Q2 2024 Zillow Group Inc Earnings Call

August 7, 2024

We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Grad, you may begin.

Operator: At which time you will be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today.

Operator: At this time, you will be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Brad, you may begin.

Operator: You will be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Brad, you may begin.

Operator: at which time you will be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time.

Operator: If you have any objections, please disconnect at this time.

Operator: Brad, you may begin. Thank you.

Brad: Thank you. Good afternoon, and welcome to Zillow Group's second quarter 2024 call. Joining me today to discuss our results are Zillow Group co-founder and co-executive chairman, Rich Barton, newly appointed CEO, Jeremy Wacksman, and CFO, Jeremy Hofmann. During today's call, we will make forward-looking statements about our future performance and operating plans based on our current expectations and assumptions. These statements are subject to risks and uncertainties, and we encourage you to consider the risk factors described in our SEC filings for additional information. We undertake no obligation to update these statements as a result of new information or future events, except as required by law.

Operator: Good afternoon and welcome to Zillow Group's second quarter of 2024 call.

Operator: Brad, you may begin. Thank you.

Grad: Thank you. Good afternoon and welcome to Zillow Group's second quarter 2024 call. Joining me today to discuss our results are Zillow Group's co-founder and co-executive chairman, Rich Barton, newly appointed CEO , Jeremy Wacksman, and CFO , Jeremy Hofmann.

Operator: Joining me today to discuss our results are Zillow Group's co-founder and co-executive chairman, Rich Barton, newly appointed CEO, Jeremy Wacksman, and CFO, Jeremy Hofmann. During today's call, we will make forward-looking statements about our future performance and operating plans based on our current expectations and assumptions. These statements are subject to risks and uncertainties, and we encourage you to consider the risk factors described in our SEC filings for additional information. We undertake no obligation to update these statements as a result of new information or future events, except as required by law. This call is being broadcast on the Internet and is accessible on our Investor Relations website.

Brad: Good afternoon and welcome to Zillow Group's second quarter of 2024 call. Joining me today to discuss our results are Zillow Group's co-founder and co-executive chairman Rich Barton, newly appointed CEO Jeremy Wacksman and CFO Jeremy Hofmann. During today's call, we will make forward-looking statements about our future performance and operating plans based on our current expectations and assumptions. These statements are subject to risks and uncertainties and we encourage you to consider the risk factors described in our SEC filings for additional information.

Speaker Change: During today's call, we will make forward-looking statements about our future performance and operating plans based on our current expectations and assumptions.

These statements are subject to risks and uncertainties, and we encourage you to consider the risk factors described in our SEC filings for additional information.

We undertake no obligation to update these statements as a result of new information or future events, except as required by law. This call is being broadcast on the Internet and is accessible on our Investor Relations website.

Brad: We undertake no obligation to update these statements as a result of new information or future events, except as required by law. This call is being broadcast on the internet and is accessible on our investor relations website. A recording of the call will be available later today. During the call, we will discuss GAAP and non-GAAP measures, including adjusted EBITDA, which we refer to as EBITDA. We encourage you to read our shareholder letter and earnings release, which can be found on our investor relations website as they contain important information about our GAAP and non-GAAP results, including reconciliation of historical non-GAAP financial measures.

Brad: This call is being broadcast on the Internet and is accessible on our Investor Relations website. A recording of the call will be available later today. During the call, we will discuss GAAP and non-GAAP measures, including adjusted EBITDA, which we refer to as EBITDA. We encourage you to read our shareholder letter and earnings release, which can be found on our investor relations website, as they contain important information about our GAAP and non-GAAP results, including reconciliations of historical non-GAAP financial measures. We will now open the call for remarks followed by live Q&A. With that, I will turn the call over to Rich.

Operator: A recording of the call will be available later today. During the call, we will discuss gap and non-gap measures, including adjusted EBITDA, which we refer to as EBITDA. We encourage you to read our shareholder letter and earnings release, which can be found on our investor relations website, as they contain important information about our GAAP and non-GAAP results, including reconciliation of historical non-GAAP financial measures.

A recording of the call will be available later today. During the call, we will discuss GAP and non- GAAP measures , including adjusted EBITDA, which we refer to as EBITDA.

We encourage you to read our shareholder letter and earnings release, which can be found on our investor relations website as they contain important information about our GAAP and non-GAAP results, including reconciliations of historical non-GAAP financial measures.

Operator: We will now open the call with remarks, followed by live Q&A.

Richard Barton: With that, I will turn the call over to Rich. Thanks, Brad. Good afternoon and good evening to everyone dialing in to hear our second quarter 2024 results. We delivered another strong quarter in an ongoing, challenging real estate macro environment, exceeding our outlook for revenue and EBITDA as we continue to successfully execute on our growth strategy.

We will now open the call for the remarks followed by live Q&A. With that, I will turn the call over to Rich.

Brad: We will now open the call with the remarks followed by live Q&A.

Rich Barton: Thanks, Brad. Good afternoon and good evening to everyone dialing in to hear our second quarter 2024 results. We delivered another strong quarter in an ongoing challenging real estate macro environment exceeding our outlook for revenue and EBITDA as we continue to successfully execute on our growth strategy. Today, we also announced Jeremy Waxman has been promoted to Chief Executive Officer of Zillow Group, and I will serve as Co-Exec Chair of the Board of Directors alongside my co-founder, Lloyd Frank.

Rich Barton: With that, I will turn the call over to Rich. Thanks, Brad. Good afternoon and good evening to everyone dialing in to hear our second quarter 2024 results. We delivered another strong quarter in an ongoing challenging real estate macro environment, exceeding our outlook for revenue and EBITDA as we continue to successfully execute on our growth strategy.

Rich: Thanks, Brad. Good afternoon and good evening to everyone dialing in to hear our second quarter 2024 results.

Rich: We delivered another strong quarter in an ongoing, challenging real estate macro environment, exceeding our outlook for revenue and EBITDA as we continue to successfully execute on our growth strategy.

Richard Barton: Today, we also announced Jeremy Waxman has been promoted to Chief Executive Officer of Zulu Group, and I will serve as co-exec chair of the Board of Directors alongside my co-founder, Lloyd Frank. I have been CEO and or chairman since the day Lloyd and I seed-funded the company in 2004 and will remain engaged. My role, however, will shift to supporting and counseling Jeremy Waxman and the leadership team rather than daily operational leadership.

Rich: Today, we also announced Jeremy Wacksman has been promoted to Chief Executive Officer of Zillow Group, and I will serve as Co-Exec Chair of the Board of Directors alongside my co-founder, Lloyd Frank.

Rich Barton: Today, we also announced Jeremy Waxman has been promoted to Chief Executive Officer of Zilli Group and I will serve as co-exec chair of the Board of Directors alongside my co-founder, Lloyd Frank. I have been CEO and or chairman since the day Lloyd and I seed funded the company in 2004 and will remain engaged. My role, however, will shift to supporting and counseling Jeremy Waxman and the leadership team, rather than daily operational leadership.

Rich Barton: I have been CEO and or chairman since the day Lloyd and I seed funded the company in 2004 and will remain engaged. However, my role, however, will shift to supporting and counseling Jeremy Wacksman and the leadership team rather than daily operational leadership.

Rich: I have been CEO and or chairman since the day Lloyd and I seed funded the company in 2004 and will remain engaged.

Rich: My role, however, will shift to supporting and counseling Jeremy Wacksman and the leadership team, rather than daily operational leadership.

Richard Barton: Before talking about Jeremy and the team, let me talk about the state of the company. The short version is that Zulu business is in great shape financially, strategically, operationally, and organizationally. We are executing well and are consistently outperforming the broader residential real estate industry as we methodically ship great software and services to digitize and integrate on buying, selling, financing, and renting, empowering consumers and partners alike. We have done this inside the Zulu brand at Housing Super App. The integrated consumer and partner experience we are rolling out in markets across the country, and we continue to increase the breadth of our market coverage and the depth of transaction penetration within those markets.

Rich Barton: Before talking about Jeremy and the team, let me talk about the state of the company. The short version is that Zillow's business is in great shape financially, strategically, operationally, and organizationally. We are executing well and are consistently outperforming the broader residential real estate industry as we methodically ship great software and services to digitize and integrate home buying, selling, financing, and renting, empowering consumers and partners alike. We have done this inside the Zillow-branded Housing Super App.

Before talking about Jeremy and the team, let me talk about the state of the company.

Rich Barton: Before talking about Jeremy and the team, let me talk about the state of the company. The short version is that Zilli business is in great shape, financially, strategically, operationally, and organizationally. We are executing well and are consistently outperforming the broader residential real estate industry as we methodically ship great software and services to digitize and integrate on buying, selling, financing, and renting and powering consumers and partners alike. We have done this inside the Zilli brand at Housing Super App.

Grad: The short version is that Zillow business is in great shape financially, strategically, operationally, and organizationally.

Rich: We are executing well and are consistently outperforming the broader residential real estate industry as we methodically ship great software and services to digitize and integrate home buying, selling, financing, and renting, empowering consumers and partners alike.

Rich Barton: The Integrated Consumer and Partner Experience we are rolling out in markets across the country, and we continue to increase the breadth of our market coverage and the depth of transaction penetration within those markets. I am pleased with where we are in this effort and the opportunity we see for many years of growth ahead. We have also increasingly leveraged our brand trust and massive audience to diversify our revenue stream. We've leaned hard into the obvious and adjacent rental and purchase mortgage opportunities, both of which are now exciting growth businesses for Zillow. Rentals now account for one-fifth of total company revenue, and Zillow Home Loans' purchase mortgage origination volume grew more than 100% year-over-year again this quarter. Rentals has plenty of room to run.

Rich: We have done this inside the Zillow-branded Housing Super App.

The integrated consumer and partner experience we are rolling out in markets across the country.

Rich Barton: The integrated consumer and partner experience we are rolling out in markets across the country and we continue to increase the breadth of our market coverage and the depth of transaction penetration within those markets. I am pleased with where we are in this effort and the opportunity we see for many years of growth ahead. We have also increasingly leveraged our brand trust and massive audience to diversify our revenue structure. We've leaned hard into the obvious and adjacent rentals and purchase mortgage opportunities, both of which are now exciting growth businesses for Zillow.

Rich Barton: And we continue to increase the breadth of our market coverage and the depth of transaction penetration within those markets. I am pleased with where we are in this effort and the opportunity we see for many years of growth ahead. We have also increasingly leveraged our brand trust and massive audience to diversify our revenue stream. We've leaned hard into the obvious and adjacent rental and purchase mortgage opportunities, both of which are now exciting growth businesses for Zillow. Rentals now account for one-fifth of total company revenue, and Zillow Home Loans' purchase mortgage origination volume grew more than 100% year-over-year again this quarter, so rental housing has plenty of room to run.

Grad: And we continue to increase the breadth of our market coverage and the depth of transaction penetration within those markets. I am pleased with where we are in this effort and the opportunity we see for many years of growth ahead.

Richard Barton: I am pleased with where we are in this effort and the opportunity we see for many years of growth ahead. We have also increasingly leveraged our brand trust and massive audience to diversify our revenue structure. We've leaned hard into the obvious and adjacent rentals and purchase mortgage opportunities, both of which are now exciting growth businesses for Zillow. Rentals now account for one fifth of total company revenue, and Zillow home loans, purchased mortgage origination volume grew more than 100% year over year again this quarter. Additionally, we have built and acquired then integrated a quietly exciting set of products and services that we offer to the broader industry, brokers, analysis, and the whole of the professional agent community.

Rich: We have also increasingly leveraged our brand trust and massive audience to diversify our revenue streams.

Rich: We've leaned hard into the obvious and adjacent rentals and purchase mortgage opportunities, both of which are now exciting growth businesses for Zillow.

Rich: Rentals now account for one-fifth of total company revenue, and Zillow Home Loans' purchase mortgage origination volume grew more than 100 percent year-over-year again this quarter.

Rich Barton: Rentals now account for one fifth of total company revenue and Zillow home loans, purchase mortgage origination volume grew more than 100% year over year again this quarter. Additionally, we have built and acquired then integrated a quietly exciting set of products and services that we offer to the broader industry, brokers, analysis and the whole of the professional agent community. We are investing in broad industry wide adoption of our suite of increasingly integrated digital content and workflow tools, including incredible products like our showing time home touring solution, follow up boss agent CRM, dot loop forms and document management and showcase 3D interactive listings.

Rich Barton: And the mortgage opportunity for us is wide open and large. Additionally, we have built and acquired, then integrated, a quietly exciting set of products and services that we offer to the broader industry, brokers, MLSs, and the whole of the professional agent community. We are investing in broad industry-wide adoption of our suite of increasingly integrated digital content and workflow tools, including incredible products like our Showing Time Home Touring Solution, Follow-Up Boss Agent CRM, Dot Loop Forms and Document Management, and Showcase 3D Interactive Listening. Our conviction is that a rising digital tide lifts all boats.

Rich Barton: And the mortgage opportunity for us is wide open and large. Additionally, we have built and acquired, then integrated, a quietly exciting set of products and services that we offer to the broader industry, brokers, MLSs, and the whole of the professional agent community. We are investing in broad industry-wide adoption of our suite of increasingly integrated digital content and workflow tools, including incredible products like our Showing Time Home Touring Solution, Follow-Up Boss Agent CRM, Dot Loop Forms and Document Management, and Showcase 3D Interactive Listing. Our conviction is that a rising digital tide lifts all boats.

Rich: rentals has plenty of room to run and the mortgageis opportunity for us is wide open and large

Rich: Additionally, we have built and acquired, then integrated, a quietly exciting set of products and services that we offer to the broader industry, brokers, MLSs, and the whole of the professional agent community.

Richard Barton: We are investing in broad industry-wide adoption of our suite of increasingly integrated digital content and workflow tools, including incredible products like our ShowingTime home touring solution, Follow Up Boss agent CRM, Dotloop forms and document management, and Showcase 3D interactive listings. Our conviction is that a rising digital tide lifts all boats. A more digital industry using our software is better for consumers, better for our partners, and ultimately better for Zillow Group. We have unique ambition here and unique talent and resources to conjure it into reality. And through all of this innovation and expansion, the leadership team has maintained real cost discipline that is delivering improvements in EBITDA margins.

Rich: We are investing in broad industry-wide adoption of our suite of increasingly integrated digital content and workflow tools.

Rich: including incredible products like our showing time home touring solution, follow-up boss agent CRM, dot loop forums and document management, and showcase 3D interactive listings.

Rich: Our conviction is that a rising digital tide lifts all boats.

Rich Barton: Our conviction is that a rising digital tide lifts all boats. A more digital industry using our software is better for consumers, better for our partners and ultimately better for Zillow Group. We have unique ambition here and unique talent and resources to conjure it into reality. And through all of this innovation and expansion, the leadership team has maintained real cost discipline that is delivering improvements in EBITDA margins. Executing well against big, complex, interconnected opportunities requires amazing talent who have a clear strategy, high accountability and high trust in one another.

Rich Barton: A more digital industry using our software is better for consumers, better for our partners, and ultimately better for Zillow Group. We have unique ambition here and unique talent and resources to bring it into reality. And through all of this innovation and expansion, the leadership team has maintained real cost discipline that is delivering improvements in EBITDA margins. Executing well against big, complex, interconnected opportunities requires amazing talent who have a clear strategy, high accountability, and high trust in one another.

Rich: a more digital industry using our software is better for consumers better are for our partners and ultimately better forazil group

Rich: We have unique ambition here and unique talent and resources to conjure it into reality.

Speaker Change: And through all of this innovation and expansion, the leadership team has maintained real cost discipline that is delivering improvements in EBITDA margins.

Richard Barton: Executing well against big, complex, interconnected opportunities requires amazing talent who have a clear strategy, high accountability, and high trust in one another. Which leads me to Jeremy Waxman, our new CEO and the person we organized most of the company around three years ago when we promoted him to COO. He has been supported by an exceptional team and has successfully positioned the company to go after these multiple large opportunities, as I have laid out. Jeremy is a familiar voice to you all on this call, but allow me to share some of his history. He has an engineering degree, which is not required here at Zillow, but it's nice.

Rich: Executing well against big, complex, interconnected opportunities requires amazing talent who have a clear strategy, high accountability, and high trust in one another.

Rich Barton: Which leads me to Jeremy Waxman, our new CEO, and the person we organized most of the company around three years ago when we promoted him to COO. He has been supported by an exceptional team and has successfully positioned the company to go after these multiple large opportunities, as I have laid out. Jeremy is a familiar voice to you all on this call, but allow me to share some of his history. He has an engineering degree, which is not required here at Zillow, but it's nice. He also got his MBA many years ago, which the engineers don't hold against.

Speaker Change: Which leads me to Jeremy Wacksman, our new CEO , and the person we organized most of the company around three years ago when we promoted him to COO.

Rich Barton: Which leads me to Jeremy Waxman, our new CEO and the person we organized most of the company around three years ago when we promoted him to COO. He has been supported by an exceptional team and has successfully positioned the company to go after these multiple large opportunities as I have laid out.

Speaker Change: He has been supported by an exceptional team and has successfully positioned the company to go after these multiple large opportunities as I have laid out.

Speaker Change: Jeremy is a familiar voice to you all on this call, but allow me to share some of his history.

Rich Barton: Jeremy is a familiar voice to you all on this call, but allow me to share some of his history. He has an engineering degree, which is not required here at Zillow, but it's nice. He also got his MBA many years ago, which the engineers don't hold against him. We found Jeremy at Microsoft in 2009 when Zillow was very small and recruited him into a product and marketing role. Throughout his time at Zillow, Jeremy has worn many hats.

Speaker Change: He has an engineering degree, which is not required here at Zillow, but it's nice.

Richard Barton: He also got his MBA many years ago, which the engineers don't hold against him. We found Jeremy at Microsoft in 2009 when Zillow was very small and recruited him into a product and marketing role. Throughout his time at Zillow, Jeremy has worn many hats. His responsibilities have steadily gained scope, spanning product, marketing, and operations. He has been a key strategic partner throughout his tenure, advising Lloyd and me on major strategy and product decisions. Early on, he helped pioneer mobile real estate shopping with the launch of the Zillow app. Later, as CMO, he was critical to leading Zillow's consumer marketing strategy, establishing a high bar and a branding framework for what has become a rare, loved, and trusted household brand.

Speaker Change: He also got his MBA many years ago, which the engineers don't hold against him.

Rich Barton: We found Jeremy at Microsoft in 2009 when Zillow was very small and recruited him into a product and marketing role. Throughout his time at Zillow, Jeremy has worn many hats. His responsibilities have steadily gained scope spanning product, marketing, and operations. He has been a key strategic partner throughout his tenure, advising Lloyd and me on major strategy and product decisions.

Speaker Change: We found Jeremy at Microsoft in 2009 when Zillow was very small and recruited him into a product and marketing role.

Rich Barton: His responsibilities have steadily gained scope, spanning product, marketing and operations. He has been a key strategic partner throughout his tenure, advising Lloyd and me on major strategy and product decisions. Early on, he helped pioneer mobile real estate shopping with the launch of the Zillow app. Later as CMO, he was critical to leading Zillow's consumer marketing strategy, establishing a high bar and a branding framework for what has become a rare, loved and trusted household brand.

Rich Barton: Throughout his time at Zillow, Jeremy has worn many hats. He has been a key strategic partner throughout his tenure, advising Lloyd and me on major strategy and product decisions. Early on, he helped pioneer mobile real estate shopping with the launch of the Zillow app. Later, as CMO, he was critical to leading Zillow's consumer marketing strategy, establishing a high bar and a branding framework for what has become a rare, loved, and trusted household brand.

Jeremy: throughout his time at zilo germy is worned many hats

Speaker Change: his responsibilities have steadily gained scope spanning product marketing and operations

Speaker Change: he has been a key strategic partner throughout his tenure advising loydin me on major strategy and product decisions

Rich Barton: Early on, he helped pioneer mobile real estate shopping with the launch of the Zillow app. Later, as CMO, he was critical to leading Zillow's consumer marketing strategy, establishing a high bar and a branding framework for what has become a rare loved and trusted household brand. His tenure as COO for the past three years, with all product, engineering, design, marketing, sales, IT, and go-to-market business operations reporting to him, has been a time of particularly impressive innovation for Zillow, which has put the company back on an accelerating growth path following the pandemic dislocation from which the industry has yet to recover.

Speaker Change: early on he helped pioneer mobile real estate shopping with the launch of the zo app

Speaker Change: Later as CMO, he was critical to leading Zillow's consumer marketing strategy, establishing a high bar and a branding framework for what has become a rare, loved, and trusted household brand.

Richard Barton: His tenure as COO the past three years, with all product engineering, design, marketing, sales, IT, and go-to-market business operations reporting to him, has been a time of particularly impressive innovation for Zillow, which has put the company back on an accelerating growth path following pandemic dislocation from which the industry has yet to recover. Jeremy operationalized Zillow's housing super-out strategy while maintaining strong cost discipline, diversifying our revenue base, and growing the rentals and mortgages businesses. He successfully championed the Follow Up Boss and ShowingTime acquisitions, helping us deliver on our goal to provide agent partners and the broader industry with the best software solutions to power their businesses.

Rich Barton: His tenure as COO the past three years, with all product, engineering, design, marketing, sales, IT, and go-to-market business operations reporting to him, has been a time of particularly impressive innovation for Zillow, which has put the company back on an accelerating growth path following the pandemic dislocation from which the industry has yet to recover. Jeremy operationalized Zillow's housing super out strategy while maintaining strong cost discipline. He successfully championed the follow-up boss and showing time acquisitions, helping us deliver on our goal to provide agent partners and the broader industry with the best software solutions to power their businesses.

Speaker Change: His tenure as COO the past three years with all product, engineering, design, marketing, sales, IT, and go-to-market business operations reporting to him.

Rich Barton: His tenure as COO the past three years with all product engineering, design, marketing sales, IT and go-to-market business operations reporting to him has been a time of particularly impressive innovation for Zillow, which has put the company back on an accelerating growth path following pandemic dislocation from which the industry has yet to recover. Jeremy operationalized Zillow's housing super out strategy while maintaining strong cost discipline, diversifying our revenue base and growing the rentals and mortgages businesses.

Speaker Change: has been a time of particularly impressive innovation for Zillow, which has put the company back on an accelerating growth path following pandemic dislocation from which the industry has yet to recover.

Rich Barton: Jeremy operationalized Zillow's housing super app strategy while maintaining strong cost discipline, diversifying our revenue base, and growing the rental and mortgage business. He successfully championed follow-up acquisitions, helping us deliver on our goal to provide agent partners and the broader industry with the best software solutions to power their businesses. He also organized, elevated, and recruited talent that makes up Zillow's world-class R&D organizations and increasingly critical sales and marketing operations.

Speaker Change: Jeremy operationalized Zillow's Housing Super App strategy while maintaining strong cost discipline.

Speaker Change: diversifying our revenue base and growing the rentals and mortgages businesses.

Speaker Change: He successfully championed the follow-up boss and showing time acquisitions, helping us deliver on our goal to provide agent partners and the broader industry with the best software solutions to power their businesses.

Rich Barton: He successfully championed the follow-up boss and showing time acquisitions, helping us deliver on our goal to provide agent partners and the broader industry with the best software solutions to power their businesses. He also organized, elevated, and recruited talent that makes up Zillow's world-class R&D organizations and increasingly critical sales and marketing operations. Jeremy's products forward consumer-first leadership, operational experience, and technology orientation make him right and ready to be CEO of Zillow now.

Rich Barton: He also organized, elevated, and recruited talent that makes up Zillow's world-class R&D organizations and increasingly critical sales and marketing operations. And with that, I'll now hand the mic over to Zillow Group's new Chief Executive Officer, Jeremy Wacksman.

Speaker Change: He also organized, elevated, and recruited talent that makes up Zillow's world-class R&D organizations and increasingly critical sales and marketing operations.

