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Published: 2022-08-04 00:00:00 ET
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Exhibit 99.2


Reported Consolidated Results

ZILLOW GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
June 30, 2022December 31, 2021
Assets
Current assets:
Cash and cash equivalents$2,181 $2,611 
Short-term investments1,362 514 
Accounts receivable, net
74 155 
Mortgage loans held for sale61 107 
Inventory23 3,913 
Prepaid expenses and other current assets141 153 
Restricted cash2 227 
Total current assets3,844 7,680 
Contract cost assets27 35 
Property and equipment, net246 215 
Right of use assets133 130 
Goodwill2,374 2,374 
Intangible assets, net153 180 
Other assets6 81 
Total assets$6,783 $10,695 
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable$16 $17 
Accrued expenses and other current liabilities92 161 
Accrued compensation and benefits61 108 
Borrowings under credit facilities55 2,312 
Deferred revenue52 51 
Lease liabilities, current portion28 24 
Securitization term loans— 1,209 
Total current liabilities304 3,882 
Lease liabilities, net of current portion150 148 
Convertible senior notes1,657 1,319 
Other long-term liabilities5 5 
Total liabilities2,116 5,354 
Shareholders’ equity:
Class A common stock
— — 
Class B common stock
— — 
Class C capital stock
— — 
Additional paid-in capital6,167 7,001 
Accumulated other comprehensive income (loss)(13)7 
Accumulated deficit(1,487)(1,667)
Total shareholders’ equity4,667 5,341 
Total liabilities and shareholders’ equity$6,783 $10,695 



ZILLOW GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except share data, which are presented in thousands, and per share data)
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2022202120222021
Revenue:
Homes$505 $777 $4,226 $1,481 
IMT475 476 965 922 
Mortgages29 57 75 125 
Total revenue1,009 1,310 5,266 2,528 
Cost of revenue (1):
Homes478 708 4,015 1,353 
IMT71 43 136 90 
Mortgages17 21 37 40 
Total cost of revenue566 772 4,188 1,483 
Gross profit443 538 1,078 1,045 
Operating expenses:
Sales and marketing (1)
182 229 489 426 
Technology and development (1)
119 129 233 249 
General and administrative (1)
123 114 242 215 
Restructuring costs (1)
1 — 39 — 
Acquisition-related costs— 4 — 5 
Total operating expenses425 476 1,003 895 
Income from operations18 62 75 150 
Loss on extinguishment of debt(7)(1)(21)(2)
Other income12 1 20 3 
Interest expense(9)(39)(53)(79)
Income before income taxes14 23 21 72 
Income tax benefit (expense)(6)(13)3 (10)
Net income$8 $10 $24 $62 
Net income per share:
Basic$0.03 $0.04 $0.10 $0.25 
Diluted$0.03 $0.04 $0.09 $0.24 
Weighted-average shares outstanding:
Basic243,942 248,152 246,229 245,763 
Diluted245,163 261,496 248,544 260,484 
(1) Includes share-based compensation expense as follows:
Cost of revenue$4 $3 $7 $6 
Sales and marketing14 13 26 23 
Technology and development38 35 67 61 
General and administrative45 37 83 62 
Restructuring costs1 — 10 — 
Total$102 $88 $193 $152 
Other Financial Data:
Income (loss) before income taxes:
Homes segment$(14)$(59)$(82)$(117)
IMT segment69 134 177 277 
Mortgages segment(38)(18)(65)(20)
Corporate items (2)(3)(34)(9)(68)
Total income before income taxes$14 $23 $21 $72 
Adjusted EBITDA (3):
Homes segment$(1)$(29)$22 $(62)
IMT segment186 218 395 427 
Mortgages segment(21)(6)(33)— 
Total Adjusted EBITDA$164 $183 $384 $365 
(2) Certain corporate items are not directly attributable to any of our segments, including the loss on extinguishment of debt, interest income earned on our short-term investments included in other income and interest costs on our convertible senior notes included in interest expense.
(3) Adjusted EBITDA is a non-GAAP financial measure; it is not calculated or presented in accordance with U.S. generally accepted accounting principles, or GAAP. See Exhibit 99.1 for more information regarding our presentation of Adjusted EBITDA and for a reconciliation of Adjusted EBITDA to net income on a consolidated basis and income (loss) before income taxes for each segment, the most directly comparable GAAP financial measures, for each of the periods presented.


