Why Zillow stock soared today

Shares of Zillow (NASDAQ: Z) (NASDAQ: ZG) was rising today after the online real estate platform delivered strong results and showed growth across multiple verticals.

The stock closed up 23.8% on the news.

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Total revenue at Zillow rose 17% to $581 million, beating the midpoint of the company’s $553 million guidance and the $554.7 million consensus.

Growth was broad-based as home sales increased 12% to $405 million as more buyers and sellers worked with Zillow agent partners. Rental income increased 24% to $123 million and mortgage income increased 63% to $39 million.

The company added new technology to improve its interface, including artificial intelligence (AI)-powered natural search functionality, and its enhanced go-to-market strategy, which offers an end-to-end experience in dozens of metro areas, is also paying off.

On the bottom line, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $127 million, well ahead of guidance. On a generally accepted accounting principles (GAAP) basis, it reported a loss of $20 million, or $0.08 per share. stock.

CEO Jeremy Wacksman called it another strong quarter, “We continue to invest in technology solutions to build the integrated transaction experience that consumers demand and deserve.

Zillow is the leading online real estate platform, and the company finally seems to be building a business model worthy of this position.

Looking ahead to the fourth quarter, it sees total revenue of $525 million to $540 million, which was in line with estimates and adjusted EBITDA of $90 million to $105 million.

Seventeen percent growth in the quarter is clearly a strong sign, as is improved EBITDA margin. If the housing market rebounds, Zillow could be set up to soar.

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