There seems to be something about the third quarter that’s good for Zillow Group’s business.
Last year’s third quarter saw the company post its biggest profit ever – and its first quarterly profit since the fourth quarter of 2013.
Since then, it’s been three straight quarters back in the red for Zillow.
But now that the third quarter has come around again, Zillow is back in the black, with another record-breaking quarter.
Zillow reported Tuesday that during the third quarter it saw its highest profit ever.
For the quarter, Zillow reported GAAP net income of $9.2 million, or 3% of revenue, compared to GAAP net income of $6.8 million, or 3% of revenue, in the third quarter of 2016.
In addition to seeing record profits, Zillow also saw record revenue in the third quarter.
In the third quarter, Zillow’s revenue rose 25% to a record $281.8 million from $224.6 million in the third quarter of 2016.
The news as good all over the board for Zillow, as each of its segment’s saw revenue climb in the third quarter.
Marketplace revenue increased 27% to $262.7 million from $206.9 million in the third quarter of 2016; while Premier Agent revenue increased 24% to $197.1 million from $158.3 million in the third quarter of 2016.
Zillow said that the number of Premier Agent accounts spending more than $5,000 per month grew by 98% year-over-year and increased 88% on a total dollar basis in the third quarter.
Additionally, mortgages revenue increased 6% to $20.9 million from $19.8 million in the third quarter of 2016, and display revenue increased 8% to $19.1 million from $17.7 million in the third quarter of 2016.
Finally, revenue from a category that Zillow calls “other real estate revenue,” which consists of revenue generated by Zillow Group Rentals, new construction, as well as revenue from the sale of various other advertising and business software solutions and services for real estate professionals, increased 55% to $44.8 million from $28.8 million in the third quarter of 2016.
Zillow also saw record web traffic during the quarter.
According to Zillow, more than 175 million average monthly unique users visited Zillow Group brands’ mobile apps and websites during the quarter, an increase of 6% year-over-year.
Zillow’s traffic hit an all-time high of more than 187 million unique users in July 2017, an increase of more than 17 million unique users from July 2016.
“Zillow Group delivered record revenue and profitability for the third quarter of 2017, driven by strong contributions from all of our marketplaces” Zillow Group CEO Spencer Rascoff said.
“It has been an exciting year for the company. We created several innovative products and further cemented our leadership position in the real estate category,” Rascoff continued.
“Consumers are demanding more than ever from their real estate experiences. We are delivering new products that will delight consumers and our industry partners, such as 3D home tours that can be captured on an iPhone, and our test of Zillow Instant Offers that allows home sellers to compare an agent's estimate of their home's potential sale price alongside investor offers,” Rascoff added. “We look forward to continuing to innovate in 2018 with new products and services that we believe real estate professionals, home buyers, sellers, owners and renters will love.”
Zillow said Tuesday that it expects to post another profit for the fourth quarter, estimating its net income to come in between $6.5 million and $11.5 million for the last quarter of the year.
But given the net losses in the first two quarters of the year, Zillow is still estimating a loss for the year of between $5 million and $10 million.
