ZILLOW GROUP, INC., 10-K filed on 2/11/2025
Annual Report
v3.25.0.1
Cover Page - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2024
Feb. 04, 2025
Jun. 28, 2024
Entity Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-36853    
Entity Registrant Name ZILLOW GROUP, INC.    
Entity Incorporation, State or Country Code WA    
Entity Tax Identification Number 47-1645716    
Entity Address, Address Line One 1301 Second Avenue    
Entity Address, Address Line Two Floor 36    
Entity Address, City or Town Seattle    
Entity Address, State or Province WA    
Entity Address, Postal Zip Code 98101    
City Area Code 206    
Local Phone Number 470-7000    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 9.4
Documents Incorporated by Reference The information required by Part III of this Report, to the extent not set forth herein, is incorporated in this Report by reference to the Registrant’s definitive proxy statement relating to the 2025 annual meeting of shareholders. The definitive proxy statement will be filed with the Securities and Exchange Commission within 120 days after the end of the 2024 fiscal year.    
Amendment Flag false    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001617640    
Class A common stock      
Entity Information [Line Items]      
Title of 12(b) Security Class A Common Stock, par value $0.0001 per share    
Trading Symbol ZG    
Security Exchange Name NASDAQ    
Entity Common Stock, Shares Outstanding (in shares)   54,333,292  
Class B Common Stock      
Entity Information [Line Items]      
Entity Common Stock, Shares Outstanding (in shares)   6,217,447  
Class C capital stock      
Entity Information [Line Items]      
Title of 12(b) Security Class C Capital Stock, par value $0.0001 per share    
Trading Symbol Z    
Security Exchange Name NASDAQ    
Entity Common Stock, Shares Outstanding (in shares)   182,007,337  
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Audit Information
12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Firm ID 34
Auditor Name DELOITTE & TOUCHE LLP
Auditor Location Seattle, Washington
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Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 1,082 $ 1,492
Short-term investments 776 1,318
Accounts receivable, net 104 96
Mortgage loans held for sale 159 100
Prepaid expenses and other current assets 210 140
Restricted cash 3 3
Total current assets 2,334 3,149
Contract cost assets 25 23
Property and equipment, net 360 328
Right of use assets 59 73
Goodwill 2,823 2,817
Intangible assets, net 207 241
Other assets 21 21
Total assets 5,829 6,652
Current liabilities:    
Accounts payable 30 28
Accrued expenses and other current liabilities 105 107
Accrued compensation and benefits 57 47
Borrowings under credit facilities 145 93
Deferred revenue 62 52
Lease liabilities, current portion 14 37
Convertible senior notes, current portion 418 607
Total current liabilities 831 971
Lease liabilities, net of current portion 83 95
Convertible senior notes, net of current portion 0 1,000
Other long-term liabilities 67 60
Total liabilities 981 2,126
Commitments and contingencies (Note 15)
Shareholders’ equity:    
Preferred stock, $0.0001 par value; authorized — 30,000,000 shares; no shares issued and outstanding 0 0
Additional paid-in capital 6,733 6,301
Accumulated other comprehensive loss (3) (5)
Accumulated deficit (1,882) (1,770)
Total shareholders’ equity 4,848 4,526
Total liabilities and shareholders’ equity 5,829 6,652
Class A common stock    
Shareholders’ equity:    
Common stock/capital stock 0 0
Class B Common Stock    
Shareholders’ equity:    
Common stock/capital stock 0 0
Class C capital stock    
Shareholders’ equity:    
Common stock/capital stock $ 0 $ 0
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Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2024
Dec. 31, 2023
Preferred stock, par value (usd per share) $ 0.0001 $ 0.0001
Preferred stock, authorized (in shares) 30,000,000 30,000,000
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Class A common stock    
Common stock, par value (usd per share) $ 0.0001 $ 0.0001
Common stock, authorized (in shares) 1,245,000,000 1,245,000,000
Common stock, issued (in shares) 54,333,292 55,282,702
Common stock, outstanding (in shares) 54,333,292 55,282,702
Class B Common Stock    
Common stock, par value (usd per share) $ 0.0001 $ 0.0001
Common stock, authorized (in shares) 15,000,000 15,000,000
Common stock, issued (in shares) 6,217,447 6,217,447
Common stock, outstanding (in shares) 6,217,447 6,217,447
Class C capital stock    
Common stock, par value (usd per share) $ 0.0001 $ 0.0001
Common stock, authorized (in shares) 600,000,000 600,000,000
Common stock, issued (in shares) 181,937,981 171,853,566
Common stock, outstanding (in shares) 181,937,981 171,853,566
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Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Total revenue $ 2,236 $ 1,945 $ 1,958
Cost of revenue 527 421 367
Gross profit 1,709 1,524 1,591
Operating expenses:      
Sales and marketing 790 658 664
Technology and development 585 560 498
General and administrative 524 553 498
Impairment and restructuring costs 6 19 24
Acquisition-related costs 1 4 0
Total operating expenses 1,906 1,794 1,684
Loss from continuing operations (197) (270) (93)
Gain (loss) on extinguishment of debt (1) 1 0
Other income, net 127 151 43
Interest expense (36) (36) (35)
Loss from continuing operations before income taxes (107) (154) (85)
Income tax expense (5) (4) (3)
Net loss from continuing operations (112) (158) (88)
Net loss from discontinued operations, net of income taxes 0 0 (13)
Net loss $ (112) $ (158) $ (101)
Net loss from continuing operations per share - basic (usd per share) $ (0.48) $ (0.68) $ (0.36)
Net loss from continuing operations per share - diluted (usd per share) (0.48) (0.68) (0.36)
Net loss per share - basic (usd per share) (0.48) (0.68) (0.42)
Net loss per share - diluted (usd per share) $ (0.48) $ (0.68) $ (0.42)
Weighted-average shares outstanding - basic (in shares) 234,077 233,575 242,163
Weighted-average shares outstanding - diluted (in shares) 234,077 233,575 242,163
Operating Segments      
Total revenue $ 2,236    
Total For Sale revenue      
Total revenue 1,739 $ 1,548 $ 1,641
Residential      
Total revenue 1,594 1,452 1,522
Mortgages      
Total revenue 145 96 119
Rentals      
Total revenue 453 357 274
Other      
Total revenue $ 44 $ 40 $ 43
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Consolidated Statements of Comprehensive Loss - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net loss $ (112) $ (158) $ (101)
Other comprehensive income (loss):      
Net unrealized gains (losses) on investments 2 10 (22)
Total other comprehensive income (loss) 2 10 (22)
Comprehensive loss $ (110) $ (148) $ (123)
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Consolidated Statements of Shareholders' Equity - USD ($)
shares in Thousands, $ in Millions
Total
Cumulative-effect adjustment from adoption of guidance on accounting for convertible instruments and contracts in an entity’s own equity
Class A Common Stock, Class B Common Stock and Class C Capital Stock
Additional Paid-In Capital
Additional Paid-In Capital
Cumulative-effect adjustment from adoption of guidance on accounting for convertible instruments and contracts in an entity’s own equity
Accumulated Deficit
Accumulated Deficit
Cumulative-effect adjustment from adoption of guidance on accounting for convertible instruments and contracts in an entity’s own equity
Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2021     250,630          
Beginning balance at Dec. 31, 2021 $ 5,341 $ (336) $ 0 $ 7,001 $ (492) $ (1,667) $ 156 $ 7
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of capital stock upon exercise of stock options (in shares)     1,129          
Issuance of Class C capital stock upon exercise of stock options 45     45        
Vesting of restricted stock units (in shares)     4,722          
Share-based compensation expense 502     502        
Repurchases of Class A common stock and Class C capital stock (in shares)     (22,213)          
Repurchases of Class A common stock and Class C capital stock (947)     (947)        
Net loss (101)         (101)    
Other comprehensive income (loss) (22)             (22)
Ending balance (in shares) at Dec. 31, 2022     234,268          
Ending balance at Dec. 31, 2022 4,482   $ 0 6,109   (1,612)   (15)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of capital stock upon exercise of stock options (in shares)     1,829          
Issuance of Class C capital stock upon exercise of stock options 72     72        
Vesting of restricted stock units (in shares)     6,400          
Share-based compensation expense 524     524        
Repurchases of Class A common stock and Class C capital stock (in shares)     (9,523)          
Repurchases of Class A common stock and Class C capital stock (424)     (424)        
Issuance of Class C capital stock in connection with an acquisition (in shares)     380          
Issuance of Class C capital stock in connection with an acquisition 20     20        
Net loss (158)         (158)    
Other comprehensive income (loss) 10             10
Ending balance (in shares) at Dec. 31, 2023     233,354          
Ending balance at Dec. 31, 2023 $ 4,526   $ 0 6,301   (1,770)   (5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of capital stock upon exercise of stock options (in shares) 5,474   5,474          
Issuance of Class C capital stock upon exercise of stock options $ 212     212        
Vesting of restricted stock units (in shares)     6,436          
Share-based compensation expense 520     520        
Settlement of capped call transactions     (2,141)          
Settlement of convertible senior notes (in shares)     6,462          
Settlement of convertible senior notes 1     1        
Repurchases of Class A common stock and Class C capital stock (in shares)     (7,096)          
Repurchases of Class A common stock and Class C capital stock (301)     (301)        
Net loss (112)         (112)    
Other comprehensive income (loss) 2             2
Ending balance (in shares) at Dec. 31, 2024     242,489          
Ending balance at Dec. 31, 2024 $ 4,848   $ 0 $ 6,733   $ (1,882)   $ (3)
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Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating activities      
Net loss $ (112) $ (158) $ (101)
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization 240 187 157
Share-based compensation 448 451 451
Amortization of right of use assets 10 35 23
Amortization of contract cost assets 19 21 30
Amortization of debt discount and debt issuance costs 4 5 26
Loss (gain) on extinguishment of debt 1 (1) 21
Impairment and restructuring costs 6 16 0
Accretion of bond discount (27) (35) (18)
Other adjustments to reconcile net loss to net cash provided by operating activities 14 (2) 24
Changes in operating assets and liabilities:      
Accounts receivable (8) (24) 82
Mortgage loans held for sale (59) (59) 66
Inventory 0 0 3,904
Prepaid expenses and other assets (74) (17) 6
Contract cost assets (21) (21) (18)
Lease liabilities (35) (30) (21)
Accounts payable 2 6 3
Accrued expenses and other current liabilities 0 (18) (71)
Accrued compensation and benefits 10 (1) (60)
Deferred revenue 8 1 (7)
Other long-term liabilities 2 (2) 7
Net cash provided by operating activities 428 354 4,504
Investing activities      
Proceeds from maturities of investments 1,042 1,287 802
Proceeds from sales of investments 237 0 0
Purchases of investments (706) (664) (2,191)
Purchases of property and equipment (143) (135) (115)
Purchases of intangible assets (28) (30) (25)
Cash paid for acquisitions, net (7) (433) (4)
Net cash provided by (used in) investing activities 395 25 (1,533)
Financing activities      
Repayments of borrowings on credit facilities 0 0 (2,206)
Net borrowings (repayments) on warehouse line of credit and repurchase agreements 52 56 (76)
Repurchases of Class A common stock and Class C capital stock (301) (424) (947)
Settlement of long-term debt (1,196) (56) (1,158)
Proceeds from exercise of stock options 212 72 46
Net cash used in financing activities (1,233) (352) (4,341)
Net increase (decrease) in cash, cash equivalents and restricted cash during period (410) 27 (1,370)
Cash, cash equivalents and restricted cash at beginning of period 1,495 1,468 2,838
Cash, cash equivalents and restricted cash at end of period 1,085 1,495 1,468
Supplemental disclosures of cash flow information      
Cash paid for interest 35 28 50
Cash paid for taxes 6 6 6
Noncash transactions:      
Write-off of fully depreciated property and equipment 85 63 53
Capitalized share-based compensation 72 73 51
Write-off of fully amortized intangible assets 24 5 203
Initial fair value of contingent consideration recognized in connection with an acquisition 0 81 0
Value of Class C capital stock issued in connection with an acquisition 0 20 0
Settlement of beneficial interests in securitizations $ 0 $ 0 $ (79)
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Organization and Description of Business
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Organization and Description of Business Organization and Description of Business
Zillow Group is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing and renting experiences.
Our portfolio of affiliates, subsidiaries and brands includes Zillow Premier Agent, Zillow Home Loans, our mortgage origination operations and affiliate lender, Zillow Rentals, Trulia, StreetEasy, HotPads and Out East. In addition, Zillow Group provides a comprehensive suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Spruce and Follow Up Boss.
In the fourth quarter of 2021, we began to wind down the operations of Zillow Offers, our iBuying business which purchased and sold homes directly in markets across the country. The wind down was completed in the third quarter of 2022, and we have presented the financial results of Zillow Offers as discontinued operations in our consolidated statements of operations for the year ended December 31, 2022. See Note 3 for additional information.
Certain Significant Risks and Uncertainties
We operate in a dynamic industry and, accordingly, can be affected by a variety of factors, which are uncertain and difficult to predict. For example, we believe that potential changes in any of the following areas may have a significant impact on us in terms of our future financial position, results of operations or cash flows: the health and stability of the economy and United States residential real estate industry, including changes in inflationary conditions, interest rates, housing availability and affordability, labor shortages and supply chain issues; our ability to navigate industry changes, including as a result of past, pending or future lawsuits, settlements or government investigations; our ability to manage advertising and product inventory and pricing and maintain relationships with our real estate partners; our ability to comply with current and future rules and requirements promulgated by NAR, MLSs, or other real estate industry groups or governing bodies, and to maintain or establish
relationships with listing and data providers; our investment of resources to pursue strategies and develop new products and services that may not prove effective or that are not attractive for customers and real estate partners or that do not allow us to compete successfully; our ability to operate and grow the mortgage operations of Zillow Home Loans, our affiliate lender, including the ability to obtain or maintain sufficient financing and resell originated mortgages on the secondary market; the duration and impact of natural disasters, climate change, geopolitical events, and other catastrophic events (including public health crises) on our ability to operate, demand for our products or services or general economic conditions; outcomes of legal proceedings and government investigations; our ability to attract, engage, and retain a highly skilled workforce; protection of Zillow Group’s information and systems against security breaches or disruptions in operations; reliance on third-party services to support critical functions of our business; protection of our brand and intellectual property; and changes in laws or government regulation affecting our business, among other things.
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Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements include Zillow Group, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These consolidated financial statements have been prepared in conformity with GAAP.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to the accounting for certain revenue offerings, amortization period and recoverability of contract cost assets, website and software development costs, recoverability of long-lived assets and intangible assets, share-based compensation, income taxes, business combinations, including the initial and subsequent fair value measurements of assets (primarily intangible assets), liabilities and contingent consideration, and the recoverability of goodwill, among others. To the extent there are material differences between these estimates, judgments or assumptions and actual results, our financial statements will be affected. The health of the housing market and the broader economy may result in additional uncertainty with respect to estimates, judgments and assumptions, which may materially impact the estimates previously listed, among others.
Concentrations of Credit Risk
Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of cash and cash equivalents, investments, accounts receivable and mortgage loans held for sale. We place cash and cash equivalents and investments with major financial institutions, which management assesses to be of high credit quality, in order to limit the exposure of our investments to credit risk.
Credit risk with respect to accounts receivable is dispersed due to the large number of customers. There were no customers that comprised 10% or more of our total accounts receivable as of December 31, 2024 or 2023. Further, our credit risk on accounts receivable is mitigated by the relatively short payment terms that we offer. Collateral is not required for accounts receivable. We maintain an allowance for doubtful accounts such that receivables are stated at net realizable value.
Similarly, our credit risk on mortgage loans held for sale is dispersed due to a large number of customers and is mitigated by the fact that we typically sell mortgages on the secondary market within a relatively short period of time after the loan is originated.
Cash and Cash Equivalents
Cash includes demand deposits with banks or financial institutions. Cash equivalents include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Our cash equivalents represent investments with original maturities of three months or less. We regularly maintain cash in excess of federally insured limits at financial institutions.
Short-term Investments
Our investments consist of fixed income securities, which include U.S. government treasury securities, investment grade corporate securities, U.S. government agency securities and commercial paper. The investments are available to support current
operations and are classified as short-term investments measured at fair value. Our investment policy only allows for purchases of investment-grade securities and provides guidelines on concentrations to ensure minimum risk of loss. We evaluate whether unrealized losses on available-for-sale debt securities are the result of credit worthiness of the securities held or other non-credit related factors. If an unrealized loss is the result of credit quality factors, we recognize an allowance reflective of our current estimate of credit losses expected to be incurred over the life of the financial instrument on a specific identification basis upon initial recognition and at each reporting period. If a reduction in value is a result of other factors, we continue to classify the losses in comprehensive loss unless either we intend to sell the security or it is more likely than not we will be required to sell the security. We did not identify any unrealized loss positions in our available-for-sale securities that were the result of credit losses as of December 31, 2024 or 2023. Additionally, we have the ability to hold our investments to maturity and more likely than not will not be required to sell the securities before a recovery of the amortized cost basis has occurred.
Restricted Cash
Restricted cash primarily consists of amounts held in escrow related to indemnification holdbacks for certain of our acquisitions and amounts used to fund customer home purchases in our mortgage origination business.
Mortgage Loans Held for Sale
Mortgage loans held for sale include residential mortgages originated for sale in the secondary market in connection with our mortgage origination business. We have elected the fair value option for all mortgage loans held for sale as election of this option allows for a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. Mortgage loans held for sale are initially recorded at fair value based on either sale commitments or current market quotes and are adjusted for subsequent changes in fair value until the loans are sold. Net origination costs and fees associated with mortgage loans are recognized as incurred. We sell substantially all of the mortgages we originate and the related servicing rights to third-party purchasers. Interest income is earned from the date a mortgage loan is originated until the loan is sold and is classified within other income, net in the consolidated statements of operations.
Generally, mortgage loans originated are sold within a short period of time in the secondary mortgage market on a servicing released, nonrecourse basis, which limits exposure to nonperformance by loan buyer counterparties. However, we remain liable for certain limited representations and warranties related to loan sales, such as non-compliance with defined loan origination or documentation standards, including misstatement in the loan documents, early payoff or default on early payments. Mortgage investors could seek to have us buy back loans or compensate them for losses incurred on mortgages we have sold based on claims that we breached our limited representations and warranties. We record a reserve for probable losses in connection with the sale of mortgage loans within accrued expenses and other current liabilities in the consolidated balance sheet.
Loan Commitments and Related Derivatives
We are party to IRLCs, which are extended to borrowers who have applied for loan funding and meet defined credit and underwriting criteria in connection with our Zillow Home Loans mortgage origination business. IRLCs are accounted for as derivative instruments recorded at fair value with gains and losses recognized in revenue in the consolidated statements of operations. We manage our interest rate risk related to IRLCs and mortgage loans held for sale through the use of derivative instruments, generally forward contracts on MBSs, which are commitments to either purchase or sell a financial instrument at a future date for a specified price, and mandatory loan commitments, which are an obligation by an investor to buy loans at a specified price within a specified time period. We do not enter into or hold derivatives for trading or speculative purposes, and our derivatives are not designated as hedging instruments. Changes in the fair value of our derivative financial instruments are recognized in revenue in our consolidated statements of operations, and the fair values are reflected in other current assets or other current liabilities, as applicable. Refer to Note 4 to our consolidated financial statements for additional information regarding IRLCs and related derivatives.
There are no credit-risk-related contingent features within our derivative agreements, and counterparty risk is considered minimal. Gains and losses on IRLCs are substantially offset by corresponding gains or losses on forward contracts on MBSs and mandatory loan commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 90 days.
Contract Balances
Accounts receivable represent our unconditional right to consideration. Accounts receivable are generally due within 30 days and are recorded net of the allowance for doubtful accounts. The allowance for doubtful accounts represents our estimate
of expected credit losses over the contractual life of the accounts receivable. To evaluate the adequacy of our allowance for doubtful accounts each reporting period, we analyze the accounts receivable balances with similar risk characteristics on a collective basis, considering factors such as the aging of receivable balances, payment terms, historical loss experience, current information and future expectations. Changes to the allowance for doubtful accounts are adjusted through credit loss expense, which is included in general and administrative expenses in the consolidated statements of operations.
Contract assets represent our right to consideration in exchange for goods and services that we have transferred to the customer when that right is conditional on something other than the passage of time. Contract assets are primarily related to our Premier Agent Flex, Zillow Lease Connect and StreetEasy Experts offerings, whereby we estimate variable consideration based on the expected number of real estate transactions to be closed for Premier Agent Flex and StreetEasy Experts, and qualified leases to be secured for Zillow Lease Connect. We recognize revenue when we satisfy our performance obligations under the corresponding contracts. The current portion of contract assets are recorded within prepaid expenses and other current assets and the long-term portion of contract assets are recorded within other assets in our consolidated balance sheets.
Contract liabilities consist of deferred revenue, which relates to payments received in advance of performance under a revenue contract. Deferred revenue is primarily related to prepaid advertising fees received or billed in advance of satisfying our performance obligations and prepaid but unrecognized subscription revenue. Deferred revenue is recognized when or as we satisfy our obligations under contracts with customers.
Contract Cost Assets
We capitalize certain incremental costs of obtaining contracts with customers which we expect to recover. These costs relate to commissions paid to sales personnel, primarily for our Premier Agent and Rentals products. As a practical expedient, we recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. Capitalized commission costs are recorded as contract cost assets in our consolidated balance sheets. Contract cost assets are amortized to expense on a straight-line basis over a period that is consistent with the transfer to the customer of the products or services to which the asset relates, generally the estimated life of the customer relationship. Amortization expense related to contract cost assets is included in sales and marketing expenses in our consolidated statements of operations. In determining the estimated life of our customer relationships, we consider quantitative and qualitative data, including, but not limited to, historical customer data, recent changes or expected changes in product or service offerings and changes in how we monetize our products and services.
We monitor our contract cost assets for impairment and recognize an impairment loss in the consolidated statements of operations to the extent the carrying amount of the asset recognized exceeds the amount of consideration that we expect to receive in the future and that we have received but have not recognized in revenue less the costs that relate directly to providing those goods or services that have not yet been recognized as expenses. For the years ended December 31, 2024, 2023 and 2022, we did not record any material impairment losses to our contract cost assets.
Property and Equipment
Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. The useful lives are as follows:
 
