Zillow Group, Inc. Soars On Strong Guide, Glu Mobile Inc. Slumps On Weak Guide

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Glu Mobile and Zillow Group released their latest earnings reports after closing bell tonight. Zillow Group posted losses of 13 cents per share on $186 million in revenue, against the consensus estimates of 9 cents per share in losses on $176.66 million in revenue. The realty website operator’s first quarter revenue surged 25% year over year on a pro forma basis, excluding Market Lender revenue as the segment was divested in the second half of last year.

Glu Mobile reported losses of 3 cents per share on $54 million in revenue, compared to the consensus estimates of 5 cents per share in losses on $48.2 million in revenue.

Zillow Group surges after sales beat

Zillow Group’s GAAP losses improved to $47.6 million or 27 cents per share from last year’s $58.4 million or 40 cents per share. This year’s first quarter includes $15.7 million in legal expenses in connection with the lawsuit with News Corp. and the National Association of Realtors. Adjusted EBITDA plunged from last year’s $24.5 million to $1.9 million, including the legal expenses.

Real Estate revenue climbed 34% year over year to $152.5 million, while Marketplace revenue climbed 23% to $169 million. Mortgages revenue surged 65% to $16.5 million, and Display revenue declined 34% to $17 million as a result of the company’s decision to de-emphasize display ads for the purpose of improving user experience.

In March, the company’s websites surpassed 166 million unique users to set a new record. That represents a 22% increase and includes all of Zillow’s consumer brands: Zillow, Trulia, StreetEasy and HotPads. During the first quarter, average monthly unique users surpassed 156 million.

Zillow Group management guided for second quarter revenue of $203 million to $208 million, which is ahead of the consensus at $193.35 million, and full-year revenue of $825 million to $835 million, which is also ahead of consensus at $806.5 million.

Shares of Zillow Group surged in after-hours trades, climbing by as much as 11.98% to $28.80.

Glu Mobile tumbles on weak guide

Glu Mobile’s GAAP revenue was $54.5 million, while its GAAP losses were 7 cents per share or $8.6 million. Adjusted EBITDA tumbled from $3.9 million last year to -$3.8 million this year.

“Our first quarter guidance outperformance was primarily due to the strong Kendall and Kylie launch as well as the ongoing success of Kim Kardashian: Hollywood and Cooking Dash,” Glu Mobile Chairman and CEO Niccolo de Masi said in a statement. “We are delighted with the traction of ourTap Sports Baseball 2016 title which is currently the top grossing baseball game on the U.S. App Store for iPhone and has positioned us to grow revenues from this franchise for the third year in a row.”

Glu Mobile management guided for second quarter losses of 5 cents to 6 cents per share, which is worse than the consensus of 4 cents per share in losses. They expect second quarter revenue of $46 million to $49 million, which is also short of the consensus at $58.98 million. For the full year, Glu expects losses of 11 cents to 16 cents per share, compared to the consensus of only 9 cents per share in losses. The game maker expects full-year revenue to be between $215 million and $235 million, which is also short of consensus at $268.8 million.

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