Zillow Group Inc at Goldman Sachs Communacopia & Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Great. So Zillow, clearly, a household name, strong brand awareness, over 240 average monthly unique users across apps and sites. Most people have obviously interacted with the portal either through the app or the website. But for those who may be a little bit less familiar with the business model, could you talk a little bit about the Zillow business and notable highlights from the business that you have this year so far?

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Yes. And there really is no doubt that this year was just another example of Zillow revenue outperformance, at least it's shaping up to be given the more sober housing backdrop. Maybe we can just dig in a little more on that for sale umbrella. Residential revenue was up 6% year over year in the past quarter. Zillow is forecasting mid-single-digit growth for the third quarter. maybe breaking down the foresee -- between the underlying agent revenues or the software offerings, where are you seeing the most growth and been driving that relative outperformance compared to the market this year and perhaps as you think about next year into 2026?

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Right. So much more beyond just the core or historically core like lead generation.

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Rentals, I think, is a fascinating story within obviously the numbers kind of speak for themselves. You're guiding for 40% revenue growth in rentals for the upcoming quarter and for the full year. Could you talk a little bit about Zillow's history in rentals, why is it growing so quickly just now and provide a little bit of a history of why Zillows and kind of the advantage position to do well in rental? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 9:25PM, Z.OQ - Zillow Group Inc at Goldman Sachs Communacopia & Technology Conference

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Yes. And rentals is unique because there is no central marketplace like there might be for for-sale with the MLS, right? And could you talk a little bit about maybe why you're in a unique position from an inventory perspective, like a rentals inventory perspective, like why were family homes neglected by other rental sites?

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Yes. So single-family homes, mom-and-pop landlords maybe not the best in terms of modernization, but amazing for engagement and consumer traffic.

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Great. The Zillow-Redfin partnership went live in, I think, April and expanded Zillow's distribution and introduced more multifamily customers and they're choosing Zillow Rentals. Could you just unpack some of the moving parts around the Redfin partnership given that there were so many moving parts?

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Right. And you're paying for that lead and it's upon you to convert that into this contract and actual rental? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 9:25PM, Z.OQ - Zillow Group Inc at Goldman Sachs Communacopia & Technology Conference

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Shifting gears to mortgage. Just contextual of fast Zillow's mortgage business is growing. Revenue was up 41% year over year last quarter, 48% origination growth -- could you talk a little bit about how Zillow is growing the mortgage business, Zillow home loans this quickly and what's a pretty sober housing market and how do you think about sustainability of mortgage revenue in the long term?

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Yes. And the revenue model for mortgage is mostly gain on sale?

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Right. You mentioned enhanced markets. I think enhanced markets cover about 27% of transactions as of last quarter and the company is targeting 35% plus the end of the year. Just to take a step back for a moment, could you remind everybody, what is the enhanced market rollout look like from a product availability perspective? And maybe you can talk a little bit about the monetization models for Flex versus MBP?

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Yes. And maybe just on the MBP versus dynamic, is Flex clearly better than MBP or is it really something evaluated on a market-by-market basis? And then from a Zillow standpoint, do you see Flex as an opportunity to just get a greater share of wallet because kind of removed the psychological barrier for the agent of not knowing what the return on this upfront investment is? Or is it a pricing opportunity as well?

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Yes. And in talking about the enhanced markets, you also mentioned a follow-up of a -- maybe you can expand on that a little bit more. Is it better than the CRM that's typically offered to your typical agent?

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Yes. Let's talk a little bit about some of Zillow's recent product launches who are our itineraries viability. How are these and other product launches viewed within the company? Are these more revenue sources that you might be able to charge a discrete fee for? Is it more of a conversion driver love to hear about perhaps some of those new products and then your thoughts around products generally?

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Maybe going back to some of the numbers. As you mentioned mid-teens revenue growth is the outlook for this year. Could you just talk a little bit about your confidence in the rest of the year the back half? And maybe talk a little bit about why comparing Zillow's revenue growth to the growth in the market, right, can be not the appropriate thing to do, right, in any given quarter -- like how much of that do you guys look at internally in terms of Zillow versus market? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 9:25PM, Z.OQ - Zillow Group Inc at Goldman Sachs Communacopia & Technology Conference

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Great. And on your topic of kind of operating leverage, margin expansion, Zillow's obviously done a good job of getting to GAAP profitability, I think you were positive GAAP net income for the last two quarters, and you're forecasting that for the full year. Let's talk a little bit about the cost discipline and the operating leverage in the model, how you think about fixed risk as variable.

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Right. How is Zillow using AI, whether for end consumer or agent-facing tools or inside the company?

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Earlier this year, you settled your convertible notes and the company is now convertible debt free. Could you talk a little bit about your capital allocation priorities? And what's your appetite for M&A?

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Yes. Just in the last couple of minutes that we have, maybe you can talk about your key strategic priorities over the next 12 to 24 months. What are you most excited about? I mean a lot of it is not even assuming that we get back anywhere close to mid-cycle on the macro, I would love to hear your thoughts there.

Question: Michael Ng - Goldman Sachs Group Inc - Analyst : Jeremy, it's been such a privilege to have you on stage here with us. Really appreciate it.