By Sam Boughedda
Investing.com -- Zillow Group (NASDAQ:Z) stock tumbled over 12% Friday. The company reported earnings after the close Thursday, and while it beat estimates, guidance disappointed.
The online real estate marketplace reported revenue of $4.3 billion, smashing estimates of $3.36 billion. Consolidated net income was $16 million in the first quarter.
However, in a letter to shareholders, the company said that "with forecasts varying widely, one thing that is clear about the 2022 housing market is that the path ahead is uncertain."
"Inventory levels remain low, new for-sale listings remain down year over year, and our average page views per listing were at record highs in Q1, demonstrating the ongoing supply-demand imbalance," they added.
Homes segment revenue of $3.7 billion exceeded the company’s outlook.
Zillow’s revenue jumped recently as the company unwinds its iBuying business. In the first quarter, Zillow sold 8,981 homes and bought 231, and the period ended with the company still holding 1,300 homes, with agreed-upon deals for all but about 100, executives said in a letter to shareholders.
The company's homes segment revenue was driven by a higher-than-expected number of homes sold in the first quarter — 8,981 homes sold. In addition, they purchased 231 homes during the period.
"As of Jan. 31, 2022, we are no longer acquiring homes," Zillow stated.
The company expects second quarter revenue to be between $903 million and $1.03 billion, below average estimates of $1.83 billion.