Computer equipment  
3 years
Office equipment, furniture and fixtures  
5 to 7 years
Leasehold improvements  Shorter of expected useful life or lease term
Maintenance and repair costs are charged to expense as incurred. Major improvements, which extend the useful life of the related asset, are capitalized. Upon disposal of a fixed asset, we record a gain or loss based on the difference between the proceeds received and the net book value of the disposed asset. We remove fully depreciated property and equipment from the cost and accumulated depreciation amounts disclosed.
Website and Software Development Costs
Costs incurred in the preliminary stages of website and software development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental and deemed by management to be significant, are capitalized in property and equipment and amortized on a straight-line basis over their estimated useful lives. Maintenance and enhancement costs, including those costs in the post-implementation stages, are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the website or software that
result in added functionality, in which case the costs are capitalized and amortized on a straight-line basis over their estimated useful lives. Amortization expense related to capitalized website and software development costs is included in cost of revenue in our consolidated statements of operations.
Capitalized development activities placed in service are amortized over the expected useful lives of those releases, currently estimated at one to five years. The estimated useful lives of website and software development activities are reviewed frequently and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades and/or enhancements to the existing functionality. We remove fully amortized website and software development costs from the cost and accumulated amortization amounts disclosed.
Construction-in-progress primarily consists of website and software development costs that are capitalizable, but for which the associated applications have not been placed in service.
Leases
Our lease portfolio is primarily composed of operating leases for our office space. We determine whether a contract is or contains a lease at inception of the contract. Our operating leases are included in right of use assets and lease liabilities in our consolidated balance sheets. We do not have any material financing leases.
Right of use assets represent our right to use an underlying asset during the lease term and lease liabilities represent our obligation to make lease payments. Right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of the total lease payments contracted but not yet paid, including lease incentives not yet received, with the right of use assets further adjusted for any prepaid or accrued lease payments, lease incentives received and/or initial direct costs incurred.
We have lease agreements that include both lease components (e.g., fixed rent) and non-lease components (e.g., common area maintenance). For such leases, we account for the lease and non-lease components as a single component. Certain lease arrangements also include variable payments for costs such as common-area maintenance, utilities, taxes or other operating costs, which are based on a percentage of actual expenses incurred or a fluctuating rate which is unknown at the inception of the contract. These variable lease payments are excluded from the measurement of the right of use assets and lease liabilities.
Our leases have remaining lease terms ranging from less than one year to eight years, most of which include one or more options to extend the lease term. The renewal options can generally extend the lease term for up to an additional three to ten years. When determining if a renewal option is reasonably certain of being exercised at lease commencement, we consider several factors, including but not limited to, contract-based, asset-based and entity-based factors. We reassess the term of existing leases if there is a significant event or change in circumstances within our control that affects whether we are reasonably certain to exercise an option to extend a lease. Examples of such events or changes include construction of significant leasehold improvements or other modifications or customizations to the underlying asset, relevant business decisions or subleases. As of December 31, 2024, we have concluded that our renewal options are not reasonably certain of being exercised, therefore, renewal options are not included in the right of use assets and lease liabilities.
As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We apply a portfolio approach for determining the incremental borrowing rate based on the applicable lease terms and the current economic environment.
We recognize lease expense for operating leases on a straight-line basis over the lease term. Variable lease payments are generally recognized when incurred. For leases with an initial term of 12 months or less, we recognize the associated lease payments in the consolidated statements of operations on a straight-line basis over the lease term. These expenses are included in general and administrative expenses in the consolidated statements of operations.
Recoverability of Goodwill
Goodwill is measured as the excess of consideration transferred for an acquired business over the net of the acquisition date fair values of the assets acquired and the liabilities assumed, and is not amortized. We assess the impairment of goodwill at the reporting unit level on an annual basis, in our fourth quarter, or whenever events or changes in circumstances indicate that goodwill may be impaired. In our evaluation of goodwill, we initially perform a qualitative assessment to determine whether the existence of events or circumstances indicates that it is more likely than not that the carrying value of each reporting unit is greater than its fair value. If it is more likely than not that the carrying value of a reporting unit is greater than its fair value, we perform a quantitative assessment and an impairment charge is recorded in our statements of operations if the carrying value of the reporting unit exceeds its fair value.
Beginning in 2023, our chief operating decision maker (“CODM”), who is our chief executive officer (“CEO”), began managing our business, making operating decisions and evaluating operating performance on the basis of the company as a whole, instead of on a segment basis as he did prior to 2023. This aligns to our ongoing growth strategy and our intent to provide integrated customer solutions for all tasks and services related to facilitating real estate transactions. This resulted in revisions to the nature and substance of information regularly provided to and used by the CODM. Accordingly, in 2023, we realigned our operating structure, resulting in a single operating and reportable segment. In line with this, the nature and substance of the information regularly provided to our segment management similarly changed, and we determined that we had only one reporting unit. Because the segment change impacted the structure of our reporting units, we performed a qualitative goodwill impairment assessment immediately before and immediately after the change in reporting units. Based on those assessments, we determined it was more likely than not that the fair value of our current and legacy reporting units exceeded their respective carrying values. Therefore, we concluded that it was not necessary to perform a quantitative impairment test. During the years ended December 31, 2024, 2023 and 2022, we did not record any impairments related to goodwill.
Intangible Assets
We purchase and license data content from multiple data providers. This data content consists of United States county data about home details and other information relating to the purchase price of homes, both current and historical, as well as imagery, mapping and parcel data that is displayed on our mobile applications and websites. In some instances, we retain perpetual rights to this information after our contract with a vendor ends; in other instances, the information and data are licensed only during the fixed term of the agreement. Additionally, certain data license agreements provide for uneven payment amounts throughout the contract term.
We capitalize payments made to third parties for data licenses that we expect to recover through generation of revenue and margins. For data license contracts that include uneven payment amounts, we capitalize the payments as they are made as an intangible asset and the total contract value is typically amortized on a straight-line basis over the term of the contract, which is equivalent to the estimated useful life of the asset. The amortization period for the capitalized purchased content is based on our best estimate of the useful life of the asset, which ranges from three to seven years.
Under certain other data agreements, the underlying data is obtained on a subscription basis with consistent monthly or quarterly recurring payment terms over the contractual period. Upon the expiration of such arrangements, we no longer have the right to access the related data, and therefore, the costs incurred under such contracts are not capitalized and are expensed as payments are made.
We also capitalize costs related to the license of certain internal-use software from third parties, including certain licenses of software in cloud computing arrangements. Additionally, we capitalize costs incurred during the application development stage related to the development of internal-use software and enterprise cloud computing services. We expense costs as incurred related to the planning and post-implementation phases of development. Capitalized internal-use software costs are amortized on a straight-line basis over the estimated useful life of the asset, which is currently one to five years.
Intangibles-in-progress consist of purchased content and software that are capitalizable but have not been placed in service.
We also have intangible assets for developed technology, customer relationships, and trade names and trademarks which we recorded in connection with acquisitions. Purchased intangible assets with a determinable economic life are carried at cost less accumulated amortization. These intangible assets are amortized over the estimated useful life of the asset on a straight-line basis.
For each of the intangible assets described above, we have removed fully amortized assets from the cost and accumulated amortization amounts disclosed.
Recoverability of Intangible Assets with Definite Lives and Other Long-Lived Assets
We evaluate intangible assets and other long-lived assets, including our lease right of use assets, for impairment whenever events or circumstances indicate that they may not be recoverable. Recoverability is measured by comparing the carrying amount of an asset group to future undiscounted net cash flows expected to be generated. We group assets for purposes of such review at the lowest level for which identifiable cash flows of the asset group are largely independent of the cash flows of the other groups of assets and liabilities. If this comparison indicates impairment, the amount of impairment to be recognized is calculated as the difference between the carrying value and the fair value of the asset group.
Business Combinations
We recognize identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions for the preliminary purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that we identify adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. We recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined.
We record contingent consideration at its preliminary estimated fair value at the date of acquisition. The current portion of contingent consideration is recorded within accrued expenses and other current liabilities, and the long-term portion is recorded within other long-term liabilities in our consolidated balance sheets. The fair value of contingent consideration is remeasured each reporting period. Measurement period adjustments, if any, to the preliminary estimated fair value as of the acquisition date are recorded to goodwill during the measurement period, which may be up to one year from the acquisition date. Changes in fair value as a result of updated assumptions after the acquisition date are recorded in general and administrative expenses in the consolidated statements of operations.
Revenue Recognition
We recognize revenue when or as we satisfy our performance obligations by transferring control of the promised products or services to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those products or services.
As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component, as the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service is generally one year or less, with the exception of certain of our pay for performance products, including Premier Agent Flex and StreetEasy Experts, whereby we may not receive payment for services provided for up to two years after control of the promised products or services is transferred to our customers. In these cases, however, because a substantial portion of the consideration is variable, we have concluded the contracts do not include a significant financing component.
We do not disclose the transaction price related to remaining performance obligations for (i) contracts with an original expected duration of one year or less or (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for performance completed to date. The remaining duration over which we satisfy our performance obligations is generally less than one year.
We disaggregate our revenue into the following categories: Residential, Rentals, Mortgages and Other, described below. Our “For Sale revenue” subtotal includes our Residential and Mortgages revenue categories and represents our revenue from participation in residential real estate purchase and sale transactions.
Residential. Residential revenue includes revenue generated by our Premier Agent and new construction marketplaces, as well as revenue from the sale of advertising and business technology solutions for real estate professionals through ShowingTime+, StreetEasy for-sale product offerings, and Follow Up Boss.
Our Premier Agent program offers a suite of marketing and technology products and services to help real estate agents and brokers achieve their advertising goals while growing and managing their businesses and brands. The marketing and business technology products and services promised to Premier Agent partners are delivered over time, as the customer simultaneously receives and consumes the benefit of the performance obligations.
Premier Agent advertising products, which include the delivery of validated customer connections, or leads, are offered on a share of voice (“market-based pricing”) and pay for performance basis. Connections are delivered when consumer contact information is provided to Premier Agent partners. We do not promise any minimum or maximum number of connections to customers, but instead control when and how many connections to deliver based on a customer’s share of voice. A Premier Agent partners’ share of voice in a zip code is determined by their proportional monthly prepaid spend in that zip code as a percentage of the total monthly prepaid spend of all Premier Agent partners in that zip code, and determines the proportion of connections a Premier Agent partner receives. The number of connections delivered for a given spend level is dynamic; as
demand for advertising in a zip code increases or decreases, the number of connections delivered to a Premier Agent partner in that zip code decreases or increases accordingly.
We recognize revenue related to Premier Agent market-based pricing products and services based on the monthly prepaid spend recognized on a straight-line basis during the monthly billing period over which the products and services are provided. This methodology best depicts how we satisfy our performance obligations to customers, as we continuously transfer control of the performance obligations to the customer over time. We have not allocated the transaction price to each performance obligation within our Premier Agent market-based pricing arrangements, as the amounts recognized would be the same irrespective of any allocation.
Our pay for performance pricing model is called “Flex” and is available in certain markets to select partners. With the Flex model, Premier Agent partners are provided with leads at no initial cost and pay a performance advertising fee only when a real estate transaction is closed with one of the leads, generally within two years. With this pricing model, the transaction price represents variable consideration, as the amount to which we expect to be entitled varies based on the number of leads that convert into real estate transactions and the value of those transactions. We estimate variable consideration and record revenue as our performance obligations, or leads, are transferred. We do not believe that a significant reversal in the amount of cumulative revenue recognized will occur once the uncertainty related to the number of transactions closed is subsequently resolved. We record a contract asset for our estimate of the consideration to which we will be entitled when the right to the consideration is conditional. When the right to consideration becomes unconditional, upon the close of a real estate transaction, we reclassify amounts to accounts receivable.
Revenue from ShowingTime+ encompasses several products and services including Dotloop, ShowingTime, Zillow Showcase and Listing Media Services. Dotloop is a real estate transaction management SaaS solution. ShowingTime primarily generates revenue through Appointment Center, which is a SaaS and call center solution allowing real estate agents, brokerages and multiple listing services to efficiently schedule real estate viewing appointments on behalf of their customers. Both Dotloop and Appointment Center revenue are primarily billed monthly in advance and recognized ratably over the contract period, aligning to the satisfaction of our performance obligations. ShowingTime+ revenue also includes revenue generated from Zillow Showcase, an advertising and marketing solution which allows real estate agents to advertise an enhanced listing on Zillow’s mobile applications and websites. Customers pay for Zillow Showcase credits upfront. We recognize revenue by measuring our progress towards satisfaction of our performance obligations, primarily the enhanced listing features, using the output method of results achieved. ShowingTime+ revenue also includes Listing Media Services, a real estate photography and rich media platform. Customers typically pay for Listing Media Services upfront at the time of scheduling their appointment with a photographer. We recognize revenue at a point in time upon transfer of control of the media purchased to our customers.
Our new construction marketing solutions allow home builders to showcase their available inventory to home shoppers. New construction revenue primarily includes revenue generated by advertising sold to builders on a cost per residential community basis whereby we recognize revenue on a straight-line basis during the contractual period over which the communities are advertised on our mobile applications and websites. New construction revenue also includes revenue generated on a cost per impression basis whereby we recognize revenue as impressions are delivered to users interacting with our mobile applications and websites, which is the amount for which we have the right to invoice. Consideration for new construction products is billed in arrears.
StreetEasy for-sale revenue primarily consists of our StreetEasy Experts and StreetEasy subscription offerings. StreetEasy Experts is our pay for performance pricing model available in the New York City market for which agents and brokers are provided with leads at no initial cost and pay a performance referral fee only when a real estate purchase transaction is closed with one of the leads. Under the StreetEasy Experts pricing model, the transaction price represents variable consideration, as the amount to which we expect to be entitled varies based on the number of leads that convert into real estate transactions and the value of those transactions. We estimate variable consideration based on the expected number of closed transactions during the period. We do not believe that a significant reversal in the amount of cumulative revenue recognized will occur once the uncertainty related to the number of transactions closed is subsequently resolved. We record a corresponding contract asset for the estimate of variable consideration for StreetEasy Experts when the right to the consideration is conditional. When the right to consideration becomes unconditional upon the close of a real estate transaction, we reclassify amounts to accounts receivable. Revenue generated through StreetEasy subscription offerings includes the sale of advertising and a suite of tools to developers, property managers, agents and other real estate professionals. StreetEasy subscription customers pay in advance on a cost per property basis, based on the property size and product tier. We recognize revenue on a straight-line basis over the contractual listing period which aligns to our satisfaction of performance obligations.
Follow Up Boss is a SaaS solution allowing real estate agents, teams and brokerages to manage real estate leads from the initial contact through the home buying or selling process. Follow Up Boss revenue is primarily billed in advance on a monthly basis and recognized ratably over the contract period, aligning to the satisfaction of our performance obligations.
Rentals. Rentals revenue includes the sale of advertising and a suite of tools to rental professionals, landlords and other market participants under the Zillow and StreetEasy brands. Rentals revenue includes revenue generated by advertising sold to property managers, landlords and other rental professionals on a cost per lead, lease, listing or impression basis or for a fixed fee for certain advertising packages. We recognize revenue as leads, clicks and impressions are provided to rental professionals, or as rental listings are published on our mobile applications and websites, which is the amount for which we have the right to invoice. We bill our fixed fee rentals products monthly in arrears and recognize revenue ratably over the contract period, aligning to the satisfaction of our performance obligations. The number of leases generated through our rentals pay per lease product, Zillow Lease Connect, during the period is accounted for as variable consideration. We estimate the amount of consideration based on the expected number of qualified leases secured during the period. We do not believe that a significant reversal in the amount of cumulative revenue recognized will occur once the uncertainty related to the number of leases secured is subsequently resolved. We record a contract asset for the estimate of variable consideration for Zillow Lease Connect when the right to the consideration is conditional. When the right to consideration becomes unconditional upon the execution of a lease, we reclassify amounts to accounts receivable. Rentals revenue also includes revenue generated from our rental applications product, through which potential renters can submit applications to multiple properties for a flat service fee. Rental applications customers pay upfront and we recognize revenue ratably over the contractual period during which the customer has the right to access and submit the rental application.
Mortgages. Mortgages revenue primarily includes revenue generated by Zillow Home Loans, our affiliated mortgage lender, and marketing products sold to mortgage professionals on a cost per lead basis, including our Custom Quote and Connect services.
Mortgage origination revenue reflects origination fees on purchase or refinance mortgages and the corresponding sale, or expected future sale, of a loan. When an IRLC is made to a customer, we record the expected gain on sale of the mortgage, plus the estimated earnings from the expected sale of the associated servicing rights, adjusted for a pull-through percentage (which is defined as the likelihood that an IRLC will be originated), as revenue. Revenue from loan origination fees is recognized at the time the related purchase or refinance transactions are completed, usually upon the close of escrow and when we fund the purchase or refinance mortgage loans. Once funded, mortgage loans held for sale are recorded at fair value based on either sale commitments or current market quotes and are adjusted for subsequent changes in fair value until the loan is sold. Origination costs associated with originating mortgage loans are recognized as incurred. We generally sell the mortgages we originate and the related servicing rights to third-party purchasers.
Mortgage loans are sold with limited recourse provisions, which can result in repurchases of loans previously sold to investors or payments to reimburse investors for loan losses. Based on historical experience, discussions with our mortgage purchasers, analysis of the volume of mortgages we originated and current housing and credit market conditions, we estimate and record a loss reserve for mortgage loans held for sale, as well as known and projected mortgage loan repurchase requests. These have historically not been significant to our financial statements.
Zillow Group operates Custom Quote and Connect through its wholly owned subsidiary, Zillow Group Marketplace, Inc., a licensed mortgage broker. For our Connect and Custom Quote cost per lead marketing products, participating qualified mortgage professionals typically make a prepayment to gain access to consumers interested in connecting with mortgage professionals. Mortgage professionals who exhaust their initial prepayment prepay additional funds to continue to participate in the marketplace. For our cost per lead mortgages products, we recognize revenue when a user contacts a mortgage professional through our mortgages platform, which corresponds directly to the value of our performance.
Other. Other revenue primarily includes revenue generated from display products, which consist of graphical mobile and web advertising sold on a cost per thousand impressions or cost per click basis to advertisers promoting their brands on our mobile applications and websites. We recognize revenue as clicks occur or as impressions are delivered to users interacting with our mobile applications or websites, which is the amount for which we have the right to invoice.
There were no customers that generated 10% or more of our total revenue in the years ended December 31, 2024, 2023 or 2022.
Cost of Revenue. Cost of revenue consists of expenses related to operating our mobile applications and websites, including associated headcount-related expenses, such as salaries, benefits, bonuses and share-based compensation expense, as well as revenue-sharing costs related to our commercial business relationships, depreciation expense, and costs associated with hosting our mobile applications and websites. Cost of revenue also includes amortization costs related to capitalized website and development activities, amortization of software, amortization of certain intangible assets and other costs to obtain data used to populate our mobile applications and websites, and amortization of certain intangible assets recorded in connection with acquisitions, including developed technology. Cost of revenue also includes credit card fees and ad serving costs paid to third
parties, direct costs to provide our rental applications product, and direct costs to originate loans, including underwriting and processing costs.
Sales and Marketing. Sales and marketing expenses consist of advertising costs and other sales expenses related to promotional and marketing activities, headcount-related expenses, including salaries, commissions, benefits, bonuses and share-based compensation expense for sales, sales support, customer support, including the customer connections team and mortgage loan officers and specialists, marketing and public relations employees, depreciation expense and amortization of certain intangible assets recorded in connection with acquisitions, including trade names and trademarks and customer relationships.
Advertising costs are expensed as incurred. For the years ended December 31, 2024, 2023 and 2022, expenses attributable to advertising totaled $175 million, $137 million and $144 million, respectively.
Technology and Development. Technology and development expenses consist of headcount-related expenses, including salaries, benefits, bonuses and share-based compensation expense for individuals engaged in the design, development and testing of our products, mobile applications and websites and the tools and applications that support our products. Technology and development expenses also include equipment and software maintenance costs and depreciation expense.
Research and development costs are expensed as incurred and are recorded in technology and development expenses. For the years ended December 31, 2024, 2023 and 2022, expenses attributable to research and development totaled $543 million, $545 million and $495 million, respectively.
Share-Based Compensation. We measure compensation expense for all share-based awards at fair value on the date of grant and recognize compensation expense over the service period on a straight-line basis for awards expected to vest.
We use the Black-Scholes-Merton option-pricing model to determine the fair value for option awards. In valuing our option awards, we make assumptions about risk-free interest rates, dividend yields, volatility and weighted-average expected lives. We account for forfeitures as they occur. Risk-free interest rates are derived from U.S. Treasury securities as of the option award grant date. Expected dividend yield is based on our historical cash dividend payments, which have been zero to date. The expected volatility for our Class C capital stock is estimated using our historical volatility. The weighted-average expected life of the option awards is estimated based on our historical exercise data.
When determining the grant date fair value of share-based awards, management considers whether an adjustment is required to the observable market price or volatility of the Company’s Class C capital stock used in the valuation as a result of material non-public information.
For issuances of restricted stock units, we determine the fair value of the award based on the market value of our Class C capital stock, as applicable, at the date of grant.
Impairment and Restructuring Costs. From time to time, we record impairment costs within impairment and restructuring costs in our consolidated statements of operations. See Note 9 for additional information on the impairment costs recorded during the year ended December 31, 2024.
The main components of our restructuring costs recorded within impairment and restructuring costs in our consolidated statements of operations relate to employee termination costs, contract termination costs, and charges attributable to the wind down of Zillow Offers operations and additional cost actions to streamline our operations and prioritize investments. One-time employee termination benefits are recognized when the plan of termination has been communicated to employees and certain other criteria are met. Other severance and employee costs, primarily pertaining to ongoing employee benefit arrangements, are recognized when it is probable that the employees are entitled to the severance benefits and the amounts can be reasonably estimated. Contract termination costs are recognized when a contract is terminated in accordance with its terms or at the cease-use date. Asset write-offs are recognized upon their cease-use date. The cumulative effect of a change resulting from a revision to either the timing or the amount of estimated cash flows for restructuring is recognized as an adjustment to the liability in the period of the change.
Income Taxes
We use the asset and liability approach for accounting and reporting income taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax bases of assets and liabilities at the applicable enacted tax rates. A valuation allowance against deferred tax assets would be established if, based on the weight of available evidence, it is more likely than not (a likelihood of more than 50%) that some or all of the deferred tax assets are not expected to be realized.
We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. We adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation or the change of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. Interest and penalties related to unrecognized tax benefits are recorded as income tax expense.
Recently Adopted Accounting Standards
In November 2023, the FASB issued guidance to improve existing disclosure requirements for segment reporting, primarily through enhanced disclosures about significant segment expenses and new disclosure requirements applicable to entities with a single reportable segment. We adopted this guidance on a retrospective basis for the annual period ended December 31, 2024. Refer to Note 19 for additional information related to our segment information disclosures.
Recently Issued Accounting Standards Not Yet Adopted
In December 2023, the FASB issued guidance to enhance the income tax rate reconciliation disclosure requirements and to provide clarity on disclosure requirements for income taxes. This guidance is effective for annual periods beginning after December 15, 2024, and can be applied on a prospective or retrospective basis, with early adoption permitted. We expect to adopt this guidance for the annual period ending December 31, 2025. While we anticipate this guidance will result in additional disclosures related to income taxes, we do not expect this new guidance to have a material impact on our consolidated financial statements.
In November 2024, the FASB issued guidance that will require disclosure of specified information about certain costs and expenses included within an entity’s consolidated financial statements. This guidance is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, and can be applied on a prospective or retrospective basis, with early adoption permitted. We have not yet determined the impact the adoption of this guidance will have on our consolidated financial statements.
v3.25.0.1
Discontinued Operations
12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
Zillow Offers Wind Down
In November 2021, the Board made the determination to wind down Zillow Offers operations. This decision was made in light of home pricing unpredictability, capacity constraints and other operational challenges faced by Zillow Offers that were exacerbated by an unprecedented housing market, a global pandemic and a difficult labor and supply chain environment, all of which led us to conclude that, despite its initial promise in earlier quarters, Zillow Offers was unlikely to be a sufficiently stable line of business to meet our goals going forward.
The wind down of Zillow Offers was completed in the third quarter of 2022, at which time Zillow Offers met the criteria for discontinued operations. Accordingly, we have presented the results of operations, excluding allocation of any general corporate expenses, of Zillow Offers as discontinued operations in our consolidated statements of operations for the year ended December 31, 2022.
The following table presents the major classes of line items of the discontinued operations included in the consolidated statements of operations for the year ended December 31, 2022 (in millions):
Revenue$4,249 
Cost of revenue4,023 
Gross profit
226 
Operating expenses:
Sales and marketing153 
Technology and development
General and administrative10 
Impairment and restructuring costs25 
Total operating expenses194 
Income from discontinued operations
32 
Loss on extinguishment of debt(21)
Other income, net13 
Interest expense(36)
Loss from discontinued operations before income taxes
(12)
Income tax expense
(1)
Net loss from discontinued operations
$(13)
Net loss from discontinued operations per share - basic and diluted
$(0.05)
The following table presents significant non-cash items and capital expenditures of the discontinued operations for the year ended December 31, 2022 (in millions):
Amortization of debt discount and debt issuance costs$21 
Loss on debt extinguishment21 
Share-based compensation16 
Inventory valuation adjustment
Depreciation and amortization
Capital expenditures
Settlement of beneficial interests in securitizations
(79)

