Zillow Group, Inc.
Nov 1, 2016

Zillow Group Reports Third Quarter 2016 Results

SEATTLE, Nov. 01, 2016 (GLOBE NEWSWIRE) -- Zillow Group, Inc. (NASDAQ:Z) (NASDAQ:ZG), which houses a portfolio of the largest and most vibrant real estate and home-related brands on mobile and web, today announced its consolidated financial results for the three months ended September 30, 2016.

"Our third-quarter performance was terrific," said Zillow Group CEO Spencer Rascoff. "We delivered another quarter of record revenue, and Adjusted EBITDA exceeded our expectations. Traffic to Zillow Group's mobile apps and websites increased year-over-year and revenue growth in our Premier Agent marketplace accelerated. With all of our marketplaces performing strongly, we expect to end 2016 in a strong position to continue executing on our strategic priorities."

Third Quarter 2016 Financial Highlights

Operating and Business Highlights

1 Other Real Estate Revenue includes agent services, dotloop, StreetEasy, Naked Apartments, rentals and other offerings to endemic advertisers that are not traditional display advertising.

2 comScore Media Metrix Multi-Platform, September 2016, U.S.

Business Outlook - Fourth Quarter and Full Year 2016

For full year 2016, Zillow Group is raising its Revenue outlook to the range of $837 million to $842 million. The 2016 Revenue outlook represents a 30% year-over-year increase at the midpoint of the guidance range, compared to a 24% increase from 2014 to 2015, on a pro forma basis and excluding revenue from Market Leader, which was divested in 2015. For full year 2016, Zillow Group is raising its Adjusted EBITDA outlook to the range of $136 million to $141 million (excluding the impact of a $130.0 million litigation settlement), which represents 16% of Revenue at the midpoint of the guidance range.

The following table presents Zillow Group's business outlook for the periods presented (in millions):

  Three Months Ending Year Ending
Zillow Group Outlook as of November 1, 2016 December 31, 2016 December 31, 2016
(in millions)        
Revenue $218 to$223  $837 to$842 
Premier Agent revenue $161 to$163  $601 to$603 
Display revenue $14 to$15  $66 to$67 
Operating expenses $ 225 to$230   *** 
Adjusted EBITDA (1) $46 to$51  $136 to$141 
Depreciation and amortization $27 to$29  $102 to$104 
Share-based compensation expense $25 to$27  $106 to$108 
Capital expenditures  ***  $46 to$48 
Weighted average shares outstanding — basic   180.5 to 182.5   179.5 to 181.5 
Weighted average shares outstanding — diluted  189.5 to 191.5   188.5 to 190.5 
         
*** Outlook not provided 

(1)  Forecasted Adjusted EBITDA for the year ending December 31, 2016 in the table above excludes the impact of a $130.0 million litigation settlement. Including the impact of the $130.0 million litigation settlement, forecasted Adjusted EBITDA for the year ending December 31, 2016 is $8.5 million at the midpoint of the guidance range. A reconciliation of forecasted Adjusted EBITDA (including the impact of the $130.0 million litigation settlement) to forecasted net loss is provided below in this press release.

Conference Call and Webcast Information

Zillow Group's CEO Spencer Rascoff and CFO Kathleen Philips will host a live conference call and webcast to discuss the results today at 2 p.m. Pacific Time (5 p.m. Eastern Time). A copy of management's prepared remarks will be made available on the investor relations section of Zillow Group, Inc.'s website at http://investors.zillowgroup.com/results.cfm prior to the live conference call and webcast to allow analysts and investors additional time to review the details of the results.

Zillow Group's management will first read the prepared remarks and then answer questions from dialed-in participants, in addition to those submitted via Twitter® during the live conference call. Questions can be submitted to the @ZillowGroup Twitter® handle using #ZEarnings.

