What happened 

Shares of Zillow Group (Z -2.11%) (ZG -1.78%) were sliding today after the company reported its second-quarter results. While its top- and bottom-line results beat Wall Street's expectations, investors were disappointed with its third-quarter guidance.

As a result, the housing stock was down by 1.6% at the end of the trading day.

So what 

Zillow reported non-GAAP (adjusted) earnings per share of $0.47, which was up from $0.44 in the year-ago quarter and ahead of analysts' average estimate of $0.35 per share. 

A brown house.

Image source: Getty Images.

The company's sales of $1 billion in the quarter also outpaced Wall Street's consensus estimate of $985 million. 

But investors were disappointed that the company's revenue was down 23% from the year-ago quarter and that management issued worse-than-expected revenue guidance for the third quarter. 

Zillow's revenue outlook for the third quarter is in the range of $431 million to $461 million, which is far below Wall Street's expectation of $563.9 million and down from $1.7 billion in the year-ago quarter. 

Now what 

Zillow co-founder and CEO Rich Barton said in a press release, "Despite the challenges of the macroeconomic environment, we're making strides in key growth areas." 

But investors appear to disagree. The company's slowing revenue, along with a difficult housing market, have led investors to send Zillow's stock down 66% over the past 12 months. 

And with the company's latest quarterly results disappointing investors, it's clear Zillow still has its work cut out for it.