Restructuring
Restructuring costs totaled $24 million for the year ended December 31, 2022 and were primarily related to the Zillow Offers wind down. Cumulative restructuring charges attributable to continuing operations as of December 31, 2022 totaled $33 million.
v3.25.0.1
Financial Instruments
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
We apply fair value measurements on a recurring and, as otherwise required, on a nonrecurring basis. Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1 — Quoted prices in active markets for identical assets or liabilities.
Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities.
Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require.
We apply the following methods and assumptions in estimating our fair value measurements:
Cash equivalents — The fair value measurement of money market funds is based on quoted market prices in active markets (Level 1). The fair value measurement of other cash equivalents is based on observable market-based inputs principally derived from or corroborated by observable market data (Level 2).
Short-term investments — The fair value measurement of our short-term investments is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means (Level 2).
Restricted cash — The carrying value of restricted cash approximates fair value due to the short period of time that amounts are held in escrow (Level 1).
Mortgage loans held for sale — The fair value of mortgage loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics (Level 2).
Forward contracts — The fair value of mandatory loan sales commitments and derivative instruments such as forward sales of MBSs that are utilized as economic hedging instruments is calculated by reference to quoted prices for similar assets (Level 2).
Contingent consideration — In December 2023, Zillow Group acquired Follow Up Boss for $399 million in cash, net of cash acquired, and contingent consideration of up to $100 million, payable over a three-year period upon achievement of certain performance metrics. The fair value of the contingent consideration is estimated using a Monte Carlo simulation which considers the probabilities of the achievement of certain performance metrics (Level 3).
The discount rates used in our valuation of contingent consideration are based on our estimated cost of debt and are directly related to the fair value of contingent consideration. An increase in the discount rate, in isolation, would result in a decrease in the fair value measurement. Conversely, a decrease in the discount rate, in isolation, would result in an increase in the fair value measurement. The probabilities of achieving the relevant performance metrics used in our valuation of contingent consideration are directly related to the fair value of contingent consideration, as an increase in the probability, in isolation, would result in an increase in the fair value measurement. Conversely, a decrease in the probability, in isolation, would result in a decrease in the fair value measurement.
During the year ended December 31, 2024, there were no material changes in the unobservable inputs used in determining the fair value of contingent consideration. See Note 6 for additional details on our contingent consideration.
The following table presents the range and weighted average unobservable inputs used in determining the fair value of contingent consideration as of December 31, 2024:
Discount Rate
Probability of Achieving Performance Metrics
Range
5.70% - 5.87%
92% - 100%
Weighted average
5.81%96%
IRLCs — The fair value of IRLCs is calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics. Expired commitments are excluded from the fair value measurement. Since not all IRLCs will become closed loans, we adjust our fair value measurements for the estimated amount of IRLCs that will not close. This adjustment is effected through the pull-through rate, which represents the probability that an IRLC will ultimately result in a closed loan. For IRLCs that are cancelled or expire, any recorded gain or loss is reversed at the end of the commitment period (Level 3).
The pull-through rate is based on estimated changes in market conditions, loan stage and historical borrower behavior. Pull-through rates are directly related to the fair value of IRLCs as an increase in the pull-through rate, in isolation, would result in an increase in the fair value measurement. Conversely, a decrease in the pull-through rate, in isolation, would result in a decrease in the fair value measurement. Changes in the fair value of IRLCs are included within revenue in our consolidated
statements of operations. The following table presents the range and weighted-average pull-through rates used in determining the fair value of IRLCs as of the dates presented:
December 31, 2024December 31, 2023
Range
47% - 100%
45% - 100%
Weighted average82%85%
We manage our interest rate risk related to IRLCs and mortgage loans held for sale through the use of derivative instruments, generally forward contracts on MBSs, which are commitments to either purchase or sell a financial instrument at a future date for a specified price, and mandatory loan commitments, which are an obligation by an investor to buy loans at a specified price within a specified time period. We do not enter into or hold derivatives for trading or speculative purposes, and our derivatives are not designated as hedging instruments. Changes in the fair value of our derivative financial instruments are recognized in revenue in our consolidated statements of operations.
The following table presents the notional amounts of the economic hedging instruments related to our mortgage loans held for sale as of the dates presented (in millions):
December 31,
20242023
IRLCs
$217 $167 
Forward contracts(1)
$300 $218 
(1) Represents net notional amounts. We do not have the right to offset our forward contract derivative positions.
The following table presents the amortized cost, as applicable, and estimated fair market value of assets and liabilities measured at fair value on a recurring basis by category as of the dates presented (in millions):
 December 31, 2024December 31, 2023
 Amortized
Cost
Estimated
Fair Market
Value
Amortized
Cost
Estimated
Fair Market
Value
Assets
Cash$13 $13 $50 $50 
Cash equivalents:
Money market funds993 993 1,440 1,440 
U.S. government treasury securities75 75 
Commercial paper— — 
Short-term investments:
U.S. government treasury securities(1)
594 591 1,149 1,143 
Corporate bonds
175 176 160 161 
U.S. government agency securities14 14 
Commercial paper— — 
Mortgage origination-related:
Mortgage loans held for sale— 159 — 100 
IRLCs - other current assets— — 
Forward contracts - other current assets— — — 
Restricted cash
Total assets measured at fair value on a recurring basis
$1,863 $2,025 $2,818 $2,916 
Liabilities
Mortgage origination-related:
Forward contracts - accrued expenses and other current liabilities$— $— $— $
Contingent consideration:
Contingent consideration - accrued expenses and other current liabilities— 33 — 30 
Contingent consideration - other long-term liabilities— 58 — 51 
Total liabilities measured at fair value on a recurring basis
$— $91 $— $82 
(1) The estimated fair market value includes $3 million and $6 million of gross unrealized losses as of December 31, 2024 and December 31, 2023, respectively.
The following table presents available-for-sale investments by contractual maturity date as of December 31, 2024 (in millions):
Amortized CostEstimated Fair
Market Value
Due in one year or less$336 $336 
Due after one year 442 440 
Total $778 $776 
See Note 10 for the carrying amounts and estimated fair values of our Notes.
v3.25.0.1
Property and Equipment, Net
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
The following table presents the detail of property and equipment as of the dates presented (in millions):
December 31,
20242023
Website development costs$564 $452 
Leasehold improvements45 48 
Computer equipment18 19 
Office equipment, furniture and fixtures16 20 
Property and equipment643 539 
Less: accumulated amortization and depreciation(283)(211)
Property and equipment, net$360 $328 

