Zillow Group reported record revenue results of $208.4 million for quarter ending 30 June 2016, an increase of 31 per cent year-over-year, excluding revenue from Market Leader, which was divested in the third quarter of 2015.
The USA's number one real estate marketplace posted an all-time high of more than 171 million unique users in May recorded by Zillow Group consumer brands Zillow®, Trulia®, StreetEasy®, HotPads®and Naked Apartments®.
Zillow Group also says it captured 78 per cent market share of the mobile-only category.
Leads to Zillow Group Premier Agent® Advertisers for the second quarter of 2016 grew nearly 50 per cent year over year to more than 4 million.
Cost of litigation
However the ongoing litigation between Realtor.com and Zillow, which finally ended this year, took its toll in the quarter.
Zillow reported a GAAP net loss of $156.1 million in the second quarter of 2016, which includes the impact of a $130.0 million litigation settlement and$12.5 million in related legal costs, compared to GAAP net loss of $38.7 million in the same period last year.
As a result, adjusted EBITDA was $101.3 million in the second quarter of 2016,reflecting a 12 per cent decrease from $21.0 million the previous year.
Excluding the impact of the $130.0 million litigation settlement, Zillow says adjusted EBITDA in the second quarter of 2016 would have been $28.7 million, or 14 per cent of Revenue.
"Record revenue and traffic growth were highlights of Zillow Group's tremendous second quarter," says Zillow Group CEO Spencer Rascoff.
"We continue to command significant category leadership on mobile and web, reaching an all-time high of unique users in May and achieving our largest market share of the real estate category.
"It is clear that our monetization on mobile is benefiting from our significant market leadership, which now captures 78% of the mobile-only category," he says.
"We are executing well against our long-term strategic priorities to increase our audience size, grow our Premier Agent and emerging marketplaces, and attract and retain the best talent in the industry."
Second Quarter 2016 Financial Highlights