A link to the live webcast of the conference call will be available on the investor relations section of Zillow Group, Inc.'s website at http://investors.zillowgroup.com/results.cfm. The live call may also be accessed via phone at (877) 643-7152 toll-free domestically and at (443) 863-7921 internationally, with conference ID# 90568270. Following completion of the call, a recorded replay of the webcast will be available on the investor relations section of Zillow Group, Inc.'s website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties, including, without limitation, statements regarding our business outlook, strategic priorities, and operational plans for 2016. Statements containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "will," "projections," "continue," "business outlook," "estimate," "outlook," or similar expressions constitute forward-looking statements. Differences in Zillow Group's actual results from those described in these forward-looking statements may result from actions taken by Zillow Group as well as from risks and uncertainties beyond Zillow Group's control. Factors that may contribute to such differences include, but are not limited to, Zillow Group's ability to successfully integrate and realize the benefits of our past or future strategic acquisitions or investments; Zillow Group's ability to maintain and effectively manage an adequate rate of growth; Zillow Group's ability to maintain or establish relationships with listings and data providers; the impact of the real estate industry on Zillow Group's business; Zillow Group's ability to innovate and provide products and services that are attractive to its users and advertisers; Zillow Group's ability to increase awareness of the Zillow Group brands; Zillow Group's ability to attract consumers to Zillow Group's mobile applications and websites; Zillow Group's ability to compete successfully against existing or future competitors; the reliable performance of Zillow Group's network infrastructure and content delivery processes; and Zillow Group's ability to protect its intellectual property. The foregoing list of risks and uncertainties is illustrative, but is not exhaustive. For more information about potential factors that could affect Zillow Group's business and financial results, please review the "Risk Factors" described in Zillow Group's Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission, or SEC, and in Zillow Group's other filings with the SEC. Except as may be required by law, Zillow Group does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

Use of Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results, this press release includes references to certain pro forma financial results, Adjusted EBITDA and non-GAAP net income (loss) per share, all of which are non-GAAP financial measures. We have provided a reconciliation of pro forma Adjusted EBITDA to pro forma net income (loss), Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, and a reconciliation of net income (loss), adjusted, to net income (loss), as reported on a GAAP basis, and the calculations of non-GAAP net income (loss) per share - basic and diluted and pro forma weighted-average shares outstanding - basic and diluted, within this earnings release.

The pro forma financial results included in this press release, although helpful in illustrating the financial characteristics of Zillow Group under one set of assumptions, are not true historical financial results. They are provided for informational purposes and do not attempt to represent Zillow Group's actual financial condition if the February 2015 acquisition of Trulia had been completed on the applicable dates of the financial statements presented herein, or to predict or suggest future results.

Adjusted EBITDA is a key metric used by our management and board of directors to measure operating performance and trends, and to prepare and approve our annual budget. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis.

Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net income (loss) and our other GAAP results.

Our presentation of non-GAAP net income (loss) per share excludes the impact of share-based compensation expense, acquisition-related costs, restructuring costs, income taxes and the loss (gain) on divestiture of businesses. This measure is not a key metric used by our management and board of directors to measure operating performance or otherwise manage the business. However, we provide non-GAAP net income (loss) per share as supplemental information to investors, as we believe the exclusion of share-based compensation expense, acquisition-related costs, restructuring costs, income taxes and the loss (gain) on divestiture of businesses facilitates investors' operating performance comparisons on a period-to-period basis. You should not consider these metrics in isolation or as substitutes for analysis of our results as reported under GAAP.

About Zillow Group

Zillow Group (NASDAQ:Z) (NASDAQ:ZG) houses a portfolio of the largest real estate and home-related brands on mobile and the web. The company's brands focus on all stages of the home lifecycle: renting, buying, selling, financing and home improvement. Zillow Group is committed to empowering consumers with unparalleled data, inspiration and knowledge around homes, and connecting them with the right local professionals to help. The Zillow Group portfolio of consumer brands includes real estate and rental marketplaces Zillow®, Trulia®, StreetEasy®, HotPads® and Naked Apartments®. In addition, Zillow Group works with tens of thousands of real estate agents, lenders and rental professionals, helping maximize business opportunities and connect to millions of consumers. The company operates a number of business brands for real estate, rental and mortgage professionals, including Mortech®, dotloop®, Bridge Interactive™ and Retsly®. The company is headquartered in Seattle.

Please visit http://investors.zillowgroup.com, www.zillowgroup.com/ir-blog, and www.twitter.com/zillowgroup, where Zillow Group discloses information about the company, its financial information, and its business which may be deemed material.

The Zillow Group logo is available at http://zillowgroup.mediaroom.com/logos-photos.

Zillow, Premier Agent, Mortech, StreetEasy, Retsly and HotPads are registered trademarks of Zillow, Inc. Trulia is a registered trademark of Trulia, LLC. dotloop is a registered trademark of DotLoop, LLC. Naked Apartments is a registered trademark of Naked Apartments, Inc. Bridge Interactive is a trademark of Bridge Interactive Group, LLC.

Twitter is a registered trademark of Twitter, Inc.

