EX-99.2 3 q22024992.htm EX-99.2 Document

Exhibit 99.2


Reported Consolidated Results

ZILLOW GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)
June 30, 2024December 31, 2023
Assets
Current assets:
Cash and cash equivalents$1,181 $1,492 
Short-term investments1,447 1,318 
Accounts receivable, net115 96 
Mortgage loans held for sale195 100 
Prepaid expenses and other current assets189 140 
Restricted cash2 3 
Total current assets3,129 3,149 
Contract cost assets23 23 
Property and equipment, net356 328 
Right of use assets63 73 
Goodwill2,818 2,817 
Intangible assets, net222 241 
Other assets17 21 
Total assets$6,628 $6,652 
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable$39 $28 
Accrued expenses and other current liabilities111 107 
Accrued compensation and benefits46 47 
Borrowings under credit facilities182 93 
Deferred revenue59 52 
Lease liabilities, current portion16 37 
Convertible senior notes, current portion1,025 607 
Total current liabilities1,478 971 
Lease liabilities, net of current portion89 95 
Convertible senior notes, net of current portion497 1,000 
Other long-term liabilities63 60 
Total liabilities2,127 2,126 
Shareholders’ equity:
Class A common stock
— — 
Class B common stock
— — 
Class C capital stock
— — 
Additional paid-in capital6,322 6,301 
Accumulated other comprehensive loss(11)(5)
Accumulated deficit(1,810)(1,770)
Total shareholders’ equity4,501 4,526 
Total liabilities and shareholders’ equity$6,628 $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
June 30,		Six Months Ended
June 30,
 2024202320242023
Revenue$572 $506 $1,101 $975 
Cost of revenue (1)
130 104 253 196 
Gross profit442 402 848 779 
Operating expenses:
Sales and marketing (1)
205 173 371 329 
Technology and development (1)
144 140 291 277 
General and administrative (1)
131 153 263 276 
Impairment and restructuring costs— 2 6 8 
Acquisition-related costs— 1 — 1 
Total operating expenses480 469 931 891 
Loss from operations(38)(67)(83)(112)
Loss on extinguishment of debt(1)— (1)— 
Other income, net34 42 67 74 
Interest expense(10)(9)(19)(18)
Loss before income taxes(15)(34)(36)(56)
Income tax expense(2)(1)(4)(1)
Net loss$(17)$(35)$(40)$(57)
Net loss per share - basic and diluted$(0.07)$(0.15)$(0.17)$(0.24)
Weighted-average shares outstanding - basic and diluted233,453 233,629 234,074 234,023 
(1) Includes share-based compensation expense as follows:
Cost of revenue$4 $4 $8 $8 
Sales and marketing20 19 38 35 
Technology and development42 42 84 81 
General and administrative47 65 91 109 
Total share-based compensation$113 $130 $221 $233 
Adjusted EBITDA (2)$134 $111 $259 $215 
(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)
 Six Months Ended
June 30,
 20242023
Operating activities
Net loss$(40)$(57)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization115 85 
Share-based compensation221 233 
Amortization of right of use assets6 12 
Amortization of contract cost assets9 11 
Amortization of debt issuance costs3 3 
Impairment costs6 6 
Accretion of bond discount(17)(20)
Other adjustments to reconcile net loss to net cash provided by operating activities 8 (5)
Changes in operating assets and liabilities:
Accounts receivable(19)(19)
Mortgage loans held for sale(95)(32)
Prepaid expenses and other assets(49)(30)
Contract cost assets(9)(11)
Lease liabilities(27)(15)
Accounts payable11 — 
Accrued expenses and other current liabilities6 27 
Accrued compensation and benefits(1)2 
Deferred revenue7 5 
Other long-term liabilities— (2)
Net cash provided by operating activities135 193 
Investing activities
Proceeds from maturities of investments474 806 
Purchases of investments(591)(638)
Purchases of property and equipment(76)(66)
Purchases of intangible assets(14)(18)
Net cash provided by (used in) investing activities(207)84 
Financing activities
Net borrowings on warehouse line of credit and repurchase agreements89 29 
Repurchases of Class A common stock and Class C capital stock(301)(236)
Settlement of long-term debt(89)— 
Proceeds from exercise of stock options61 30 
Net cash used in financing activities(240)(177)
Net increase (decrease) in cash, cash equivalents and restricted cash during period(312)100 
Cash, cash equivalents and restricted cash at beginning of period1,495 1,468 
Cash, cash equivalents and restricted cash at end of period$1,183 $1,568 
Supplemental disclosures of cash flow information
Noncash transactions:
Capitalized share-based compensation$40 $38 
Write-off of fully depreciated property and equipment20 16 


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
June 30,		Six Months Ended
June 30,
 2024202320242023
Net loss, as reported
$(17)$(35)$(40)$(57)
Share-based compensation113 130 221 233 
Impairment and restructuring costs
— 2 6 8 
Acquisition-related costs
— 1 — 1 
Loss on extinguishment of debt
1 — 1 — 
Income taxes2 1 4 1 
Net income, adjusted$99 $99 $192 $186 
Non-GAAP net income per share:
Basic$0.42 $0.42 $0.82 $0.80 
Diluted$0.39 $0.39 $0.75 $0.74 
Weighted-average shares outstanding:
Basic233,453 233,629 234,074 234,023 
Diluted261,365 263,455 263,891 262,786 
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
June 30,		Six Months Ended
June 30,
 2024202320242023
Denominator for basic calculation233,453 233,629 234,074 234,023 
Effect of dilutive securities:
     Option awards1,356 1,774 2,286 1,516 
     Unvested restricted stock units1,110 2,606 2,085 1,801 
Convertible senior notes due in 2024 and 202625,446 25,446 25,446 25,446 
          Denominator for dilutive calculation261,365 263,455 263,891 262,786 




Key Metrics
The following table presents our visits and average monthly unique users for the periods presented (in millions, except percentages):
 Three Months Ended
June 30,		2023 to 2024
% Change		Six Months Ended
June 30,		2023 to 2024
% Change
 2024202320242023
Visits (1)2,495 2,391 4%4,8114,6294%
Average monthly unique users (2)231 232 —%224 225 —%
(1) Visits includes groups of interactions by users with the Zillow, Trulia and StreetEasy mobile apps and websites. Zillow measures visits with an internal measurement tool, StreetEasy measures visits with Google Analytics, and Trulia measures visits with Adobe Analytics.
(2) Zillow measures unique users with an internal measurement tool, StreetEasy and HotPads measure unique users with Google Analytics, 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
June 30,		2023 to 2024
% Change		Six Months Ended
June 30,		2023 to 2024
% Change
2024202320242023
Purchase loan origination volume$756 $336 125%$1,357 $595 128%
Refinance loan origination volume3 4 (25)%8 7 14%
Total loan origination volume$759 $340 123%$1,365 $602 127%