Richard Barton: He also made critical sales and marketing operations. Jeremy's products forward, consumer-first leadership, operational experience, and technology orientation make him right and ready to be CEO of Zillow now. I am confident in his judgment and his leadership, and I am excited to support him as he leads Zillow's next chapter.

Rich Barton: Jeremy's product forward, consumer-first leadership, operational experience, and technology orientation make him right and ready to be CEO of Zillow now. I am confident in his judgment and his leadership, and I am excited to support him as he leads Zillow's next chapter. And with that, I'll now hand the mic over to Zillow Group's new Chief Executive Officer, Jeremy Wacksman.

Jeremy: Jeremy's product forward, consumer first leadership, operational experience, and technology orientation make him right and ready to be CEO of Zillow now.

Speaker Change: I am confident in his judgment and his leadership, and I am excited to support him as he leads Zillow's next chapter.

Rich Barton: I am confident in his judgment and his leadership and I am excited to support him as he leads Zillow's next chapter.

Jeremy Wacksman: And with that, I'll now hand the mic over to Zillow Group's new Chief Executive Officer, Jeremy Waxman. Thanks, Rich. Having spent the past 15 years at Zillow, I can honestly say taking on this role is the honor of my career. I love this company and I love this team. And I believe deeply in the digital future of real estate we're building for the benefit of buyers, sellers, renters, agents, the broader industry, and our shareholders. Zillow has a huge audience, a partner network comprising some of the best agent teams in the business, and tech and product prowess that is unmatched in residential real estate.

Speaker Change: And with that, I'll now hand the mic over to Zillow Group's new Chief Executive Officer, Jeremy Wacksman.

Jeremy Wacksman: And with that, I'll now hand the mic over to Zillow Group's new Chief Executive Officer Jeremy Waxman. Thanks Rich. Having spent the past 15 years of Zillow, I can honestly say taking on this role is the honor of my career. I love this company and I love this team. And I believe deeply in the digital future of real estate we're building for the benefit of buyers, sellers, renters, agents, the broader industry, and our shareholders.

Jeremy Wacksman: Having spent the past 15 years at Zillow, I can honestly say taking on this role is the honor of my career. I love this company, and I love this team.

Jeremy Wacksman: Thanks, Rich.

Jeremy Wacksman: Having spent the past 15 years at Zillow, I can honestly say taking on this role is the honor of my career. I love this company and I love this team, and I believe deeply in the digital future of real estate we're building for the benefit of buyers, sellers, renters, agents, the broader industry, and our shareholders.

Jeremy Wacksman: And I believe deeply in the digital future of real estate we're building for the benefit of buyers, sellers, renters, agents, the broader industry, and our shareholders. Zillow has a huge audience, a partner network comprising some of the best agent teams in the business, and tech and product prowess that is unmatched in residential real estate. With an increasingly diversified and growing business, we are primed to capitalize on the strength of the Zillow brand and capture a meaningful slice of the $30 billion accessible TAM in real estate, a slice that more closely reflects our reach in the category, and our results show we're making great headway.

Jeremy Wacksman: Zillow has a huge audience, a partner network comprising some of the best agent teams in the business, and tech and product prowess that is unmatched in residential real estate.

Jeremy Wacksman: Zillow has a huge audience, a partner network comprising some of the best agent teams in the business, and tech and product prowess that is unmatched in residential real estate. With an increasingly diversified and growing business, we are primed to capitalize on the strength of the Zillow brand and capture a meaningful slice of the $30 billion accessible Tam in real estate, a slice that more closely reflects our reach in the category. And our results show we're making great headway.

Jeremy Wacksman: With an increasingly diversified and growing business, we are primed to capitalize on the strength of the Zillow brand and capture a meaningful slice of the $30 billion accessible TAM in real estate. A slice that more closely reflects our reach in the category. And our results show we're making great headway. I'm excited to share that Zillow had another strong quarter, reporting better-than-expected revenue growth across the business. Q2 revenue was $572 million, up 13% year-over-year, which marks the eighth consecutive quarter our total revenue results have outperformed the residential real estate industry. We delivered double-digit year-over-year revenue growth and demonstrated cost discipline while continuing to invest to deliver solid EBITDA margin expansion year-over-year.

Jeremy Wacksman: a slice that more closely reflects our reach in the category. I'm excited to share that Zillow had another strong quarter, reporting better than expected revenue growth across the business. Rentals continued its strong growth with $117 million in revenue in Q2, up 29% year-over-year. Multifamily revenue is up 44% year-over-year, driven by strong growth in our multifamily property count, with 44,000 properties at the end of Q2, up from 40,000 at the end of Q1.

Jeremy Wacksman: a slice that more closely reflects our reach in the category.

Jeremy Wacksman: I'm excited to share that Zillow had another strong quarter, reporting better than expected revenue growth across the business. Q2 revenue was $572 million, up 13% year over year, which marks the eighth consecutive quarter our total revenue results have outperformed the residential real estate industry. We delivered double-digit, year-over-year revenue growth and demonstrated cost discipline while continuing to invest to deliver solid EBITDA margin expansion year-over-year. For example, Q2 residential revenue grew 8% year-over-year to $409 million.

Jeremy Wacksman: And our results show we're making great headway.

Jeremy Wacksman: I'm excited to share that Zillow had another strong quarter, reporting better than expected revenue growth across the business.

Jeremy Wacksman: I'm excited to share that Zillow had another strong quarter reporting better than expected revenue growth across the business. Q2 revenue was $572 million, up 13% year-over-year, which marks the eighth consecutive quarter our total revenue results have outperformed the residential real estate industry. We delivered double digit year-over-year revenue growth and demonstrated cost discipline while continuing to invest to deliver solid EBITDA margin expansion year-over-year. Q2 residential revenue grew 8% year-over-year to 409 million.

Jeremy Wacksman: Q2 revenue was $572 million, up 13% year-over-year, which marks the eighth consecutive quarter our total revenue results have outperformed the residential real estate industry.

Jeremy Wacksman: we delivered double-digit year-over-year revenue growth and demonstrated cost discipline while continuing to invest to deliver solid ebitda margin expansion year-over-year

Jeremy Wacksman: Q2 residential revenue grew 8% year-over-year to 409 million. Rentals continued its strong growth with 117 million revenue in Q2, up 29% year-over-year. Multifamily revenue was up 44% year-over-year, driven by strong growth in our multifamily property count, with 44,000 properties at the end of Q2, up from 40,000 at the end of Q1. We also continued to make strong progress in mortgages, with Q2 revenue of 34 million, up 42% year-over-year, and purchase mortgage origination volume growing 125% year-over-year. The successes come despite a persistently challenging mortgage rate environment, as evidenced by our estimate of total industry purchase loan origination volume being down mid single digits year by year in Q2.

Jeremy Wacksman: Q2 residential revenue grew 8% year-over-year to $409 million.

Jeremy Wacksman: Rentals continued its strong growth with $117 million in revenue in Q2, up 29% year-over-year. Multifamily revenue is up 44% year-over-year, driven by strong growth in our multifamily property count, with 44,000 properties at the end of Q2, up from 40,000 at the end of Q1. We also continue to make strong progress in mortgages, with Q2 revenue of $34 million, up 42% year-over-year, and purchase mortgage origination volume growing 125% year-over-year. These successes come despite a persistently challenging mortgage rate environment, as evidenced by our estimate of total industry purchase loan origination volume being down mid-single digits year-over-year in Q2.

Jeremy Wacksman: Rentals continued its strong growth with $117 million revenue in Q2, up 29% year-over-year.

Jeremy Wacksman: Rentals continued its strong growth with 117 million revenue in Q2 up 29% year-over-year. Multifamily revenue is up 44% year-over-year driven by strong growth in our multifamily property count with 44,000 properties at the end of Q2 up from 40,000 at the end of Q1. We also continued to make strong progress in mortgages with Q2 revenue of 34 million, up 42% year-over-year and purchase mortgage origination volume growing 125% year-over-year. The successes come despite a persistently challenging mortgage rate environment as evidenced by our estimate of total industry purchase loan origination volume being down mid single digits year by year in Q2.

Jeremy Wacksman: Multifamily revenue is up 44% year-over-year, driven by strong growth in our multifamily property count, with 44,000 properties at the end of Q2, up from 40,000 at the end of Q1.

Jeremy Wacksman: We also continue to make strong progress in mortgages, with Q2 revenue of $34 million, up 42% year-over-year, and purchase mortgage origination volume growing 125% year-over-year.

Jeremy Wacksman: These successes come despite a persistently challenging mortgage rate environment, as evidenced by our estimate of total industry purchase loan origination volume being down mid-single digits year-over-year in Q2. Another way to measure traffic and brand strength is through Comscore, which is widely viewed among internet brands as a reliable, transparent, third-party source because it aims to capture the number of unique visitors while de-duping cookies.

Jeremy Wacksman: We continue to believe our most important investments are in tech innovations that improve the customer experience, which has helped us earn and maintain our strong brand position and massive engaged audience of movers. In Q2, we reported 231 million average monthly unique users across the Zillow ecosystem of apps and sites. As you'll remember from previous calls and our February investor presentation, about 80 percent of our users come to us organically, and they're using our app three times more than anyone else in the category. Another way to measure traffic and brand strength is through Comscore, which is widely viewed among internet brands as a reliable, transparent, third-party source because it aims to capture the number of unique visitors while de-duping cookies.

Jeremy Wacksman: In Q2, we reported 231 million average monthly unique users across the Zillow ecosystem of apps and sites.

Jeremy Wacksman: As your member from previous calls and our February investor presentation, about 80% of our users come to us organically, and they're using our app three times more than anyone else in the category. Another way to measure traffic and brand strength is through Comscore, which is widely viewed among internet brands as a reliable, transparent third-party source because it aims to capture the number of unique visitors while dedoping cookies. According to Comscore, Zillow Group's apps and sites had 116 million average monthly unique visitors in Q2.

Jeremy Wacksman: Weak users across the Zillow ecosystem of apps and sites as your member from previous calls and our February investor presentation about 80% of our users come to us organically and they're using our app three times more than anyone else in the category. Another way to measure traffic and brand strength is through Comscore, which is widely viewed among internet brands as a reliable transparent third party source because it aims to capture the number of unique visitors while the dooping cookies.

Jeremy Wacksman: As you'll remember from previous calls and our February investor presentation, about 80% of our users come to us organically, and they're using our app three times more than anyone else in the category.

Jeremy Wacksman: Another way to measure traffic and brand strength is through Comscore, which is widely viewed among internet brands as a reliable, transparent, third-party source because it aims to capture the number of unique visitors while de-duping cookies.

Jeremy Wacksman: According to Comscore, Zillow Group's apps and sites had 116 million average monthly unique visitors in Q2. We're pleased with the progress we're making to transform and digitize the movie experience on behalf of buyers, sellers, renters, agents, and the broader industry. Since 2022, we've been building the digitally integrated transaction experience and testing it in our enhanced markets across the country. This year, we've been increasing our breadth of coverage across more markets and our depth of penetration in those markets, as we drive towards sustainable, profitable growth. As of the end of Q2, we're in 19 enhanced markets, expanding to 36 by the end of August, well on our way to achieving our goal of 40 by the end of 2024.

Jeremy Wacksman: According to Comscore, Zillow Group's apps and sites had 116 million average monthly unique visitors in Q2.

Jeremy Wacksman: According to Comscore, Zillow Group's apps and sites at 116 million average monthly unique visitors in Q2. We're pleased with the progress we're making to transform and digitize the movie experience on behalf of buyers, sellers, renters, agents, and the broader industry. Since 2022, we've been building the digitally integrated transaction experience and testing it in our enhanced markets across the country. Through this year, we've been increasing our breadth of coverage across more markets and our depth of penetration in those markets.

Jeremy Wacksman: We're pleased with the progress we're making to transform and digitize the movie experience on behalf of buyers, sellers, renters, agents, and the broader industry. Since 2022, we've been building the digitally integrated transaction experience and testing it in our enhanced markets across the country. Through this year, we've been increasing our breadth of coverage across more markets and our depth of penetration in those markets as we drive towards sustainable, profitable groups. As of the end of Q2, we're in 19 enhanced markets, expanding to 36 by the end of August, well on our way to achieving our goal of 40 by the end of 2024.

Jeremy Wacksman: We're pleased with the progress we're making to transform and digitize the movie experience on behalf of buyers, sellers, renters, agents, and the broader industry. Since 2022, we've been building the Digitally Integrated Transaction Experience and testing it in our enhanced markets across the country. Through this year, we've been increasing our breadth of coverage across more markets and our depth of penetration in those markets, as we drive towards sustainable, profitable growth. As of the end of Q2, we are in 19 enhanced markets, expanding to 36 by the end of August, well on our way to achieving our goal of 40 by the end of 2024.

Speaker Change: We're pleased with the progress we're making to transform and digitize the movie experience on behalf of buyers, sellers, renters, agents, and the broader industry.

Jeremy Wacksman: Since 2022, we've been building the Digitally Integrated Transaction Experience and testing it in our enhanced markets across the country.

Jeremy Wacksman: Through this year, we've been increasing our breadth of coverage across more markets and our depth of penetration in those markets as we drive towards sustainable, profitable growth.

Jeremy Wacksman: As we drive towards sustainable profitable growth, as of the end of Q2 were in 19 enhanced markets, expanding to 36 by the end of August, well on our way to achieving our goal of 40 by the end of 2024. As we've said, Zillow is the housing super app and we are continually adding updates and improvements to it guided by our five for sale growth pillars, touring, financing, seller solutions, enhancing our partner network.

Jeremy Wacksman: As of the end of Q2, we're in 19 enhanced markets, expanding to 36 by the end of August, well on our way to achieving our goal of 40 by the end of 2024.

Jeremy Wacksman: As we've said, Zillow is the housing super app, and we are continually adding updates and improvements to it, guided by our five for sale growth pillars: touring, financing, seller solutions, enhancing our partner network, and integrating our services. Our for sale growth pillars mark the pathway to meeting our goals to increase customer transaction share to 6% by the end of 2025. We are also focused on building up rentals, which currently represents 20% of our revenue and is growing rapidly. First up is touring. Integrating our touring solutions into our buyer flow is meaningfully improving our ability to identify high intent customers and connect them with our premier agent partners.

Jeremy Wacksman: As we've said, Zillow is the housing super app, and we are continually adding updates and improvements to it, guided by our five for sale growth pillars, touring, financing, seller solutions, enhancing our partner network, and integrating our services. Our four for sale growth pillars mark the pathway to meeting our goals to increase our customer transaction share to 6% by the end of 2025. We are also focused on building up rental properties, which currently represents 20% of our revenue and is growing rapidly. First up is Turing.

Jeremy Wacksman: As we've said, Zillow is the housing super app, and we are continually adding updates and improvements to it, guided by our five for sale growth pillars: touring, financing, seller solutions, enhancing our partner network, and integrating our services. Our four for sale growth pillars mark the pathway to meeting our goals to increase customer transaction share to 6% by the end of 2025. We are also focused on building up rental properties, which currently represents 20% of our revenue and is growing rapidly. First up is Turing.

Jeremy Wacksman: As we've said, Zillow is the housing super app, and we are continually adding updates and improvements to it, guided by our five for sale growth pillars. Touring, financing, seller solutions, enhancing our partner network, and integrating our services.

Jeremy Wacksman: And integrating our services. Our for sale growth pillars mark the pathway to meeting our goals to increase customer transaction share to 6% by the end of 2025. We are also focused on building up rentals which currently represents 20% of our revenue and is growing rapidly. First up is touring. Integrating our touring solutions into our buyer flow is meaningfully improving our ability to identify high intent customers and connect them with our premier agent partners.

Jeremy Wacksman: our foreressale growth pillars markedk the pathway to meeting our goals to increase customer transaction share to six percent by the end of two thousand and twenty-five

Jeremy Wacksman: We are also focused on building up rentals, which currently represents 20% of our revenue and is growing rapidly.

Jeremy Wacksman: Integrating our touring solutions into our buyer flow is meaningfully improving our ability to identify high-interest customers and connect them with our premier agent partner. We've seen that those Turing connections convert at three times the rate of other actions on Zillow. The early indicators of success we saw on our pilot gave us the confidence to integrate it into Zillow's touring experience. And just last week, the agreement became part of the Request a Tour flow on Zillow for nearly 80 percent of our tour connections.

Jeremy Wacksman: Integrating our touring solutions into our buyer flow is meaningfully improving our ability to identify high-interest customers and connect them with our premier agent partner. We've seen that those Turing connections convert at three times the rate of other actions on Zillow. Last month, we nearly doubled the number of markets with real-time touring, and we're seeing positive early results from being better able to connect higher-intent customers with our Premier Agent partners. In fact, we have already achieved our end-of-year target of approximately 20% of our connections coming from real-time touring, as well as improved transaction conversion.

Speaker Change: First up is Turing.

Speaker Change: Integrating our touring solutions into our buyer flow is meaningfully improving our ability to identify high-intent customers and connect them with our premier agent partners.

Jeremy Wacksman: We've seen that those touring connections convert at three times the rate of other actions on Zillow. Last month, we nearly doubled the number of markets with real-time touring, and we're seeing positive early results from being better able to connect higher intent customers with our premier agent partners. In fact, we have already achieved our end-of-year target of approximately 20% of our connections coming from real-time touring, as well as improved transaction conversion. As one of the many improvements we're making to this part of the customer journey as a leader in touring software, last quarter we introduced a touring agreement that instills more transparency into the process.

Speaker Change: We've seen that those Turing connections convert at three times the rate of other actions on Zillow.

Speaker Change: Last month, we nearly doubled the number of markets with real-time touring, and we're seeing positive early results from being better able to connect higher-intent customers with our Premier Agent partners.

Speaker Change: In fact, we have already achieved our end-of-year target of approximately 20% of our connections coming from real-time TORI, as well as improved transaction conversion.

Jeremy Wacksman: As one of the many improvements we're making to this part of the customer journey as a leader in touring software, last quarter, we introduced a touring agreement that instills more transparency into the process. The early indicators of success we saw in our pilot gave us the confidence to integrate it into Zillow's touring experience. And just last week, the agreement became part of the Request a Tour flow on Zillow for nearly 80% of our tour connections.

Speaker Change: As one of the many improvements we're making to this part of the customer journey as a leader in touring software, last quarter we introduced a touring agreement that instills more transparency into the process.

Jeremy Wacksman: As one of the many improvements we're making to this part of the customer journey as a leader and touring software last quarter, we introduced a touring agreement that instills more transparency into the process. The early indicators of success we saw on our pilot gave us the confidence to integrate it into Zillow's touring experience. And just last week, the agreement became part of the request a tour flow on Zillow for nearly 80% of our tour connect.

Jeremy Wacksman: The early indicators of success we saw on our pilot gave us the confidence to integrate it into Zillow's touring experience, and just last week the agreement became part of the request a tour flow on Zillow for nearly 80% of our tour connects. We plan to roll it out to remaining tour connections in the coming months. Facilitating consumer-friendly agreements earlier in the funnel is not only an opportunity for us to help educate consumers and aid to navigate the industry rule changes, but it also helps us identify higher intent customers, send more qualified connections to our premier agent partners, and drive conversion rates.

Speaker Change: The early indicators of success we saw in our pilot gave us the confidence to integrate it into Zillow's touring experience and just last week the agreement became part of the request a tour flow on Zillow for nearly 80% of our tour connections.

Jeremy Wacksman: We plan to roll it out to remaining tour connections in the coming months. Facilitating consumer-friendly agreements earlier in the funnel is not only an opportunity for us to help educate consumers and agents about the industry rule changes, but it also helps us identify higher intent customers, send more qualified connections to our premier agent partners, and drive conversion rates. I'll now move on to finance.

Jeremy Wacksman: Facilitating consumer-friendly agreements earlier in the funnel is not only an opportunity for us to help educate consumers and agents about the industry rule changes, but it also helps us identify higher intent customers, send more qualified connections to our premier agent partners, and drive conversion rates. We have been working to integrate Zillow Home Loans more seamlessly with our Premier Agent Partner Network and throughout the customer journey. Overall customer adoption rates in our nine most mature enhanced markets have reached the mid-teens.

Speaker Change: We plan to roll it out to remaining TOR connections in the coming months.

Jeremy Wacksman: We plan to roll it out to remain in tour connections in the coming months. Facilitating consumer friendly agreements earlier in the funnel is not only an opportunity for us to help educate consumers and aid to navigate the industry rule changes, but it also helps us identify higher intent customers, send more qualified connections to our premier agent partners and drive conversion rates. We plan to do this seamlessly with our premier agent partner network and throughout the customer journey.

Speaker Change: Facilitating consumer-friendly agreements earlier in the funnel is not only an opportunity for us to help educate consumers and agents navigate the industry rule changes, but it also helps us identify higher-intent customers, send more qualified connections to our premier agent partners, and drive conversion rates.

Jeremy Wacksman: I'll now move on to financing. We have been working to integrate Zillow home loans more seamlessly with our premier agent partner network and throughout the customer journey. Overall, customer adoption rates in our nine most mature enhanced markets have reached the mid teens, and nearly 60% of our Zillow home loan originations are represented by a premier agent partner. To further capture buyer's attention, we've also launched innovative tools through Zillow Home Loans to help them more accurately understand what they can afford. In Q2, we introduced a feature called Buy Ability, which gives buyers a personalized real-time estimate of the home price and monthly payment that fit within their budget, powered by mortgage rates through Zillow Home Loans and available to check regularly in the Zillow app.

Jeremy Wacksman: We have been working to integrate Zillow Home Loans more seamlessly with our Premier Agent Partner Network and throughout the customer journey. Overall customer adoption rates in our nine most mature enhanced markets have reached the mid-teens, and nearly 60% of our Zillow home loan originations are represented by a premier agent partner. To further capture buyers' attention, we've also launched innovative tools through Zillow Home Loans to help them more accurately understand what they can afford.

Speaker Change: I'll now move on to financing.

Speaker Change: We have been working to integrate Zillow Home Loans more seamlessly with our Premier Agent Partner Network and throughout the customer journey.

Speaker Change: Overall customer adoption rates in our nine most mature enhanced markets have reached the mid-teens and nearly 60% of our Zillow home loan originations are represented by a Premier Agent Partner.

Jeremy Wacksman: Overall customer adoption rates in our nine most mature enhanced markets have reached the mid teens and nearly 60% of our Zillow home loan originations are represented by a premier agent partner. To further capture buyer's attention, we've also launched innovative tools through Zillow home loans to help them more accurately understand what they can afford. In Q2, we introduced a feature called buyability, which gives buyers a personalized real time estimate of the home price and monthly payment that fit within their budget, powered by mortgage rates through Zillow home loans and available to check regularly in the Zillow app.

Jeremy Wacksman: And nearly 60% of our Zillow home loan originations are represented by Premier Agent Partners. To further capture buyers' attention, we've also launched innovative tools through Zillow Home Loans to help them more accurately understand what they can afford. In Q2, we introduced a feature called Buyability, which gives buyers a personalized, real-time estimate of the home price and monthly payment that fits within their budget, powered by mortgage rates through Zillow Home Loans and available to check regularly in the Zillow app.

Speaker Change: To further capture buyers' attention, we've also launched innovative tools through Zillow Home Loans to help them more accurately understand what they can afford.

Jeremy Wacksman: In Q2, we introduced a feature called Buyability, which gives buyers a personalized, real-time estimate of the home price and monthly payment that fits within their budget, powered by mortgage rates through Zillow Home Loans and available to check regularly in the Zillow app.

Speaker Change: In Q2, we introduced a feature called Buyability, which gives buyers a personalized, real-time estimate of the home price and monthly payment that fit within their budget, powered by mortgage rates through Zillow Home Loans and available to check regularly in the Zillow app.

