Zillow slides to loss in 3Q on higher expenses
Real estate information portal Zillow slips to 3Q loss as expenses offset higher revenue
NEWS: Zillow Inc. slid to a loss in the third quarter as the real estate website operator's advertising expenses surged, offsetting a sharp gain in revenue. The company's results trumped Wall Street expectations.
DETAILS: Zillow's total expenses jumped nearly twofold to $58.8 million, as the company spent more on advertising. Revenue also grew, driven by gains across Zillow's business segments, including mortgages, marketplace and display ads.
NUMBERS: The company posted a loss of $1.2 million, or 3 cents per share, for the three months ended on Sept. 30. That compares with net income of $2.3 million, or 7 cents per share, in the same period last year. Revenue leaped 67 percent to $53.3 million from $31.9 million.
Adjusting to exclude one-time items including share-based compensation it posted a loss of 5 cents a share.
Analysts polled by FactSet expected an adjusted loss of 8 cents per share on revenue of $51.4 million for the quarter.
STOCK: Shares of the Seattle company ended regular trading up $1.06 at $82.31. The stock added $4.99, or 6 percent, to $87.30 in extended trading.
