10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________________________

FORM 10-Q

_____________________________________________________

 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-36853

_____________________________________________________

ZILLOW GROUP, INC.

(Exact name of registrant as specified in its charter)

_____________________________________________________

Washington	47-1645716
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

1301 Second Avenue, Floor 31,

Seattle, Washington 98101

(Address of principal executive offices) (Zip Code)

(206) 470-7000

(Registrant’s telephone number, including area code)

 _____________________________________________________ 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per share	ZG	The Nasdaq Global Select Market
Class C Capital Stock, par value $0.0001 per share	Z	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of April 28, 2022, 60,119,308 shares of Class A common stock, 6,217,447 shares of Class B common stock, and 179,972,714 shares of Class C capital stock were outstanding.

Table of Contents

ZILLOW GROUP, INC.

Quarterly Report on Form 10-Q

For the Three Months Ended March 31, 2022

TABLE OF CONTENTS

 

		Page
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	4
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	5
	Condensed Consolidated Statements of Comprehensive Income	6
	Condensed Consolidated Statements of Shareholders’ Equity	7
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	52
Item 4.	Controls and Procedures	54
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	55
Item 1A.	Risk Factors	56
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	57
Item 6.	Exhibits	58
	Signatures	59

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As used in this Quarterly Report on Form 10-Q, the terms “Zillow Group,” “the Company,” “we,” “us” and “our” refer to Zillow Group, Inc., unless the context indicates otherwise.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q, including Part I, Item 2 (Management’s Discussion and Analysis of Financial Condition and Results of Operations), contains forward-looking statements based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include all statements that are not historical facts and generally may be identified by terms such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” or the negative or plural of these words or similar expressions.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those risks, uncertainties and assumptions described in Part I, Item 1A (Risk Factors) in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, including, but not limited to risks related to:

•the current and future health and stability of the economy, financial conditions and residential housing market, including any extended downturn or slowdown;

•changes in general economic and financial conditions (including federal monetary policy, interest rate changes, inflation, home price appreciation, and housing inventory) that may reduce demand for our products and services, lower our profitability or reduce our access to financing;

•actual or anticipated changes in our rates of growth and innovation relative to that of our competitors;

•investment of resources to pursue strategies and develop new products and services that may not prove effective or that are not attractive to customers and real estate partners;

•the impact of the COVID-19 pandemic (including variants) or other public health crises on our ability to operate, demand for our products or services, or general economic conditions;

•disruptions in operations and relationships with customers, suppliers, vendors, broker partners, contractors, employees and lenders given our decision to wind down Zillow Offers, our iBuying operations;

•unanticipated developments that may prevent, delay or increase the costs associated with our wind down activities;

•actual or anticipated fluctuations in our financial condition and results of operations;

•changes in projected operational and financial results;

•addition or loss of a significant number of customers;

•acquisitions, strategic partnerships, joint ventures, capital-raising activities or other corporate transactions or commitments by us or our competitors;

•actual or anticipated changes in technology, products, markets or services by us or our competitors;

•ability to protect the information and privacy of our customers and other third parties;

•ability to protect our brand and intellectual property;

•ability to obtain or maintain licenses and permits to support our current and future businesses;

•ability to comply with MLS rules and requirements to access and use listing data, and to maintain or establish relationships with listings and data providers;

•ability to operate and grow our mortgage origination business, including the ability to obtain sufficient financing;

•the impact of natural disasters and other catastrophic events;

•changes in laws or government regulation affecting our business and

•the impact of pending or future litigation or regulatory actions.

Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the effect of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely on forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements, and we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this report to conform these statements to actual results or to changes in our expectations.

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In addition, statements such as “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report on Form 10-Q. While we believe that such information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

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WHERE YOU CAN FIND MORE INFORMATION

Our filings with the Securities and Exchange Commission, or SEC, including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports, are available on the “Investors” section of our website at www.zillowgroup.com, free of charge, as soon as reasonably practicable after the electronic filing of these reports with the SEC. The information contained on our website is not a part of this Quarterly Report on Form 10-Q or any other document we file with the SEC.

Investors and others should note that Zillow Group announces material financial information to its investors using its press releases, SEC filings and public conference calls and webcasts. Zillow Group intends to also use the following channels as a means of disclosing information about Zillow Group, its services and other matters and for complying with its disclosure obligations under Regulation FD:

•Zillow Group Investor Relations Webpage (http://investors.zillowgroup.com)

•Zillow Group Blog (https://www.zillowgroup.com/news/)

•Zillow Group Twitter Account (https://twitter.com/zillowgroup)

The information Zillow Group posts through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following Zillow Group’s press releases, SEC filings and public conference calls and webcasts. This list may be updated from time to time and reflects current updated channels as of the date of this Quarterly Report on Form 10-Q. The information we post through these channels is not a part of this Quarterly Report on Form 10-Q or any other document we file with the SEC, and the inclusion of our website addresses and Twitter account are as inactive textual references only.

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

ZILLOW GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share data, unaudited)

	March 31, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	2,594	$	2,611
Short-term investments	1,032		514
Accounts receivable, net of allowance for doubtful accounts of $4 at March 31, 2022 and December 31, 2021	99		155
Mortgage loans held for sale	93		107
Inventory	494		3,913
Prepaid expenses and other current assets	386		153
Restricted cash	92		227
Total current assets	4,790		7,680
Contract cost assets	31		35
Property and equipment, net	234		215
Right of use assets	140		130
Goodwill	2,374		2,374
Intangible assets, net	165		180
Other assets	86		81
Total assets	$	7,820	$	10,695
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	24	$	17
Accrued expenses and other current liabilities	119		161
Accrued compensation and benefits	102		108
Borrowings under credit facilities	88		2,312
Deferred revenue	56		51
Lease liabilities, current portion	23		24
Securitization term loans	790		1,209
Total current liabilities	1,202		3,882
Lease liabilities, net of current portion	156		148
Convertible senior notes	1,656		1,319
Other long-term liabilities	4		5
Total liabilities	3,018		5,354
Commitments and contingencies (Note 16)
Shareholders’ equity:
Preferred stock, $0.0001 par value; 30,000,000 shares authorized; no shares issued and outstanding	—		—
Class A common stock, $0.0001 par value; 1,245,000,000 shares authorized; 60,119,308 and 61,513,634 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	—		—
Class B common stock, $0.0001 par value; 15,000,000 shares authorized; 6,217,447 shares issued and outstanding	—		—
Class C capital stock, $0.0001 par value; 600,000,000 shares authorized; 179,931,577 and 182,898,987 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	—		—
Additional paid-in capital	6,298		7,001
Accumulated other comprehensive income (loss)	(1)		7
Accumulated deficit	(1,495)		(1,667)
Total shareholders’ equity	4,802		5,341
Total liabilities and shareholders’ equity	$	7,820	$	10,695

See accompanying notes to the condensed consolidated financial statements.

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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 March 31,
	2022		2021
Revenue:
Homes	$	3,721	$	704
IMT	490		446
Mortgages	46		68
Total revenue	4,257		1,218
Cost of revenue:
Homes	3,537		645
IMT	65		47
Mortgages	20		19
Total cost of revenue	3,622		711
Gross profit	635		507
Operating expenses:
Sales and marketing	307		197
Technology and development	114		120
General and administrative	119		101
Restructuring costs	38		—
Acquisition-related costs	—		1
Total operating expenses	578		419
Income from operations	57		88
Loss on extinguishment of debt	(14)		(1)
Other income	8		2
Interest expense	(44)		(40)
Income before income taxes	7		49
Income tax benefit	9		3
Net income	$	16	$	52
Net income per share:
Basic	$	0.06	$	0.21
Diluted	$	0.06	$	0.20
Weighted-average shares outstanding:
Basic	248,542		243,234
Diluted	251,963		259,346

See accompanying notes to the condensed consolidated financial statements.

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ZILLOW GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions, unaudited)

	Three Months Ended March 31,
	2022		2021
Net income	$	16	$	52
Other comprehensive loss:
Unrealized losses on investments	(8)		—
Total other comprehensive loss	(8)		—
Comprehensive income	$	8	$	52

See accompanying notes to the condensed consolidated financial statements.

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ZILLOW GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in millions, except share data which are presented in thousands, unaudited)

	Class A Common Stock, Class B Common Stock and Class C Capital Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
	Shares	Amount
Balance at January 1, 2022	250,630	$	—	$	7,001	$	(1,667)	$	7	$	5,341
Cumulative-effect adjustment from adoption of guidance on accounting for convertible instruments and contracts in an entity’s own equity	—	—		(492)		156		—		(336)
Issuance of common and capital stock upon exercise of stock options	807	—		36		—		—		36
Vesting of restricted stock units	689	—		—		—		—		—
Share-based compensation expense	—	—		101		—		—		101
Repurchases of Class A common stock and Class C capital stock	(5,858)	—		(348)		—		—		(348)
Net income	—	—		—		16		—		16
Other comprehensive loss	—	—		—		—		(8)		(8)
Balance at March 31, 2022	246,268	$	—	$	6,298	$	(1,495)	$	(1)	$	4,802

	Class A Common Stock, Class B Common Stock and Class C Capital Stock			Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income		Total Shareholders’ Equity
	Shares	Amount
Balance at January 1, 2021	240,526	$	—	$	5,881	$	(1,139)	$	—	$	4,742
Issuance of common and capital stock upon exercise of stock options	1,603	—		61		—		—		61
Vesting of restricted stock units	813	—		—		—		—		—
Restricted stock units withheld for tax liability	(1)	—		—		—		—		—
Share-based compensation expense	—	—		67		—		—		67
Issuance of Class C capital stock in connection with equity offering, net of issuance costs	3,164	—		545		—		—		545
Settlement of convertible senior notes	1,203	—		43		—		—		43
Net income	—	—		—		52		—		52
Other comprehensive income	—	—		—		—		—		—
Balance at March 31, 2021	247,308	$	—	$	6,597	$	(1,087)	$	—	$	5,510

See accompanying notes to the condensed consolidated financial statements.

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ZILLOW GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions, unaudited)

	Three Months Ended March 31,
	2022		2021
Operating activities
Net income	$	16	$	52
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	43		29
Share-based compensation	91		64
Amortization of right of use assets	6		7
Amortization of contract cost assets	8		10
Amortization of debt discount and debt issuance costs	23		25
Loss on extinguishment of debt	14		1
Inventory valuation adjustment	5		—
Deferred income taxes	—		(3)
Other adjustments to reconcile net income to cash provided by operating activities	(3)		9
Changes in operating assets and liabilities:
Accounts receivable	56		(13)
Mortgage loans held for sale	14		57
Inventory	3,414		19
Prepaid expenses and other assets	(247)		(29)
Contract cost assets	(4)		(10)
Lease liabilities	(9)		(7)
Accounts payable	6		(2)
Accrued expenses and other current liabilities	(43)		25
Accrued compensation and benefits	(6)		2
Deferred revenue	5		5
Other long-term liabilities	3		—
Net cash provided by operating activities	3,392		241
Investing activities
Proceeds from maturities of investments	—		920
Purchases of investments	(525)		—
Purchases of property and equipment	(33)		(12)
Purchases of intangible assets	(5)		(4)
Net cash provided by (used in) investing activities	(563)		904
Financing activities
Proceeds from issuance of Class C capital stock, net of issuance costs	—		545
Proceeds from borrowings on credit facilities	—		126
Repayments of borrowings on credit facilities	(2,205)		(88)
Net repayments on warehouse line of credit and repurchase agreements	(25)		(46)
Repurchases of Class A common stock and Class C capital stock	(348)		—
Settlement of long term debt	(439)		—
Proceeds from exercise of stock options	36		61
Net cash provided by (used in) financing activities	(2,981)		598
Net increase (decrease) in cash, cash equivalents and restricted cash during period	(152)		1,743
Cash, cash equivalents and restricted cash at beginning of period	2,838		1,779
Cash, cash equivalents and restricted cash at end of period	$	2,686	$	3,522
Supplemental disclosures of cash flow information
Cash paid for interest	$	25	$	14
Noncash transactions:
Write-off of fully amortized intangible assets	$	168	$	1
Write-off of fully depreciated property and equipment	18		12
Recognition of operating right of use assets and lease liabilities	16		—
Capitalized share-based compensation	10		4
Property and equipment purchased on account	1		1

See accompanying notes to the condensed consolidated financial statements.

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ZILLOW GROUP, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Note 1. Organization and Description of Business

Zillow Group, Inc. is reimagining real estate to make it easier to unlock life’s next chapter. As the most visited real estate website in the United States, Zillow and its affiliates help high-intent movers find and win their home through digital solutions, first class partners and easier buying, selling, financing and renting experiences. We help customers find and win their home with referrals to trusted Zillow Premier Agent and Premier Broker partners and our portfolio of Zillow-branded and affiliated transaction-oriented services. Zillow Offers, our iBuying business, has purchased and sold homes directly in markets across the country. In the fourth quarter of 2021, we began to wind down Zillow Offers operations with expected completion in the second half of 2022. Zillow Home Loans, our affiliate lender, provides our customers with an easy option to get pre-approved and secure financing for their next home purchase.

Other consumer brands include Zillow Rentals, Trulia, StreetEasy, Zillow Closing Services, HotPads and Out East. In addition, Zillow Group provides a comprehensive suite of marketing software and technology solutions for the real estate industry which include Mortech, dotloop, Bridge Interactive, New Home Feed and ShowingTime.com, Inc. (“ShowingTime”).

Certain Significant Risks and Uncertainties

We operate in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, we believe that changes in any of the following areas could have a significant negative effect on us in terms of our future financial position, results of operations or cash flows: current and future health and stability of the economy, financial conditions and residential housing market and changes in general economic and financial conditions (including federal monetary policy, interest rate changes, inflation, home price appreciation and housing inventory); our investment in resources to pursue strategies and develop products and services that may not prove effective or that are not attractive for customers and real estate partners; the impact of public health crises, like the COVID-19 pandemic (including variants) on our ability to operate, demand for our products or services or general economic conditions; disruptions in operations and relationships with customers, suppliers, vendors, broker partners, contractors, employees, lenders and consumers given our decision to wind down iBuying operations; unanticipated developments that may prevent, delay or increase the costs associated with our wind down activities; addition or loss of significant customers; our ability to successfully integrate and realize the benefits of our past or future strategic acquisitions or investments; our ability to manage advertising inventory or pricing; engagement and usage of our products; competition and innovation in our markets; actual or anticipated changes in technology, products, markets or services by us or our competitors; our ability to maintain or establish relationships with listings and data providers; our ability to obtain or maintain licenses and permits to support our current and future businesses; changes in laws or government regulation affecting our business; outcomes of legal proceedings; natural disasters and catastrophic events; our ability to attract and retain qualified employees and key personnel; protection of customers’ information and other privacy concerns; protection of our brand and intellectual property; and intellectual property infringement and other claims, among other things.

Note 2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements include Zillow Group, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes included in Zillow Group, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was filed with the SEC on February 10, 2022. The condensed consolidated balance sheet as of December 31, 2021, included herein, was derived from the audited financial statements of Zillow Group, Inc. as of that date.

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The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position as of March 31, 2022 and our results of operations, comprehensive income, shareholders’ equity and cash flows for the three months ended March 31, 2022 and 2021. The results for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022, or for any interim period, or for any other future year.

Reclassifications

Certain reclassifications have been made in the condensed consolidated statements of operations to conform data for prior periods to the current format. Beginning with the three and six month periods ended June 30, 2021, we presented a gross profit subtotal in our condensed consolidated statements of operations, which requires certain depreciation expense and amortization expense to be included within cost of revenue. We believe the presentation of gross profit is preferable as it facilitates investors’ ability to model across our segments and enhances comparability with our public company peers. To effect the presentation of gross profit, we present the amortization expense for certain intangible assets and data acquisition costs within cost of revenue and have reclassified certain amounts in prior periods in the condensed consolidated statements of operations from technology and development expenses to cost of revenue. Additionally, we reclassified the amortization expense for trade names and trademarks and customer relationship intangible assets from technology and development expenses to sales and marketing expenses. This change has no impact on income from operations or net income.

Amounts previously reported in the condensed consolidated statements of operations for the periods presented were revised herein as shown below (in millions):

	Three Months Ended March 31, 2021
	As Reported		As Revised		Effect of Change
Cost of revenue:
Homes	$	641	$	645	$	4
IMT	28		47		19
Mortgages	18		19		1
Total cost of revenue	687		711		24
Operating expenses:
Sales and marketing	193		197		4
Technology and development	149		120		(29)
General and administrative	100		101		1

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Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to the accounting for certain revenue offerings, the net realizable value of inventory, restructuring costs, amortization period and recoverability of contract cost assets, website and software development costs, recoverability of long-lived assets and intangible assets, share-based compensation, income taxes, business combinations and the recoverability of goodwill, among others. To the extent there are material differences between these estimates, judgments or assumptions and actual results, our financial statements will be affected. The COVID-19 pandemic and our wind down of Zillow Offers operations have introduced significant additional uncertainty with respect to estimates, judgments and assumptions, which may materially impact the estimates previously listed, among others.

Recently Adopted Accounting Standards

In August 2020, the Financial Accounting Standards Board (“FASB”) issued guidance which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, the guidance removes the liability and equity separation models for convertible instruments. Instead, entities will account for convertible debt instruments wholly as debt unless convertible instruments contain features that require bifurcation as a derivative or that result in substantial premiums accounted for as paid-in capital. The guidance also requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. The guidance is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a retrospective or modified retrospective basis. We adopted this guidance on January 1, 2022 using the modified retrospective approach whereby amounts previously reported have not been revised. Upon adoption we recognized a decrease to additional paid-in capital of $492 million, an increase to long-term debt of $336 million and a cumulative-effect adjustment to accumulated deficit of $156 million.

Recently Issued Accounting Standards Not Yet Adopted

In October 2021, the FASB issued guidance which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with guidance governing revenue from contracts with customers. We currently recognize contract assets and contract liabilities at the acquisition date based on fair value estimates, which historically has resulted in a reduction to unearned revenue on the balance sheet, and therefore, a reduction to revenue that would have otherwise been recorded as an independent entity. The guidance is effective for interim and annual periods beginning after December 15, 2022 on a prospective basis, with early adoption permitted. We expect to adopt this guidance on January 1, 2023. We are currently evaluating the potential impact of the guidance on our financial position, results of operations and cash flows.

Note 3. Fair Value Measurements

We apply the following methods and assumptions in estimating our fair value measurements:

Cash equivalents — The fair value measurement of money market funds is based on quoted market prices in active markets (Level 1). The fair value measurement of other cash equivalents is based on observable market-based inputs principally derived from or corroborated by observable market data (Level 2).

Short-term investments — The fair value measurement of our short-term investments is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means (Level 2).

Restricted cash — The carrying value of restricted cash approximates fair value due to the short period of time amounts are borrowed on our credit facilities, home sales proceeds are held in restricted accounts associated with our credit facilities and securitizations, and amounts are held in escrow (Level 1).

Mortgage loans held for sale — The fair value of mortgage loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics (Level 2).

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Forward contracts — The fair value of mandatory loan sales commitments and derivative instruments such as forward sales of mortgage-backed securities that are utilized as economic hedging instruments is calculated by reference to quoted prices for similar assets (Level 2).

Interest rate lock commitments — The fair value of interest rate lock commitments (“IRLCs”) is calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics. Expired commitments are excluded from the fair value measurement. Since not all IRLCs will become closed loans, we adjust our fair value measurements for the estimated amount of IRLCs that will not close. This adjustment is effected through the pull-through rate, which represents the probability that an interest rate lock commitment will ultimately result in a closed loan. For IRLCs that are cancelled or expire, any recorded gain or loss is reversed at the end of the commitment period (Level 3).

The following table presents the range and weighted-average pull-through rates used in determining the fair value of IRLCs as of the dates presented:

	March 31, 2022	December 31, 2021
Range	40% - 100%	42% - 100%
Weighted-average	83%	85%

Beneficial interests in securitizations — The fair value of beneficial interests in securitizations is calculated using a discounted cash flow methodology. We rely on significant unobservable valuation inputs as the investments do not trade in active markets with readily observable prices and there is limited observable market data for reference. The primary unobservable inputs include the assumptions related to the expected timing and amount of prepayments and the discount rate of approximately 8% applied to the projected cash flows (Level 3). An increase in the amount of prepayments, in isolation, would result in an increase in the fair value measurement. An increase in the discount rate, in isolation, would result in a decrease in the fair value measurement. The beneficial interests in securitizations are recorded within other assets in our condensed consolidated balance sheets. As of March 31, 2022, we have included the impact of the expected full prepayment of both beneficial interests during the second quarter of 2022 due to the wind down of Zillow Offers operations.

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in millions):

	March 31, 2022
	Total		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	2,315	$	2,315	$	—	$	—
Treasury bills	13		—		13		—
Short-term investments:
U.S. government agency securities	797		—		797		—
Treasury bills	189		—		189		—
Corporate bonds	36		—		36
Commercial paper	10		—		10
Beneficial interests in securitizations	78		—		—		78
Mortgage origination-related:
Mortgage loans held for sale	93		—		93		—
Forward contracts - other current assets	3		—		3		—
Total	$	3,534	$	2,315	$	1,141	$	78

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	December 31, 2021
	Total		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	2,132	$	2,132	$	—	$	—
Short-term investments:
U.S. government agency securities	471		—		471		—
Corporate bonds	33		—		33		—
Commercial paper	10		—		10		—
Beneficial interests in securitizations	75		—		—		75
Mortgage origination-related:
Mortgage loans held for sale	107		—		107		—
IRLCs	5		—		—		5
Forward contracts - other current assets	—		—		—		—
Forward contracts - other current liabilities	—		—		—		—
Total	$	2,833	$	2,132	$	621	$	80

The changes in our beneficial interests in securitizations were not material for the three months ended March 31, 2022. The following table presents the changes in our IRLCs for the periods presented (in millions):

	Three Months Ended March 31,
	2022		2021
Balance, beginning of the period	$	5	$	12
Issuances	6		18
Transfers	(9)		(24)
Fair value changes recognized in earnings	(2)		(1)
Balance, end of period	$	—	$	5

At March 31, 2022, the notional amounts of the hedging instruments related to our mortgage loans held for sale were $143 million and $219 million for our IRLCs and forward contracts, respectively. At December 31, 2021, the notional amounts of the hedging instruments related to our mortgage loans held for sale were $305 million and $388 million for our IRLCs and forward contracts, respectively. We do not have the right to offset our derivative positions.

See Note 11 for the carrying amount and estimated fair value of our convertible senior notes and securitization term loans.

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Note 4. Cash and Cash Equivalents, Investments and Restricted Cash

The following tables present the amortized cost, gross unrealized gains and losses and estimated fair market value of our cash and cash equivalents, investments, including beneficial interests in securitizations, and restricted cash as of the dates presented (in millions):

	March 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Market Value
Cash	$	266	$	—	$	—	$	266
Cash equivalents:
Money market funds	2,315		—		—		2,315
Treasury bills	13		—		—		13
Short-term investments:
U. S. government agency securities	804		—		(7)		797
Treasury bills	189		—		—		189
Corporate bonds	36		—		—		36
Commercial paper	10		—		—		10
Restricted cash	92		—		—		92
Beneficial interests in securitizations	71		9		(2)		78
Total	$	3,796	$	9	$	(9)	$	3,796

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Market Value
Cash	$	479	$	—	$	—	$	479
Cash equivalents:
Money market funds	2,132		—		—		2,132
Short-term investments:
U.S. government agency securities	473		—		(2)		471
Corporate bonds	33		—		—		33
Commercial paper	10		—		—		10
Restricted cash	227		—		—		227
Beneficial interests in securitizations	66		9		—		75
Total	$	3,420	$	9	$	(2)	$	3,427

The following table presents available-for-sale investments by contractual maturity date as of March 31, 2022 (in millions):

	Amortized Cost		Estimated Fair Market Value
Due in one year or less	$	920	$	923
Due after one year	191		187
Total	$	1,111	$	1,110

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Note 5. Inventory

The following table presents the components of inventory, net of applicable lower of cost or net realizable value adjustments, as of the dates presented (in millions):

	March 31, 2022		December 31, 2021
Finished goods	$	484	$	2,728
Work-in-process	10		1,185
Inventory	$	494	$	3,913

We have recorded a write-down for homes in inventory of $31 million and $211 million as of March 31, 2022 and December 31, 2021, respectively.

Note 6. Contract Balances

Contract assets were $101 million and $78 million as of March 31, 2022 and December 31, 2021, respectively. Contract assets represent amounts for which we have recognized revenue for contracts that have not yet been invoiced to our customers. Contract assets are primarily related to our Premier Agent Flex, rentals pay per lease and StreetEasy Experts offerings, whereby we estimate variable consideration based on the expected number of real estate transactions to be closed for Premier Agent Flex and StreetEasy Experts, and qualified leases to be secured for rentals pay per lease. We recognize revenue when we satisfy our performance obligations under the corresponding contracts. StreetEasy Experts is our pay for performance pricing model available in the New York City market for which agents and brokers are provided with leads at no initial cost and pay a performance advertising fee only when a real estate purchase transaction is closed with one of the leads. Under the StreetEasy Experts pricing model, the transaction price represents variable consideration, as the amount to which we expect to be entitled varies based on the number of leads that convert into real estate transactions and the value of those transactions. We record a corresponding contract asset for the estimate of variable consideration for StreetEasy Experts when the right to the consideration is conditional. When the right to consideration becomes unconditional, we reclassify amounts to accounts receivable. Contract assets are recorded within prepaid expenses and other current assets in our condensed consolidated balance sheets.

For the three months ended March 31, 2022 and 2021, we recognized revenue of $45 million and $47 million, respectively, that was included in the deferred revenue balance at the beginning of the respective period.

Note 7. Contract Cost Assets

As of March 31, 2022 and December 31, 2021, we had $31 million and $35 million, respectively, of contract cost assets. For the three months ended March 31, 2022 and 2021, we did not incur any material impairment losses to our contract cost assets.

We recorded amortization expense related to contract cost assets of $8 million and $10 million for the three months ended March 31, 2022 and 2021, respectively.

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Note 8. Property and Equipment, net

The following table presents the detail of property and equipment as of the dates presented (in millions):

	March 31, 2022		December 31, 2021
Website development costs	$	212	$	175
Leasehold improvements	95		107
Office equipment, furniture and fixtures	29		26
Computer equipment	19		19
Construction-in-progress	2		7
Property and equipment	357		334
Less: accumulated amortization and depreciation	(123)		(119)
Property and equipment, net	$	234	$	215

We recorded depreciation expense related to property and equipment (other than website development costs) of $8 million for the three months ended March 31, 2022 and 2021.

We capitalized $34 million and $12 million in website development costs for the three months ended March 31, 2022 and 2021, respectively. Amortization expense for website development costs included in cost of revenue was $13 million and $8 million for the three months ended March 31, 2022 and 2021, respectively.

Note 9. Acquisition

Acquisition of ShowingTime.com, Inc.

On September 30, 2021, Zillow Group acquired ShowingTime in exchange for approximately $512 million in cash, subject to certain adjustments. Our acquisition of ShowingTime has been accounted for as a business combination, and assets acquired and liabilities assumed were recorded at their preliminary estimated fair values as of September 30, 2021. Goodwill, which represents the expected synergies from combining the acquired assets and the operations of the acquirer, as well as intangible assets that do not qualify for separate recognition, is measured as of the acquisition date as the excess of consideration transferred, which is also measured at fair value, and the net of the fair values of the assets acquired and the liabilities assumed as of the acquisition date.

The total preliminary purchase price has been allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their respective fair values at the acquisition date. The total preliminary purchase price was allocated as follows (in millions):

Cash and cash equivalents	$	15
Identifiable intangible assets	111
Goodwill	389
Other acquired assets	6
Deferred tax liability	(4)
Other assumed liabilities	(5)
Total preliminary estimated purchase price	$	512

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The estimated fair value of identifiable intangible assets acquired and associated useful lives consisted of the following (in millions):

	Estimated Fair Value		Estimated Weighted-Average Useful Life (in years)
Customer relationships	$	55	8
Developed technology	47		4
Trade names and trademarks	9		10
Total	$	111

We used an income approach to measure the fair value of the customer relationships based on the excess earnings method, whereby the fair value is estimated based upon the present value of cash flows that the applicable asset is expected to generate. We used an income approach to measure the fair value of the developed technology and the trade names and trademarks based on the relief-from-royalty method. These fair value measurements were based on Level 3 inputs under the fair value hierarchy.

Our estimates and assumptions related to the purchase price allocation are preliminary and subject to change during the measurement period (up to one year from the acquisition date) as we finalize the amount of goodwill and deferred taxes recorded in connection with the acquisition.

Acquisition-related costs incurred, which primarily included legal, accounting and other external costs directly related to the acquisition, are included within acquisition-related costs in our condensed consolidated statements of operations and were expensed as incurred.

Unaudited pro forma earnings information has not been presented as the effects were not material to our condensed consolidated financial statements.

Note 10. Intangible Assets, net

The following tables present the detail of intangible assets as of the dates presented (in millions):

	March 31, 2022
	Cost		Accumulated Amortization		Net
Customer relationships	$	55	$	(4)	$	51
Developed technology	50		(8)		42
Software	65		(29)		36
Trade names and trademarks	46		(11)		35
Purchased content	5		(4)		1
Total	$	221	$	(56)	$	165

	December 31, 2021
	Cost		Accumulated Amortization		Net
Customer relationships	$	139	$	(84)	$	55
Developed technology	133		(86)		47
Software	59		(20)		39
Trade names and trademarks	45		(9)		36
Intangibles-in-progress	2		—		2
Purchased content	4		(3)		1
Total	$	382	$	(202)	$	180

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Amortization expense recorded for intangible assets for the three months ended March 31, 2022 and 2021 was $22 million and $13 million, respectively. Amortization expense for trade names and trademarks and customer relationships intangible assets is included in sales and marketing expenses. Amortization expense for all other intangible assets is included in cost of revenue.

We did not record any impairment costs related to our intangible assets for the three months ended March 31, 2022 and 2021.

Note 11. Debt

The following table presents the carrying values of Zillow Group’s debt as of the dates presented (in millions):

	March 31, 2022		December 31, 2021
Homes segment
Credit facilities:
Goldman Sachs Bank USA	$	—	$	548
Citibank, N.A.	—		770
Credit Suisse AG, Cayman Islands	—		835
Securitizations:
2021-1 variable funding line	—		17
2021-1 term loan	320		472
2021-2 variable funding line	—		29
2021-2 term loan	470		737
Total Homes segment debt	790		3,408
Mortgages segment
Repurchase agreements:
Credit Suisse AG, Cayman Islands	64		77
Citibank, N.A.	13		17
Warehouse line of credit:
Comerica Bank	11		19
Total Mortgages segment debt	88		113
Convertible senior notes
1.375% convertible senior notes due 2026	495		369
2.75% convertible senior notes due 2025	557		443
0.75% convertible senior notes due 2024	604		507
Total convertible senior notes	1,656		1,319
Total debt	$	2,534	$	4,840

Homes Segment

Variable Interest Entities

As of March 31, 2022 and December 31, 2021, the total assets of the special purpose entities (“SPEs”) and titling trust associated with our Zillow Offers business were $838 million and $4.2 billion, respectively, of which $494 million and $3.9 billion are inventory, respectively, $90 million and $225 million are restricted cash, respectively, $29 million and $78 million are accounts receivable, respectively, and $224 million are prepaids and other current assets as of March 31, 2022. As of March 31, 2022 and December 31, 2021, the total liabilities of the SPEs and titling trust were $810 million and $3.5 billion, respectively, of which $790 million and $3.4 billion are credit facility and securitization-related borrowings, respectively, and $18 million and $55 million are accrued expenses, respectively. For additional details related to our SPEs, see Note 13 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

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Credit Facilities

During the three months ended March 31, 2022, certain wholly owned subsidiaries of Zillow Group repaid all amounts drawn on the Zillow Offers credit facilities. No additional amounts may be drawn on these facilities. For additional details related to our credit facilities, see Note 13 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Securitization Transactions

During the three months ended March 31, 2022, we repaid all amounts drawn on the variable funding lines entered into in conjunction with the securitizations for our Zillow Offers business. For additional details related to our securitization variable funding lines, see Note 13 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

The term loans supporting our securitization transactions include customary representations and warranties, provisions regarding events of default and covenants. The term loans require Zillow Group and certain of its subsidiaries, as applicable, to comply with a number of customary financial and other covenants, such as maintaining certain levels of liquidity, tangible net worth and leverage ratios. As of March 31, 2022, Zillow Group was in compliance with all financial covenants and no event of default had occurred. Except for certain limited circumstances, the term loans are non-recourse to Zillow Group. For additional details related to our securitization transactions, see Note 13 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

In connection with the wind down of Zillow Offers operations, during the three months ended March 31, 2022, we repaid $159 million and $276 million of principal and $1 million and $2 million of prepayment fees associated with the 2021-1 and 2021-2 term loans, respectively, plus accrued interest. We recorded a total loss on debt extinguishment of $6 million representing the difference between the principal amount repaid, prepayment penalties incurred and the carrying amount extinguished for each of the term loans upon repayment. In addition, we remitted cash consideration of $87 million and $132 million of principal associated with the 2021-1 and 2021-2 term loans, respectively, and $1 million of prepayment fees associated with each of the term loans, plus accrued interest, which payments are classified within prepaid expenses and other current assets in our condensed consolidated balance sheet as of March 31, 2022. The fixed rate components of the 2021-1 term loan have stated interest rates of 2.3425% and 3.3524%, respectively, and principal amounts of $239 million and $51 million, respectively, as of March 31, 2022. The principal-only component of the 2021-1 term loan has a principal amount of $30 million as of March 31, 2022. The two fixed rate components of the 2021-2 term loan have stated interest rates of 2.4294% and 3.5860%, respectively, and principal amounts of $349 million and $75 million, respectively, as of March 31, 2022. The principal-only component of the 2021-2 term loan has a principal amount of $49 million as of March 31, 2022.

