Zillow Group Inc. reported better-than-expected results for the first quarter as the hot real estate market generated 2.5 billion visits to the company's websites and apps.
Scrolling Zillow has become a go-to stop for Americans stuck at home and thinking about property upgrades due to low interest rates and a shortage of homes to buy fuel for the pandemic housing market.
Zillow had adjusted earnings before interest, taxes, depreciation and amortization of $ 181 million, according to a statement Tuesday. This exceeded the average analyst estimate of $ 131 million.
Zillow's Premier Agent marketing program, which sells leads to real estate agents, had sales of $ 334 million, up 38% year over year.
The strong real estate market didn't stop Zillow from buying homes for its burgeoning home freaking business, the Zillow listings. The company acquired 1,856 homes in the quarter, most since the third quarter of 2019.
Zillow does light repairs on the houses and then lists them for sale. The operation lost $ 58 million in the first quarter.
"We see a record number of people raise their hands and say they want a Zillow deal," said CEO Rich Barton in an interview. "Speed, security and convenience are reliable bets, even in a hot market."
Zillow shares rose in late trading. The stock was down 8.9% by Tuesday's close of trading that year after nearly tripling in 2020.