Bloomberg Audio Studios, podcasts, radio news. Let's take a look at another mover to the upside, and that is Zillow up a couple of percentage points here in the after hours trade after the real estate marketplace reported earnings beat on several key metrics. Revenue six hundred and seventy six million dollars in the most recent quarter here EPs at forty four cents a share for the most recent quarter,
and guidance for the fourth quarter. This says that expect revenue for the current quarter in a range of six forty five to six fifty five million dollars, a low end of that range just above the average of street estimates. Jeremy Waxman joins us right now, please to say, the CEO of Zilo Groups, talk a little bit more about the performance and your core business did well, Jeremy, and I am curious as to what drove that. Was there sort of macroeconomic factors behind that marketing.
What Yeah, thanks for having me. Q three was a great one for Zillo. As you said, revenue up sixteen percent year every year and was really across the board. Our for sale revenue, which is mortgages and agent revenue up ten percent, and our rentals marketplace, our rentals revenue
up forty one percent. And what's driving that outperformance against a housing market that's up mid single digits is this integrated transaction strategy building software for buyer, seleisi and renters to use Zillo more and connect with professionals and get more transactions done with our software and our partners. That's
coming to life in more places. So that's what's driving the revenue growth and for sale, that's what's driving the revenue growth and rentals, and that's what's driving a great Q three for US.
I am curious about the home loans business. I know a small part of your business, there was some decent growth there. What are your ambitions for that, Jeremy, Does that need to be bigger or are you comfortable with where it sits right now in your portfolio.
We expect that to be a bigger business for US over time. Eighty percent of all buyers need a mortgage, and those buyers are shopping on Zilo. They're using Zilo to find their agent, to find the home with their dreams, and they want a one stop shop. They want the ability to transact all in one place in that Zilo app, so being able to offer them Zilo home loans as
one of their choices of financing. It makes sense from a consumer experience standpoint, and then it's a great business because it's more efficient for them to use one platform and get multiple services. So you're right, it is very small today, it is growing nicely. It's growing double digits and has all year. We would love to see that
business continue to grow over time. And as I said, the strategy there is really offer that service to our buyers inside a Zilo, offer it to our agents who are working with those customers, and just become one of their loan offerings for more of those transactions.
Jeremy, I'd love to get a little bit more detail when it comes to the breakdown of buyers versus renters, because with mortgage rates still at the levels that they are, you know, one of the narratives out there is that actually take a look at the monthly payment and for a lot of folks it makes more sense to just rent versus to buy something. And I'm w when you take a look at the trends on Zillo, whether that's still the case or are we starting to see that shift.
Yeah, Unfortunately, it is still a real affordability crisis in the housing market, and one way to think about that is just where are things versus pre pandemic. Home prices are up nearly one hundred percent from pre pandemic levels, So we talk a lot about mortgage rates and the rise in mortgage rates from those lows, but it's really
home prices that are making things unaffordable rent affordability. Rent prices have only gone up about thirty forty percent, so it's still more challenging from pre pandemic, but it becomes more affordable to rent versus buy in many markets, and you're seeing many folks who are trying to be first time home buyers that's just out of reach and they are choosing to rent again. The good news for Zillo is by offering both of those marketplaces, we can help them with those needs.
Right.
You see our rentals business growing incredibly rapidly, right, and that's now more than a quarter of our revenue. Those renters are tomorrow's buyers. Yes, we're helping them find a place to rent, but we're also helping them get ready to buy. We are helping them report their rent to the Credit bureers to start building their credit score to
get them ready for that home loan. We're helping them with tools where they can understand what they could afford when they go shop, because most of those folks, as you point out, they are what we call dual tracking. They are thinking about could I buy or should I re rent? And having all those options in one place is really what they need to make that decision.
I hear what you're saying, and you know in some cases you're preaching to the choir as a renter who would like to buy. But I want to talk a little bit more about what the rentals market has meant for you because a lot of folks think of Zillow as a home buying app, a home buying website website, but the rentals market has been a big driver of
your growth. I would love a little bit more detail on that and where you see that evolving as it comes to your business, the rental market versus the buying market.
Absolutely, rentals is a fast growing business for us, and it's a really great experience for our consumers. You know, our mission is to more and more people get home. You can't do that if you're not helping renters get home because there's so many more renters than buyers and sellers every year. And what's great about our rentals business is it's really solving the fundamental problem renter has. There
is no one database of all the rentals. You have to scour everywhere online and off to find a place on a very compressed timeframe. So we set out to try and organize as much of the inventory as possible, and we now have the most listings. We have two and a half million rental listings on Zilo. Everything from those big buildings to the single family homes that are for rent in your neighborhood. That is what brings renters
to Zillo. You want to find a place, you want to go where there are the most places to look for. That's why we have the largest audience now. So Zilo Rentals has thirty six million unique visitors per month coming to Zilo. It's the largest audience. Those factors are now why the revenue is growing. Advertisers, big property managers who are looking to fill their vacancies. They want to tap into that audience and so they're what's driving the revenue
growth up forty one percent in Q three. Multi family revenue. Those advertisers are driv as sixty two percent year ofver year revenue growth.
All right, Jeremy really appreciate you taking the time after earnings. That is Jeremy Waxman. He is Zillo Group CEO.