ZILLOW GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
 Six Months Ended
June 30,
 20222021
Operating activities
Net income$24 $62 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization87 58 
Share-based compensation193 152 
Amortization of right of use assets11 13 
Amortization of contract cost assets16 20 
Amortization of debt discount and debt issuance costs24 50 
Loss on extinguishment of debt21 2 
Inventory valuation adjustment9 — 
Other adjustments to reconcile net income to cash provided by (used in) operating activities (9)8 
Changes in operating assets and liabilities:
Accounts receivable81 (33)
Mortgage loans held for sale46 160 
Inventory3,881 (678)
Prepaid expenses and other assets4 (36)
Contract cost assets(8)(17)
Lease liabilities(8)(14)
Accounts payable(1)2 
Accrued expenses and other current liabilities(69)81 
Accrued compensation and benefits(47)8 
Deferred revenue1 5 
Other long-term liabilities(1)(1)
Net cash provided by (used in) operating activities4,255 (158)
Investing activities
Proceeds from maturities of investments160 1,330 
Purchases of investments(1,023)— 
Purchases of property and equipment(60)(25)
Purchases of intangible assets(11)(10)
Net cash provided by (used in) investing activities(934)1,295 
Financing activities
Proceeds from issuance of Class C capital stock, net of issuance costs— 545 
Proceeds from borrowings on credit facilities— 610 
Repayments of borrowings on credit facilities(2,205)(147)
Net repayments on warehouse line of credit and repurchase agreements(58)(146)
Repurchases of Class A common stock and Class C capital stock(597)— 
Settlement of long-term debt(1,158)— 
Proceeds from exercise of stock options42 76 
Net cash provided by (used in) financing activities(3,976)938 
Net increase (decrease) in cash, cash equivalents and restricted cash during period(655)2,075 
Cash, cash equivalents and restricted cash at beginning of period2,838 1,779 
Cash, cash equivalents and restricted cash at end of period$2,183 $3,854 
Supplemental disclosures of cash flow information
Cash paid for interest$35 $28 
Cash paid for taxes4 — 
Noncash transactions:
Write-off of fully amortized intangible assets$196 $4 
Settlement of beneficial interests in securitizations79 — 
Write-off of fully depreciated property and equipment33 24 
Capitalized share-based compensation20 9 
Recognition of operating right of use assets and lease liabilities14 — 
Property and equipment purchased on account2 1 



Non-GAAP Net Income per Share
Our presentation of non-GAAP net income per share excludes the impact of share-based compensation, restructuring costs, acquisition-related costs, the loss on extinguishment of debt and income taxes. 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 per share as supplemental information to investors, as we believe the exclusion of share-based compensation, restructuring costs, acquisition-related costs, the loss on extinguishment of debt and income taxes facilitates investors’ operating performance comparisons on a period-to-period basis. You should not consider non-GAAP net income per share in isolation or as a substitute for analysis of our results as reported under GAAP.

The following table sets forth a reconciliation of non-GAAP net income, adjusted, to net income, as reported on a GAAP basis, and the calculation of non-GAAP net income per share - basic and diluted, for each of the periods presented (in millions, except share data, which are presented in thousands, and per share data, unaudited):
Three Months Ended
June 30,		Six Months Ended
June 30,
 2022202120222021
Net income, as reported
$8 $10 $24 $62 
Share-based compensation101 88 183 152 
Restructuring costs1 — 39 — 
Acquisition-related costs— 4 — 5 
Loss on extinguishment of debt7 1 21 2 
Income taxes6 13 (3)10 
Net income, adjusted$123 $116 $264 $231 
Non-GAAP net income per share:
Basic$0.51 $0.47 $1.07 $0.94 
Diluted$0.47 $0.44 $0.99 $0.89 
Weighted-average shares outstanding:
Basic243,942 248,152 246,229 245,763 
Diluted270,610 261,496 273,991 260,484 
Diluted non-GAAP net income per share for the periods presented is calculated using diluted weighted-average shares outstanding, which includes potential shares of Class A common stock and Class C capital stock for the periods in which their effect would have been dilutive. The potential shares of Class A common stock and Class C capital stock were excluded from the calculation of non-GAAP net income per share for certain periods presented if their effect would have been antidilutive. The following table reconciles the denominators used in the basic and diluted non-GAAP net income per share calculations (in thousands, unaudited):
Three Months Ended
June 30,		Six Months Ended
June 30,
 2022202120222021
Denominator for basic calculation243,942 248,152 246,229 245,763 
Effect of dilutive securities:
     Option awards964 10,472 1,757 11,450 
     Unvested restricted stock units257 2,872 558 3,271 
Convertible senior notes due in 2024 and 202625,447 — 25,447 — 
          Denominator for dilutive calculation270,610 261,496 273,991 260,484 