We recorded depreciation expense related to property and equipment (other than website development costs) of $15 million, $24 million and $25 million for the years ended December 31, 2024, 2023 and 2022, respectively.
We capitalized website development costs of $196 million, $191 million and $143 million for the years ended December 31, 2024, 2023 and 2022, respectively. Amortization expense for website development costs included in cost of revenue was $148 million, $110 million and $67 million for the years ended December 31, 2024, 2023 and 2022, respectively.
v3.25.0.1
Acquisitions
12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
Acquisition of Follow Up Boss
On December 8, 2023, Zillow Group acquired Follow Up Boss, a customer relationship management system for real estate professionals, for $399 million in cash, net of cash acquired, and contingent consideration of up to $100 million in cash, payable over a three-year period upon achievement of certain performance metrics. See Note 4 for additional information regarding the fair value of contingent consideration. The acquisition is consistent with our strategy to invest in a more integrated software experience for our customers. The acquisition of Follow Up Boss has been accounted for as a business combination, and assets acquired and liabilities assumed were generally recorded at their estimated fair values, in accordance with the applicable accounting guidance. Goodwill represents the expected synergies from combining the acquired assets and the operations of the acquirer as well as intangible assets that do not qualify for separate recognition. Goodwill recorded in connection with the acquisition is deductible for tax purposes.
The total purchase price has been allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their estimated fair values at the acquisition date, as follows (in millions):
Purchase price:
Cash
$403 
Contingent consideration
81 
Total purchase price
$484 
Identifiable assets acquired and liabilities assumed:
Cash and cash equivalents$
Goodwill
402 
Intangible assets
86 
Deferred revenue
(7)
Other liabilities
(1)
Total purchase price
$484 
The estimated fair value of the identifiable intangible assets acquired and associated useful lives consisted of the following (in millions):
Estimated Fair Value
Estimated Weighted-Average Useful Life (in years)
Developed technology
$50 4
Customer relationships
34 7
Trade names and trademarks
7
Total$86 
Estimated fair values of the identifiable intangible assets acquired were determined by management, based in part on a valuation performed by an independent third-party valuation specialist. We used an income approach to measure the fair value of the customer relationships intangible asset acquired based on the excess earnings method, whereby the fair value is estimated based upon the present value of cash flows that the applicable asset is expected to generate. We used an income approach to measure the fair value of the developed technology and trade names and trademarks based on the relief-from-royalty method. These fair value measurements were based on Level 3 inputs under the fair value hierarchy.
Acquisitions of Aryeo and Spruce
On July 31, 2023, Zillow Group acquired Aryeo, a software company that serves real estate photographers, in exchange for approximately $15 million in cash, net of cash acquired, and 380,259 shares of our Class C capital stock with a value of $20 million, for total consideration of $35 million, net of cash acquired. On September 11, 2023, Zillow Group acquired substantially all of the assets and liabilities of Spruce, a tech-enabled title and escrow platform, in exchange for approximately $19 million in cash, net of cash acquired.
The acquisitions of Aryeo and Spruce have been accounted for as business combinations, and assets acquired and liabilities assumed were recorded at their estimated fair values. Goodwill represents the expected synergies from combining the acquired assets and the operations of the acquirer as well as intangible assets that do not qualify for separate recognition. Goodwill recorded in connection with the acquisition of Aryeo is not deductible for tax purposes, and goodwill recorded in connection with the acquisition of Spruce is deductible for tax purposes.
The total purchase prices have been allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their respective fair values at the acquisition date, as follows (in millions):
Aryeo
Spruce
Cash and cash equivalents$$
Goodwill
26 16 
Intangible assets
11 
Other assets
— 
Liabilities
(2)(1)
Total purchase price
$38 $24 
The estimated fair value of the identifiable intangible assets acquired and associated useful lives consisted of the following (in millions):
Aryeo
Spruce
Estimated Fair Value
Estimated Useful Life (in years)
Estimated Fair Value
Estimated Useful Life (in years)
Customer relationships$5$— 
Purchased content
3— 
Developed technology
33
Total$11 $
We used an income approach to measure the fair value of the customer relationships intangible asset acquired from Aryeo based on the excess earnings method, whereby the fair value is estimated based upon the present value of cash flows that the applicable asset is expected to generate. We used a cost approach to measure the fair value of purchased content acquired from Aryeo. We used an income approach to measure the fair value of the developed technology acquired from Aryeo and Spruce based on the relief-from-royalty method. These fair value measurements were based on Level 3 inputs under the fair value hierarchy.
Acquisition-related costs incurred, which primarily included legal, accounting and other external costs directly related to the acquisitions, are included within acquisition-related costs in our consolidated statements of operations and were expensed as incurred. Aggregate acquisition-related costs for the acquisitions of Follow Up Boss, Aryeo, and Spruce were not material to our financial statements.
Unaudited pro forma revenue and earnings information related to the acquisitions has not been presented as the aggregate effects of the acquisitions of Follow Up Boss, Aryeo and Spruce were not material to our consolidated financial statements.
v3.25.0.1
Intangible Assets, Net
12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, Net Intangible Assets, Net
The following tables present the detail of intangible assets as of the dates presented (in millions):
 December 31, 2024
 CostAccumulated
Amortization
Net
Customer relationships$94 $(29)$65 
Software
101 (39)62 
Developed technology
102 (51)51 
Trade names and trademarks47 (25)22 
Purchased content
22 (15)
Total$366 $(159)$207 

 December 31, 2023
 CostAccumulated
Amortization
Net
Customer relationships$98 $(19)$79 
Developed technology104 (30)74 
Software84 (29)55 
Trade names and trademarks47 (20)27 
Purchased content17 (11)
Total$350 $(109)$241 

Amortization expense recorded for intangible assets for the years ended December 31, 2024, 2023 and 2022 was $77 million, $53 million and $58 million, respectively.
Estimated future amortization expense for intangible assets, including amortization related to future commitments (see Note 15), as of December 31, 2024 is as follows (in millions):
2025$71 
202654 
202743 
202820 
2029
14 
Thereafter14 
Total future amortization expense$216 
We did not record any material impairment costs related to our intangible assets for the years ended December 31, 2024, 2023 or 2022.
v3.25.0.1
Accrued Expenses and Other Current Liabilities
12 Months Ended
Dec. 31, 2024
Payables and Accruals [Abstract]  
Accrued Expenses and Other Current Liabilities Accrued Expenses and Other Current Liabilities
The following table presents the detail of accrued expenses and other current liabilities as of the dates presented (in millions):
December 31,
20242023
Contingent consideration for acquisition, current portion
$33 $30 
Other accrued expenses and other current liabilities72 77 
Total accrued expenses and other current liabilities$105 $107 
v3.25.0.1
Leases
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
The components of our operating lease expense were as follows for the periods presented (in millions):
Year Ended December 31,
202420232022
Operating lease cost$22 $35 $36 
Variable lease cost13 18 18 
     Total lease cost$35 $53 $54 

