Zillow Group (ZG) shares plummeted 7.18% in the after-hours trading session on Tuesday, following the company's mixed fourth-quarter earnings report and a disappointing revenue outlook for the first quarter of 2025.
The real estate technology company reported Q4 non-GAAP earnings of $0.27 per share, narrowly missing the consensus estimate of $0.28. However, revenue came in at $554 million, beating analysts' expectations of $545.9 million. While revenue grew by 16.88% year-over-year, the company's net income remained negative at -$52 million.
For the first quarter of 2025, Zillow provided a revenue guidance range of $575 million to $590 million, falling short of analysts' forecasts of $599.6 million. The lackluster guidance appears to have spooked investors, leading to the sharp sell-off in the after-hours session.