(ZFIN)

Pro Forma Financial Information

Certain financial information for the three and nine month periods ended September 30, 2015 is presented below on a pro forma basis. Pro forma results exclude items described in the reconciliation tables below and assume the February 2015 acquisition of Trulia occurred on January 1, 2014, the beginning of the comparable reporting period for the year prior to the year of acquisition. The pro forma results are presented in order to provide additional insights into the underlying trends in the business. Reported results were prepared in accordance with U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

The following table presents certain prior period pro forma financial information with the as-reported financial information for the three and nine month periods ended September 30, 2016 (in thousands, except per share data, unaudited):

 Three Months Ended Nine Months Ended
 September 30, September 30,
 2016 (1) 2015 (2) 2016 (1) 2015 (3)
         
Pro forma revenue$  224,592  $  176,765  $  618,977  $  510,565 
Pro forma net income (loss)$  6,807  $  (21,393) $  (196,947) $  (65,978)
Pro forma net income (loss) per share — basic and diluted$  0.04  $  (0.12) $  (1.10) $  (0.38)
Pro forma weighted-average shares outstanding — basic   180,583     177,098     179,577     175,900 
Pro forma weighted-average shares outstanding — diluted   189,661     177,098     179,577     175,900 
_________       
        
Other Financial Data:       
Pro forma Adjusted EBITDA (4)$  59,463  $  29,477  $  (39,923 ) $  75,017 

(1)  The financial information for the three and nine month periods ended September 30, 2016 is presented on an as-reported basis.

(2)  The pro forma net loss for the three months ended September 30, 2015 includes pro forma adjustments for $3.4 million to eliminate restructuring costs associated with the acquisition of Trulia reflected in the historical financial statements and $1.2 million to eliminate direct and incremental acquisition-related costs reflected in the historical financial statements.

(3)  The pro forma net loss for the nine months ended September 30, 2015 includes pro forma adjustments for $49.1 million to eliminate direct and incremental acquisition-related costs reflected in the historical financial statements, $37.3 million to eliminate share-based compensation expense attributable to substituted equity awards and to record additional share-based compensation expense attributable to substituted equity awards, $35.3 million to eliminate restructuring costs associated with the acquisition of Trulia reflected in the historical financial statements, $2.4 million to record additional amortization expense for acquired intangible assets and $1.1 million to eliminate Trulia's historical amortization of capitalized website development costs.

(4)  See below for a reconciliation of pro forma Adjusted EBITDA to pro forma net income (loss). For the nine month period ended September 30, 2016, Adjusted EBITDA includes the impact of a $130.0 million litigation settlement. Adjusted EBITDA for the nine month period ended September 30, 2016 also includes $28.8 million in related legal costs.

The basic and diluted pro forma net loss per share is based on the weighted-average number of shares of Zillow Group common stock and Class C capital stock outstanding for the period presented and adjusted for the number of shares of Class A common stock issued in connection with the February 2015 acquisition of Trulia, assuming for the purposes of the unaudited pro forma condensed combined statements of operations that the closing date of the acquisition was January 1, 2014. The calculation of the number of shares used in the computation of pro forma basic and diluted net loss per share is as follows (in thousands, unaudited):

 Three Months Ended Nine Months Ended
 September 30, 2015 September 30, 2015
    
Weighted-average shares outstanding — basic and diluted (1)125,318 124,120
Class A common stock issued in connection with the acquisition of Trulia51,780 51,780
Pro forma weighted-average shares outstanding — basic and diluted177,098 175,900
    
(1) Amounts exclude shares of Zillow Group Class A common stock issued in connection with the acquisition of Trulia.
 

The following table presents a reconciliation of pro forma Adjusted EBITDA to pro forma net loss for the three and nine month periods ended September 30, 2015. For ease of year-over-year comparison, this pro forma financial information is presented with financial information for the three and nine month periods ended September 30, 2016, which is presented on an as-reported basis (in thousands, unaudited):

  Three Months Ended Nine Months Ended
  September 30, September 30,
  2016 (1)  2015 2016 (1)  2015
Reconciliation of Pro Forma Adjusted EBITDA to Pro Forma Net Income (Loss):        
Pro forma net income (loss) $  6,807  $  (21,393) $   (196,947) $  (65,978)
Pro forma other income    (561)    (366)    (1,995)    (1,118)
Pro forma depreciation and amortization expense    25,495     19,584     74,852     59,865 
Pro forma share-based compensation expense    27,285     28,015     81,152     75,472 
Pro forma acquisition-related costs    93     757     890     757 
Loss (gain) on divestiture of businesses    (1,251)    4,143     (1,251)    4,143 
Pro forma interest expense     1,595     1,590     4,740      4,729 
Pro forma income tax benefit    -      (2,853)    (1,364)    (2,853 )
Pro forma Adjusted EBITDA $ 59,463  $  29,477  $  (39,923) $  75,017 

(1)  The financial information for the three and nine month periods ended September 30, 2016 is presented on an as-reported basis. For the nine month period ended September 30, 2016, Adjusted EBITDA includes the impact of a $130.0 million litigation settlement. Adjusted EBITDA for the nine month period ended September 30, 2016 also includes $28.8 million in related legal costs.

