Zillow Group Inc. (Z) gained 9.59% in the aftermarket at $59.45 after the company announced progress on its inventory wind-down and share repurchase program. After the positive new developments, the stock went up by $5.20 at 739.75K shares in the after hours. In the previous trading session, the stock saw an increase of 2.36%, closing at $54.25 with 6.38 million shares.
Incorporated in 2004, Zillow Group Inc. (Z) is a digital real estate company with a market capital of $13.47 billion. Currently, 187.21 million shares of the company are outstanding in the market.
Zillow’s Inventory Wind-down Progress
Previously, the company had announced its plan to wind down Zillow Offers operations on November 2, 2021. As per Thursday’s update on its progress, Zillow Group Inc. (Z) is selling houses faster than expected. The company has already sold or is in contract/agreement for over 50% of the homes it previously expected to resell during the wind-down.
Based on the progress of the wind-down, the company has updated its fourth-quarter Homes segment revenue outlook. Previously, it expected a Homes segment revenue between $1.7 billion to $2.1 billion for Q4 2021. Now, the company has updated the guidance to $2.3-$2.9 billion in Homes segment revenue for Q4.
Share Repurchase Program
Based on the progress in the company’s wind-down, Zillow Group Inc. (Z) announced a share repurchase program on December 02. As per the repurchase program, the company will repurchase its Class A common stock, Class C capital stock, or a combination of both. Further, the value of the repurchase is up to $750 million.
Zillow Group Inc. (Z) management will determine the actual number of shares repurchased and their timings based on market conditions, stock price and trading volume, etc.
Z stock’s Financial Highlights
On November 02, Zillow Group Inc. (Z) announced its third-quarter financial results for 2021. According to the third quarter of 2021, the company had a consolidated revenue of $1.7 billion. The IMT segment revenue grew by 16%, Premier Agent revenue 20%, and Mortgages segment 30% year-over-year. Moreover, the Homes segment revenue showed a change of 531% year-over-year, falling below the company’s Q3 outlook.
Further, the consolidated GAAP net loss was $328 million in the third quarter of 2021. At the end of the third quarter of 2021, Zillow Group Inc. (Z) had cash and investments of $3.2 billion.