We have subleases related to certain of our operating leases. For the years ended December 31, 2024, 2023 and 2022, we recognized $6 million, $10 million and $10 million, respectively, of sublease income. For the years ended December 31, 2024 and 2023, we recognized impairment costs of $6 million and $16 million, respectively, within impairments and restructuring costs in our consolidated statements of operations associated with changes in the use of certain office spaces, primarily related to subleases where anticipated sublease income was less than the carrying value of the related asset group.
Total lease costs associated with short-term leases were not material for the years ended December 31, 2024, 2023 and 2022. Other information related to operating leases was as follows for the periods presented (in millions, except for years and percentages):
Year Ended December 31,
2024
2023(1)
2022
Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives of $—, $— and $9 for the years ended December 31, 2024, 2023 and 2022, respectively
$46 $42 $34 
Right of use assets obtained in exchange for new operating lease obligations$$(8)$19 
Weighted average remaining lease term for operating leases6 years6 years7 years
Weighted average discount rate for operating leases9.5 %9.4 %8.2 %
(1) During the year ended December 31, 2023, we amended our existing office space lease for our corporate headquarters in Seattle, Washington, to provide the landlord the option to terminate a portion of our lease prior to the original lease termination date. In December 2023, the landlord exercised the early termination option for the relevant floors effective June 30, 2024. This modification to the lease term resulted in an immediate reduction in the right of use asset and lease liability of $8 million. We ceased use of the terminated space as of December 31, 2023, and as a result, we accelerated recognition of $14 million of amortization for the related right of use asset during the year ended December 31, 2023.
The following table presents the scheduled maturities of our operating lease liabilities by year as of December 31, 2024 (in millions):
2025$22 
202622 
202721 
2028
19 
2029
18 
Thereafter29 
     Total lease payments131 
Less: Imputed interest(34)
     Present value of lease liabilities$97 
Operating lease liabilities included in the table above do not include sublease income. As of December 31, 2024, we expect to receive sublease income totaling approximately $26 million from 2025 through 2030.
v3.25.0.1
Debt
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Debt Debt
The following table presents the carrying values of Zillow Group’s debt as of the dates presented (in millions):
December 31,
20242023
   Master repurchase agreements:
UBS AG(1)
$73 $45 
JPMorgan Chase Bank, N.A.(2)
72 40 
Atlas Securitized Products, L.P.(3)
— 
Total borrowings under credit facilities
145 93 
Convertible senior notes
2026 Notes(4)
— 496 
2025 Notes
418 504 
2024 Notes(5)
— 607 
Total convertible senior notes418 1,607 
Total debt$563 $1,700 
(1) Agreement was amended and renewed on September 6, 2024, increasing the total maximum borrowing capacity from $100 million to $150 million.
(2) Agreement was amended and renewed on May 2, 2024, increasing the total maximum borrowing capacity from $100 million to $150 million.
(3) Agreement expired on March 11, 2024 and was not renewed.
(4) The 2026 Notes were settled on December 18, 2024 and are no longer outstanding.
(5) The 2024 Notes matured on September 1, 2024 and are no longer outstanding.
Credit Facilities
We utilize master repurchase agreements to provide capital for Zillow Home Loans. The master repurchase agreements provide short-term financing between the issuance of a mortgage loan and when Zillow Home Loans sells the loan to an investor or directly to an agency. The carrying amounts of our master repurchase agreements approximate their fair values because of their short-term nature. The following table summarizes certain details related to our master repurchase agreements as of December 31, 2024 (in millions, except interest rates):
LenderMaturity DateMaximum Borrowing Capacity
Borrowings Outstanding
Available
Borrowing Capacity
Weighted Average Interest Rate
UBS AGSeptember 5, 2025$150 $73 $77 6.07 %
JPMorgan Chase Bank, N.AMay 1, 2025150 72 78 6.14 %
Total$300 $145 $155 
The following table summarizes certain details related to our master repurchase agreements as of December 31, 2023 (in millions, except interest rates):
LenderMaturity DateMaximum Borrowing Capacity
Borrowings Outstanding
Available
Borrowing Capacity
Weighted Average Interest Rate
UBS AG
October 9, 2024$100 $45 $55 7.08 %
JPMorgan Chase Bank, N.A.
May 30, 2024100 40 60 7.05 %
Atlas Securitized Products, L.P.
March 11, 202450 42 7.37 %
Total$250 $93 $157 
In accordance with the master repurchase agreements, the Lenders have agreed to pay Zillow Home Loans a negotiated purchase price for eligible loans, and Zillow Home Loans has simultaneously agreed to repurchase such loans from the Lenders under a specified timeframe at an agreed upon price that includes interest. The master repurchase agreements contain margin
call provisions that provide the Lenders with certain rights in the event of a decline in the market value of the assets purchased under the master repurchase agreements. As of December 31, 2024 and 2023, $151 million and $99 million, respectively, in mortgage loans held for sale were pledged as collateral under the master repurchase agreements.
Borrowings on the master repurchase agreements bear interest at a floating rate based on SOFR plus an applicable margin, as defined by the governing agreements. The master repurchase agreements include customary representations and warranties, covenants and provisions regarding events of default. As of December 31, 2024, Zillow Home Loans was in compliance with all financial covenants and no event of default had occurred. The master repurchase agreements are recourse to Zillow Home Loans, and have no recourse to Zillow Group or any of its other subsidiaries.
Convertible Senior Notes
Effective January 1, 2022, we adopted new guidance which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Upon adoption of the new accounting guidance, we recorded a decrease to additional paid-in capital, an increase to long-term debt and a cumulative-effect adjustment to accumulated deficit of $156 million.
The following tables summarize certain details related to our Notes as of the dates presented or for the periods ended (in millions, except interest rates):
December 31, 2024December 31, 2023
Maturity DateAggregate Principal AmountStated Interest RateEffective Interest RateFirst Interest Payment DateSemi-Annual Interest Payment DatesUnamortized Debt Issuance CostsFair ValueUnamortized Debt Issuance CostsFair Value
September 1, 2026$— 1.375 %1.57 %March 1, 2020March 1; September 1$— $— $$681 
May 15, 2025419 2.75 %3.20 %November 15, 2020May 15; November 15486 560 
September 1, 2024— 0.75 %1.02 %March 1, 2020March 1; September 1— — 825 
Total$419 $$486 $$2,066 
Year Ended December 31, 2024Year Ended December 31, 2023Year Ended December 31, 2022
Contractual Coupon InterestAmortization of Debt Issuance CostsInterest ExpenseContractual Coupon InterestAmortization of Debt Issuance CostsInterest ExpenseContractual Coupon InterestAmortization of Debt Issuance CostsInterest Expense
2026 Notes$$$$$$$$— $
2025 Notes12 14 16 18 16 19 
2024 Notes
Total$22 $$26 $28 $$33 $27 $$32 
The 2025 Notes are senior unsecured obligations and are classified as current liabilities in our consolidated balance sheet based on their contractual maturity date. Interest on the 2025 Notes is paid semi-annually. The estimated fair value of the 2025 Notes is classified as Level 2 and was determined through consideration of quoted market prices in markets that are not active.
The 2025 Notes are convertible into cash, shares of Class C capital stock or a combination thereof, at our election, and may be settled as described below. They will mature on May 15, 2025, unless earlier repurchased, redeemed or converted in accordance with their terms. The following table summarizes the conversion and redemption options with respect to the 2025 Notes:
Maturity DateEarly Conversion DateConversion RateConversion PriceOptional Redemption Date
May 15, 2025November 15, 202414.8810$67.20 May 22, 2023
There were no conversions or repurchases of the Notes during the year ended December 31, 2022. See below for conversion and repurchase activity associated with the Notes during the years ended December 31, 2024 and 2023.
Settlement of 2024 Notes. The 2024 Notes matured on September 1, 2024. During the period from March 1, 2024 through the close of business on August 29, 2024, holders of the 2024 Notes elected to convert all outstanding 2024 Notes in accordance with the terms of the indenture. We settled these conversions with aggregate cash payments totaling $610 million, which included $608 million in principal repayments, $2 million for accrued interest and a nominal cash payment in lieu of fractional shares, and the issuance of 1.9 million shares of Class C capital stock.
In September 2024, we received 2.1 million shares of Class C capital stock from the settlement of the capped call transactions we entered into in connection with the issuance of the 2024 Notes. Under applicable Washington State law, the acquisition of a corporation’s own shares is not disclosed separately as treasury stock in the financial statements and such shares are treated as authorized but unissued shares. We record acquisitions of our shares of capital stock as a reduction to capital stock at the par value of the shares reacquired, then to additional paid-in capital until it is depleted to a nominal amount, with any further excess recorded to retained earnings. We recorded an offsetting increase to additional paid-in capital for the unwind of the capped call transactions.
2025 Notes. During the year ended December 31, 2024 and in accordance with our Repurchase Authorizations, we repurchased $88 million aggregate principal amount of the 2025 Notes through open market transactions for $89 million in cash, including accrued interest, resulting in a loss on extinguishment of debt of $1 million recognized in our consolidated statements of operations. During the year ended December 31, 2023 and in accordance with our Repurchase Authorizations, we repurchased $58 million aggregate principal amount of the 2025 Notes through open market transactions for $57 million in cash, including accrued interest, resulting in a gain on extinguishment of debt of $1 million recognized in our consolidated statements of operations. For additional information on the Repurchase Authorizations, see Note 12 under the subsection titled “Share Repurchase Authorizations.” On or after November 15, 2024, until the close of business on the second scheduled trading day immediately preceding the maturity date for the 2025 Notes, holders may convert the 2025 Notes at their option at the applicable Conversion Rate then in effect. Any conversions of the 2025 Notes will be settled on the maturity date.
Settlement of 2026 Notes. On October 8, 2024, we submitted notice to the trustee to exercise our right to redeem the remaining $499 million in aggregate principal amount of the 2026 Notes on December 18, 2024 (the “Redemption Date”). Holders of the 2026 Notes elected to convert $498 million of aggregate principal amount prior to the Redemption Date. We settled these conversions with aggregate cash payments totaling $498 million covering principal and cash in lieu of fractional shares, and the issuance of 4.5 million shares of Class C capital stock. In addition, on the Redemption Date, the Company redeemed the remaining $1 million in aggregate principal amount of 2026 Notes that had not been surrendered for conversion at a redemption price in cash equal to 100% of the principal amount of 2026 Notes not converted, plus accrued and unpaid interest on such 2026 Notes from September 1, 2024 to, but excluding, the Redemption Date.
In connection with the issuance of the 2026 Notes in September 2019, the Company entered into separate, privately negotiated capped call transactions. The following table summarizes certain details related to our outstanding capped call transactions as of December 31, 2024:
Maturity DateInitial Cap PriceCap Price Premium
September 1, 2026$80.5750 150 %
In connection with settling our 2026 Notes in December 2024, we elected to keep the associated capped call transactions outstanding. These capped call transactions will entitle us to shares of our Class C capital stock and/or cash upon their exercise in accordance with their terms, subject to earlier termination in certain circumstances. These capped call transactions have an Initial Cap Price per share, which represents a premium (“Cap Price Premium”) over the relevant historical closing price of our Class C capital stock on the Nasdaq Global Select Market, and is subject to certain adjustments under the terms of these capped call transactions. The capped call transactions do not meet the criteria for separate accounting as a derivative as they are indexed to our own stock. The capped call premiums paid have been included as a net reduction to additional paid-in capital within shareholders’ equity.
v3.25.0.1
Income Taxes
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We are subject to income taxes in the United States (federal and state) and certain foreign jurisdictions. We recorded income tax expense of $5 million, $4 million, and $3 million for the years ended December 31, 2024, December 31, 2023, and December 31, 2022 respectively, primarily due to state taxes.
The following table presents the components of our income tax expense for the periods presented (in millions):
 Year Ended December 31,
 202420232022
Current income tax expense:
State$$$
Foreign— 
Total current income tax expense
Deferred income tax expense:
Federal— — 
Total deferred income tax expense
— — 
Total income tax expense
$$$
The following table presents a reconciliation of the federal statutory rate and our effective tax rate for the periods presented:
 Year Ended December 31,
 202420232022
Tax expense at federal statutory rate(21.0)%(21.0)%(21.0)%
State income taxes, net of federal tax benefit(11.1)2.6 6.2 
Meals and entertainment
1.6 0.1 0.7 
Share-based compensation5.3 10.4 13.2 
Non-deductible executive compensation16.9 10.8 14.3 
Research and development credits(36.3)(6.8)(25.7)
Other, net
1.9 (8.3)7.5 
Valuation allowance46.7 15.0 7.4 
Effective tax rate4.0 %2.8 %2.6 %
Deferred federal, state and foreign income taxes reflect the net tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and such amounts for tax purposes. The following table presents the significant components of our deferred tax assets and liabilities as of the dates presented (in millions):
 December 31,
 20242023
Deferred tax assets:
Federal and state net operating loss carryforwards$345 $354 
Capitalized research and development
247 208 
Research and development credits206 166 
Share-based compensation110 124 
Lease liabilities
24 33 
Debt discount on convertible notes— 11 
Accruals and reserves
Other deferred tax assets
Total deferred tax assets943 904 
Deferred tax liabilities:
Right of use assets(14)(18)
Intangible assets(5)(13)
Goodwill(13)(6)
Other deferred tax liabilities
(1)(5)
Total deferred tax liabilities(33)(42)
Net deferred tax assets before valuation allowance910 862 
Less: valuation allowance(914)(865)
Net deferred tax liabilities $(4)$(3)
Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing and amount of which are uncertain. We have provided a full valuation allowance against the net deferred tax assets as of December 31, 2024 and 2023 because, based on the weight of available evidence, it is more likely than not (a likelihood of more than 50%) that some or all of the deferred tax assets will not be realized. The valuation allowance increased by $49 million and $22 million during the years ended December 31, 2024 and 2023, respectively.
We have accumulated federal net operating losses of approximately $1.3 billion and $1.4 billion, as of December 31, 2024 and 2023, respectively, which are available to reduce future taxable income. We have accumulated state net operating losses of approximately $66 million and $56 million (tax effected) as of December 31, 2024 and 2023, respectively. Federal net operating losses generated in taxable periods on or before December 31, 2017 have a twenty-year carryforward period and begin to expire in 2036. Federal net operating loss carryforwards generated in taxable years beginning after December 31, 2017 may be carried forward indefinitely, but the deductibility of such net operating loss carryforwards in taxable years beginning after December 31, 2020 is limited to 80% of taxable income. State net operating loss carryforward periods for the various state jurisdictions generally range from three years to indefinite-lived and began to expire in 2024. Additionally, we have net research and development credit carryforwards of $205 million and $166 million as of December 31, 2024 and 2023, respectively, which are available to reduce future tax liabilities. The research and development credit carryforwards begin to expire in 2025. Under Sections 382 and 383 of the Internal Revenue Code, if a corporation undergoes an “ownership change”, the corporation’s ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes, such as research and development credits, to offset its post-change taxable income or income tax liability may be limited. We have completed a detailed study and concluded there were multiple ownership changes, triggering the application of Section 382 of the Internal Revenue Code. Based on our most recent analysis, we do not currently anticipate any material reduction in our ability to utilize our net operating loss and tax credit carryforwards under these rules.
Our primary income tax jurisdiction is the United States (federal). With limited exceptions for state taxing authorities, which are not material to the financial statements, all tax years for which we have filed a tax return remain subject to examination due to the existence of net operating loss carryforwards.
Changes for unrecognized tax benefits for the periods presented are as follows (in millions):
Balance at January 1, 2022
$75 
Gross increases—current period tax positions17 
Gross increases—prior period tax positions
Gross decreases—prior period tax positions(6)
Balance at December 31, 2022
$90 
Gross increases—current period tax positions
Gross increases—prior period tax positions
Gross decreases—prior period tax positions
(7)
Balance at December 31, 2023
$95 
Gross increases—current period tax positions16 
Gross increases—prior period tax positions
Gross decreases—prior period tax positions(1)
Gross decreases—statute of limitations lapse
(1)
Balance at December 31, 2024
$115 
At December 31, 2024, the total amount of unrecognized tax benefits of $115 million is recorded as a reduction to our deferred tax asset when available. We do not anticipate that the amount of existing unrecognized tax benefits will significantly increase or decrease within the next 12 months. Accrued interest and penalties related to unrecognized tax benefits are recorded as income tax expense and are not material.
v3.25.0.1
Shareholders' Equity
12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Shareholders' Equity Shareholders’ Equity
Preferred Stock
The Board has the authority to fix and determine and to amend the number of shares of any series of preferred stock that is wholly unissued or to be established and to fix and determine and to amend the designation, preferences, voting powers and limitations and the relative, participating, optional or other rights, of any series of shares of preferred stock that is wholly unissued or to be established, subject in each case to certain approval rights of holders of our outstanding Class B common stock. There was no preferred stock issued and outstanding as of December 31, 2024 or December 31, 2023.
Common and Capital Stock
Our Class A common stock has no preferences or privileges and is not redeemable. Holders of Class A common stock are entitled to one vote for each share.
Our Class B common stock has no preferences or privileges and is not redeemable. At any time after the date of issuance, each share of Class B common stock, at the option of the holder, may be converted into one share of Class A common stock, or automatically converted into Class A common stock upon the affirmative vote by or written consent of holders of a majority of the shares of the Class B common stock. During the years ended December 31, 2024, 2023 and 2022, no shares of Class B common stock were converted into Class A common stock at the option of the holders. Holders of Class B common stock are entitled to 10 votes for each share.
Our Class C capital stock has no preferences or privileges, is not redeemable and, except in limited circumstances, is non-voting.
Share Repurchase Authorizations
The Board has authorized the repurchase of up to $2.5 billion of our Class A common stock, Class C capital stock, outstanding Notes or a combination thereof.
Repurchases of stock under the Repurchase Authorizations may be made in open-market transactions or privately negotiated transactions, or in such other manner as deemed appropriate by management, and may be made from time to time as determined by management depending on market conditions, share price, trading volume, cash needs and other business factors, in each case as permitted by securities laws and other legal requirements. As of December 31, 2024, $381 million remained available for future repurchases pursuant to the Repurchase Authorizations.
The following table summarizes our Class A common stock and Class C capital stock repurchase activity under the Repurchase Authorizations for the periods presented (in millions, except share data, which are presented in thousands, and per share amounts):
 Year Ended December 31,
20242023
Class A common stockClass C capital stock
Class A common stock
Class C capital stock
Shares repurchased1,100 5,996 2,212 7,311 
Weighted-average price per share$42.26 $42.45 $46.45 $43.94 
Total purchase price$46 $255 $103 $321 
v3.25.0.1
Share-Based Awards
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Share-Based Awards Share-Based Awards
Zillow Group, Inc. 2020 Incentive Plan
On June 9, 2020, the Zillow Group, Inc. 2020 Incentive Plan (the “2020 Plan”) became effective, which replaces the Zillow Group, Inc. Amended and Restated 2011 Incentive Plan (the “2011 Plan”), which became effective July 19, 2011. Subject to adjustment from time to time as provided in the 2020 Plan, a total of 12 million shares of Class C capital stock are authorized for issuance under the 2020 Plan. In addition, shares previously available for new grants under the 2011 Plan as of June 9, 2020 and shares subject to outstanding awards under the 2011 Plan as of June 9, 2020 that on or after that date cease to be subject to such awards (other than by reason of exercise or settlement of the awards in vested or nonforfeitable shares) are also available for issuance under the 2020 Plan. The number of shares authorized under the 2020 Plan will be increased on the first day of each calendar year, beginning January 1, 2021 and ending on and including January 1, 2030, by an amount equal to the lesser of (a) 5% of our outstanding Class A common stock, Class B common stock and Class C capital stock on a fully diluted basis as of the end of the immediately preceding calendar year and (b) a number of shares determined by our Board. Shares issued under the 2020 plan may be issued from authorized and unissued shares of Class C capital stock. The 2020 Plan is administered by the Compensation Committee of the Board (the “Compensation Committee”). Under the terms of the 2020 Plan, the Compensation Committee may grant equity awards, including incentive or nonqualified stock options, restricted stock, restricted stock units, restricted units, stock appreciation rights, performance shares or performance units to employees, directors and consultants of Zillow Group and its subsidiaries. The Board has also authorized certain senior executive officers to grant equity awards under the 2020 Plan, within limits prescribed by our Board.
Options under the 2020 Plan are granted with an exercise price per share not less than 100% of the fair market value of our Class C capital stock on the grant date, with the exception of substituted option awards granted in connection with acquisitions, and are exercisable at such times and under such conditions as determined by the Compensation Committee. Any portion of an option that is not vested and exercisable on the date of a participant’s termination of service expires on such date. Employees generally forfeit their rights to exercise vested options three months following their termination of employment or 12 months following termination by reason of death, disability or retirement. Options granted under the 2020 Plan expire no later than ten years from the grant date and typically vest over a period of four years.
Restricted stock units granted under the 2020 Plan typically vest over a period of four years. Generally, any portion of a restricted stock unit that is not vested on the date of a participant’s termination of service expires on such date.
In addition to the option awards and restricted stock units typically granted under the 2020 Plan which vest quarterly over four years, during the first quarter of 2023, the Compensation Committee approved option and restricted stock unit awards granted under the 2020 Plan in connection with the 2022 annual review cycle that vest quarterly over three years. The exercisability terms of these equity awards are otherwise consistent with the terms of the option awards and restricted stock units typically granted under the 2020 Plan.
Zillow Group, Inc. Amended and Restated 2011 Incentive Plan
Options and restricted stock units that remain outstanding under the 2011 Plan have vesting and exercisability terms consistent with those described above for awards granted under the 2020 Plan.
Zillow Group, Inc. 2019 Equity Inducement Plan
On August 8, 2019, the 2019 Equity Inducement Plan (“Inducement Plan”) became effective. Subject to adjustment from time to time as provided in the Inducement Plan, 10 million shares of Class C capital stock are available for issuance under the Inducement Plan. Shares issued under the Inducement Plan shall be drawn from authorized and unissued shares of Class C capital stock. The purpose of the Inducement Plan is to attract, retain and motivate certain new employees of the Company and its subsidiaries by providing them the opportunity to acquire a proprietary interest in the Company and to align their interests and efforts to the long-term interests of the Company’s shareholders. Each award under the Inducement Plan is intended to qualify as an employment inducement award pursuant to Listing Rule 5635(c) of the corporate governance rules of the NASDAQ Stock Market. The Inducement Plan is administered by the Compensation Committee. Under the terms of the Inducement Plan, the Compensation Committee may grant equity awards, including nonqualified stock options, restricted stock or restricted stock units or restricted units to new employees of the Company and its subsidiaries.
