Zillow says it’s closing home-buying business and cutting 25% of workforce; earnings miss estimates
Richard ‘Rich’ Barton, co-founder and CEO of Zillow Inc.
Andrew Harrer | Bloomberg | Getty Images
Zillow, the digital real estate company, said on Tuesday that it’s existing its business that buys and flips homes and eliminating 25% of its workforce.
The announcement was attached to Zillow’s third-quarter earnings report. The company’s revenue and earnings missed analysts’ estimates.
“We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated,” Zillow CEO Rich Barton said in a press release as part of the company’s third-quarter earnings report. “Continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.”
The stock was little changed in extended trading following a 10% plunge during regular market hours. The shares are now down about 10% for the year.
Here are the key numbers from earnings:
- Earnings per share: loss of 95 cents adjusted vs. profit of 16 cents per share expected in a Refinitiv survey of analysts
- Revenue: $1.74 billion vs. $2.01 billion expected by Refinitiv
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