The following tables summarize certain additional details related to our term loans as of the dates presented or for the periods ended (in millions, except interest rates):

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								March 31, 2022				December 31, 2021
Securitization	Maturity Date	Aggregate Principal Amount		Weighted Average Effective Interest Rate (1)		First Interest Payment Date	Reinvestment Period	Unamortized Debt Discount and Debt Issuance Costs		Fair Value (2)		Unamortized Debt Discount and Debt Issuance Costs		Fair Value (2)
2021-1 term loan	February 9, 2024	$	320	4.14	%	September 9, 2021	24 months	$	—	$	320	$	8	$	480
2021-2 term loan	October 9, 2024	473		11.29	%	November 9, 2021	30 months	3		473		12		747
	Total	$	793					$	3	$	793	$	20	$	1,227
(1) The weighted average effective interest rate is calculated using the outstanding principal amounts and effective interest rates for the two fixed rate components and the single principal-only component of each of the term loans. Debt discount and debt issuance costs have been allocated to the components of each term loan and will be amortized using the effective interest method with the amortization classified as a component of interest expense.
(2) The estimated fair value of each of the term loans was calculated using a discounted cash flow methodology. The fair value is classified as Level 3 due to reliance on significant unobservable valuation inputs.

	Three Months Ended March 31, 2022
Securitization	Contractual Coupon Interest		Amortization of Debt Discount		Amortization of Debt Issuance Costs		Interest Expense
2021-1 term loan	$	3	$	3	$	4	$	10
2021-2 term loan	4		5		2		11
Total	$	7	$	8	$	6	$	21

Mortgages Segment

To provide capital for Zillow Home Loans, we utilize master repurchase agreements and a warehouse line of credit which are classified as current liabilities in our condensed consolidated balance sheets. The repurchase agreements and warehouse line of credit provide short-term financing between the issuance of a mortgage loan and when Zillow Home Loans sells the loan to an investor or directly to an agency. The following table summarizes certain details related to our repurchase agreements and warehouse line of credit (in millions, except interest rates):

Lender	Maturity Date	Maximum Borrowing Capacity		Weighted-Average Interest Rate
Credit Suisse AG, Cayman Islands	March 17, 2023	$	100	2.00	%
Citibank, N.A.	June 10, 2022	100		2.20	%
Comerica Bank	June 25, 2022	60		2.51	%
	Total	$	260

On March 18, 2022, Zillow Home Loans amended its Credit Suisse AG, Cayman Islands (“Credit Suisse”) master repurchase agreement to decrease the uncommitted total maximum borrowing capacity to $100 million with a maturity date of March 17, 2023 and to update the reference rate from one-month LIBOR to Adjusted Daily Simple Secured Overnight Financing Rate (“Adjusted Daily Simple SOFR”).

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In accordance with the master repurchase agreements, Credit Suisse and Citibank, N.A. (together the “Lenders”) have agreed to pay Zillow Home Loans a negotiated purchase price for eligible loans, and Zillow Home Loans has simultaneously agreed to repurchase such loans from the Lenders under a specified timeframe at an agreed upon price that includes interest. The master repurchase agreements contain margin call provisions that provide the Lenders with certain rights in the event of a decline in the market value of the assets purchased under the master repurchase agreements. As of March 31, 2022 and December 31, 2021, $82 million and $87 million, respectively, in mortgage loans held for sale were pledged as collateral under the master repurchase agreements.

The repurchase agreements and warehouse line of credit include customary representations and warranties, covenants and provisions regarding events of default. As of March 31, 2022, Zillow Home Loans was in compliance with all financial covenants and no event of default had occurred. The repurchase agreements and warehouse line of credit are recourse to Zillow Home Loans, and have no recourse to Zillow Group or any of its other subsidiaries.

For additional details related to our warehouse line of credit and repurchase agreements, see Note 13 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Convertible Senior Notes

Effective January 1, 2022, the Company adopted guidance which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. This guidance was adopted using a modified retrospective approach. Refer to Note 2 for additional information regarding the adoption of this guidance.

The following tables summarize certain details related to our outstanding convertible senior notes as of the dates presented or for the periods ended (in millions, except interest rates):

								March 31, 2022				December 31, 2021
Maturity Date	Aggregate Principal Amount		Stated Interest Rate		Effective Interest Rate		Semi-Annual Interest Payment Dates	Unamortized Debt Issuance Costs		Fair Value		Unamortized Debt Discount and Debt Issuance Costs		Fair Value
September 1, 2026	$	499	1.375	%	1.57	%	March 1; September 1	$	4	$	663	$	130	$	781
May 15, 2025	565		2.75	%	3.20	%	May 15; November 15	8		642		122		725
September 1, 2024	608		0.75	%	1.02	%	March 1; September 1	4		784		101		945
Total	$	1,672						$	16	$	2,089	$	353	$	2,451

	Three Months Ended March 31, 2022						Three Months Ended March 31, 2021
Maturity Date	Contractual Coupon Interest		Amortization of Debt Issuance Costs		Interest Expense		Contractual Coupon Interest		Amortization of Debt Discount		Amortization of Debt Issuance Costs		Interest Expense
September 1, 2026	$	2	$	—	$	2	$	2	$	5	$	—	$	7
May 15, 2025	4		—		4		4		7		—		11
September 1, 2024	1		—		1		1		8		1		10
July 1, 2023	—		—		—		1		4		1		6
Total	$	7	$	—	$	7	$	8	$	24	$	2	$	34

The convertible notes are senior unsecured obligations. The convertible senior notes maturing in 2026 (“2026 Notes”), 2025 (“2025 Notes”) and 2024 (“2024 Notes”) (together, the “Notes”) are classified as long-term debt in our condensed consolidated balance sheets based on their contractual maturity dates. Interest on the convertible notes is paid semi-annually in

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arrears. The estimated fair value of the convertible senior notes was determined through consideration of quoted market prices. The fair value is classified as Level 3 due to the limited trading activity for each of the convertible senior notes.

The Notes are convertible into cash, shares of Class C capital stock or a combination thereof, at our election, and may be settled as described below. They will mature on their respective maturity date, unless earlier repurchased, redeemed or converted in accordance with their terms.

The following table summarizes the conversion and redemption options with respect to the Notes:

Maturity Date	Early Conversion Date	Conversion Rate	Conversion Price		Optional Redemption Date
September 1, 2026	March 1, 2026	22.9830	$	43.51	September 5, 2023
May 15, 2025	November 15, 2024	14.8810	67.20		May 22, 2023
September 1, 2024	March 1, 2024	22.9830	43.51		September 5, 2022

The following table summarizes certain details related to the capped call confirmations with respect to certain of the convertible senior notes:

Maturity Date	Initial Cap Price		Cap Price Premium
September 1, 2026	$	80.5750	150	%
September 1, 2024	72.5175		125	%
July 1, 2023	105.45		85	%

There were no conversions of convertible senior notes during the three months ended March 31, 2022. Each series of the Notes was convertible during the three months ended March 31, 2021, at the option of the holders. The following table summarizes the activity for our convertible senior notes for the period presented (in millions, except share data which are presented in thousands):

	Three Months Ended March 31, 2021
	2023 Notes		2024 Notes		2026 Notes		Total
Aggregate principal amount settled	$	1	$	51	$	1	$	53
Shares of Class C capital stock issued	12		1,163		28		1,203
Total fair value of consideration transferred (1)	$	2	$	154	$	4	$	160
Loss on extinguishment of debt:
Consideration allocated to the liability component (2)	$	1	$	41	$	1	$	43
Carrying value of the liability component, net of unamortized debt discount and debt issuance costs	1		40		1		42
Loss on extinguishment of debt	$	—	$	1	$	—	$	1
Consideration allocated to the equity component	$	1	$	113	$	3	$	117
(1) The total fair value of consideration transferred includes the value of shares transferred to note holders using the daily volume weighted-average price of our Class C capital stock on the conversion date and an immaterial amount of cash paid in lieu of fractional shares.
(2) Consideration allocated to the liability component is based on the fair value of the liability component immediately prior to settlement, which was calculated using a discounted cash flow analysis with a market interest rate of a similar liability that does not have an associated convertible feature.

The last reported sale price of our Class C capital stock did not exceed 130% of the conversion price of each series of the Notes for more than 20 trading days during the 30 consecutive trading days ended March 31, 2022. Accordingly, each series of the Notes is not redeemable or convertible at the option of the holders from April 1 through June 30, 2022.

For additional details related to our convertible senior notes, see Note 13 in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

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Note 12. Income Taxes

We are subject to income taxes in the United States (federal and state), Canada and Serbia. As of March 31, 2022 and December 31, 2021, we have provided a valuation allowance against our net deferred tax assets that we believe, based on the weight of available evidence, are not more likely than not to be realized. We have accumulated federal tax losses of approximately $2.1 billion as of December 31, 2021, which are available to reduce future taxable income. We have accumulated state tax losses of approximately $73 million (tax effected) as of December 31, 2021.

We recorded an income tax benefit of $9 million for the three months ended March 31, 2022 and an income tax benefit of $3 million for the three months ended March 31, 2021, primarily related to state income taxes.

Note 13. Shareholders’ Equity

Preferred Stock

Our board of directors has the authority to fix and determine and to amend the number of shares of any series of preferred stock that is wholly unissued or to be established and to fix and determine and to amend the designation, preferences, voting powers and limitations and the relative, participating, optional or other rights, of any series of shares of preferred stock that is wholly unissued or to be established, subject in each case to certain approval rights of holders of our outstanding Class B common stock. There was no preferred stock issued and outstanding as of March 31, 2022 or December 31, 2021.

Common and Capital Stock

Our Class A common stock has no preferences or privileges and is not redeemable. Holders of Class A common stock are entitled to one vote for each share.

Our Class B common stock has no preferences or privileges and is not redeemable. At any time after the date of issuance, each share of Class B common stock, at the option of the holder, may be converted into one share of Class A common stock, or automatically converted into Class A common stock upon the affirmative vote by or written consent of holders of a majority of the shares of the Class B common stock. Holders of Class B common stock are entitled to 10 votes for each share.

Our Class C capital stock has no preferences or privileges, is not redeemable and, except in limited circumstances, is non-voting.

Equity Distribution Agreement

On February 17, 2021, we entered into an equity distribution agreement with certain sales agents and/or principals (the “Managers”), pursuant to which we may offer and sell from time to time, through the Managers, shares of our Class C capital stock, having an aggregate gross sales price of up to $1.0 billion, in such share amounts as we may specify by notice to the Managers, in accordance with the terms and conditions set forth in the equity distribution agreement.

There were no shares issued under the equity distribution agreement during the three months ended March 31, 2022.

The following table summarizes the activity pursuant to the equity distribution agreement for the period presented (in millions, except share data which are presented in thousands, and per share amounts):

	Three Months Ended March 31, 2021
Shares of Class C capital stock issued	3,164
Weighted-average issuance price per share	$	174.05
Gross proceeds (1)	$	551

(1) Net proceeds were $545 million after deducting $6 million of commissions and other offering expenses incurred.

Stock Repurchase Program

On December 2, 2021, Zillow Group’s Board of Directors authorized the repurchase of up to $750 million of its Class A common stock, Class C capital stock or a combination thereof (the “Stock Repurchase Program”). Repurchases under the Stock Repurchase Program may be made in open-market transactions or privately negotiated transactions, or in such other manner as deemed appropriate by management, and may be made from time to time as determined by management depending on market conditions, share price, trading volume, cash needs and other business factors, in each case as permitted by securities laws and

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other legal requirements. As of March 31, 2022, $100 million remained available for future repurchases pursuant to the Stock Repurchase Program.

The following table summarizes, on a settlement date basis, our Class A common stock and Class C capital stock repurchase activity under the Stock Repurchase Program for the period presented (in millions, except share data which are presented in thousands, and per share amounts):

	Three Months Ended March 31, 2022
	Class A common stock		Class C capital stock
Shares repurchased	1,412		4,446
Weighted-average price per share	$	58.38	$	59.66
Total purchase price	$	83	$	265

Note 14. Share-Based Awards

In addition to the option awards and restricted stock units typically granted under the Zillow Group, Inc. 2020 Incentive Plan (the “2020 Plan”) which vest quarterly over four years, during the three months ended March 31, 2022, the Compensation Committee of the Board of Directors approved option and restricted stock unit awards granted under the 2020 Plan in connection with the 2021 annual review cycle that vest quarterly over one year. The exercisability terms of these equity awards are otherwise consistent with the terms of the option awards and restricted stock units typically granted under the 2020 Plan. For additional information regarding our share-based awards, see Note 16 in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Option Awards

The following table summarizes option award activity for the three months ended March 31, 2022:

	Number of Shares Subject to Existing Options (in thousands)	Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2022	25,746	$	72.86	7.48	$	354
Granted	5,519	49.75
Exercised	(807)	43.97
Forfeited or cancelled	(1,155)	92.43
Outstanding at March 31, 2022	29,303	68.53		7.74	122
Vested and exercisable at March 31, 2022	12,890	55.63		6.19	102

The fair value of option awards granted is estimated at the date of grant using the Black-Scholes-Merton option-pricing model, assuming no dividends and with the following assumptions for the periods presented:

	Three Months Ended March 31,
	2022	2021
Expected volatility	55% - 60%	52% - 55%
Expected dividend yield	—	—
Risk-free interest rate	1.94% - 2.54%	0.57% - 0.90%
Weighted-average expected life	4.50 - 6.00 years	4.50 - 5.75 years
Weighted-average fair value of options granted	$25.08	$59.74

As of March 31, 2022, there was a total of $553 million in unrecognized compensation cost related to unvested option awards.

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Restricted Stock Units

The following table summarizes activity for restricted stock units for the three months ended March 31, 2022:

	Restricted Stock Units (in thousands)	Weighted- Average Grant- Date Fair Value
Unvested outstanding at January 1, 2022	6,074	$	66.51
Granted	4,839	49.71
Vested	(689)	59.68
Forfeited	(909)	63.29
Unvested outstanding at March 31, 2022	9,315	58.60

As of March 31, 2022, there was a total of $509 million in unrecognized compensation cost related to unvested restricted stock units.

Share-Based Compensation Expense

The following table presents the effects of share-based compensation expense in our condensed consolidated statements of operations during the periods presented (in millions):

	Three Months Ended March 31,
	2022		2021
Cost of revenue	$	3	$	3
Sales and marketing	12		10
Technology and development	29		26
General and administrative	38		25
Restructuring costs	9		—
Total	$	91	$	64

Note 15. Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of shares (including Class A common stock, Class B common stock and Class C capital stock) outstanding during the period. In the calculation of basic net income per share, undistributed earnings are allocated assuming all earnings during the period were distributed.

Diluted net income per share is computed by dividing net income by the weighted-average number of shares (including Class A common stock, Class B common stock and Class C capital stock) outstanding during the period and potentially dilutive Class A common stock and Class C capital stock equivalents, except in cases where the effect of the Class A common stock or Class C capital stock equivalent would be antidilutive. Potential Class A common stock and Class C capital stock equivalents consist of Class A common stock and Class C capital stock issuable upon exercise of stock options and Class A common stock and Class C capital stock underlying unvested restricted stock units and Class C capital stock issuable upon conversion of outstanding convertible senior notes.

Class A common stock and Class C capital stock issuable upon exercise of stock options and Class A common stock and Class C capital stock underlying unvested restricted stock units are calculated using the treasury stock method.

We have applied the if-converted method for calculating any potential dilutive effect of the conversion of the outstanding convertible notes on diluted net income per share, if applicable. The following table presents the maximum number of shares and conversion price per share of Class C capital stock for each of the Notes based on the aggregate principal amount outstanding as of March 31, 2022 (in thousands, except per share amounts):

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Maturity Date	Shares	Conversion Price per Share
September 1, 2026	11,464	$	43.51
May 15, 2025	8,408	67.20
September 1, 2024	13,983	43.51

For the periods presented, the following table reconciles the denominators used in the basic and diluted net income per share calculations (in thousands):

	Three Months Ended March 31,
	2022	2021
Denominator for basic calculation	248,542	243,234
Effect of dilutive securities:
Option awards	2,558	12,437
Unvested restricted stock units	863	3,675
Denominator for dilutive calculation	251,963	259,346

For the periods presented, the following Class A common stock and Class C capital stock equivalents were excluded from the calculations of diluted net income per share because their effect would have been antidilutive (in thousands):

	Three Months Ended March 31,
	2022	2021
Weighted-average Class A common stock and Class C capital stock option awards outstanding	5,120	2,546
Weighted-average Class A common stock and Class C capital stock restricted stock units outstanding	3,188	303
Class C capital stock issuable upon conversion of the convertible notes maturing in 2023, 2024, 2025 and 2026	33,855	39,834
Total Class A common stock and Class C capital stock equivalents	42,163	42,683

Note 16. Commitments and Contingencies

Interest Rate Lock Commitments

We have entered into IRLCs with prospective borrowers under our mortgage origination business whereby we commit to lend a certain loan amount under specific terms and at a specific interest rate to the borrower. These commitments are treated as derivatives and are carried at fair value. For additional information regarding our IRLCs, see Note 3 to our condensed consolidated financial statements.

Lease Commitments

We have entered into various non-cancelable operating lease agreements for certain of our office space and equipment with original lease periods expiring between 2022 and 2032. For additional information regarding our lease agreements, see Note 12 in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

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Purchase Commitments

Purchase commitments primarily include various non-cancelable agreements to purchase content related to our mobile applications and websites and certain cloud computing services. For additional information regarding our purchase obligations, see Note 18 in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Escrow Balances

In conducting our title and escrow operations through Zillow Closing Services, we routinely hold customers’ assets in escrow, pending completion of real estate transactions, and are responsible for the proper disposition of these balances for our customers. Certain of these amounts are maintained in segregated bank accounts and have not been included in the accompanying condensed consolidated balance sheets. These balances amounted to $3 million and $55 million, respectively, as of March 31, 2022 and December 31, 2021.

Letters of Credit

As of March 31, 2022, we have outstanding letters of credit of approximately $16 million, which secure our lease obligations in connection with certain of our office space operating leases.

Surety Bonds

In the course of business, we are required to provide financial commitments in the form of surety bonds to third parties as a guarantee of our performance on and our compliance with certain obligations. If we were to fail to perform or comply with these obligations, any draws upon surety bonds issued on our behalf would then trigger our payment obligation to the surety bond issuer. We have outstanding surety bonds issued for our benefit of approximately $13 million and $12 million, respectively, as of March 31, 2022 and December 31, 2021.

Legal Proceedings

We are involved in a number of legal proceedings concerning matters arising in connection with the conduct of our business activities, some of which are at preliminary stages and some of which seek an indeterminate amount of damages. We regularly evaluate the status of legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or additional loss may have been incurred to determine if accruals are appropriate. We further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made if accruals are not appropriate. For certain cases described below, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in preliminary stages; (ii) specific damages have not been sought; (iii) damages sought are, in our view, unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories presented. For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material effect on our financial position, results of operations or cash flow. For the matters discussed below, we have not recorded any material accruals as of March 31, 2022 or December 31, 2021.

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In August and September 2017, two purported class action lawsuits were filed against us and certain of our executive officers, alleging, among other things, violations of federal securities laws on behalf of a class of those who purchased our common stock between February 12, 2016 and August 8, 2017. One of those purported class actions, captioned Vargosko v. Zillow Group, Inc. et al, was brought in the U.S. District Court for the Central District of California. The other purported class action lawsuit, captioned Shotwell v. Zillow Group, Inc. et al, was brought in the U.S. District Court for the Western District of Washington. The complaints allege, among other things, that during the period between February 12, 2016 and August 8, 2017, we issued materially false and misleading statements regarding our business practices. The complaints seek to recover, among other things, alleged damages sustained by the purported class members as a result of the alleged misconduct. In November 2017, an amended complaint was filed against us and certain of our executive officers in the Shotwell v. Zillow Group purported class action lawsuit, extending the beginning of the class period to November 17, 2014. In January 2018, the Vargosko v. Zillow Group purported class action lawsuit was transferred to the U.S. District Court for the Western District of Washington and consolidated with the Shotwell v. Zillow Group purported class action lawsuit. In February 2018, the plaintiffs filed a consolidated amended complaint, and in April 2018, we filed our motion to dismiss the consolidated amended complaint. In October 2018, our motion to dismiss was granted without prejudice, and in November 2018, the plaintiffs filed a second consolidated amended complaint, which we moved to dismiss in December 2018. On April 19, 2019, our motion to dismiss the second consolidated amended complaint was denied. On October 11, 2019, plaintiffs filed a motion for class certification which was granted by the court on October 28, 2020. On February 17, 2021, the Ninth Circuit Court of Appeals denied our petition for review of that decision. We have denied the allegations of wrongdoing and intend to vigorously defend the claims in this lawsuit. We do not believe that there is a reasonable possibility that a material loss will be incurred related to this lawsuit.

In October and November 2017 and January and February 2018, four shareholder derivative lawsuits were filed in the U.S. District Court for the Western District of Washington and the Superior Court of the State of Washington, King County, against certain of our executive officers and directors seeking unspecified damages on behalf of the Company and certain other relief, such as reform to corporate governance practices. The plaintiffs in the derivative suits (in which the Company is a nominal defendant) allege, among other things, that the defendants breached their fiduciary duties in connection with oversight of the Company’s public statements and legal compliance, and as a result of the breach of such fiduciary duties, the Company was damaged, and defendants were unjustly enriched. Certain of the plaintiffs also allege, among other things, violations of Section 14(a) of the Securities Exchange Act of 1934 and waste of corporate assets. On February 5, 2018, the U.S. District Court for the Western District of Washington consolidated the two federal shareholder derivative lawsuits pending in that court. On February 16, 2018, the Superior Court of the State of Washington, King County, consolidated the two shareholder derivative lawsuits pending in that court. All four of the shareholder derivative lawsuits were stayed until our motion to dismiss the second consolidated amended complaint in the securities class action lawsuit discussed above was denied in April 2019. On July 8, 2019, the plaintiffs in the consolidated federal derivative lawsuit filed a consolidated shareholder derivative complaint, which we moved to dismiss on August 22, 2019. On February 28, 2020, our motion to dismiss the consolidated federal shareholder derivative complaint was denied. On February 16, 2021, the court in the consolidated state derivative matter stayed the action. On March 5, 2021, a new shareholder derivative lawsuit was filed in the U.S. District Court for the Western District of Washington against certain of our executive officers and directors seeking unspecified damages on behalf of the Company and certain other relief, such as reform to corporate governance practices, alleging, among other things, violations of federal securities laws. The U.S. District Court for the Western District of Washington formally consolidated the new lawsuit with the other consolidated federal shareholder derivative lawsuit pending in that court on June 15, 2021. The defendants intend to deny the allegations of wrongdoing and vigorously defend the claims in this consolidated lawsuit. We do not believe that there is a reasonable possibility that a material loss will be incurred related to these derivative matters.

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On September 17, 2019, International Business Machines Corporation (“IBM”) filed a complaint against us in the U.S. District Court for the Central District of California, alleging, among other things, that the Company has infringed and continues to willfully infringe seven patents held by IBM and seeks unspecified damages, including a request that the amount of compensatory damages be trebled, injunctive relief and costs and reasonable attorneys’ fees. On November 8, 2019, we filed a motion to transfer venue and/or to dismiss the complaint. On December 2, 2019, IBM filed an amended complaint, and on December 16, 2019 we filed a renewed motion to transfer venue and/or to dismiss the complaint. The Company’s motion to transfer venue to the U.S. District Court for the Western District of Washington was granted on May 28, 2020. On August 12, 2020, IBM filed its answer to our counterclaims. On September 18, 2020, we filed four Inter Partes Review (“IPR”) petitions before the U.S. Patent and Trial Appeal Board (“PTAB”) seeking the Board’s review of the patentability with respect to three of the patents asserted by IBM in the lawsuit. On March 15, 2021, the PTAB instituted IPR proceedings with respect to two of the three patents for which we filed petitions. On March 22, 2021, the PTAB denied institution with respect to the last of the three patents. On January 22, 2021, the court partially stayed the action with respect to all patents for which we filed an IPR and set forth a motion schedule. On March 8, 2021, IBM filed its second amended complaint. On March 25, 2021, we filed an amended motion for judgment on the pleadings. On July 15, 2021, the court rendered an order in connection with the motion for judgment on the pleadings finding in our favor on two of the four patents on which we filed our motion. On August 31, 2021, the Court ruled that the parties will proceed with respect to the two patents for which it previously denied judgment, and vacated the stay with respect to one of the three patents for which Zillow filed an IPR, which was denied by the PTAB. On September 23, 2021, IBM filed a notice of appeal with the United States Court of Appeals for the Federal Circuit with respect to the August 31, 2021 judgment entered. Oral argument on the appeal is scheduled for June 7, 2022. On March 3, 2022, the PTAB ruled on Zillow’s two remaining IPRs finding that Zillow was able to prove certain claims unpatentable, and others it was not. We deny the allegations of any wrongdoing and intend to vigorously defend the claims in the lawsuit. There is a reasonable possibility that a loss may be incurred related to this matter; however, the possible loss or range of loss is not estimable.

On July 21, 2020, IBM filed a second action against us in the U.S. District Court for the Western District of Washington, alleging, among other things, that the Company has infringed and continues to willfully infringe five patents held by IBM and seeks unspecified damages. On September 14, 2020, we filed a motion to dismiss the complaint filed in the action, to which IBM responded by the filing of an amended complaint on November 5, 2020. On December 18, 2020, we filed a motion to dismiss IBM’s first amended complaint. On December 23, 2020, the Court issued a written order staying this case in full. On July 23, 2021, we filed an IPR with the PTAB with respect to one patent included in the second lawsuit. On October 6, 2021, the stay of this action was lifted, except for proceeds relating to the one patent for which we filed an IPR. On December 1, 2021, the Court dismissed the fourth claim asserted by IBM in its amended complaint. On December 16, 2021 Zillow filed a motion to dismiss the remaining claims alleged in IBM’s amended complaint. On March 9, 2022, the Court granted Zillow’s motion to dismiss in full, dismissing IBM’s claims related to all the patents asserted by IBM in this action, except for the one patent for which an IPR was still pending. On March 10, 2022, the PTAB rendered its decision denying Zillow’s IPR on the one remaining patent, for which this case continues to remain stayed. We deny the allegations of any wrongdoing and intend to vigorously defend the claims in the lawsuit. There is a reasonable possibility that a loss may be incurred related to this matter; however, the possible loss or range of loss is not estimable.

On November 16, 2021, November 19, 2021 and January 6, 2022, three purported class action lawsuits were filed against us and certain of our executive officers, alleging, among other things, violations of federal securities laws on behalf of a class of those who purchased our stock between August 7, 2020 and November 2, 2021. The three purported class action lawsuits, captioned Barua v. Zillow Group, Inc. et al., Silverberg v. Zillow Group, et al. and Hillier v. Zillow Group, Inc. et al. were brought in the U.S. District Court for the Western District of Washington and were consolidated on February 16, 2022. The complaints allege, among other things, that we issued materially false and misleading statements regarding our Zillow Offers business. The complaints seek to recover, among other things, alleged damages sustained by the purported class members as a result of the alleged misconduct. We intend to deny the allegations of wrongdoing and intend to vigorously defend the claims in these lawsuits. We do not believe that a loss related to these lawsuits is probable.

On March 10, 2022, a shareholder derivative suit was filed in the U.S. District Court for the Western District of Washington against us and certain of our executive officers and directors seeking unspecified damages on behalf of the Company and certain other relief, such as reform to corporate governance practices. The plaintiffs (including the Company as a nominal defendant) allege, among other things, that the defendants breached their fiduciary duties by failing to maintain an effective system of internal controls, which purportedly caused the losses the Company incurred when it decided to wind down Zillow Offers operations. Plaintiffs also allege violations of Section 14(a) of the Securities Exchange Act of 1934 and waste of corporate assets. The defendants intend to deny the allegations of wrongdoing and vigorously defend the claims in this lawsuit. We do not believe that a loss related to this lawsuit is probable.

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In addition to the matters discussed above, from time to time, we are involved in litigation and claims that arise in the ordinary course of business. Although we cannot be certain of the outcome of any such litigation or claims, nor the amount of damages and exposure that we could incur, we currently believe that the final disposition of such matters will not have a material effect on our business, financial position, results of operations or cash flow. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

Indemnifications

In the ordinary course of business, we enter into contractual arrangements under which we agree to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters. For additional information regarding our indemnifications, see Note 18 in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Note 17. Segment Information and Revenue

We have three operating and reportable segments, which have been identified based on the way in which our chief operating decision-maker manages our business, makes operating decisions and evaluates operating performance. The chief executive officer acts as the chief operating decision-maker and reviews financial and operational information for the Homes, IMT and Mortgages segments.

The Homes segment includes the financial results from Zillow Group’s purchase and sale of homes directly through Zillow Offers and the financial results from title and escrow services performed by Zillow Closing Services primarily in connection with the purchase and sale of Zillow Offers homes. In November 2021, our Board of Directors made the determination to wind down Zillow Offers operations. The IMT segment includes the financial results for the Premier Agent, rentals and new construction marketplaces, dotloop and display, as well as revenue from the sale of various other marketing and business products and services to real estate professionals. In the fourth quarter of 2021, we began to include the financial results of ShowingTime in the IMT segment. The Mortgages segment primarily includes the financial results for mortgage originations and the sale of mortgages on the secondary market through Zillow Home Loans and advertising sold to mortgage lenders and other mortgage professionals.

Revenue and costs are directly attributed to our segments when possible. However, due to the integrated structure of our business, certain costs incurred by one segment may benefit the other segments. These costs primarily include headcount-related expenses, general and administrative expenses including executive, finance, accounting, legal, human resources, recruiting and facilities costs, product development and data acquisition costs, costs related to operating our mobile applications, and websites and marketing and advertising costs. These costs are allocated to each segment based on the estimated benefit each segment receives from such expenditures.

The chief executive officer reviews information about our revenue categories as well as statement of operations data inclusive of income (loss) before income taxes by segment. This information is included in the following tables for the periods presented (in millions) and prior period amounts have been recast to conform to the current format (rentals revenue is now presented as a separate revenue category and Note 2 includes additional details regarding certain reclassifications):

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	Three Months Ended March 31, 2022						Three Months Ended March 31, 2021
	Homes		IMT		Mortgages		Homes		IMT		Mortgages
Revenue:
Zillow Offers	$	3,718	$	—	$	—	$	701	$	—	$	—
Premier Agent	—		363		—		—		334		—
Rentals	—		61		—		—		64		—
Other	3		66		—		3		48		—
Mortgages	—		—		46		—		—		68
Total revenue	3,721		490		46		704		446		68
Cost of revenue (1)	3,537		65		20		645		47		19
Gross profit	184		425		26		59		399		49
Operating expenses (1):
Sales and marketing	142		142		23		55		117		25
Technology and development	12		92		10		33		79		8
General and administrative	24		77		18		25		59		17
Restructuring costs	30		6		2		—		—		—
Acquisition-related costs	—		—		—		—		1		—
Total operating expenses	208		317		53		113		256		50
Income (loss) from operations	(24)		108		(27)		(54)		143		(1)
Segment other income	6		—		1		—		—		1
Segment interest expense	(36)		—		(1)		(4)		—		(2)
Loss on extinguishment of debt	(14)		—		—		—		—		—
Income (loss) before income taxes (2)	$	(68)	$	108	$	(27)	$	(58)	$	143	$	(2)

(1) The following table presents depreciation and amortization expense and share-based compensation expense for each of our segments for the periods presented (in millions):

	Three Months Ended March 31, 2022						Three Months Ended March 31, 2021
	Homes		IMT		Mortgages		Homes		IMT		Mortgages
Depreciation and amortization expense	$	5	$	35	$	3	$	5	$	23	$	1
Share-based compensation expense	$	12	$	60	$	10	$	16	$	42	$	6

(2) The following table presents the reconciliation of total segment income (loss) before income taxes to consolidated income before income taxes for the periods presented (in millions):

	Three Months Ended March 31,
	2022		2021
Total segment income before income taxes	$	13	$	83
Corporate interest expense	(7)		(34)
Corporate other income	1		1
Loss on extinguishment of debt	—		(1)
Consolidated income before income taxes	$	7	$	49

Certain corporate items are not directly attributable to any of our segments, including the loss on extinguishment of debt, interest income earned on our short-term investments included in other income and interest costs on our convertible senior notes included in interest expense.

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Note 18. Restructuring and Zillow Offers Wind Down

In November 2021, the Board of Directors of Zillow Group made the determination to wind down Zillow Offers operations. This decision was made in light of home pricing unpredictability, capacity constraints and other operational challenges faced by Zillow Offers that were exacerbated by an unprecedented housing market, a global pandemic and a difficult labor and supply chain environment, all of which led us to conclude that, despite its initial promise in earlier quarters, Zillow Offers was unlikely to be a sufficiently stable line of business to meet our goals and needs going forward. The wind down is expected to be completed in the second half of 2022 and result in approximately a 25% reduction of Zillow Group’s workforce of which approximately 21% has been completed. During the wind down period, we continue to renovate and sell properties in inventory.

Cumulative amounts recognized and charges incurred during the three months ended March 31, 2022 primarily related to the wind down of Zillow Offers operations, and we expect future charges to primarily relate to the wind down of Zillow Offers operations and to primarily be recorded within our Homes segment. We have and plan to continue to fund the cash costs through existing cash and investment balances.

