.