Zillow Group (NASDAQ:ZG) shares soared more than 5% after-hours following the company’s reported Q1 results, with revenue of $469 million (down 13% year-over-year) beating the consensus estimate of $425.11M.
Residential revenue fell 14% year-over-year to $361M, driven primarily by lower Premier Agent revenue as a result of weakness in the overall housing market. Meanwhile, rentals revenue grew 21% to $74M boosted by strong traffic and growth in multifamily properties. Mortgages revenue fell 43% year-over-year to $26M due to higher interest rates that slowed refinance activity and impacted revenue for both the company’s mortgage marketplace and Zillow Home Loans.
"We're starting to see our investments pay off, with Q1 financial results that outperformed the top end of our outlook," said CEO Rich Barton.
The company expects Q2/23 revenue in the range of $451M-$479M, compared to the consensus of $456.8M.