What happened
Both share classes of Zillow Group (Z -0.46%) (ZG -0.69%) blew past the market on Friday. Gains were to be expected, as the online real estate broker posted beats on both the top and bottom lines in Q1 results published after trading hours on Thursday.
Image source: Getty Images.
So what
For the quarter, Zillow's total revenue rose 148% on a year-over-year basis to nearly $1.13 billion. The company's generally accepted accounting principles (GAAP) net loss deepened to $163 million, from the year-ago shortfall of almost $68 million. On a non-GAAP (adjusted), per-share basis the Q1 2020 deficit was $0.25.
On average, analysts were estimating $1.0 billion on the top line and an adjusted per-share net loss of $0.33.
Zillow's growth was powered by a dramatic increase in the take for its Homes segment, in particular, the Zillow Offers express home-sale and buying service. Zillow Offers is quickly becoming an important earner for the company; its revenue rose almost 500% to more than $769 million in Q1. That was 68% of total company revenue for the period.
Now what
In March, Zillow pulled its full-year guidance and has only offered piecemeal forecasts for the current quarter. All in all, though, it's bullish about its proximate future. In the earnings release, it said that it's learned that "real estate is resilient as we're seeing clear signals that people are still shopping for homes and want to move."
