Zillow Trending Lower Despite Boosted Guidance
Zillow (NASDAQ: Z) reported 68 percent year over year sales growth at $78.7 million. Wall Street was looking for $76.5 million, 2.9 percent below the actual figure.
Real estate led the way with 83 percent growth, followed by 53 percent growth in display revenue.
Zillow also reported record traffic with 89 million visitors in July. CEO Spencer Rascoff commented, “Advertisers are clearly following audience, and we're continuing to reinvest in the business to get the flywheel to spin even faster.”
Despite the top line beat, EPS disappointed investors at a $0.05 loss compared to the expected $0.04 loss. This compares to the $0.30 loss in the second quarter of 2013.
Related Link: What The Zillow & Trulia Merger Means For Move
Full year guidance was raised as a result of focusing on high-performing agents driving higher-than-expected sales. The company now sees revenue in the range of $321 million to $323 million compared to the initial estimate of $304 million to $308 million. The new figures are far above Wall Street’s $311.2 million estimate.
Zillow expects third quarter revenue in the range of $87 million to $88 million, 5.4 percent higher than the Wall Street consensus.
Shares of Zillow were last trading 0.74 percent lower at $140.01.
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