Zillow Q3 Earnings Preview: Can Growth Continue During Market Challenges?

As Zillow Group Inc (NASDAQ:Z) (NASDAQ:ZG) prepares to release its third-quarter earnings report Wednesday after the market close, investors are keenly watching for signs of continued growth and resilience in a challenging real estate market.

Zillow’s strong performance in the second quarter, marked by revenue and earnings that exceeded analysts' estimates, set a positive tone for the year, and its third-quarter guidance has only heightened expectations.

Here's a closer look at what to expect from Zillow in its third-quarter earnings.

What To Know: In the second quarter, Zillow reported total revenue of $572 million, comfortably above Wall Street’s forecast of $537.6 million. This represented a 13% year-over-year growth, driven by strong performance across multiple segments.

The company’s residential revenue rose by 8% year-over-year to $409 million, while its rentals revenue surged by 29% to $117 million. Notably, mortgage revenue saw a substantial 42% increase, reaching $34 million, which underscores Zillow's success in diversifying its revenue streams and capitalizing on demand across different facets of the real estate market.

This second quarter growth ...