Zillow Group, Inc. (NASDAQ:Z) is up on a big earnings beat for the first quarter, with Z and ZG stock classes both up more than 5% on Friday morning.
Zillow said revenue in the first quarter increased 32% to $245.8 million from $186 million a year earlier. Analysts had forecast $236.03 million. Earnings were 11 cents per share, beating the consensus analyst estimates of 5 cents per share.
Seattle, Washington-based Zillow provides information about homes, real estate listings, and mortgages throughout the United States via their website and mobile applications.
“Zillow Group’s strong first quarter performance across the board was a tremendous start to 2017,” said CEO Spencer Rascoff in the company’s earnings announcement. “We beat our own expectations and surpassed last year’s seasonal annual traffic peak by reaching an all-time high of unique users in March. We are thrilled with our first quarter results, which demonstrate that as consumers become more engaged, real estate agents and brokerages become more successful on our platform.”
Use of Zillow’s mobile apps and websites reached an all-time high of nearly 180 million unique users in March, the company said. More than 166 million monthly unique users on average visited the sites during the first quarter, an increase of 7% year-over-year. Z brands include Zillow, Trulia and, since March, StreetEasy.
For full year 2017, ZG is increasing its outlook for revenue to a range of $1.05 billion to $1.07 billion, which represents a 25% year-over-year increase at the midpoint of the range.
Management raised its FY2017 adjusted EBITDA outlook to a range of $215 million to $230 million. The company said it will increase its investment in advertising to support growth in users and visits at a rate that is lower than revenue growth.
Last month, Baron Opportunity Fund’s Ashim Mehra told investors that Zillow’s new products position the company to continue to grow its market share.
ZG stock is now up more than 14% for the year-to-date.