Options under the Inducement Plan are granted with an exercise price per share not less than 100% of the fair market value of our Class C capital stock on the date of grant, with the exception of substituted option awards granted in connection with acquisitions, and are exercisable at such times and under such conditions as determined by the Compensation Committee. Any portion of an option that is not vested and exercisable on the date of a participant’s termination of service generally expires on such date. Employees generally forfeit their rights to exercise vested options three months following their termination of employment or 12 months following termination by reason of death, disability or retirement. Options granted under the Inducement Plan expire no later than ten years from the grant date and typically vest over a period of four years.
Restricted stock units granted under the Inducement Plan typically vest over a period of four years. In general, any portion of a restricted stock unit that is not vested on the date of a participant’s termination of service expires on such date.
Option Award Repricing
On August 3, 2022, upon recommendation of the Compensation Committee, the Board approved adjustments to the exercise price of certain outstanding vested and unvested option awards for eligible employees. The exercise price of eligible option awards was reduced to $38.78, which was the closing market price of our Class C capital stock on August 8, 2022. No other changes were made to the terms and conditions of the eligible option awards. We accounted for the reprice of the eligible option awards as an equity modification whereby the incremental fair value attributable to the repriced option awards, as measured on the date of reprice, has been recognized as additional share-based compensation expense. The reprice impacted 7 million stock option awards, affected 3,348 employees and was expected to result in incremental share-based compensation expense of $66 million in total over the remaining requisite service period of the original awards. The weighted-average total fair value of options repriced in August 2022 was $67.58.
Option Awards
The following table summarizes option award activity for the year ended December 31, 2024:
Number
of Shares
Subject to
Existing
Options (in thousands)
Weighted-
Average
Exercise
Price Per
Share
Weighted-
Average
Remaining
Contractual
Life (in years)
Aggregate
Intrinsic
Value
(in millions)
Outstanding at January 1, 202432,524 $44.18 6.9$495 
Granted3,551 56.11 
Exercised(5,474)38.69 
Forfeited or cancelled(660)44.76 
Outstanding at December 31, 202429,941 46.58 6.3861 
Vested and exercisable at December 31, 202421,139 46.01 5.5629 
The following assumptions were used to determine the fair value of option awards granted for the periods presented:
Year Ended December 31,
202420232022
Expected volatility
57% – 61%
55% – 62%
55% – 61%
Risk-free interest rate
3.74% – 4.5%
3.75% – 4.36%
1.94% – 3.95%
Weighted-average expected life
5.5 – 6.8 years
5.3 – 6.5 years
4.5– 6.0 years
Weighted-average fair value of options granted$32.22$24.43$23.25
As of December 31, 2024, there was a total of $217 million in unrecognized compensation cost related to unvested option awards, which is expected to be recognized over a weighted-average period of 2.1 years.
The total intrinsic value of options exercised during the years ended December 31, 2024, 2023 and 2022 was $148 million, $20 million and $13 million, respectively. The fair value of options vested for the years ended December 31, 2024, 2023 and 2022 was $214 million, $215 million and $226 million, respectively.
Restricted Stock Units
The following table summarizes activity for all restricted stock units for the year ended December 31, 2024:
Restricted
Stock Units (in thousands)
Weighted-
Average Grant-
Date Fair
Value
Unvested outstanding at January 1, 202412,038 $45.42 
Granted7,282 56.14 
Vested(6,436)48.10 
Forfeited(1,155)48.48 
Unvested outstanding at December 31, 202411,729 50.31 
The total fair value of restricted stock units that vested during the years ended December 31, 2024, 2023 and 2022 was $310 million, $292 million and $247 million, respectively.
As of December 31, 2024, there was $544 million of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized over a weighted-average period of 2.4 years.
Share-Based Compensation Expense
The following table presents the effects of share-based compensation expense in our consolidated statements of operations during the periods presented (in millions):
Year Ended December 31,
202420232022
Cost of revenue$14 $16 $16 
Sales and marketing77 70 63 
Technology and development165 166 165 
General and administrative192 199 189 
Impairment and restructuring costs— — 
Share-based compensation - continuing operations
448 451 435 
Share-based compensation - discontinued operations
— — 16 
Total share-based compensation$448 $451 $451 
v3.25.0.1
Net Loss Per Share
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Net Loss Per Share Net Loss Per Share
Basic net loss per share and basic net loss from continuing operations per share are computed by dividing net loss or net loss from continuing operations, as applicable, by the weighted-average number of shares (including Class A common stock, Class B common stock and Class C capital stock) outstanding during the period. In the calculation of basic net loss per share
and basic net loss from continuing operations per share, undistributed earnings are allocated assuming all earnings during the period were distributed.
Diluted net loss per share and diluted net loss from continuing operations per share is computed by dividing net loss or net loss from continuing operations, as applicable, by the weighted-average number of shares (including Class A common stock, Class B common stock and Class C capital stock) outstanding during the period, which is calculated based on net loss from continuing operations, and potentially dilutive Class C capital stock equivalents, except in cases where the effect of the Class C capital stock equivalent would be antidilutive. Potentially dilutive Class C capital stock equivalents consist of stock issuable upon exercise of stock options, stock underlying unvested restricted stock units, and stock issuable upon conversion of outstanding Notes.
Class C capital stock issuable upon exercise of stock options and Class C capital stock underlying unvested restricted stock units are calculated using the treasury stock method.
We have applied the if-converted method for calculating any potential dilutive effect of the conversion of the outstanding Notes on diluted net loss per share and diluted net loss from continuing operations per share, if applicable. The 2025 Notes have a maximum number of 6.2 million underlying shares and a conversion price per share of Class C capital stock of $67.20 based on the aggregate principal amount outstanding as of December 31, 2024.
For the periods presented, the following Class C capital stock equivalents were excluded from the calculations of diluted net loss per share and diluted net loss from continuing operations per share because their effect would have been antidilutive (in thousands):
Year Ended December 31,
202420232022
Weighted-average Class C capital stock option awards outstanding
31,276 21,021 15,759 
Weighted-average Class C capital stock restricted stock units outstanding
13,362 13,581 9,015 
Class C capital stock issuable upon conversion of the Notes
27,089 33,718 33,855 
Total Class C capital stock equivalents
71,727 68,320 58,629 
In the event of liquidation, dissolution, distribution of assets or winding-up of the Company, the holders of all classes of common and capital stock have equal rights to receive all the assets of the Company after the rights of the holders of preferred stock have been satisfied. We have not presented net loss per share under the two-class method for our Class A common stock, Class B common stock and Class C capital stock because it would be the same for each class due to equal dividend and liquidation rights for each class.
v3.25.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Interest Rate Lock Commitments
We have entered into IRLCs with prospective borrowers under our mortgage origination operations whereby we commit to lend a certain loan amount under specific terms and at a specific interest rate to the borrower. These commitments are treated as derivatives and are carried at fair value. For additional information regarding our IRLCs, see Note 4 to our consolidated financial statements.
Lease Commitments
We have entered into various non-cancelable operating lease agreements for certain of our office space and equipment with original lease periods expiring between 2025 and 2032. For additional information regarding our lease agreements, see Note 9 to our consolidated financial statements.
Purchase Commitments
Purchase commitments primarily include various non-cancelable agreements to purchase content related to our mobile applications and websites and certain cloud computing services. The amounts due for non-cancelable purchase commitments as
of December 31, 2024 are as follows (in millions):
Purchase Obligations
2025$112 
202680 
202764 
2028
Total future purchase commitments$257 
Escrow Balances
In conducting our title and escrow operations, we routinely hold customers’ assets in escrow, pending completion of real estate transactions, and are responsible for the proper disposition of these balances for our customers. Certain of these amounts are maintained in segregated bank accounts and have not been included in the accompanying consolidated balance sheets. These balances were not material as of December 31, 2024 and 2023.
Letters of Credit
As of December 31, 2024 and 2023, we have outstanding letters of credit of approximately $9 million and $11 million, respectively, which secure our lease obligations in connection with certain of our office space operating leases.
Surety Bonds
In the course of business, we are required to provide financial commitments in the form of surety bonds to third parties as a guarantee of our performance on and our compliance with certain obligations. If we were to fail to perform or comply with these obligations, any draws upon surety bonds issued on our behalf would then trigger our payment obligation to the surety bond issuer. We have outstanding surety bonds issued for our benefit of approximately $15 million as of December 31, 2024 and 2023.
Legal Proceedings
We are involved in a number of legal proceedings concerning matters arising in connection with the conduct of our business activities, some of which are at preliminary stages and some of which seek an indeterminate amount of damages. We regularly evaluate the status of legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or additional loss may have been incurred to determine if accruals are appropriate. We further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made if accruals are not appropriate. For certain cases described below, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in preliminary stages; (ii) specific damages have not been sought; (iii) damages sought are, in our view, unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories presented. For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material effect on our financial position, results of operations or cash flow. For the matters discussed below, we have not recorded any material accruals as of December 31, 2024 or 2023.
On September 17, 2019, International Business Machines Corporation (“IBM”) filed a complaint against us in the U.S. District Court for the Central District of California, alleging, among other things, that the Company has infringed and continues to willfully infringe seven patents held by IBM and seeks unspecified damages, including a request that the amount of compensatory damages be trebled, injunctive relief and costs and reasonable attorneys’ fees. Our motion to transfer venue to the U.S. District Court for the Western District of Washington (the “Court”) was granted on May 28, 2020. On November 25, 2022, Zillow filed a motion to join an Inter Partes Review (“IPR”) petition within Ebates Performance Mktg., Inc. d/b/a Rakuten Rewards v. Intl Bus. Machs. Corp. (“Rakuten IPR”), IPR2022-00646 concerning one patent in this action, which the Court granted on April 20, 2023. On October 11, 2023, the U.S. Patent and Trial Appeal Board (“PTAB”) ruled on the Rakuten IPR finding the claims of the patent asserted against Zillow unpatentable. IBM appealed the PTAB’s decision on November 21, 2023 (the “PTAB Appeal”), and cross appeals were filed by Ebates Performance Marketing Inc. on November 21, 2023 and by us on December 15, 2023. On March 20, 2024, IBM voluntarily dismissed all claims filed in this action against Zillow with prejudice, with the exception of those pertaining to the patent asserted within the pending PTAB Appeal. On June 21, 2024 we filed our response to the PTAB Appeal. On July 30, 2024, IBM filed its reply in further support of the PTAB Appeal. On September 3, 2024, we filed our reply in further support of our cross-appeal. There is a reasonable possibility that a loss may be
incurred related to this matter; however, the possible loss or range of loss is not estimable. We deny the allegations of any wrongdoing and intend to vigorously defend the claims in the lawsuit.
On November 16, 2021, November 19, 2021 and January 6, 2022, three purported class action lawsuits were filed against us and certain of our executive officers, alleging, among other things, violations of federal securities laws on behalf of a class of those who purchased our stock between August 7, 2020 and November 2, 2021. The three purported class action lawsuits, captioned Barua v. Zillow Group, Inc. et al., Silverberg v. Zillow Group, et al. and Hillier v. Zillow Group, Inc. et al. were brought in the Court and were consolidated on February 16, 2022 (the “Federal Securities Suit”). On May 12, 2022, the plaintiffs filed their amended consolidated complaint which alleges, among other things, that we issued materially false and misleading statements regarding our Zillow Offers business. The complaints seek to recover, among other things, alleged damages sustained by the purported class members as a result of the alleged misconduct. On December 7, 2022, the Court rendered its decision granting our previously filed motion to dismiss, in part, and denying the motion, in part. On January 23, 2023, we filed our answer to the consolidated complaint. On March 14, 2024, plaintiffs filed a motion for class certification, which was granted on August 23, 2024. On September 6, 2024, we filed a petition for permission to appeal the class certification order, on September 16, 2024, plaintiffs filed their opposition to our petition, and on September 23, 2024, we filed our reply in further support of the petition. On October 24, 2024, the Ninth Circuit issued an order granting Zillow permission to appeal, and on January 8, 2025, we filed our opening brief. On November 1, 2024, the Court issued an order staying the Federal Securities Suit pending the outcome of the appeal. There is a reasonable possibility that a loss may be incurred related to this matter; however, the possible loss or range of loss is not estimable. We deny the allegations of any wrongdoing and intend to vigorously defend the claims in this consolidated lawsuit.
On March 10, 2022, May 5, 2022, July 20, 2022 and October 31, 2024, shareholder derivative suits were filed in the Court and on July 25, 2022, a shareholder derivative suit was filed in the Superior Court of the State of Washington, King County, against us and certain of our executive officers and directors seeking unspecified damages on behalf of the Company and certain other relief, such as reform to corporate governance practices. The plaintiffs (including the Company as a nominal defendant) allege, among other things, that the defendants breached their fiduciary duties by failing to maintain an effective system of internal controls, which purportedly caused the losses the Company incurred when it decided to wind down Zillow Offers operations. Plaintiffs also allege, among other things, violations of Section 14(a) and Section 20(a) of the Securities Exchange Act of 1934, insider trading and waste of corporate assets. On August 23, 2023, a second shareholder derivative suit was filed in the Superior Court of the State of Washington, King County. As of December 31, 2024, these shareholder derivative lawsuits have been stayed by the relevant courts. There is a reasonable possibility that a loss may be incurred related to this matter; however, the possible loss or range of loss is not estimable. The defendants deny the allegations of any wrongdoing and vigorously defend the claims in these lawsuits.
In addition to the matters discussed above, from time to time, we are involved in litigation and claims that arise in the ordinary course of business. Although we cannot be certain of the outcome of any such litigation or claims, nor the amount of damages and exposure that we could incur, we currently believe that the final disposition of such matters will not have a material effect on our business, financial position, results of operations or cash flow. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.
Indemnifications
In the ordinary course of business, we enter into contractual arrangements under which we agree to provide indemnification of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements and out of intellectual property infringement claims made by third parties. In addition, we have agreements that indemnify certain issuers of surety bonds against losses that they may incur as a result of executing surety bonds on our behalf. For our indemnification arrangements, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. Further, our obligations under these agreements may be limited in terms of time and/or amount, and in some instances, we may have recourse against third parties for certain payments. In addition, we have indemnification agreements with certain of our directors and executive officers that require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The terms of such obligations may vary.
v3.25.0.1
Employee Benefit Plan
12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Benefit Plan Employee Benefit Plan
We have a defined contribution 401(k) retirement plan covering Zillow Group employees who have met certain eligibility requirements (the “Zillow Group 401(k) Plan”). Eligible employees may contribute pre-tax compensation up to a maximum amount allowable under the Internal Revenue Service limitations. Employee contributions and earnings thereon vest immediately. We currently match up to 4% of employee contributions under the Zillow Group 401(k) Plan. The total expense
related to the Zillow Group 401(k) Plan was $35 million, $33 million and $29 million, respectively, for the years ended December 31, 2024, 2023 and 2022.
v3.25.0.1
Revenue and Contract Balances
12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue and Contract Balances Revenue and Contract Balances
We recognize revenue when or as we satisfy our performance obligations by transferring control of the promised products or services to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those products or services. See Note 2 for additional information on our revenue from contracts with customers and contract balances.
Disaggregation of Revenue
The following table presents our revenue disaggregated by category for the periods presented (in millions):
 Year Ended December 31,
202420232022
Revenue:
For Sale revenue:
Residential$1,594 $1,452 $1,522 
Mortgages145 96 119 
Total For Sale revenue
1,739 1,548 1,641 
Rentals
453 357 274 
Other
44 40 43 
Total revenue$2,236 $1,945 $1,958 
Contract Balances
Contract assets totaled $157 million and $90 million as of December 31, 2024 and December 31, 2023, respectively. As of December 31, 2024, the average remaining recognition period for our contract asset related to our Premier Agent Flex offering was five months.
For the year ended December 31, 2024, the opening balance of deferred revenue was $52 million, of which $51 million was recognized as revenue during the period. For the year ended December 31, 2023, the opening balance of deferred revenue was $44 million, of which $43 million was recognized as revenue during the period.
v3.25.0.1
Segment Information
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
Beginning in 2023, our CODM, who is our CEO, began managing our business, making operating decisions and evaluating operating performance on the basis of the company as a whole, instead of on a segment basis. Accordingly, this change resulted in revisions to the nature and substance of information regularly provided to and used by the CODM. This aligned our reported results with our ongoing growth strategy and our intent to provide integrated customer solutions for all tasks and services related to facilitating residential real estate transactions in the United States. As a result, we have determined that we have a single reportable segment.
Our CODM assesses performance and decides how to allocate resources based on net income (loss) as reported in our consolidated statements of operations. The measure of segment assets is reported on the consolidated balance sheets as total assets. The CODM uses net income (loss) to evaluate return on total assets in deciding whether to invest in the development and expansion of our consolidated operations or into strategic transactions, such as acquisitions and capital repurchases. Net income (loss) is also used to monitor budget versus actual results, perform competitive benchmarking analyses, and is considered in evaluating our executives’ compensation.
Significant Segment Expenses
The following table presents our significant expense categories included in our reported measure of segment profitability for the periods presented (in millions):
 Year Ended December 31,
202420232022
Revenue$2,236 $1,945 $1,958 
Less:
Headcount-related expenses, excluding share-based compensation1,110 993 906 
Share-based compensation448 451 433 
Depreciation and amortization240 187 150 
Marketing and advertising costs
194 155 165 
Direct product and service costs
184 144 133 
Third-party professional service fees
70 75 75 
Facility expenses28 59 47 
Impairment and restructuring costs
19 24 
Acquisition-related costs
— 
Other items (1)
152 128 118 
Loss from continuing operations(197)(270)(93)
Gain (loss) on extinguishment of debt
(1)— 
Other income, net
127 151 43 
Interest expense
(36)(36)(35)
Income tax expense
(5)(4)(3)
Loss from discontinued operations, net of income taxes— — (13)
Net loss$(112)$(158)$(101)
v3.25.0.1
Subsequent Event
12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
Subsequent Event Subsequent Event
On February 6, 2025, we entered into a partnership (“rentals partnership”) with Redfin Corporation (“Redfin”), making Zillow the exclusive provider of multifamily rental listings (properties with 25 or more units) on Redfin and its sites, including Rent.com and ApartmentGuide.com (together, “Redfin Rental Network”). Redfin will facilitate Zillow’s entry into advertising agreements with property management companies that currently provide rental listings on Redfin. Pursuant to this rentals partnership, Zillow will make a $100 million upfront payment to Redfin and will pay Redfin for leads generated through the Redfin Rental Network for an initial period of five years with two optional two-year extensions, subject to the terms of the underlying agreements. We have not yet completed our evaluation of the impact this rentals partnership will have on our consolidated financial statements.
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net loss $ (112) $ (158) $ (101)
v3.25.0.1
Insider Trading Arrangements
3 Months Ended 12 Months Ended
Dec. 31, 2024
shares
Dec. 31, 2024
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Jun Choo [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On December 5, 2024, Jun Choo, Chief Operating Officer of the Company, entered into a 10b5-1 sales plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. This 10b5-1 sales plan provides for the sale of up to 50,085 shares of Class C capital stock related to the exercise of option awards granted to Mr. Choo. This 10b5-1 sales plan will become effective on March 10, 2025 and will terminate on March 13, 2026, subject to earlier termination as provided in the plan.
Name Jun Choo  
Title Chief Operating Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date December 5, 2024  
Expiration Date March 13, 2026  
Arrangement Duration 368 days  
Aggregate Available 50,085 50,085
Richard N. Barton [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On December 11, 2024, Richard N. Barton, co-founder and Co-Executive Chairman of the Board, entered into a 10b5-1 sales plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. This 10b5-1 sales plan provides for the sale of up to 300,000 shares of Class C capital stock related to the exercise of option awards granted to Mr. Barton. This 10b5-1 sales plan will become effective on April 1, 2025 and will terminate on March 25, 2026, subject to earlier termination as provided in the plan.
Name Richard N. Barton  
Title co-founder and Co-Executive Chairman of the Board  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date December 11, 2024  
Expiration Date March 25, 2026  
Arrangement Duration 358 days  
Aggregate Available 300,000 300,000
Lloyd D. Frink [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On December 11, 2024, Lloyd D. Frink, co-founder, President of the Company, and Co-Executive Chairman of the Board, entered into a 10b5-1 sales plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. This 10b5-1 sales plan provides for an aggregate sale of (i) up to 200,000 shares of Class C capital stock plus (ii) up to an additional 200,000 shares of Class C capital stock related to the exercise of option awards granted to Mr. Frink. This 10b5-1 sales plan will become effective on April 14, 2025 and will terminate on March 12, 2026, subject to earlier termination as provided in the plan.
Name Lloyd D. Frink  
Title co-founder, President of the Company, and Co-Executive Chairman of the Board  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date December 11, 2024  
Expiration Date March 12, 2026  
Arrangement Duration 332 days  
Aggregate Available 200,000 200,000
v3.25.0.1
Insider Trading Policies and Procedures
12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Risk Management, Strategy and Management Oversight