The following table presents our pro forma revenue by type for the nine months ended September 30, 2015. For ease of year-over-year comparison, the pro forma financial information is presented with financial information for the three and nine month periods ended September 30, 2016, which is presented on an as-reported basis (in thousands, unaudited):

 Three Months Ended Nine Months Ended
 September 30, September 30,
 2016 (1) 2015 (1) 2016 (1) 2015
Pro Forma Revenue:       
Pro forma Marketplace revenue:       
Premier Agent$  158,322  $  119,448  $  439,957  $  341,790 
Other real estate    28,799     10,214     72,847     23,826 
Mortgages   19,775     12,624     54,621     32,967 
Market Leader    -     10,957     -     37,068 
Total pro forma Marketplace revenue   206,896     153,243     567,425     435,651 
Pro forma Display revenue   17,696     23,522     51,552     74,914 
Total pro forma revenue$  224,592  $  176,765  $  618,977  $  510,565 

(1)  The financial information for the three months ended September 30, 2015 and for the three and nine month periods ended September 30, 2016 is presented on an as-reported basis.

Reported Consolidated Results

ZILLOW GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS 
(in thousands)
 
  September 30, 2016 December 31, 2015
Assets    
Current assets:    
Cash and cash equivalents $  190,760  $  229,138 
Short-term investments    253,845     291,151 
Accounts receivable, net     39,939     29,789 
Prepaid expenses and other current assets    17,238     24,016 
Total current assets    501,782     574,094 
Restricted cash    1,053     3,015 
Property and equipment, net    94,045     85,523 
Goodwill    1,923,480     1,909,167 
Intangible assets, net    537,177     558,881 
Other assets    6,967     5,020 
Total assets $  3,064,504  $  3,135,700 
     
Liabilities and shareholders' equity    
Current liabilities:    
Accounts payable $  6,697  $  3,361 
Accrued expenses and other current liabilities    34,745     43,047 
Accrued compensation and benefits    24,611     11,392 
Deferred revenue    27,005     21,450 
Deferred rent, current portion    1,236     1,172 
Total current liabilities    94,294     80,422 
Deferred rent, net of current portion    13,991     13,743 
Long-term debt    230,000     230,000 
Deferred tax liabilities and other long-term liabilities    134,513     132,482 
Total liabilities    472,798     456,647 
Shareholders' equity:    
Class A common stock    5     5 
Class B common stock    1     1 
Class C capital stock    12     12  
Additional paid-in capital    3,065,042     2,956,111 
Accumulated other comprehensive income (loss)    198     (471)
Accumulated deficit    (473,552)    (276,605)
Total shareholders' equity    2,591,706     2,679,053 
Total liabilities and shareholders' equity  $  3,064,504  $  3,135,700 
 


ZILLOW GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
(in thousands, except per share data)
 
 Three Months Ended Nine Months Ended
 September 30, September 30,
 2016  2015 2016 2015
        
Revenue$  224,592  $  176,765   $  618,977  $  475,307 
Costs and expenses:       
Cost of revenue (exclusive of amortization) (1)(2)   18,254     16,453     51,926     46,509 
Sales and marketing (2)    92,794     82,044     290,810     229,272 
Technology and development (2)   69,171     53,718     201,009     142,783 
General and administrative (2)   37,690     42,672     271,159     124,506 
Acquisition-related costs   93     1,988     890     16,144 
Restructuring costs (2)   -     3,425     -     35,142 
Loss (gain) on divestiture of businesses   (1,251)    4,143     (1,251)    4,143 
Total costs and expenses   216,751     204,443     814,543     598,499 
Income (loss) from operations   7,841     (27,678)    (195,566)    (123,192)
Other income   561     366     1,995     1,085 
Interest expense   (1,595)    (1,590)    (4,740)    (3,900)
Income (loss) before income taxes   6,807     (28,902)    (198,311)    (126,007)
Income tax benefit   -     2,853     1,364     2,853 
Net income (loss)$  6,807  $  (26,049) $  (196,947) $  (123,154)
Net income (loss) per share — basic and diluted$  0.04  $  (0.15) $  (1.10)  $  (0.74)
Weighted-average shares outstanding — basic    180,583     177,098     179,577     166,986 
Weighted-average shares outstanding — diluted   189,661     177,098     179,577     166,986 
_________        
(1) Amortization of website development costs and intangible assets included in technology and development$  21,917  $  16,405  $  62,821  $  45,304 
        
