This story originally appeared on Real Estate News.
Zillow continues to be an overachiever, at least with its financial performance.
The home search giant’s revenue has consistently beat expectations for the past two years, and Q3 was no different: Revenue was $676 million for the third quarter, up 16% year-over-year and above the company’s previous guidance, driven by the strength of its rentals and mortgage divisions.
Rentals revenue was up 41% year-over-year to $174 million, while mortgage revenue increased 36% to $53 million, according to Zillow’s shareholder letter. The company’s main revenue stream, residential, rose 7% to $435 million.
Zillow also turned a profit, netting $10 million during the quarter and sustaining its run of profitability for a third consecutive quarter.
What Zillow had to say
“Zillow’s Q3 results show how well we’re delivering on our mission to make buying, selling, financing and renting easier,” Zillow CEO Jeremy Wacksman said in a news release. “Zillow is leading the industry toward a more transparent, consumer-first future.”
The real estate portal also continues to see growth in its website traffic, hitting 250 million average monthly unique visitors in the third quarter, up 7% year-over-year.
Wacksman and CFO Jeremy Hofmann acknowledged that they are also aware of the “external noise” that has gotten louder in recent months, possibly referring to recent lawsuits involving the company and the debate over exclusive listings, including Zillow’s private listing ban.
Key numbers
Revenue: $676 million, up 16% year-over-year. Residential increased 7% to $435 million; mortgage revenue was up 36% to $53 million; and rentals revenue climbed 41% to $174 million.
Cash and investments: $1.4 billion at the end of September, up from $1.2 billion at the end of June.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $165 million in Q3, up from $127 million a year earlier.
Net income/loss: A gain of $10 million in Q3, up from $2 million the previous quarter, an improvement over its $20 million loss a year ago.
Traffic and visits: Traffic across all Zillow Group websites and apps totaled 250 million average monthly unique users in Q3, up 7% year-over-year, the company said. Total visits were 2.5 billion in Q3, up 4% year-over-year.
Q4 outlook: For the fourth quarter, Zillow estimates revenue will be in the $645 million to $655 million range, which would represent high single-digit year-over-year growth.
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