Jeremy Wacksman: Our efforts have accelerated purchase mortgage growth, with $756 million in purchase loan origination volume in Q2, a 125% year-over-year increase. We expect continued growth for Zillow home loans as we launch more enhanced markets and continue to improve our go-to-market integration with our Premier Agent partners. For our seller solutions update, I'll focus on Zillow Showcase, a unique offering unlike anything else available today that not only makes selling a home easier but also creates real value for sellers and their agents.

Jeremy Wacksman: Our efforts have accelerated purchase mortgage growth, with $756 million in purchase loan origination volume in Q2, a 125% year-over-year increase. Showcase listings drive higher engagement compared to similar non-showcase listings on Zillow. More views, more saves, and more shares.

Speaker Change: Our efforts have accelerated purchase mortgage growth, with $756 million in purchase loan origination volume in Q2, a 125% year-over-year increase.

Jeremy Wacksman: Our efforts have accelerated purchase mortgage growth with $756 million in purchase loan origination volume in Q2, a 125% year-over-year increase. We expect continued purchase mortgage growth for Zillow home loans as we launch more enhanced markets and continue to improve our go-to-market integration with our premier agent partners. For our seller solutions update, I'll focus on Zillow showcase, a unique offering unlike anything else available today that not only makes selling a home easier, but also creates real value for sellers and their agents.

Speaker Change: We expect continued purchase mortgage growth for Zillow Home Loans as we launch more enhanced markets and continue to improve our go-to-market integration with our premier agent partners.

Jeremy Wacksman: For our Sellers Solutions update, I'll focus on Zillow showcase a unique offering unlike anything else available today that not only makes selling a home easier, but also creates real value for sellers and their agents. Zillow Showcase elevates agents' brand presence on Zillow and provides an enhanced shopping experience through our AI-powered, homegrown rich media and floor plan technology. Showcase listings drive higher engagement compared to similar non-showcase listings on Zillow: more views, more saves, and more shares. But even more importantly, homes that list with Showcase are selling faster and for more money. Showcase listings typically sell for 2% more than similar non-showcase listings on Zillow, a bonus of more than $9,000 on a home sold at the average home sale price.

Jeremy Wacksman: Zillow Showcase elevates agents' brand presence on Zillow and provides an enhanced shopping experience through our AI-powered, homegrown, rich media, and floor plan technology. Showcase listings drive higher engagement compared to similar non-showcase listings on Zillow. More views, more saves, and more shares. But even more importantly, homes that list with Showcase are selling faster and for more money. Showcase listings typically sell for 2% more than similar non-showcase listings on Zillow, a bonus of more than $9,000 on a home sold at the average home sale price. Homes listed with Showcase are also more likely to secure an accepted offer within 14 days.

Speaker Change: For our seller solutions update, I'll focus on Zillow Showcase, a unique offering unlike anything else available today that not only makes selling a home easier, but also creates real value for sellers and their agents.

Jeremy Wacksman: Zillow showcase elevates agents brand presence on Zillow and provides an enhanced shopping experience through our AI powered home grown rich media and floor plan technology. Showcase listings drive higher engagement compared to similar non-showcase listings on Zillow, more views, more saves, and more shares. But even more importantly, homes that list with showcase are selling faster and for more money. Showcase listings typically sell for 2% more than similar non-showcase listings on Zillow, a bonus of more than $9,000 on a home sold at the average home sale price.

Speaker Change: Zillow Showcase elevates agents brand presence on Zillow and provides an enhanced shopping experience through our AI powered, homegrown, rich media and floor plan technology.

Speaker Change: Showcase listings drive higher engagement compared to similar non-showcase listings on Zillow. More views, more saves, and more shares.

Speaker Change: But even more importantly, homes that list with Showcase are selling faster and for more money.

Jeremy Wacksman: Showcase listings typically sell for 2% more than similar non-showcase listings on Zillow, a bonus of more than $9,000 on a home sold at the average home sale price. Homes listed with Showcase are also more likely to secure an accepted offer within 14 days. And what's more, we've observed that agents who use Zillow Showcase are winning 20% more listings than similar agents on Zillow. These results have made it an attractive offering for real estate professionals. Zillow Showcase is available to agents in every market after launching nationwide earlier this year. Even though it's early days, we're pleased to share that more than 1% of all new listings nationwide are now using Showcase.

Speaker Change: Showcase listings typically sell for 2% more than similar non-showcase listings on Zillow, a bonus of more than $9,000 on a home sold at the average home sale price.

Jeremy Wacksman: Homes listed with Showcase are also more likely to secure an accepted offer within 14 days. And what's more, we've observed that agents who use Zillow Showcase are winning 20% more listings than similar agents on Zillow. These results have made it an attractive offering for real estate professionals. Zillow Showcase is available to agents in every market after launching nationwide earlier this year. Even though it's early days, we're pleased to share that more than 1% of all new listings nationwide are now using Showcase. We are on our way to our goal of 5 to 10% listing coverage, which represents a $150 to $300 million annual revenue opportunity.

Speaker Change: Homes listed with Showcase are also more likely to secure an accepted offer within 14 days. And what's more, we've observed that agents who use Zillow Showcase are winning 20% more listings than similar agents on Zillow.

Jeremy Wacksman: Homes listed with showcase are also more likely to secure an accepted offer within 14 days. And what's more, we've observed that agents who use Zillow showcase are winning 20% more listings than similar agents on Zillow. These results have made it an attractive offering for real estate professionals. Zillow showcase is available to agents in every market after launching nationwide earlier this year. Even though it's early days, we're pleased to share that more than 1% of all new listings nationwide are now using showcase.

Jeremy Wacksman: And what's more, we've observed that agents who use Zillow Showcase are winning 20% more listings than similar agents on Zillow. These results have made it an attractive offering for real estate professionals. Zillow Showcase is available to agents in every market after launching nationwide earlier this year. Even though it's early days, we're pleased to share that more than 1% of all new listings nationwide are now using Showcase.

Speaker Change: These results have made it an attractive offering for real estate professionals.

Speaker Change: Zillow Showcase is available to agents in every market after launching nationwide earlier this year. Even though it's early days, we're pleased to share that more than 1% of all new listings nationwide are now using Showcase.

Jeremy Wacksman: We are on our way to our goal of 5% to 10% listing coverage, which represents a $150 to $300 million annual revenue opportunity, and we believe there is potential for future growth beyond that. This takes me to our next update, enhancing our partner network. Our premier agent partners represent some of the best, most professional agents in real estate who we believe are poised to take part in the evolution the industry is experiencing.

Jeremy Wacksman: We are on our way to our goal of 5 to 10% listing coverage, which represents a $150 to $300 million annual revenue opportunity, and we believe there is potential for future growth beyond that. This takes me to our next update, enhancing our partner network. Our premier agent partners represent some of the best, most professional agents in real estate who we believe are poised to take part in the evolution the industry is experiencing.

Speaker Change: We are on our way to our goal of 5 to 10% listing coverage, which represents a $150 to $300 million annual revenue opportunity, and we believe there is potential for future growth beyond that.

Jeremy Wacksman: We are on our way to our goal of 5 to 10% listing coverage, which represents a $150 to $300 million annual revenue opportunity. And we believe there's potential for future growth beyond that. This takes me to our next update, enhancing our partner notes. Our premier agent partners represent some of the best most professional agents in real estate. We believe our poise to take share in the evolution the industry is experiencing. Recall that not every real estate agent is a Zillow premier agent partner.

Jeremy Wacksman: And we believe there is potential for future growth beyond that.

Jeremy Wacksman: This takes me to our next update, enhancing our partner notes. Our premier agent partners represent some of the best, most professional agents in real estate. We believe our poise to take share in the evolution the industry is experiencing. Recall that not every real estate agent is a Zillow Premier Agent partner. In fact, since 2015, we shrunk our active partner base by roughly 60% while our premier agent revenue has grown by more than two and a half times over the same time frame. We've oriented Premier Agent around some of the best agents teams. Those that we believe provide superior customer service understand the industry in their local market, have a proven ability to scale, and make the most money to invest alongside the top 20% of agent teams handle 80% of transactions, and nearly four in five Zillow Premier Agent partners are in that top tier.

Speaker Change: This takes me to our next update, Enhancing Our Partner Network.

Speaker Change: our premier agent partners represent some of the best most professional agents in real estate we believe our poised to take share in the evolution the industry is experiencing

Jeremy Wacksman: Recall that not every real estate agent is a Zillow Premier Agent partner. In fact, since 2015, we've shrunk our active partner base by roughly 60 percent, while our premier agent revenue has grown by more than two and a half times over the same time frame. We've oriented Premier Agent around some of the best agent teams. Those that we believe provide superior customer service, understand the industry in their local market, have a proven ability to scale, and make the most money to invest in.

Jeremy Wacksman: Recall that not every real estate agent is a Zillow Premier Agent Partner. In fact, since 2015, we've shrunk our active partner base by roughly 60 percent, while our premier agent revenue has grown by more than two and a half times over the same time frame. We've oriented Premier Agent around some of the best agent teams, those that we believe provide superior customer service, understand the industry in their local market, have a proven ability to scale, and make the most money to invest in.

Speaker Change: Recall that not every real estate agent is a Zillow Premier Agent partner. In fact, since 2015, we've shrunk our active partner base by roughly 60%, while our Premier Agent revenue has grown by more than two and a half times over the same time frame.

Jeremy Wacksman: In fact, since 2015, we shrunk our active partner base by roughly 60% while our premier agent revenue has grown by more than two and a half times over the same time frame. We've oriented premier agent around some of the best agents teams. Those that we believe provide superior customer service understand the industry and their local market have a proven ability to scale and make the most money to invest alongside. The top 20% of agent teams handle 80% of transactions and nearly four and five Zillow premier agent partners are in that top tier.

Speaker Change: We've oriented Premier Agent around some of the best agent teams, those that we believe provide superior customer service, understand the industry in their local market, have a proven ability to scale, and make the most money to invest alongside us.

Jeremy Wacksman: The top 20% of agent teams handle 80% of transactions, and nearly four and five Zillow Premier Agent Partners are in that top 20%. We are supporting our partners by providing them with some of the best digital tools and solutions. For example, we're really pleased with the early results eight months after our acquisition of Follow Up Boss, one of real estate's leading customer relationship management systems. More than 70% of our connections in enhanced markets are being managed through follow-up bots.

Speaker Change: The top 20% of agent teams handle 80% of transactions, and nearly four in five Zillow Premier agent partners are in that top tier.

Jeremy Wacksman: We are supporting our partners by providing them with some of the best digital tools and solutions. For example, we're really pleased with the early results eight months after our acquisition of Follow Up Boss, one of real estate's leading customer relationship management systems. More than 70% of our connections in enhanced markets are being managed through Follow Up Boss, and those substantial adoption rates set the stage for us to build and improve features and services that help those partners gain share.

Jeremy Wacksman: We are supporting our partners by providing them with some of the best digital tools and solutions. For example, we're really pleased with the early results eight months after our acquisition of Follow Up Boss, one of real estate's leading customer relationship management systems, compared with the more than 50% growth we reported back on the February call. We see an opportunity to increase conversion and revenue per total transaction value even more from here as we launch the remaining enhanced markets this year.

Speaker Change: We are supporting our partners by providing them with some of the best digital tools and solutions.

Jeremy Wacksman: We are supporting our partners by providing them with some of the best digital tools and solutions. For example, we're really pleased with the early results eight months after our acquisition of follow up boss one of real estate's leading customer relationship management systems. More than 70% of our connections in enhanced markets are being managed through follow up boss and those substantial adoption rates set the stage for us to build and improve features and services that help those partners gain share.

Speaker Change: For example, we're really pleased with the early results eight months after our acquisition of FollowUp Boss, one of real estate's leading customer relationship management systems.

Speaker Change: More than 70% of our connections in enhanced markets are being managed through Follow a Boss.

Jeremy Wacksman: And those substantial adoption rates set the stage for us to build and improve features and services that help those partners gain share. And finally, integrating our services, where the four sales growth pillars come together in the Zillow Housing Super Epic, providing high-intent customers with valuable solutions, working with some of the best agents, and providing those agents with some of the best tools has paid off. In our first four enhanced markets, we've seen revenue growth per total transaction value increase by more than 80% since the beginning of 2023, compared with the more than 50% growth we reported back on the February call.

Speaker Change: And those substantial adoption rates set the stage for us to build and improve features and services that help those partners gain share.

Jeremy Wacksman: And finally, integrating our services where the four sale growth pillars come together in the Zillow housing super app experience. Providing high intent customers with valuable solutions, working with some of the best agents and providing those agents with some of the best tools, has paid off for us. In our first four enhanced markets, we've seen revenue growth for total transaction value increased by more than 80% since the beginning of 2023. Compared with the more than 50% growth we reported back on the February call. And as we expand, we are consistently seeing signs of repeatable success. In the 13 enhanced markets we were in at the end of Q1, we are seeing gains in revenue, prototal transaction value.

Speaker Change: And finally, integrating our services, where the four sale growth pillars come together in the Zillow Housing Super App experience.

Jeremy Wacksman: And finally, integrating our services where the four sale growth pillars come together in the Zillow housing super app experience. Providing high intent customers with valuable solutions, working with some of the best agents and providing those agents with some of the best tools has paid off for us. In our first four enhanced markets, we've seen revenue growth per total transaction value increased by more than 80% since the beginning of 2023. Compared with the more than 50% growth, we reported back on the February call.

Speaker Change: Providing high-intent customers with valuable solutions, working with some of the best agents, and providing those agents with some of the best tools has paid off for us.

Speaker Change: In our first four enhanced markets, we've seen revenue growth per total transaction value increase by more than 80% since the beginning of 2023.

Speaker Change: compared with the more than 50% growth we reported back on the February call.

Jeremy Wacksman: And as we expand, we are consistently seeing signs of repeatable success in the 13 enhanced markets we were in at the end of Q1. We are seeing gains in revenue per total transaction value. We see an opportunity to increase conversion and revenue per total transaction value even more from here as we launch the remaining enhanced markets this year. Now, we are turning our focus to rent. Last quarter, we released an investor presentation and talked through the massive opportunity in front of us. Today, there is no nationwide marketplace containing all rental listings, resulting in a fragmented experience for renters.

Speaker Change: And as we expand, we are consistently seeing signs of repeatable success. In the 13 enhanced markets we were in at the end of Q1, we are seeing gains in revenue per total transaction value.

Jeremy Wacksman: And as we expand, we are consistently seeing signs of repeatable success. In the 13 enhanced markets we were in at the end of q1, we are seeing gains and revenue per total transaction value. We see an opportunity to increase conversion and revenue per total transaction value even more from here as we launch the remaining enhanced markets this year.

Jeremy Wacksman: We see an opportunity to increase conversion and revenue, prototal transaction value even more from here as we launch the remaining enhanced markets this year.

Speaker Change: we see an opportunity to increase conversion and revenue per total transaction value even more from here as we launched the remaining enhanced markets this year

Jeremy Wacksman: Now turning our focus to rentals. Last quarter, we released an investor presentation talk through the massive opportunity in front of us. Today, there is no nationwide marketplace containing all rental listings, resulting in a fragmented experience for renters. We are building a two-sided marketplace with a comprehensive suite of listings, both multifamily and long tail, that enabled renters to more easily shop, tour, apply, sign the lease, and pay rent securely, all on one convenient platform, Zillow. Having more rental listings and multifamily properties and ramping up our marketing have both helped drive customer awareness of rentals on Zillow.

Speaker Change: Now turning our focus to rentals.

Jeremy Wacksman: Now turning our focus to rentals. Last quarter, we released an investor presentation talk through the massive opportunity in front of us. Today, there is no nationwide marketplace containing all rental listings resulting in a fragmented experience for renters. We are building a two-sided marketplace with a comprehensive suite of listings, both multifamily and long tail that enabled renters to more easily shop, tour, apply, sign the lease and pay rent securely all on one convenient platform, Zillow.

Speaker Change: Last quarter, we released an investor presentation and talked through the massive opportunity in front of us. Today, there is no nationwide marketplace containing all rental listings, resulting in a fragmented experience for renters.

Jeremy Wacksman: We are building a two-sided marketplace with a comprehensive suite of listings, both multifamily and long tail, that enables renters to more easily shop, tour, apply, sign a lease, and pay rent securely, all on one convenient platform, Zillow. Having more rental listings and multifamily properties and ramping up our marketing have both helped drive customer awareness of rental properties on Zillow. In June, our total rental unique visitors were up more than 20% year over year, according to Comscore, widening our margin as the leading online rental brand with the largest audience and number one preference among renters.

Speaker Change: We are building a two-sided marketplace with a comprehensive suite of listings, both multifamily and long-tail, that enables renters to more easily shop, tour, apply, sign a lease, and pay rent securely, all on one convenient platform, Zillow.

Speaker Change: having more rental listings in multifamily properties and ramping up our marketing have both helpped drive customer awareness of rental lonzo

Jeremy Wacksman: Having more rental listings and multifamily properties and ramping up our marketing have both helped drive customer awareness of rentals on Zillow. In June, our total rental unique visitors were up more than 20% year-to-year, according to CommScore, widening our margin as a leading online rentals brand with the largest audience and number one preference among renters. We expect multifamily to be the primary driver of our rental revenue growth and we make great progress in q2.

Jeremy Wacksman: In June, our total rental unique visitors were up more than 20% year-to-year, according to CommScore, widening our margin as the leading online rentals brand with the largest audience and number one preference among renters. We expect multifamily to be the primary driver of our rental revenue growth, and we make great progress in Q2. Zillow now has 44,000 multifamily properties, 38% more than a year ago. and our exclusive partnership with Realtor.com is further boosting exposure for our multifamily listings, helping our partners reach even more renters. We have a lot of work ahead, but with multifamily revenue up 44% year over year, we are on our way with a billion dollar plus revenue opportunity in front of us.

Speaker Change: In June , our total rental unique visitors were up more than 20% year-over-year according to Comscore, widening our margin as the leading online rentals brand with the largest audience and number one preference among renters.

Jeremy Wacksman: We expect multifamily to be the primary driver of our rental revenue growth, and we made great progress in Q2. Zillow now has 44,000 multifamily properties, 38% more than a year ago. And our exclusive partnership with Realtor.com is further boosting exposure for our multifamily listings, helping our partners reach even more renters.

Speaker Change: we expect multifamily to be the primary driver of our rentals revenue growth and we made great progress in q two

Jeremy Wacksman: Zillow now has 44,000 multifamily properties, 38% more than a year ago. And we believe we are on our way to strong gap profitability over time that benefits all of us as shareholders. Thank you for being on this journey with us. I will now pass the line over to Jeremy Hofmann.

Speaker Change: Zillow now has 44,000 multifamily properties, 38% more than a year ago.

Jeremy Wacksman: Zillow now has 44,000 multifamily properties, 38% more than a year ago, and our exclusive partnership with Realtor.com is further boosting exposure for our multi-family listings helping our partners reach even more renters. We have a lot of work ahead, but with multi-family revenue of 44% year-over-year, we are on our way with a billion dollar plus revenue opportunity in front of us.

Speaker Change: And our exclusive partnership with Realtor.com is further boosting exposure for our multifamily listings, helping our partners reach even more renters.

Jeremy Wacksman: We have a lot of work ahead, but with multifamily revenue up 44% year over year, we are on our way with a billion-dollar plus revenue opportunity in front of us. Before handing it over to Jeremy Hoffman, I want to congratulate the exceptional Zillow team on our eighth consecutive quarter of total revenue outperformance. It's their dedication and expertise that continue to drive our business forward as we work to deliver exceptional products and services for consumers, agents, and the broader industry.

Speaker Change: We have a lot of work ahead, but with multifamily revenue up 44% year-over-year, we are on our way with a billion-dollar-plus revenue opportunity in front of us.

Jeremy Hofmann: Before handing it over to Jeremy Hofmann, I want to congratulate the exceptional Zillow team on our eighth consecutive quarter of total revenue outperformance.

Jeremy Wacksman: Before handing it over to Jeremy Hofmann, I want to congratulate the exceptional Zillow team on our eighth consecutive quarter of total revenue outperformance. It's their dedication and expertise that continue to drive our business forward as we work to deliver exceptional products and services for consumers, agents and the broader industry. Our successes to date give me a great deal of confidence in our future. We're on track to meet our expectations for 2024 to deliver double-digit revenue growth and modestly expand our EBITDA margins. And we believe we are on our way to strong gap profitability over time that benefits all of us as shareholders. Thank you for being on this journey with us.

Jeremy Wacksman: And expertise that continue to drive our business forward as we work to deliver exceptional products and services for consumers, agents, and the broader industry.

Jeremy Hofmann: It's their dedication and expertise that continue to drive our business forward as we work to deliver exceptional products and services for consumers, agents, and the broader industry.

Jeremy Hofmann: Our successes to date give me a great deal of confidence in our future. We're on track to meet our expectations for 2024 to deliver double-digit revenue growth and modestly expand our EBITDA margins. And we believe we are on our way to strong gap profitability over time that benefits all of us as shareholders. Thank you for being on this journey with us.

Jeremy Wacksman: Our successes to date give me a great deal of confidence in our future. We're on track to meet our expectations for 2024 to deliver double-digit revenue growth and modestly expand our EBITDA margin. And we believe we are on our way to strong gap profitability over time that benefits all of us as shareholders. Thank you for being on this journey with us. I will now pass the line over to Jeremy Hofmann.

Speaker Change: And we believe we are on our way to strong gap profitability over time that benefits all of us as shareholders. Thank you for being on this journey with us. I will now pass the line over to Jeremy Hofmann.

Jeremy Hofmann: I will now pass the line over to Jeremy Hofmann. Thanks, Jeremy. Thank you. Congratulations. I'm really excited for you and for us as you lead us through this next chapter for the company. I will start with our Q2 2024 results, which exceeded expectations for revenue and EBITDA. Revenue in Q2 was up 13% year over year to $572 million, which was $39 million above the midpoint of our outlook range. Our strategy is working, and we are seeing our investments drive out performance across each of our revenue categories, including residential rentals and mortgages. For the quarter, we outperformed the broader residential real estate industry growth of 3% according to data from the NAR.

Jeremy Hofmann: Thanks, Jeremy, and congratulations. I'm really excited for you and for us as you lead us through this next chapter for the company. I will start with our Q2 2024 results, which exceeded expectations for revenue and EBITDA. Revenue in Q2 was up 13% year over year to $572 million, which was $39 million above the midpoint of our outlook rate. Our strategy is working, and we are seeing our investments drive outperformance across each of our revenue categories, including residential, rentals, and more.

Jeremy Hofmann: I will now pass the line over to Jeremy Hofmann. Thanks, Jeremy. And congratulations. I'm really excited for you and for us as you lead us through this next chapter for the company. I will start with our Q2 2024 results, which exceeded expectations for revenue and EBITDA. Revenue in Q2 was up 13% year-over-year to $572 million, which was $39 million above the midpoint of our outlook range. Our strategy is working, and we are seeing our investments drive outperformance across each of our revenue categories, including residential, rentals and mortgages.

Speaker Change: Thanks, Jeremy, and congratulations. I'm really excited for you and for us as you lead us through this next chapter for the company.

Jeremy Hofmann: I will start with our Q2 2024 results, which exceeded expectations for revenue and EBITDA.

Jeremy Hofmann: Revenue in Q2 was up 13% year-over-year to $572 million, which was $39 million above the midpoint of our outlook range.

Speaker Change: our strategy is working and we are seeing our investments strrive outperformance across each of our revenue categories including residential rentals and mortgages

Jeremy Hofmann: For the quarter, we outperformed the broader residential real estate industry growth of 3% according to data from the NAR. Additionally, we estimate that the total purchase loan volume for mortgage buyers, which is more aligned with our customer base for Premier Agent, was down mid-single digits year-over-year in Q2 and underperformed the overall market. On a gap basis, our Q2 net loss was $17 million, representing 3% of our revenue.

