Zillow rides booming real estate market to 70% revenue growth

Zillow co-founder and CEO Rich Barton says the company sees several factors to continue to drive demand for home purchases for years to come

The booming real estate market propelled Zillow Group Inc. to a whopping 70% year-over-year increase in revenue on the quarter.

The U.S.'s largest real estate site's total revenue was $1.3 billion, up from $768.4 million a year earlier, the company said in its second-quarter earnings report after the closing bell on Thursday. Zillow also beat analysts' expectations of $1.28 billion in revenue.

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Zillow also made a profit of $9.6 million last quarter after taking a beating during the same time last year due to the coronavirus and losing $84.4 million. Earnings per share were up 4 cents, compared with a loss of 38 cents in the same quarter in 2020.

"Zillow is making rapid and significant progress toward building a seamless, integrated real estate experience for our customers and partners," co-founder and CEO Rich Barton said in a statement accompanying the report. "Our strong second-quarter results show how well we’re executing on the three- to five-year growth objectives we announced in 2019."

Zillow revenue

The booming real estate market propelled Zillow to a whopping 70% year-over-year increase in revenue on the quarter. (Zillow)

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"Of particular note, our iBuying business, Zillow Offers, continues to accelerate as we offer more customers a fast, fair, flexible and convenient way to move," he continued. "Zillow Offers is proving attractive to sellers even in this sizzling-hot seller’s market."

Barton added, "finally, we expect millennial-buyers, low interest rates, and the increasing adoption of location-flexible work policies, to fuel interest in moving for many years to come. And these movers will increasingly demand e-commerce-like solutions where Zillow excels."