The following table presents a summary of Zillow Offers wind down-related charges incurred for the periods presented and our estimate of the total costs we expect to incur over the wind down period (in millions):

		Three Months Ended March 31, 2022
	Statement of Operations Classification	Homes Segment		IMT Segment		Mortgages Segment		Total Recognized		Cumulative Amount Recognized		Total Expected
Inventory write-down	Cost of revenue	$	5	$	—	$	—	$	5	N/A		N/A
Other charges:
Employee termination costs	Restructuring costs	$	25	$	6	$	2	$	33	$	94	$95 - $106
Financing-related charges	Interest expense and Loss on debt extinguishment	30		—		—		30		36		$40
Contract termination costs	Restructuring costs	4		—		—		4		14		$16 - $19
Accelerated depreciation and amortization	Cost of revenue	6		—		—		6		11		$17
Asset write-offs	Restructuring costs	—		—		—		—		1		$1
Other	Restructuring costs	1		—		—		1		1		$1 - $2
Total other charges		66		6		2		74		157		$170 - $185
Total		$	71	$	6	$	2	$	79	$	157

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The following table presents the accrual activity for exit and disposal costs for three months ended March 31, 2022, primarily related to cash severance employee termination costs and contract termination costs (in millions):

	Three Months Ended March 31, 2022
	Employee Termination Costs		Contract Termination Costs (1)		Other		Total
Balance, beginning of period	$	45	$	4	$	—	$	49
Additions charged to expense	25		14		1		40
Cash payments	(27)		(12)		—		(39)
Adjustments	(1)		(2)		—		(3)
Balance, end of period	$	42	$	4	$	1	$	47
(1) Contract termination costs for exit and disposal activities include the contractual prepayment penalties associated with our Zillow Offers financing facilities further described below under the subheading “Financing-Related Charges.”

Inventory write-downs

In determining the value of our inventory, we consider indicators that net realizable value may be lower than cost at the portfolio level, market level, and in certain circumstances by structure type (single family residence, condo, etc.) by reviewing economic analyses, recent trends in home price appreciation and changes to resale strategy. Factors we analyze include gross margin on homes closed in recent months, projected gross margin on homes under contract to sell, historical list price to resale price variances, and trends in gross margin, selling prices and average selling concessions or other costs of selling homes. We recorded a write-down to inventory totaling $5 million with a corresponding increase to cost of revenue in our condensed consolidated statement of operations for the three months ended March 31, 2022. See Note 5 for additional information on inventory.

Employee Termination Costs

At March 31, 2022, accrued employee termination costs of $41 million related to one-time termination benefits and $2 million related to other severance and employee costs, primarily pertaining to ongoing employee benefit arrangements, were recorded within accrued compensation and benefits in our condensed consolidated balance sheet.

Accelerated Depreciation and Amortization

We have adjusted the useful life of certain assets impacted by the wind down of Zillow Offers operations to end on the expected cease use date. This adjustment resulted in the accelerated recognition of depreciation and amortization primarily related to internal use software and website development costs.

Contract Termination Costs

At March 31, 2022, $4 million of contract termination costs are included in accrued expenses and other current liabilities in our condensed consolidated balance sheet. These costs relate to contract termination penalties and costs that will continue to be incurred under contracts without further economic benefit.

Financing-Related Charges

Financing-related charges incurred for the three months ended March 31, 2022 include the accelerated recognition of certain deferred debt issuance costs and debt discounts recorded to interest expense in our condensed consolidated statement of operations. Financing-related charges for the period also include expenses recorded within loss on extinguishment of debt within our condensed consolidated statement of operations primarily related to prepayment penalties incurred on the repayment of Zillow Offers financing facilities. Refer to Note 11 for further discussion of the Zillow Offers debt activity for the three months ended March 31, 2022.

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Note 19. Subsequent Events

On May 4, 2022, the Board of Directors authorized the repurchase of up to $1 billion of our Class A common stock, Class C capital stock or a combination thereof. This authorization is in addition to the $750 million repurchase authorization previously announced on December 2, 2021. The repurchases may be made in open-market transactions or privately negotiated transactions, or in such other manner as deemed appropriate by management, and may be made from time to time as determined by management depending on market conditions, share price, trading volume, cash needs and other business factors. The repurchase program does not have an expiration date.

In April 2022, in connection with the wind down of Zillow Offers operations, we repaid the remaining outstanding principal associated with the 2021-1 and 2021-2 term loans of $320 million and $473 million, respectively, plus accrued interest and prepayment penalties.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q. In addition to historical financial information, the following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results may differ materially from those described in or implied by any forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Quarterly Report on Form 10-Q, including in the section titled “Note Regarding Forward-Looking Statements,” and also those factors discussed in Part I, Item 1A (Risk Factors) of our Annual Report on Form 10-K for the year ended December 31, 2021.

Overview of our Business

Zillow Group, Inc. is reimagining real estate to make it easier to unlock life’s next chapter. As the most visited real estate website in the United States, Zillow and its affiliates help high-intent movers find and win their home through digital solutions, first class partners and easier buying, selling, financing and renting experiences. We help customers find and win their home with referrals to trusted Zillow Premier Agent and Premier Broker partners and our portfolio of Zillow-branded and affiliated transaction-oriented services. Zillow Offers has purchased and sold homes directly in markets across the country. In the fourth quarter of 2021, we began to wind down Zillow Offers operations with expected completion in the second half of 2022. Zillow Home Loans, our affiliate lender, provides our customers with an easy option to get pre-approved and secure financing for their next home purchase.

Other consumer brands include Zillow Rentals, Trulia, StreetEasy, Zillow Closing Services, HotPads and Out East. In addition, Zillow Group provides a comprehensive suite of marketing software and technology solutions for the real estate industry which include Mortech, dotloop, Bridge Interactive, New Home Feed and ShowingTime.

Reportable Segments and Revenue Overview

Zillow Group has three reportable segments: the Homes segment, the Internet, Media & Technology (“IMT”) segment and the Mortgages segment. The Homes segment includes the financial results from Zillow Group’s purchase and sale of homes directly through the Zillow Offers service and the financial results from the title and escrow services performed by Zillow Closing Services, primarily in connection with the purchase and sale of Zillow Offers homes. The IMT segment includes the financial results for the Premier Agent, rentals and new construction marketplaces, as well as dotloop, display, and other advertising and business software solutions. In the fourth quarter of 2021, we began to include the financial results of ShowingTime in the IMT segment. For additional information regarding the September 2021 acquisition of ShowingTime, see Note 9 in our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q. The Mortgages segment primarily includes financial results for mortgage originations through Zillow Home Loans and advertising sold to mortgage lenders and other mortgage professionals.

The Homes segment has primarily generated revenue through our Zillow Offers service from the resale of homes. Other Homes revenue relates to revenue associated with title and escrow services provided through Zillow Closing Services. As a result of the decision to wind down Zillow Offers operations, we plan to report Zillow Offers as a discontinued operation beginning with the period during which disposition of the business is complete. We expect the disposition to be complete in the second half of 2022.

Premier Agent revenue is generated by the sale of advertising services, as well as marketing and technology products and services, to help real estate agents and brokers grow and manage their businesses. We offer these products and services through our Premier Agent and Premier Broker programs. Premier Agent and Premier Broker products, which include the delivery of validated customer connections, or leads, are primarily offered on a share of voice basis. Connections are distributed to Premier Agent and Premier Broker partners in proportion to their share of voice, or an agent advertiser’s share of total advertising purchased in a particular zip code. Connections are delivered when customer contact information is provided to Premier Agent and Premier Broker partners. Connections are provided as part of our suite of advertising services for Premier Agent and Premier Broker partners; we do not charge a separate fee for these customer leads.

We also offer a pay for performance pricing model called “Flex” for Premier Agent and Premier Broker services in certain markets to select partners. With the Flex model, Premier Agent and Premier Broker partners are provided with validated leads at no initial cost and pay a performance fee only when a real estate transaction is closed with one of the leads.

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Rentals revenue includes advertising sold to property managers, landlords and other rental professionals on a cost per lead, click, lease, listing or impression basis or for a fixed fee for certain advertising packages. Rentals revenue also includes revenue generated from our rental applications product, through which potential renters can submit applications to multiple properties for a flat service fee.

Other IMT revenue includes revenue generated by new construction and display advertising, as well as revenue from the sale of various other advertising and business technology solutions for real estate professionals, including dotloop and ShowingTime. New construction revenue primarily includes advertising services sold to home builders on a cost per residential community or cost per impression basis. Display revenue consists of graphical mobile and web advertising sold on a cost per impression or cost per click basis to advertisers promoting their brands on our mobile applications and websites. ShowingTime revenue is primarily generated by Appointment Center, a software-as-a-service and call center solution allowing real estate agents, brokerages and multiple listing services to efficiently schedule real estate viewing appointments on behalf of their customers. Appointment Center services also include call center specialists who provide scheduling support to customers. Appointment Center revenue is primarily billed in advance on a monthly basis.

In our Mortgages segment, we primarily generate revenue through mortgage originations and the related sale of mortgages on the secondary market through Zillow Home Loans and from advertising sold to mortgage lenders and other mortgage professionals on a cost per lead basis, including our Custom Quote and Connect services.

As of March 31, 2022, we had 6,549 full-time employees compared to 8,005 full-time employees as of December 31, 2021. The reduction in employee headcount was primarily the result of our decision to wind down Zillow Offers operations.

Financial Highlights

For the three months ended March 31, 2022 and 2021, we generated total revenue of $4.3 billion and $1.2 billion, respectively, representing year-over-year growth of 250%. The increase in total revenue was primarily attributable to the following:

•Zillow Offers revenue increased by $3.0 billion to $3.7 billion for the three months ended March 31, 2022 due to the sale of 8,981 homes at an average selling price of $414.0 thousand per home. For the three months ended March 31, 2021, Zillow Offers revenue was $701 million due to the sale of 1,965 homes at an average selling price of $356.7 thousand per home. We expect Zillow Offers revenue to decrease in subsequent quarters as we complete our wind down of Zillow Offers.

•Premier Agent revenue increased by $29 million to $363 million for the three months ended March 31, 2022 compared to $334 million for the three months ended March 31, 2021. The increase in Premier Agent revenue was primarily due to a 4% increase in Premier Agent revenue per visit, driven primarily by continued strong demand across the residential real estate industry and growth in monetization of our impressions and leads.

•Other IMT revenue increased by $18 million to $66 million for the three months ended March 31, 2022 compared to $48 million for the three months ended March 31, 2021. The increase in Other IMT revenue was primarily a result of the addition of ShowingTime revenue beginning in the fourth quarter of 2021.

•Mortgages segment revenue decreased by $22 million to $46 million for the three months ended March 31, 2022 compared to $68 million for the three months ended March 31, 2021, driven by a decrease in revenue generated by Zillow Home Loans, as total loan origination volume decreased 40%. The decrease in loan origination volume was driven primarily by higher interest rates that decreased demand for refinance mortgages.

During the three months ended March 31, 2022 and 2021, we generated total gross profit of $635 million and $507 million, respectively, representing a year-over-year increase of 25%.

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Wind Down of Zillow Offers Operations

In November 2021, the Board of Directors of Zillow Group made the determination to wind down Zillow Offers operations. The wind down is expected to be completed in the second half of 2022 and result in approximately a 25% reduction of Zillow Group’s workforce of which approximately 21% has been completed. During the wind down period, we continue to sell properties in inventory. As of early May 2022, we have sold, are under contract to sell or have reached agreement on disposition terms for all except approximately 100 homes. We expect the sale of our remaining inventory to be substantially complete during the three months ending June 30, 2022, with operations and a small amount of inventory extending into the three months ending September 30, 2022. As of January 31, 2022, we are no longer acquiring homes. For the three months ended March 31, 2022, we recorded a write-down to inventory totaling $5 million with a corresponding increase to cost of revenue as a result of purchasing homes at higher prices than our current estimates of the future selling prices after selling costs. For the three months ended March 31, 2022, we have also incurred $30 million in restructuring costs within our Homes segment associated with our wind down of Zillow Offers operations, primarily associated with one-time termination benefit costs, other severance and employee costs and contract termination costs. Additionally, for the three months ended March 31, 2022, we incurred $30 million of charges associated with winding down Zillow Offers financing facilities, which have been recorded within interest expense and loss on extinguishment of debt, and $6 million of accelerated depreciation and amortization recorded to cost of revenue. For additional information regarding the impairment and restructuring costs, including total expected costs to be incurred and cumulative costs incurred as of March 31, 2022, see Note 18 in our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q and the subsection below titled “Impairment and Restructuring” under the caption “Results of Operations.” Given the wind down of Zillow Offers and corresponding shift in our strategic plans, financial performance for prior and current periods may not be indicative of future performance.

COVID-19 Impact

The effect and extent of the impact of the COVID-19 pandemic on our business continues to be uncertain and difficult to predict. While we have seen recovery in our business and the businesses of our customers and real estate partners from the initial economic effects of the pandemic, the impact of the COVID-19 pandemic (including variants) may continue to affect our financial results in 2022. The extent to which COVID-19 (including any variants) continues to impact our results and financial position will depend on future developments, which are uncertain and difficult to predict.

Health of Residential Housing Market

Our financial performance is impacted by changes in the health of the residential housing market, which is impacted, in turn, by general economic conditions. Current market factors, including low housing inventory, decreases in new for-sale listings, increases in mortgage interest rates, inflationary conditions and high rental occupancy rates may have a negative impact on the number of transactions that consumers complete using our products and services and on demand for our advertising services. The extent to which these factors impact our results and financial position will depend on future developments, which are uncertain and difficult to predict.

Key Metrics

Management has identified visits, unique users, and the volume of loans originated through Zillow Home Loans as relevant to investors’ and others’ assessment of our financial condition and results of operations. We no longer consider the number of homes sold as a key metric given the wind down of Zillow Offers operations.

Visits

The number of visits is an important metric because it is an indicator of consumers’ level of engagement with our mobile applications, websites and other services. We believe highly engaged consumers are more likely to have participated in our Zillow Offers program, use Zillow Homes Loans or be transaction-ready real estate market participants and therefore are more sought-after by our Premier Agent and Premier Broker real estate partners.

We define a visit as a group of interactions by users with the Zillow, Trulia and StreetEasy mobile applications and websites. A single visit can contain multiple page views and actions, and a single user can open multiple visits across domains, web browsers, desktop or mobile devices. Visits can occur on the same day, or over several days, weeks or months.

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Zillow and StreetEasy measure visits with Google Analytics, and Trulia measures visits with Adobe Analytics. Visits to Trulia end after thirty minutes of user inactivity. Visits to Zillow and StreetEasy end either: (i) after thirty minutes of user inactivity or at midnight; or (ii) through a campaign change. A visit ends through a campaign change if a visitor arrives via one campaign or source (for example, via a search engine or referring link on a third-party website), leaves the mobile application or website, and then returns via another campaign or source.

The following table presents the number of visits to our mobile applications and websites for the periods presented (in millions):

	Three Months Ended March 31,		2021 to 2022 % Change
	2022	2021
Visits	2,627	2,511	5	%

Unique Users

Measuring unique users is important to us because much of our revenue depends in part on our ability to connect home buyers and sellers, renters and individuals with or looking for a mortgage to real estate, rental and mortgage professionals, products and services. Growth in consumer traffic to our mobile applications and websites increases the number of impressions, clicks, connections, leads and other events we can monetize to generate revenue. For example, our Homes segment revenue depended in part, and our Mortgages segment revenue depends in part, on users accessing our mobile applications and websites to engage in the sale, purchase and financing of homes with Zillow Offers and Zillow Home Loans, and our Premier Agent revenue, rentals revenue and display revenue depend on advertisements being served to users of our mobile applications and websites.

We count a unique user the first time an individual accesses one of our mobile applications using a mobile device during a calendar month and the first time an individual accesses one of our websites using a web browser during a calendar month. If an individual accesses our mobile applications using different mobile devices within a given month, the first instance of access by each such mobile device is counted as a separate unique user. If an individual accesses more than one of our mobile applications within a given month, the first access to each mobile application is counted as a separate unique user. If an individual accesses our websites using different web browsers within a given month, the first access by each such web browser is counted as a separate unique user. If an individual accesses more than one of our websites in a single month, the first access to each website is counted as a separate unique user since unique users are tracked separately for each domain. Zillow, StreetEasy and HotPads measure unique users with Google Analytics, and Trulia measures unique users with Adobe Analytics.

Due to third-party technological limitations, user software settings, or user behavior, Google Analytics may assign a unique cookie to different instances of access by the same individual to our mobile applications and websites. In such instances, Google Analytics would count different instances of access by the same individual as separate unique users. Accordingly, reliance on the number of unique users counted by Google Analytics may overstate the actual number of unique users who access our mobile applications and websites during the period.

The following table presents our average monthly unique users for the periods presented (in millions):

	Three Months Ended March 31,		2021 to 2022 % Change
	2022	2021
Average monthly unique users	211	221	(5)	%

During the three months ended March 31, 2022, unique users decreased 5% compared to the three months ended March 31, 2021, driven primarily by strong residential real estate industry recovery in the comparable prior year period coupled with more normalized seasonality impacts during the three months ended March 31, 2022 compared to the three months ended March 31, 2021.

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Loan Origination Volume

Loan origination volume is an important metric as it is a measure of how successful we are at growing originations and subsequent sales of mortgage loan products through our mortgage origination business, Zillow Home Loans, which directly impacts our Mortgages segment revenue. Loan origination volume represents the total value of mortgage loan originations closed through Zillow Home Loans during the period.

The following table presents loan origination volume by purpose and in total for Zillow Home Loans for the periods presented (in millions):

	Three Months Ended March 31,				2021 to 2022 % Change
	2022		2021
Purchase loan origination volume	$	123	$	115	7	%
Refinance loan origination volume	578		1,052		(45)	%
Total loan origination volume	$	701	$	1,167	(40)	%

During the three months ended March 31, 2022, total loan origination volume decreased 40% compared to the three months ended March 31, 2021, driven primarily by higher interest rates which decreased demand for refinance mortgages.

Results of Operations

Given the uncertainty surrounding the COVID-19 pandemic, the health of the residential housing market and strategic shifts in our business, financial performance for prior and current periods may not be indicative of future performance.

Revenue

									% of Total Revenue
	Three Months Ended March 31,				2021 to 2022				Three Months Ended March 31,
	2022		2021		$ Change		% Change		2022		2021
	(in millions, unaudited)
Revenue:
Homes segment:
Zillow Offers	$	3,718	$	701	$	3,017	430	%	87	%	58	%
Other	3		3		—		—		—		—
Total Homes segment revenue	3,721		704		3,017		429		87		58
IMT segment:
Premier Agent	363		334		29		9		9		27
Rentals	61		64		(3)		(5)		1		5
Other	66		48		18		38		2		4
Total IMT segment revenue	490		446		44		10		12		37
Mortgages segment	46		68		(22)		(32)		1		6
Total revenue	$	4,257	$	1,218	$	3,039	250	%	100	%	100	%

Total revenue increased $3.0 billion, or 250%, to $4.3 billion:

•Homes segment revenue increased 429% to $3.7 billion, primarily due to an increase of $3.0 billion, or 430%, in Zillow Offers revenue. Zillow Offers revenue increased to $3.7 billion due to the sale of 8,981 homes at an average selling price of $414.0 thousand per home, as compared to the sale of 1,965 homes at an average selling price of $356.7 thousand per home in the comparable prior year period. The increase in revenue is due to increased acquisition volumes in 2021 subsequent to the three months ended March 31, 2021, which resulted in higher resale volumes, including accelerated resales, as we wind down Zillow Offers operations. We expect Zillow Offers revenue to decrease in subsequent quarters as we complete our wind down of Zillow Offers.

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•IMT segment revenue increased 10% to $490 million, primarily due to a $29 million, or 9%, increase in Premier Agent revenue. The increase in Premier Agent revenue was driven by an increase in Premier Agent revenue per visit, which increased by 4% to $0.138 for the three months ended March 31, 2022 from $0.133 for the three months ended March 31, 2021. We calculate Premier Agent revenue per visit by dividing the revenue generated by our Premier Agent and Premier Broker programs by the number of visits in the period. The increase in Premier Agent revenue per visit was driven primarily by continued strong demand across the residential real estate industry which increased home sales prices and resulted in higher monetization of leads. Other IMT revenue increased primarily as a result of the addition of ShowingTime revenue beginning in the fourth quarter of 2021.

•Mortgages segment revenue decreased 32% to $46 million primarily due to a decline in mortgage originations revenue. The decrease in mortgage originations revenue was primarily due to a 40% decrease in total loan origination volume from $1.2 billion to $701 million, primarily resulting from a decrease in refinance activity. The decrease in mortgage originations revenue was also attributable to a 27% decrease in gain on sale margin driven by industry margin compression. Gain on sale margin represents the net gain on sale of mortgage loans divided by total loan origination volume for the period. Net gain on sale of mortgage loans includes all components related to the origination and sale of mortgage loans, including the net gain on sale of loans into the secondary market, loan origination fees, unrealized gains and losses associated with changes in fair value of interest rate lock commitments and mortgage loans held for sale, realized and unrealized gains or losses from derivative financial instruments and the provision for losses relating to representations and warranties.

Income (Loss) Before Income Taxes

									% of Revenue
	Three Months Ended March 31,				2021 to 2022				Three Months Ended March 31,
	2022		2021		$ Change		% Change		2022		2021
	(in millions, unaudited)
Income (loss) before income taxes:
Homes segment	$	(68)	$	(58)	$	(10)	(17)	%	(2)	%	(8)	%
IMT segment	108		143		(35)		(24)		22		32
Mortgages segment	(27)		(2)		(25)		(1250)		(59)		(3)
Corporate items (1)	(6)		(34)		28		82		N/A		N/A
Total income before income taxes	$	7	$	49	$	(42)	(86)	%	—	%	4	%

(1) Certain corporate items are not directly attributable to any of our segments, including the loss on extinguishment of debt, interest income earned on our short-term investments included in other income and interest costs on our convertible senior notes included in interest expense.

Adjusted EBITDA

									% of Revenue
	Three Months Ended March 31,				2021 to 2022				Three Months Ended March 31,
	2022		2021		$ Change		% Change		2022		2021
	(in millions, unaudited)
Net income	$	16	$	52	$	(36)	(69)	%	—	%	4	%
Adjusted EBITDA:
Homes segment	$	23	$	(33)	$	56	170	%	1	%	(5)	%
IMT segment	209		209		—		—		43		47
Mortgages segment	(12)		6		(18)		(300)		(26)		9
Total Adjusted EBITDA	$	220	$	182	$	38	21	%	5	%	15	%

To provide investors with additional information regarding our financial results, we have disclosed Adjusted EBITDA in total and for each segment, each a non-GAAP financial measure, within this Quarterly Report on Form 10-Q. We have provided a reconciliation below of Adjusted EBITDA in total to net income and Adjusted EBITDA by segment to income (loss) before income taxes for each segment, the most directly comparable U.S. generally accepted accounting principles (“GAAP”) financial measures.

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We have included Adjusted EBITDA in total and for each segment in this Quarterly Report on Form 10-Q as they are key metrics used by our management and board of directors to measure operating performance and trends and to prepare and approve our annual budget. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis.

Our use of Adjusted EBITDA in total and for each segment has limitations as an analytical tool, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

•Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

•Adjusted EBITDA does not consider the potentially dilutive impact of share-based compensation;

•Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditures or contractual commitments;

•Adjusted EBITDA does not reflect restructuring costs;

•Adjusted EBITDA does not reflect acquisition-related costs;

•Adjusted EBITDA does not reflect the loss on extinguishment of debt;

•Adjusted EBITDA does not reflect interest expense or other income;

•Adjusted EBITDA does not reflect income taxes; and

•Other companies, including companies in our own industry, may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, you should consider Adjusted EBITDA in total and for each segment alongside other financial performance measures, including various cash flow metrics, net income, income (loss) before income taxes for each segment, and our other GAAP results.

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The following tables present a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure, which is net income on a consolidated basis and income (loss) before income taxes for each segment, for each of the periods presented (in millions, unaudited):

	Three Months Ended March 31, 2022
	Homes		IMT		Mortgages		Corporate Items (2)		Consolidated
Reconciliation of Adjusted EBITDA to Net Income and Income (Loss) Before Income Taxes:
Net income (1)	N/A		N/A		N/A		N/A		$	16
Income taxes	N/A		N/A		N/A		N/A		(9)
Income (loss) before income taxes	$	(68)	$	108	$	(27)	$	(6)	$	7
Other income	(6)		—		(1)		(1)		(8)
Depreciation and amortization	5		35		3		—		43
Share-based compensation	12		60		10		—		82
Restructuring costs	30		6		2		—		38
Loss on extinguishment of debt	14		—		—		—		14
Interest expense	36		—		1		7		44
Adjusted EBITDA	$	23	$	209	$	(12)	$	—	$	220

	Three Months Ended March 31, 2021
	Homes		IMT		Mortgages		Corporate Items (2)		Consolidated
Reconciliation of Adjusted EBITDA to Net Income and Income (Loss) Before Income Taxes:
Net income (1)	N/A		N/A		N/A		N/A		$	52
Income taxes	N/A		N/A		N/A		N/A		(3)
Income (loss) before income taxes	$	(58)	$	143	$	(2)	$	(34)	$	49
Other income	—		—		(1)		(1)		(2)
Depreciation and amortization	5		23		1		—		29
Share-based compensation	16		42		6		—		64
Acquisition-related costs	—		1		—		—		1
Loss on extinguishment of debt	—		—		—		1		1
Interest expense	4		—		2		34		40
Adjusted EBITDA	$	(33)	$	209	$	6	$	—	$	182
(1) We use income (loss) before income taxes as our profitability measure in making operating decisions and assessing the performance of our segments, therefore, net income and income tax benefit are calculated and presented only on a consolidated basis within our financial statements.
(2) Certain corporate items are not directly attributable to any of our segments, including the loss on extinguishment of debt, interest income earned on our short-term investments included in other income and interest costs on our convertible senior notes included in interest expense.

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Costs and Expenses, Gross Profit and Other Items

									% of Total Revenue
	Three Months Ended March 31,				2021 to 2022				Three Months Ended March 31,
	2022		2021		$ Change		% Change		2022		2021
	(in millions, unaudited)
Cost of revenue	$	3,622	$	711	$	2,911	409	%	85	%	58	%
Gross profit	635		507		128		25		15		42
Operating expenses:
Sales and marketing	307		197		110		56		7		16
Technology and development	114		120		(6)		(5)		3		10
General and administrative	119		101		18		18		3		8
Restructuring costs	38		—		38		N/A		1		—
Acquisition-related costs	—		1		(1)		N/A		—		—
Total operating expenses	578		419		159		38		14		34
Loss on extinguishment of debt	(14)		(1)		(13)		N/A		—		—
Other income	8		2		6		300		—		—
Interest expense	(44)		(40)		(4)		(10)		(1)		(3)
Income tax benefit	9		3		6		200		—		—

Cost of Revenue

Cost of revenue consists of expenses related to operating our mobile applications and websites, including associated headcount-related expenses, such as salaries, benefits, bonuses and share-based compensation expense, as well as revenue-sharing costs related to our commercial business relationships, depreciation expense, and costs associated with hosting our mobile applications and websites. Cost of revenue also includes amortization costs related to capitalized website and development activities, amortization of software, amortization of certain intangible assets and other costs to obtain data used to populate our mobile applications and websites, and amortization of certain intangible assets recorded in connection with acquisitions, including developed technology. For our Homes segment, cost of revenue also consists of the consideration paid to acquire and make certain repairs and updates to each home, including associated overhead costs, as well as inventory valuation adjustments. For our IMT and Mortgages segments, cost of revenue also includes credit card fees and ad serving costs paid to third parties. For our Mortgages segment, cost of revenue also consists of direct costs to originate loans, including underwriting and processing costs.

Cost of revenue increased by $2.9 billion, or 409%, primarily due to an increase of $2.9 billion in cost of revenue in our Homes segment. The increase in cost of revenue in our Homes segment was driven primarily by a $2.8 billion increase in home acquisition costs due to the increase in the number of homes sold from 1,965 during the three months ended March 31, 2021 to 8,981 during the three months ended March 31, 2022. We expect Homes segment cost of revenue to decrease in subsequent quarters as we complete our wind down of Zillow Offers.

Gross Profit

Gross profit is calculated as revenue less cost of revenue. Gross margin is gross profit expressed as a percentage of revenue. Our gross profit has and will continue to be affected by a number of factors, including the mix of revenue from our relatively higher gross margin segments, IMT and Mortgages, and our relatively lower gross margin Homes segment.

Gross profit increased by $128 million, or 25%, primarily due to an increase in gross profit of $125 million in our Homes segment and an increase of $26 million in our IMT segment, partially offset by a decrease in gross profit of $23 million in our Mortgages segment. Total gross margin decreased from 42% to 15%.

•The increase in Homes segment gross profit was primarily driven by an increase in revenue, discussed above. Gross margin decreased from 8% for the three months ended March 31, 2021 to 5% for the three months ended March 31, 2022, as costs to acquire homes outpaced revenue generated on home sales.

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•The increase in IMT segment gross profit was primarily driven by an increase in revenue, discussed above. Gross margin decreased from 89% for the three months ended March 31, 2021 to 87% for the three months ended March 31, 2022.

•The decrease in Mortgages segment gross profit was driven by a decrease in gross margin from 72% to 57%, primarily associated with decreased revenue, discussed above.

Sales and Marketing

Sales and marketing expenses consist of advertising costs and other sales expenses related to promotional and marketing activities, headcount-related expenses, including salaries, commissions, benefits, bonuses and share-based compensation expense for sales, sales support, customer support, including the customer connections team, marketing and public relations employees, depreciation expense and amortization of certain intangible assets recorded in connection with acquisitions, including trade names and trademarks and customer relationships. For our Homes segment, sales and marketing expenses also consist of selling costs, such as real estate agent commissions, escrow and title fees, and staging costs, as well as holding costs incurred during the period that homes are listed for sale, including utilities, taxes and maintenance. For our Mortgages segment, sales and marketing expenses include headcount-related expenses for loan officers and specialists supporting Zillow Home Loans.

Sales and marketing expenses increased $110 million, or 56%, due to increases of $87 million in our Homes segment and $25 million in our IMT segment, partially offset by a $2 million decrease in our Mortgages segment.

•The increase in sales and marketing expenses in the Homes segment was primarily attributable to an $86 million increase in home holding and selling costs driven by the increase in the number of homes sold during the three months ended March 31, 2022 compared to the three months ended March 31, 2021. Sales and marketing expenses in our Homes segment included $8 million and $4 million in holding costs for the three months ended March 31, 2022 and 2021, respectively. We expect sales and marketing expenses within the Homes segment to decrease in subsequent quarters due to the wind down of Zillow Offers operations.

•The increase in sales and marketing expenses in the IMT segment was primarily attributable to a $12 million increase in headcount-related expenses, including share-based compensation expense, and a $10 million increase in marketing and advertising costs.

Technology and Development

Technology and development expenses consist of headcount-related expenses, including salaries, benefits, bonuses and share-based compensation expense for individuals engaged in the design, development and testing of our products, mobile applications and websites and the tools and applications that support our products. Technology and development expenses also include equipment and maintenance costs and depreciation expense.

Technology and development expenses decreased $6 million, or 5%, primarily due to a decrease of $21 million in our Homes segment, partially offset by increases of $13 million in our IMT segment and $2 million in our Mortgages segment.

•The decrease in technology and development expenses for the Homes segment was primarily attributable to a $20 million decrease in headcount-related expenses, including share-based compensation expense. We expect technology and development expenses within the Homes segment to decrease in subsequent quarters due to the wind down of Zillow Offers operations.

•The increase in technology and development expenses for the IMT segment was primarily attributable to an $8 million increase in headcount-related expenses, including share-based compensation expense, and a $4 million increase in professional services. We expect technology and development expenses to increase in absolute dollars in future quarters for our IMT segment due to increased headcount-related spend as we continue to invest in the development of technology to help high-intent movers find and win their homes.

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General and Administrative

General and administrative expenses consist of headcount-related expenses, including salaries, benefits, bonuses and share-based compensation expense for executive, finance, accounting, legal, human resources, recruiting, corporate information technology costs and other administrative support. General and administrative expenses also include legal settlement costs and estimated legal liabilities, legal, accounting and other third-party professional service fees, rent expense, depreciation expense and bad debt expense.

General and administrative expenses increased $18 million, or 18%, due to increases of $18 million in our IMT segment and $1 million in our Mortgages segment, partially offset by a decrease of $1 million in our Homes segment. The increase in general and administrative expenses for our IMT segment was primarily attributable to a $14 million increase in headcount-related expenses, including share-based compensation expense, and an increase of $5 million in professional services. We expect general and administrative expenses within the IMT segment to increase in absolute dollars in future quarters as we continue to invest to grow our business. We expect general and administrative expenses within the Homes segment to decrease in absolute dollars in future periods due to the wind down of Zillow Offers operations.

Restructuring Costs

Restructuring costs for the three months ended March 31, 2022 primarily relate to our wind down of Zillow Offers operations and include employee termination costs, contract termination costs and other exit and disposal activities. Restructuring costs of $38 million for the three months ended March 31, 2022 include $33 million for employee termination costs, $4 million of contract termination costs, and $1 million related to other exit and disposal activities. For additional information regarding the restructuring, see Note 18 of our Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q.

Loss on Extinguishment of Debt

We recorded a $14 million loss on extinguishment of debt during the three months ended March 31, 2022 due to the repayment of outstanding borrowings associated with the Zillow Offers credit facilities and the partial repayment of the term loans supporting our securitization transactions. The loss on extinguishment includes prepayment penalties incurred related to these repayments. We recorded a $1 million loss on extinguishment of debt during the three months ended March 31, 2021 associated with conversions of the convertible senior notes maturing in 2023, 2024 and 2026. For additional information on the loss on extinguishment, see Note 11 of our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q.

Other Income

Other income consists primarily of interest income earned on our cash, cash equivalents and investments.

