EX-99.2 3 q42024992.htm EX-99.2 Document

Exhibit 99.2


Reported Consolidated Results

ZILLOW GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)
December 31, 2024December 31, 2023
Assets
Current assets:
Cash and cash equivalents$1,082 $1,492 
Short-term investments776 1,318 
Accounts receivable, net104 96 
Mortgage loans held for sale159 100 
Prepaid expenses and other current assets210 140 
Restricted cash3 3 
Total current assets2,334 3,149 
Contract cost assets25 23 
Property and equipment, net360 328 
Right of use assets59 73 
Goodwill2,823 2,817 
Intangible assets, net207 241 
Other assets21 21 
Total assets$5,829 $6,652 
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable$30 $28 
Accrued expenses and other current liabilities105 107 
Accrued compensation and benefits57 47 
Borrowings under credit facilities145 93 
Deferred revenue62 52 
Lease liabilities, current portion14 37 
Convertible senior notes, current portion418 607 
Total current liabilities831 971 
Lease liabilities, net of current portion83 95 
Convertible senior notes, net of current portion— 1,000 
Other long-term liabilities67 60 
Total liabilities981 2,126 
Shareholders’ equity:
Class A common stock
— — 
Class B common stock
— — 
Class C capital stock
— — 
Additional paid-in capital6,733 6,301 
Accumulated other comprehensive loss (3)(5)
Accumulated deficit(1,882)(1,770)
Total shareholders’ equity4,848 4,526 
Total liabilities and shareholders’ equity$5,829 $6,652 



ZILLOW GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except share data, which are presented in thousands, and per share data, unaudited)
 Three Months Ended
December 31,		Year Ended
December 31,
 2024202320242023
Revenue$554 $474 $2,236 $1,945 
Cost of revenue (1)
134 115 527 421 
Gross profit420 359 1,709 1,524 
Operating expenses:
Sales and marketing (1)
202 165 790 658 
Technology and development (1)
149 141 585 560 
General and administrative (1)
138 146 524 553 
Impairment and restructuring costs— 10 6 19 
Acquisition-related costs— 2 1 4 
Total operating expenses489 464 1,906 1,794 
Loss from operations
(69)(105)(197)(270)
Gain (loss) on extinguishment of debt— 1 (1)1 
Other income, net26 43 127 151 
Interest expense(8)(9)(36)(36)
Loss before income taxes(51)(70)(107)(154)
Income tax expense(1)(3)(5)(4)
Net loss$(52)$(73)$(112)$(158)
Net loss per share - basic and diluted$(0.22)$(0.32)$(0.48)$(0.68)
Weighted-average shares outstanding - basic and diluted236,329 232,972 234,077 233,575 
(1) Includes share-based compensation expense as follows:
Cost of revenue$3 $4 $14 $16 
Sales and marketing20 17 77 70 
Technology and development41 43 165 166 
General and administrative55 45 192 199 
Total share-based compensation$119 $109 $448 $451 
Adjusted EBITDA (2)$112 $69 $498 $391 
(2) Adjusted EBITDA is a non-GAAP financial measure; it is not calculated or presented in accordance with U.S. generally accepted accounting principles, or GAAP. See Exhibit 99.1 for more information regarding our presentation of Adjusted EBITDA and for a reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP financial measure, for each of the periods presented.


ZILLOW GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions, unaudited)
 Year Ended December 31,
 20242023
Operating activities
Net loss$(112)$(158)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization240 187 
Share-based compensation448 451 
Amortization of right of use assets10 35 
Amortization of contract cost assets19 21 
Amortization of debt issuance costs4 5 
Loss (gain) on extinguishment of debt1 (1)
Impairment costs
6 16 
Accretion of bond discount(27)(35)
Other adjustments to reconcile net loss to net cash provided by operating activities14 (2)
Changes in operating assets and liabilities:
Accounts receivable(8)(24)
Mortgage loans held for sale(59)(59)
Prepaid expenses and other assets(74)(17)
Contract cost assets(21)(21)
Lease liabilities(35)(30)
Accounts payable2 6 
Accrued expenses and other current liabilities— (18)
Accrued compensation and benefits10 (1)
Deferred revenue8 1 
Other long-term liabilities2 (2)
Net cash provided by operating activities428 354 
Investing activities
Proceeds from maturities of investments1,042 1,287 
Proceeds from sales of investments237 — 
Purchases of investments(706)(664)
Purchases of property and equipment(143)(135)
Purchases of intangible assets(28)(30)
Cash paid for acquisitions, net(7)(433)
Net cash provided by investing activities395 25 
Financing activities
Net borrowings on warehouse line of credit and repurchase agreements52 56 
Repurchases of Class A common stock and Class C capital stock(301)(424)
Settlement of long-term debt(1,196)(56)
Proceeds from exercise of stock options212 72 
Net cash used in financing activities(1,233)(352)
Net increase (decrease) in cash, cash equivalents and restricted cash during period(410)27 
Cash, cash equivalents and restricted cash at beginning of period1,495 1,468 
Cash, cash equivalents and restricted cash at end of period$1,085 $1,495 
Supplemental disclosures of cash flow information
Cash paid for interest$35 $28 
Cash paid for taxes6 6 
Noncash transactions:
Write-off of fully depreciated property and equipment$85 $63 
Capitalized share-based compensation72 73 
Write-off of fully amortized intangible assets24 5 
Initial fair value of contingent consideration recognized in connection with an acquisition— 81 
Value of Class C capital stock issued in connection with an acquisition— 20 