(2)  Includes share-based compensation expense as follows:       
Cost of revenue$  1,524  $  1,378  $  4,370  $  3,440 
Sales and marketing   5,968     7,446     17,566     20,439 
Technology and development   8,035     7,642     23,160     20,413 
General and administrative   11,758     11,549     36,056     36,610 
Restructuring costs   -     1,059     -     15,063 
Total$  27,285  $  29,074  $  81,152  $  95,965 
        
Other Financial Data:       
Adjusted EBITDA (3) $  59,463  $  29,477  $  (39,923)  $  67,170 
        
(3)  See above for more information regarding our presentation of Adjusted EBITDA.
 


ZILLOW GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
  Nine Months Ended
  September 30,
  2016 2015
Operating activities    
Net loss $  (196,947) $  (123,154)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities, net of amounts assumed in connection with acquisitions:    
Depreciation and amortization    74,852     54,031 
Share-based compensation expense    81,152      80,902 
Restructuring costs    -     19,206 
Release of valuation allowance on certain deferred tax assets    (1,364)    (2,853)
Loss on disposal of property and equipment    3,416     1,007 
Loss (gain) on divestiture of businesses    (1,360)    3,690 
Bad debt expense    1,715     2,414 
Deferred rent    312     2,635 
Amortization of bond premium    1,171      2,090 
Changes in operating assets and liabilities:    
Accounts receivable    (11,770)    (4,009)
Prepaid expenses and other assets    5,197     7,849 
Accounts payable    3,296     (8,394)
Accrued expenses and other current liabilities    (8,746)    6,132 
Accrued compensation and benefits    13,016     (2,982)
Deferred revenue    5,645     (4,064)
Other long-term liabilities    (21)    4,088 
Net cash provided by (used in) operating activities     (30,436)    38,588 
     
Investing activities    
Proceeds from maturities of investments    158,828     244,079 
Purchases of investments    (126,986)    (227,223)
Proceeds from sales of investments    4,963     8,260 
Decrease in restricted cash, net of amounts assumed in connection with an acquisition    1,962     207 
Purchases of property and equipment    (45,732)    (39,594)
Purchases of intangible assets    (7,827)    (13,911)
Proceeds from divestiture of businesses    3,200     17,600 
Cash acquired in acquisition, net    -     173,406 
Cash paid for acquisitions, net    (16,319)    (104,192)
Net cash provided by (used in) investing activities    (27,911)    58,632 
     
Financing activities    
Proceeds from exercise of stock options    20,461     18,499 
Value of equity awards withheld for tax liability    (492)    (7,945)
Net cash provided by financing activities    19,969     10,554 
Net increase (decrease) in cash and cash equivalents during period    (38,378)    107,774 
Cash and cash equivalents at beginning of period    229,138     125,765 
Cash and cash equivalents at end of period $  190,760  $  233,539 
     
Supplemental disclosures of cash flow information    
Cash paid for interest $  3,163  $  3,163 
Noncash transactions:    
Value of Class A common stock issued in connection with an acquisition $  -  $  1,883,728 
Capitalized share-based compensation $  7,809  $  8,071 
Write-off of fully depreciated property and equipment $  11,585  $  24,899 
 

Adjusted EBITDA

The following table presents a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, for each of the periods presented (in thousands, unaudited):

  Three Months Ended Nine Months Ended
  September 30, September 30,
  2016 2015 2016 2015
Reconciliation of Adjusted EBITDA to Net Income (Loss):        
Net income (loss) $  6,807  $  (26,049) $  (196,947) $  (123,154)
Other income    (561)    (366)    (1,995)    (1,085)
Depreciation and amortization expense    25,495     19,584     74,852     54,031 
Share-based compensation expense    27,285     28,015     81,152     80,902 
Acquisition-related costs    93     1,988     890     16,144 
Restructuring costs    -     3,425     -     35,142 
Loss (gain) on divestiture of businesses    (1,251)    4,143     (1,251)    4,143 
Interest expense    1,595     1,590     4,740     3,900 
Income tax benefit    -     (2,853)    (1,364)    (2,853)
Adjusted EBITDA (1) $  59,463  $  29,477  $  (39,923) $  67,170 

(1)  For the nine month period ended September 30, 2016, Adjusted EBITDA includes the impact of a $130.0 million litigation settlement. Adjusted EBITDA for the nine month period ended September 30, 2016 also includes $28.8 million in related legal costs.

