EX-99.2 3 q12024992.htm EX-99.2 Document

Exhibit 99.2


Reported Consolidated Results

ZILLOW GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)
March 31, 2024December 31, 2023
Assets
Current assets:
Cash and cash equivalents$1,439 $1,492 
Short-term investments1,478 1,318 
Accounts receivable, net100 96 
Mortgage loans held for sale132 100 
Prepaid expenses and other current assets170 140 
Restricted cash3 3 
Total current assets3,322 3,149 
Contract cost assets23 23 
Property and equipment, net343 328 
Right of use assets66 73 
Goodwill2,817 2,817 
Intangible assets, net232 241 
Other assets20 21 
Total assets$6,823 $6,652 
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable$34 $28 
Accrued expenses and other current liabilities104 107 
Accrued compensation and benefits47 47 
Borrowings under credit facilities123 93 
Deferred revenue58 52 
Lease liabilities, current portion27 37 
Convertible senior notes, current portion608 607 
Total current liabilities1,001 971 
Lease liabilities, net of current portion92 95 
Convertible senior notes, net of current portion1,001 1,000 
Other long-term liabilities64 60 
Total liabilities2,158 2,126 
Shareholders’ equity:
Class A common stock
— — 
Class B common stock
— — 
Class C capital stock
— — 
Additional paid-in capital6,469 6,301 
Accumulated other comprehensive loss(11)(5)
Accumulated deficit(1,793)(1,770)
Total shareholders’ equity4,665 4,526 
Total liabilities and shareholders’ equity$6,823 $6,652 



ZILLOW GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except share data, which are presented in thousands, and per share data, unaudited)
 Three Months Ended
March 31,
 20242023
Revenue$529 $469 
Cost of revenue (1)
123 92 
Gross profit406 377 
Operating expenses:
Sales and marketing (1)
166 156 
Technology and development (1)
147 137 
General and administrative (1)
132 123 
Impairment costs6 6 
Total operating expenses451 422 
Loss from operations(45)(45)
Other income, net33 32 
Interest expense(9)(9)
Loss before income taxes(21)(22)
Income tax expense(2)— 
Net loss$(23)$(22)
Net loss per share - basic and diluted$(0.10)$(0.09)
Weighted-average shares outstanding - basic and diluted234,695 234,425 
(1) Includes share-based compensation expense as follows:
Cost of revenue$4 $4 
Sales and marketing18 16 
Technology and development42 39 
General and administrative44 44 
Total share-based compensation$108 $103 
Adjusted EBITDA (2)$125 $104 
(2) Adjusted EBITDA is a non-GAAP financial measure; it is not calculated or presented in accordance with U.S. generally accepted accounting principles, or GAAP. See Exhibit 99.1 for more information regarding our presentation of Adjusted EBITDA and for a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, for each of the periods presented.


ZILLOW GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions, unaudited)
 Three Months Ended
March 31,
 20242023
Operating activities
Net loss$(23)$(22)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization56 40 
Share-based compensation108 103 
Amortization of right of use assets3 6 
Amortization of contract cost assets5 6 
Amortization of debt issuance costs2 1 
Impairment costs6 6 
Accretion of bond discount(8)(10)
Other adjustments to reconcile net loss to net cash provided by operating activities 1 2 
Changes in operating assets and liabilities:
Accounts receivable(4)(3)
Mortgage loans held for sale(32)(7)
Prepaid expenses and other assets(30)(27)
Contract cost assets(5)(6)
Lease liabilities(13)(8)
Accounts payable6 — 
Accrued expenses and other current liabilities— 10 
Accrued compensation and benefits— (3)
Deferred revenue6 5 
Other long-term liabilities2 — 
Net cash provided by operating activities80 93 
Investing activities
Proceeds from maturities of investments139 433 
Purchases of investments(297)(490)
Purchases of property and equipment(39)(31)
Purchases of intangible assets(7)(9)
Net cash used in investing activities(204)(97)
Financing activities
Net borrowings on warehouse line of credit and repurchase agreements30 5 
Repurchases of Class A common stock and Class C capital stock(9)(86)
Proceeds from exercise of stock options50 13 
Net cash provided by (used in) financing activities71 (68)
Net decrease in cash, cash equivalents and restricted cash during period(53)(72)
Cash, cash equivalents and restricted cash at beginning of period1,495 1,468 
Cash, cash equivalents and restricted cash at end of period$1,442 $1,396 
Supplemental disclosures of cash flow information
Noncash transactions:
Capitalized share-based compensation$19 $18 
Write-off of fully depreciated property and equipment9 7 