We have an enterprise risk management function responsible for the oversight and assessment of ongoing and emerging risks to our business operations and the integrity of our data, including the impact of cybersecurity risks. Our enterprise risk management team maintains a steering committee that oversees and opines on our processes to identify, prioritize and assess key risks, including risks related to cybersecurity. The steering committee is composed of senior leaders with visibility into our key risks. Such members have expertise in the areas of risk management, business strategy, information technology, cybersecurity, legal and compliance, finance, and business products, among others. In partnership with other stakeholders, this steering committee monitors risk exposures, promotes risk-management strategies, and implements acceptance and notification criteria. The activities of the steering committee are overseen by the Audit Committee of our Board (the “Audit Committee”).

We also maintain an information security function that oversees the protection of our information assets through a program informed by standards promoted by the National Institute of Standards and Technology cybersecurity framework and the Cyber Risk Institute’s Cyber Profile. These frameworks guide our information security function in designing programs to assess cybersecurity risks and respond to cybersecurity incidents. The information security team is led by a designated Chief Information Security Officer (“CISO”) who is responsible for leading enterprise-wide cybersecurity strategy, including assessing and managing risks from cybersecurity threats, and implementing technical security controls by maintaining policies, standards and processes. With more than 20 years of experience in the field of technology and cybersecurity, our CISO has had extensive involvement with the information security function and the maintenance of a robust cybersecurity program. Our CISO has held data privacy and information security roles with increasing responsibility in heavily regulated industries such as financial services, technology and gaming and is a certified information systems security professional.

The information security team maintains incident response policies and procedures designed to help protect the integrity, availability and confidentiality of information and help prevent loss of service. Additionally, we conduct an annual cybersecurity awareness training to educate our employees and empower them to help prevent and respond to cybersecurity events and incidents. Cybersecurity events and incidents may be reported or detected through a variety of means, including emails to centralized information security addresses, our online information technology ticketing system, automatic alerts and incident detection systems, direct discovery by our information security team, or reports from employees or other third parties. Additionally, our incident response policies and procedures specify the process for initial investigation and containment procedures, remediation tactics, retention of documentation and internal and external communications. Our incident response policies and procedures also specify processes for analyzing the severity of an identified incident. In response to cybersecurity incidents, we may involve external advisors to assist with remediation efforts and communications and we may seek to mitigate associated liabilities through our insurance coverage. Such third parties may include external legal counsel, forensic investigators and public relation firms, among others. These vendors serve to support our existing processes and procedures and operate as an extension of our enterprise risk management and information security functions.

Our internal audit team conducts security controls testing over systems in scope for various regulatory and compliance requirements. In addition, management performs periodic third-party risk assessments, vulnerability testing, system and cloud security assessments against our information technology environment. Management also engages third-party external auditors to perform independent testing against all systems in scope for our regulatory and customer-driven compliance obligations.

We engage a variety of third-party service providers to process and store data, including certain customer information, some of which may include personally identifiable information. We also depend on third-party service providers to host many of the systems and infrastructure used to provide our products and services. A limited number of third-party services support essential functions of our business, including the use of cloud-based technology. We rely on these third parties to implement
their own cybersecurity programs and cannot ensure their effectiveness. To manage cybersecurity risks arising from our use of third parties, we have a third-party service provider management program which includes the use of security questionnaires, review of statements of work and related information security addenda, procuring results of audits and compliance reviews and obtaining overviews of network infrastructure, among others. Depending on the nature of the services provided, the sensitivity of the data at issue and the identity of the third-party, our third-party service provider management process may involve different levels of assessment designed to help identify cybersecurity risks associated with a provider and impose contractual obligations related to cybersecurity on the provider.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] We have an enterprise risk management function responsible for the oversight and assessment of ongoing and emerging risks to our business operations and the integrity of our data, including the impact of cybersecurity risks. Our enterprise risk management team maintains a steering committee that oversees and opines on our processes to identify, prioritize and assess key risks, including risks related to cybersecurity.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
The Audit Committee oversees major enterprise risks and the steps management has taken to monitor and control such exposure, including risks to our information technology infrastructure and security. Members of our legal, compliance, enterprise risk management and information security management teams provide information and updates on any significant issues related to these topics at Audit Committee meetings, which are typically held at least quarterly. The Audit Committee is responsible for ensuring independent examination of management’s programs to identify, assess, respond to and monitor risks, which include those performed by internal audit and third party consultants, among others.

Audit Committee member education is provided throughout the year through presentations and discussions led by members of management, third-party consultants, our independent registered public accounting firm and legal counsel, on topics including information security, among others. Members of our Audit Committee have expertise in the technology industry as well as corporate risk management strategies.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] The Audit Committee oversees major enterprise risks and the steps management has taken to monitor and control such exposure, including risks to our information technology infrastructure and security.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] Members of our legal, compliance, enterprise risk management and information security management teams provide information and updates on any significant issues related to these topics at Audit Committee meetings, which are typically held at least quarterly. The Audit Committee is responsible for ensuring independent examination of management’s programs to identify, assess, respond to and monitor risks, which include those performed by internal audit and third party consultants, among others.
Cybersecurity Risk Role of Management [Text Block]
The Audit Committee oversees major enterprise risks and the steps management has taken to monitor and control such exposure, including risks to our information technology infrastructure and security. Members of our legal, compliance, enterprise risk management and information security management teams provide information and updates on any significant issues related to these topics at Audit Committee meetings, which are typically held at least quarterly. The Audit Committee is responsible for ensuring independent examination of management’s programs to identify, assess, respond to and monitor risks, which include those performed by internal audit and third party consultants, among others.

Audit Committee member education is provided throughout the year through presentations and discussions led by members of management, third-party consultants, our independent registered public accounting firm and legal counsel, on topics including information security, among others. Members of our Audit Committee have expertise in the technology industry as well as corporate risk management strategies.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] These frameworks guide our information security function in designing programs to assess cybersecurity risks and respond to cybersecurity incidents. The information security team is led by a designated Chief Information Security Officer (“CISO”) who is responsible for leading enterprise-wide cybersecurity strategy, including assessing and managing risks from cybersecurity threats, and implementing technical security controls by maintaining policies, standards and processes.
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] With more than 20 years of experience in the field of technology and cybersecurity, our CISO has had extensive involvement with the information security function and the maintenance of a robust cybersecurity program. Our CISO has held data privacy and information security roles with increasing responsibility in heavily regulated industries such as financial services, technology and gaming and is a certified information systems security professional.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
We have an enterprise risk management function responsible for the oversight and assessment of ongoing and emerging risks to our business operations and the integrity of our data, including the impact of cybersecurity risks. Our enterprise risk management team maintains a steering committee that oversees and opines on our processes to identify, prioritize and assess key risks, including risks related to cybersecurity. The steering committee is composed of senior leaders with visibility into our key risks. Such members have expertise in the areas of risk management, business strategy, information technology, cybersecurity, legal and compliance, finance, and business products, among others. In partnership with other stakeholders, this steering committee monitors risk exposures, promotes risk-management strategies, and implements acceptance and notification criteria. The activities of the steering committee are overseen by the Audit Committee of our Board (the “Audit Committee”).

We also maintain an information security function that oversees the protection of our information assets through a program informed by standards promoted by the National Institute of Standards and Technology cybersecurity framework and the Cyber Risk Institute’s Cyber Profile. These frameworks guide our information security function in designing programs to assess cybersecurity risks and respond to cybersecurity incidents. The information security team is led by a designated Chief Information Security Officer (“CISO”) who is responsible for leading enterprise-wide cybersecurity strategy, including assessing and managing risks from cybersecurity threats, and implementing technical security controls by maintaining policies, standards and processes. With more than 20 years of experience in the field of technology and cybersecurity, our CISO has had extensive involvement with the information security function and the maintenance of a robust cybersecurity program. Our CISO has held data privacy and information security roles with increasing responsibility in heavily regulated industries such as financial services, technology and gaming and is a certified information systems security professional.

