Zillow Group: Initiation of Coverage- Riding a 56% Rentals Revenue Surge—Will Partnerships Unlock Even Bigger Gains?

Zillow Group’s recent quarterly performance highlights several strategic advancements and operational successes alongside some challenges that offer a comprehensive view of its current and future growth trajectory. Zillow Group reported a 15% year-over-year increase in total revenue, reaching $655 million for the second quarter, surpassing their predicted outlook. This growth is an encouraging sign, especially when paired with the attainment of a positive net income for the second consecutive quarter. The company credits this growth to its dominant “For Sale” and “Rentals” segments, where it has been gaining market share. Notably, the “For Sale” revenue rose by 9%, and within this segment, the mortgage revenue increased by an impressive 41%, driven largely by initiatives through Zillow Home Loans.