Zillow Group Inc Class A (NASDAQ: ZG) stock fell nearly 8.7% after the bell on its weak second-quarter outlook. The company in the first quarter of FY 18 posted mixed results as earnings and revenue beaten the expectations, but the company’s guidance missed the mark.
ZG has reported the adjusted earnings per share of 7 cents, which is as per the analysts’ estimates for the adjusted earnings per share of 7 cents, according to data compiled by FactSet according to data compiled by FactSet. The company had reported the adjusted revenue growth of 22 percent to $299.9 million in the first quarter of FY 18, beating the analysts’ estimates for revenue of $298 million.
Moreover, in the first quarter of 2018, more than 175 million average monthly unique users had accessed Zillow Group brands’ mobile apps and websites, which is an increase of 5% year-over-year.Visits to Zillow Group brands’ mobile apps and websites Zillow, Trulia, StreetEasy (included as of March 2017) and RealEstate.com (included as of June 2017) has grown 15% year-over-year to nearly 1.8 billion. Premier Agent revenue per visit has risen 6% to $0.121 from $0.114 in the same period last year. Further, the number of Premier Agent accounts, including accounts of brokerages and other teams, spending more than $5,000 per month has risen by 58% year-over-year and has increased 58% on a total dollar basis. The total sales to Premier Agents, including brokerages and other teams, who have been customers for more than one year increased 38% year-over-year. The sales to existing Premier Agents, including brokerages and other teams, has accounted for 70% of total bookings.
For its second quarter, the market had forecasted Zillow Group’s adjusted earnings as being 11 cents per share, while revenue is expected to be about $343 million. However, the company expects that second-quarter revenue to be in the range of $322 million to $327 million
Meanwhile, ZG also said that effective May 31, Chief Financial Officer Kathleen Philips will step down from that role and will be temporarily replaced by the current vice president of financial reporting Jennifer Rock, until the company finds a new replacement. Philips will continue to function as Chief Legal Officer through 2018.