PHOTO: Zillow
New York (CNN Business)Zillow is trying to transition from an online advertising business to a full-service real estate company that buys and flips homes — a difficult evolution as evidenced by its most recent earnings release.
The company on Wednesday posted revenue of $599 million for the three months ending in June, up 84% from the same period last year. But Zillow’s net losses grew more quickly — up 136% to $72 million as it pours capital into its new home flipping business. Shares plummeted 14% after hours.
Zillow (Z) still earns slightly more than half of its money from ads posted by real estate professionals on its free sites and apps that list homes for sale. But last July it branched out in a major way when it launched “Zillow Offers,” a new business that buys, flips and sells homes. It already makes up 40% of Zillow’s total revenue.
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