Other income increased $6 million, or 300%, primarily due to an increase in other income in the Homes segment driven by the accretion of interest income associated with the beneficial interests in our securitization transactions we entered into in the second half of 2021. We expect Homes segment interest income to decrease beginning with the three months ending September 30, 2022 due to the expected pay-down of the securitization transactions in connection with the wind down of Zillow Offers operations. While our investment mix continues to be low-risk, we expect other income related to our investment portfolio returns to grow modestly in future quarters driven by our expectation of continued rising interest rates.

Interest Expense

Our corporate interest expense consists of interest on our convertible senior notes and also includes deferred issuance costs for the convertible senior notes. As discussed in Note 2 of our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q, we adopted guidance which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity, effective January 1, 2022. Upon adoption, we de-recognized the remaining debt discounts on the convertible senior notes and no longer recognize amortization of debt discounts to interest expense. Refer to Note 11 of our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for stated interest rates and interest payment dates for each of our convertible senior notes.

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For our Homes segment, interest expense includes interest on borrowings, funding fees and other fees, including the amortization of deferred issuance costs, on the credit facilities related to Zillow Offers. Borrowings on these credit facilities bore interest at the one-month London Inter-Bank Offered Rate (“LIBOR”) plus an applicable margin, and in certain cases were subject to a LIBOR floor, as defined in the credit agreements. During the three months ended March 31, 2022, certain wholly owned subsidiaries of Zillow Group repaid all amounts drawn on the Zillow Offers credit facilities. Interest expense also includes interest on the term loans and variable funding lines associated with our 2021-1 and 2021-2 securitization transactions, including the amortization of the debt discount for the term loans and the amortization of deferred issuance costs for the term loans and variable funding lines. The term loans bear interest at a fixed rate and the variable funding lines bore interest at LIBOR plus an applicable margin. During the three months ended March 31, 2022, we repaid all amounts drawn on the variable funding lines. Refer to Note 11 of our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for additional information on Homes segment financing.

For our Mortgages segment, interest expense includes interest on the warehouse line of credit and interest on the master repurchase agreements related to our Zillow Home Loans business. Beginning March 18, 2022, borrowings on the Credit Suisse repurchase agreement bear interest at Adjusted Daily Simple Secured Overnight Financing Rate (“Adjusted Daily Simple SOFR”) plus an applicable margin and includes an Adjusted Daily Simple SOFR floor, as defined in the governing agreements. Borrowings on the Citibank, N.A. repurchase agreement, the Credit Suisse repurchase agreement prior to March 18, 2022, and the Comerica Bank warehouse line of credit bear interest at one-month LIBOR plus an applicable margin, and in certain cases include a LIBOR floor, as defined in the agreements.

Interest expense increased $4 million, or 10%, primarily due to a $32 million increase in interest expense related to our Homes segment and partially offset by a $27 million decrease in corporate interest expense not attributable to any of our segments.

The increase in Homes segment interest expense was driven by the accelerated recognition of debt discount and issuance costs and prepayment fees, as applicable, due to the repayment of our credit facilities and variable funding lines and the partial repayment of the term loans associated with our securitization transactions. The increase in interest expense is also due to the increased number of homes financed on our credit facilities and through our securitization transactions, as described above. We expect interest expense for the Homes segment to decrease during the three months ending June 30, 2022 and thereafter, as we have ceased home buying activities and expect to repay our outstanding securitization term loans during the second quarter of 2022.

The decrease in corporate interest expense not attributable to any of our segments was primarily due to the adoption of guidance which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, which, as discussed above, eliminated the debt discounts on the convertible senior notes that were previously amortized to interest expense prior to adoption. Additionally, the settlement of conversions and redemptions of convertible senior notes maturing in 2023, 2024 and 2026 during the year ended December 31, 2021 decreased the outstanding principal balances of our convertible senior notes upon which interest was incurred.

Income Taxes

We are subject to income taxes in the United States (federal and state), Canada and Serbia. As of March 31, 2022 and December 31, 2021, we have provided a valuation allowance against our net deferred tax assets that we believe, based on the weight of available evidence, are not more likely than not to be realized. There is a reasonable possibility that within the next several quarters, sufficient positive evidence will become available to demonstrate that a significant portion of the valuation allowance against our U.S. net deferred tax assets will no longer be required. We have accumulated federal tax losses of approximately $2.1 billion as of December 31, 2021, which are available to reduce future taxable income. We have accumulated state tax losses of approximately $73 million (tax effected) as of December 31, 2021.

We recorded an income tax benefit of $9 million for the three months ended March 31, 2022 and an income tax benefit of $3 million for the three months ended March 31, 2021, primarily related to state income taxes.

Liquidity and Capital Resources

Our primary sources of liquidity and capital resources are cash flows from operations, debt financing and equity offerings. Our cash requirements consist principally of working capital, general corporate needs, and mortgage loan originations. We previously used capital resources for the purchase of homes through Zillow Offers, all of which home purchases closed by January 31, 2022. We generally reinvest available cash flows from operations into our business and to service our debt obligations.

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Sources of Liquidity

As of March 31, 2022 and December 31, 2021, we had cash and cash equivalents, investments and restricted cash of $3.8 billion and $3.4 billion, respectively. Cash and cash equivalents balances consist of operating cash on deposit with financial institutions, money market funds and treasury bills. Investments consist of fixed income securities, which include U.S. government agency securities, commercial paper, treasury bills and investment grade corporate securities and the beneficial interests in our Homes segment securitization transactions. Restricted cash consists of amounts funded to the reserve and collection accounts related to our credit facilities, home sales proceeds held in restricted accounts associated with our credit facilities and securitizations and amounts held in escrow related to funding home purchases in our mortgage origination business. Amounts on deposit with third-party financial institutions exceed the Federal Deposit Insurance Corporation and the Securities Investor Protection Corporation insurance limits, as applicable. As of March 31, 2022, Zillow Group and its subsidiaries were in compliance with all debt covenants specified in the facilities described below.

We believe that cash from operations and cash and cash equivalents and investment balances will be sufficient to meet our ongoing operating activities, working capital, capital expenditures and other capital requirements for at least the next 12 months. We believe we will meet longer-term expected future cash requirements and obligations through a combination of cash flows from operations, debt financing and equity offerings, as applicable.

The following table presents selected cash flow data for the periods presented (in millions, unaudited):

	Three Months Ended March 31,
	2022		2021
Cash Flow Data:
Net cash provided by operating activities	$	3,392	$	241
Net cash provided by (used in) investing activities	(563)		904
Net cash provided by (used in) financing activities	(2,981)		598

Cash Flows Provided By Operating Activities

Our operating cash flows result primarily from cash received from real estate professionals, rental professionals, mortgage professionals and brand advertisers, as well as cash received from customers for sales of homes through Zillow Offers and sales of mortgages originated by Zillow Home Loans. Our primary uses of cash from operating activities include payments for homes purchased through Zillow Offers, marketing and advertising activities, mortgages funded through Zillow Home Loans and employee compensation and benefits. Additionally, uses of cash from operating activities include costs associated with operating our mobile applications and websites and other general corporate expenditures.

For the three months ended March 31, 2022, net cash provided by operating activities was $3.4 billion. This was driven by net income of $16 million, adjusted by share-based compensation expense of $91 million, depreciation and amortization of $43 million, amortization of debt discount and debt issuance costs of $23 million, a loss on extinguishment of debt of $14 million, amortization of contract cost assets of $8 million, amortization of right of use assets of $6 million, and an inventory valuation adjustment of $5 million. This was partially offset by $3 million in other adjustments to reconcile net income to net cash provided by operating activities. Changes in operating assets and liabilities increased cash provided by operating activities by $3.2 billion. The changes in operating assets and liabilities are primarily related to a $3.4 billion decrease in inventory and a $56 million decrease in accounts receivable, primarily associated with Zillow Offers, as we wind down Zillow Offers operations, a $14 million decrease in mortgage loans held for sale, a $6 million increase in accounts payable driven by the timing of payments, a $5 million increase in deferred revenue and a $3 million increase in other long term liabilities. These changes were partially offset by a $247 million increase in prepaid expenses and other current assets related to the partial repayment of the term loans associated with our Zillow Offers securitization transactions, a $43 million decrease in accrued expenses and other current liabilities driven by the wind down of Zillow Offers operations, a $9 million decrease in lease liabilities, a $6 million decrease in accrued compensation and benefits, and a $4 million increase in contract cost assets.

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For the three months ended March 31, 2021, net cash provided by operating activities was $242 million. This was primarily driven by net income of $52 million, adjusted by share-based compensation of $64 million, depreciation and amortization of $29 million, amortization of debt discount and debt issuance costs of $25 million, amortization of contract cost assets of $10 million, $9 million in other adjustments to reconcile net income to net cash provided by operating activities, amortization of right of use assets of $7 million, and a loss on extinguishment of debt of $1 million. This was partially offset by a $3 million change in deferred income taxes. Changes in operating assets and liabilities increased cash provided by operating activities by $47 million. The changes in operating assets and liabilities are primarily related to a $57 million decrease in mortgage loans held for sale, a $25 million increase in accrued expenses and other liabilities driven by the timing of payments, a $19 million decrease in inventory due to the sale of homes through Zillow Offers outpacing home purchases for the three months ended March 31, 2021, a $5 million increase in deferred revenue, and a $2 million increase in accrued compensation and benefits. These changes were partially offset by a $29 million increase in prepaid expenses and other current assets due to timing of payments and an increase in our contract assets. The increase in contract assets was primarily associated with increased revenue from our Premier Agent Flex pricing model. The changes were further offset by a $13 million increase in accounts receivable due to an increase in revenue from products and services billed in arrears, a $10 million increase in contract cost assets primarily due to capitalized sales commissions, a $7 million decrease in lease liabilities and a $2 million decrease in accounts payable.

Cash Flows Provided By (Used In) Investing Activities

Our primary investing activities include the purchase and sale or maturity of investments, the purchase of property and equipment and intangible assets and cash paid in connection with acquisitions.

For the three months ended March 31, 2022, net cash used in investing activities was $563 million. This was the result of $525 million purchases of investments and $38 million of purchases of property and equipment and intangible assets.

For the three months ended March 31, 2021, net cash provided by investing activities was $904 million. This was the result of $920 million of proceeds from the maturity of investments and $16 million of purchases of property and equipment and intangible assets.

Cash Flows Provided By (Used in) Financing Activities

Net cash provided by (used in) financing activities has primarily resulted from net proceeds from the issuance of convertible notes, net proceeds from equity offerings, the exercise of employee option awards and equity awards withheld for tax liabilities, proceeds from and repayments of borrowings on our credit facilities related to Zillow Offers and proceeds from borrowings on the warehouse lines of credit and master repurchase agreements related to Zillow Home Loans.

For the three months ended March 31, 2022, net cash used in financing activities was $3.0 billion, which was primarily related to $2.2 billion of repayments on borrowings of our credit facilities related to Zillow Offers, $439 million for the partial repayment of the term loans associated with the Zillow Offers securitization transactions, $348 million of cash paid for share repurchases pursuant to our stock repurchase program and $25 million of net repayments on our warehouse line of credit and master repurchase agreements related to Zillow Home Loans. The cash outflows were partially offset by $36 million of proceeds from the exercise of option awards.

For the three months ended March 31, 2021, net cash provided by financing activities was $598 million, which was primarily related to the $545 million in proceeds from the sale of 3,163,502 shares of Class C capital stock under our equity distribution agreement, $61 million of proceeds from the exercise of option awards, and $38 million of net borrowings on our credit facilities related to Zillow Offers. These cash inflows were partially offset by $46 million of net repayments on our warehouse line of credit and master repurchase agreements related to Zillow Home Loans.

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Capital Resources

We continue to invest in the development and expansion of our operations. Ongoing investments include, but are not limited to, improvements in our technology platforms, infrastructure and continued investments in sales and marketing. To finance these investments and ongoing operations, and in the event that we require additional funding to support strategic business opportunities, we have issued convertible senior notes. As of March 31, 2022, we have outstanding a total of $1.7 billion aggregate principal of convertible senior notes. The convertible notes are senior unsecured obligations, and interest on the convertible notes is paid semi-annually. The following table summarizes our convertible senior notes as of the periods presented (in millions, except interest rates):

					March 31, 2022		December 31, 2021
Maturity Date	Aggregate Principal Amount		Stated Interest Rate		Carrying Value		Carrying Value
September 1, 2026	$	499	1.375	%	$	495	$	369
May 15, 2025	565		2.75	%	557		443
September 1, 2024	608		0.75	%	604		507
Total	$	1,672			$	1,656	$	1,319

Refer to Note 11 of our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for additional information regarding our convertible senior notes, including conversion rates, conversion and redemption dates and the related capped call transactions.

On February 17, 2021, we entered into an equity distribution agreement with certain sales agents and/or principals (the “Managers”), pursuant to which we may offer and sell from time to time, through the Managers, shares of our Class C capital stock, having an aggregate gross sales price of up to $1.0 billion, in such share amounts as we may specify by notice to the Managers, in accordance with the terms and conditions set forth in the equity distribution agreement. During the three months ended March 31, 2022, we did not sell any shares under the equity distribution agreement. During the three months ended March 31, 2021, we issued and sold 3,164 shares of our Class C capital stock under the equity distribution agreement for total proceeds of $551 million and net proceeds of $545 million, after deducting $6 million of commissions and other offering expenses incurred. For additional information regarding the equity distribution agreement, see Note 13 in our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q.

On December 2, 2021, Zillow Group’s Board of Directors authorized the repurchase of up to $750 million of its Class A common stock, Class C capital stock or a combination thereof (the “Stock Repurchase Program”). During the three months ended March 31, 2022, we repurchased 1,412 of Class A common stock and 4,446 of Class C capital stock at an average price of $58.38 and $59.66 per share, respectively, for an aggregate purchase price of $83 million and $265 million, respectively. As of March 31, 2022, $100 million remained available for future repurchases pursuant to the Stock Repurchase Program, which repurchases decrease our liquidity and capital resources, when effected. On May 4, 2022, the Board of Directors authorized the repurchase of up to $1 billion of our Class A common stock, Class C capital stock or a combination thereof. This authorization is in addition to the $750 million repurchase authorization previously announced on December 2, 2021. For additional information on our Stock Repurchase Program, see Note 13 and Note 19 in our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q.

Homes

Zillow Group’s purchase of homes through the Zillow Offers program and sale of homes has had a significant impact on our liquidity and capital resources as a cash and inventory intensive business. We have used credit facilities, and beginning in the third quarter of 2021, asset-backed securitizations, to fund a portion of the purchase price of homes and certain related costs. During the three months ended March 31, 2022, certain wholly owned subsidiaries of Zillow Group repaid all amounts drawn on the Zillow Offers credit facilities. On November 2, 2021, the Board of Directors of Zillow Group made the determination to wind down Zillow Offers operations. As a result, we expect home financing to decrease during the three months ending June 30, 2022 and thereafter as we have ceased home buying activities and expect to repay our outstanding securitization term loans during the second quarter of 2022.

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Refer to Note 11 of our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for additional information on Zillow Group’s credit facilities.

IMT

Our principal sources of liquidity for the IMT segment are cash flows from operations within the segment.

Mortgages

Zillow Home Loans continues to impact our liquidity and capital resources as a cash intensive business that funds mortgage loans originated for resale in the secondary market. We primarily use debt financing to fund mortgage loan originations. The following table summarizes our warehouse line of credit and master repurchase agreements as of the periods presented (in millions, except interest rates):

Lender	Maturity Date	Maximum Borrowing Capacity		Outstanding Borrowings at March 31, 2022		Outstanding Borrowings at December 31, 2021		Weighted Average Interest Rate
Credit Suisse AG, Cayman Islands	March 17, 2023	$	100	$	64	$	77	2.00	%
Citibank, N.A.	June 10, 2022	100		13		17		2.20	%
Comerica Bank	June 25, 2022	60		11		19		2.51	%
	Total	$	260	$	88	$	113

Refer to Note 11 of our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for additional information on Zillow Group’s warehouse line of credit and master repurchase agreements.

Contractual Obligations and Other Commitments

Convertible Senior Notes - Includes the aggregate principal amounts of the 2024 Notes, 2025 Notes and 2026 Notes due on their contractual maturity dates, as well as the associated coupon interest. As of March 31, 2022, we have an outstanding aggregate principal amount of convertible senior notes of $1.7 billion, none of which is payable within 12 months. Future interest payments associated with the convertible senior notes total $90 million, with $27 million payable within 12 months. Refer to Note 11 of our Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for maturity dates, stated interest rates and additional information on our convertible senior notes.

Homes Segment Credit Facilities - During the three months ended March 31, 2022, certain wholly owned subsidiaries of Zillow Group repaid all amounts drawn on the Zillow Offers credit facilities given the wind down of Zillow Offers operations. Given the wind down of Zillow Offers operations, we incurred prepayment penalties of $6 million associated with the pay-down of our credit facilities. No additional amounts may be drawn on these facilities.

Homes Segment Securitizations - Includes the remaining principal amounts of the 2021-1 and 2021-2 term loans due on their contractual maturity dates as well as the associated coupon interest. As of March 31, 2022, we have outstanding principal amounts of term loans of $793 million associated with our Homes segment securitizations. Contractual future interest payments associated with the 2021-1 and 2021-2 term loans, if held to maturity, total $68 million, with $30 million payable within 12 months. However, given the wind down of Zillow Offers operations, we expect to settle the remaining principal amounts associated with the securitization term loans within the next 12 months, including contractual interest due and related prepayment penalties associated with the term loans. We estimate the related prepayment penalties will be approximately $8 million, $3 million of which was paid during the three months ended March 31, 2022. Refer to Note 11 of our Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q for additional information on our securitizations.

Mortgages Segment Credit Facilities - Includes principal amounts due for amounts borrowed under the warehouse line of credit and master repurchase agreements to finance mortgages originated through Zillow Home Loans. As of March 31, 2022, we have outstanding principal amounts of $88 million. Amounts exclude an immaterial amount of estimated interest payments.

Operating Lease Obligations - Our lease portfolio primarily comprises operating leases for our office space. For additional information regarding our operating leases, see Note 12 to our Notes to Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Additionally, as of March 31, 2022,

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we had outstanding letters of credit of approximately $16 million, which secure our lease obligations in connection with certain of the operating leases of our office spaces.

Purchase Obligations - We have non-cancellable purchase obligations for content related to our mobile applications and websites and certain cloud computing costs. For additional information regarding our purchase obligations, see Note 18 to our Notes to Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Restructuring Payments - We expect to make future cash payments of approximately $50 million to $62 million, excluding prepayment penalties associated with financing facilities, related to the wind down of Zillow Offers operations. We expect these additional cash payments to be made during 2022 and to primarily relate to employee termination costs and contract termination costs. For additional information regarding our restructuring costs, see Note 18 to our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q.

Critical Accounting Policies and Estimates

Our condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures. We evaluate our estimates, judgments and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our actual results could differ from these estimates, and the COVID-19 pandemic and our decision to wind down Zillow Offers operations have introduced significant additional uncertainty with respect to estimates, judgments and assumptions, which may materially impact our estimates. For information on our critical accounting policies and estimates, see Part II Item 7 (Management’s Discussion and Analysis of Financial Condition and Results of Operations) of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. There have been no material changes to our critical accounting policies and estimates as previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risks in the ordinary course of our business. These risks primarily consist of fluctuations in interest rates.

Interest Rate Risk

Under our current investment policy, we invest our excess cash in money market funds, U.S. government agency securities and investment grade corporate securities. Our current investment policy seeks first to preserve principal, second to provide liquidity for our operating and capital needs and third to maximize yield without putting our principal at risk.

Our short-term investments are exposed to market risk due to the fluctuation of prevailing interest rates that may reduce the yield on our investments or their fair value. The fair value of our beneficial interests in securitizations are subject to changes in market value through the impact of interest rates on the effective yield of the investment. For our investment portfolio, we do not believe an immediate 10% increase in interest rates would have a material effect on the fair market value of our portfolio.

Our convertible senior notes and term loans associated with our Homes segment securitizations bear interest at fixed rates. Thus, we have no related direct financial statement risk associated with changes in interest rates. However, the fair values of the convertible senior notes change primarily when the market price of our stock fluctuates or interest rates change. The following table summarizes our outstanding convertible senior notes as of March 31, 2022 (in millions, except interest rates):

Maturity Date	Aggregate Principal Amount		Stated Interest Rate
September 1, 2026	$	499	1.375	%
May 15, 2025	565		2.75	%
September 1, 2024	608		0.75	%
	$	1,672

During the three months ended March 31, 2022, certain wholly owned subsidiaries of Zillow Group repaid all amounts drawn on the Zillow Offers credit facilities. No additional amounts may be drawn on these facilities. For additional details related to our credit facilities, see Note 11 to our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q.

We are also subject to market risk which may impact our mortgage loan origination volume and associated revenue and the net interest margin derived from borrowings under our warehouse line of credit and master repurchase agreements that provide capital for Zillow Home Loans. Market risk occurs in periods where changes in short-term interest rates result in mortgage loans being originated with terms that provide a smaller interest rate spread above the financing terms of our warehouse line of credit and master repurchase agreements, which can negatively impact our net income. This risk is primarily mitigated through expedited sale of our loans. As of March 31, 2022 and December 31, 2021, we had outstanding $88 million and $112 million, respectively, of borrowings on our warehouse line of credit and master repurchase agreements which bear interest either at a floating rate based on LIBOR plus an applicable margin, and in certain cases include a LIBOR floor or at Adjusted Daily Simple Secured Overnight Financing Rate (“Adjusted Daily Simple SOFR”) plus an applicable margin, and in certain cases include an Adjusted Daily Simple SOFR floor. We manage the interest rate risk associated with our mortgage loan origination services through the use of forward sales of mortgage-backed securities. Assuming no change in the outstanding borrowings on the warehouse line of credit and master repurchase agreements, we estimate that a one percentage point increase in LIBOR or Adjusted Daily Simple SOFR, as applicable, would increase our annual interest expense associated with the warehouse line of credit and master repurchase agreements by an immaterial amount as of March 31, 2022, and $1 million as of December 31, 2021.

As described above, we utilize debt facilities that bear interest at a floating rate based on LIBOR, which is expected to be phased out as a reference rate in future periods. We do not expect the eventual transition away from LIBOR to have a material impact on our financial position, results of operations or cash flows.

52

Table of Contents

Inflation Risk

We do not believe that inflation has a material effect on our business, results of operations or financial condition, particularly given we are winding down Zillow Offers operations. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases. In addition, uncertain or changing economic and market conditions, including inflation or deflation, may affect demand for our products and services and the housing markets in which we operate. Our inability or failure to quickly respond to inflation could harm our business, results of operations and financial condition.

Foreign Currency Exchange Risk

We do not believe that foreign currency exchange risk has had a material effect on our business, results of operations or financial condition. As we do not maintain a significant balance of foreign currency, we do not believe an immediate 10% increase or decrease in foreign currency exchange rates relative to the U.S. dollar would have a material effect on our business, results of operations or financial condition.

53

Table of Contents

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures (as defined under Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended). Management, under the supervision and with the participation of our Chief Executive Officer and our Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(b) as of March 31, 2022. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that these disclosure controls and procedures were effective as of March 31, 2022.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the three months ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

54

Table of Contents

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

For information regarding legal proceedings in which we are involved, see Note 16 under the subsection titled “Legal Proceedings” in our Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.

55

Table of Contents

Item 1A. Risk Factors

There have not been any material changes to the risk factors affecting our business, financial condition or future results from those set forth in Part I, Item 1A (Risk Factors) in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. However, you should carefully consider the factors discussed in our Annual Report on Form 10-K, which could materially affect our business, financial condition or future results. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

56

Table of Contents

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Unregistered Sales of Equity Securities

There were no unregistered sales of equity securities during the three months ended March 31, 2022.

Purchase of Equity Securities by the Issuer

The following table summarizes the our stock repurchases during the three months ended March 31, 2022 (in millions, except share data which are presented in thousands, and per share amounts):

Period	Total Number of Shares Purchased		Average Price Paid Per Share				Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1)
	Class A common stock	Class C capital stock	Class A common stock		Class C capital stock
January 1 - January 31, 2022	—	—	$	—	$	—	—	$	448
February 1 - February 28, 2022	1,324	4,446	58.48		59.66		5,770	105
March 1 - March 31, 2022	88	—	56.87		—		88	100
Total	1,412	4,446					5,858
(1) On December 2, 2021, the Board of Directors authorized a stock repurchase program (the “Stock Repurchase Program”) granting the authority to repurchase up to $750 million of its Class A common stock, Class C capital stock or a combination of both. On May 4, 2022, we announced that the Board of Directors authorized the repurchase of up to an additional $1 billion of its Class A common stock, Class C capital stock or a combination thereof, which is in addition to the prior $750 million authorized under the Stock Repurchase Program. The Stock Repurchase Program does not have an expiration date.

57

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Item 6. Exhibits

The exhibits listed below are filed as part of this Quarterly Report on Form 10-Q.

Exhibit Number	Description
3.1	Amended and Restated Articles of Incorporation of Zillow Group, Inc. (Filed as Exhibit 3.1 to Registrant’s Current Report on Form 8-K filed with the Securities and Exchange Commission on February 17, 2015, and incorporated herein by reference).
3.2	Amended and Restated Bylaws of Zillow Group, Inc. (Filed as Exhibit 3.1 to Zillow Group, Inc.’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 5, 2020, and incorporated herein by reference).
31.1	Certification of Chief Executive Officer pursuant to Rule 13-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Rule 13-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the inline XBRL document).
101.SCH	Inline XBRL Taxonomy Extension Schema Document.
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (embedded within the inline XBRL document).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Dated: May 5, 2022	ZILLOW GROUP, INC.
	By:	/s/ JENNIFER ROCK
	Name:	Jennifer Rock
	Title:	Chief Accounting Officer

59

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13-14(A) OF THE SECURITIES

EXCHANGE ACT OF 1934 AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Richard Barton, certify that:

1.I have reviewed this report on Form 10-Q of Zillow Group, Inc. for the fiscal quarter ended March 31, 2022;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ RICHARD BARTON
Name:	Richard Barton
Title:	Chief Executive Officer
Date:	May 5, 2022

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13-14(A) OF THE SECURITIES

EXCHANGE ACT OF 1934 AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Allen Parker, certify that:

1.I have reviewed this report on Form 10-Q of Zillow Group, Inc. for the fiscal quarter ended March 31, 2022;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:	/s/ ALLEN PARKER
Name:	Allen Parker
Title:	Chief Financial Officer
Date:	May 5, 2022

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Zillow Group, Inc. (the “Company”) for the fiscal quarter ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard Barton, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ RICHARD BARTON
Name:	Richard Barton
Title:	Chief Executive Officer
Date:	May 5, 2022

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Zillow Group, Inc. (the “Company”) for the fiscal quarter ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Allen Parker, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	/s/ ALLEN PARKER
Name:	Allen Parker
Title:	Chief Financial Officer
Date:	May 5, 2022

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	Apr. 28, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-36853
Entity Registrant Name	ZILLOW GROUP, INC.
Entity Incorporation, State or Country Code	WA
Entity Tax Identification Number	47-1645716
Entity Address, Address Line One	1301 Second Avenue
Entity Address, Address Line Two	Floor 31
Entity Address, City or Town	Seattle
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98101
City Area Code	206
Local Phone Number	470-7000
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001617640
Current Fiscal Year End Date	--12-31
Class A common stock
Entity Information [Line Items]
Title of 12(b) Security	Class A Common Stock, par value $0.0001 per share
Trading Symbol	ZG
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		60,119,308
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		6,217,447
Class C capital stock
Entity Information [Line Items]
Title of 12(b) Security	Class C Capital Stock, par value $0.0001 per share
Trading Symbol	Z
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		179,972,714

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 2,594,000	$ 2,611,000
Short-term investments	1,032,000	514,000
Accounts receivable, net of allowance for doubtful accounts of $4 at March 31, 2022 and December 31, 2021	99,000	155,000
Mortgage loans held for sale	93,000	107,000
Inventory	494,000	3,913,000
Prepaid expenses and other current assets	386,000	153,000
Restricted cash	92,000	227,000
Total current assets	4,790,000	7,680,000
Contract cost assets	31,000	35,000
Property and equipment, net	234,000	215,000
Right of use assets	140,000	130,000
Goodwill	2,374,000	2,374,000
Intangible assets, net	165,000	180,000
Other assets	86,000	81,000
Total assets	7,820,000	10,695,000
Current liabilities:
Accounts payable	24,000	17,000
Accrued expenses and other current liabilities	119,000	161,000
Accrued compensation and benefits	102,000	108,000
Borrowings under credit facilities	88,000	2,312,000
Deferred revenue	56,000	51,000
Lease liabilities, current portion	23,000	24,000
Securitization term loans	790,000	1,209,000
Total current liabilities	1,202,000	3,882,000
Lease liabilities, net of current portion	156,000	148,000
Convertible senior notes	1,656,000	1,319,000
Other long-term liabilities	4,000	5,000
Total liabilities	3,018,000	5,354,000
Commitments and contingencies (Note 16)
Shareholders’ equity:
Preferred stock, $0.0001 par value; 30,000,000 shares authorized; no shares issued and outstanding	0	0
Additional paid-in capital	6,298,000	7,001,000
Accumulated other comprehensive income (loss)	(1,000)	7,000
Accumulated deficit	(1,495,000)	(1,667,000)
Total shareholders’ equity	4,802,000	5,341,000
Total liabilities and shareholders’ equity	7,820,000	10,695,000
Class A common stock
Shareholders’ equity:
Common stock/capital stock	0	0
Class B Common Stock
Shareholders’ equity:
Common stock/capital stock	0	0
Class C capital stock
Shareholders’ equity:
Common stock/capital stock	$ 0	$ 0

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Allowance for doubtful accounts	$ 4
Preferred stock, par value (usd per share)	$ 0.0001	$ 0.0001
Preferred stock, authorized (in shares)	30,000,000	30,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Class A common stock
Common stock, par value (usd per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	1,245,000,000	1,245,000,000
Common stock, issued (in shares)	60,119,308	61,513,634
Common stock, outstanding (in shares)	60,119,308	61,513,634
Class B Common Stock
Common stock, par value (usd per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	15,000,000	15,000,000
Common stock, issued (in shares)	6,217,447	6,217,447
Common stock, outstanding (in shares)	6,217,447	6,217,447
Class C capital stock
Common stock, par value (usd per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	600,000,000	600,000,000
Common stock, issued (in shares)	179,931,577	182,898,987
Common stock, outstanding (in shares)	179,931,577	182,898,987

XML

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue:
Revenue	$ 4,257,000	$ 1,218,000
Cost of revenue (exclusive of amortization)
Cost of revenue	3,622,000	711,000
Gross profit	635,000	507,000
Operating expenses:
Sales and marketing	307,000	197,000
Technology and development	114,000	120,000
General and administrative	119,000	101,000
Restructuring costs	38,000	0
Acquisition-related costs	0	1,000
Total operating expenses	578,000	419,000
Income from operations	57,000	88,000
Loss on extinguishment of debt	(14,000)	(1,000)
Other income	8,000	2,000
Interest expense	(44,000)	(40,000)
Income before income taxes	7,000	49,000
Income tax benefit	9,000	3,000
Net income	$ 16,000	$ 52,000
Net income per share:
Basic (usd per share)	$ 0.06	$ 0.21
Diluted (usd per share)	$ 0.06	$ 0.20
Weighted-average shares outstanding:
Basic (in shares)	248,542	243,234
Diluted (in shares)	251,963	259,346
Homes
Revenue:
Revenue	$ 3,721,000	$ 704,000
Cost of revenue (exclusive of amortization)
Cost of revenue	3,537,000	645,000
IMT
Revenue:
Revenue	490,000	446,000
Cost of revenue (exclusive of amortization)
Cost of revenue	65,000	47,000
Mortgages segment
Revenue:
Revenue	46,000	68,000
Cost of revenue (exclusive of amortization)
Cost of revenue	$ 20,000	$ 19,000

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 16,000	$ 52,000
Other comprehensive loss:
Unrealized losses on investments	(8,000)	0
Total other comprehensive loss	(8,000)	0
Comprehensive income	$ 8,000	$ 52,000

XML

Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Class A Common Stock, Class B Common Stock and Class C Capital Stock	Additional Paid-In Capital	Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjustment	Accumulated Deficit	Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Dec. 31, 2020	$ 4,742,000		$ 0	$ 5,881,000		$ (1,139,000)		$ 0
Beginning Balance (in shares) at Dec. 31, 2020			240,526,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common and capital stock upon exercise of stock options	61,000			61,000
Issuance of common and capital stock upon exercise of stock options (in shares)			1,603,000
Vesting of restricted stock units (in shares)			813,000
Restricted stock units withheld for tax liability	0			0
Restricted stock units withheld for tax liability (in shares)			(1,000)
Share-based compensation expense	67,000			67,000
Issuance of Class C capital stock in connection with equity offering, net of issuance costs	545,000			545,000
Issuance of Class C capital stock in connection with equity offering, net of issuance costs (in shares)			3,164,000
Settlement of convertible senior notes	43,000			43,000
Settlement of convertible senior notes (in shares)			1,203,000
Net income	52,000					52,000
Other comprehensive loss	0
Ending Balance at Mar. 31, 2021	5,510,000		$ 0	6,597,000		(1,087,000)		0
Ending Balance (in shares) at Mar. 31, 2021			247,308,000
Beginning Balance at Dec. 31, 2021	5,341,000	$ (336,000)	$ 0	7,001,000	$ (492,000)	(1,667,000)	$ 156,000	7,000
Beginning Balance (in shares) at Dec. 31, 2021			250,630,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common and capital stock upon exercise of stock options	$ 36,000			36,000
Issuance of common and capital stock upon exercise of stock options (in shares)	807		807,000
Vesting of restricted stock units (in shares)			689,000
Share-based compensation expense	$ 101,000			101,000
Repurchases of Class A common stock and Class C capital stock	(348,000)			(348,000)
Repurchase of Class A common stock and class c capital stock			(5,858,000)
Net income	16,000					16,000
Other comprehensive loss	(8,000)							(8,000)
Ending Balance at Mar. 31, 2022	$ 4,802,000		$ 0	$ 6,298,000		$ (1,495,000)		$ (1,000)
Ending Balance (in shares) at Mar. 31, 2022			246,268,000

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Operating activities
Net income	$ 16,000	$ 52,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	43,000	29,000
Share-based compensation	91,000	64,000
Amortization of right of use assets	6,000	7,000
Amortization of contract cost assets	8,000	10,000
Amortization of debt discount and debt issuance costs	23,000	25,000
Loss on extinguishment of debt	14,000	1,000
Inventory valuation adjustment	5,000	0
Deferred income taxes	0	(3,000)
Other adjustments to reconcile net income to cash provided by operating activities	(3,000)	9,000
Changes in operating assets and liabilities:
Accounts receivable	56,000	(13,000)
Mortgage loans held for sale	14,000	57,000
Inventory	3,414,000	19,000
Prepaid expenses and other assets	(247,000)	(29,000)
Contract cost assets	(4,000)	(10,000)
Lease liabilities	(9,000)	(7,000)
Accounts payable	6,000	(2,000)
Accrued expenses and other current liabilities	(43,000)	25,000
Accrued compensation and benefits	(6,000)	2,000
Deferred revenue	5,000	5,000
Other long-term liabilities	3,000	0
Net cash provided by operating activities	3,392,000	241,000
Investing activities
Proceeds from maturities of investments	0	920,000
Purchases of investments	(525,000)	0
Purchases of property and equipment	(33,000)	(12,000)
Purchases of intangible assets	(5,000)	(4,000)
Net cash provided by (used in) investing activities	(563,000)	904,000
Financing activities
Proceeds from issuance of Class C capital stock, net of issuance costs	0	545,000
Proceeds from borrowings on credit facilities	0	126,000
Repayments of borrowings on credit facilities	(2,205,000)	(88,000)
Net repayments on warehouse line of credit and repurchase agreements	(25,000)	(46,000)
Repurchases of Class A common stock and Class C capital stock	(348,000)	0
Settlement of long term debt	(439,000)	0
Proceeds from exercise of stock options	36,000	61,000
Net cash provided by (used in) financing activities	(2,981,000)	598,000
Net increase (decrease) in cash, cash equivalents and restricted cash during period	(152,000)	1,743,000
Cash, cash equivalents and restricted cash at beginning of period	2,838,000	1,779,000	$ 1,779,000
Cash, cash equivalents and restricted cash at end of period	2,686,000	3,522,000	$ 2,838,000
Supplemental disclosures of cash flow information
Cash paid for interest	25,000	14,000
Noncash transactions:
Write-off of fully amortized intangible assets	168,000	1,000
Write-off of fully depreciated property and equipment	18,000	12,000
Recognition of operating right of use assets and lease liabilities	16,000	0
Capitalized share-based compensation	10,000	4,000
Property and equipment purchased on account	$ 1,000	$ 1,000

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Organization and Description of Business

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Organization and Description of Business

Organization and Description of Business

Zillow Group, Inc. is reimagining real estate to make it easier to unlock life’s next chapter. As the most visited real estate website in the United States, Zillow and its affiliates help high-intent movers find and win their home through digital solutions, first class partners and easier buying, selling, financing and renting experiences. We help customers find and win their home with referrals to trusted Zillow Premier Agent and Premier Broker partners and our portfolio of Zillow-branded and affiliated transaction-oriented services. Zillow Offers, our iBuying business, has purchased and sold homes directly in markets across the country. In the fourth quarter of 2021, we began to wind down Zillow Offers operations with expected completion in the second half of 2022. Zillow Home Loans, our affiliate lender, provides our customers with an easy option to get pre-approved and secure financing for their next home purchase.

