Shares of online real estate marketplace Zillow (NASDAQ:Z) fell 9% to $31.39 following quarterly results showing a revenue miss and a net loss that included a securities class-action settlement charge.
The online real estate marketplace's third-quarter revenue grew 7.1% to $724 million, below the $752.6 million S&P analyst consensus.
On the bottom line, Zillow (NASDAQ:Z) reported a $158 million net loss, including a $165 million Zillow Offers settlement charge, net of expected insurance recoveries.
That translated into a loss of $0.70 per share under generally accepted accounting principles, compared with analysts' forecast of a $0.15 profit.
On an adjusted basis, earnings before interest, taxes, depreciation and amortization reached $182 million, within management's outlook range but below analysts' $191.5 million estimate.
Among its businesses, residential revenue fell 4% to $419 million, which the company attributed to higher-than-expected mortgage rates that pressured housing transaction volume.
Growth elsewhere was stronger, with Zillow's rentals revenue climbing 26% to $220 million and mortgage revenue increasing 32% to $70 million.
The business ended the quarter with $707 million in cash and investments, while adjusted free cash flow fell to $46 million from $107 million a year earlier.