Speaker Change: For the quarter, we outperformed the broader residential real estate industry growth of 3% according to data from the NAR.

Jeremy Hofmann: For the quarter, we outperform the broader residential real estate industry growth of 3% according to data from the NAR. Additionally, we estimate that the total purchase loan volume for mortgage buyers, which is more aligned with our customer base for Premier Agent, was down mid-single digits year-over-year in Q2 and under-performed the overall market. On a gap basis, Q2 net loss was $17 million, representing 3% of our revenue. EBITDA was $134 million for the quarter, resulting in a 23% EBITDA margin, a year-over-year margin expansion of more than 100 basis points.

Jeremy Hofmann: Additionally, we estimate that the total purchase loan volume for mortgage buyers, which is more aligned with our customer base for Premier Agent, was down mid single digits year over year in Q2 and underperformed the overall market. On a gap basis, Q2 net loss was $17 million, representing 3% of our revenue. EBITDA was $134 million for the quarter, resulting in a 23% EBITDA margin, a year-over-year margin expansion of more than 100 basis points. The combination of our revenue outperformance and effective cost management delivered the improved year-over-year EBITDA results. Q2 residential revenue grew 8% year over year to $409 million, outperforming our outlook range.

Jeremy Hofmann: Additionally, we estimate that the total purchase loan volume for mortgage buyers, which is more aligned with our customer base for Premier Agent, was down mid-single digits year-over-year in Q2 and underperformed the overall market. Q2 residential revenue grew 8% year-over-year to $409 million, outperforming our outlook. Our premier agent revenue benefited from the ongoing investments in our top and mid-funnel experiences that drove improvements in our overall connection rates, and we also saw better-than-expected conversions.

Speaker Change: Additionally, we estimate that the total purchase loan volume for mortgage buyers, which is more aligned with our customer base for Premier Agent, was down mid-single digits year-over-year in Q2 and underperformed the overall market.

Speaker Change: On a gap basis, Q2 net loss was $17 million, representing 3% of our revenue.

Jeremy Hofmann: EBITDA was $134 million for the quarter, resulting in a 23% EBITDA margin, a year-over-year margin expansion of more than 100 basis points. The combination of our revenue outperformance and effective cost management delivered the improved year-over-year EBITDA results. Q2 residential revenue grew 8% year-over-year to $409 million, outperforming our outlook. Our premier agent revenue benefited from the ongoing investments in our top and mid-funnel experiences that drove improvements in our overall connection rates, and we also saw better-than-expected conversions.

Speaker Change: EBITDA was $134 million for the quarter, resulting in a 23% EBITDA margin, a year-over-year margin expansion of more than 100 basis points.

Speaker Change: The combination of our revenue outperformance and effective cost management delivered the improved year-over-year EBITDA results.

Jeremy Hofmann: The combination of our revenue outperformance and effective cost management delivered the improved year-over-year EBITDA results. Q2 residential revenue grew 8% year-over-year to $409 million, outperforming our outlook range. Our Premier Agent revenue benefited from the ongoing investments in our top and mid-final experiences that drove improvements in our overall connection rates, and we also saw better than expected conversion rates. Looking at our relative performance, the investments we have made since the beginning of 2022, throughout our final, have paid off.

Speaker Change: Q2 residential revenue grew 8% year-over-year to $409 million, outperforming our outlook range.

Jeremy Hofmann: Our premier agent revenue benefited from the ongoing investments in our top and midfinal experiences that drove improvements in our overall connection rates, and we also saw better-than-expected conversion rates. Looking at our relative performance, the investments we have made since the beginning of 2022 throughout our final have paid off. Over the last two years, we have increased our ability to connect customers with partner agents by over 2,000 basis points. This has led to residential revenue in Q2 growing 4% when compared to the same period in 2022, or more than 2,000 basis points better than the industry, which is down approximately 20% over the same time period.

Speaker Change: Our premier agent revenue benefited from the ongoing investments in our top and mid-funnel experiences that drove improvements in our overall connection rates, and we also saw better-than-expected conversion rates.

Jeremy Hofmann: Looking at our relative performance, the investments we have made since the beginning of 2022 throughout our funnel have paid off. In the last two years, we have increased our ability to connect customers with partner agents by over 2,000 agents.

Speaker Change: Looking at our relative performance, the investments we have made since the beginning of 2022 throughout our funnel have paid off.

Speaker Change: Over the last two years we have increased our ability to connect customers with partner agents by over 2,000 basis points.

Jeremy Hofmann: Over the last two years, we have increased our ability to connect customers with partner agents by over 2,000 basis points. This has led to residential revenue in Q2 growing 4% when compared to the same period in 2022, or more than 2,000 basis points better than the industry, which is down approximately 20% over the same time period. Rentals revenue grew 29% year-over-year in Q2 to $117 million, primarily driven by our multifamily revenue, which grew 44% year-over-year.

Jeremy Hofmann: This has led to residential revenue in Q2 growing 4% when compared to the same period in 2022, or more than 2,000 basis points better than the industry, which is down approximately 20% over the same time period. Rental revenue grew 29% year-over-year in Q2 to $117 million, primarily driven by our multifamily revenue, which grew 44% year-over-year. We are executing well on our rental strategy to develop a two-sided marketplace with the most comprehensive set of rental listings. We saw the number of multifamily properties on our apps and sites grow 38% year-over-year, reaching an all-time high of 44,000 multifamily properties as of the end of Q2.

Speaker Change: this has led to residential revenue in q two growing four percent when compared to the same period in two thousand and twenty two or more than two thousand basis points better than the industry which is down approximately twenty percent over the same time period

Jeremy Hofmann: Rentals revenue grew 29% year over year in Q2 to $117 million, primarily driven by our multi-family revenue, which grew 44% year over year. We are executing well on our rental strategy to develop a two-sided marketplace with the most comprehensive set of rentals, listings. We saw the number of multifamily properties on our apps and sites grow 38% year-over-year, reaching an all-time high of 44,000 multifamily properties as of the end of Q2. Mortgage's revenue growth accelerated in Q2, up 42% year-over-year to $34 million as revenue growth begins to more closely align with Zillow Home Loans growth. ZHL purchased loan origination volume grew 125% year-over-year to $756 million in Q2.

Speaker Change: Rentals revenue grew 29% year-over-year in Q2 to $117 million, primarily driven by our multifamily revenue, which grew 44% year-over-year.

Speaker Change: We are executing well on our rental strategy to develop a two-sided marketplace with the most comprehensive set of rentals listings.

Jeremy Hofmann: We are executing well on our rental strategy to develop a two-sided marketplace with the most comprehensive set of rentals listings. We saw the number of multifamily properties on our apps and sites grow 38% year over year, reaching an all-time high of 44,000 multifamily properties as of the end of Q2. Total active listings across our entire rental marketplace were up more than 16% year over year to an industry leading 1.9 million listings in June.

Speaker Change: We saw the number of multifamily properties on our apps and sites grow 38% year-over-year, reaching an all-time high of 44,000 multifamily properties as of the end of Q2.

Jeremy Hofmann: Total active listings across our entire rental marketplace were up more than 16% year over year to an industry-leading 1.9 million listings in June. Mortgage's revenue growth accelerated in Q2, up 42% year-over-year to $34 million, as revenue growth begins to more closely align with Zillow Home Loans Group. ZHL purchase loan origination volume grew 125% year over year to $756 million in Q2. Our mortgage strategy to provide consumers greater financing choice with greater ease from a brand name trust is leading to more customers choosing financing through Zillow Home Loan.

Speaker Change: Total active listings across our entire rentals marketplace were up more than 16% year-over-year to an industry-leading 1.9 million listings in June .

Speaker Change: Mortgage's revenue growth accelerated in Q2, up 42% year-over-year to $34 million as revenue growth begins to more closely align with Zillow home loans growth.

Jeremy Hofmann: Mortgage's revenue growth accelerated in Q2, up 42% year over year to $34 million as revenue growth begins to more closely align with Zillow Home Loans growth. ZHL purchased loan origination volume grew 125% year over year to $756 million in Q2. Our mortgage strategy to provide consumers greater financing choice with greater ease from a brand-new trust is leading to more customers choosing financing through Zillow Home Loans. EBITDA expenses in Q2 totaled $438 million in line with our outlook as a result of our ongoing focus on cost management.

Speaker Change: ZHL purchase loan origination volume grew 125% year over year to $756 million in Q2.

Jeremy Hofmann: Our mortgage strategy to provide consumers greater financing choice with greater ease from a brand-made trust is leading to more customers choosing financing through Zillow Home Loans. EBITDA expenses in Q2 totaled $438 million, in line with our outlook as a result of our ongoing focus on cost management. We ended Q2 with $2.6 billion of cash and investments, down from $2.9 billion at the end of Q1. Positive net operating cash flow was more than offset by $88 million of repurchases of convertible senior notes due in 2025 and the repurchase of $292 million of our shares at a weighted average price of roughly $42.

Speaker Change: Our mortgage strategy to provide consumers greater financing choice with greater ease from a brand name trust is leading to more customers choosing financing through Zillow Home Loans.

Jeremy Hofmann: EBITDA expenses in Q2 totaled $438 million, in line with our outlook as a result of our ongoing focus on cost management. We ended Q2 with $2.6 billion of cash and investments, down from $2.9 billion at the end of Q1. The positive net operating cash flow was more than offset by $88 million of repurchases of convertible senior notes due in 2025 and the repurchase of $292 million of our shares at a weighted average price of roughly $42. As of the end of Q2, we had $1.5 billion of outstanding convertible debt, which includes $608 million that is due in September of this year and $419 million that is due in May of 2025.

Speaker Change: ebitda expenses in q two total four hundred and thirty eight million dollars in line with our outlook as a result of our ongoing focus on cost management

Speaker Change: we ended q two with two point six billion dollars of cash and investments down from two point nine billion at the end of q one

Jeremy Hofmann: We ended Q2 with $2.6 billion of cash and investments down from $2.9 billion at the end of Q1. Positive net operating cash flow was more than offset by $88 million of repurchases of convertible senior notes due in 2025 and the repurchase of $292 million of our shares at a weighted average price of roughly $42. As of the end of Q2, we had $1.5 billion of outstanding convertible debt which includes $608 million that is due in September of this year and $419 million that is due in May of 2025.

Speaker Change: Positive net operating cash flow was more than offset by $88 million of repurchases of convertible senior notes due in 2025, and the repurchase of $292 million of our shares at a weighted average price of roughly $42.

Jeremy Hofmann: As of the end of Q2, we had $1.5 billion of outstanding convertible debt, which includes $608 million that is due in September of this year and $419 million that is due in May of 2025. We expect to settle the principal balances in cash and any conversion premiums and shares of Class C capital stock. After backing out our convertible debt, we had a net cash and investments balance of $1.1 billion at the end of the quarter, which gives us continued financial flexibility going forward. Turning to our outlook for Q3, we expect residential revenue to be between $375 million and $385 million.

Speaker Change: As of the end of Q2, we had $1.5 billion of outstanding convertible debt, which includes $608 million that is due in September of this year and $419 million that is due in May of 2025. We expect to settle the principal balances in cash and any conversion premiums in shares of Class C capital stock.

Jeremy Hofmann: We expect to settle the principal balances in cash and any conversion premiums in shares of Class C capital stock. After backing out our convertible debt, we had a net cash and investments balance of $1.1 billion at the end of the quarter, which gives us continued financial flexibility going forward. Turning to our outlook for Q3, we expect residential revenue to be between $375 million and $385 million. Our residential revenue outlook for Q3 is driven by the normal seasonality of Premier Asian as well as continued strong contributions from our Showing Time Plus, new construction, and follow-up boss, Product Office.

Jeremy Hofmann: We expect to settle the principal balances in cash and any conversion premiums and shares of class C capital stock. After backing out our convertible debt, we had a net cash and investments balance of $1.1 billion at the end of the quarter which gives us continued financial flexibility going forward.

Speaker Change: after backing out our convertible debt we had a net cash and investment balance of one point one billion dollars at the end of the quarter which gives us continued financial flexibility going forward

Speaker Change: turning to our outlook for q three we expect residential revenue to be between three hundred and seventy-five million and three hundred and eighty five million dollars

Jeremy Hofmann: Turning to our outlook for Q3, we expect residential revenue to be between $375 million and $385 million. Our residential revenue outlook for Q3 is driven by the normal seasonality of premier agent as well as continued strong contributions from our showing time plus new construction and follow up boss product operas. We expect rentals revenue to grow in the mid 20% range year over year in Q3. We expect multifamily revenue to grow faster than rentals revenue overall as we benefit from our sales execution, our national brand awareness campaign, and our partnership with Realtor.com.

Jeremy Hofmann: Our residential revenue outlook for Q3 is driven by the normal seasonality of Premier Agent as well as continued strong contributions from our ShowingTime Plus, new construction, and Follow Up Boss product operas. We expect Rentals revenue to grow in the mid 20% range year over year in Q3. We expect multi-family revenue to grow faster than Rentals revenue overall as we benefit from our sales execution, our national brand awareness campaign, and our partnership with Realtor.com. For mortgages, we expect a similar year-over-year revenue growth rate to what we reported in Q2 2024. We remain on track to further integrate Premier Agent and Zilla Home Loans with our planned enhanced market expansion in Q3.

Speaker Change: Our residential revenue outlook for Q3 is driven by the normal seasonality of Premier Asian, as well as continued strong contributions from our Showing Time Plus, new construction, and follow-up boss product offerings.

Jeremy Hofmann: We expect rental revenue to grow in the mid 20% range year over year in Q3. We expect multifamily revenue to grow faster than rental revenue overall as we benefit from our sales execution, our national brand awareness campaign, and our partnership with Realtor.com. For mortgages, we expect a similar year-over-year revenue growth rate to what we reported in Q2 2024. We remain on track to further integrate Premier Agent and Zillow Home Loans with our planned enhanced market expansion in Q3.

Speaker Change: We expect rentals revenue to grow in the mid-20% range year over year in Q3. We expect multifamily revenue to grow faster than rentals revenue overall as we benefit from our sales execution, our national brand awareness campaign, and our partnership with Realtor.com.

Speaker Change: For mortgages, we expect a similar year-over-year revenue growth rate to what we reported in Q2 2024. We remain on track to further integrate Premier Agent and Zillow home loans with our planned enhanced market expansion in Q3.

Jeremy Hofmann: For mortgages, we expect a similar year-over-year revenue growth rate to what we reported in Q2 2024. We remain on track to further integrate premier agent and Zillahomones with our planned enhanced market expansion in Q3. We expect total revenue to be between $545 million and $560 million in Q3, implying a year-over-year increase of 11% at the midpoint of our outlook range. This compares to our estimates for the residential real estate industry total transaction value to be in the mid single digit year-over-year growth range for Q3.

Jeremy Hofmann: We expect total revenue to be between $545 million and $560 million in Q3, implying a year-over-year increase of 11% at the midpoint of our outlook range. This compares to our estimates for the residential real estate industry total transaction value to be in the mid single-digit year-over-year growth range for Q3. We expect EBITDA to be between 95 million and $110 million in Q3, equating to a 19 percent margin at the midpoint of our outlet range. The sequential increase in EBITDA expenses is driven by an uptick in our brand marketing spend related to our rentals brand campaign.

Jeremy Hofmann: We expect total revenue to be between $545 million and $560 million in Q3, implying a year-over-year increase of 11% at the midpoint of our outlook range. This compares to our estimates for the residential real estate industry total transaction value to be in the mid-single-digit year-over-year growth range for Q3. We expect EBITDA to be between $95 million and $110 million in Q3, equating to a 19% margin at the midpoint of our Outlook ranking.

Speaker Change: We expect total revenue to be between $545 million and $560 million in Q3, implying a year-over-year increase of 11% at the midpoint of our outlook range.

Speaker Change: This compares to our estimates for the residential real estate industry total transaction value to be in the mid-single-digit year-over-year growth range for Q3.

Speaker Change: We expect EBITDA to be between $95 million and $110 million in Q3, equating to a 19% margin at the midpoint of our outlook range.

Jeremy Hofmann: We expect EBITDA to be between 95 million and $110 million in Q3, equating to a 19% margin at the midpoint of our outlet range. This implies EBITDA expenses will increase from $438 million in Q2 to an estimated $450 million in Q3. The sequential increase in EBITDA expenses is driven by an uptick in our brand marketing spend related to our rentals brand campaign. We expect EBITDA costs to decline sequentially from Q3 to Q4 as marketing spend decreases in line with typical seasonal media spent.

Jeremy Hofmann: This implies EBITDA expenses will increase from $438 million in Q2 to an estimated $450 million in Q3. The sequential increase in EBITDA expenses is driven by an uptick in our brand marketing spend related to our rental brand campaign. We expect EBITDA costs to decline sequentially from Q3 to Q4 as marketing spend decreases in line with typical seasonal media spend.

Speaker Change: This implies EBITDA expenses will increase from $438 million in Q2 to an estimated $450 million in Q3.

Speaker Change: The sequential increase in EBITDA expenses is driven by an uptick in our brand marketing spend related to our rentals brand campaign.

Jeremy Hofmann: We expect EBITDA costs to decline sequentially from Q3 to Q4 as marketing spend decreases in line with typical seasonal media spent. Moving to the full year, I want to reiterate that we expect to drive double-digit revenue growth for 2024 with modest EBITDA margin expansion, primarily driven by our growth pillars. Our annual fixed cost run rate is approximately $1 billion, consistent with where we stood at the end of 2023. We continue to believe our fixed investments are at the right level, which should result in our fixed costs growing modestly with inflation. Consistent with previous quarters, our various variable costs are expected to grow ahead of revenue initially as we ramp new hires to be fully productive.

Speaker Change: We expect EBITDA costs to decline sequentially from Q3 to Q4 as marketing spend decreases in line with typical seasonal media spend.

Jeremy Hofmann: Moving to the full year, I want to reiterate that we expect to drive double-digit revenue growth for 2024 with modest EBITDA margin expansion, primarily driven by our growth pillar. Our annual fixed cost run rate is approximately $1 billion, consistent with where we stood at the end of 2023. We continue to believe our fixed investments are at the right level, which should result in our fixed costs growing modestly with inflation. Consistent with previous quarters, our various variable costs are expected to grow ahead of revenue initially as we ramp up new hires to be fully productive. Advertising spend is a lever we view as separate and distinct from the rest of the cost base and one we will pull depending on the growth opportunities we see in front of us.

Speaker Change: Moving to the full year, I want to reiterate that we expect to drive double-digit revenue growth for 2024 with modest EBITDA margin expansion, primarily driven by our growth pillars.

Jeremy Hofmann: Moving to the full year, I want to reiterate that we expect to drive double digit revenue growth for 2024 with modest EBITDA margin expansion. Our annual fixed cost run rate is approximately $1 billion, consistent with where we stood at the end of 2023. We continue to believe our fixed investments are at the right level, which should result in our fixed costs growing modestly with inflation. Consistent with previous quarters, our various variable costs are expected to grow ahead of revenue initially as we ramped new hires to be fully productive.

Speaker Change: Our annual fixed cost run rate is approximately $1 billion, consistent with where we stood at the end of 2023. We continue to believe our fixed investments are at the right level, which should result in our fixed costs growing modestly with inflation.

Speaker Change: Consistent with previous quarters, our various variable costs are expected to grow ahead of revenue initially as we ramp new hires to be fully productive.

Jeremy Hofmann: Advertising spend is a lever we view as separate and distinct from the rest of the cost space, and one we will pull depending on the growth opportunities we see in front of us. We are demonstrating the benefit of pulling this advertising lever in our rentals marketplace, given growth we are seeing in traffic and revenue, and we are pleased with the early results. To close, it is clear we are executing on our strategy. We are growing across every part of our business. We are seeing great results from our growth pillars in our enhanced markets that will continue to roll out this year, and we are on track to grow revenue by double digits and expand margins in 2024.

Speaker Change: advertising spend is a lever we vie separate and distinct from the rest of the cost base and one we will pull depending on the growth opportunities we seeninfront of us

Jeremy Hofmann: We are demonstrating the benefit of pulling this advertising lever in our rental marketplace given the growth we are seeing in traffic and revenue, and we are pleased with the early results. To close, it is clear we are executing on our strategy. We are growing across every part of our business. We are seeing great results from our growth pillars in our enhanced markets, which will continue to roll out this year. And we are on track to grow revenue by double digits and expand margins in 2024. And with that, operator, we'll open the line to questions. Thank you.

Speaker Change: We are demonstrating the benefit of pulling this advertising lever in our rentals marketplace given growth we are seeing in traffic and revenue, and we are pleased with the early results.

Speaker Change: To close, it is clear we are executing on our strategy.

Jeremy Hofmann: To close, it is clear we are executing on our strategy. We are growing across every part of our business. We are seeing great results from our growth pillars in our enhanced markets that will continue to roll out this year and we are on track to grow revenue by double digits and expand margins in 2024.

Speaker Change: We are growing across every part of our business. We are seeing great results from our growth pillars in our enhanced markets that will continue to roll out this year, and we are on track to grow revenue by double digits and expand margins in 2024. And with that, Operator, we'll open the line for questions.

Operator: And with that, operator will open the line for questions. Thank you. At this time, if you would like to ask a question, please click on the raise hand button, which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a message on your screen from the host allowing you to talk, and then you will hear your name called. Please accept, unmute your audio, and ask your question. We will wait one moment to allow the queue to form. Our first question comes from Ronald Josie from the city.

Operator: And with that operator, we'll open the line for questions. Thank you.

Operator: At this time, if you would like to ask a question, please click on the raise your hand button, which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a message on your screen from the host, allowing you to talk, and then you will hear your name called. Please accept, unmute your audio, and ask your question. We will wait one moment to allow the queue to form. Our first question comes from Ronald Josey from The City.

Speaker Change: Thank you.

Speaker Change: At this time, if you would like to ask a question, please click on the raise hand button, which can be found on the black bar at the bottom of your screen.

Operator: At this time, if you would like to ask a question, please click on the raise hand button, which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a message on your screen from the host, allowing you to talk, and then you will hear your name called. Please accept, unmute your audio and ask your question. We will wait one moment to allow the queue to form.

Speaker Change: When it is your turn, you will receive a message on your screen from the host allowing you to talk, and then you will hear your name called. Please accept, unmute your audio, and ask your question. We will wait one moment to allow the queue to form.

Ronald Josey: Great. Thanks for taking the question. This new one – making sure you can hear me okay, guys. Rich, Jeremy, Jeremy, can you hear me?

Speaker Change: Our first question comes from Ronald Josey from The City.

Ronald Josey: Great. Thanks for taking the question. This new, making sure you can hear me. Okay. Guys, Rich, Jeremy, Jeremy, can you hear me? We got it. All right. Cool. So congrats on the new roles. Jeremy specifically and Rich back to back to chairman. And you mentioned in your conversation up front just how Zillow's and Great State Financial strategically, operationally, organizationally.

Ronald Josey: Our first question comes from Ronald Josie from the city. Great. Thanks for taking the question.

Speaker Change: Great. Thanks for taking the question. Making sure you can hear me okay, guys. Rich, Jeremy, Jeremy, can you hear me? We can, yeah. We got you. All right. Cool. So, congrats on the new roles. Jeremy, specifically, and Rich, back to Chairman. You mentioned in your conversation up front just how Zillow is in great shape financially, strategically, operationally, organizationally, and why now is the right time. At the same time, the industry is going through a change, so just a little more insights on why now would be helpful. And then, more importantly, I guess,

Rich Barton: We can. We've got you. All right. Cool.

Ronald Josey: This new. Make sure you can hear me. Okay, guys. Rich Jeremy Jeremy can you hear me? We got it. All right. Cool.

Ronald Josey: So, congrats on the new roles, Jeremy, specifically, and Rich, back to Chairman. You mentioned in your conversation up front just how Zillow is in great shape financially, strategically, operationally, organizationally, and why now is the right time. At the same time, the industry is going through a change. So, just a little more insight on why now would be helpful.

