EX-99.2 3 q32024992.htm EX-99.2 Document

Exhibit 99.2


Reported Consolidated Results

ZILLOW GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)
September 30, 2024December 31, 2023
Assets
Current assets:
Cash and cash equivalents$1,072 $1,492 
Short-term investments1,101 1,318 
Accounts receivable, net117 96 
Mortgage loans held for sale164 100 
Prepaid expenses and other current assets212 140 
Restricted cash3 3 
Total current assets2,669 3,149 
Contract cost assets24 23 
Property and equipment, net356 328 
Right of use assets61 73 
Goodwill2,818 2,817 
Intangible assets, net211 241 
Other assets20 21 
Total assets$6,159 $6,652 
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable$53 $28 
Accrued expenses and other current liabilities114 107 
Accrued compensation and benefits49 47 
Borrowings under credit facilities148 93 
Deferred revenue57 52 
Lease liabilities, current portion15 37 
Convertible senior notes, current portion418 607 
Total current liabilities854 971 
Lease liabilities, net of current portion86 95 
Convertible senior notes, net of current portion497 1,000 
Other long-term liabilities66 60 
Total liabilities1,503 2,126 
Shareholders’ equity:
Class A common stock
— — 
Class B common stock
— — 
Class C capital stock
— — 
Additional paid-in capital6,482 6,301 
Accumulated other comprehensive income (loss)4 (5)
Accumulated deficit(1,830)(1,770)
Total shareholders’ equity4,656 4,526 
Total liabilities and shareholders’ equity$6,159 $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
September 30,		Nine Months Ended
September 30,
 2024202320242023
Revenue$581 $496 $1,682 $1,471 
Cost of revenue (1)
140 110 393 306 
Gross profit441 386 1,289 1,165 
Operating expenses:
Sales and marketing (1)
217 164 588 493 
Technology and development (1)
145 142 436 419 
General and administrative (1)
123 131 386 407 
Impairment and restructuring costs— 1 6 9 
Acquisition-related costs1 1 1 2 
Total operating expenses486 439 1,417 1,330 
Loss from operations(45)(53)(128)(165)
Loss on extinguishment of debt— — (1)— 
Other income, net34 34 101 108 
Interest expense(9)(9)(28)(27)
Loss before income taxes(20)(28)(56)(84)
Income tax expense— — (4)(1)
Net loss$(20)$(28)$(60)$(85)
Net loss per share - basic and diluted$(0.08)$(0.12)$(0.26)$(0.36)
Weighted-average shares outstanding - basic and diluted232,521 233,295 233,553 235,560 
(1) Includes share-based compensation expense as follows:
Cost of revenue$3 $4 $11 $12 
Sales and marketing19 18 57 53 
Technology and development40 42 124 123 
General and administrative46 45 137 154 
Total share-based compensation$108 $109 $329 $342 
Adjusted EBITDA (2)$127 $107 $386 $322 
(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)
 Nine Months Ended
September 30,
 20242023
Operating activities
Net loss$(60)$(85)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization178 134 
Share-based compensation329 342 
Amortization of right of use assets8 18 
Amortization of contract cost assets14 16 
Amortization of debt issuance costs4 4 
Impairment costs6 6 
Accretion of bond discount(23)(29)
Other adjustments to reconcile net loss to net cash provided by operating activities 14 (3)
Changes in operating assets and liabilities:
Accounts receivable(21)(26)
Mortgage loans held for sale(64)(55)
Prepaid expenses and other assets(73)(22)
Contract cost assets(15)(16)
Lease liabilities(31)(24)
Accounts payable25 7 
Accrued expenses and other current liabilities8 (3)
Accrued compensation and benefits2 4 
Deferred revenue5 4 
Other long-term liabilities— (4)
Net cash provided by operating activities306 268 
Investing activities
Proceeds from maturities of investments906 1,136 
Proceeds from sales of investments13 — 
Purchases of investments(668)(638)
Purchases of property and equipment(109)(101)
Purchases of intangible assets(21)(24)
Cash paid for acquisitions, net— (34)
Net cash provided by investing activities121 339 
Financing activities
Net borrowings on warehouse line of credit and repurchase agreements55 54 
Repurchases of Class A common stock and Class C capital stock(301)(336)
Settlement of long-term debt(697)— 
Proceeds from exercise of stock options96 56 
Net cash used in financing activities(847)(226)
Net increase (decrease) in cash, cash equivalents and restricted cash during period(420)381 
Cash, cash equivalents and restricted cash at beginning of period1,495 1,468 
Cash, cash equivalents and restricted cash at end of period$1,075 $1,849 
Supplemental disclosures of cash flow information
Noncash transactions:
Capitalized share-based compensation$56 $56 
Write-off of fully depreciated property and equipment63 29 
Write-off of fully amortized intangible assets21 4 
Value of Class C capital stock issued in connection with an acquisition— 20 


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 and restructuring costs, acquisition-related costs, loss on extinguishment of debt and income taxes. This measure is not a key metric used by our management or 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 and restructuring costs, acquisition-related costs, loss on extinguishment of debt 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
September 30,		Nine Months Ended
September 30,
 2024202320242023
Net loss, as reported
$(20)$(28)$(60)$(85)
Share-based compensation108 109 329 342 
Impairment and restructuring costs
— 1 6 9 
Acquisition-related costs
1 1 1 2 
Loss on extinguishment of debt
— — 1 — 
Income taxes— — 4 1 
Net income, adjusted$89 $83 $281 $269 
Non-GAAP net income per share:
Basic$0.38 $0.36 $1.19 $1.15 
Diluted$0.35 $0.33 $1.10 $1.06 
Weighted-average shares outstanding:
Basic232,521 233,295 233,553 235,560 
Diluted258,994 264,866 262,180 265,451 
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
September 30,		Nine Months Ended
September 30,
 2024202320242023
Denominator for basic calculation232,521 233,295 233,553 235,560 
Effect of dilutive securities:
     Option awards3,303 2,563 2,619 1,872 
     Unvested restricted stock units2,131 3,562 2,093 2,573 
Convertible senior notes due in 2024 and 202621,039 25,446 23,915 25,446 
          Denominator for dilutive calculation258,994 264,866 262,180 265,451 




Key Metrics
The following table presents our visits and average monthly unique users for the periods presented (in millions, except percentages), recast for prior periods, as described in our Form 10-Q for the quarterly period ended September 30, 2024:
 Three Months Ended
September 30,		2023 to 2024
% Change		Nine Months Ended
September 30,		2023 to 2024
% Change
 2024202320242023
Visits (1)2,440 2,366 3%7,2516,9954%
Average monthly unique users (2)233 230 1%227 226 —%
(1) Visits includes groups of interactions by users with the Zillow, Trulia and StreetEasy mobile apps and websites. Zillow and StreetEasy measure visits with an internal measurement tool and Trulia measures visits with Adobe Analytics.
(2) Zillow, StreetEasy and HotPads measure unique users with an internal measurement tool and Trulia measures unique users with Adobe Analytics.

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
September 30,		2023 to 2024
% Change		Nine Months Ended
September 30,		2023 to 2024
% Change
2024202320242023
Purchase loan origination volume$812 $452 80%$2,169 $1,047 107%
Refinance loan origination volume7 5 40%14 12 17%
Total loan origination volume$819 $457 79%$2,183 $1,059 106%