Non-GAAP Net Income per Share
Our presentation of non-GAAP net income per share excludes the impact of the results of share-based compensation, impairment costs and income taxes. This measure is not a key metric used by our management and board of directors to measure operating performance or otherwise manage the business. However, we provide non-GAAP net income per share as supplemental information to investors, as we believe the exclusion of the results of share-based compensation, impairment costs and income taxes facilitates investors’ operating performance comparisons on a period-to-period basis. You should not consider non-GAAP net income per share in isolation or as a substitute for analysis of our results as reported under GAAP.

The following table sets forth a reconciliation of non-GAAP net income, adjusted, to net loss, as reported on a GAAP basis, and the calculation of non-GAAP net income per share - basic and diluted, for each of the periods presented (in millions, except share data, which are presented in thousands, and per share data, unaudited):
Three Months Ended
March 31,
 20242023
Net loss, as reported
$(23)$(22)
Share-based compensation108 103 
Impairment costs
6 6 
Income taxes2 — 
Net income, adjusted$93 $87 
Non-GAAP net income per share:
Basic$0.40 $0.37 
Diluted$0.36 $0.35 
Weighted-average shares outstanding:
Basic234,695 234,425 
Diluted266,370 262,665 
Diluted non-GAAP net income per share for the periods presented is calculated using diluted weighted-average shares outstanding, which includes potential shares of Class C capital stock for the periods in which their effect would have been dilutive. The potential shares of Class C capital stock were excluded from the calculation of non-GAAP net income per share for certain periods presented if their effect would have been antidilutive. The following table reconciles the denominators used in the basic and diluted non-GAAP net income per share calculations (in thousands, unaudited):
Three Months Ended
March 31,
 20242023
Denominator for basic calculation234,695 234,425 
Effect of dilutive securities:
     Option awards3,191 1,265 
     Unvested restricted stock units3,038 1,529 
Convertible senior notes due in 2024 and 202625,446 25,446 
          Denominator for dilutive calculation266,370 262,665 




Key Metrics
The following table presents our visits and average monthly unique users for the periods presented (in millions, except percentages):
 Three Months Ended
March 31,		2023 to 2024
% Change
 20242023
Visits (1)2,316 2,238 3%
Average monthly unique users (2)217 217 —%
(1) Visits includes groups of interactions by users with the Zillow, Trulia and StreetEasy mobile apps and websites. Zillow measures visits with an internal measurement tool, StreetEasy measures visits with Google Analytics and Trulia measures visits with Adobe Analytics.
(2) Zillow measures unique users with an internal measurement tool, StreetEasy and HotPads measure unique users with Google Analytics, and Trulia measures unique users with Adobe Analytics.
See below under the header “Selected Historical Data” for further discussion regarding our traffic measurement tools as well as the recast of visits and unique users for certain historical periods.

The following table presents loan origination volume by purpose and in total for Zillow Home Loans for the periods presented (in millions, except percentages):
Three Months Ended
March 31,		2023 to 2024
% Change
20242023
Purchase loan origination volume$601 $259 132%
Refinance loan origination volume4 3 33%
Total loan origination volume$605 $262 131%
Selected Historical Data

Prior to January 1, 2024, we measured visits and unique users for Zillow using the Universal Analytics version of Google Analytics’ traffic measurement platform. Universal Analytics will no longer be offered as of July 1, 2024 and will be replaced by Google Analytics 4. As a result of this change, beginning on January 1, 2024, we measure visits and unique users for Zillow using an internal measurement tool. We have recast prior period visits and unique users to conform with the current period measurement methodology.

The following table presents the recast of visits and unique users for each of the periods presented (in millions):

Three Months Ended
 March 31,
2023		June 30,
2023		September 30,
2023		December 31,
2023
Visits2,238 2,391 2,366 1,988 
Average monthly unique users217 232 230 199