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Zillow on Wednesday reported a surge in quarterly revenue and a smaller-than-expected loss as more people used its real estate website to buy and sell homes, sending its shares up 10% in trading after the bell.
Revenue from the company’s home unit, which accounts for more than half of its revenue, ballooned to $603.2 million in the fourth quarter ended Dec. 31 from $41.3 million a year earlier.
Revenue from its Premier Agent Program, which promotes real estate brokers for a fee, rose 5.6% to $233.5 million.
The Seattle-based company has more than 100 million homes listed on its platform. Zillow’s home valuation tool, Zestimates, has become increasingly popular with home buyers, helping the company stand out in the crowded online real estate space.
The company has also benefited from its move to buy and sell homes under Zillow Offers.
Excluding items, Zillow posted a loss of 26 cents per share, compared with analysts’ estimates of a loss of 35 cents.
Revenue surged to $943.9 million from $365.3 million, beating analysts’ estimates of $815.3 million, according to IBES data from Refinitiv.
Net loss, however, widened to $101.2 million from $97.7 million a year earlier.