(Reuters) - Zillow Group Inc (ZG.O) beat analysts’ estimates for third-quarter revenue on Thursday, as the real estate website operator sold more homes and more real estate agents advertised on its platform, sending its shares up 10% in after-market trading.
Lower mortgage rates in the United States led to an increase of 7.1% in home sales in August, a sign that the housing market was recovering. The median new house price also rose 2.2% in August from a year earlier.
Revenue from the company’s homes segment, which buys and sells houses, rose to $384.6 million from $11,018 a year earlier, as it expands its Zillow Offers program.
The program marks a shift for the company to becoming a buyer and seller of homes, from just being an online platform to buy and sell houses.
Zillow, famous for Zestimates that gives the market value of a house based on property data, said more than 80,000 homeowners requested an offer for homes from its platform in the reported quarter.
The company’s revenue more than doubled to $745.2 million, beating analysts’ estimates of $717.5 million, according to IBES data from Refinitiv.
Net loss widened to $64.6 million for the quarter ended Sept. 30 from $492,000, a year earlier.
Revenue from the company’s internet, media and technology unit, rose 7% to $335.3 million.
Reporting by Amal S in Bengaluru; Editing by Shailesh Kuber and Shounak Dasgupta