Other consumer brands include Zillow Rentals, Trulia, StreetEasy, Zillow Closing Services, HotPads and Out East. In addition, Zillow Group provides a comprehensive suite of marketing software and technology solutions for the real estate industry which include Mortech, dotloop, Bridge Interactive, New Home Feed and ShowingTime.com, Inc. (“ShowingTime”).

Certain Significant Risks and Uncertainties

We operate in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, we believe that changes in any of the following areas could have a significant negative effect on us in terms of our future financial position, results of operations or cash flows: current and future health and stability of the economy, financial conditions and residential housing market and changes in general economic and financial conditions (including federal monetary policy, interest rate changes, inflation, home price appreciation and housing inventory); our investment in resources to pursue strategies and develop products and services that may not prove effective or that are not attractive for customers and real estate partners; the impact of public health crises, like the COVID-19 pandemic (including variants) on our ability to operate, demand for our products or services or general economic conditions; disruptions in operations and relationships with customers, suppliers, vendors, broker partners, contractors, employees, lenders and consumers given our decision to wind down iBuying operations; unanticipated developments that may prevent, delay or increase the costs associated with our wind down activities; addition or loss of significant customers; our ability to successfully integrate and realize the benefits of our past or future strategic acquisitions or investments; our ability to manage advertising inventory or pricing; engagement and usage of our products; competition and innovation in our markets; actual or anticipated changes in technology, products, markets or services by us or our competitors; our ability to maintain or establish relationships with listings and data providers; our ability to obtain or maintain licenses and permits to support our current and future businesses; changes in laws or government regulation affecting our business; outcomes of legal proceedings; natural disasters and catastrophic events; our ability to attract and retain qualified employees and key personnel; protection of customers’ information and other privacy concerns; protection of our brand and intellectual property; and intellectual property infringement and other claims, among other things.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying condensed consolidated financial statements include Zillow Group, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes included in Zillow Group, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was filed with the SEC on February 10, 2022. The condensed consolidated balance sheet as of December 31, 2021, included herein, was derived from the audited financial statements of Zillow Group, Inc. as of that date.

The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position as of March 31, 2022 and our results of operations, comprehensive income, shareholders’ equity and cash flows for the three months ended March 31, 2022 and 2021. The results for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022, or for any interim period, or for any other future year.

Reclassifications

Certain reclassifications have been made in the condensed consolidated statements of operations to conform data for prior periods to the current format. Beginning with the three and six month periods ended June 30, 2021, we presented a gross profit subtotal in our condensed consolidated statements of operations, which requires certain depreciation expense and amortization expense to be included within cost of revenue. We believe the presentation of gross profit is preferable as it facilitates investors’ ability to model across our segments and enhances comparability with our public company peers. To effect the presentation of gross profit, we present the amortization expense for certain intangible assets and data acquisition costs within cost of revenue and have reclassified certain amounts in prior periods in the condensed consolidated statements of operations from technology and development expenses to cost of revenue. Additionally, we reclassified the amortization expense for trade names and trademarks and customer relationship intangible assets from technology and development expenses to sales and marketing expenses. This change has no impact on income from operations or net income.

Amounts previously reported in the condensed consolidated statements of operations for the periods presented were revised herein as shown below (in millions):

	Three Months Ended March 31, 2021
	As Reported		As Revised		Effect of Change
Cost of revenue:
Homes	$	641	$	645	$	4
IMT	28		47		19
Mortgages	18		19		1
Total cost of revenue	687		711		24
Operating expenses:
Sales and marketing	193		197		4
Technology and development	149		120		(29)
General and administrative	100		101		1

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to the accounting for certain revenue offerings, the net realizable value of inventory, restructuring costs, amortization period and recoverability of contract cost assets, website and software development costs, recoverability of long-lived assets and intangible assets, share-based compensation, income taxes, business combinations and the recoverability of goodwill, among others. To the extent there are material differences between these estimates, judgments or assumptions and actual results, our financial statements will be affected. The COVID-19 pandemic and our wind down of Zillow Offers operations have introduced significant additional uncertainty with respect to estimates, judgments and assumptions, which may materially impact the estimates previously listed, among others.

Recently Adopted Accounting Standards

In August 2020, the Financial Accounting Standards Board (“FASB”) issued guidance which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, the guidance removes the liability and equity separation models for convertible instruments. Instead, entities will account for convertible debt instruments wholly as debt unless convertible instruments contain features that require bifurcation as a derivative or that result in substantial premiums accounted for as paid-in capital. The guidance also requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. The guidance is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a retrospective or modified retrospective basis. We adopted this guidance on January 1, 2022 using the modified retrospective approach whereby amounts previously reported have not been revised. Upon adoption we recognized a decrease to additional paid-in capital of $492 million, an increase to long-term debt of $336 million and a cumulative-effect adjustment to accumulated deficit of $156 million.

Recently Issued Accounting Standards Not Yet Adopted

In October 2021, the FASB issued guidance which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with guidance governing revenue from contracts with customers. We currently recognize contract assets and contract liabilities at the acquisition date based on fair value estimates, which historically has resulted in a reduction to unearned revenue on the balance sheet, and therefore, a reduction to revenue that would have otherwise been recorded as an independent entity. The guidance is effective for interim and annual periods beginning after December 15, 2022 on a prospective basis, with early adoption permitted. We expect to adopt this guidance on January 1, 2023. We are currently evaluating the potential impact of the guidance on our financial position, results of operations and cash flows.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

We apply the following methods and assumptions in estimating our fair value measurements:

Cash equivalents — The fair value measurement of money market funds is based on quoted market prices in active markets (Level 1). The fair value measurement of other cash equivalents is based on observable market-based inputs principally derived from or corroborated by observable market data (Level 2).

Short-term investments — The fair value measurement of our short-term investments is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means (Level 2).

Restricted cash — The carrying value of restricted cash approximates fair value due to the short period of time amounts are borrowed on our credit facilities, home sales proceeds are held in restricted accounts associated with our credit facilities and securitizations, and amounts are held in escrow (Level 1).

Mortgage loans held for sale — The fair value of mortgage loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics (Level 2).

Forward contracts — The fair value of mandatory loan sales commitments and derivative instruments such as forward sales of mortgage-backed securities that are utilized as economic hedging instruments is calculated by reference to quoted prices for similar assets (Level 2).

Interest rate lock commitments — The fair value of interest rate lock commitments (“IRLCs”) is calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics. Expired commitments are excluded from the fair value measurement. Since not all IRLCs will become closed loans, we adjust our fair value measurements for the estimated amount of IRLCs that will not close. This adjustment is effected through the pull-through rate, which represents the probability that an interest rate lock commitment will ultimately result in a closed loan. For IRLCs that are cancelled or expire, any recorded gain or loss is reversed at the end of the commitment period (Level 3).

The following table presents the range and weighted-average pull-through rates used in determining the fair value of IRLCs as of the dates presented:

	March 31, 2022	December 31, 2021
Range	40% - 100%	42% - 100%
Weighted-average	83%	85%

Beneficial interests in securitizations — The fair value of beneficial interests in securitizations is calculated using a discounted cash flow methodology. We rely on significant unobservable valuation inputs as the investments do not trade in active markets with readily observable prices and there is limited observable market data for reference. The primary unobservable inputs include the assumptions related to the expected timing and amount of prepayments and the discount rate of approximately 8% applied to the projected cash flows (Level 3). An increase in the amount of prepayments, in isolation, would result in an increase in the fair value measurement. An increase in the discount rate, in isolation, would result in a decrease in the fair value measurement. The beneficial interests in securitizations are recorded within other assets in our condensed consolidated balance sheets. As of March 31, 2022, we have included the impact of the expected full prepayment of both beneficial interests during the second quarter of 2022 due to the wind down of Zillow Offers operations.

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in millions):

	March 31, 2022
	Total		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	2,315	$	2,315	$	—	$	—
Treasury bills	13		—		13		—
Short-term investments:
U.S. government agency securities	797		—		797		—
Treasury bills	189		—		189		—
Corporate bonds	36		—		36
Commercial paper	10		—		10
Beneficial interests in securitizations	78		—		—		78
Mortgage origination-related:
Mortgage loans held for sale	93		—		93		—
Forward contracts - other current assets	3		—		3		—
Total	$	3,534	$	2,315	$	1,141	$	78

	December 31, 2021
	Total		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	2,132	$	2,132	$	—	$	—
Short-term investments:
U.S. government agency securities	471		—		471		—
Corporate bonds	33		—		33		—
Commercial paper	10		—		10		—
Beneficial interests in securitizations	75		—		—		75
Mortgage origination-related:
Mortgage loans held for sale	107		—		107		—
IRLCs	5		—		—		5
Forward contracts - other current assets	—		—		—		—
Forward contracts - other current liabilities	—		—		—		—
Total	$	2,833	$	2,132	$	621	$	80

The changes in our beneficial interests in securitizations were not material for the three months ended March 31, 2022. The following table presents the changes in our IRLCs for the periods presented (in millions):

	Three Months Ended March 31,
	2022		2021
Balance, beginning of the period	$	5	$	12
Issuances	6		18
Transfers	(9)		(24)
Fair value changes recognized in earnings	(2)		(1)
Balance, end of period	$	—	$	5

At March 31, 2022, the notional amounts of the hedging instruments related to our mortgage loans held for sale were $143 million and $219 million for our IRLCs and forward contracts, respectively. At December 31, 2021, the notional amounts of the hedging instruments related to our mortgage loans held for sale were $305 million and $388 million for our IRLCs and forward contracts, respectively. We do not have the right to offset our derivative positions.

See Note 11 for the carrying amount and estimated fair value of our convertible senior notes and securitization term loans.

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Cash and Cash Equivalents, Investments and Restricted Cash

3 Months Ended

Mar. 31, 2022

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents, Investments and Restricted Cash

Cash and Cash Equivalents, Investments and Restricted Cash

The following tables present the amortized cost, gross unrealized gains and losses and estimated fair market value of our cash and cash equivalents, investments, including beneficial interests in securitizations, and restricted cash as of the dates presented (in millions):

	March 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Market Value
Cash	$	266	$	—	$	—	$	266
Cash equivalents:
Money market funds	2,315		—		—		2,315
Treasury bills	13		—		—		13
Short-term investments:
U. S. government agency securities	804		—		(7)		797
Treasury bills	189		—		—		189
Corporate bonds	36		—		—		36
Commercial paper	10		—		—		10
Restricted cash	92		—		—		92
Beneficial interests in securitizations	71		9		(2)		78
Total	$	3,796	$	9	$	(9)	$	3,796

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Market Value
Cash	$	479	$	—	$	—	$	479
Cash equivalents:
Money market funds	2,132		—		—		2,132
Short-term investments:
U.S. government agency securities	473		—		(2)		471
Corporate bonds	33		—		—		33
Commercial paper	10		—		—		10
Restricted cash	227		—		—		227
Beneficial interests in securitizations	66		9		—		75
Total	$	3,420	$	9	$	(2)	$	3,427

The following table presents available-for-sale investments by contractual maturity date as of March 31, 2022 (in millions):

	Amortized Cost		Estimated Fair Market Value
Due in one year or less	$	920	$	923
Due after one year	191		187
Total	$	1,111	$	1,110

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Inventory

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Inventory

Inventory

The following table presents the components of inventory, net of applicable lower of cost or net realizable value adjustments, as of the dates presented (in millions):

	March 31, 2022		December 31, 2021
Finished goods	$	484	$	2,728
Work-in-process	10		1,185
Inventory	$	494	$	3,913

We have recorded a write-down for homes in inventory of $31 million and $211 million as of March 31, 2022 and December 31, 2021, respectively.

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Contract Balances

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Contract Balances

Contract Balances

Contract assets were $101 million and $78 million as of March 31, 2022 and December 31, 2021, respectively. Contract assets represent amounts for which we have recognized revenue for contracts that have not yet been invoiced to our customers. Contract assets are primarily related to our Premier Agent Flex, rentals pay per lease and StreetEasy Experts offerings, whereby we estimate variable consideration based on the expected number of real estate transactions to be closed for Premier Agent Flex and StreetEasy Experts, and qualified leases to be secured for rentals pay per lease. We recognize revenue when we satisfy our performance obligations under the corresponding contracts. StreetEasy Experts is our pay for performance pricing model available in the New York City market for which agents and brokers are provided with leads at no initial cost and pay a performance advertising fee only when a real estate purchase transaction is closed with one of the leads. Under the StreetEasy Experts pricing model, the transaction price represents variable consideration, as the amount to which we expect to be entitled varies based on the number of leads that convert into real estate transactions and the value of those transactions. We record a corresponding contract asset for the estimate of variable consideration for StreetEasy Experts when the right to the consideration is conditional. When the right to consideration becomes unconditional, we reclassify amounts to accounts receivable. Contract assets are recorded within prepaid expenses and other current assets in our condensed consolidated balance sheets.

For the three months ended March 31, 2022 and 2021, we recognized revenue of $45 million and $47 million, respectively, that was included in the deferred revenue balance at the beginning of the respective period.

Contract Cost AssetsAs of March 31, 2022 and December 31, 2021, we had $31 million and $35 million, respectively, of contract cost assets. For the three months ended March 31, 2022 and 2021, we did not incur any material impairment losses to our contract cost assets. We recorded amortization expense related to contract cost assets of $8 million and $10 million for the three months ended March 31, 2022 and 2021, respectively

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Contract Cost Assets

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Contract Cost Assets

Contract Balances

Contract assets were $101 million and $78 million as of March 31, 2022 and December 31, 2021, respectively. Contract assets represent amounts for which we have recognized revenue for contracts that have not yet been invoiced to our customers. Contract assets are primarily related to our Premier Agent Flex, rentals pay per lease and StreetEasy Experts offerings, whereby we estimate variable consideration based on the expected number of real estate transactions to be closed for Premier Agent Flex and StreetEasy Experts, and qualified leases to be secured for rentals pay per lease. We recognize revenue when we satisfy our performance obligations under the corresponding contracts. StreetEasy Experts is our pay for performance pricing model available in the New York City market for which agents and brokers are provided with leads at no initial cost and pay a performance advertising fee only when a real estate purchase transaction is closed with one of the leads. Under the StreetEasy Experts pricing model, the transaction price represents variable consideration, as the amount to which we expect to be entitled varies based on the number of leads that convert into real estate transactions and the value of those transactions. We record a corresponding contract asset for the estimate of variable consideration for StreetEasy Experts when the right to the consideration is conditional. When the right to consideration becomes unconditional, we reclassify amounts to accounts receivable. Contract assets are recorded within prepaid expenses and other current assets in our condensed consolidated balance sheets.

For the three months ended March 31, 2022 and 2021, we recognized revenue of $45 million and $47 million, respectively, that was included in the deferred revenue balance at the beginning of the respective period.

Contract Cost AssetsAs of March 31, 2022 and December 31, 2021, we had $31 million and $35 million, respectively, of contract cost assets. For the three months ended March 31, 2022 and 2021, we did not incur any material impairment losses to our contract cost assets. We recorded amortization expense related to contract cost assets of $8 million and $10 million for the three months ended March 31, 2022 and 2021, respectively

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Property and Equipment, net

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Property and Equipment, net

The following table presents the detail of property and equipment as of the dates presented (in millions):

	March 31, 2022		December 31, 2021
Website development costs	$	212	$	175
Leasehold improvements	95		107
Office equipment, furniture and fixtures	29		26
Computer equipment	19		19
Construction-in-progress	2		7
Property and equipment	357		334
Less: accumulated amortization and depreciation	(123)		(119)
Property and equipment, net	$	234	$	215

We recorded depreciation expense related to property and equipment (other than website development costs) of $8 million for the three months ended March 31, 2022 and 2021.

We capitalized $34 million and $12 million in website development costs for the three months ended March 31, 2022 and 2021, respectively. Amortization expense for website development costs included in cost of revenue was $13 million and $8 million for the three months ended March 31, 2022 and 2021, respectively.

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Acquisition

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisition

Acquisition

Acquisition of ShowingTime.com, Inc.

On September 30, 2021, Zillow Group acquired ShowingTime in exchange for approximately $512 million in cash, subject to certain adjustments. Our acquisition of ShowingTime has been accounted for as a business combination, and assets acquired and liabilities assumed were recorded at their preliminary estimated fair values as of September 30, 2021. Goodwill, which represents the expected synergies from combining the acquired assets and the operations of the acquirer, as well as intangible assets that do not qualify for separate recognition, is measured as of the acquisition date as the excess of consideration transferred, which is also measured at fair value, and the net of the fair values of the assets acquired and the liabilities assumed as of the acquisition date.

The total preliminary purchase price has been allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their respective fair values at the acquisition date. The total preliminary purchase price was allocated as follows (in millions):

Cash and cash equivalents	$	15
Identifiable intangible assets	111
Goodwill	389
Other acquired assets	6
Deferred tax liability	(4)
Other assumed liabilities	(5)
Total preliminary estimated purchase price	$	512

The estimated fair value of identifiable intangible assets acquired and associated useful lives consisted of the following (in millions):

	Estimated Fair Value		Estimated Weighted-Average Useful Life (in years)
Customer relationships	$	55	8
Developed technology	47		4
Trade names and trademarks	9		10
Total	$	111

We used an income approach to measure the fair value of the customer relationships based on the excess earnings method, whereby the fair value is estimated based upon the present value of cash flows that the applicable asset is expected to generate. We used an income approach to measure the fair value of the developed technology and the trade names and trademarks based on the relief-from-royalty method. These fair value measurements were based on Level 3 inputs under the fair value hierarchy.

Our estimates and assumptions related to the purchase price allocation are preliminary and subject to change during the measurement period (up to one year from the acquisition date) as we finalize the amount of goodwill and deferred taxes recorded in connection with the acquisition.

Acquisition-related costs incurred, which primarily included legal, accounting and other external costs directly related to the acquisition, are included within acquisition-related costs in our condensed consolidated statements of operations and were expensed as incurred.

Unaudited pro forma earnings information has not been presented as the effects were not material to our condensed consolidated financial statements.

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Intangible Assets, net

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, net

Intangible Assets, net

The following tables present the detail of intangible assets as of the dates presented (in millions):

	March 31, 2022
	Cost		Accumulated Amortization		Net
Customer relationships	$	55	$	(4)	$	51
Developed technology	50		(8)		42
Software	65		(29)		36
Trade names and trademarks	46		(11)		35
Purchased content	5		(4)		1
Total	$	221	$	(56)	$	165

	December 31, 2021
	Cost		Accumulated Amortization		Net
Customer relationships	$	139	$	(84)	$	55
Developed technology	133		(86)		47
Software	59		(20)		39
Trade names and trademarks	45		(9)		36
Intangibles-in-progress	2		—		2
Purchased content	4		(3)		1
Total	$	382	$	(202)	$	180

Amortization expense recorded for intangible assets for the three months ended March 31, 2022 and 2021 was $22 million and $13 million, respectively. Amortization expense for trade names and trademarks and customer relationships intangible assets is included in sales and marketing expenses. Amortization expense for all other intangible assets is included in cost of revenue. We did not record any impairment costs related to our intangible assets for the three months ended March 31, 2022 and 2021.

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Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

Debt

The following table presents the carrying values of Zillow Group’s debt as of the dates presented (in millions):

	March 31, 2022		December 31, 2021
Homes segment
Credit facilities:
Goldman Sachs Bank USA	$	—	$	548
Citibank, N.A.	—		770
Credit Suisse AG, Cayman Islands	—		835
Securitizations:
2021-1 variable funding line	—		17
2021-1 term loan	320		472
2021-2 variable funding line	—		29
2021-2 term loan	470		737
Total Homes segment debt	790		3,408
Mortgages segment
Repurchase agreements:
Credit Suisse AG, Cayman Islands	64		77
Citibank, N.A.	13		17
Warehouse line of credit:
Comerica Bank	11		19
Total Mortgages segment debt	88		113
Convertible senior notes
1.375% convertible senior notes due 2026	495		369
2.75% convertible senior notes due 2025	557		443
0.75% convertible senior notes due 2024	604		507
Total convertible senior notes	1,656		1,319
Total debt	$	2,534	$	4,840

Homes Segment

Variable Interest Entities

As of March 31, 2022 and December 31, 2021, the total assets of the special purpose entities (“SPEs”) and titling trust associated with our Zillow Offers business were $838 million and $4.2 billion, respectively, of which $494 million and $3.9 billion are inventory, respectively, $90 million and $225 million are restricted cash, respectively, $29 million and $78 million are accounts receivable, respectively, and $224 million are prepaids and other current assets as of March 31, 2022. As of March 31, 2022 and December 31, 2021, the total liabilities of the SPEs and titling trust were $810 million and $3.5 billion, respectively, of which $790 million and $3.4 billion are credit facility and securitization-related borrowings, respectively, and $18 million and $55 million are accrued expenses, respectively. For additional details related to our SPEs, see Note 13 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Credit Facilities

During the three months ended March 31, 2022, certain wholly owned subsidiaries of Zillow Group repaid all amounts drawn on the Zillow Offers credit facilities. No additional amounts may be drawn on these facilities. For additional details related to our credit facilities, see Note 13 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Securitization Transactions

During the three months ended March 31, 2022, we repaid all amounts drawn on the variable funding lines entered into in conjunction with the securitizations for our Zillow Offers business. For additional details related to our securitization variable funding lines, see Note 13 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

The term loans supporting our securitization transactions include customary representations and warranties, provisions regarding events of default and covenants. The term loans require Zillow Group and certain of its subsidiaries, as applicable, to comply with a number of customary financial and other covenants, such as maintaining certain levels of liquidity, tangible net worth and leverage ratios. As of March 31, 2022, Zillow Group was in compliance with all financial covenants and no event of default had occurred. Except for certain limited circumstances, the term loans are non-recourse to Zillow Group. For additional details related to our securitization transactions, see Note 13 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

In connection with the wind down of Zillow Offers operations, during the three months ended March 31, 2022, we repaid $159 million and $276 million of principal and $1 million and $2 million of prepayment fees associated with the 2021-1 and 2021-2 term loans, respectively, plus accrued interest. We recorded a total loss on debt extinguishment of $6 million representing the difference between the principal amount repaid, prepayment penalties incurred and the carrying amount extinguished for each of the term loans upon repayment. In addition, we remitted cash consideration of $87 million and $132 million of principal associated with the 2021-1 and 2021-2 term loans, respectively, and $1 million of prepayment fees associated with each of the term loans, plus accrued interest, which payments are classified within prepaid expenses and other current assets in our condensed consolidated balance sheet as of March 31, 2022. The fixed rate components of the 2021-1 term loan have stated interest rates of 2.3425% and 3.3524%, respectively, and principal amounts of $239 million and $51 million, respectively, as of March 31, 2022. The principal-only component of the 2021-1 term loan has a principal amount of $30 million as of March 31, 2022. The two fixed rate components of the 2021-2 term loan have stated interest rates of 2.4294% and 3.5860%, respectively, and principal amounts of $349 million and $75 million, respectively, as of March 31, 2022. The principal-only component of the 2021-2 term loan has a principal amount of $49 million as of March 31, 2022.

The following tables summarize certain additional details related to our term loans as of the dates presented or for the periods ended (in millions, except interest rates):

								March 31, 2022				December 31, 2021
Securitization	Maturity Date	Aggregate Principal Amount		Weighted Average Effective Interest Rate (1)		First Interest Payment Date	Reinvestment Period	Unamortized Debt Discount and Debt Issuance Costs		Fair Value (2)		Unamortized Debt Discount and Debt Issuance Costs		Fair Value (2)
2021-1 term loan	February 9, 2024	$	320	4.14	%	September 9, 2021	24 months	$	—	$	320	$	8	$	480
2021-2 term loan	October 9, 2024	473		11.29	%	November 9, 2021	30 months	3		473		12		747
	Total	$	793					$	3	$	793	$	20	$	1,227
(1) The weighted average effective interest rate is calculated using the outstanding principal amounts and effective interest rates for the two fixed rate components and the single principal-only component of each of the term loans. Debt discount and debt issuance costs have been allocated to the components of each term loan and will be amortized using the effective interest method with the amortization classified as a component of interest expense.
(2) The estimated fair value of each of the term loans was calculated using a discounted cash flow methodology. The fair value is classified as Level 3 due to reliance on significant unobservable valuation inputs.

	Three Months Ended March 31, 2022
Securitization	Contractual Coupon Interest		Amortization of Debt Discount		Amortization of Debt Issuance Costs		Interest Expense
2021-1 term loan	$	3	$	3	$	4	$	10
2021-2 term loan	4		5		2		11
Total	$	7	$	8	$	6	$	21

Mortgages Segment

To provide capital for Zillow Home Loans, we utilize master repurchase agreements and a warehouse line of credit which are classified as current liabilities in our condensed consolidated balance sheets. The repurchase agreements and warehouse line of credit provide short-term financing between the issuance of a mortgage loan and when Zillow Home Loans sells the loan to an investor or directly to an agency. The following table summarizes certain details related to our repurchase agreements and warehouse line of credit (in millions, except interest rates):

Lender	Maturity Date	Maximum Borrowing Capacity		Weighted-Average Interest Rate
Credit Suisse AG, Cayman Islands	March 17, 2023	$	100	2.00	%
Citibank, N.A.	June 10, 2022	100		2.20	%
Comerica Bank	June 25, 2022	60		2.51	%
	Total	$	260

On March 18, 2022, Zillow Home Loans amended its Credit Suisse AG, Cayman Islands (“Credit Suisse”) master repurchase agreement to decrease the uncommitted total maximum borrowing capacity to $100 million with a maturity date of March 17, 2023 and to update the reference rate from one-month LIBOR to Adjusted Daily Simple Secured Overnight Financing Rate (“Adjusted Daily Simple SOFR”).

In accordance with the master repurchase agreements, Credit Suisse and Citibank, N.A. (together the “Lenders”) have agreed to pay Zillow Home Loans a negotiated purchase price for eligible loans, and Zillow Home Loans has simultaneously agreed to repurchase such loans from the Lenders under a specified timeframe at an agreed upon price that includes interest. The master repurchase agreements contain margin call provisions that provide the Lenders with certain rights in the event of a decline in the market value of the assets purchased under the master repurchase agreements. As of March 31, 2022 and December 31, 2021, $82 million and $87 million, respectively, in mortgage loans held for sale were pledged as collateral under the master repurchase agreements.

The repurchase agreements and warehouse line of credit include customary representations and warranties, covenants and provisions regarding events of default. As of March 31, 2022, Zillow Home Loans was in compliance with all financial covenants and no event of default had occurred. The repurchase agreements and warehouse line of credit are recourse to Zillow Home Loans, and have no recourse to Zillow Group or any of its other subsidiaries.

For additional details related to our warehouse line of credit and repurchase agreements, see Note 13 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Convertible Senior Notes

Effective January 1, 2022, the Company adopted guidance which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. This guidance was adopted using a modified retrospective approach. Refer to Note 2 for additional information regarding the adoption of this guidance.

The following tables summarize certain details related to our outstanding convertible senior notes as of the dates presented or for the periods ended (in millions, except interest rates):

								March 31, 2022				December 31, 2021
Maturity Date	Aggregate Principal Amount		Stated Interest Rate		Effective Interest Rate		Semi-Annual Interest Payment Dates	Unamortized Debt Issuance Costs		Fair Value		Unamortized Debt Discount and Debt Issuance Costs		Fair Value
September 1, 2026	$	499	1.375	%	1.57	%	March 1; September 1	$	4	$	663	$	130	$	781
May 15, 2025	565		2.75	%	3.20	%	May 15; November 15	8		642		122		725
September 1, 2024	608		0.75	%	1.02	%	March 1; September 1	4		784		101		945
Total	$	1,672						$	16	$	2,089	$	353	$	2,451

	Three Months Ended March 31, 2022						Three Months Ended March 31, 2021
Maturity Date	Contractual Coupon Interest		Amortization of Debt Issuance Costs		Interest Expense		Contractual Coupon Interest		Amortization of Debt Discount		Amortization of Debt Issuance Costs		Interest Expense
September 1, 2026	$	2	$	—	$	2	$	2	$	5	$	—	$	7
May 15, 2025	4		—		4		4		7		—		11
September 1, 2024	1		—		1		1		8		1		10
July 1, 2023	—		—		—		1		4		1		6
Total	$	7	$	—	$	7	$	8	$	24	$	2	$	34

The convertible notes are senior unsecured obligations. The convertible senior notes maturing in 2026 (“2026 Notes”), 2025 (“2025 Notes”) and 2024 (“2024 Notes”) (together, the “Notes”) are classified as long-term debt in our condensed consolidated balance sheets based on their contractual maturity dates. Interest on the convertible notes is paid semi-annually in

arrears. The estimated fair value of the convertible senior notes was determined through consideration of quoted market prices. The fair value is classified as Level 3 due to the limited trading activity for each of the convertible senior notes.

The Notes are convertible into cash, shares of Class C capital stock or a combination thereof, at our election, and may be settled as described below. They will mature on their respective maturity date, unless earlier repurchased, redeemed or converted in accordance with their terms.

The following table summarizes the conversion and redemption options with respect to the Notes:

Maturity Date	Early Conversion Date	Conversion Rate	Conversion Price		Optional Redemption Date
September 1, 2026	March 1, 2026	22.9830	$	43.51	September 5, 2023
May 15, 2025	November 15, 2024	14.8810	67.20		May 22, 2023
September 1, 2024	March 1, 2024	22.9830	43.51		September 5, 2022

The following table summarizes certain details related to the capped call confirmations with respect to certain of the convertible senior notes:

Maturity Date	Initial Cap Price		Cap Price Premium
September 1, 2026	$	80.5750	150	%
September 1, 2024	72.5175		125	%
July 1, 2023	105.45		85	%

There were no conversions of convertible senior notes during the three months ended March 31, 2022. Each series of the Notes was convertible during the three months ended March 31, 2021, at the option of the holders. The following table summarizes the activity for our convertible senior notes for the period presented (in millions, except share data which are presented in thousands):

	Three Months Ended March 31, 2021
	2023 Notes		2024 Notes		2026 Notes		Total
Aggregate principal amount settled	$	1	$	51	$	1	$	53
Shares of Class C capital stock issued	12		1,163		28		1,203
Total fair value of consideration transferred (1)	$	2	$	154	$	4	$	160
Loss on extinguishment of debt:
Consideration allocated to the liability component (2)	$	1	$	41	$	1	$	43
Carrying value of the liability component, net of unamortized debt discount and debt issuance costs	1		40		1		42
Loss on extinguishment of debt	$	—	$	1	$	—	$	1
Consideration allocated to the equity component	$	1	$	113	$	3	$	117
(1) The total fair value of consideration transferred includes the value of shares transferred to note holders using the daily volume weighted-average price of our Class C capital stock on the conversion date and an immaterial amount of cash paid in lieu of fractional shares.
(2) Consideration allocated to the liability component is based on the fair value of the liability component immediately prior to settlement, which was calculated using a discounted cash flow analysis with a market interest rate of a similar liability that does not have an associated convertible feature.