Segment Results of Operations
The following tables present our segment results for the periods presented (in millions, unaudited):
 Three Months Ended
June 30, 2022		Three Months Ended
June 30, 2021
HomesIMTMortgagesHomesIMTMortgages
Revenue$505 $475 $29 $777 $476 $57 
Cost of revenue478 71 17 708 43 21 
Gross profit27 404 12 69 433 36 
Operating expenses:
Sales and marketing21 143 18 65 137 27 
Technology and development3 105 11 30 90 9 
General and administrative16 87 20 28 68 18 
Restructuring costs1 — — — — — 
Acquisition-related costs— — — — 4 — 
Total operating expenses41 335 49 123 299 54 
Income (loss) from operations(14)69 (37)(54)134 (18)
Segment other income7 — — — — 1 
Segment interest expense — — (1)(5)— (1)
Loss on extinguishment of debt(7)— — — — — 
Income (loss) before income taxes (1)
$(14)$69 $(38)$(59)$134 $(18)
 Six Months Ended
June 30, 2022		Six Months Ended
June 30, 2021
HomesIMTMortgagesHomesIMTMortgages
Revenue$4,226 $965 $75 $1,481 $922 $125 
Cost of revenue4,015 136 37 1,353 90 40 
Gross profit211 829 38 128 832 85 
Operating expenses:
Sales and marketing163 285 41 120 254 52 
Technology and development15 197 21 63 169 17 
General and administrative40 164 38 53 127 35 
Restructuring costs31 6 2 — — — 
Acquisition-related costs— — — — 5 — 
Total operating expenses249 652 102 236 555 104 
Income (loss) from operations(38)177 (64)(108)277 (19)
Segment other income13 — 1 — — 2 
Segment interest expense (36)— (2)(9)— (3)
Loss on extinguishment of debt(21)— — — — — 
Income (loss) before income taxes (1)
$(82)$177 $(65)$(117)$277 $(20)
(1) The following table presents the reconciliation of total segment income before income taxes to consolidated income before income taxes for the periods presented (in millions):



Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
Total segment income before income taxes$17 $57 $30 $140 
Corporate interest expense(8)(33)(15)(67)
Corporate other income5 — 6 1 
Loss on extinguishment of debt— (1)— (2)
Consolidated income before income taxes$14 $23 $21 $72 
Certain corporate items are not directly attributable to any of our segments, including the loss on extinguishment of debt, interest income earned on our short-term investments included in other income and interest costs on our convertible senior notes included in interest expense.

Key Metrics
The following table presents our visits and average monthly unique users for each of the periods presented (in millions):
 Three Months Ended
June 30,		2021 to 2022
% Change
 20222021
Visits (1)2,897 2,750 5 %
Average monthly unique users (2)234 229 2 %
(1) Visits includes visits to the Zillow, Trulia and StreetEasy mobile apps and websites. We measure Zillow and StreetEasy visits with Google Analytics and Trulia visits with Adobe Analytics.
(2) Zillow, StreetEasy and HotPads measure unique users with Google Analytics, and Trulia measures unique users with Adobe Analytics.

The following table presents loan origination volume by purpose and in total for Zillow Home Loans for the periods presented (in millions):
Three Months Ended
June 30,		2021 to 2022
% Change
20222021
Purchase loan origination volume$194 $230 (16)%
Refinance loan origination volume136 658 (79)%
Total loan origination volume$330 $888 (63)%