Ronald Josey: So congrats on the new roles. Jeremy specifically and rich back to back to chairman. And you mentioned in your conversation up front just how Zillow's and great state financial strategically operationally organizationally. And why now is the right time at the same time the industry is going through a chain so just a little more insights on on why now would be helpful. And then more importantly, I guess, you know, when we have enhanced markets now in 36 markets by the end of August 40 by the end of the year, I think accounting for around.

Ronald Josey: And why now is the right time at the same time the industry is going through a change, so just a little more insights on why now would be helpful. And then, more importantly, I guess, you know, when we have enhanced markets now in 36 markets by the end of August, 40 by the end of the year, I think accounting for around. 40% of total connections. You know, we get a lot of questions around the benefits of enhanced markets. So can you take a step back and just remind us on the benefits of enhanced markets as we get to that call it 6% of transactions.

Rich Barton: And then, more importantly, I guess, you know, when we have enhanced markets now in 36 markets by the end of August, 40 by the end of the year, I think accounting for around – call it 40% of total connections. We get a lot of questions around the benefits of enhanced markets. So, can you take a step back and just remind us of the benefits of enhanced markets as we get to that – call it 6% of transactions?

Speaker Change: You know, when we have enhanced markets now in 36 markets by the end of August , 40 by the end of the year, I think accounting for around

Speaker Change: Call it 40% of total connections. You know, we get a lot of questions around the benefits of enhanced markets. So, can you take a step back and just remind us on the benefits of enhanced markets as we get to that call it 6% of transactions? I'd love to hear more about what you're seeing in some of the markets. And then, given the structural change in the industry, you know, how does enhanced markets sort of impact that or benefit from it?

Ronald Josey: And call it 40% total connections. You know, we get a lot of questions around the benefits of enhanced markets. So can you take a step back and just remind us on the benefits of enhanced markets as we get to that call it 6% of transactions. I'm love to hear more about what you're seeing in some of the markets. And then given the structural change in the industry, you know, how does enhanced market sort of impact that or benefit from it.

Ronald Josey: I'd love to hear more about what you're seeing in some of the markets, and then given the structural change in the industry, you know, how does enhanced markets sort of impact that or benefit from it. Thanks, guys, and congrats again. Thanks, Ron. So maybe I'll take the first bit, Jeremy Wacksman, and you can come in on the second. Yeah, that's fun. Yeah, okay. Yeah, I mean, it's incredibly impressive to me, Ron, how well we are executing as a company despite all of the kind of stormy weather that constitutes the real estate macro. I mean, we're just posting terrific numbers we have for three years now since Jeremy Wacksman was promoted to COO, running most of the company on all the lines of business. We have talked about our housing super app strategy and our rental strategy and our mortgage strategy, and I would say you all as investors have been like, okay, show me that that is actually going to work.

Rich Barton: I'd love to hear more about what you're seeing in some of the markets. And then, given the structural change in the industry, you know, how does enhanced markets sort of impact that or benefit from it? Thanks, guys, and congrats again.

Rich Barton: Thanks, Ron. So maybe I'll take the first bit, Jeremy Wacksman, and you can come in on the second. Yeah. Does that sound good?

Speaker Change: Thanks guys and congrats again.

Rich Barton: Thanks guys and congrats again. Thanks, Ron. So, maybe I'll take the first bit, Jeremy Wacksman, and you can come in on the second. Yeah, that's fine, good. Yeah, okay. Yeah, I mean, it's incredibly impressive to me, Ron, how well we are executing as a company, despite all of the kind of stormy weather that is the constitutes the real estate macro. I mean, we're just posting terrific numbers. We have for three years now, since Jeremy Wacksman was promoted to CEO, running most of the company and all the lines of business, we have talked about our housing super app strategy and our rental strategy and our mortgage strategy.

Rich Barton: Yeah. Okay, um Yeah, it's incredibly impressive to me, Ron, how well we are executing as a company despite all of the kind of stormy weather that constitutes the real estate macro. I mean, we're just posting terrific numbers. We have, for three years now, since Jeremy Waxman was promoted to COO, running most of the company and all the lines of business, talked about our housing super app strategy and our rental strategy and our mortgage strategy.

Jeremy Hofmann: Yeah, I mean, it's incredibly impressive to me, Ron, how well we are executing as a company despite...

Ron: All of the kind of stormy weather that constitutes the real estate macro. I mean, we're just posting.

Speaker Change: terrific numbers

Speaker Change: We have, for three years now, since Jeremy Wacksman was promoted to COO, running most of the company on all the lines of business,

Speaker Change: We have

Speaker Change: talked about our housing super app strategy and our rental strategy and our mortgages strategy.

Rich Barton: And I would say you all as investors have been like, okay, show me that that is actually going to work as a way to digitize and integrate this transaction and create a really big long-term growth opportunity. And I would say now that, strategically, we have kind of de-risked the concept of what we're building here. We have a long way to go to execute and fulfill what I see as our ultimate right to market share and claiming that and growth. But strategically, we are in really good shape.

Speaker Change: and

Rich Barton: And I would say you all as investors have been like, okay, show me that that is actually going to work as a way to digitize and to integrate this transaction and create a really big long term growth opportunity. And I would say now that strategically we have kind of de-risked the concept of what we're building here. We have a long way to go to execute and fulfill what I see as our ultimate rights of market share and claiming that and growth, but strategically we are in really good shape.

Speaker Change: I would say you all as investors have been like, okay, show me that that is actually going to work as a way to digitize and integrate this transaction and create a really big long-term growth opportunity. And I would say now that strategically we have kind of de-risked the concept of what we're building here.

Richard Barton: As a way to digitize and to integrate this transaction and create a really big long term growth opportunity, and I would say now that strategically we have kind of de-risked the concept of what we're building here. We have a long way to go to execute and fulfill what I see as our ultimate right of market share and claiming that and growth, but strategically we are in really good shape, and that is in no small part due to Jeremy Wacksman's leadership over the last few years getting this all together. And so that is why the time is right; Jeremy is ready, the company is ready, and Ron, personally, I am ready as well.

Speaker Change: We have a long way to go to execute and fulfill what I see as our ultimate rights.

Speaker Change: of Market Share and claiming that and growth, but strategically we are in really good shape.

Rich Barton: And that is, in no small part, due to Jeremy Waxman's leadership over the last few years in getting this all together. And so that is why the time is right. Jeremy is ready. The company is ready, too. And Ron, personally, I am ready as well. I'm not going anywhere. I'm not doing anything else, but I'm really excited to be moving to a role of coach and advisor rather than the daily field general. Thank you. But maybe I'll have our new Chief Executive Officer, Jeremy Waxman, answer the second part of your question. Absolutely. Thanks, Ron.

Rich Barton: And that is in no small part due to Jeremy Wacksman's leadership over the last few years getting this all together. And so that is why the time is right. Jeremy is ready, the company is ready and Ron, personally, I am ready as well. I am not going anywhere.

Jeremy Hofmann: and that is in no small part due to Jeremy Wacksman's leadership.

Speaker Change: over the last few years getting this all together. And so that is why the time is right. Jeremy is ready. The company is ready. And Ron, personally, I am ready as well. I am not, I'm not going anywhere. I'm not doing anything else, but I'm really excited to be moving to a role of

Richard Barton: I am not going anywhere; I'm not doing anything else, but I'm really excited to be moving to a role of coach and advisor rather than the daily field general.

Jeremy Wacksman: I'm not doing anything else, but I'm really excited to be moving to a role of coach and advisor, rather than the daily field general. Thank you.

Speaker Change: coach and advisor rather than the Daily Field General. Thank you. But maybe I'll have our new Chief Executive Officer, Jeremy Wacksman, answer the second part of your question.

Jeremy Wacksman: Thank you, but maybe I'll have our new Chief Executive Officer, Jeremy Wacksman, answer the second part of your question. Absolutely, thanks Ron. On enhanced markets, just a reminder since you asked the metrics there: you know, it's market share, and we measure that in terms of revenue, per total transaction value, and then it's also revenue per transaction, right? So non-transactions and revenue per transaction gets you to that. And 17 or 36 markets by the end of August, on our way to 40 by the end of the year, that in each of those markets we're not serving 100% of customers, so I think we gave a stat earlier this year, that's going to be about 20% of all customers will get that experience, and that experience allows them to get real-time touring and a touring experience, Zillow homelones as a financing option if they choose it, and then most importantly, the enhanced partner network, you know, the handpicked set of partners that Jeremy Hoffman talked about in his prepared remarks that really deliver a great job, provide great customer service, run professionalized businesses for the modern internet consumer, so that's what the enhanced market experience is, as we bring that to more and more customers, we are seeing in the markets we're in revenue, per total transaction value gains, and we expect those gains to contribute to more of our residential and total company revenue as we get to that 20% of customers, and then into next year more of those customers.

Jeremy Wacksman: Absolutely. Thanks, Ron.

Brad Erickson: But maybe I'll have our new chief executive officer, Jeremy Wacksman, answer the second part of your question. Absolutely. Thanks, Ron. On enhanced markets, just a reminder since you asked the metrics there, you know, it's it's market share and we measure that in terms of revenue, per total transaction value. And then it's also revenue per transaction, right? So non transactions and revenue per transaction gets you to that. And 17 or 36 markets by the end of August, on our way to 40 by the end of the year, that in each of those markets, we're not serving 100% of customers.

Jeremy Wacksman: On enhanced markets, just a reminder, since you asked, the metrics there are market share, and we measure that in terms of revenue per total transaction value, and then it's also revenue per transaction, right? So, NUM transactions and revenue per transaction get you to that. And 36 markets by the end of August, on our way to 40 by the end of the year. In each of those markets, we're not serving 100% of customers.

Jeremy Hofmann: Absolutely. Thanks, Ron. On enhanced markets...

Speaker Change: Just a reminder, since you asked, the metrics there, you know, it's market share, and we measure that in terms of revenue per total transaction value, and then it's also revenue per transaction, right? So NUM transactions and revenue per transaction gets you to that.

Speaker Change: and seventeen thirty six markets by the end of august

Speaker Change: On our way to 40 by the end of the year, in each of those markets, we're not serving 100% of customers. So I think we gave a stat earlier this year.

Jeremy Wacksman: So, I think we gave a stat earlier this year that's going to be about 20% of all customers will get that experience. And that experience allows them to get real-time touring and a touring experience, Zillow home loans as a financing option if they choose it. And then, most importantly, the enhanced partner network, you know, the hand-picked set of partners that Jeremy Hoffman talked about in his prepared remarks that really deliver a great job, provide great customer service, and run professionalized businesses for the modern Internet consumer.

Brad Erickson: So I think we gave us that earlier this year, that's going to be about 20% of all customers will get that experience. And that experience allows them to get real time touring and a touring experience, zilla home loans as a financing option if they choose it. And then most importantly, the enhanced partner network, you know, the hand picks set of partners that Jeremy Hoffman talked about in his prepared remarks that really deliver a great job, provide great customer service, Ron professionalized businesses for the modern Internet consumer.

Speaker Change: That's going to be about 20% of all customers will get that experience.

Jeremy Hofmann: And that experience allows them to get real-time touring and a touring experience, Zillow Home Loans as a financing option if they choose it, and then most importantly, the Enhanced Partner Network. You know, the hand-picked set of partners that Jeremy Hofmann talked about in his prepared remarks that really deliver a great job, provide great customer service.

Jeremy Wacksman: So, that's what the enhanced market experience is. As we bring that to more and more customers, we are seeing revenue per total transaction value gains in the markets we're in, and we expect those gains to contribute to more of our residential and total company revenue as we get to that 20% of customers, and then into next year, to more of those customers. So, you know, the land and expand strategy is working well. We're really excited to accelerate to 36 markets by the end of August and be in 40 markets by the end of the year.

Ron: Ron professionalized businesses for the modern internet consumer. So that's what the enhanced market experience is. As we bring that to more and more customers we are seeing in the markets we're in revenue per total transaction value gains and we expect those gains to contribute to more of our residential and total company revenue as we get to that 20% of customers and then into next year more of those customers. And so you know the land and expand strategy is working well. We're really excited to accelerate to 36 markets by the end of August and be at 40 markets by the end of the year.

Brad Erickson: So that's what the enhanced market experience is as we bring that to more and more customers, we are seeing in the markets we're in revenue per total transaction value gains and we expect those gains to contribute to more of our residential and total company revenue as we get to that 20% of customers and then into next year more of those customers. So, you know, the land and expand strategies working well, we're really excited to accelerate to 36 markets by the end of August and be at 40 markets by the end of the year. Thank you, Jeremy. Thank you, Rich.

Jeremy Wacksman: So, you know, the land and expand strategy's working well. We're really excited to accelerate 236 markets by the end of August and be at 40 markets by the end of the year.

Jeremy Wacksman: Thank you, Jeremy. Thank you, Rich.

Operator: Thank you, Jeremy. Thank you, Richard. Our next question...

Bradley Erickson: Our next question comes from Brad Erickson from RBC. Your line is open, Brad; feel free to unmute.

Operator: Our next question comes from Brad Erickson from RBC. Your line is open, Brad.

Jeremy Hofmann: Thank you, Jeremy. Thank you, Richard.

Jeremy Hofmann: Our next question comes from Brad Erickson from RBC.

Brad Erickson: Our next question comes from Brad Erickson from RBC.

Operator: Feel free to unmute. All right, why don't we return to? We'll come back. So we'll go to Nick Jones from Citizens JMP.

Jeremy Hofmann: Your line is open, Brad. Feel free to unmute.

Nick Jones: Your line is open, Brad, feel free to unmute.

Nicholas Jones: All right, why don't we return to, we'll come back, so we'll go to Nick Jones from Citizen's MP. Great, thanks for taking the questions.

Jeremy Hofmann: i

Operator: We'll come back. So we'll go to Nick Jones from Citizens JMP.

Speaker Change: All right, why don't we return to...

Nick Jones: All right, why don't we return to, we'll come back, so we'll go to Nick Jones from Citizen's Campus. Great, thanks for taking the questions.

Operator: We'll come back. So we'll go to Nick Jones from Citizens JMP.

Nicholas Jones: Great. Thanks for taking the questions. Congratulations, Jeremy. I have two questions. First, can you maybe double-click on the rental business? 44% growth in multifamily is impressive. Can you maybe speak to the key drivers behind the success? How are the conversations evolving with the multifamily operators, giving you the confidence to go, you know, to kind of spend after that $1 billion revenue opportunity you've hung out with? And then the second question might be on traffic volumes.

Nicholas Jones: Congratulations, Jeremy. I have two questions. First, can you maybe double-click on the rental's business. 44% growth in multi-family is impressive. Can you maybe speak to the key drivers behind the success? How are the conversations evolving with the multi-family operators? They're giving you the confidence to spend after that $1 billion revenue opportunity you hung out. And then the second question maybe on traffic volumes. You know, you call it all three times more app users. I think it's a competitive environment. He's up around residential folks are increasingly focused on some of these engagement metrics. You maybe speak to it or remind us of the benefits of the app as opposed to web traffic or mobile web.

Nick Jones: Great, thanks for taking the questions. Congratulations, Jeremy.

Nick Jones: Congratulations, Jeremy. I have two questions. First, can you maybe double click on the rental's business. 44% growth in multi-family is impressive. Can you maybe speak to the key drivers behind the success? How are the conversations evolving with the multi-family operators? Give me the confidence to kind of spend after that $1 billion revenue opportunity you hung out. And then the second question maybe on traffic volumes. You know, you call it all three times more app users.

Nick Jones: I have two questions. First, can you maybe double-click on the rentals business, 44% growth and multifamily?

Nick Jones: It was impressive. Can you maybe speak to the key drivers behind the success? How are the conversations evolving with the multifamily operators, giving you the confidence to go, you know, to kind of spend after that $1 billion revenue opportunity you've hung out? And then the second question may be,

Nicholas Jones: You know, you called out three times more app users than you did three years ago, I think, as the competitive environment heats up around residential. Folks are increasingly focused on some of these engagement metrics. Can you maybe speak to them or remind us of the benefits of the app as opposed to web traffic or mobile web?

Nick Jones: ontraffic volumes you know you called all three times more app users i think is the competitive environment he up around a residentialfobothks are increasingly focused on some of these engagement metrics and let me speak to the remind us the benefits of the app as opposed to web traffic or mobile web thank you

Nick Jones: I think it's a competitive environment. He's up around residential folks are increasingly focused on some of these engagement metrics. You maybe speak to the or remind us of the benefits of the app as opposed to web traffic or mobile web. Thank you. Yeah, thanks. Thanks, Nick. Thanks for the questions on rentals. Yeah, as I said, a little bit my prepared marks and we shared for those that were on in February, a more detailed investor presentation on our rental strategy.

Nicholas Jones: Thank you. Yeah, thanks. Thanks, Nick. Thanks for the questions on rentals. Yeah, as I said, a little bit my prepared marks, and we shared for those that were on in February a more detailed investor presentation on our rental strategy. You know, we're so excited about a rental strategy because it's really unique, and it really solves the consumer problem, right. What renters want is to find all the inventory. There is no one place fill inventory. There is no MLS for rentals, so they end up having to shop everywhere during a really compressed time frame. It's super stressful.

Jeremy Wacksman: Yeah, thanks. Thanks, Nick. Thanks for the questions.

Jeremy Wacksman: Thank you. Yeah, thanks. Thanks, Nick. Thanks.

Nick Jones: Yeah, thanks. Thanks, Nick. Thanks for the questions. On rentals...

Speaker Change: Yeah, as I said, a little bit of my prepared remarks, and we shared for those that were on in February , a more detailed investor presentation on our rental strategy. We're so excited about our rental strategy because it's really unique, and it really solves the consumer problem, right? What renters want is to find all the inventory. There is no one-place filler inventory. There is no MLS for rentals, so they end up having to shop everywhere during a really compressed timeframe. It's super stressful.

Jeremy Wacksman: On rentals, yeah, as I said, a little bit of my prepared remarks, and we shared with those that were on in February a more detailed investor presentation on our rental strategy. You know, we're so excited about our rental strategy because it's really unique, and it really solves the consumer problem, right? What renters want is to find all the inventory. There is no one place filled with inventory.

Nick Jones: You know, we're so excited about a rental strategy because it's really unique and it really solves the consumer problem, right. What renters want is to find all the inventory. There is no one place fill inventory. There is no MLS for rentals. So they end up having to shop everywhere during a really compressed time frame. It's super stressful. And so we set out years ago to try and assemble as much of the inventory as possible, both multifamily, the big buildings we all know and long tail.

Jeremy Wacksman: There is no MLS for rentals, so they end up having to shop everywhere during a really compressed timeframe. It's super stressful.

Jeremy Wacksman: And so we set out years ago to try and assemble as much of the inventory as possible, both multifamily, the big buildings we all know, and the long tail, the millions of homes and small unit properties that are out there for rent that turn over infrequently by a long tail of owners. And we've done that. We now have the most listings. But we still don't have them all.

Jeremy Wacksman: And so we set out years ago to try and assemble as much of the inventory as possible, both multi-family, the big buildings we all know, and long tail, the millions of homes and small unit properties that are out there for rent that turn over infrequently by a long tail of owners. And we've done that. We now have the most listings. We don't have them all every every year. We're trying to go after more, and we're growing our listing count, but we have most the most inventory of anyone out there, and that has yielded us the most audience, the biggest audience of renters, right.

Speaker Change: and so we set out years ago to try andassemble as much of the inventory as possible both multifamily the big buildings we all know and long tail the millions of homes and small unit properties that are out there for rent that turnover in frequently by a long tail of owners

Nick Jones: The millions of homes and small unit properties that are out there for rent that turn over infrequently by a long tail of owners. And we've done that. We now have the most listings. We don't have them all every every year. We're trying to go after more and we're growing our listing count. But we have most the most inventory of anyone out there. And that has yielded us the most audience, the biggest audience of renters, right.

Jeremy Wacksman: Every year, we try and go after more, and we're growing our listing count. But we have the most inventory of anyone out there, and that has yielded us the biggest audience, the biggest audience of renters, right? So Zillow's rental network is the largest audience. It just grew 20% year over year this last month, and it continues to grow because renters want that product. And so that two-sided marketplace now gives way to the monetization growth you're seeing coming from multifamily. And so those are the stats I gave in my prepared remarks, 44,000 buildings on Zillow now, up from 40,000 last quarter.

Speaker Change: And we've done that. We now have the most listings. We still don't have them all. Every year we try and go after more and we're growing our listing count. But we have the most inventory of anyone out there. And that has yielded us the most audience, the biggest audience of renters, right? So Zillow's rental network is the largest audience. It just grew 20% year over year this last month.

Jeremy Wacksman: So Zillow's rental network is the largest audience. It just grew 20% year-to-year this last month, and it continues to grow because renters want that product. And so that two-sided marketplace now gives way to the monetization growth you're seeing coming from multi-family. And so that's the stats I gave in my prepared remarks: 44,000 buildings on Zillow now, up from 40,000 last quarter. That's driving the 29% revenue growth you're seeing, which 44% revenue growth and multi-family, that's coming from that property count and that engagement the advertisers. So, you know, that's what gets us so excited. It's this really great win-win marketplace where the consumers getting a better and better experience as the supply comes online, and that then in turn drives the demand and makes the product better for the renters and vice versa.

Nick Jones: So Zillow's rental network is the largest audience. It just grew 20% year by year this last month. And it continues to grow because renters want that product. And so that two-sided marketplace now gives way to the monetization growth you're seeing coming from multifamily. And so that's the stats I gave in my prepared remarks, 44,000 buildings on Zillow now up from 40,000 last quarter. That's driving the 29% revenue growth you're seeing, which 44% revenue growth in multifamily.

Speaker Change: and it continues to grow because renters want that product.

Speaker Change: And so that two-sided marketplace now gives way to the monetization growth you're seeing coming from multifamily. And so that's the stats I gave in my prepared remarks, 44,000 buildings on Zillow now up from 40,000 last quarter. That's driving the 29% revenue growth you're seeing, which 44% revenue growth in multifamily, that's coming from that property count and that engagement with the advertisers. So that's what gets us so excited. It's this really great win-win marketplace where the consumer is getting a better and better experience as the supply comes online. And that then in turn drives the demand and makes the product better for the renters and vice versa. So that's why you've heard Jeremy Hoffman talk about.

Jeremy Wacksman: That's driving the 29% revenue growth you're seeing, which 44% revenue growth in multifamily. That's coming from that property count and that engagement with the advertisers. So that's what gets us so excited.

Jeremy Wacksman: It's this really great win-win marketplace where the consumer is getting a better and better experience as the supply comes online. And that, in turn, drives the demand and makes the product better for the renters, and vice versa. So that's why you've heard Jeremy Hoffman talk about using advertising as a lever to help stimulate demand, to help continue to make that marketplace spin. And that's what gives us the excitement, not just about Q2's growth and in the guide for rentals but about the $1 billion plus business opportunity we see in front of us.

Nick Jones: That's coming from that property count and that engagement with the advertisers. So, you know, that's what gets us so excited. It's this really great win-win marketplace where the consumers getting a better and better experience as the supply comes online. And that then in turn drives the demand and makes the product better for the renters and vice versa. So, that's why you've heard Jeremy Hoffman talk about using advertising as a lever to help stimulate demand to help continue to make that marketplace spin.