The last reported sale price of our Class C capital stock did not exceed 130% of the conversion price of each series of the Notes for more than 20 trading days during the 30 consecutive trading days ended March 31, 2022. Accordingly, each series of the Notes is not redeemable or convertible at the option of the holders from April 1 through June 30, 2022.

For additional details related to our convertible senior notes, see Note 13 in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

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Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesWe are subject to income taxes in the United States (federal and state), Canada and Serbia. As of March 31, 2022 and December 31, 2021, we have provided a valuation allowance against our net deferred tax assets that we believe, based on the weight of available evidence, are not more likely than not to be realized. We have accumulated federal tax losses of approximately $2.1 billion as of December 31, 2021, which are available to reduce future taxable income. We have accumulated state tax losses of approximately $73 million (tax effected) as of December 31, 2021.We recorded an income tax benefit of $9 million for the three months ended March 31, 2022 and an income tax benefit of $3 million for the three months ended March 31, 2021, primarily related to state income taxes.

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Shareholders' Equity

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

Preferred Stock

Our board of directors has the authority to fix and determine and to amend the number of shares of any series of preferred stock that is wholly unissued or to be established and to fix and determine and to amend the designation, preferences, voting powers and limitations and the relative, participating, optional or other rights, of any series of shares of preferred stock that is wholly unissued or to be established, subject in each case to certain approval rights of holders of our outstanding Class B common stock. There was no preferred stock issued and outstanding as of March 31, 2022 or December 31, 2021.

Common and Capital Stock

Our Class A common stock has no preferences or privileges and is not redeemable. Holders of Class A common stock are entitled to one vote for each share.

Our Class B common stock has no preferences or privileges and is not redeemable. At any time after the date of issuance, each share of Class B common stock, at the option of the holder, may be converted into one share of Class A common stock, or automatically converted into Class A common stock upon the affirmative vote by or written consent of holders of a majority of the shares of the Class B common stock. Holders of Class B common stock are entitled to 10 votes for each share.

Our Class C capital stock has no preferences or privileges, is not redeemable and, except in limited circumstances, is non-voting.

Equity Distribution Agreement

On February 17, 2021, we entered into an equity distribution agreement with certain sales agents and/or principals (the “Managers”), pursuant to which we may offer and sell from time to time, through the Managers, shares of our Class C capital stock, having an aggregate gross sales price of up to $1.0 billion, in such share amounts as we may specify by notice to the Managers, in accordance with the terms and conditions set forth in the equity distribution agreement.

There were no shares issued under the equity distribution agreement during the three months ended March 31, 2022.

The following table summarizes the activity pursuant to the equity distribution agreement for the period presented (in millions, except share data which are presented in thousands, and per share amounts):

	Three Months Ended March 31, 2021
Shares of Class C capital stock issued	3,164
Weighted-average issuance price per share	$	174.05
Gross proceeds (1)	$	551

(1) Net proceeds were $545 million after deducting $6 million of commissions and other offering expenses incurred.

Stock Repurchase Program

On December 2, 2021, Zillow Group’s Board of Directors authorized the repurchase of up to $750 million of its Class A common stock, Class C capital stock or a combination thereof (the “Stock Repurchase Program”). Repurchases under the Stock Repurchase Program may be made in open-market transactions or privately negotiated transactions, or in such other manner as deemed appropriate by management, and may be made from time to time as determined by management depending on market conditions, share price, trading volume, cash needs and other business factors, in each case as permitted by securities laws and

other legal requirements. As of March 31, 2022, $100 million remained available for future repurchases pursuant to the Stock Repurchase Program.

The following table summarizes, on a settlement date basis, our Class A common stock and Class C capital stock repurchase activity under the Stock Repurchase Program for the period presented (in millions, except share data which are presented in thousands, and per share amounts):

	Three Months Ended March 31, 2022
	Class A common stock		Class C capital stock
Shares repurchased	1,412		4,446
Weighted-average price per share	$	58.38	$	59.66
Total purchase price	$	83	$	265

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Share-Based Awards

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Share-Based Awards

Share-Based Awards

In addition to the option awards and restricted stock units typically granted under the Zillow Group, Inc. 2020 Incentive Plan (the “2020 Plan”) which vest quarterly over four years, during the three months ended March 31, 2022, the Compensation Committee of the Board of Directors approved option and restricted stock unit awards granted under the 2020 Plan in connection with the 2021 annual review cycle that vest quarterly over one year. The exercisability terms of these equity awards are otherwise consistent with the terms of the option awards and restricted stock units typically granted under the 2020 Plan. For additional information regarding our share-based awards, see Note 16 in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Option Awards

The following table summarizes option award activity for the three months ended March 31, 2022:

	Number of Shares Subject to Existing Options (in thousands)	Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2022	25,746	$	72.86	7.48	$	354
Granted	5,519	49.75
Exercised	(807)	43.97
Forfeited or cancelled	(1,155)	92.43
Outstanding at March 31, 2022	29,303	68.53		7.74	122
Vested and exercisable at March 31, 2022	12,890	55.63		6.19	102

The fair value of option awards granted is estimated at the date of grant using the Black-Scholes-Merton option-pricing model, assuming no dividends and with the following assumptions for the periods presented:

	Three Months Ended March 31,
	2022	2021
Expected volatility	55% - 60%	52% - 55%
Expected dividend yield	—	—
Risk-free interest rate	1.94% - 2.54%	0.57% - 0.90%
Weighted-average expected life	4.50 - 6.00 years	4.50 - 5.75 years
Weighted-average fair value of options granted	$25.08	$59.74

As of March 31, 2022, there was a total of $553 million in unrecognized compensation cost related to unvested option awards.

Restricted Stock Units

The following table summarizes activity for restricted stock units for the three months ended March 31, 2022:

	Restricted Stock Units (in thousands)	Weighted- Average Grant- Date Fair Value
Unvested outstanding at January 1, 2022	6,074	$	66.51
Granted	4,839	49.71
Vested	(689)	59.68
Forfeited	(909)	63.29
Unvested outstanding at March 31, 2022	9,315	58.60

As of March 31, 2022, there was a total of $509 million in unrecognized compensation cost related to unvested restricted stock units.

Share-Based Compensation Expense

The following table presents the effects of share-based compensation expense in our condensed consolidated statements of operations during the periods presented (in millions):

	Three Months Ended March 31,
	2022		2021
Cost of revenue	$	3	$	3
Sales and marketing	12		10
Technology and development	29		26
General and administrative	38		25
Restructuring costs	9		—
Total	$	91	$	64

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Net Income Per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of shares (including Class A common stock, Class B common stock and Class C capital stock) outstanding during the period. In the calculation of basic net income per share, undistributed earnings are allocated assuming all earnings during the period were distributed.

Diluted net income per share is computed by dividing net income by the weighted-average number of shares (including Class A common stock, Class B common stock and Class C capital stock) outstanding during the period and potentially dilutive Class A common stock and Class C capital stock equivalents, except in cases where the effect of the Class A common stock or Class C capital stock equivalent would be antidilutive. Potential Class A common stock and Class C capital stock equivalents consist of Class A common stock and Class C capital stock issuable upon exercise of stock options and Class A common stock and Class C capital stock underlying unvested restricted stock units and Class C capital stock issuable upon conversion of outstanding convertible senior notes.

Class A common stock and Class C capital stock issuable upon exercise of stock options and Class A common stock and Class C capital stock underlying unvested restricted stock units are calculated using the treasury stock method.

We have applied the if-converted method for calculating any potential dilutive effect of the conversion of the outstanding convertible notes on diluted net income per share, if applicable. The following table presents the maximum number of shares and conversion price per share of Class C capital stock for each of the Notes based on the aggregate principal amount outstanding as of March 31, 2022 (in thousands, except per share amounts):

Maturity Date	Shares	Conversion Price per Share
September 1, 2026	11,464	$	43.51
May 15, 2025	8,408	67.20
September 1, 2024	13,983	43.51

For the periods presented, the following table reconciles the denominators used in the basic and diluted net income per share calculations (in thousands):

	Three Months Ended March 31,
	2022	2021
Denominator for basic calculation	248,542	243,234
Effect of dilutive securities:
Option awards	2,558	12,437
Unvested restricted stock units	863	3,675
Denominator for dilutive calculation	251,963	259,346

For the periods presented, the following Class A common stock and Class C capital stock equivalents were excluded from the calculations of diluted net income per share because their effect would have been antidilutive (in thousands):

	Three Months Ended March 31,
	2022	2021
Weighted-average Class A common stock and Class C capital stock option awards outstanding	5,120	2,546
Weighted-average Class A common stock and Class C capital stock restricted stock units outstanding	3,188	303
Class C capital stock issuable upon conversion of the convertible notes maturing in 2023, 2024, 2025 and 2026	33,855	39,834
Total Class A common stock and Class C capital stock equivalents	42,163	42,683

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Interest Rate Lock Commitments

We have entered into IRLCs with prospective borrowers under our mortgage origination business whereby we commit to lend a certain loan amount under specific terms and at a specific interest rate to the borrower. These commitments are treated as derivatives and are carried at fair value. For additional information regarding our IRLCs, see Note 3 to our condensed consolidated financial statements.

Lease Commitments

We have entered into various non-cancelable operating lease agreements for certain of our office space and equipment with original lease periods expiring between 2022 and 2032. For additional information regarding our lease agreements, see Note 12 in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Purchase Commitments

Purchase commitments primarily include various non-cancelable agreements to purchase content related to our mobile applications and websites and certain cloud computing services. For additional information regarding our purchase obligations, see Note 18 in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Escrow Balances

In conducting our title and escrow operations through Zillow Closing Services, we routinely hold customers’ assets in escrow, pending completion of real estate transactions, and are responsible for the proper disposition of these balances for our customers. Certain of these amounts are maintained in segregated bank accounts and have not been included in the accompanying condensed consolidated balance sheets. These balances amounted to $3 million and $55 million, respectively, as of March 31, 2022 and December 31, 2021.

Letters of Credit

As of March 31, 2022, we have outstanding letters of credit of approximately $16 million, which secure our lease obligations in connection with certain of our office space operating leases.

Surety Bonds

In the course of business, we are required to provide financial commitments in the form of surety bonds to third parties as a guarantee of our performance on and our compliance with certain obligations. If we were to fail to perform or comply with these obligations, any draws upon surety bonds issued on our behalf would then trigger our payment obligation to the surety bond issuer. We have outstanding surety bonds issued for our benefit of approximately $13 million and $12 million, respectively, as of March 31, 2022 and December 31, 2021.

Legal Proceedings

We are involved in a number of legal proceedings concerning matters arising in connection with the conduct of our business activities, some of which are at preliminary stages and some of which seek an indeterminate amount of damages. We regularly evaluate the status of legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or additional loss may have been incurred to determine if accruals are appropriate. We further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made if accruals are not appropriate. For certain cases described below, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in preliminary stages; (ii) specific damages have not been sought; (iii) damages sought are, in our view, unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories presented. For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material effect on our financial position, results of operations or cash flow. For the matters discussed below, we have not recorded any material accruals as of March 31, 2022 or December 31, 2021.

In August and September 2017, two purported class action lawsuits were filed against us and certain of our executive officers, alleging, among other things, violations of federal securities laws on behalf of a class of those who purchased our common stock between February 12, 2016 and August 8, 2017. One of those purported class actions, captioned Vargosko v. Zillow Group, Inc. et al, was brought in the U.S. District Court for the Central District of California. The other purported class action lawsuit, captioned Shotwell v. Zillow Group, Inc. et al, was brought in the U.S. District Court for the Western District of Washington. The complaints allege, among other things, that during the period between February 12, 2016 and August 8, 2017, we issued materially false and misleading statements regarding our business practices. The complaints seek to recover, among other things, alleged damages sustained by the purported class members as a result of the alleged misconduct. In November 2017, an amended complaint was filed against us and certain of our executive officers in the Shotwell v. Zillow Group purported class action lawsuit, extending the beginning of the class period to November 17, 2014. In January 2018, the Vargosko v. Zillow Group purported class action lawsuit was transferred to the U.S. District Court for the Western District of Washington and consolidated with the Shotwell v. Zillow Group purported class action lawsuit. In February 2018, the plaintiffs filed a consolidated amended complaint, and in April 2018, we filed our motion to dismiss the consolidated amended complaint. In October 2018, our motion to dismiss was granted without prejudice, and in November 2018, the plaintiffs filed a second consolidated amended complaint, which we moved to dismiss in December 2018. On April 19, 2019, our motion to dismiss the second consolidated amended complaint was denied. On October 11, 2019, plaintiffs filed a motion for class certification which was granted by the court on October 28, 2020. On February 17, 2021, the Ninth Circuit Court of Appeals denied our petition for review of that decision. We have denied the allegations of wrongdoing and intend to vigorously defend the claims in this lawsuit. We do not believe that there is a reasonable possibility that a material loss will be incurred related to this lawsuit.

In October and November 2017 and January and February 2018, four shareholder derivative lawsuits were filed in the U.S. District Court for the Western District of Washington and the Superior Court of the State of Washington, King County, against certain of our executive officers and directors seeking unspecified damages on behalf of the Company and certain other relief, such as reform to corporate governance practices. The plaintiffs in the derivative suits (in which the Company is a nominal defendant) allege, among other things, that the defendants breached their fiduciary duties in connection with oversight of the Company’s public statements and legal compliance, and as a result of the breach of such fiduciary duties, the Company was damaged, and defendants were unjustly enriched. Certain of the plaintiffs also allege, among other things, violations of Section 14(a) of the Securities Exchange Act of 1934 and waste of corporate assets. On February 5, 2018, the U.S. District Court for the Western District of Washington consolidated the two federal shareholder derivative lawsuits pending in that court. On February 16, 2018, the Superior Court of the State of Washington, King County, consolidated the two shareholder derivative lawsuits pending in that court. All four of the shareholder derivative lawsuits were stayed until our motion to dismiss the second consolidated amended complaint in the securities class action lawsuit discussed above was denied in April 2019. On July 8, 2019, the plaintiffs in the consolidated federal derivative lawsuit filed a consolidated shareholder derivative complaint, which we moved to dismiss on August 22, 2019. On February 28, 2020, our motion to dismiss the consolidated federal shareholder derivative complaint was denied. On February 16, 2021, the court in the consolidated state derivative matter stayed the action. On March 5, 2021, a new shareholder derivative lawsuit was filed in the U.S. District Court for the Western District of Washington against certain of our executive officers and directors seeking unspecified damages on behalf of the Company and certain other relief, such as reform to corporate governance practices, alleging, among other things, violations of federal securities laws. The U.S. District Court for the Western District of Washington formally consolidated the new lawsuit with the other consolidated federal shareholder derivative lawsuit pending in that court on June 15, 2021. The defendants intend to deny the allegations of wrongdoing and vigorously defend the claims in this consolidated lawsuit. We do not believe that there is a reasonable possibility that a material loss will be incurred related to these derivative matters.

On September 17, 2019, International Business Machines Corporation (“IBM”) filed a complaint against us in the U.S. District Court for the Central District of California, alleging, among other things, that the Company has infringed and continues to willfully infringe seven patents held by IBM and seeks unspecified damages, including a request that the amount of compensatory damages be trebled, injunctive relief and costs and reasonable attorneys’ fees. On November 8, 2019, we filed a motion to transfer venue and/or to dismiss the complaint. On December 2, 2019, IBM filed an amended complaint, and on December 16, 2019 we filed a renewed motion to transfer venue and/or to dismiss the complaint. The Company’s motion to transfer venue to the U.S. District Court for the Western District of Washington was granted on May 28, 2020. On August 12, 2020, IBM filed its answer to our counterclaims. On September 18, 2020, we filed four Inter Partes Review (“IPR”) petitions before the U.S. Patent and Trial Appeal Board (“PTAB”) seeking the Board’s review of the patentability with respect to three of the patents asserted by IBM in the lawsuit. On March 15, 2021, the PTAB instituted IPR proceedings with respect to two of the three patents for which we filed petitions. On March 22, 2021, the PTAB denied institution with respect to the last of the three patents. On January 22, 2021, the court partially stayed the action with respect to all patents for which we filed an IPR and set forth a motion schedule. On March 8, 2021, IBM filed its second amended complaint. On March 25, 2021, we filed an amended motion for judgment on the pleadings. On July 15, 2021, the court rendered an order in connection with the motion for judgment on the pleadings finding in our favor on two of the four patents on which we filed our motion. On August 31, 2021, the Court ruled that the parties will proceed with respect to the two patents for which it previously denied judgment, and vacated the stay with respect to one of the three patents for which Zillow filed an IPR, which was denied by the PTAB. On September 23, 2021, IBM filed a notice of appeal with the United States Court of Appeals for the Federal Circuit with respect to the August 31, 2021 judgment entered. Oral argument on the appeal is scheduled for June 7, 2022. On March 3, 2022, the PTAB ruled on Zillow’s two remaining IPRs finding that Zillow was able to prove certain claims unpatentable, and others it was not. We deny the allegations of any wrongdoing and intend to vigorously defend the claims in the lawsuit. There is a reasonable possibility that a loss may be incurred related to this matter; however, the possible loss or range of loss is not estimable.

On July 21, 2020, IBM filed a second action against us in the U.S. District Court for the Western District of Washington, alleging, among other things, that the Company has infringed and continues to willfully infringe five patents held by IBM and seeks unspecified damages. On September 14, 2020, we filed a motion to dismiss the complaint filed in the action, to which IBM responded by the filing of an amended complaint on November 5, 2020. On December 18, 2020, we filed a motion to dismiss IBM’s first amended complaint. On December 23, 2020, the Court issued a written order staying this case in full. On July 23, 2021, we filed an IPR with the PTAB with respect to one patent included in the second lawsuit. On October 6, 2021, the stay of this action was lifted, except for proceeds relating to the one patent for which we filed an IPR. On December 1, 2021, the Court dismissed the fourth claim asserted by IBM in its amended complaint. On December 16, 2021 Zillow filed a motion to dismiss the remaining claims alleged in IBM’s amended complaint. On March 9, 2022, the Court granted Zillow’s motion to dismiss in full, dismissing IBM’s claims related to all the patents asserted by IBM in this action, except for the one patent for which an IPR was still pending. On March 10, 2022, the PTAB rendered its decision denying Zillow’s IPR on the one remaining patent, for which this case continues to remain stayed. We deny the allegations of any wrongdoing and intend to vigorously defend the claims in the lawsuit. There is a reasonable possibility that a loss may be incurred related to this matter; however, the possible loss or range of loss is not estimable.

On November 16, 2021, November 19, 2021 and January 6, 2022, three purported class action lawsuits were filed against us and certain of our executive officers, alleging, among other things, violations of federal securities laws on behalf of a class of those who purchased our stock between August 7, 2020 and November 2, 2021. The three purported class action lawsuits, captioned Barua v. Zillow Group, Inc. et al., Silverberg v. Zillow Group, et al. and Hillier v. Zillow Group, Inc. et al. were brought in the U.S. District Court for the Western District of Washington and were consolidated on February 16, 2022. The complaints allege, among other things, that we issued materially false and misleading statements regarding our Zillow Offers business. The complaints seek to recover, among other things, alleged damages sustained by the purported class members as a result of the alleged misconduct. We intend to deny the allegations of wrongdoing and intend to vigorously defend the claims in these lawsuits. We do not believe that a loss related to these lawsuits is probable.

On March 10, 2022, a shareholder derivative suit was filed in the U.S. District Court for the Western District of Washington against us and certain of our executive officers and directors seeking unspecified damages on behalf of the Company and certain other relief, such as reform to corporate governance practices. The plaintiffs (including the Company as a nominal defendant) allege, among other things, that the defendants breached their fiduciary duties by failing to maintain an effective system of internal controls, which purportedly caused the losses the Company incurred when it decided to wind down Zillow Offers operations. Plaintiffs also allege violations of Section 14(a) of the Securities Exchange Act of 1934 and waste of corporate assets. The defendants intend to deny the allegations of wrongdoing and vigorously defend the claims in this lawsuit. We do not believe that a loss related to this lawsuit is probable.

In addition to the matters discussed above, from time to time, we are involved in litigation and claims that arise in the ordinary course of business. Although we cannot be certain of the outcome of any such litigation or claims, nor the amount of damages and exposure that we could incur, we currently believe that the final disposition of such matters will not have a material effect on our business, financial position, results of operations or cash flow. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

Indemnifications

In the ordinary course of business, we enter into contractual arrangements under which we agree to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters. For additional information regarding our indemnifications, see Note 18 in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

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Segment Information and Revenue

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information and Revenue

Segment Information and Revenue

We have three operating and reportable segments, which have been identified based on the way in which our chief operating decision-maker manages our business, makes operating decisions and evaluates operating performance. The chief executive officer acts as the chief operating decision-maker and reviews financial and operational information for the Homes, IMT and Mortgages segments.

The Homes segment includes the financial results from Zillow Group’s purchase and sale of homes directly through Zillow Offers and the financial results from title and escrow services performed by Zillow Closing Services primarily in connection with the purchase and sale of Zillow Offers homes. In November 2021, our Board of Directors made the determination to wind down Zillow Offers operations. The IMT segment includes the financial results for the Premier Agent, rentals and new construction marketplaces, dotloop and display, as well as revenue from the sale of various other marketing and business products and services to real estate professionals. In the fourth quarter of 2021, we began to include the financial results of ShowingTime in the IMT segment. The Mortgages segment primarily includes the financial results for mortgage originations and the sale of mortgages on the secondary market through Zillow Home Loans and advertising sold to mortgage lenders and other mortgage professionals.

Revenue and costs are directly attributed to our segments when possible. However, due to the integrated structure of our business, certain costs incurred by one segment may benefit the other segments. These costs primarily include headcount-related expenses, general and administrative expenses including executive, finance, accounting, legal, human resources, recruiting and facilities costs, product development and data acquisition costs, costs related to operating our mobile applications, and websites and marketing and advertising costs. These costs are allocated to each segment based on the estimated benefit each segment receives from such expenditures.

The chief executive officer reviews information about our revenue categories as well as statement of operations data inclusive of income (loss) before income taxes by segment. This information is included in the following tables for the periods presented (in millions) and prior period amounts have been recast to conform to the current format (rentals revenue is now presented as a separate revenue category and Note 2 includes additional details regarding certain reclassifications):

	Three Months Ended March 31, 2022						Three Months Ended March 31, 2021
	Homes		IMT		Mortgages		Homes		IMT		Mortgages
Revenue:
Zillow Offers	$	3,718	$	—	$	—	$	701	$	—	$	—
Premier Agent	—		363		—		—		334		—
Rentals	—		61		—		—		64		—
Other	3		66		—		3		48		—
Mortgages	—		—		46		—		—		68
Total revenue	3,721		490		46		704		446		68
Cost of revenue (1)	3,537		65		20		645		47		19
Gross profit	184		425		26		59		399		49
Operating expenses (1):
Sales and marketing	142		142		23		55		117		25
Technology and development	12		92		10		33		79		8
General and administrative	24		77		18		25		59		17
Restructuring costs	30		6		2		—		—		—
Acquisition-related costs	—		—		—		—		1		—
Total operating expenses	208		317		53		113		256		50
Income (loss) from operations	(24)		108		(27)		(54)		143		(1)
Segment other income	6		—		1		—		—		1
Segment interest expense	(36)		—		(1)		(4)		—		(2)
Loss on extinguishment of debt	(14)		—		—		—		—		—
Income (loss) before income taxes (2)	$	(68)	$	108	$	(27)	$	(58)	$	143	$	(2)

(1) The following table presents depreciation and amortization expense and share-based compensation expense for each of our segments for the periods presented (in millions):

	Three Months Ended March 31, 2022						Three Months Ended March 31, 2021
	Homes		IMT		Mortgages		Homes		IMT		Mortgages
Depreciation and amortization expense	$	5	$	35	$	3	$	5	$	23	$	1
Share-based compensation expense	$	12	$	60	$	10	$	16	$	42	$	6

(2) The following table presents the reconciliation of total segment income (loss) before income taxes to consolidated income before income taxes for the periods presented (in millions):

	Three Months Ended March 31,
	2022		2021
Total segment income before income taxes	$	13	$	83
Corporate interest expense	(7)		(34)
Corporate other income	1		1
Loss on extinguishment of debt	—		(1)
Consolidated income before income taxes	$	7	$	49

Certain corporate items are not directly attributable to any of our segments, including the loss on extinguishment of debt, interest income earned on our short-term investments included in other income and interest costs on our convertible senior notes included in interest expense.

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Restructuring and Zillow Offers Wind Down

3 Months Ended

Mar. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Zillow Offers Wind Down

Restructuring and Zillow Offers Wind Down

In November 2021, the Board of Directors of Zillow Group made the determination to wind down Zillow Offers operations. This decision was made in light of home pricing unpredictability, capacity constraints and other operational challenges faced by Zillow Offers that were exacerbated by an unprecedented housing market, a global pandemic and a difficult labor and supply chain environment, all of which led us to conclude that, despite its initial promise in earlier quarters, Zillow Offers was unlikely to be a sufficiently stable line of business to meet our goals and needs going forward. The wind down is expected to be completed in the second half of 2022 and result in approximately a 25% reduction of Zillow Group’s workforce of which approximately 21% has been completed. During the wind down period, we continue to renovate and sell properties in inventory.

Cumulative amounts recognized and charges incurred during the three months ended March 31, 2022 primarily related to the wind down of Zillow Offers operations, and we expect future charges to primarily relate to the wind down of Zillow Offers operations and to primarily be recorded within our Homes segment. We have and plan to continue to fund the cash costs through existing cash and investment balances.

The following table presents a summary of Zillow Offers wind down-related charges incurred for the periods presented and our estimate of the total costs we expect to incur over the wind down period (in millions):

		Three Months Ended March 31, 2022
	Statement of Operations Classification	Homes Segment		IMT Segment		Mortgages Segment		Total Recognized		Cumulative Amount Recognized		Total Expected
Inventory write-down	Cost of revenue	$	5	$	—	$	—	$	5	N/A		N/A
Other charges:
Employee termination costs	Restructuring costs	$	25	$	6	$	2	$	33	$	94	$95 - $106
Financing-related charges	Interest expense and Loss on debt extinguishment	30		—		—		30		36		$40
Contract termination costs	Restructuring costs	4		—		—		4		14		$16 - $19
Accelerated depreciation and amortization	Cost of revenue	6		—		—		6		11		$17
Asset write-offs	Restructuring costs	—		—		—		—		1		$1
Other	Restructuring costs	1		—		—		1		1		$1 - $2
Total other charges		66		6		2		74		157		$170 - $185
Total		$	71	$	6	$	2	$	79	$	157

The following table presents the accrual activity for exit and disposal costs for three months ended March 31, 2022, primarily related to cash severance employee termination costs and contract termination costs (in millions):

	Three Months Ended March 31, 2022
	Employee Termination Costs		Contract Termination Costs (1)		Other		Total
Balance, beginning of period	$	45	$	4	$	—	$	49
Additions charged to expense	25		14		1		40
Cash payments	(27)		(12)		—		(39)
Adjustments	(1)		(2)		—		(3)
Balance, end of period	$	42	$	4	$	1	$	47
(1) Contract termination costs for exit and disposal activities include the contractual prepayment penalties associated with our Zillow Offers financing facilities further described below under the subheading “Financing-Related Charges.”

Inventory write-downs

In determining the value of our inventory, we consider indicators that net realizable value may be lower than cost at the portfolio level, market level, and in certain circumstances by structure type (single family residence, condo, etc.) by reviewing economic analyses, recent trends in home price appreciation and changes to resale strategy. Factors we analyze include gross margin on homes closed in recent months, projected gross margin on homes under contract to sell, historical list price to resale price variances, and trends in gross margin, selling prices and average selling concessions or other costs of selling homes. We recorded a write-down to inventory totaling $5 million with a corresponding increase to cost of revenue in our condensed consolidated statement of operations for the three months ended March 31, 2022. See Note 5 for additional information on inventory.

Employee Termination Costs

At March 31, 2022, accrued employee termination costs of $41 million related to one-time termination benefits and $2 million related to other severance and employee costs, primarily pertaining to ongoing employee benefit arrangements, were recorded within accrued compensation and benefits in our condensed consolidated balance sheet.

Accelerated Depreciation and Amortization

We have adjusted the useful life of certain assets impacted by the wind down of Zillow Offers operations to end on the expected cease use date. This adjustment resulted in the accelerated recognition of depreciation and amortization primarily related to internal use software and website development costs.

Contract Termination Costs

At March 31, 2022, $4 million of contract termination costs are included in accrued expenses and other current liabilities in our condensed consolidated balance sheet. These costs relate to contract termination penalties and costs that will continue to be incurred under contracts without further economic benefit.

Financing-Related Charges

Financing-related charges incurred for the three months ended March 31, 2022 include the accelerated recognition of certain deferred debt issuance costs and debt discounts recorded to interest expense in our condensed consolidated statement of operations. Financing-related charges for the period also include expenses recorded within loss on extinguishment of debt within our condensed consolidated statement of operations primarily related to prepayment penalties incurred on the repayment of Zillow Offers financing facilities. Refer to Note 11 for further discussion of the Zillow Offers debt activity for the three months ended March 31, 2022.

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Subsequent Events

3 Months Ended

Mar. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On May 4, 2022, the Board of Directors authorized the repurchase of up to $1 billion of our Class A common stock, Class C capital stock or a combination thereof. This authorization is in addition to the $750 million repurchase authorization previously announced on December 2, 2021. The repurchases may be made in open-market transactions or privately negotiated transactions, or in such other manner as deemed appropriate by management, and may be made from time to time as determined by management depending on market conditions, share price, trading volume, cash needs and other business factors. The repurchase program does not have an expiration date.

In April 2022, in connection with the wind down of Zillow Offers operations, we repaid the remaining outstanding principal associated with the 2021-1 and 2021-2 term loans of $320 million and $473 million, respectively, plus accrued interest and prepayment penalties.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements include Zillow Group, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes included in Zillow Group, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was filed with the SEC on February 10, 2022. The condensed consolidated balance sheet as of December 31, 2021, included herein, was derived from the audited financial statements of Zillow Group, Inc. as of that date.

The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position as of March 31, 2022 and our results of operations, comprehensive income, shareholders’ equity and cash flows for the three months ended March 31, 2022 and 2021. The results for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022, or for any interim period, or for any other future year.

Reclassifications

Reclassifications

Certain reclassifications have been made in the condensed consolidated statements of operations to conform data for prior periods to the current format. Beginning with the three and six month periods ended June 30, 2021, we presented a gross profit subtotal in our condensed consolidated statements of operations, which requires certain depreciation expense and amortization expense to be included within cost of revenue. We believe the presentation of gross profit is preferable as it facilitates investors’ ability to model across our segments and enhances comparability with our public company peers. To effect the presentation of gross profit, we present the amortization expense for certain intangible assets and data acquisition costs within cost of revenue and have reclassified certain amounts in prior periods in the condensed consolidated statements of operations from technology and development expenses to cost of revenue. Additionally, we reclassified the amortization expense for trade names and trademarks and customer relationship intangible assets from technology and development expenses to sales and marketing expenses. This change has no impact on income from operations or net income.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to the accounting for certain revenue offerings, the net realizable value of inventory, restructuring costs, amortization period and recoverability of contract cost assets, website and software development costs, recoverability of long-lived assets and intangible assets, share-based compensation, income taxes, business combinations and the recoverability of goodwill, among others. To the extent there are material differences between these estimates, judgments or assumptions and actual results, our financial statements will be affected. The COVID-19 pandemic and our wind down of Zillow Offers operations have introduced significant additional uncertainty with respect to estimates, judgments and assumptions, which may materially impact the estimates previously listed, among others.

Recently Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted

Recently Adopted Accounting Standards

In August 2020, the Financial Accounting Standards Board (“FASB”) issued guidance which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, the guidance removes the liability and equity separation models for convertible instruments. Instead, entities will account for convertible debt instruments wholly as debt unless convertible instruments contain features that require bifurcation as a derivative or that result in substantial premiums accounted for as paid-in capital. The guidance also requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. The guidance is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a retrospective or modified retrospective basis. We adopted this guidance on January 1, 2022 using the modified retrospective approach whereby amounts previously reported have not been revised. Upon adoption we recognized a decrease to additional paid-in capital of $492 million, an increase to long-term debt of $336 million and a cumulative-effect adjustment to accumulated deficit of $156 million.

Recently Issued Accounting Standards Not Yet Adopted

In October 2021, the FASB issued guidance which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with guidance governing revenue from contracts with customers. We currently recognize contract assets and contract liabilities at the acquisition date based on fair value estimates, which historically has resulted in a reduction to unearned revenue on the balance sheet, and therefore, a reduction to revenue that would have otherwise been recorded as an independent entity. The guidance is effective for interim and annual periods beginning after December 15, 2022 on a prospective basis, with early adoption permitted. We expect to adopt this guidance on January 1, 2023. We are currently evaluating the potential impact of the guidance on our financial position, results of operations and cash flows.

