Segment Information and Revenue (Tables)

9 Months Ended

Sep. 30, 2020

This information is included in the following tables for the periods presented (in thousands, unaudited):


	Three Months Ended September 30, 2020						Three Months Ended September 30, 2019
	Homes		IMT		Mortgages		Homes		IMT		Mortgages
Revenue:
Zillow Offers	$	185,904	$	—	$	—	$	384,626	$	—	$	—
Premier Agent	—		298,673		—		—		240,698		—
Other	1,201		116,716		—		—		94,592		—
Mortgages	—		—		54,198		—		—		25,292
Total revenue	187,105		415,389		54,198		384,626		335,290		25,292
Costs and expenses:
Cost of revenue	179,804		28,448		7,972		370,796		24,318		4,721
Sales and marketing	32,714		102,902		15,210		49,186		118,514		13,647
Technology and development	28,273		90,536		8,491		20,651		94,656		8,667
General and administrative	20,334		53,547		12,014		22,174		55,749		10,570
Integration costs	—		—		—		—		—		5
Total costs and expenses (1)	261,125		275,433		43,687		462,807		293,237		37,610
Income (loss) from operations	(74,020)		139,956		10,511		(78,181)		42,053		(12,318)
Segment other income	—		—		636		—		—		344
Segment interest expense	(1,597)		—		(553)		(9,689)		—		(280)
Income (loss) before income taxes (2)	$	(75,617)	$	139,956	$	10,594	$	(87,870)	$	42,053	$	(12,254)


	Nine Months Ended September 30, 2020						Nine Months Ended September 30, 2019
	Homes		IMT		Mortgages		Homes		IMT		Mortgages
Revenue:
Zillow Offers	$	1,408,832	$	—	$	—	$	762,022	$	—	$	—
Premier Agent	—		732,741		—		—		690,394		—
Other	2,398		293,653		—		—		266,837		—
Mortgages	—		—		113,241		—		—		79,637
Total revenue	1,411,230		1,026,394		113,241		762,022		957,231		79,637
Costs and expenses:
Cost of revenue	1,343,791		76,153		19,023		733,947		74,628		13,829
Sales and marketing	152,180		319,101		39,791		107,457		380,608		42,302
Technology and development	89,729		278,740		22,606		51,130		276,886		24,058
General and administrative	65,657		166,185		31,849		54,339		181,270		31,497
Impairment costs	—		73,900		2,900		—		—		—
Integration costs	—		—		—		—		—		650
Total costs and expenses (1)	1,651,357		914,079		116,169		946,873		913,392		112,336
Income (loss) from operations	(240,127)		112,315		(2,928)		(184,851)		43,839		(32,699)
Segment other income	—		5,300		1,223		—		—		1,059
Segment interest expense	(13,506)		—		(1,086)		(19,346)		—		(668)
Income (loss) before income taxes (2)	$	(253,633)	$	117,615	$	(2,791)	$	(204,197)	$	43,839	$	(32,308)

(1) The following tables present depreciation and amortization expense and share-based compensation expense for each of our segments for the periods presented (in thousands, unaudited):


	Three Months Ended September 30, 2020						Three Months Ended September 30, 2019
	Homes		IMT		Mortgages		Homes		IMT		Mortgages
Depreciation and amortization expense	$	3,029	$	22,074	$	1,675	$	2,331	$	18,362	$	1,467
Share-based compensation expense	$	11,815	$	33,435	$	3,709	$	8,025	$	30,687	$	3,416


	Nine Months Ended September 30, 2020						Nine Months Ended September 30, 2019
	Homes		IMT		Mortgages		Homes		IMT		Mortgages
Depreciation and amortization expense	$	9,201	$	67,889	$	4,887	$	5,384	$	54,264	$	4,240
Share-based compensation expense	$	35,847	$	98,940	$	10,318	$	20,666	$	118,101	$	13,117

(2) The following table presents the reconciliation of total segment income (loss) before income taxes to consolidated income (loss) before income taxes for the periods presented (in thousands, unaudited):


	Three Months Ended September 30,				Nine Months Ended September 30, 2020
	2020		2019		2020		2019
Total segment income (loss) before income taxes	$	74,933	$	(58,071)	$	(138,809)	$	(192,666)
Corporate interest expense	(37,320)		(16,533)		(100,060)		(41,851)
Corporate other income	2,382		8,655		16,203		26,566
Gain on partial extinguishment of 2021 Notes	—		—		6,391		—
Consolidated income (loss) before income taxes	$	39,995	$	(65,949)	$	(216,275)	$	(207,951)

Reconciliation of Segment Gross Profit and Loss

The following table presents the reconciliation of total segment income (loss) before income taxes to consolidated income (loss) before income taxes for the periods presented (in thousands, unaudited):


	Three Months Ended September 30,				Nine Months Ended September 30, 2020
	2020		2019		2020		2019
Total segment income (loss) before income taxes	$	74,933	$	(58,071)	$	(138,809)	$	(192,666)
Corporate interest expense	(37,320)		(16,533)		(100,060)		(41,851)
Corporate other income	2,382		8,655		16,203		26,566
Gain on partial extinguishment of 2021 Notes	—		—		6,391		—
Consolidated income (loss) before income taxes	$	39,995	$	(65,949)	$	(216,275)	$	(207,951)