Jeremy Wacksman: So that's why you've heard Jeremy Hoffman talk about using advertising as a lever to help stimulate demand to help continue to make that marketplace spin. And that's what gives us the excitement, not just in Q2's growth and in the guide for rentals, but in the $1 billion-plus business opportunity we see in front of them. And then on traffic, yeah I mean we have talked long about how the most important part of audience is the engagement with that audience and I talked in my prepared remarks you can measure cookies and devices and people many ways but what matters is do people know who you are, do they use you to shop, do they find a light in your services? And Zillow has long believed that the best way to drive audience is great products, great innovative products amplified by marketing and you see that in the mix of our traffic. Right? 80% of our audience comes to us brand direct, they come to us because they know who we are and they choose to use us and app usage is a good measure of that, right? And that's why I talked about the app being used three times more than the others in the category, it's just a great measure of really healthy deep engagement. If you're buying a home, if you're actually trying to shop, you're going to use an app and you're going to use a desktop website that ties to that app and you're going to use us as a shopping experience and you're going to use an agent that you find from us and that's going to lead you down the funnel to these transactions. So that's why for us brand engagement and health of traffic is so important, it is the start of this transaction strategy we're on and as we talk a lot about our goal is to take all that great app usage engagement with audience and turn that into more transactions. Right? Our goal of 6% transaction share comes from taking this 60-70% audience share we have and getting more of them to use us and use our housing super app to actually buy, rent, finance or sell their home. For our next question, we'll return to Brad Erickson from RBC. Hi, can you guys hear me?

Speaker Change: using advertising as a lever to help stimulate demand to help continue to make that marketplace spin. And that's what gives us the excitement, not just in Q2's growth and in the guide for rentals, but in the $1 billion-plus business opportunity we see in front of us.

Nick Jones: And that's what gives us the excitement, not just in Q2's growth and in the guide for rentals, but in the $1 billion plus business opportunity we see in front of them, and then on traffic, yeah I mean we have talked long about how the most important part of audience is the engagement with that audience and I talked to my prepared remarks you can measure cookies and devices in people many ways but what matters is to people know who you are do they use you to shop do they find a light in your services and Zillow has long believed that the best way to drive audience is great products great innovative products amplified by marketing and you see that in the mix of our traffic right 80% of our audience comes to us brand direct they come to us because they know who we are and they choose to use us and app usage is a good measure of that right and that's why I talked about the app being used three times more than the than the than the others in the category it's just a great measure of really healthy deep engagement if you're buying a home if you're actually trying to shop you're going to and you're going to use a desktop website that ties to that app and you're going to use us as a shopping experience and you're going to use an agent that you find from us and that's going to lead you down the funnel to these transactions so that's why for us brand engagement and health of traffic is so important it is the start of this transaction strategy we're on and as we talk a lot about our goal is to take all that great app usage engagement with audience and turn them into more transactions right our our goal of six percent transaction share comes from taking this 60 70 percent audience share we have and getting more of them to use us and use our housing super app to actually buy rent finance or sell their home our next question we'll return to you Brad Erickson from RBC Hi can you guys hear me? Yes we got you Brad.

Jeremy Wacksman: And then on traffic, yeah, I mean, we have talked a lot about how the most important part of an audience is the engagement with that audience. And I talked in my prepared remarks about how you can measure cookies and devices in people in many ways, but what matters is, do people know who you are? Do they use you to shop? Do they find light in your services?

Jeremy Wacksman: And then on traffic, yeah, I mean, we have talked long about how the most important part of audience is the engagement with that audience.

Jeremy Wacksman: And I talked in my prepared remarks, you can measure cookies and devices in people many ways. But what matters is, do people know who you are? Do they use you to shop? Do they find a light in your services? And Zillow has long believed that the best way to drive audience is great products, great innovative products, amplified by marketing. And you see that in the mix of our traffic, right? 80% of our audience comes to us brand direct.

Jeremy Wacksman: And Zillow has long believed that the best way to drive audience is great products, great innovative products amplified by marketing. And you see that in the mix of our traffic, right? 80% of our audience comes to us brand direct. They come to us because they know who we are, and they choose to use us.

Jeremy Wacksman: And Zillow has long believed that the best way to drive audience is great products, great innovative products, amplified by marketing. And you see that in the mix of our traffic, right? 80% of our audience comes to us brand-direct. They come to us because they know who we are, and they choose to use us.

Jeremy Wacksman: And app usage is a good measure of that, right? And so that's why I talked about the app being used three times more than the others in the category. It's just a great measure of really healthy, deep engagement.

Jeremy Wacksman: They come to us because they know who we are and they choose to use us, and app usage is a good measure of that. So that's why I talked about the app being used three times more than the others in the category. It's just a great measure of really healthy, deep engagement. If you're buying a home, if you're actually trying to shop, you're going to use an app.

Jeremy Wacksman: If you're buying a home, if you're actually trying to shop, you're going to use an app and you're going to use a desktop website that ties to that app. And you're going to use us as a shopping experience, and you're going to use an agent that you find from us. And that's going to lead you down the funnel to these transactions. So that's why, for us, brand engagement and the health of traffic are so important.

Jeremy Wacksman: and you're going to use a desktop website that ties to that app and you're going to use this as a shopping experience and you're going to use an agent that you find from us and that's going to lead you down the funnel to these transactions.

Jeremy Wacksman: It is the start of this transaction strategy we're on, and as we talk a lot about, our goal is to take all that great app usage engagement with our audience and turn that into more transactions, right? Our goal of 6% transaction share comes from taking this 60, 70% audience share we have and getting more of them to use us and use our housing super app to actually buy, rent, finance, or sell their home.

Jeremy Wacksman: So that's why for us, brand engagement and health of traffic is so important. It is the start of this transaction strategy we're on. And as we talk a lot about, our goal is to take all that great app usage engagement with audience and turn that into more transactions, right? Our goal of 6% transaction share comes from taking this 60, 70% audience share we have and getting more of them to use us and use our housing super app to actually buy, rent, finance, or sell their home.

Operator: For our next question, we'll return to Brad Erickson from RBC.

Jeremy Wacksman: For our next question, we'll return to Brad Erickson from RBC.

Bradley Erickson: Yes, we got you, Brad. Verbal technology is hard. A couple questions just on the commission question: first, just the latest and greatest views on kind of the changes coming and any noticeable observations yet, and kind of what feedback are you getting from your partners as we head into August 17th? And then second, I guess if we assume that, you know, any effect of the regulatory changes may vary a lot up and down kind of the spectrum of the market, talk about how you view Zillow's exposure, particularly to that Thanks.

Bradley Erickson: Yes, we got you, Brad.

Bradley Erickson: Circle technology is hard.

Speaker Change: Hi, can you guys hear me?

Jeremy Hofmann: A couple questions just on the I have to ask the obligatory commission question just first just latest and greatest views on kind of the changes coming and any noticeable observations yet and kind of what feedback are you getting from your PAs as we head into August 17th. And then second I guess if we assume that you know any effect of the regulatory changes may vary a lot up and down kind of the spectrum of the market talk about how you've used Zillow's exposure particularly to that to the degree that there is any change with commissions. Thanks. Yeah, Brad, it's Jeremy off and I'll take that one. I think we can't really speak to broad commission trends just because 80% of our premier agent bases in that top 20% of all producers, so we're working with the top agents versus a broad swath of professionals that set across our business. You know, we've seen commission rates stay in a pretty tight band over the past three years. 2024 is down a few basis points versus 2023 but in line with 2022 levels. And I think just stepping back, you know, we've been pretty consistent here for a while. We believe we and our partners are the outsides beneficiaries of these changes coming in the industry. We have the most customers, we work with the best partners, we provide the most technology, and we expect our PAs will deliver and get paid because they provide great service and they and we think we'll be share takers in any future evolution or dispersion of the industry. So that's how we're seeing it. That's been very consistent for a while now and nothing has really changed our minds on that based on the latest things that we can say. Got it, thanks.

Speaker Change: Yes, we got you Brad. Verbal technology is hard.

Nick Jones: Circle technology is hard. A couple questions just on the I have to ask the obligatory commission question just first just latest and greatest views on kind of the changes coming and any noticeable observations yet and kind of what feedback are you getting from your PAs as we head into August 17th and then second I guess if we assume that you know any effect of the regulatory changes may vary a lot up and down kind of the spectrum of the market talk about how you've used Zillow's exposure particularly to that to the degree that that there is any change with commissions thanks yeah Brad it's Jeremy often I'll take that one I think we can't really speak to broad commission trends just because 80 percent of our premier agent bases in that top 20 percent of all producers so we're working with the top agents versus a broad swath of professionals that said across our business you know we've seen commission rates stay in a pretty tight band over the past three years 2024 is down a few basis points versus 2023 but in line with 2022 2022 levels and I think just stepping back you know we've been pretty consistent here for a while we believe we and our partners are the outsides beneficiaries of these changes coming in the in the industry we have the most customers we work with the best partners we provide the most technology and we expect our PAs will deliver and get paid because they provide great service and they and we we think will be share takers in any future evolution or dispersion of the industry so that's how we're seeing it that's been very consistent for a while now and nothing has really changed our minds on that based on the latest things that we can see Thank you. Got it. Thanks.

Speaker Change: A couple questions just on the, I have to ask the obligatory commission question just first just latest and greatest views on kind of the changes coming and any noticeable observations yet and kind of what feedback are you getting from your PAs as we head into August 17th?

Speaker Change: And then second, I guess if we assume that, you know, any effect of the regulatory changes may vary a lot up and down kind of the spectrum of the market. Talk about how you view Zillow's exposure, particularly to that, to the degree that there is any change with commissions. Thanks.

Jeremy Hofmann: Yeah, Brad, it's Jeremy Hoffman. I'll take that one.

Jeremy Hoffman: Yeah, Brad, it's Jeremy Hoffman. I'll take that one. I think we can't really speak to broad commission trends just because 80% of our premier agent base is in that top 20% of all producers. So we're working with the top agents versus a broad swath of professionals.

Jeremy Hofmann: I think we can't really speak to broad commission trends just because 80% of our premier agent base is in that top 20% of all producers. So we're working with the top agents versus a broad swath of professionals. That said, across our business, you know, we've seen commission rates stay in a pretty tight band over the past three years. 2024 is down a few basis points versus 2023 but in line with 2022 levels.

Jeremy Wacksman: That said, across our business.

Speaker Change: You know, we've seen commission rates stay in a pretty tight band over the past three years.

Speaker Change: 2024 is down a few basis points versus 2023, but in line with 2022 levels.

Jeremy Hofmann: And I think just stepping back, you know, we've been pretty consistent here for a while. We believe we and our partners are the outsized beneficiaries of these changes coming in the industry. We have the most customers, we work with the best partners, we provide the most technology, and we expect our PAs will deliver and get paid because they provide great service, and they, and we, we think will be sharetakers in any future evolution or dispersion of the industry. So that's how we're seeing it. That's been very consistent for a while now, and nothing has really changed our minds on that based on the latest things that we can see.

Jeremy Wacksman: And I think just stepping back, you know, we've been pretty consistent here for a while. We believe we and our partners are the outsized beneficiaries of these changes coming in the industry. We have the most customers. We work with the best partners. We provide the most technology. And we expect our PAs will deliver and get paid because

Jeremy Wacksman: they provide great service and they and we we think will be sharetakers in any future evolution or dispersion of the industry. So that's how we're seeing it. That's been very consistent for a while now and nothing has really changed our minds on that based on the latest things that we can see.

Mark Mahaney: Our next question comes from Mark Mahaney from Evercore. Two things, one I just want to wish you, Rich, the best at whatever you're going to do operationally going forward, so just congrats on all the success with the company over the years and best of luck to you, to Jeremy and the new CEO role. I just want to ask one question about the customer transaction share, so I know the goal is long been to get to 6%. Can you just quantify, are there lead markets where you think you're, are there any lead markets now where you think you're within spitting distance of that of the different enhanced markets that you're in?

Operator: Our next question comes from Mark Mahaney from Evercore.

Speaker Change: Got it, thanks.

Jeremy Wacksman: Our next question comes from Mark Mahaney from Evercore.

Mark Mahaney: Our next question comes from Mark Mahaney from Evercore. Two things.

Mark Mahaney: Two things. One, I just want to wish you, Rich, the best at whatever you're going to do operationally going forward. So, just congratulations on all the success with the company over the years and best of luck to you too, Jeremy, in the new CEO role.

Mark Mahaney: Two things. One, I just want to wish you, Rich, the best at whatever you're going to do operationally going forward. So just congratulations on all the success with the company over the years. And best of luck to you, too, Jeremy, in the new CEO role.

Speaker Change: Two things. One, I just want to wish you, Rich, the best at, you know, whatever you're going to do operationally going forward. So, just congrats on all the success with the company over the years and best of luck to you too, Jeremy, in the new CEO role. I just want to ask one question about the customer transaction share. So, I know the goal has long been to get to 6%.

Mark Mahaney: One, I just want to wish you rich the best at whatever you're going to do operationally going forward. So just congrats on all the success with the company over the years and best of luck to you to Jeremy and the new CEO role. I just want to ask one question about the customer transactions share. So I know the goal is long as long being to get to the 6% and can you just quantify are there lead markets where you think you're, are there any lead markets now where you think you're within spitting distance of that of the different enhanced markets that you're in.

Mark Mahaney: I just want to ask one question about customer transaction share. So, I know the goal has long been to get to 6%. And could you just quantify, are there any lead markets now where you think you're within spitting distance of that, of the different enhanced markets that you're in? I know you've provided some data around, but I just wanted to focus just on that number. Are there other markets where you think you're within a point or a point and a half of that?

Jeremy Wacksman: I just want to ask one question about customer transaction share. So I know the goal has long been to get to 6%. And could you just quantify, are there any lead markets now where you think you're within spitting distance of that, of the different enhanced markets that you're in? I know you've provided some data around, but I just wanted to focus just on that number. Are there other markets where you think you're within a point or a point and a half of that?

Mark Mahaney: And could you just quantify, are there lead markets where you think you're, are there any lead markets now where you think you're within spitting distance of that?

Mark Mahaney: I know you provided some data around, but I just wanted to focus just on that number. Are there other markets where you think you're within a point or point and a half of that? Thanks a lot.

Mark Mahaney: of the different enhanced markets that you're in. I know you've provided some data around, but I just wanted to focus just on that number. Are there other markets where you think you're within a point or a point and a half of that? Thanks a lot.

Mark Mahaney: I know you provided some data around but I just wanted to focus just on that number. Are there are there other other markets where you think you're within, you know, a point or point and a half of that. Thanks a lot. Yeah. Thanks Mark. I'll on the market share gains. I think I said my prepare, I said my prepared marks, you know, the way we're measuring that is revenue per total transaction value growth and in the first and the oldest enhanced markets where we have the most data and we have good year for years, which we've given you an update on earlier this year, we said we were up 50% year over year.

Jeremy Wacksman: Yeah, thanks, Mark. On the market share gains, I think I said my prepared marks. You know, the way we're measuring that is revenue per total transaction value growth, and in the first and the oldest enhanced markets where we have the most data and we have good year-to-year years, which we've given you an update on earlier this year, we said we were up 50% year-over-year. That growth has accelerated to 80% year-to-year in those first four, and then in the 13 we've been in since Q1. We don't have year-to-year yet, but the early trend line is gains in revenue per total transaction value across the 13.

Jeremy Wacksman: Thanks a lot.

Speaker Change: Yeah, thanks, Mark. On the market share gains, I think I said in my prepared remarks,

Jeremy Wacksman: Yeah, thanks, Mark. On market share gains, I think I said in my prepared remarks, the way we're measuring that is revenue per total transaction value growth. And in the oldest enhanced markets where we have the most data and we have good year-over-year growth, which we've given you an update on earlier this year, we said we were up 50% year over year. And that growth has accelerated to 80% year over year in those first four.

Jeremy Wacksman: Yeah, thanks, Mark. On market share gains, I think I said in my prepared remarks, the way we're measuring that is revenue per total transaction value growth. And in the oldest enhanced markets where we have the most data and we have good year-over-years, which we've given you an update on earlier this year, we said we were up 50% year-over-year. And that growth has accelerated to 80% year-over-year in those first four. And then in the 13 that we've been in since Q1, we don't have year-over-years yet, but the early trend line is gains in revenue per total transaction value across those 13.

Jeremy Wacksman: You know, the way we're measuring that is revenue per total transaction value growth and in the first, in the oldest enhanced markets where we have the most data and we have good year-over-years, which we've given you an update on earlier this year, we said we were up 50%.

Jeremy Wacksman: year-over-year, that growth has accelerated to 80% year-over-year in those first four.

Mark Mahaney: That growth has accelerated to 80% year over year in those first four. And then in the 13 we've been in since Q1, we don't have year over years yet. But the early trend line is gains in revenue per total transaction by crosses 13. So that curve looks similar to us as we get into next year, we'll have year over year is on more markets. So that's, that's what gives us confidence that as we take this recipe, this housing super app in your experience to more partners in each market and to more markets will see that same trend line of share in revenue per total transaction value grow the way we're seeing it in our for original markets.

Jeremy Wacksman: And then in the 13 that we've been in since Q1, we don't have year over years yet, but the early trend line is gains in revenue per total transaction value across those 13. So that curve looks similar to us. As we get into next year, we'll have year over years on more markets. So that's what gives us confidence that as we take this recipe, this housing super app, integrated experience to more partners in each market and to more markets, we'll see that same trend line of share in revenue per total transaction value grow the way we're seeing it in our four original markets. Yeah.

Jeremy Wacksman: And then in the 13 that we've been in since Q1, we don't have year-over-years yet, but the early trend line is gains in revenue per total transaction value across those 13. So that curve looks similar to us. As we get into next year, we'll have year-over-years on more markets. So that's what gives us confidence that as we take this recipe, this Housing Super App Integrated Experience to more partners in each market and to more markets, we'll see that same trend line of share in revenue per total transaction value grow the way we're seeing it in our four original markets.

Jeremy Wacksman: So that curve looks similar to us. As we get into next year, we'll have year-over-years on more markets. So that gives us confidence that as we take this recipe, this housing super app, integrated experience to more partners in each market and to more markets, we'll see that same trend line of share in revenue per total transaction value grow the way we're seeing it in our four original markets.

Jeremy Hofmann: So that curve looks similar to us as we get into next year. We'll have year-to-year is on more markets, so that's what gives us confidence that as we take this recipe, this housing super app integrated experience to more partners in each market and to more markets, we'll see that same trend line of share in revenue per total transaction value grow the way we're seeing it in our four original markets. And Mark, I'll just pile on a bit as Jeremy Hoffman, Jeremy Wacken said it, we were at 50% in the first four markets we grew revenue in 2023, 50% versus total transaction value, and we're now at 80% through 18 months of that, so you're seeing a consistent steady growth.

Jeremy Hofmann: Yeah, and Mark, I'll just pile on a bit as Jeremy Hofmann, you know, Jeremy Wacksman said it. We were at 50% in the first four markets where we grew revenue in 2023, 50% versus total transaction value. And we're now at 80%, you know, through 18 months of that. So you're seeing consistent, steady growth. And then on top of that, you know, we saw really good results in our oldest markets, which we put in the investor deck we did in February, where in Phoenix and Atlanta, over, you know, call it a two-year period, we saw 80 and 90% transaction growth during that period of time, which, you know, is effective; it's close to double.

Jeremy Hofmann: Mark, I'll just pile on a bit. It's Jeremy Hofmann. You know, Jeremy Wacksman said it. We were at 50% in the first four markets we grew revenue in 2023, 50% versus total transaction value. And we're now at 80%, you know, through 18 months of that. So you're seeing a consistent, steady growth.

Mark Mahaney: Mark I'll just pile on a bit is Jeremy Hoffman, you know Jeremy Wacken said it, we were at 50% in the first four markets we grew revenue in 2023 50% versus total transaction value and we're now at 80% you know through 18 months of that. So you're seeing a consistent steady growth. And then on top of that, you know, we saw really good results in our oldest markets, which we put in the investor deck, we did in February, where in Phoenix and Atlanta over, you know, call it two year period, we saw 80 and 90% transaction growth during that period of time, which is effectively is close to double.

Jeremy Hofmann: And then on top of that, we saw really good results in our oldest markets, which we put in the investor deck we did in February, where in Phoenix and Atlanta, over, call it two-year period, we saw 80% and 90% transaction growth during that period of time, which is close to double. So those are the types of proof points that make us feel quite good, and why UCS accelerating the way that we have going from 19 to 36 pretty quickly is just because we keep seeing really solid results that we think sets us up quite well for continued future growth.

Jeremy Hofmann: And then on top of that, you know, we saw really good results in our oldest markets, which we put in the investor deck we did in February , where in Phoenix and Atlanta over, you know, call it two-year period, we saw 80 and 90% transaction growth during that period of time, which, you know, is close to double. So those are the types of proof points that make us feel quite good. And why you see us accelerating the way that we have going from 19 to 36 pretty quickly is just because we keep seeing, you know, really solid results that we think sets us up quite well for, you know, continued future growth.

Jeremy Hofmann: So those are the types of proof points that make us feel quite good. And why you see us accelerating the way that we have gone from 19 to 36 pretty quickly, just because we keep seeing really solid results that we think set us up quite well for, you know, continued future growth. Okay, thank you very much.

Jeremy Hofmann: So those are the types of proof points that make us feel quite good and why you see us accelerating the way that we have gone from 19 to 36 pretty quickly, just because we keep seeing really solid results that we think set us up quite well for, you know, continued future growth.

Mark Mahaney: So those are the types of proof points that make us feel quite good and why you see us accelerating the way that we have going from 19 to 36 pretty quickly is just because we keep seeing, you know, really solid results that we think sets us up quite well for, you know, continued future growth.

Ryan McKeveny: Okay, thank you very much.

Speaker Change: Okay, thank you very much.

Ryan McKeveny: Our next question comes from Ryan McKevany from Zelman. Hey guys, congrats, Jeremy and Rich. Nice job on the quarter. Quarter, thanks for taking the questions. I wanted to ask from a macro perspective around first-time buyers, so there's been periods in the past where that was called out as a tailwind. Last quarter, it was mentioned as a headwind within the guidance, and obviously you strongly outperformed that.

Operator: Our next question comes from Ryan McKeveny from Zellman.

Mark Mahaney: Okay, thank you very much. Thanks Mark.

Ryan McKeveny: Thanks, Mark.

Operator: Our next question comes from Ryan McKeveny from Zellman.

Ryan McKeveny: Hey guys, congratulations, Jeremy and Rich. Nice job on the quarter. Thanks for taking the questions.

Ryan McKevany: Our next question comes from Ryan McKevany from the salmon. Hey guys, congrats, Jeremy and Rich, nice job on the quarter quarter. Thanks for taking the questions. I wanted to ask from a macro perspective around first time buyers. So, you know, there's been periods in the past where that was called out as a tailwind last quarter, it was mentioned as a headwind within the guidance and obviously you strongly outperformed that. So it is your sense that this quarter's results came in where they were in spite of a drag that did exist from that first time buyer dynamic or did something maybe change beneath the surface where, you know, that just didn't turn out to be the headwind you might have expected.

Ryan McKeveny: Hey guys, congrats Jeremy and Rich. Nice job on the quarter. Thanks for taking the questions. I wanted to ask from a macro perspective around first-time buyers. So, you know, there's been periods in the past where that was called out as a tailwind. Last quarter it was mentioned.

Ryan McKeveny: I wanted to ask from a macro perspective around first-time buyers. So there have been periods in the past where that was called out as a tailwind. Last quarter, it was mentioned as a headwind within the guidance, and obviously, you strongly outperformed that. So is your sense that this quarter's results came in where they were in spite of a drag that did exist from that first-time buyer dynamic? Or did something maybe change beneath the surface where that just didn't turn out to be the headwind you might have expected? And part two of that is just any views on this dynamic into the third quarter and what's embedded within the guidance there?

Ryan McKeveny: As a headwind within the guidance, and obviously you strongly outperformed that, so is your sense that this quarter's results came in where they were in spite of a drag that did exist from that first-time buyer?

Jeremy Hofmann: So it is your sense that this quarter's results came in where they were in spite of a drag that did exist from that first-time buyer dynamic, or did something maybe change beneath the surface where that just didn't turn out to be the headwind you might have expected? And kind of part two of that is just any views on this dynamic into the third quarter and kind of what's embedded within the guidance there. Yeah, sure. Ryan, I'll take it. It's Jeremy Hofmann. I think the mortgages market was challenged in Q2. We called that out in the May call, and it persisted.