Fair Value Measurements

We apply the following methods and assumptions in estimating our fair value measurements:

Cash equivalents — The fair value measurement of money market funds is based on quoted market prices in active markets (Level 1). The fair value measurement of other cash equivalents is based on observable market-based inputs principally derived from or corroborated by observable market data (Level 2).

Short-term investments — The fair value measurement of our short-term investments is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means (Level 2).

Restricted cash — The carrying value of restricted cash approximates fair value due to the short period of time amounts are borrowed on our credit facilities, home sales proceeds are held in restricted accounts associated with our credit facilities and securitizations, and amounts are held in escrow (Level 1).

Mortgage loans held for sale — The fair value of mortgage loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics (Level 2).

Forward contracts — The fair value of mandatory loan sales commitments and derivative instruments such as forward sales of mortgage-backed securities that are utilized as economic hedging instruments is calculated by reference to quoted prices for similar assets (Level 2).

Interest rate lock commitments — The fair value of interest rate lock commitments (“IRLCs”) is calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics. Expired commitments are excluded from the fair value measurement. Since not all IRLCs will become closed loans, we adjust our fair value measurements for the estimated amount of IRLCs that will not close. This adjustment is effected through the pull-through rate, which represents the probability that an interest rate lock commitment will ultimately result in a closed loan. For IRLCs that are cancelled or expire, any recorded gain or loss is reversed at the end of the commitment period (Level 3).

Segment Reporting

We have three operating and reportable segments, which have been identified based on the way in which our chief operating decision-maker manages our business, makes operating decisions and evaluates operating performance. The chief executive officer acts as the chief operating decision-maker and reviews financial and operational information for the Homes, IMT and Mortgages segments.

The Homes segment includes the financial results from Zillow Group’s purchase and sale of homes directly through Zillow Offers and the financial results from title and escrow services performed by Zillow Closing Services primarily in connection with the purchase and sale of Zillow Offers homes. In November 2021, our Board of Directors made the determination to wind down Zillow Offers operations. The IMT segment includes the financial results for the Premier Agent, rentals and new construction marketplaces, dotloop and display, as well as revenue from the sale of various other marketing and business products and services to real estate professionals. In the fourth quarter of 2021, we began to include the financial results of ShowingTime in the IMT segment. The Mortgages segment primarily includes the financial results for mortgage originations and the sale of mortgages on the secondary market through Zillow Home Loans and advertising sold to mortgage lenders and other mortgage professionals.

Revenue and costs are directly attributed to our segments when possible. However, due to the integrated structure of our business, certain costs incurred by one segment may benefit the other segments. These costs primarily include headcount-related expenses, general and administrative expenses including executive, finance, accounting, legal, human resources, recruiting and facilities costs, product development and data acquisition costs, costs related to operating our mobile applications, and websites and marketing and advertising costs. These costs are allocated to each segment based on the estimated benefit each segment receives from such expenditures.

The chief executive officer reviews information about our revenue categories as well as statement of operations data inclusive of income (loss) before income taxes by segment.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

Amounts previously reported in the condensed consolidated statements of operations for the periods presented were revised herein as shown below (in millions):

	Three Months Ended March 31, 2021
	As Reported		As Revised		Effect of Change
Cost of revenue:
Homes	$	641	$	645	$	4
IMT	28		47		19
Mortgages	18		19		1
Total cost of revenue	687		711		24
Operating expenses:
Sales and marketing	193		197		4
Technology and development	149		120		(29)
General and administrative	100		101		1

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurement Inputs and Valuation Techniques

The following table presents the range and weighted-average pull-through rates used in determining the fair value of IRLCs as of the dates presented:

	March 31, 2022	December 31, 2021
Range	40% - 100%	42% - 100%
Weighted-average	83%	85%

Summary of Balances of Cash Equivalents and Investments

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in millions):

	March 31, 2022
	Total		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	2,315	$	2,315	$	—	$	—
Treasury bills	13		—		13		—
Short-term investments:
U.S. government agency securities	797		—		797		—
Treasury bills	189		—		189		—
Corporate bonds	36		—		36
Commercial paper	10		—		10
Beneficial interests in securitizations	78		—		—		78
Mortgage origination-related:
Mortgage loans held for sale	93		—		93		—
Forward contracts - other current assets	3		—		3		—
Total	$	3,534	$	2,315	$	1,141	$	78

	December 31, 2021
	Total		Level 1		Level 2		Level 3
Cash equivalents:
Money market funds	$	2,132	$	2,132	$	—	$	—
Short-term investments:
U.S. government agency securities	471		—		471		—
Corporate bonds	33		—		33		—
Commercial paper	10		—		10		—
Beneficial interests in securitizations	75		—		—		75
Mortgage origination-related:
Mortgage loans held for sale	107		—		107		—
IRLCs	5		—		—		5
Forward contracts - other current assets	—		—		—		—
Forward contracts - other current liabilities	—		—		—		—
Total	$	2,833	$	2,132	$	621	$	80

Schedule of Changes in IRLCs

The following table presents the changes in our IRLCs for the periods presented (in millions):

	Three Months Ended March 31,
	2022		2021
Balance, beginning of the period	$	5	$	12
Issuances	6		18
Transfers	(9)		(24)
Fair value changes recognized in earnings	(2)		(1)
Balance, end of period	$	—	$	5

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Cash and Cash Equivalents, Investments and Restricted Cash (Tables)

3 Months Ended

Mar. 31, 2022

Cash and Cash Equivalents [Abstract]

Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Market Value of Cash and Cash Equivalents and Available-for-Sale Investments

The following tables present the amortized cost, gross unrealized gains and losses and estimated fair market value of our cash and cash equivalents, investments, including beneficial interests in securitizations, and restricted cash as of the dates presented (in millions):

	March 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Market Value
Cash	$	266	$	—	$	—	$	266
Cash equivalents:
Money market funds	2,315		—		—		2,315
Treasury bills	13		—		—		13
Short-term investments:
U. S. government agency securities	804		—		(7)		797
Treasury bills	189		—		—		189
Corporate bonds	36		—		—		36
Commercial paper	10		—		—		10
Restricted cash	92		—		—		92
Beneficial interests in securitizations	71		9		(2)		78
Total	$	3,796	$	9	$	(9)	$	3,796

	December 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Market Value
Cash	$	479	$	—	$	—	$	479
Cash equivalents:
Money market funds	2,132		—		—		2,132
Short-term investments:
U.S. government agency securities	473		—		(2)		471
Corporate bonds	33		—		—		33
Commercial paper	10		—		—		10
Restricted cash	227		—		—		227
Beneficial interests in securitizations	66		9		—		75
Total	$	3,420	$	9	$	(2)	$	3,427

Debt Securities, Available-for-sale

The following table presents available-for-sale investments by contractual maturity date as of March 31, 2022 (in millions):

	Amortized Cost		Estimated Fair Market Value
Due in one year or less	$	920	$	923
Due after one year	191		187
Total	$	1,111	$	1,110

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Inventory (Tables)

3 Months Ended

Mar. 31, 2022

Inventory Disclosure [Abstract]

Components of Net Inventory

The following table presents the components of inventory, net of applicable lower of cost or net realizable value adjustments, as of the dates presented (in millions):

	March 31, 2022		December 31, 2021
Finished goods	$	484	$	2,728
Work-in-process	10		1,185
Inventory	$	494	$	3,913

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Property and Equipment, net (Tables)

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Detail of Property and Equipment

The following table presents the detail of property and equipment as of the dates presented (in millions):

	March 31, 2022		December 31, 2021
Website development costs	$	212	$	175
Leasehold improvements	95		107
Office equipment, furniture and fixtures	29		26
Computer equipment	19		19
Construction-in-progress	2		7
Property and equipment	357		334
Less: accumulated amortization and depreciation	(123)		(119)
Property and equipment, net	$	234	$	215

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Acquisition (Tables)

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The total preliminary purchase price was allocated as follows (in millions):

Cash and cash equivalents	$	15
Identifiable intangible assets	111
Goodwill	389
Other acquired assets	6
Deferred tax liability	(4)
Other assumed liabilities	(5)
Total preliminary estimated purchase price	$	512

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The estimated fair value of identifiable intangible assets acquired and associated useful lives consisted of the following (in millions):

	Estimated Fair Value		Estimated Weighted-Average Useful Life (in years)
Customer relationships	$	55	8
Developed technology	47		4
Trade names and trademarks	9		10
Total	$	111

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Intangible Assets, net (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

The following tables present the detail of intangible assets as of the dates presented (in millions):

	March 31, 2022
	Cost		Accumulated Amortization		Net
Customer relationships	$	55	$	(4)	$	51
Developed technology	50		(8)		42
Software	65		(29)		36
Trade names and trademarks	46		(11)		35
Purchased content	5		(4)		1
Total	$	221	$	(56)	$	165

	December 31, 2021
	Cost		Accumulated Amortization		Net
Customer relationships	$	139	$	(84)	$	55
Developed technology	133		(86)		47
Software	59		(20)		39
Trade names and trademarks	45		(9)		36
Intangibles-in-progress	2		—		2
Purchased content	4		(3)		1
Total	$	382	$	(202)	$	180

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Debt (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Carrying Value of Debt

The following table presents the carrying values of Zillow Group’s debt as of the dates presented (in millions):

	March 31, 2022		December 31, 2021
Homes segment
Credit facilities:
Goldman Sachs Bank USA	$	—	$	548
Citibank, N.A.	—		770
Credit Suisse AG, Cayman Islands	—		835
Securitizations:
2021-1 variable funding line	—		17
2021-1 term loan	320		472
2021-2 variable funding line	—		29
2021-2 term loan	470		737
Total Homes segment debt	790		3,408
Mortgages segment
Repurchase agreements:
Credit Suisse AG, Cayman Islands	64		77
Citibank, N.A.	13		17
Warehouse line of credit:
Comerica Bank	11		19
Total Mortgages segment debt	88		113
Convertible senior notes
1.375% convertible senior notes due 2026	495		369
2.75% convertible senior notes due 2025	557		443
0.75% convertible senior notes due 2024	604		507
Total convertible senior notes	1,656		1,319
Total debt	$	2,534	$	4,840

Schedule of Long-term Debt Instruments

The following tables summarize certain additional details related to our term loans as of the dates presented or for the periods ended (in millions, except interest rates):

								March 31, 2022				December 31, 2021
Securitization	Maturity Date	Aggregate Principal Amount		Weighted Average Effective Interest Rate (1)		First Interest Payment Date	Reinvestment Period	Unamortized Debt Discount and Debt Issuance Costs		Fair Value (2)		Unamortized Debt Discount and Debt Issuance Costs		Fair Value (2)
2021-1 term loan	February 9, 2024	$	320	4.14	%	September 9, 2021	24 months	$	—	$	320	$	8	$	480
2021-2 term loan	October 9, 2024	473		11.29	%	November 9, 2021	30 months	3		473		12		747
	Total	$	793					$	3	$	793	$	20	$	1,227
(1) The weighted average effective interest rate is calculated using the outstanding principal amounts and effective interest rates for the two fixed rate components and the single principal-only component of each of the term loans. Debt discount and debt issuance costs have been allocated to the components of each term loan and will be amortized using the effective interest method with the amortization classified as a component of interest expense.
(2) The estimated fair value of each of the term loans was calculated using a discounted cash flow methodology. The fair value is classified as Level 3 due to reliance on significant unobservable valuation inputs.

	Three Months Ended March 31, 2022
Securitization	Contractual Coupon Interest		Amortization of Debt Discount		Amortization of Debt Issuance Costs		Interest Expense
2021-1 term loan	$	3	$	3	$	4	$	10
2021-2 term loan	4		5		2		11
Total	$	7	$	8	$	6	$	21

Schedule of Revolving Credit Facilities and Lines of Credit

The following table summarizes certain details related to our repurchase agreements and warehouse line of credit (in millions, except interest rates):

Lender	Maturity Date	Maximum Borrowing Capacity		Weighted-Average Interest Rate
Credit Suisse AG, Cayman Islands	March 17, 2023	$	100	2.00	%
Citibank, N.A.	June 10, 2022	100		2.20	%
Comerica Bank	June 25, 2022	60		2.51	%
	Total	$	260

Schedule of Convertible Senior Notes

The following tables summarize certain details related to our outstanding convertible senior notes as of the dates presented or for the periods ended (in millions, except interest rates):

								March 31, 2022				December 31, 2021
Maturity Date	Aggregate Principal Amount		Stated Interest Rate		Effective Interest Rate		Semi-Annual Interest Payment Dates	Unamortized Debt Issuance Costs		Fair Value		Unamortized Debt Discount and Debt Issuance Costs		Fair Value
September 1, 2026	$	499	1.375	%	1.57	%	March 1; September 1	$	4	$	663	$	130	$	781
May 15, 2025	565		2.75	%	3.20	%	May 15; November 15	8		642		122		725
September 1, 2024	608		0.75	%	1.02	%	March 1; September 1	4		784		101		945
Total	$	1,672						$	16	$	2,089	$	353	$	2,451

	Three Months Ended March 31, 2022						Three Months Ended March 31, 2021
Maturity Date	Contractual Coupon Interest		Amortization of Debt Issuance Costs		Interest Expense		Contractual Coupon Interest		Amortization of Debt Discount		Amortization of Debt Issuance Costs		Interest Expense
September 1, 2026	$	2	$	—	$	2	$	2	$	5	$	—	$	7
May 15, 2025	4		—		4		4		7		—		11
September 1, 2024	1		—		1		1		8		1		10
July 1, 2023	—		—		—		1		4		1		6
Total	$	7	$	—	$	7	$	8	$	24	$	2	$	34

The following table summarizes the conversion and redemption options with respect to the Notes:

Maturity Date	Early Conversion Date	Conversion Rate	Conversion Price		Optional Redemption Date
September 1, 2026	March 1, 2026	22.9830	$	43.51	September 5, 2023
May 15, 2025	November 15, 2024	14.8810	67.20		May 22, 2023
September 1, 2024	March 1, 2024	22.9830	43.51		September 5, 2022

The following table summarizes certain details related to the capped call confirmations with respect to certain of the convertible senior notes:

Maturity Date	Initial Cap Price		Cap Price Premium
September 1, 2026	$	80.5750	150	%
September 1, 2024	72.5175		125	%
July 1, 2023	105.45		85	%

The following table summarizes the activity for our convertible senior notes for the period presented (in millions, except share data which are presented in thousands):

	Three Months Ended March 31, 2021
	2023 Notes		2024 Notes		2026 Notes		Total
Aggregate principal amount settled	$	1	$	51	$	1	$	53
Shares of Class C capital stock issued	12		1,163		28		1,203
Total fair value of consideration transferred (1)	$	2	$	154	$	4	$	160
Loss on extinguishment of debt:
Consideration allocated to the liability component (2)	$	1	$	41	$	1	$	43
Carrying value of the liability component, net of unamortized debt discount and debt issuance costs	1		40		1		42
Loss on extinguishment of debt	$	—	$	1	$	—	$	1
Consideration allocated to the equity component	$	1	$	113	$	3	$	117
(1) The total fair value of consideration transferred includes the value of shares transferred to note holders using the daily volume weighted-average price of our Class C capital stock on the conversion date and an immaterial amount of cash paid in lieu of fractional shares.
(2) Consideration allocated to the liability component is based on the fair value of the liability component immediately prior to settlement, which was calculated using a discounted cash flow analysis with a market interest rate of a similar liability that does not have an associated convertible feature.

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Shareholders' Equity (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Schedule of Sale of Stock

The following table summarizes the activity pursuant to the equity distribution agreement for the period presented (in millions, except share data which are presented in thousands, and per share amounts):

	Three Months Ended March 31, 2021
Shares of Class C capital stock issued	3,164
Weighted-average issuance price per share	$	174.05
Gross proceeds (1)	$	551

(1) Net proceeds were $545 million after deducting $6 million of commissions and other offering expenses incurred.

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Share-Based Awards (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Summary of Option Award Activity

The following table summarizes option award activity for the three months ended March 31, 2022:

	Number of Shares Subject to Existing Options (in thousands)	Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2022	25,746	$	72.86	7.48	$	354
Granted	5,519	49.75
Exercised	(807)	43.97
Forfeited or cancelled	(1,155)	92.43
Outstanding at March 31, 2022	29,303	68.53		7.74	122
Vested and exercisable at March 31, 2022	12,890	55.63		6.19	102

Fair Value of Options Granted, Estimated at Date of Grant Using Black Scholes Merton Option Pricing Model

The fair value of option awards granted is estimated at the date of grant using the Black-Scholes-Merton option-pricing model, assuming no dividends and with the following assumptions for the periods presented:

	Three Months Ended March 31,
	2022	2021
Expected volatility	55% - 60%	52% - 55%
Expected dividend yield	—	—
Risk-free interest rate	1.94% - 2.54%	0.57% - 0.90%
Weighted-average expected life	4.50 - 6.00 years	4.50 - 5.75 years
Weighted-average fair value of options granted	$25.08	$59.74

Summary of Restricted Stock Units Activity

The following table summarizes activity for restricted stock units for the three months ended March 31, 2022:

	Restricted Stock Units (in thousands)	Weighted- Average Grant- Date Fair Value
Unvested outstanding at January 1, 2022	6,074	$	66.51
Granted	4,839	49.71
Vested	(689)	59.68
Forfeited	(909)	63.29
Unvested outstanding at March 31, 2022	9,315	58.60

Effects of Share Based Compensation in Consolidated Statements of Operations

The following table presents the effects of share-based compensation expense in our condensed consolidated statements of operations during the periods presented (in millions):

	Three Months Ended March 31,
	2022		2021
Cost of revenue	$	3	$	3
Sales and marketing	12		10
Technology and development	29		26
General and administrative	38		25
Restructuring costs	9		—
Total	$	91	$	64

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Net Income Per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table presents the maximum number of shares and conversion price per share of Class C capital stock for each of the Notes based on the aggregate principal amount outstanding as of March 31, 2022 (in thousands, except per share amounts):

Maturity Date	Shares	Conversion Price per Share
September 1, 2026	11,464	$	43.51
May 15, 2025	8,408	67.20
September 1, 2024	13,983	43.51

For the periods presented, the following table reconciles the denominators used in the basic and diluted net income per share calculations (in thousands):

	Three Months Ended March 31,
	2022	2021
Denominator for basic calculation	248,542	243,234
Effect of dilutive securities:
Option awards	2,558	12,437
Unvested restricted stock units	863	3,675
Denominator for dilutive calculation	251,963	259,346

For the periods presented, the following Class A common stock and Class C capital stock equivalents were excluded from the calculations of diluted net income per share because their effect would have been antidilutive (in thousands):

	Three Months Ended March 31,
	2022	2021
Weighted-average Class A common stock and Class C capital stock option awards outstanding	5,120	2,546
Weighted-average Class A common stock and Class C capital stock restricted stock units outstanding	3,188	303
Class C capital stock issuable upon conversion of the convertible notes maturing in 2023, 2024, 2025 and 2026	33,855	39,834
Total Class A common stock and Class C capital stock equivalents	42,163	42,683

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Segment Information and Revenue (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Revenue Categories

This information is included in the following tables for the periods presented (in millions) and prior period amounts have been recast to conform to the current format (rentals revenue is now presented as a separate revenue category and Note 2 includes additional details regarding certain reclassifications):

	Three Months Ended March 31, 2022						Three Months Ended March 31, 2021
	Homes		IMT		Mortgages		Homes		IMT		Mortgages
Revenue:
Zillow Offers	$	3,718	$	—	$	—	$	701	$	—	$	—
Premier Agent	—		363		—		—		334		—
Rentals	—		61		—		—		64		—
Other	3		66		—		3		48		—
Mortgages	—		—		46		—		—		68
Total revenue	3,721		490		46		704		446		68
Cost of revenue (1)	3,537		65		20		645		47		19
Gross profit	184		425		26		59		399		49
Operating expenses (1):
Sales and marketing	142		142		23		55		117		25
Technology and development	12		92		10		33		79		8
General and administrative	24		77		18		25		59		17
Restructuring costs	30		6		2		—		—		—
Acquisition-related costs	—		—		—		—		1		—
Total operating expenses	208		317		53		113		256		50
Income (loss) from operations	(24)		108		(27)		(54)		143		(1)
Segment other income	6		—		1		—		—		1
Segment interest expense	(36)		—		(1)		(4)		—		(2)
Loss on extinguishment of debt	(14)		—		—		—		—		—
Income (loss) before income taxes (2)	$	(68)	$	108	$	(27)	$	(58)	$	143	$	(2)

(1) The following table presents depreciation and amortization expense and share-based compensation expense for each of our segments for the periods presented (in millions):

	Three Months Ended March 31, 2022						Three Months Ended March 31, 2021
	Homes		IMT		Mortgages		Homes		IMT		Mortgages
Depreciation and amortization expense	$	5	$	35	$	3	$	5	$	23	$	1
Share-based compensation expense	$	12	$	60	$	10	$	16	$	42	$	6

(2) The following table presents the reconciliation of total segment income (loss) before income taxes to consolidated income before income taxes for the periods presented (in millions):

	Three Months Ended March 31,
	2022		2021
Total segment income before income taxes	$	13	$	83
Corporate interest expense	(7)		(34)
Corporate other income	1		1
Loss on extinguishment of debt	—		(1)
Consolidated income before income taxes	$	7	$	49

Reconciliation of Segment Gross Profit and Loss

The following table presents the reconciliation of total segment income (loss) before income taxes to consolidated income before income taxes for the periods presented (in millions):

	Three Months Ended March 31,
	2022		2021
Total segment income before income taxes	$	13	$	83
Corporate interest expense	(7)		(34)
Corporate other income	1		1
Loss on extinguishment of debt	—		(1)
Consolidated income before income taxes	$	7	$	49

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Restructuring and Zillow Offers Wind Down (Tables)

3 Months Ended

Mar. 31, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following table presents a summary of Zillow Offers wind down-related charges incurred for the periods presented and our estimate of the total costs we expect to incur over the wind down period (in millions):

		Three Months Ended March 31, 2022
	Statement of Operations Classification	Homes Segment		IMT Segment		Mortgages Segment		Total Recognized		Cumulative Amount Recognized		Total Expected
Inventory write-down	Cost of revenue	$	5	$	—	$	—	$	5	N/A		N/A
Other charges:
Employee termination costs	Restructuring costs	$	25	$	6	$	2	$	33	$	94	$95 - $106
Financing-related charges	Interest expense and Loss on debt extinguishment	30		—		—		30		36		$40
Contract termination costs	Restructuring costs	4		—		—		4		14		$16 - $19
Accelerated depreciation and amortization	Cost of revenue	6		—		—		6		11		$17
Asset write-offs	Restructuring costs	—		—		—		—		1		$1
Other	Restructuring costs	1		—		—		1		1		$1 - $2
Total other charges		66		6		2		74		157		$170 - $185
Total		$	71	$	6	$	2	$	79	$	157

Schedule of Restructuring Reserve by Type of Cost

The following table presents the accrual activity for exit and disposal costs for three months ended March 31, 2022, primarily related to cash severance employee termination costs and contract termination costs (in millions):

	Three Months Ended March 31, 2022
	Employee Termination Costs		Contract Termination Costs (1)		Other		Total
Balance, beginning of period	$	45	$	4	$	—	$	49
Additions charged to expense	25		14		1		40
Cash payments	(27)		(12)		—		(39)
Adjustments	(1)		(2)		—		(3)
Balance, end of period	$	42	$	4	$	1	$	47
(1) Contract termination costs for exit and disposal activities include the contractual prepayment penalties associated with our Zillow Offers financing facilities further described below under the subheading “Financing-Related Charges.”

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Summary of Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Cost of revenue	$ 3,622,000	$ 711,000
Operating expenses:
Sales and marketing	307,000	197,000
Technology and development	114,000	120,000
General and administrative	119,000	101,000
As Reported
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Cost of revenue		687,000
Operating expenses:
Sales and marketing		193,000
Technology and development		149,000
General and administrative		100,000
Effect of Change
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Cost of revenue		24,000
Operating expenses:
Sales and marketing		4,000
Technology and development		(29,000)
General and administrative		1,000
Homes
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Cost of revenue	3,537,000	645,000
Homes | As Reported
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Cost of revenue		641,000
Homes | Effect of Change
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Cost of revenue		4,000
IMT
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Cost of revenue	65,000	47,000
IMT | As Reported
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Cost of revenue		28,000
IMT | Effect of Change
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Cost of revenue		19,000
Mortgages segment
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Cost of revenue	$ 20,000	19,000
Mortgages segment | As Reported
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Cost of revenue		18,000
Mortgages segment | Effect of Change
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Cost of revenue		$ 1,000

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Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Additional paid in capital	$ (6,298,000)	$ (7,001,000)
Accumulated deficit	$ 4,802,000	5,341,000	$ 5,510,000	$ 4,742,000
Cumulative Effect, Period of Adoption, Adjustment
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Accumulated deficit		(336,000)
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 Retrospective
Schedule of Error Corrections and Prior Period Adjustment Restatement [Line Items]
Additional paid in capital		492,000
Convertible senior notes		336,000
Accumulated deficit		$ (156,000)

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Fair Value Measurements - Fair Value Measurement Inputs and Valuation Techniques (Details) - IRLCs - Not Designated as Hedging Instrument	Mar. 31, 2022	Dec. 31, 2021
Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value rates, IRLCs	0.40	0.42
Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value rates, IRLCs	1	1
Weighted-average
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair value rates, IRLCs	0.83	0.85

XML

Fair Value Measurements - Fair Value of Cash Equivalents and Investments (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	$ 1,110
Beneficial interests in securitizations	78,000	$ 75,000
Mortgage loans held for sale	93,000	107,000
Total	3,534,000	2,833,000
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beneficial interests in securitizations	0	0
Mortgage loans held for sale	0	0
Total	2,315,000	2,132,000
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beneficial interests in securitizations	0	0
Mortgage loans held for sale	93,000	107,000
Total	1,141,000	621,000
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beneficial interests in securitizations	78,000	75,000
Mortgage loans held for sale	0	0
Total	78,000	80,000
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	2,315,000	2,132,000
Money market funds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	2,315,000	2,132,000
Money market funds | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Money market funds | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	797,000	471,000
U.S. government agency securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
U.S. government agency securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	797,000	471,000
U.S. government agency securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Treasury bills
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	13,000
Short-term investments	189,000
Treasury bills | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Short-term investments	0
Treasury bills | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	13,000
Short-term investments	189,000
Treasury bills | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0
Short-term investments	0
U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	36,000	33,000
U.S. government agency securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
U.S. government agency securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	36,000	33,000
U.S. government agency securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments		0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	10,000	10,000
Commercial paper | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Commercial paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	10,000	10,000
Commercial paper | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments		0
IRLCs | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets		5,000
IRLCs | Level 1 | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets		0
IRLCs | Level 2 | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets		0
IRLCs | Level 3 | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets		5,000
Forward contracts | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	3,000	0
Derivative liability		0
Forward contracts | Level 1 | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liability		0
Forward contracts | Level 2 | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	3,000	0
Derivative liability		0
Forward contracts | Level 3 | Not Designated as Hedging Instrument
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	$ 0	0
Derivative liability		$ 0

XML

Fair Value Measurements - Schedule of Changes in IRLCs (Details) - IRLCs - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivative Asset, Rollforward [Roll Forward]
Balance, beginning of the period	$ 5	$ 12
Issuances	6	18
Transfers	(9)	(24)
Fair value changes recognized in earnings	(2)	(1)
Balance, end of period	$ 0	$ 5

XML

Fair Value Measurements - Additional Information (Detail) $ in Millions	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Measurement Input, Discount Rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beneficial interest securitization, measurement input	0.08
Mortgage Loans Held For Sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amount	$ 143	$ 305
IRLCs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amount	$ 219	$ 388

XML

Cash and Cash Equivalents, Investments and Restricted Cash - Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Market Value of Cash and Cash Equivalents and Available-for-Sale Investments (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents, at Carrying Value [Abstract]
Cash and cash equivalents	$ 2,594,000	$ 2,611,000
Short-term investments:
Amortized Cost	1,111
Estimated Fair Market Value	1,110
Restricted cash	92,000	227,000
Beneficial interest in securitization, Amortized cost	71,000	66,000
Beneficial interest in securitization, Gross Unrealized Gains	9,000	9,000
Beneficial interest in beneficial interest in securitization, Gross Unrealized Losses	(2,000)	0
Beneficial interest in securitization, estimated fair market value	78,000	75,000
Amortized Cost, Total	3,796,000	3,420,000
Gross Unrealized Gains, Total	9,000	9,000
Gross Unrealized Losses, Total	(9,000)	(2,000)
Estimated Fair Market Value, Total	3,796,000	3,427,000
U.S. government agency securities
Short-term investments:
Amortized Cost	804,000	473,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(7,000)	(2,000)
Estimated Fair Market Value	797,000	471,000
Treasury bills
Short-term investments:
Amortized Cost	189,000
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Estimated Fair Market Value	189,000
U.S. government agency securities
Short-term investments:
Amortized Cost	36,000	33,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Market Value	36,000	33,000
Commercial paper
Short-term investments:
Amortized Cost	10,000	10,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Market Value	10,000	10,000
Cash
Cash and Cash Equivalents, at Carrying Value [Abstract]
Cash and cash equivalents	266,000	479,000
Money market funds
Cash and Cash Equivalents, at Carrying Value [Abstract]
Cash and cash equivalents	2,315,000	$ 2,132,000
Treasury bills
Cash and Cash Equivalents, at Carrying Value [Abstract]
Cash and cash equivalents	$ 13,000

XML

Cash and Cash Equivalents, Investments and Restricted Cash - Available-for-sale Investments By Contractual Maturity Date (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Amortized Cost
Due in one year or less	$ 920
Due after one year	191
Amortized Cost	1,111
Estimated Fair Market Value
Due in one year or less	923
Due after one year	187
Estimated Fair Market Value	$ 1,110

XML

Inventory (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Inventory [Line Items]
Finished goods	$ 484,000		$ 2,728,000
Work-in-process	10,000		1,185,000
Inventory	494,000		3,913,000
Inventory valuation adjustment	5,000	$ 0
Homes
Inventory [Line Items]
Inventory valuation adjustment	$ 31,000		$ 211,000

XML

Contract Balances (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract asset	$ 101		$ 78
Revenue recognized, recorded in deferred revenue as of prior period	$ 45	$ 47

XML

Contract Cost Assets (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
Contract cost assets	$ 31,000,000		$ 35,000,000
Impairment of contract cost assets	0	$ 0
Capitalized contract cost, amortization	$ 8,000,000	$ 10,000,000

XML

Property and Equipment, net - Detail of Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Less: accumulated amortization and depreciation	$ 357,000	$ 334,000
Less: accumulated amortization and depreciation	(123,000)	(119,000)
Property and equipment, net	234,000	215,000
Website development costs
Property, Plant and Equipment [Line Items]
Less: accumulated amortization and depreciation	212,000	175,000
Leasehold improvements
Property, Plant and Equipment [Line Items]
Less: accumulated amortization and depreciation	95,000	107,000
Office equipment, furniture and fixtures
Property, Plant and Equipment [Line Items]
Less: accumulated amortization and depreciation	29,000	26,000
Computer equipment
Property, Plant and Equipment [Line Items]
Less: accumulated amortization and depreciation	19,000	19,000
Construction-in-progress
Property, Plant and Equipment [Line Items]
Less: accumulated amortization and depreciation	$ 2,000	$ 7,000

XML

Property and Equipment, net - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Property, Plant and Equipment [Line Items]
Amortization and depreciation expense related to property and equipment other than website development costs	$ 8	$ 8
Capitalization of website development costs	34	12
Amortization of website development costs and intangible assets included in technology and development	22	13
Technology and development | Software Development
Property, Plant and Equipment [Line Items]
Amortization of website development costs and intangible assets included in technology and development	$ 13	$ 8

XML

Acquisition - Narrative (Detail) $ in Millions	Sep. 30, 2021 USD ($)
ShowingTime.com, Inc.
Schedule of Equity Method Investments [Line Items]
Business combination, consideration transferred	$ 512

XML

Acquisition - Preliminary Purchase Price (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021
Schedule of Equity Method Investments [Line Items]
Goodwill	$ 2,374,000	$ 2,374,000
ShowingTime.com, Inc.
Schedule of Equity Method Investments [Line Items]
Cash and cash equivalents			$ 15,000
Identifiable intangible assets			111,000
Goodwill			389,000
Other acquired assets			6,000
Deferred tax liability			(4,000)
Other assumed liabilities			(5,000)
Total preliminary estimated purchase price			$ 512,000

XML

Acquisition - Preliminary Estimated Fair Value and Useful Lives (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]
Estimated Fair Value	$ 111,000
ShowingTime.com, Inc. | Customer relationships
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]
Estimated Fair Value	$ 55,000
Estimated Weighted-Average Useful Life (in years)	8 years
ShowingTime.com, Inc. | Developed technology
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]
Estimated Fair Value	$ 47,000
Estimated Weighted-Average Useful Life (in years)	4 years
ShowingTime.com, Inc. | Trade names and trademarks
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]
Estimated Fair Value	$ 9,000
Estimated Weighted-Average Useful Life (in years)	10 years

XML

Intangible Assets, net - Intangible Assets (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Cost	$ 221,000	$ 382,000
Accumulated Amortization	(56,000)	(202,000)
Net	165,000	180,000
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Cost	55,000	139,000
Accumulated Amortization	(4,000)	(84,000)
Net	51,000	55,000
Developed technology
Finite-Lived Intangible Assets [Line Items]
Cost	50,000	133,000
Accumulated Amortization	(8,000)	(86,000)
Net	42,000	47,000
Software
Finite-Lived Intangible Assets [Line Items]
Cost	65,000	59,000
Accumulated Amortization	(29,000)	(20,000)
Net	36,000	39,000
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Cost	46,000	45,000
Accumulated Amortization	(11,000)	(9,000)
Net	35,000	36,000
Intangibles-in-progress
Finite-Lived Intangible Assets [Line Items]
Cost		2,000
Accumulated Amortization		0
Net		2,000
Purchased content
Finite-Lived Intangible Assets [Line Items]
Cost	5,000	4,000
Accumulated Amortization	(4,000)	(3,000)
Net	$ 1,000	$ 1,000

