Zillow Group, Inc. (NASDAQ: ZG) released its first-quarter FY22 earnings on Thursday, May 5, 2022, after the market closed. The company beat the EPS estimates by a huge 104.77% and reported an EPS of $0.60. However, despite the strong earnings the ZG stock reached its 52-week low of $33.26.
- Zillow Group’s Q1 results met or exceeded the company’s outlook at a consolidated level and for all three reportable segments.
- Consolidated Q1 revenue was $4.3 billion.
- IMT segment revenue grew 10% year over year to $490 million, above the $487 million midpoint of the company’s outlook range.
- Premier Agent revenue grew 9% year over year to $363 million, meeting the midpoint of the company’s outlook range.
- Rentals revenue decreased 5% year over year to $61 million.
- Homes segment revenue of $3.7 billion exceeded the company’s outlook as the wind-down of its iBuying operations continued to progress faster than anticipated.
- Mortgages segment revenue was $46 million, near the midpoint of the company’s outlook range, as rising interest rates impacted refinance activity more than expected.
- Consolidated GAAP net income was $16 million in Q1. Segment income (loss) before income taxes was $108 million, $(68) million and $(27) million for the IMT, Homes and Mortgages segments, respectively.
- Consolidated Adjusted EBITDA of $220 million exceeded the high end of the company’s Q1 outlook range, with segment-level Adjusted EBITDA for the IMT and Homes segments exceeding the company’s outlook range and Adjusted EBITDA for the Mortgages segment at the upper end of the company’s Q1 outlook. Adjusted EBITDA by segment was $209 million, $23 million and $(12) million for the IMT, Homes and Mortgages segments, respectively.
The ZG stock was down by 3.00% and traded at $37.88 (down by 1.17 points) at 11:01 a.m. EDT in the market trading session today. The market capitalization of the stock stood at $9.6 billion. The share volume traded for the ZG stock was 2,138,485, almost double of the average share volume of 1,067,545.