The following table presents a reconciliation of forecasted Adjusted EBITDA to forecasted net loss for each of the periods presented (in thousands, unaudited):

  Three Months Ending Year Ending
  December 31, 2016 December 31, 2016
Reconciliation of Forecasted Adjusted EBITDA to Forecasted Net Loss:    
Forecasted Net loss $  (6,400) $  (203,276)
Forecasted Other income  (700)  (2,800)
Forecasted Depreciation and amortization expense  28,000   103,000 
Forecasted Share-based compensation expense  26,000    107,000 
Forecasted Acquisition-related costs    -   890 
Forecasted Loss (gain) on divestiture of businesses    -   (1,250)
Forecasted Interest expense  1,600   6,300 
Forecasted Income tax expense (benefit)    -   (1,364)
Forecasted Adjusted EBITDA $  48,500  $  8,500 
 

Non-GAAP Net Income (Loss) per Share

The following table presents a reconciliation of net income (loss), adjusted, to net income (loss), as reported on a GAAP basis, and the calculation of non-GAAP net income (loss) per share - basic and diluted, for each of the periods presented (in thousands, except per share data, unaudited):

  Three Months Ended Nine Months Ended
  September 30, September 30,
  2016 2015 2016 2015
         
Net income (loss), as reported $  6,807  $  (26,049) $  (196,947) $  (123,154)
Share-based compensation expense    27,285     28,015     81,152     80,902 
Acquisition-related costs    93     1,988     890     16,144 
Restructuring costs    -     3,425     -     35,142 
Income tax benefit    -     (2,853)    (1,364)    (2,853)
Loss (gain) on divestiture of businesses    (1,251 )    4,143     (1,251)    4,143 
Net income (loss), adjusted $  32,934  $  8,669  $  (117,520) $  10,324 
         
Non-GAAP net income (loss) per share - basic $  0.18  $  0.05  $  (0.65) $  0.06 
Non-GAAP net income (loss) per share - diluted $  0.17  $  0.05  $  (0.65) $  0.06 
Weighted-average shares outstanding - basic    180,583     177,098     179,577     166,986 
Weighted-average shares outstanding - diluted    199,687     183,864     179,577     174,909 
 

Revenue by Type

The following tables present our revenue by type and as a percentage of total revenue for each of the periods presented (in thousands, unaudited):

 Three Months Ended Nine Months Ended
 September 30, September 30,
 2016 2015 2016 2015
Revenue:       
Marketplace revenue:       
Premier Agent$  158,322  $  119,448  $  439,957  $  322,526 
Other real estate   28,799     10,214     72,847     23,006 
Mortgages   19,775     12,624     54,621     32,575 
Market Leader   -       10,957     -      29,544 
Total Marketplace revenue   206,896     153,243     567,425     407,651 
Display revenue   17,696     23,522     51,552     67,656 
Total revenue$  224,592  $  176,765  $  618,977  $  475,307 
        
        
 Three Months Ended  Nine Months Ended
 September 30, September 30,
 2016 2015 2016 2015
Percentage of Total Revenue:       
Marketplace revenue:       
Premier Agent 70%  68%  71%  68%
Other real estate 13%  6%  12%  5%
Mortgages 9%  7%  9%  7%
Market Leader    -    6%    -    6%
Total Marketplace revenue 92%  87%  92%  86%
Display revenue 8%  13%  8%  14%
Total revenue 100%  100%   100%  100%
 

Unique Users

The following table sets forth our average monthly unique users for each of the periods presented:

 Average Monthly Unique Users for the
Three Months Ended September 30,
 2015 to 2016
 2016 2015 % Change
 (in thousands)  
Unique Users164,526 142,121  16%
 

Unique users source: We measure Zillow unique users with Google Analytics and Trulia unique users with Omniture analytical tools.

Contacts:

Raymond Jones

Investor Relations

206-470-7137

ir@zillow.com



Katie Curnutte

Public Relations

press@zillow.com

Primary Logo

Source: Zillow Group, Inc.

News Provided by Acquire Media