Ryan McKeveny: dynamic or did something maybe change beneath the surface where you know that just didn't turn out to be the headwinds you might have expected and and kind of part two of that is just any views on on this dynamic into the third quarter and kind of what's embedded within the guidance there?

Ryan McKevany: And kind of part two of that is just any views on this dynamic into the third quarter and kind of what's embedded within the guidance there. Yeah, sure. Ryan, I'll take it. It's Jeremy Hofmann. I think the mortgages market was challenged in Q2. We called that out in the May call and it persisted. So we think that it was down mid-single digits year over year versus 3% up for the housing market.

Jeremy Hofmann: Yeah, sure, Ryan, I'll take it. It's Jeremy Hofmann. I think...

Jeremy Hofmann: Yeah, sure. Ryan, I'll take it. It's Jeremy Hofmann.

Jeremy Hofmann: Yeah, sure, Ryan, I'll take it. It's Jeremy Hofmann. I think...

Jeremy Hofmann: I think... The mortgage market was challenged in Q2. We called that out in the May call, and it persisted. So we think that it was down mid single digits year over year versus 3% up for the housing market. So there was a headwind there.

Speaker Change: The mortgages market was challenged in Q2. We called that out in the May call, and it persisted. So we think that it was down mid-single digits year over year versus 3% up for the housing market. So there was a headwind there. We just happened to perform quite well throughout it. And that's a great story for us. It's one that we feel quite good about. And that's a function, really, of us outperforming across the business. I think we really performed well. On the residential side, we had a soft pocket in late March and early April when rates spiked. But then they normalized, and as a result, our MVP marketplace got healthier throughout the quarter, both on new sales and lower term. And then additionally, the conversion occurred.

Jeremy Hofmann: So we think that it was down mid-single digits year over year versus 3% up for the housing market. So there was a headwind there. We just happened to perform quite well throughout it. And that's, you know, that's a great story for us. It's one that we feel quite good about. And you know, that's a function really of us outperforming across the business. I think we really perform well. You know, on the residential side, we had a soft pocket in late March and early April when rates spiked, but then they normalize. And as a result, our MVP marketplace got healthier throughout the quarter, both on new sales and lower terms. And then additionally, the conversion across Premier Agent, both MVP and Flex, was stronger than we anticipated.

Jeremy Hofmann: We just happened to perform quite well throughout it. And that's a great story for us. It's one that we feel quite good about. And that's a function really of us outperforming across the business. I think we really perform well.

Ryan McKevany: So there was a headwind there. We just happened to perform quite well throughout it. And that's a great story for us. It's one that we feel quite good about. And that's a function really of us outperforming across the business. I think we really perform well. On the residential side, we had a soft pocket in late March and early April when rates spiked. But then they normalize and as a result, our MVP marketplace got healthier throughout the quarter, both on new sales and lower terms.

Jeremy Hofmann: On the residential side, we had a soft pocket in late March and early April when rates spiked, but then they normalized, and as a result, our MVP marketplace got healthier throughout the quarter, both on new sales and lower terms. And additionally, the conversion across Premier Agent, both MVP, and Flex, was stronger than we anticipated, and that flowed through right to revenue. And then on the rest of the residential side, showcase is growing nicely. The new construction marketplace is growing nicely, and follow-up boss is outperforming what we expected in the early days of the acquisition. And then you have mortgages and rental properties.

Ryan McKevany: And then additionally, the conversion across premier agent, both MVP and Lex was stronger than we anticipated. And that flowed through, you know, right to revenue. And then on the rest of the residential side, showcases growing nicely. The new construction market place is growing nicely. And follow up boss is outperforming what we expected in early days of the acquisition. And then you have mortgages and rentals. Obviously, Jeremy's talked a bit about that already, but rentals was up 29%.

Jeremy Hofmann: And that flowed through, you know, right to revenue. And then on the rest of the residential side, showcases growing nicely. The new construction marketplaces growing nicely and follow up bosses out performing what we expected in early days of the acquisition. And then you have mortgages and rentals. Obviously, Jeremy's talked a bit about that already, but rentals was up 29%. Multi-family was up 44%. And then, you know, DHL grew 125%. So really, when we look across all of the business in Q2, it felt quite good regardless of what's going on in the first-time home buyer market.

Speaker Change: Jeremy Wacksman, John Campbell, Ronald Josey, Bradley Erickson, Mark Mahaney, Lloyd Walmsley, John Campbell, Ronald Josey, Bradley Berning, Thomas Champion, Christopher Kuntarich, Ryan McKeveny, and then you have mortgages and rentals. Obviously, Jeremy's talked a bit about that already. But rentals is up 29%, multifamily was up 44% and then CHL grew 125%. So really, when we look across all of the business in Q2, it felt quite good, regardless of what's going on in the first-time-homebuyer market. And then, you know, that'd be suffice to say, like...

Jeremy Hofmann: Obviously, Jeremy's talked a bit about that already, but rentals were up 29%, and multifamily was up 44%. And then CHL grew 125%. So really, when we looked across all of the business in Q2, it felt quite good, regardless of what's going on in the first-time home buyer market. And then, I'd be proud to say, on the EBITDA front, we're pretty proud of the consistent ability to accurately forecast and hold ourselves accountable for costs.

Ryan McKevany: Multi-family was up 44%. And then, you know, the CHL grew 125%. So really when we look across all of the business in Q2, it felt quite good, regardless of what's going on in the first time home buyer market. And then, you know, I'd be surprised to say like on the EBITDA front, we're pretty proud of the consistent ability to accurately forecast and hold ourselves accountable on costs. You know, as we tell the team, when we're in a market like this, revenue is harder to forecast, which makes it even more important to be really good on the cost line.

Jeremy Hofmann: And then, you know, I'd be surprised to say, like, on the EBITDA front, we're pretty proud of the consistent ability to accurately forecast and hold ourselves accountable on costs. You know, as we tell the team, when we're in a market like this, revenue is harder to forecast, which makes it even more important to be really good on the cost line. And for Q2, we expected $440 million a cost. We came in at $438 million. So when we outperform on the revenue front, it all flowed through to the EBITDA line. That's very helpful. Thank you, Jeremy.

Speaker Change: On the EBITDA front, we're pretty proud of the consistent ability to accurately forecast and hold ourselves accountable on costs.

Jeremy Hofmann: As we tell the team, when we're in a market like this, revenue is harder to forecast, which makes it even more important to be really good on the cost line. And for Q2, we expected $440 million in costs. We came in at $438 million. So when we outperformed on the revenue front, it all flowed through to the EBITDA line.

Speaker Change: You know, as we tell the team, when we're in a market like this, revenue is harder to forecast, which makes it even more important to be really good on the cost line. And for Q2, we expected $440 million of costs.

Ryan McKevany: And for Q2, we expected $440 million a cost. We came in at $438 million. So when we outperform on the revenue front, it all flowed through to the EBITDA line. That's very helpful. Thank you, Jeremy. And also on the mortgage piece. So obviously, some momentum under the surface there, sequentially and year over year growing nicely, you know, I know there are some moving pieces with the, you know, very significant growth in purchase or imagination volume, but some of the offset on the marketplace side.

Speaker Change: We came in at $438 million, so when we outperformed on the revenue front, it all flowed through to the EBITDA line.

Jeremy Hofmann: That's very helpful. Thank you, Jeremy. And also on the mortgage piece, so obviously, some momentum under the surface there sequentially and year over year, growing nicely. You know, there are some moving pieces with the, you know, very significant growth in purchase origination volume but some of the offset on the marketplace side. Can you just remind us where the marketplace stands at this point, both strategically in terms of where that fits in, maybe in terms of loan products or differences against ZHL and, you know, just kind of Yeah, Ryan, I can take it. It's Jeremy.

Jeremy Hofmann: And also on the mortgage piece. So obviously some some some momentum under the surface there sequentially in year-over-year growing nicely. You know, I know there are some moving pieces with the very significant growth and purchase origination volume, but some of the offset on the marketplace side. Can you just remind us where the marketplace, you know, stands at this point, both strategically in terms of where that fits in maybe in terms of loan products or differences against the HL.

Ryan McKeveny: That's very helpful. Thank you, Jeremy. And also on the mortgage piece, so obviously some momentum under the surface there sequentially and year over year growing nicely. You know, I know there are some moving pieces with the, you know, very significant growth in purchase origination volume.

Ryan McKeveny: but some of the offset on the marketplace side. Can you just remind us where the marketplace...

Ryan McKevany: Can you just remind us where the marketplace, you know, stands at this point, both strategically in terms of where that fits in, maybe in terms of loan products or differences against CHL. And, you know, just kind of how you think of that mix between between CHL and marketplace moving forward. Yeah, Ryan, I can take it to that, you know, the bulk of the business going forward is going to be Zilla Home Loans.

Ryan McKeveny: You know, stands at this point, both strategically in terms of where that fits in, maybe in terms of loan products or differences against ZHL, and, you know, just kind of how you think of that mix between ZHL and marketplace moving forward.

Jeremy Hofmann: And, you know, just kind of how you think of that mix between the HL and marketplace moving forward. Yeah, Ryan, I can take it to Jeremy Hoffman, and then Jeremy Westman may pile in as well. But I think, you know, that you're right that, you know, the bulk of the business going forward is going to be Zillow Homelones. So you see the mortgage category starts a more accurately mapped to the Zillow homelones growth. That's not to say the marketplace is important to it's just secondary. You know, they're going to be inevitably, they're going to be times in which we can't service a customer through Zillow Homelones, and we like having the marketplace as a way to serve customers regardless.

Jeremy Hofmann: Yeah, Ryan, I can take it as Jeremy Hofmann, and then Jeremy Wacksman may pile in as well. But I think that you're right that the bulk of the business going forward is going to be Zillow home loans. So you see the mortgage category start to more accurately map to Zillow's home loans growth. That's not to say the marketplace isn't important, either; it's just secondary. There are going to be, inevitably, times in which we can't service a customer through Zillow home loans, and we like having the marketplace as a way to serve customers regardless, right?

Jeremy Hofmann: Yeah, Ryan, I can take it as Jeremy Hofmann, and then Jeremy Wacksman may pile in as well. But I think that you're right that the bulk of the business going forward is going to be Zillow Home Loans. So you see the mortgage category start to more accurately map to Zillow Home Loans growth. That's not to say the mortgage marketplace isn't important, either; it's just secondary. There are going to be, inevitably, times in which we can't service a customer through Zillow Home Loans, and we like having the marketplace as a way to serve customers regardless, right?

Jeremy Hofmann: Yeah, Ryan, I can take it as Jeremy Hofmann, and then Jeremy Wacksman may pile in as well. But I think that you're right that the bulk of the business going forward is going to be Zillow Home Loans. So you see the mortgage category start to more accurately map to the Zillow Home Loans growth. That's not to say the marketplace isn't important too, it's just secondary. There are going to be, inevitably, there are going to be times in which we can't service a customer through Zillow Home Loans. And we like having the marketplace as a way to serve customers regardless, right? We're always about customer choice and making sure that in financing, we're providing customer choice as well. So we feel quite good about both of those businesses, but the vast majority of the focus

Ryan McKevany: So you see the mortgage category starts a more accurately mapped to the Zilla Home Loans growth. That's not to say the marketplace isn't important too. It's just secondary. You know, there are going to be inevitably, there are going to be times in which we can't serve as a customer through Zilla Home Loans. And we like having the marketplace as a way to serve customers regardless. Right. We're always about customer choice and making sure that in financing, we're providing customer choice as well. So we feel quite good about both of those businesses, but the vast majority of the focus going forward is going to be in Zilla Home Loans.

Jeremy Hofmann: Right. We're always about customer choice and making sure that in financing we're providing customer choice as well. So we feel quite good about both of those businesses, but the vast majority of the focus going forward is going to be in Zillow Homelones.

Jeremy Hofmann: We're always about customer choice and making sure that in financing, we're providing customer choice as well. So we feel quite good about both of those businesses, but the vast majority of the focus going forward is going to be on Zillow home loans.

Ryan McKeveny: God, it thinks a lot.

Jeremy Hofmann: going forward is going to be in Zillow Homeless.

John Campbell: Our next question comes from John Campbell from Stevens. Hey guys and Rich, congrats on helping position the business for a pretty promising set up here in the years ahead.

Operator: Our next question comes from John Campbell from Stevens.

John Campbell: Got it. Thanks a lot.

Ryan McKevany: God, it's thanks for Our next question comes from John Campbell from Stevens. Hey guys and Rich Congrats on helping position the business for a pretty promising set up here in the years ahead. Glad you'll be able to see it through on the board seat and then of course you're asked you, Jeremy well deserved, but a two-part question here first on the touring agreement. You know you guys called out early indicators of success in your pilot.

Operator: Our next question comes from John Campbell from Stevens.

John Campbell: Hey, guys, and Rich, congrats on helping position the business for a pretty promising setup here in the years ahead. Glad you'll be able to see it through on the board seat. And then, of course, congratulations to you, Jeremy. Well-deserved.

John Campbell: Hey guys, and Rich, congrats on helping position the business for a pretty promising setup here in the years ahead. Glad you'll be able to see it through on the board seat. And then, of course, congrats to you, Jeremy, well-deserved.

John Campbell: Glad you'll be able to see it through on the board seat. And then, of course, you're asked, you, Jeremy, well deserved.

Ryan McKevany: I think you also you know for the last couple years have said that touring connections have converted it three times of the rate. I've got to believe that touring agreement probably boosts that conversion rates. It's you know it's obviously signaling even more or greater content. Maybe if you could talk go a little bit deeper into what you're seeing this far and then I've got one more quick one on Zillow home loans.

John Campbell: But a two-part question here: first on the touring agreement. You know, you guys called out early indicators of success in your pilot. I think you also, you know, for the last couple of years have said that touring connections have converted it three times the rate. I've got to believe that touring agreement probably boosts that conversion rates. It's, you know, it's obviously signaling even more or greater, you know, intent. Maybe if you could talk, go a little bit deeper into what you're seeing this far.

John Campbell: But a two-part question here. First, on the touring agreement, you know, you guys called out early indicators of success in your pilot. I think you also, you know, for the last couple of years have said that touring connections have converted at three times the rate. I've got to believe that touring agreements probably boost those conversion rates. It's, you know, it's obviously signaling even more or greater intent. Maybe if you could talk, go a little bit deeper into what you're seeing thus far. And then I've got one more quick one on Zillow home loans.

John Campbell: But a two-part question here. First, on the touring agreement, you know, you guys called out early indicators of success in your pilot.

John Campbell: I think you also, you know, for the last couple of years have said that touring connections have converted at three times the rate. I've got to believe that touring agreement probably boosts that conversion rates. It's, you know, it's obviously signaling even more or greater, you know, intent. Maybe if you could talk, go a little bit deeper into what you're seeing thus far, and then I've got one more quick one on Zillow home loans.

Jeremy Wacksman: And then I've got one more quick one on Zillow Home Loans. Yeah, thanks, John. Thanks for the congrats and on touring. You're right. We continue to see touring actions convert higher than any other action on Zillow. And our expectation is the touring agreement will be a net benefit to conversion because it's in the flow post introduction. And so it's just education and a helpful qualification. And the pilot was small. We saw basically no negative to like likely positive impact there as we started to engage consumers. And so that's what gave us the confidence to roll it out to take it to now almost 80% of connections.

John Campbell: Yeah. Thanks, John. Thanks for the congratulations.

Jeremy Wacksman: Yeah, thanks, John. Thanks for the congrats.

John Campbell: Yeah. Thanks, John . Thanks for the congrats and on touring.

Ryan McKevany: Yeah thanks John. Thanks for the congrats on touring. You're right. We continue to see touring actions convert higher than any other action on Zillow and our expectation is the touring agreement will be a net benefit to conversion because it's it's in the flow post introduction and so it's just education and a helpful qualification and the pilot was small. We saw basically no negative to like likely positive impact there as we started to engage consumers and so that's what gave us the confidence to roll it out to take it to now almost 80% of connections and we expect to get to all eventually.

Jeremy Wacksman: And on Turing, you're right, we continue to see Turing actions convert higher than any other action on Zillow. And our expectation is the Turing agreement will be a net benefit to conversion because it's in the flow post-introduction, and so it's just education, and it's a helpful qualification. And the pilot was small; we saw basically no negative to likely positive impact as we started to engage consumers. And so that's what gave us the confidence to roll it out to take it to now almost 80% of connections, and we expect to get to all eventually.

Speaker Change: You're right. We continue to see touring actions convert higher than any other action on Zillow and our expectation is the touring agreement will be a net benefit to conversion because it's it's in the flow post-introduction and so it's just education and it's helpful qualification and the pilot was small we saw

Jeremy Wacksman: And on touring, you're right. We continue to see touring actions convert higher than any other action on Zillow. And our expectation is the touring agreement will be a net benefit to conversion because it's in the flow post-introduction, and so it's just education, and it's a helpful qualification. And the pilot was small.

Jeremy Wacksman: Basically no negative to likely positive impact there as we started to engage consumers. And so that's what gave us the confidence to roll it out, to take it to now almost 80% of connections. And we expect to get to all eventually. So, you know, I think you nailed the idea of...

Jeremy Wacksman: And we expect to get to all eventually. So, you know, I think you nailed the idea of education to the consumer, done in a consumer-friendly way, helps get that consumer more informed before they get to the tour and makes it more likely that they want to work with the agent. As you know, having worked with us and followed us for a long time, the lag on seeing that data and transactions is long, right? So a pilot market, a tour experience measuring transaction rates with those agents, is going to be a period of quarters and quarters and quarters.

Jeremy Wacksman: So I think you nailed the idea of education for the consumer done in a consumer-friendly way helps get that consumer more informed before they get to the tour and makes it more likely that they'll want to work with the agent. But as you know, having worked with us and followed us for a long time, the lag on seeing that data and transactions is long, right? So a pilot market, a tour experience, measuring transaction rates with those agents is going to be a period of quarters and quarters and quarters. But the early indicator data gave us confidence that this was a good thing, and that's why we proceeded so rapidly to roll it out.

Jeremy Wacksman: We saw basically no negative to likely positive impact as we started to engage consumers. And so that's what gave us the confidence to roll it out, to take it to now almost 80% of connections, and we expect to get to all eventually. So I think you nailed the idea of education for the consumer done in a consumer-friendly way helps get that consumer more informed before they get to the tour and makes it more likely that they'll want to work with the agent.

Ryan McKevany: So you know I think you nailed the idea of education to the consumer done in a consumer friendly way helps get that consumer more informed before they get to the tour and makes it more likely that they want to work with the agent as you know having worked with us and followed us for a long time. The lag on seeing that data and transactions as long right so a pilot market a tour experience measuring transaction rates with those agents is going to be a period of quarters and quarters and quarters but the early indicator data gave us confidence that this is a good thing and that's why we proceeded so rapidly to roll it out.

Jeremy Wacksman: education to the consumer done in a consumer-friendly way helps get that consumer more informed before they get to the tour and makes it more likely that they'll want to work with the agent. As you know, having worked with us and followed us for a long time, the lag on seeing that data and transactions is long, right? So a pilot market, a tour experience, measuring transaction rates with those agents is going to be a period of quarters and quarters and quarters, but the early indicator data gave us confidence that this is a good thing and that's why we proceeded so rapidly to roll it out.

Jeremy Wacksman: As you know, having worked with us and followed us for a long time, the lag time for seeing that data and transactions is long, right? So a pilot market, a tour experience, measuring transaction rates with those agents is going to be a period of quarters and quarters and quarters. But the early indicator data gave us confidence that this was a good thing, and that's why we proceeded so rapidly to roll it out.

Jeremy Wacksman: But the early indicator data gave us confidence that this is a good thing. And that's why we proceeded to rapidly to roll it out.

Jeremy Wacksman: Okay, that's great to hear. And then on Zillow home loans, I mean, obviously refi was, I think about half of the origination mix two years ago. That dropped to 1% last year. So I think it's probably a good problem you're having as far as capacity issues are concerned. It seems like you got an exorbitant amount of demand for purchase, but I'm just curious about how you're thinking about the staffing, how you're thinking about, you know, if there is a degree of a mini refi wave, if you feel like you can participate in that in a year or so.

Jeremy Wacksman: Okay, that's great to hear. And then on Zillow home loans, I mean, obviously refi was, I think, about half of the origination mix two years ago; that dropped to 1% last year.

Jeremy Hofmann: Okay, let's get to here. And then on the zoolahomones, I mean, obviously, ReFi was I think about half of your origination mix two years ago that dropped to 1% last year. So I think it's probably a good problem you're having as far as like capacity issues. It's something like you got an exorbitant amount of demand on purchase. But I'm just curious about how you're thinking about the staffing, how you're thinking about, you know, if there is a, you know, degree of a mini ReFi wave, if you feel like you can participate in that year or so ahead.

Jeremy Wacksman: Okay, that's great to hear. And then on the Zillow home loans, I mean, obviously refi was, I think, about half of the origination mix two years ago. That dropped to 1% last year. So I think it's probably a good problem you're having as far as, like, capacity issues. It seems like you got an exorbitant amount of demand on purchase. But I'm just curious about how you're thinking about the staffing, how you're thinking about, you know, if there is a, you know, degree of a mini refi wave, if you feel like you can participate in that in a year or so ahead.

Ryan McKevany: Okay let's get to here and then on the zoolohomones I mean obviously ReFi was I think about half of your origination mix two years ago that dropped to 1% last year so I think it's probably a good problem you're having as far as like capacity issues it's something like you got an exorbitant amount of demand on purchase but I'm just curious about how you're thinking about staffing how you're thinking about you know if there is a you know degree of a mini ReFi wave if you feel like you can participate in that in the year or so ahead. Yeah I mean our focus has been on purchase not just because of the where the ReFi market was and I think it were made on purchase and that's just because of what we've talked about as our opportunity right you've heard us talk a lot about I mean everything we've said about the integrated transaction and the benefits for the consumer it is for the home buyer and our ability to go have more and more customers who either start by asking that purchase financing question or ask that go shop question end up getting exposure to our great agents and our great financing options you know that's a demand that we won't tap out of for a long time and that's what we're methodically scaling both in our hand market strategy as you were out more in hand markets but also digitally to our consumers that come to the website and actually want to start with what can I afford this is a tough market question so we are I think in a privileged position to be able to go build you know durable growth in the mortgage business really focused on purchase and we're excited about how we did in Q2 and we're excited about our plans for Q3 Indeed. Thanks for the time, guys.

Jeremy Wacksman: So I think it's probably a good problem you're having as far as capacity issues are concerned. It seems like you have an exorbitant amount of demand for purchase. But I'm just curious about how you're thinking about the staffing, how you're thinking about, you know, if there is a degree of a mini refi wave, if you feel like you can participate in that in a year or so ahead.

Jeremy Hofmann: Yeah, I mean, our focus has been on purchase, not just because of the where the ReFi market was, and I think it will remain on purchase. And that's just because of what we've talked about as our opportunity, right? You've heard us talk a lot about; I mean, everything we've said about the integrated transaction and the benefits for the consumer, it is for the home buyer. And our ability to go have more and more customers who either start by asking that purchase financing question or ask that go shop question, end up getting exposure to our great agents and our great financing options. You know, that's demand that we won't tap out of for a long time.

Speaker Change: Yeah, I mean, our focus has been on purchase, not just because of the where the refi market was, and I think it will remain on purchase. And that's just because of what we've talked about as our opportunity, right? You've heard us talk a lot about, I mean, everything we've said about the integrated transaction and the benefits for the consumer, it is for the home buyer. And our ability to go have more and more customers who either start by asking that purchase financing question or ask that go shop question, end up getting exposure to our great agents and our great financing options. That's demand that we won't tap out of for a long time. And that's what we're methodically scaling, both in our enhanced market strategy as we roll out more enhanced markets, but also digitally to our consumers that come to the website and actually want to start with, what can I afford? This is a tough market question. So

Jeremy Wacksman: Yeah, I mean, our focus has been on purchase, not just because of where the refi market was, and I think it will remain on purchase. And that's just because of what we've talked about as our opportunity, right?

