Zillow stock (NASDAQ:ZG) had a terrible Tuesday as it was plummeting late in the day following the company’s quarterly earnings results, which were released after hours and they missed what analysts were calling for.
The online real estate marketplace said that for its third quarter of fiscal 2018, it brought in revenue of $343.09 million, which is below the $344.19 million that the Wall Street consensus estimate was projecting. The company’s sales did increase approximately 22% compared to its year-ago quarter.
“Zillow Group is undergoing a period of transformational innovation, including our new Premier Agent® lead validation and distribution process, Zillow OffersTM, and now mortgage origination, which together will provide more of an end-to-end real estate transaction experience for consumers,” said Zillow Group CEO Spencer Rascoff.
“We believe that these changes will have positive long-term effects for consumers, our industry partners and our business. It will take time for advertisers to adapt to these changes, but we are confident that they set us up for long-term growth,” he added.
Zillow added that for its fiscal 2018, it now sees revenue of about $1.307 billion to $1.324 billion, which is below the analyst consensus of $1.34 billion.
ZG stock was gaining about 0.7% during regular trading hours in anticipation of the company’s quarterly earnings results, which were much weaker than what analysts were calling for. The company’s underwhelming revenue sent shares plummeting 19.6% after the bell on Tuesday.