Zillow Group Inc. shares rose in the extended session Wednesday after the real-estate services company reported quarterly revenue above Wall Street expectations, saying it is investing in a “tough housing market while others retrench.”
Zillow lost $72 million, or 31 cents a share, in the fourth quarter, compared with a loss of $261 million, or $1 a share, in the year-ago period.
Revenue fell 19% to $435 million. FactSet consensus called for EPS of 6 cents a share on sales of $414 million.
“We see the same headlines you all see about tech companies cutting back their workforces to make up for staffing to accommodate unsustainable pandemic-level growth that is now normalizing,” Zillow executives said in a letter to shareholders.
“Our story is different. After a year of significant people-related and other expense reductions in 2022, we are now investing during a tough housing market while others retrench, as we see real opportunity for growth,” they said.
Zillow underwent two rounds of layoffs in 2022.
The company guided for first-quarter revenue between $404 million and $437 million. Analysts surveyed by FactSet expect first-quarter revenue of $429 million.
Zillow shares have lost about 28% in the last 12 months, compared with losses of around 8% for the S&P 500 index