John Campbell: Next, John.

Jeremy Wacksman: You've heard us talk a lot about, I mean, everything we've said about the integrated transaction and the benefits for the consumer is for the home buyer. And our ability to have more and more customers who either start by asking that purchase financing question or ask that go shop question end up getting exposure to our great agents and our great financing options. That's demand that we won't tap out of for a long time, and that's what we're methodically scaling, both in our enhanced market strategy as we roll out more enhanced markets, but also digitally to our consumers that come to the website and actually want to start with a "what can I afford?" question, which is a tough market question.

Jeremy Hofmann: And that's what we're methodically scaling. Both in our hands market strategy, we're all more in hands markets, but also digitally to our consumers that come to the website and actually want to start with the, what can I afford? This is a tough market question. So we are, I think, in a privileged position to be able to go build, you know, durable growth in the mortgage business, really focused on purchase. And we're excited about how we did in Q2, and we're excited about our plans for Q3.

Jeremy Wacksman: So we are, I think, in a privileged position to be able to build durable growth in the mortgage business, really focused on purchase. And we're excited about how we did in Q2, and we're excited about our plans for Q3.

Speaker Change: We are, I think, in a privileged position to be able to go build, you know, durable growth in the mortgage business, really focused on purchase. And we're excited about how we did in Q2, and we're excited about our plans for Q3.

Jeremy Wacksman: Indeed. Thanks for the time, guys. Thanks, John.

Ryan McKeveny: Indeed. Thanks for the time, guests.

Speaker Change: Indeed. Thanks for the time, guys.

John Colantuoni: Our next question comes from John Colantuoni from Jeffries. Hey, can you hear me? Yes, we got you, John. Okay, great. Thanks for the questions. So, I wanted to just start with the housing market. I was hoping you could unpack the outlook for mid-single digital growth and residential housing transactions during the third quarter, with pending sales down 8% in June. I'm just curious if your outlook incorporates an assumption that the market bounces back a bit in August and September based on potentially recent pickup and activity. And second, it looks like your outlook for the residential revenue segment implies a bit of underperformance for the, for mere agent business relative to your mid-single digital housing market outlook.

Operator: Our next question comes from John Colantuoni of Jeffries.

John Campbell: Thanks, John.

Jeremy Wacksman: Our next question comes from John Calentoni from Jefferies.

John Campbell: Our next question comes from John Colantuoni from Jeffries. Hey, can you hear me? Yes, we got you, John. Okay, great. Thanks for the questions. So, I wanted to just start with the housing market. I was hoping you could unpack the outlook for mid-single digit growth and residential housing transactions during the third quarter with pending sales down 8% in June. I'm just curious if you're out looking incorporates an assumption that the market bounces back a bit in August and September based on potentially recent pickup and activity.

John Colantuoni: Yes, we got you, John. Okay, great. Thanks for the questions. So I wanted to just start with the housing market. I was hoping you could unpack the outlook for mid-single-digit growth in residential housing transactions during the third quarter with pending sales down 8% in June. I'm just curious if your outlook incorporates an assumption that the market bounces back a bit in August and September based on a potentially recent pickup in activity

Speaker Change: Hey, can you hear me?

Jeremy Wacksman: Yes, we got you, John . Okay, great. Thanks for the questions.

Speaker Change: So, I wanted to just start with the housing market. I was hoping you could...

Speaker Change: Unpack the Outlook for Mid-Single-Digit Growth in Residential Housing Transactions during the third quarter with pending sales down 8% in June . I'm just curious if

John Colantuoni: And second, it looks like your outlook for the residential revenue segment implies a bit of underperformance for the premier agent business relative to your mid-single-digit housing market outlook, if you exclude the M&A tailwind from follow-up boss. Can you just talk about the drivers of that underperformance and maybe if you've embedded some room for upside in that assumption?

Speaker Change: Your Outlook incorporates an assumption that the market bounces back a bit in August and September based on

Speaker Change: potentially a recent pickup in activity.

Speaker Change: And second, it looks like your outlook for the residential revenue segment implies

John Campbell: And second, it looks like you're outlook for the residential revenue segment implies a bit of underperformance for a mere agent business relative to your mid-single digit housing market outlook. If you exclude the M&A tailwind from follow-up boss, can you just talk about the drivers of that underperformance and maybe if you've embedded some room for upside and that assumption. Thanks. Yeah, thanks, John.

Speaker Change: A bit of underperformance for mere agent business relative to your mid-single-digit housing market outlook if you exclude the M&A tailwind from follow-up costs. Can you just...

John Colantuoni: If you exclude the, the M&A tailwind from Follow Up Boss, can you just talk about the drivers of that underperformance and maybe if you've embedded some room for upside and that assumption? Thanks. Yeah, thanks, John. Jeremy Hofmann, so I'll take it. You know, similar to what we said in the past, we don't really over-focus on the quarter-to-quarter fluctuations given how fluid macro has been and will continue to be. We're pleased that we've outperformed the industry by 2,000 basis points in residential over the last two years. And that's really a credit to the product experiences that we're driving, the conversion gains we're driving, and the partner experiences that we're driving.

Speaker Change: Talk about the drivers of that underperformance and maybe if you've embedded some room for upside in that assumption. Thanks

Jeremy Hofmann: Yeah, thanks, John. It's Jeremy Hofmann, so I'll take it.

Jeremy Hofmann: Thank you. Yeah, thanks, John. Jeremy Hoffman. So I'll take it.

Jeremy Hofmann: Yeah, thanks, John . It's Jeremy Hofmann, so I'll take it. You know, similar to what we've said in the past, we don't really over-focus on the quarter-to-quarter fluctuations, given how fluid macro has been and will continue to be. We're pleased that we've outperformed the industry by 2,000 basis points in residential over the last two years, and that's really a credit to the product experiences that we're driving, the conversion gains we're driving, and the partner experiences that we're driving. You know, at the same time, we are seeing healthy growth versus that mortgage market. So, that was called out earlier in the...

Jeremy Hofmann: Similar to what we've said in the past, we don't really overfocus on the quarter-to-quarter fluctuations, given how fluid macro has been and will continue to be. We're pleased that we've outperformed the industry by 2,000 basis points in residential over the last two years, and that's really a credit to the product experiences that we're driving, the conversion gains we're driving, and the partner experiences that we're driving At the same time, we are seeing healthy growth versus the mortgage market, so that was called out earlier in the call.

Jeremy Hofmann: Jeremy Hofmann, so I'll take it. Similar to what we've said in the past, we don't really over focus on the quarter to quarter fluctuations given how fluid macro has been and will continue to be. We're pleased that we've outperformed the industry by 2000 basis points in residential over the last two years. And that's really a credit to the product experiences that we're driving, the conversion gains we're driving and the partner experiences that we're driving.

Jeremy Hofmann: You know, at the same time, we are seeing healthy growth versus that mortgage market, so that was called out earlier in the call. You know, that's where we tend to index our customer base, tend to index, and those folks are struggling comparatively. So they, the first time home buyer, if you measure it by the mortgage market, is, you know, underperforming 800 to 1000 basis points per in Q2. And we think those trends probably continue into Q3. So I think we feel all in quite good about where the business is, knowing that that's out there. And I think most important is just the consistent outperformance we've had across both residential and the total company.

Jeremy Hofmann: You know, at the same time, we are seeing healthy growth versus that mortgage market. So, that was called out earlier in the in the call. You know, that's where we tend to index our customer based 10th index. And those folks are struggling comparatively. So they, the first time home buyer, if you measure it by the mortgage market, is, you know, underperforming 800 to 1000 basis points per in Q2. And we think those trends probably continue into Q3.

Jeremy Hofmann: That's where we tend to index, our customer base tends to index, and those folks are struggling comparatively. The first-time home buyer, if you measure it by the mortgage market, is underperforming by 800 to 1,000 basis points in Q2, and we think those trends will probably continue into Q3.

Jeremy: in the call, you know, that's where we tend to index, our customer base tends to index. And those folks are struggling comparatively. So they, the first time homebuyer, if you measure it by the mortgage market, is, you know, underperforming 800 to 1000 basis points per in Q2. And we think those trends probably continue into Q3. So I think we feel all in quite good about where the business is knowing that that's out there. And I think most important is just the consistent outperformance we've had across both residential and the total company. We expect to continue to do so as we roll out our enhanced markets and see success there, right? Jeremy's talked a lot about that, but that's a really important piece to the future story. And we're just getting started rolling markets out. And, you know,

Jeremy Hofmann: So, I think we feel all quite good about where the business is, knowing that it's out there, and I think most important is just the consistent outperformance we've had across both residential and the total company. We expect to continue to do so as we roll out our enhanced markets and see success there. Jeremy's talked a lot about that, but that's a really important piece to the future story, and we're just getting started rolling markets out.

Jeremy Hofmann: So I think we feel all in quite good about where the business is knowing that that's out there. And I think most important is just the consistent outperformance we've had across both residential and the total company. We expect to continue to do so as we roll out our enhanced markets and see success there, right? Jeremy's talked a lot about that, but that's a really important piece to the future story and we're just getting started rolling markets out.

Jeremy Hofmann: We expect to continue to do so as we roll out our enhanced markets and see success there. Jeremy's talked a lot about that, but that's a really important piece to the future story, and we're just getting started rolling markets out. And, you know, I will kind of step back and remind you all, you know, Q1, we were up 13% year over year. As a company, Q2, we were up 13% year over year. Our outlet calls for a revenue range of 10 to 13% for Q3. We're clearly well on our way to double-digit revenue growth in 2024 and margin expansion.

Jeremy Hofmann: I will step back and remind you all, in Q1, we were up 13% year-over-year. As a company, in Q2, we were up 13% year-over-year. Our outlet calls for a revenue range of 10% to 13% for Q3. We're clearly well on our way to double-digit revenue growth in 2024 and margin expansion, and it's been a rough housing market. So, we sit there and feel like the business is really well-positioned despite all that. Great, thanks so much.

Jeremy Hofmann: And, you know, I will kind of step back and remind you all, you know, Q1, we were up 13% year over year. As a company, Q2, we were up 13% year over year. Our outlet calls for a revenue range of 10 to 13% for Q3. We're clearly well on our way to double digit revenue growth in 2024 and margin expansion. And it's been a rough housing market. So we sit there and feel like the business is really well positioned despite all that.

Speaker Change: I will kinda step back and remind y'all.

Speaker Change: You know, Q1, we were up 13% year over year. As a company, Q2, we were up 13% year over year. Our outlet calls for a revenue range of 10 to 13% for Q3. We're clearly well on our way to double-digit revenue growth in 2024 and margin expansion, and it's been a rough housing market. So we sit there and feel like the business is really well-positioned despite all that.

Tom Champion: Great. Thanks so much.

John Champion: And it's been a rough housing market. So we sit there and feel like the business is really well positioned despite all that. Great. Thanks so much.

Thomas Champion: Our next question comes from Tom Champion from Piper Sandler. Hi guys. Good afternoon. Hopefully, you can hear me as well.

Operator: Our next question comes from Tom Champion on behalf of Piper Sandler. Hi, guys. Good afternoon. Hopefully, you can hear me as well.

Thomas Champion: Our next question comes from Tom Champion on Piper Sandler.

Speaker Change: Great, thanks so much.

Jeremy Wacksman: Our next question comes from Tom Champion from Piper Sandler.

Tom Champion: Our next question comes from Tom Champion from Piper Sandler. Hi guys. Good afternoon. Hopefully you can hear me as well.

Speaker Change: Hi guys, good afternoon. Hopefully you can hear me as well.

Thomas Champion: Jeremy, as you take the baton as CEO. What's your top goal for the business over the medium term? What are you looking to achieve?

Jeremy Wacksman: Jeremy, as you take the baton as CEO

Jeremy Wacksman: Jeremy, as you take the baton as CEO, what's your top goal for the business over the medium term? What are you looking to achieve?

Speaker Change: What's your top goal for the business over the medium term? What are you looking to achieve? Then maybe for Jeremy Hofmann, can you talk about the margin profile associated with enhanced markets? Does this get you closer to gap profitability? Thanks.

Jeremy Hofmann: And then maybe for Jeremy Hoffman. Can you talk about the margin profile associated with enhanced markets? Does this get you closer to gap profitability? Thanks. Yeah, I'll start Tom, and maybe Jeremy, you can hit margin profile. I mean, Tom, it's going to sound a little boring, but my focus and strategy is more of what we've been doing. And I think accelerating and continuing to roll out our enhanced market strategy, continuing to grow our rentals business into the opportunity we've let out for you all, continuing to build mortgage into the big business. We know it can be, and then powering all that with the amazing software and technology we are building to help rewire the real estate industry for agents, teams, and brokers writ large like that.

Jeremy Hofmann: And then maybe for Jeremy Hoffman? Can you talk about the margin profile associated with enhanced markets? Does this get you closer to gap profitability?

Jeremy Wacksman: Yeah, I'll start, Tom, and maybe, Jeremy, you can hit the margin profile. I mean, Tom, it's going to sound a little boring, but my focus and strategy are more of what we've been doing. And I think accelerating and continuing to roll out our enhanced market strategy, continuing to grow our rental business into the opportunity we've laid out for you all, continuing to build mortgages into the big business we know they can be, and then powering all that with the amazing software and technology we are building to help rewire the real estate industry for agents, teams, and brokers writ large.

Jeremy Wacksman: Yeah, I'll start, Tom. And maybe, Jeremy, you can hit the margin profile.

Speaker Change: Yeah, I'll start, Tom, and maybe, Jeremy, you can hit margin profile.

Jeremy Hofmann: Thanks. Yeah, I'll start Tom and maybe, Jeremy, you can hit margin profile. I mean, Tom, it's going to sound a little boring, but my focus and strategy is more of what we've been doing. And I think accelerating and continuing to roll out our enhanced market strategy, continuing to grow our rentals business into the opportunity we've let out for you all, continuing to build mortgage into the big business we know it can be, and then powering all that with the amazing software and technology we are building to help rewire the real estate industry for agents teams and brokers writ large like that.

Jeremy Wacksman: I mean, Tom, it's going to sound a little boring, but my focus and strategy is more of what we've been doing. And I think

Jeremy Wacksman: accelerating and continuing to roll out our enhanced market strategy, continuing to grow our rentals business into the opportunity we've laid out for you all, continuing to build mortgage into the big business we know it can be, and then powering all that with the amazing software and technology we are building to help rewire the real estate industry for agents, teams, and brokers writ large. Like, that has been our strategy we've talked to you all about for the last however many calls. You're seeing the early signs and results of that play out in the output numbers, and we're really excited to have more of this come to light so you see more of it in the output numbers in the years to come as we grow into the share target we have for you all, and then grow our business beyond that. So oftentimes when there's a leadership change, there's like a what's going to change question, and the answer is...

Jeremy Wacksman: That has been our strategy we've talked to you all about for the last however many calls. You're seeing the early signs and results of that play out in the output numbers. And we're really excited to have more of this come to light so you see more of it in the output numbers in the years to come as we grow into the share target we have for you all and then grow our business beyond that.

Jeremy Hofmann: That has been our strategy. We've talked to you all about for the last however many calls. You're seeing the early signs and results of that play out in the output numbers, and we're really excited to have more of this come to light so you see more of it in the output numbers in the years to come as we grow into the share target we have for you all and then grow our business beyond that.

Jeremy Hofmann: That has been our strategy. We've talked to you all about for the last however many calls. You're seeing the early signs and results of that play out in the output numbers. And we're really excited to have more of this come to light. So you see more of it in the output numbers in the years to come as we grow into the share target we have for you all and then grow our business beyond that.

Jeremy Wacksman: So often when there's a leadership change, there's like a "what's going to change?" question. And the answer is not much is going to change. We're going to focus on continuing to execute, deliver, scale, and accelerate this into the future.

Jeremy Wacksman: I mean, Tom, it's going to sound a little boring, but my focus and strategy are more on what we've been doing. And I think accelerating and continuing to roll out our enhanced market strategy, continuing to grow our rental business into the opportunity we've laid out for you all, continuing to build mortgages into the big business we know they can be, and then powering all that with the amazing software and technology we are building to help rewire the real estate industry for agents, teams, and brokers writ large.

Jeremy Wacksman: So oftentimes when there's a leadership chain, there's like what's going to change question, and the answer is not much is going to change. We're going to focus on continuing to execute, deliver, scale, and accelerate this into the future.

Jeremy Hofmann: So oftentimes when when there's a leadership chain, there's like a what's going to change question and the answer is not much is going to change. We're going to focus on continuing to execute deliver scale and accelerate this into the future. Yeah, and then I can take the margin question. I think it's less about enhanced markets, you know, on our march to get profitability. It's really around the cost structure we've laid out.

Jeremy Wacksman: Not much is going to change. We're going to focus on continuing to execute, deliver, scale, and accelerate this into the future.

Jeremy Hofmann: Yeah, and then I can take the margin question. I think it's less about enhanced markets, you know, on our march to get profitability. It's really around the cost structure we've laid out. So we have roughly a billion dollars in fixed cost today. We feel like we're pretty well invested there to at least get to our 2025 share targets, and so we expect that to grow kind of modestly with inflation. Variable is 25 to 30% of revenue. That will scale a little faster than revenue when we ramp up, but ultimately that's a good profile, and then the balances in marketing and advertising.

Jeremy Hofmann: Yeah, and then I can take the margin question. I think it's less about enhanced markets. You know, on our march to get profitability, it's really around the cost structure we've laid out. So we have roughly a billion dollars in fixed costs today. We feel like we're pretty well invested there to at least get to our 2025 share targets.

Speaker Change: Yeah, and then I can take the margin question. I think it's less about enhanced markets, you know, on our march to get profitability It's really around the cost structure we've laid out. So we have roughly a billion dollars in fixed costs today We feel like we're pretty well invested there to at least get to our 2025 share targets and so we expect that to grow kind of modestly with inflation Variable is 25 to 30 percent of revenue that will scale a little faster than revenue when we ramp up But ultimately that's a good profile and then the balance is in marketing and advertising So we feel good that you know, if we are controlled on the fixed side, we can grow revenue faster than cost

Jeremy Hofmann: And so we expect that to grow kind of modestly with inflation. The variable is 25 to 30 percent of revenue. That will scale a little faster than revenue when we ramp up. But ultimately, that's a good profile.

Jeremy Hofmann: So we have roughly a billion dollars in fixed costs today. We feel like we're pretty well invested there to at least get to our 2025 share targets. And so we expect that to grow kind of modestly with inflation. Variable is 25 to 30% of revenue. That will scale a little faster than revenue when we ramp up. But ultimately that's a good profile and then the balances in marketing and advertising. So we feel good that if we are controlled on the fixed side, we can grow revenue faster than cost on the EBITDA front and you're seeing that in the margin expansion you've seen throughout this year so far.

Jeremy Hofmann: And then the balance is in marketing and advertising. So we feel good that if we are controlled on the fixed side, we can grow revenue faster than costs on the front. And you're seeing that in the margin expansion you've seen throughout this year so far. And then going forward on the gap side, the next thing that's really important to us is getting stock-based compensation in a good spot. So we've committed to shrinking SBC's total dollars year over year by 24 versus 23, and then even more so as a percentage of revenue.

Jeremy Hofmann: So we feel good that if we are controlled on the fixed side we can grow revenue faster than cost on the EBITDA front, and you're seeing that in the margin expansion you've seen throughout this year so far. And then going forward on the gap side, you know the next thing that's really important to us is getting stock based compensation in a good spot. So we've committed to shrinking SBC total dollars year over year and 24 versus 23, and then even more so as a percentage of revenue. And it's important to remember that you know 90% of our SBC cost fits in that fixed bucket.

Jeremy Wacksman: on the EBITDA front. And you're seeing that in the margin expansion you've seen throughout this year so far. And then going forward on the GAAP side, you know, the next thing that's really important to us is getting stock-based compensation in a good spot. So we've committed to shrinking SBC.

Jeremy Hofmann: And then going forward on the gap side, you know, the next thing that's really important to us is getting stock based compensation in a in a good spot. So we've committed to shrinking SBC total dollars year over year and 24 versus 23 and then even more so as a percentage of revenue. And it's important to remember that, you know, 90% of our SBC cost fits in that fixed bucket. So as we keep our eyes really, really focused on that, we're going to get more and more leverage on SBC over time and that puts us on a nice path to get to gap profitability.

Operator: Thank you both.

Jeremy Hofmann: And it's important to remember that 90 percent of our SBC cost fits in that fixed bucket. So as we keep our eyes really, really focused on that, we're going to get more and more leverage on SBC over time, and that puts us on a nice path to get to gap profitability.

Speaker Change: total dollars year over year in 24 versus 23, and then even more so as a percentage of revenue. And it's important to remember that, you know, 90% of our SBC cost

Rich Barton: This completes the a lot of time for questions.

Richard Barton: So as we keep our eyes really, really focused on that, we're going to get more and more leverage on SBC over time, and that puts us on a nice path to get to gap profitability. Thank you both.

Jeremy Wacksman: sits in that fixed bucket. So as we keep our eyes really, really focused on that, we're going to get more and more leverage on SBC over time, and that puts us on a nice path to get to gap profitability.

Richard Barton: This completes a lot of time for questions. I will now turn the call back over to Rich Barton for any closing remarks. Thank you all. As you, as you guys can see, the company is really doing well. The company is on firm footing, and as you can also see demonstrated in this call and on many calls before, Jeremy, what actually is ready to lead, and the broader leadership team is ready as well. And so I'm super excited; there is a ton of clean water in front of the company. Lots of opportunity; may be the wind will change direction and come behind us one of these days, but we certainly don't need it.

Rich Barton: This concludes the allotted time for questions. I will now turn the call back over to Rich Barton for any closing remarks.

Speaker Change: Thank you both.

Jeremy Wacksman: This completes the allotted time for questions. I will now turn the call back over to Rich Barton for any closing remarks.

Hey, thank you all. As you can see, as you guys can see,

Jeremy Wacksman: Hey, thank you all, as you guys can see, and so I'm super excited. There is a ton of clean water in front of the company, lots of opportunity. Maybe the wind will change direction and come behind us one of these days, but we certainly don't need it. But I'm sure it'll happen at some point. I want to thank you all for being on the journey with us. We'll talk to you soon.

Rich Barton: I will now turn the call back over to Rich Barton for any closing remarks. Thank you all. As you as you guys can see, the company is really doing well. The company is on firm footing. And as you can also see, demonstrated in this call and on many calls before, Jeremy, what actually is ready to lead and the broader leadership team is ready as well. And so I'm super excited. There is a ton of clean water in front of the company. Lots of opportunity may be the wind will change direction and come behind us one of these days, but we certainly don't need it. But I'm sure it'll happen at some point.

Jeremy Wacksman: Thank you all. As you as you guys can see, the

Jeremy Wacksman: The company is really doing well. The company is on firm footing and as you can also see demonstrated in this call and on many calls before, Jeremy Wacksman is ready to lead and the broader leadership team is ready as well.

Jeremy Wacksman: And so I'm super excited. There is a ton of clean water in front of the company, lots of opportunity.

Jeremy Wacksman: Maybe the wind will change direction and come behind us one of these days, but we certainly don't need it. But I'm sure it'll happen at some point. I want to thank you all for being on the journey with us. We'll talk to you soon.

But I'm sure it'll happen at some point. I want to thank you all for being on the journey with us. We'll talk.

Rich Barton: I want to thank you all for being on the journey with us.

Rich Barton: We'll talk here.

Q2 2024 Zillow Group Inc Earnings Call

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