XML

Intangible Assets, net - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of website development costs and intangible assets included in technology and development	$ 22,000,000	$ 13,000,000
Non-cash impairment charge	$ 0	$ 0

XML

Debt - Schedule of Carrying Value of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total debt	$ 2,534,000	$ 4,840,000
Convertible senior notes
Debt Instrument [Line Items]
Total convertible senior notes	1,656,000	1,319,000
Convertible senior notes | 2026 Notes
Debt Instrument [Line Items]
Total convertible senior notes	$ 495,000	369,000
Stated Interest Rate	1.375%
Convertible senior notes | 2025 Notes
Debt Instrument [Line Items]
Total convertible senior notes	$ 557,000	443,000
Stated Interest Rate	2.75%
Convertible senior notes | 2024 Notes
Debt Instrument [Line Items]
Total convertible senior notes	$ 604,000	507,000
Stated Interest Rate	0.75%
Homes
Debt Instrument [Line Items]
Long-term debt	$ 790,000	3,400,000
Total debt	790,000	3,408,000
Homes | Securitization | 2021-1 term loan
Debt Instrument [Line Items]
Long-term debt	320,000	472,000
Homes | Securitization | 2021-2 term loan
Debt Instrument [Line Items]
Long-term debt	470,000	737,000
Mortgages segment
Debt Instrument [Line Items]
Warehouse line of credit	88,000	113,000
Goldman Sachs Bank USA | Line of Credit | Homes
Debt Instrument [Line Items]
Short-term debt	0	548,000
Citibank, N.A. | Mortgages segment
Debt Instrument [Line Items]
Short-term debt	13,000	17,000
Citibank, N.A. | Line of Credit | Homes
Debt Instrument [Line Items]
Short-term debt	0	770,000
Credit Suisse AG, Cayman Islands | Homes | Line of Credit | 2021-1 variable funding line
Debt Instrument [Line Items]
Long-term debt	0	17,000
Credit Suisse AG, Cayman Islands | Homes | Line of Credit | 2021-2 variable funding line
Debt Instrument [Line Items]
Long-term debt	0	29,000
Credit Suisse AG, Cayman Islands | Mortgages segment
Debt Instrument [Line Items]
Short-term debt	64,000	77,000
Credit Suisse AG, Cayman Islands | Line of Credit | Homes
Debt Instrument [Line Items]
Short-term debt	0	835,000
Comerica Bank | Line of Credit | Mortgages segment
Debt Instrument [Line Items]
Warehouse line of credit	$ 11,000	$ 19,000

XML

Debt - Home Segment, Variable Interest Entities Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Assets	$ 7,820,000	$ 10,695,000
Inventory	494,000	3,913,000
Restricted cash	92,000	227,000
Accounts receivable, net	99,000	155,000
Prepaid expenses and other current assets	386,000	153,000
Liabilities	3,018,000	5,354,000
Accrued expenses and other current liabilities	119,000	161,000
Homes
Debt Instrument [Line Items]
Long-term debt	790,000	3,400,000
Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Assets	838,000	4,200,000
Inventory	494,000	3,900,000
Restricted cash	90,000	225,000
Accounts receivable, net	29,000	78,000
Prepaid expenses and other current assets	224,000
Liabilities	810,000	3,500,000
Accrued expenses and other current liabilities	$ 18,000	$ 55,000

XML

Debt - Home Segment, Securitization Transactions Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Payment for debt extinguishment or debt prepayment cost	$ 439,000	$ 0
Loss on extinguishment of debt	(14,000)	$ (1,000)
2021-1, Fixed Rate Term Loan 1 | Prepaid Expenses and Other Current Assets
Debt Instrument [Line Items]
Payment for debt extinguishment or debt prepayment cost	1,000
2021-1, Fixed Rate Term Loan 1 | Secured Debt
Debt Instrument [Line Items]
Repayments of debt	159,000
Payment for debt extinguishment or debt prepayment cost	1,000
Loss on extinguishment of debt	$ (6,000)
Stated interest rate	2.3425%
Aggregate principal amount	$ 239,000
2021-1, Fixed Rate Term Loan 1 | Secured Debt | Prepaid Expenses and Other Current Assets
Debt Instrument [Line Items]
Repayments of debt	87,000
2021-1, Fixed Rate Term Loan 2 | Prepaid Expenses and Other Current Assets
Debt Instrument [Line Items]
Payment for debt extinguishment or debt prepayment cost	1,000
2021-1, Fixed Rate Term Loan 2 | Secured Debt
Debt Instrument [Line Items]
Repayments of debt	276,000
Payment for debt extinguishment or debt prepayment cost	2,000
Loss on extinguishment of debt	$ (6,000)
Stated interest rate	3.3524%
Aggregate principal amount	$ 51,000
2021-1, Fixed Rate Term Loan 2 | Secured Debt | Prepaid Expenses and Other Current Assets
Debt Instrument [Line Items]
Repayments of debt	132,000
2021-1, Single Principal Term Loan | Secured Debt
Debt Instrument [Line Items]
Aggregate principal amount	$ 30,000
2021-2, Fixed Rate Term Loan 1 | Secured Debt
Debt Instrument [Line Items]
Stated interest rate	2.4294%
Aggregate principal amount	$ 349,000
2021-2, Fixed Rate Term Loan 2 | Secured Debt
Debt Instrument [Line Items]
Stated interest rate	3.586%
Aggregate principal amount	$ 75,000
2021-2, Single Principal Term Loan | Secured Debt
Debt Instrument [Line Items]
Aggregate principal amount	$ 49,000

XML

Debt - Summary of Term Loan Details (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Interest Expense	$ 44,000	$ 40,000
Secured Debt | 2021-1 term loan
Debt Instrument [Line Items]
Aggregate Principal Amount	$ 320,000
Weighted average effective interest rate	4.14%
Reinvestment Period	24 months
Unamortized Debt Issuance Costs	$ 0		$ 8,000
Fair value	320,000		480,000
Contractual Coupon Interest	3,000
Amortization of Debt Discount	3,000
Amortization of Debt Issuance Costs	4,000
Interest Expense	10,000
Secured Debt | 2021-2 term loan
Debt Instrument [Line Items]
Aggregate Principal Amount	$ 473,000
Weighted average effective interest rate	11.29%
Reinvestment Period	30 months
Unamortized Debt Issuance Costs	$ 3,000		12,000
Fair value	473,000		747,000
Contractual Coupon Interest	4,000
Amortization of Debt Discount	5,000
Amortization of Debt Issuance Costs	2,000
Interest Expense	11,000
Secured Debt | 2021-1 and 2021-2 Term Loan
Debt Instrument [Line Items]
Aggregate Principal Amount	793,000
Unamortized Debt Issuance Costs	3,000		20,000
Fair value	793,000		$ 1,227,000
Contractual Coupon Interest	7,000
Amortization of Debt Discount	8,000
Amortization of Debt Issuance Costs	6,000
Interest Expense	$ 21,000

XML

Debt - Mortgages Segment, Schedule of Warehouse Lines of Credit (Details) - Line of Credit - Mortgages segment - USD ($)	Mar. 31, 2022	Mar. 18, 2022
Debt Instrument [Line Items]
Maximum Borrowing Capacity	$ 260,000,000
Credit Suisse AG, Cayman Islands
Debt Instrument [Line Items]
Maximum Borrowing Capacity	$ 100,000,000	$ 100,000,000
Weighted-Average Interest Rate	2.00%
Citibank, N.A.
Debt Instrument [Line Items]
Maximum Borrowing Capacity	$ 100,000,000
Weighted-Average Interest Rate	2.20%
Comerica Bank
Debt Instrument [Line Items]
Maximum Borrowing Capacity	$ 60,000,000
Weighted-Average Interest Rate	2.51%

XML

Debt - Mortgages Segment - Narrative (Detail) - Mortgages segment - USD ($)	Mar. 31, 2022	Mar. 18, 2022	Dec. 31, 2021
Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 260,000,000
Credit Suisse AG, Cayman Islands
Debt Instrument [Line Items]
Short-term debt	64,000,000		$ 77,000,000
Credit Suisse AG, Cayman Islands | Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	100,000,000	$ 100,000,000
Credit Suisse and Citibank, N.A
Debt Instrument [Line Items]
Short-term debt	$ 82,000,000		$ 87,000,000

XML

Debt - Schedule of Convertible Senior Notes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Debt Instrument [Line Items]
Interest Expense	$ 44,000,000	$ 40,000,000
Convertible senior notes
Debt Instrument [Line Items]
Aggregate Principal Amount	1,672,000,000
Unamortized Debt Issuance Costs	16,000,000		$ 353,000,000
Fair Value	2,089,000,000		2,451,000,000
Contractual Coupon Interest	7,000,000	8,000,000
Amortization of Debt Discount		24,000,000
Amortization of Debt Issuance Costs	0	2,000,000
Interest Expense	7,000,000	34,000,000
Convertible senior notes | 2026 Notes
Debt Instrument [Line Items]
Aggregate Principal Amount	$ 499,000,000
Stated Interest Rate	1.375%
Effective Interest Rate	1.57%
Unamortized Debt Issuance Costs	$ 4,000,000		130,000,000
Fair Value	663,000,000		781,000,000
Contractual Coupon Interest	2,000,000	2,000,000
Amortization of Debt Discount		5,000,000
Amortization of Debt Issuance Costs	0	0
Interest Expense	2,000,000	7,000,000
Convertible senior notes | 2025 Notes
Debt Instrument [Line Items]
Aggregate Principal Amount	$ 565,000,000
Stated Interest Rate	2.75%
Effective Interest Rate	3.20%
Unamortized Debt Issuance Costs	$ 8,000,000		122,000,000
Fair Value	642,000,000		725,000,000
Contractual Coupon Interest	4,000,000	4,000,000
Amortization of Debt Discount		7,000,000
Amortization of Debt Issuance Costs	0	0
Interest Expense	4,000,000	11,000,000
Convertible senior notes | 2024 Notes
Debt Instrument [Line Items]
Aggregate Principal Amount	$ 608,000,000
Stated Interest Rate	0.75%
Effective Interest Rate	1.02%
Unamortized Debt Issuance Costs	$ 4,000,000		101,000,000
Fair Value	784,000,000		$ 945,000,000
Contractual Coupon Interest	1,000,000	1,000,000
Amortization of Debt Discount		8,000,000
Amortization of Debt Issuance Costs	0	1,000,000
Interest Expense	1,000,000	10,000,000
Convertible senior notes | 2023 Notes
Debt Instrument [Line Items]
Contractual Coupon Interest	0	1,000,000
Amortization of Debt Discount		4,000,000
Amortization of Debt Issuance Costs	0	1,000,000
Interest Expense	$ 0	$ 6,000,000

XML

Debt - Summary of Conversion and Redemption (Details) - Convertible senior notes	3 Months Ended
	Mar. 31, 2022 $ / shares
2026 Notes
Debt Instrument [Line Items]
Conversion Rate	0.0229830
Conversion price per share (usd per share)	$ 43.51
2025 Notes
Debt Instrument [Line Items]
Conversion Rate	0.0148810
Conversion price per share (usd per share)	$ 67.20
2024 Notes
Debt Instrument [Line Items]
Conversion Rate	0.0229830
Conversion price per share (usd per share)	$ 43.51

XML

Debt - Capped Call Confirmations (Details) - Convertible senior notes	3 Months Ended
	Mar. 31, 2022 $ / shares
2026 Notes
Debt Instrument [Line Items]
Initial cap price (usd per share)	$ 80.5750
Cap Price Premium	150.00%
2024 Notes
Debt Instrument [Line Items]
Initial cap price (usd per share)	$ 72.5175
Cap Price Premium	125.00%
2023 Notes
Debt Instrument [Line Items]
Initial cap price (usd per share)	$ 105.45
Cap Price Premium	85.00%

XML

Debt - Summary of Convertible Debt (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Loss on extinguishment of debt:
Loss on extinguishment of debt	$ (14,000)	$ (1,000)
Convertible senior notes
Debt Instrument [Line Items]
Aggregate principal amount settled	$ 53,000
Shares of Class C capital stock issued (in shares)	1,203,000,000
Total fair value of consideration transferred	$ 160,000
Loss on extinguishment of debt:
Consideration allocated to liability component	43,000
Carrying value of the liability component, net of unamortized debt discount and debt issuance costs	42,000
Loss on extinguishment of debt	1,000
Consideration allocated to the equity component	117,000
2023 Notes | Convertible senior notes
Debt Instrument [Line Items]
Aggregate principal amount settled	$ 1,000
Shares of Class C capital stock issued (in shares)	12,000,000
Total fair value of consideration transferred	$ 2,000
Loss on extinguishment of debt:
Consideration allocated to liability component	1,000
Carrying value of the liability component, net of unamortized debt discount and debt issuance costs	1,000
Loss on extinguishment of debt	0
Consideration allocated to the equity component	1,000
2024 Notes | Convertible senior notes
Debt Instrument [Line Items]
Aggregate principal amount settled	$ 51,000
Shares of Class C capital stock issued (in shares)	1,163,000,000
Total fair value of consideration transferred	$ 154,000
Loss on extinguishment of debt:
Consideration allocated to liability component	41,000
Carrying value of the liability component, net of unamortized debt discount and debt issuance costs	40,000
Loss on extinguishment of debt	1,000
Consideration allocated to the equity component	113,000
2026 Notes | Convertible senior notes
Debt Instrument [Line Items]
Aggregate principal amount settled	$ 1,000
Shares of Class C capital stock issued (in shares)	28,000,000
Total fair value of consideration transferred	$ 4,000
Loss on extinguishment of debt:
Consideration allocated to liability component	1,000
Carrying value of the liability component, net of unamortized debt discount and debt issuance costs	1,000
Loss on extinguishment of debt	0
Consideration allocated to the equity component	$ 3,000

XML

Debt - Convertible Senior Notes Narrative (Details) - Convertible senior notes	3 Months Ended
	Mar. 31, 2022 day
Convertible Senior Notes due 2023, 2024, 2025 and 2026
Debt Instrument [Line Items]
Debt instrument, convertible threshold trading days	20
Debt instrument, threshold consecutive trading days	30
Convertible Senior Notes Due 2024, 2025, 2026
Debt Instrument [Line Items]
Debt instrument, convertible threshold percentage	130.00%

XML

Income Taxes - Narrative (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Schedule Of Income Tax [Line Items]
Income tax expense (benefit)	$ (9,000)	$ (3,000)
Federal
Schedule Of Income Tax [Line Items]
Net operating loss carryforwards			$ 2,100,000
State
Schedule Of Income Tax [Line Items]
Net operating loss carryforwards			$ 73,000

XML

Shareholders' Equity - Additional Information (Detail)		3 Months Ended
	Feb. 17, 2021 USD ($)	Mar. 31, 2022 USD ($) Vote shares	Mar. 31, 2021 shares	Dec. 31, 2021 shares	Dec. 02, 2021 USD ($)
Class of Stock [Line Items]
Preferred stock, issued (in shares) | shares		0		0
Preferred stock, outstanding (in shares) | shares		0		0
Stock repurchase program, authorized amount | $					$ 750,000,000
Stock repurchase program, remaining authorized repurchase amount | $		$ 100,000,000
Class A common stock
Class of Stock [Line Items]
Common stock holders voting right | Vote		1
Conversion of common stock conversion ratio		1
Class B Common Stock
Class of Stock [Line Items]
Common stock holders voting right | Vote		10
Class C Capital Stock | Equity Distribution Agreement
Class of Stock [Line Items]
Sale of stock, maximum consideration on transaction | $	$ 1,000,000,000
Shares of Class C capital stock sold (in shares) | shares		0	3,164

XML

Shareholders' Equity - Summary of Equity Distribution (Details) - Class C Capital Stock - Equity Distribution Agreement - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Class of Stock [Line Items]
Shares of Class C capital stock sold (in shares)	0	3,164
Weighted-average issuance price per share (usd per share)		$ 174.05
Gross proceeds		$ 551,000
Net proceeds from sale of stock		545,000
Payments for commissions		$ 6,000

XML

Shareholders' Equity - Repurchase Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) $ / shares shares
Class A common stock
Class of Stock [Line Items]
Shares repurchased (in shares) | shares	1,412
Weighted-average price per share (in USD per share) | $ / shares	$ 58.38
Total purchase price | $	$ 83,000
Class C capital stock
Class of Stock [Line Items]
Shares repurchased (in shares) | shares	4,446
Weighted-average price per share (in USD per share) | $ / shares	$ 59.66
Total purchase price | $	$ 265,000

XML

Share-Based Awards - Summary of Option Award (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Number of Shares Subject to Existing Options (in thousands)
Beginning Balance (in shares)	25,746
Granted (in shares)	5,519
Exercised (in shares)	(807)
Forfeited or cancelled (in shares)	(1,155)
Ending Balance (in shares)	29,303	25,746
Vested and exercisable (in shares)	12,890
Weighted- Average Exercise Price Per Share
Beginning Balance (usd per share)	$ 72.86
Granted (usd per share)	49.75
Exercised (usd per share)	43.97
Forfeited or cancelled (usd per share)	92.43
Ending Balance (usd per share)	68.53	$ 72.86
Vested and exercisable (usd per share)	$ 55.63
Weighted- Average Remaining Contractual Life (Years)
Weighted-Average Remaining Contractual Life, Outstanding	7 years 8 months 26 days	7 years 5 months 23 days
Weighted-Average Remaining Contractual Life, Vested and exercisable	6 years 2 months 8 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value, Outstanding	$ 122	$ 354
Aggregate Intrinsic Value, Vested and exercisable	$ 102

XML

Share-Based Awards - Fair Value of Options Granted, Estimated at Date of Grant Using Black Scholes Merton Option Pricing Model (Detail) - Option awards - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of options granted (usd per share)	$ 25.08	$ 59.74
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	55.00%	52.00%
Risk-free interest rate	1.94%	0.57%
Weighted-average expected life	4 years 6 months	4 years 6 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	60.00%	55.00%
Risk-free interest rate	2.54%	0.90%
Weighted-average expected life	6 years	5 years 9 months

XML

Share-Based Awards - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years
Option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized cost of unvested share-based compensation awards	$ 553
Unvested restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost	$ 509

XML

Share-Based Awards - Summary of Restricted Stock Units Activity (Detail) - Unvested restricted stock units	3 Months Ended
	Mar. 31, 2022 $ / shares shares
Restricted Stock Units (in thousands)
Beginning balance (in shares) | shares	6,074
Granted (in shares) | shares	4,839
Vested (in shares) | shares	(689)
Forfeited (in shares) | shares	(909)
Ending balance (in shares) | shares	9,315
Weighted- Average Grant- Date Fair Value
Unvested outstanding, beginning balance (usd per share) | $ / shares	$ 66.51
Granted (usd per share) | $ / shares	49.71
Vested (usd per share) | $ / shares	59.68
Forfeited (usd per share) | $ / shares	63.29
Unvested outstanding, ending balance (usd per share) | $ / shares	$ 58.60

XML

Share-Based Awards - Effects of Share Based Compensation in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	$ 91,000	$ 64,000
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	3,000	3,000
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	12,000	10,000
Technology and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	29,000	26,000
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	38,000	25,000
Restructuring costs
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation	$ 9,000	$ 0

XML

Net Income Per Share - Maximum Number of Shares and Conversion Price (Details) - Convertible senior notes shares in Thousands	3 Months Ended
	Mar. 31, 2022 $ / shares shares
2026 Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares (in shares) | shares	11,464
Conversion price per share (usd per share) | $ / shares	$ 43.51
May 15, 2025
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares (in shares) | shares	8,408
Conversion price per share (usd per share) | $ / shares	$ 67.20
September 1, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares (in shares) | shares	13,983
Conversion price per share (usd per share) | $ / shares	$ 43.51

XML

Net Income Per Share - Schedule of Denominators Used in Basic and Diluted Per Share Calculations (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Denominator for basic calculation (in shares)	248,542	243,234
Denominator for dilutive calculation (in shares)	251,963	259,346
Option awards
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Effect of dilutive securities, share-based payment arrangements (in shares)	2,558	12,437
Unvested restricted stock units
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Effect of dilutive securities, share-based payment arrangements (in shares)	863	3,675

XML

Net Income Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Class A Common Stock and Class C Capital Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total Class A common stock and Class C capital stock equivalents (in shares)	42,163	42,683
Class A Common Stock and Class C Capital Stock | Weighted-average | Option awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total Class A common stock and Class C capital stock equivalents (in shares)	5,120	2,546
Class A Common Stock and Class C Capital Stock | Weighted-average | Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total Class A common stock and Class C capital stock equivalents (in shares)	3,188	303
Class C capital stock issuable upon conversion of the convertible notes maturing in 2023, 2024, 2025 and 2026 | Convertible notes maturing in 2023, 2024, 2025 and 2026
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total Class A common stock and Class C capital stock equivalents (in shares)	33,855	39,834

XML

Commitments and Contingencies - Additional Information (Detail) $ in Millions	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Nov. 16, 2021 claim	Jul. 23, 2021 patent	Mar. 15, 2021 patent	Sep. 18, 2020 petition patent	Jul. 21, 2020 patent	Sep. 17, 2019 patent	Feb. 28, 2018 claim	Feb. 16, 2018 claim	Feb. 05, 2018 claim	Sep. 30, 2017 claim
Other Commitments [Line Items]
Escrow deposit	$ 3	$ 55
Outstanding letters of credit	16
Outstanding surety bonds	$ 13	$ 12
Number of patents infringed | patent					2	3	5	7
Number of petitions filed				1		4
Class Action Lawsuits
Other Commitments [Line Items]
Number of pending claims | claim												2
Shareholder Derivative Lawsuits
Other Commitments [Line Items]
Number of pending claims | claim			3						4	2	2

XML

Segment Information and Revenue - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2022 Segment
Segment Reporting [Abstract]
Number of reportable segments	3
Number of operating segments	3

XML

Segment Information and Revenue - Revenue Categories (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue:
Total revenue	$ 4,257,000	$ 1,218,000
Cost of revenue	3,622,000	711,000
Gross profit	635,000	507,000
Operating expenses:
Sales and marketing	307,000	197,000
Technology and development	114,000	120,000
General and administrative	119,000	101,000
Acquisition-related costs	0	1,000
Total operating expenses	578,000	419,000
Income from operations	57,000	88,000
Other income	8,000	2,000
Interest expense	(44,000)	(40,000)
Loss on extinguishment of debt	(14,000)	(1,000)
Income before income taxes	7,000	49,000
Operating Segments
Operating expenses:
Income before income taxes	13,000	83,000
Homes
Revenue:
Total revenue	3,721,000	704,000
Cost of revenue	3,537,000	645,000
Homes | Operating Segments
Revenue:
Total revenue	3,721,000	704,000
Cost of revenue	3,537,000	645,000
Gross profit	184,000	59,000
Operating expenses:
Sales and marketing	142,000	55,000
Technology and development	12,000	33,000
General and administrative	24,000	25,000
Restructuring costs	30,000	0
Acquisition-related costs	0	0
Total operating expenses	208,000	113,000
Income from operations	(24,000)	(54,000)
Other income	6,000	0
Interest expense	(36,000)	(4,000)
Loss on extinguishment of debt	(14,000)	0
Income before income taxes	(68,000)	(58,000)
Homes | Zillow Offers | Operating Segments
Revenue:
Total revenue	3,718,000	701,000
Homes | Premier Agent | Operating Segments
Revenue:
Total revenue	0	0
Homes | Rentals | Operating Segments
Revenue:
Total revenue	0	0
Homes | Other | Operating Segments
Revenue:
Total revenue	3,000	3,000
Homes | Mortgages | Operating Segments
Revenue:
Total revenue	0	0
IMT
Revenue:
Total revenue	490,000	446,000
Cost of revenue	65,000	47,000
IMT | Operating Segments
Revenue:
Total revenue	490,000	446,000
Cost of revenue	65,000	47,000
Gross profit	425,000	399,000
Operating expenses:
Sales and marketing	142,000	117,000
Technology and development	92,000	79,000
General and administrative	77,000	59,000
Restructuring costs	6,000	0
Acquisition-related costs	0	1,000
Total operating expenses	317,000	256,000
Income from operations	108,000	143,000
Other income	0	0
Interest expense	0	0
Loss on extinguishment of debt	0	0
Income before income taxes	108,000	143,000
IMT | Zillow Offers | Operating Segments
Revenue:
Total revenue	0	0
IMT | Premier Agent | Operating Segments
Revenue:
Total revenue	363,000	334,000
IMT | Rentals | Operating Segments
Revenue:
Total revenue	61,000	64,000
IMT | Other | Operating Segments
Revenue:
Total revenue	66,000	48,000
IMT | Mortgages | Operating Segments
Revenue:
Total revenue	0	0
Mortgages segment
Revenue:
Total revenue	46,000	68,000
Cost of revenue	20,000	19,000
Mortgages segment | Operating Segments
Revenue:
Total revenue	46,000	68,000
Cost of revenue	20,000	19,000
Gross profit	26,000	49,000
Operating expenses:
Sales and marketing	23,000	25,000
Technology and development	10,000	8,000
General and administrative	18,000	17,000
Restructuring costs	2,000	0
Acquisition-related costs	0	0
Total operating expenses	53,000	50,000
Income from operations	(27,000)	(1,000)
Other income	1,000	1,000
Interest expense	(1,000)	(2,000)
Loss on extinguishment of debt	0	0
Income before income taxes	(27,000)	(2,000)
Mortgages segment | Zillow Offers | Operating Segments
Revenue:
Total revenue	0	0
Mortgages segment | Premier Agent | Operating Segments
Revenue:
Total revenue	0	0
Mortgages segment | Rentals | Operating Segments
Revenue:
Total revenue	0	0
Mortgages segment | Other | Operating Segments
Revenue:
Total revenue	0	0
Mortgages segment | Mortgages | Operating Segments
Revenue:
Total revenue	$ 46,000	$ 68,000

XML

Segment Information and Revenue - Depreciation and Amortization Expense and Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting, Revenue Reconciling Item [Line Items]
Depreciation and amortization expense	$ 43,000	$ 29,000
Share-based compensation expense	91,000	64,000
Homes | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Depreciation and amortization expense	5,000	5,000
Share-based compensation expense	12,000	16,000
IMT | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Depreciation and amortization expense	35,000	23,000
Share-based compensation expense	60,000	42,000
Mortgages segment | Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Depreciation and amortization expense	3,000	1,000
Share-based compensation expense	$ 10,000	$ 6,000

XML

Segment Information and Revenue - Reconciliation of Segment Gross Profit and Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting, Revenue Reconciling Item [Line Items]
Total segment income before income taxes	$ 7,000	$ 49,000
Corporate interest expense	(44,000)	(40,000)
Corporate other income	8,000	2,000
Loss on extinguishment of debt	(14,000)	(1,000)
Consolidated income before income taxes	7,000	49,000
Operating Segments
Segment Reporting, Revenue Reconciling Item [Line Items]
Total segment income before income taxes	13,000	83,000
Consolidated income before income taxes	13,000	83,000
Corporate
Segment Reporting, Revenue Reconciling Item [Line Items]
Corporate interest expense	(7,000)	(34,000)
Corporate other income	1,000	1,000
Loss on extinguishment of debt	$ 0	$ (1,000)

XML

Restructuring and Zillow Offers Wind Down - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Nov. 30, 2021	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]
Inventory write-down		$ 5,000	$ 0
Restructuring reserve		47,000		$ 49,000
One-time Termination Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring reserve		41,000
Total other charges
Restructuring Cost and Reserve [Line Items]
Restructuring reserve		2,000
Contract termination costs
Restructuring Cost and Reserve [Line Items]
Restructuring reserve		$ 4,000		$ 4,000
Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations
Restructuring Cost and Reserve [Line Items]
Expected reduction in workforce, percentage	25.00%
Percentage of wind down completed		21.00%

XML

Restructuring and Zillow Offers Wind Down - Charges Incurred and Expected (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Restructuring Cost and Reserve [Line Items]
Additions charged to expense	$ 40,000
Employee termination costs
Restructuring Cost and Reserve [Line Items]
Additions charged to expense	25,000
Contract termination costs
Restructuring Cost and Reserve [Line Items]
Additions charged to expense	14,000
Other
Restructuring Cost and Reserve [Line Items]
Additions charged to expense	1,000
Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations
Restructuring Cost and Reserve [Line Items]
Restructuring charges	79,000
Additions charged to expense	157,000
Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Inventory write-down
Restructuring Cost and Reserve [Line Items]
Restructuring charges	5,000
Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Total other charges
Restructuring Cost and Reserve [Line Items]
Restructuring charges	74,000
Additions charged to expense	157,000
Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Employee termination costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	33,000
Additions charged to expense	94,000
Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Financing-related charges
Restructuring Cost and Reserve [Line Items]
Restructuring charges	30,000
Additions charged to expense	36,000
Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Contract termination costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	4,000
Additions charged to expense	14,000
Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Accelerated depreciation and amortization
Restructuring Cost and Reserve [Line Items]
Restructuring charges	6,000
Additions charged to expense	11,000
Total Expected	17,000
Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Asset write-offs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0
Additions charged to expense	1,000
Total Expected	1,000
Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Other
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,000
Additions charged to expense	1,000
Minimum | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Total other charges
Restructuring Cost and Reserve [Line Items]
Total Expected	170,000
Minimum | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Employee termination costs
Restructuring Cost and Reserve [Line Items]
Total Expected	95,000
Minimum | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Financing-related charges
Restructuring Cost and Reserve [Line Items]
Total Expected	40,000
Minimum | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Contract termination costs
Restructuring Cost and Reserve [Line Items]
Total Expected	16,000
Minimum | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Other
Restructuring Cost and Reserve [Line Items]
Total Expected	1,000
Maximum | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Total other charges
Restructuring Cost and Reserve [Line Items]
Total Expected	185,000
Maximum | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Employee termination costs
Restructuring Cost and Reserve [Line Items]
Total Expected	106,000
Maximum | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Contract termination costs
Restructuring Cost and Reserve [Line Items]
Total Expected	19,000
Maximum | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Other
Restructuring Cost and Reserve [Line Items]
Total Expected	2,000
Homes | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations
Restructuring Cost and Reserve [Line Items]
Restructuring charges	71,000
Homes | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Inventory write-down
Restructuring Cost and Reserve [Line Items]
Restructuring charges	5,000
Homes | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Total other charges
Restructuring Cost and Reserve [Line Items]
Restructuring charges	66,000
Homes | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Employee termination costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	25,000
Homes | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Financing-related charges
Restructuring Cost and Reserve [Line Items]
Restructuring charges	30,000
Homes | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Contract termination costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	4,000
Homes | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Accelerated depreciation and amortization
Restructuring Cost and Reserve [Line Items]
Restructuring charges	6,000
Homes | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Asset write-offs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0
Homes | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Other
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,000
Mortgages segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2,000
Mortgages segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Inventory write-down
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0
Mortgages segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Total other charges
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2,000
Mortgages segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Employee termination costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2,000
Mortgages segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Financing-related charges
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0
Mortgages segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Contract termination costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0
Mortgages segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Accelerated depreciation and amortization
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0
Mortgages segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Asset write-offs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0
Mortgages segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Other
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0
IMT Segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations
Restructuring Cost and Reserve [Line Items]
Restructuring charges	6,000
IMT Segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Inventory write-down
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0
IMT Segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Total other charges
Restructuring Cost and Reserve [Line Items]
Restructuring charges	6,000
IMT Segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Employee termination costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	6,000
IMT Segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Financing-related charges
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0
IMT Segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Contract termination costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0
IMT Segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Accelerated depreciation and amortization
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0
IMT Segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Asset write-offs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0
IMT Segment | Disposal Group, Disposed of By Means Other Than Sale, Wind-Down | Zillow Offers Operations | Other
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0

XML

Restructuring and Zillow Offers Wind Down - Restructuring Reserve (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Restructuring Reserve [Roll Forward]
Balance, beginning of period	$ 49,000
Additions charged to expense	40,000
Cash payments	(39,000)
Adjustments	(3,000)
Balance, end of period	47,000
Employee termination costs
Restructuring Reserve [Roll Forward]
Balance, beginning of period	45,000
Additions charged to expense	25,000
Cash payments	(27,000)
Adjustments	(1,000)
Balance, end of period	42,000
Contract termination costs
Restructuring Reserve [Roll Forward]
Balance, beginning of period	4,000
Additions charged to expense	14,000
Cash payments	(12,000)
Adjustments	(2,000)
Balance, end of period	4,000
Other
Restructuring Reserve [Roll Forward]
Balance, beginning of period	0
Additions charged to expense	1,000
Cash payments	0
Adjustments	0
Balance, end of period	$ 1,000

XML

Subsequent Events (Details) - USD ($)	May 04, 2022	Mar. 31, 2022	Dec. 02, 2021
Subsequent Event [Line Items]
Stock repurchase program, authorized amount			$ 750,000,000
2021-1 term loan | Secured Debt
Subsequent Event [Line Items]
Aggregate principal amount		$ 320,000,000
2021-2 term loan | Secured Debt
Subsequent Event [Line Items]
Aggregate principal amount		$ 473,000,000
Class A Common Stock and Class C Capital Stock
Subsequent Event [Line Items]
Stock repurchase program, authorized amount			$ 750,000,000
Subsequent Event | Class A Common Stock and Class C Capital Stock
Subsequent Event [Line Items]
Stock repurchase program, authorized amount	$ 1,000,000,000