Non-GAAP Net Income per Share
Our presentation of non-GAAP net income per share excludes the impact of the results of share-based compensation, impairment and restructuring costs, acquisition-related costs, loss (gain) on extinguishment of debt and income taxes. This measure is not a key metric used by our management or board of directors to measure operating performance or otherwise manage the business. However, we provide non-GAAP net income per share as supplemental information to investors, as we believe the exclusion of the results of share-based compensation, impairment and restructuring costs, acquisition-related costs, loss (gain) on extinguishment of debt and income taxes facilitates investors’ operating performance comparisons on a period-to-period basis. You should not consider non-GAAP net income per share in isolation or as a substitute for analysis of our results as reported under GAAP.

The following table sets forth a reconciliation of non-GAAP net income, adjusted, to net loss, as reported on a GAAP basis, and the calculation of non-GAAP net income per share - basic and diluted, for each of the periods presented (in millions, except share data, which are presented in thousands, and per share data, unaudited):
Three Months Ended
December 31,		Year Ended
December 31,
 2024202320242023
Net loss, as reported
$(52)$(73)$(112)$(158)
Share-based compensation119 109 448 451 
Impairment and restructuring costs
— 10 6 19 
Acquisition-related costs
— 2 1 4 
Loss (gain) on extinguishment of debt
— (1)1 (1)
Income taxes1 3 5 4 
Net income, adjusted$68 $50 $349 $319 
Non-GAAP net income per share:
Basic$0.29 $0.21 $1.49 $1.37 
Diluted$0.27 $0.20 $1.38 $1.26 
Weighted-average shares outstanding:
Basic236,329 232,972 234,077 233,575 
Diluted259,488 261,727 261,299 263,179 
Diluted non-GAAP net income per share for the periods presented is calculated using diluted weighted-average shares outstanding, which includes potential shares of Class C capital stock for the periods in which their effect would have been dilutive. The potential shares of Class C capital stock were excluded from the calculation of non-GAAP net income per share for certain periods presented if their effect would have been antidilutive. The following table reconciles the denominators used in the basic and diluted non-GAAP net income per share calculations (in thousands, unaudited):
Three Months Ended
December 31,		Year Ended
December 31,
 2024202320242023
Denominator for basic calculation236,329 232,972 234,077 233,575 
Effect of dilutive securities:
     Option awards8,933 1,493 4,206 1,776 
     Unvested restricted stock units4,382 1,816 2,669 2,382 
Convertible senior notes due in 2024 and 20269,844 25,446 20,347 25,446 
          Denominator for dilutive calculation259,488 261,727 261,299 263,179 




Key Metrics
The following table presents our visits and average monthly unique users for the periods presented (in millions, except percentages), recast for prior periods, as described in our Form 10-K for the fiscal year ended December 31, 2024:
 Three Months Ended
December 31,		2023 to 2024
% Change		Year Ended
December 31,		2023 to 2024
% Change
 2024202320242023
Visits (1)
2,057 1,988 3%9,3088,9834%
Average monthly unique users (2)
204 199 3%221 220 —%
(1) Visits includes groups of interactions by users with the Zillow, Trulia and StreetEasy mobile apps and websites. Zillow and StreetEasy measure visits with an internal measurement tool and Trulia measures visits with Adobe Analytics.
(2) Zillow, StreetEasy and HotPads measure unique users with an internal measurement tool and Trulia measures unique users with Adobe Analytics.
The following table presents our For Sale revenue per Total Transaction Value (“TTV”) for the periods presented:
Three Months Ended
December 31,		2023 to 2024
% Change		Year Ended
December 31,		2023 to 2024
% Change
2024202320242023
For Sale revenue (in millions)$428 $371 15%$1,739 $1,548 12%
Total transaction value (in trillions) (1)
$0.4 $0.4 15%$1.7 $1.6 6%
For Sale revenue per total transaction value (in basis points)10.79.315%10.19.65%
(1) TTV is calculated as the number of existing residential homes sold during the relevant period multiplied by the average sales price of existing residential homes sold during the same period according to residential real estate data collected and estimated by Zillow Group, as published monthly on our site. Estimate for three months and year ended December 31, 2024 is as of January 2025.
The following table presents loan origination volume by purpose and in total for Zillow Home Loans for the periods presented (in millions, except percentages):
Three Months Ended
December 31,		2023 to 2024
% Change		Year Ended
December 31,		2023 to 2024
% Change
2024202320242023
Purchase loan origination volume$923 $487 90%$3,092 $1,534 102%
Refinance loan origination volume13 4 225%27 16 69%
Total loan origination volume$936 $491 91%$3,119 $1,550 101%