The information security team maintains incident response policies and procedures designed to help protect the integrity, availability and confidentiality of information and help prevent loss of service. Additionally, we conduct an annual cybersecurity awareness training to educate our employees and empower them to help prevent and respond to cybersecurity events and incidents. Cybersecurity events and incidents may be reported or detected through a variety of means, including emails to centralized information security addresses, our online information technology ticketing system, automatic alerts and incident detection systems, direct discovery by our information security team, or reports from employees or other third parties. Additionally, our incident response policies and procedures specify the process for initial investigation and containment procedures, remediation tactics, retention of documentation and internal and external communications. Our incident response policies and procedures also specify processes for analyzing the severity of an identified incident. In response to cybersecurity incidents, we may involve external advisors to assist with remediation efforts and communications and we may seek to mitigate associated liabilities through our insurance coverage. Such third parties may include external legal counsel, forensic investigators and public relation firms, among others. These vendors serve to support our existing processes and procedures and operate as an extension of our enterprise risk management and information security functions.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying consolidated financial statements include Zillow Group, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These consolidated financial statements have been prepared in conformity with GAAP.
Use of Estimates
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. On an ongoing basis, we evaluate our estimates, including those related to the accounting for certain revenue offerings, amortization period and recoverability of contract cost assets, website and software development costs, recoverability of long-lived assets and intangible assets, share-based compensation, income taxes, business combinations, including the initial and subsequent fair value measurements of assets (primarily intangible assets), liabilities and contingent consideration, and the recoverability of goodwill, among others. To the extent there are material differences between these estimates, judgments or assumptions and actual results, our financial statements will be affected. The health of the housing market and the broader economy may result in additional uncertainty with respect to estimates, judgments and assumptions, which may materially impact the estimates previously listed, among others.
Concentrations of Credit Risk
Concentrations of Credit Risk
Financial instruments, which potentially subject us to concentrations of credit risk, consist primarily of cash and cash equivalents, investments, accounts receivable and mortgage loans held for sale. We place cash and cash equivalents and investments with major financial institutions, which management assesses to be of high credit quality, in order to limit the exposure of our investments to credit risk.
Credit risk with respect to accounts receivable is dispersed due to the large number of customers. There were no customers that comprised 10% or more of our total accounts receivable as of December 31, 2024 or 2023. Further, our credit risk on accounts receivable is mitigated by the relatively short payment terms that we offer. Collateral is not required for accounts receivable. We maintain an allowance for doubtful accounts such that receivables are stated at net realizable value.
Similarly, our credit risk on mortgage loans held for sale is dispersed due to a large number of customers and is mitigated by the fact that we typically sell mortgages on the secondary market within a relatively short period of time after the loan is originated.
Cash and Cash Equivalents/Restricted Cash
Cash and Cash Equivalents
Cash includes demand deposits with banks or financial institutions. Cash equivalents include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Our cash equivalents represent investments with original maturities of three months or less. We regularly maintain cash in excess of federally insured limits at financial institutions.
Restricted Cash
Restricted cash primarily consists of amounts held in escrow related to indemnification holdbacks for certain of our acquisitions and amounts used to fund customer home purchases in our mortgage origination business.
Short-term Investments
Short-term Investments
Our investments consist of fixed income securities, which include U.S. government treasury securities, investment grade corporate securities, U.S. government agency securities and commercial paper. The investments are available to support current
operations and are classified as short-term investments measured at fair value. Our investment policy only allows for purchases of investment-grade securities and provides guidelines on concentrations to ensure minimum risk of loss. We evaluate whether unrealized losses on available-for-sale debt securities are the result of credit worthiness of the securities held or other non-credit related factors. If an unrealized loss is the result of credit quality factors, we recognize an allowance reflective of our current estimate of credit losses expected to be incurred over the life of the financial instrument on a specific identification basis upon initial recognition and at each reporting period. If a reduction in value is a result of other factors, we continue to classify the losses in comprehensive loss unless either we intend to sell the security or it is more likely than not we will be required to sell the security.
Mortgage Loans Held for Sale
Mortgage Loans Held for Sale
Mortgage loans held for sale include residential mortgages originated for sale in the secondary market in connection with our mortgage origination business. We have elected the fair value option for all mortgage loans held for sale as election of this option allows for a better offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. Mortgage loans held for sale are initially recorded at fair value based on either sale commitments or current market quotes and are adjusted for subsequent changes in fair value until the loans are sold. Net origination costs and fees associated with mortgage loans are recognized as incurred. We sell substantially all of the mortgages we originate and the related servicing rights to third-party purchasers. Interest income is earned from the date a mortgage loan is originated until the loan is sold and is classified within other income, net in the consolidated statements of operations.
Generally, mortgage loans originated are sold within a short period of time in the secondary mortgage market on a servicing released, nonrecourse basis, which limits exposure to nonperformance by loan buyer counterparties. However, we remain liable for certain limited representations and warranties related to loan sales, such as non-compliance with defined loan origination or documentation standards, including misstatement in the loan documents, early payoff or default on early payments. Mortgage investors could seek to have us buy back loans or compensate them for losses incurred on mortgages we have sold based on claims that we breached our limited representations and warranties. We record a reserve for probable losses in connection with the sale of mortgage loans within accrued expenses and other current liabilities in the consolidated balance sheet.
Loan Commitments and Related Derivatives
Loan Commitments and Related Derivatives
We are party to IRLCs, which are extended to borrowers who have applied for loan funding and meet defined credit and underwriting criteria in connection with our Zillow Home Loans mortgage origination business. IRLCs are accounted for as derivative instruments recorded at fair value with gains and losses recognized in revenue in the consolidated statements of operations. We manage our interest rate risk related to IRLCs and mortgage loans held for sale through the use of derivative instruments, generally forward contracts on MBSs, which are commitments to either purchase or sell a financial instrument at a future date for a specified price, and mandatory loan commitments, which are an obligation by an investor to buy loans at a specified price within a specified time period. We do not enter into or hold derivatives for trading or speculative purposes, and our derivatives are not designated as hedging instruments. Changes in the fair value of our derivative financial instruments are recognized in revenue in our consolidated statements of operations, and the fair values are reflected in other current assets or other current liabilities, as applicable. Refer to Note 4 to our consolidated financial statements for additional information regarding IRLCs and related derivatives.
There are no credit-risk-related contingent features within our derivative agreements, and counterparty risk is considered minimal. Gains and losses on IRLCs are substantially offset by corresponding gains or losses on forward contracts on MBSs and mandatory loan commitments. We are generally not exposed to variability in cash flows of derivative instruments for more than approximately 90 days.
Contract Balances/Contract Cost Assets/Revenue Recognition
Contract Balances
Accounts receivable represent our unconditional right to consideration. Accounts receivable are generally due within 30 days and are recorded net of the allowance for doubtful accounts. The allowance for doubtful accounts represents our estimate
of expected credit losses over the contractual life of the accounts receivable. To evaluate the adequacy of our allowance for doubtful accounts each reporting period, we analyze the accounts receivable balances with similar risk characteristics on a collective basis, considering factors such as the aging of receivable balances, payment terms, historical loss experience, current information and future expectations. Changes to the allowance for doubtful accounts are adjusted through credit loss expense, which is included in general and administrative expenses in the consolidated statements of operations.
Contract assets represent our right to consideration in exchange for goods and services that we have transferred to the customer when that right is conditional on something other than the passage of time. Contract assets are primarily related to our Premier Agent Flex, Zillow Lease Connect and StreetEasy Experts offerings, whereby we estimate variable consideration based on the expected number of real estate transactions to be closed for Premier Agent Flex and StreetEasy Experts, and qualified leases to be secured for Zillow Lease Connect. We recognize revenue when we satisfy our performance obligations under the corresponding contracts. The current portion of contract assets are recorded within prepaid expenses and other current assets and the long-term portion of contract assets are recorded within other assets in our consolidated balance sheets.
Contract liabilities consist of deferred revenue, which relates to payments received in advance of performance under a revenue contract. Deferred revenue is primarily related to prepaid advertising fees received or billed in advance of satisfying our performance obligations and prepaid but unrecognized subscription revenue. Deferred revenue is recognized when or as we satisfy our obligations under contracts with customers.
Contract Cost Assets
We capitalize certain incremental costs of obtaining contracts with customers which we expect to recover. These costs relate to commissions paid to sales personnel, primarily for our Premier Agent and Rentals products. As a practical expedient, we recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that we otherwise would have recognized is one year or less. Capitalized commission costs are recorded as contract cost assets in our consolidated balance sheets. Contract cost assets are amortized to expense on a straight-line basis over a period that is consistent with the transfer to the customer of the products or services to which the asset relates, generally the estimated life of the customer relationship. Amortization expense related to contract cost assets is included in sales and marketing expenses in our consolidated statements of operations. In determining the estimated life of our customer relationships, we consider quantitative and qualitative data, including, but not limited to, historical customer data, recent changes or expected changes in product or service offerings and changes in how we monetize our products and services.
We monitor our contract cost assets for impairment and recognize an impairment loss in the consolidated statements of operations to the extent the carrying amount of the asset recognized exceeds the amount of consideration that we expect to receive in the future and that we have received but have not recognized in revenue less the costs that relate directly to providing those goods or services that have not yet been recognized as expenses. For the years ended December 31, 2024, 2023 and 2022, we did not record any material impairment losses to our contract cost assets.
Revenue Recognition
We recognize revenue when or as we satisfy our performance obligations by transferring control of the promised products or services to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those products or services.
As a practical expedient, we do not adjust the promised amount of consideration for the effects of a significant financing component, as the period between our transfer of a promised product or service to a customer and when the customer pays for that product or service is generally one year or less, with the exception of certain of our pay for performance products, including Premier Agent Flex and StreetEasy Experts, whereby we may not receive payment for services provided for up to two years after control of the promised products or services is transferred to our customers. In these cases, however, because a substantial portion of the consideration is variable, we have concluded the contracts do not include a significant financing component.
We do not disclose the transaction price related to remaining performance obligations for (i) contracts with an original expected duration of one year or less or (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for performance completed to date. The remaining duration over which we satisfy our performance obligations is generally less than one year.
We disaggregate our revenue into the following categories: Residential, Rentals, Mortgages and Other, described below. Our “For Sale revenue” subtotal includes our Residential and Mortgages revenue categories and represents our revenue from participation in residential real estate purchase and sale transactions.
Residential. Residential revenue includes revenue generated by our Premier Agent and new construction marketplaces, as well as revenue from the sale of advertising and business technology solutions for real estate professionals through ShowingTime+, StreetEasy for-sale product offerings, and Follow Up Boss.
Our Premier Agent program offers a suite of marketing and technology products and services to help real estate agents and brokers achieve their advertising goals while growing and managing their businesses and brands. The marketing and business technology products and services promised to Premier Agent partners are delivered over time, as the customer simultaneously receives and consumes the benefit of the performance obligations.
Premier Agent advertising products, which include the delivery of validated customer connections, or leads, are offered on a share of voice (“market-based pricing”) and pay for performance basis. Connections are delivered when consumer contact information is provided to Premier Agent partners. We do not promise any minimum or maximum number of connections to customers, but instead control when and how many connections to deliver based on a customer’s share of voice. A Premier Agent partners’ share of voice in a zip code is determined by their proportional monthly prepaid spend in that zip code as a percentage of the total monthly prepaid spend of all Premier Agent partners in that zip code, and determines the proportion of connections a Premier Agent partner receives. The number of connections delivered for a given spend level is dynamic; as
demand for advertising in a zip code increases or decreases, the number of connections delivered to a Premier Agent partner in that zip code decreases or increases accordingly.
We recognize revenue related to Premier Agent market-based pricing products and services based on the monthly prepaid spend recognized on a straight-line basis during the monthly billing period over which the products and services are provided. This methodology best depicts how we satisfy our performance obligations to customers, as we continuously transfer control of the performance obligations to the customer over time. We have not allocated the transaction price to each performance obligation within our Premier Agent market-based pricing arrangements, as the amounts recognized would be the same irrespective of any allocation.
Our pay for performance pricing model is called “Flex” and is available in certain markets to select partners. With the Flex model, Premier Agent partners are provided with leads at no initial cost and pay a performance advertising fee only when a real estate transaction is closed with one of the leads, generally within two years. With this pricing model, the transaction price represents variable consideration, as the amount to which we expect to be entitled varies based on the number of leads that convert into real estate transactions and the value of those transactions. We estimate variable consideration and record revenue as our performance obligations, or leads, are transferred. We do not believe that a significant reversal in the amount of cumulative revenue recognized will occur once the uncertainty related to the number of transactions closed is subsequently resolved. We record a contract asset for our estimate of the consideration to which we will be entitled when the right to the consideration is conditional. When the right to consideration becomes unconditional, upon the close of a real estate transaction, we reclassify amounts to accounts receivable.
Revenue from ShowingTime+ encompasses several products and services including Dotloop, ShowingTime, Zillow Showcase and Listing Media Services. Dotloop is a real estate transaction management SaaS solution. ShowingTime primarily generates revenue through Appointment Center, which is a SaaS and call center solution allowing real estate agents, brokerages and multiple listing services to efficiently schedule real estate viewing appointments on behalf of their customers. Both Dotloop and Appointment Center revenue are primarily billed monthly in advance and recognized ratably over the contract period, aligning to the satisfaction of our performance obligations. ShowingTime+ revenue also includes revenue generated from Zillow Showcase, an advertising and marketing solution which allows real estate agents to advertise an enhanced listing on Zillow’s mobile applications and websites. Customers pay for Zillow Showcase credits upfront. We recognize revenue by measuring our progress towards satisfaction of our performance obligations, primarily the enhanced listing features, using the output method of results achieved. ShowingTime+ revenue also includes Listing Media Services, a real estate photography and rich media platform. Customers typically pay for Listing Media Services upfront at the time of scheduling their appointment with a photographer. We recognize revenue at a point in time upon transfer of control of the media purchased to our customers.
Our new construction marketing solutions allow home builders to showcase their available inventory to home shoppers. New construction revenue primarily includes revenue generated by advertising sold to builders on a cost per residential community basis whereby we recognize revenue on a straight-line basis during the contractual period over which the communities are advertised on our mobile applications and websites. New construction revenue also includes revenue generated on a cost per impression basis whereby we recognize revenue as impressions are delivered to users interacting with our mobile applications and websites, which is the amount for which we have the right to invoice. Consideration for new construction products is billed in arrears.
StreetEasy for-sale revenue primarily consists of our StreetEasy Experts and StreetEasy subscription offerings. StreetEasy Experts is our pay for performance pricing model available in the New York City market for which agents and brokers are provided with leads at no initial cost and pay a performance referral fee only when a real estate purchase transaction is closed with one of the leads. Under the StreetEasy Experts pricing model, the transaction price represents variable consideration, as the amount to which we expect to be entitled varies based on the number of leads that convert into real estate transactions and the value of those transactions. We estimate variable consideration based on the expected number of closed transactions during the period. We do not believe that a significant reversal in the amount of cumulative revenue recognized will occur once the uncertainty related to the number of transactions closed is subsequently resolved. We record a corresponding contract asset for the estimate of variable consideration for StreetEasy Experts when the right to the consideration is conditional. When the right to consideration becomes unconditional upon the close of a real estate transaction, we reclassify amounts to accounts receivable. Revenue generated through StreetEasy subscription offerings includes the sale of advertising and a suite of tools to developers, property managers, agents and other real estate professionals. StreetEasy subscription customers pay in advance on a cost per property basis, based on the property size and product tier. We recognize revenue on a straight-line basis over the contractual listing period which aligns to our satisfaction of performance obligations.
Follow Up Boss is a SaaS solution allowing real estate agents, teams and brokerages to manage real estate leads from the initial contact through the home buying or selling process. Follow Up Boss revenue is primarily billed in advance on a monthly basis and recognized ratably over the contract period, aligning to the satisfaction of our performance obligations.
Rentals. Rentals revenue includes the sale of advertising and a suite of tools to rental professionals, landlords and other market participants under the Zillow and StreetEasy brands. Rentals revenue includes revenue generated by advertising sold to property managers, landlords and other rental professionals on a cost per lead, lease, listing or impression basis or for a fixed fee for certain advertising packages. We recognize revenue as leads, clicks and impressions are provided to rental professionals, or as rental listings are published on our mobile applications and websites, which is the amount for which we have the right to invoice. We bill our fixed fee rentals products monthly in arrears and recognize revenue ratably over the contract period, aligning to the satisfaction of our performance obligations. The number of leases generated through our rentals pay per lease product, Zillow Lease Connect, during the period is accounted for as variable consideration. We estimate the amount of consideration based on the expected number of qualified leases secured during the period. We do not believe that a significant reversal in the amount of cumulative revenue recognized will occur once the uncertainty related to the number of leases secured is subsequently resolved. We record a contract asset for the estimate of variable consideration for Zillow Lease Connect when the right to the consideration is conditional. When the right to consideration becomes unconditional upon the execution of a lease, we reclassify amounts to accounts receivable. Rentals revenue also includes revenue generated from our rental applications product, through which potential renters can submit applications to multiple properties for a flat service fee. Rental applications customers pay upfront and we recognize revenue ratably over the contractual period during which the customer has the right to access and submit the rental application.
Mortgages. Mortgages revenue primarily includes revenue generated by Zillow Home Loans, our affiliated mortgage lender, and marketing products sold to mortgage professionals on a cost per lead basis, including our Custom Quote and Connect services.
Mortgage origination revenue reflects origination fees on purchase or refinance mortgages and the corresponding sale, or expected future sale, of a loan. When an IRLC is made to a customer, we record the expected gain on sale of the mortgage, plus the estimated earnings from the expected sale of the associated servicing rights, adjusted for a pull-through percentage (which is defined as the likelihood that an IRLC will be originated), as revenue. Revenue from loan origination fees is recognized at the time the related purchase or refinance transactions are completed, usually upon the close of escrow and when we fund the purchase or refinance mortgage loans. Once funded, mortgage loans held for sale are recorded at fair value based on either sale commitments or current market quotes and are adjusted for subsequent changes in fair value until the loan is sold. Origination costs associated with originating mortgage loans are recognized as incurred. We generally sell the mortgages we originate and the related servicing rights to third-party purchasers.
Mortgage loans are sold with limited recourse provisions, which can result in repurchases of loans previously sold to investors or payments to reimburse investors for loan losses. Based on historical experience, discussions with our mortgage purchasers, analysis of the volume of mortgages we originated and current housing and credit market conditions, we estimate and record a loss reserve for mortgage loans held for sale, as well as known and projected mortgage loan repurchase requests. These have historically not been significant to our financial statements.
Zillow Group operates Custom Quote and Connect through its wholly owned subsidiary, Zillow Group Marketplace, Inc., a licensed mortgage broker. For our Connect and Custom Quote cost per lead marketing products, participating qualified mortgage professionals typically make a prepayment to gain access to consumers interested in connecting with mortgage professionals. Mortgage professionals who exhaust their initial prepayment prepay additional funds to continue to participate in the marketplace. For our cost per lead mortgages products, we recognize revenue when a user contacts a mortgage professional through our mortgages platform, which corresponds directly to the value of our performance.
Other. Other revenue primarily includes revenue generated from display products, which consist of graphical mobile and web advertising sold on a cost per thousand impressions or cost per click basis to advertisers promoting their brands on our mobile applications and websites. We recognize revenue as clicks occur or as impressions are delivered to users interacting with our mobile applications or websites, which is the amount for which we have the right to invoice.
There were no customers that generated 10% or more of our total revenue in the years ended December 31, 2024, 2023 or 2022.
Cost of Revenue. Cost of revenue consists of expenses related to operating our mobile applications and websites, including associated headcount-related expenses, such as salaries, benefits, bonuses and share-based compensation expense, as well as revenue-sharing costs related to our commercial business relationships, depreciation expense, and costs associated with hosting our mobile applications and websites. Cost of revenue also includes amortization costs related to capitalized website and development activities, amortization of software, amortization of certain intangible assets and other costs to obtain data used to populate our mobile applications and websites, and amortization of certain intangible assets recorded in connection with acquisitions, including developed technology. Cost of revenue also includes credit card fees and ad serving costs paid to third
parties, direct costs to provide our rental applications product, and direct costs to originate loans, including underwriting and processing costs.
Sales and Marketing. Sales and marketing expenses consist of advertising costs and other sales expenses related to promotional and marketing activities, headcount-related expenses, including salaries, commissions, benefits, bonuses and share-based compensation expense for sales, sales support, customer support, including the customer connections team and mortgage loan officers and specialists, marketing and public relations employees, depreciation expense and amortization of certain intangible assets recorded in connection with acquisitions, including trade names and trademarks and customer relationships.
Advertising costs are expensed as incurred.
Property and Equipment
Property and Equipment
Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. The useful lives are as follows:
 
Computer equipment  
3 years
Office equipment, furniture and fixtures  
5 to 7 years
Leasehold improvements  Shorter of expected useful life or lease term
Maintenance and repair costs are charged to expense as incurred. Major improvements, which extend the useful life of the related asset, are capitalized. Upon disposal of a fixed asset, we record a gain or loss based on the difference between the proceeds received and the net book value of the disposed asset. We remove fully depreciated property and equipment from the cost and accumulated depreciation amounts disclosed.
Website and Software Development Costs
Website and Software Development Costs
Costs incurred in the preliminary stages of website and software development are expensed as incurred. Once an application has reached the development stage, internal and external costs, if direct and incremental and deemed by management to be significant, are capitalized in property and equipment and amortized on a straight-line basis over their estimated useful lives. Maintenance and enhancement costs, including those costs in the post-implementation stages, are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the website or software that
result in added functionality, in which case the costs are capitalized and amortized on a straight-line basis over their estimated useful lives. Amortization expense related to capitalized website and software development costs is included in cost of revenue in our consolidated statements of operations.
Capitalized development activities placed in service are amortized over the expected useful lives of those releases, currently estimated at one to five years. The estimated useful lives of website and software development activities are reviewed frequently and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades and/or enhancements to the existing functionality. We remove fully amortized website and software development costs from the cost and accumulated amortization amounts disclosed.
Construction-in-progress primarily consists of website and software development costs that are capitalizable, but for which the associated applications have not been placed in service.
Leases
Leases
Our lease portfolio is primarily composed of operating leases for our office space. We determine whether a contract is or contains a lease at inception of the contract. Our operating leases are included in right of use assets and lease liabilities in our consolidated balance sheets. We do not have any material financing leases.
Right of use assets represent our right to use an underlying asset during the lease term and lease liabilities represent our obligation to make lease payments. Right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of the total lease payments contracted but not yet paid, including lease incentives not yet received, with the right of use assets further adjusted for any prepaid or accrued lease payments, lease incentives received and/or initial direct costs incurred.
We have lease agreements that include both lease components (e.g., fixed rent) and non-lease components (e.g., common area maintenance). For such leases, we account for the lease and non-lease components as a single component. Certain lease arrangements also include variable payments for costs such as common-area maintenance, utilities, taxes or other operating costs, which are based on a percentage of actual expenses incurred or a fluctuating rate which is unknown at the inception of the contract. These variable lease payments are excluded from the measurement of the right of use assets and lease liabilities.
Our leases have remaining lease terms ranging from less than one year to eight years, most of which include one or more options to extend the lease term. The renewal options can generally extend the lease term for up to an additional three to ten years. When determining if a renewal option is reasonably certain of being exercised at lease commencement, we consider several factors, including but not limited to, contract-based, asset-based and entity-based factors. We reassess the term of existing leases if there is a significant event or change in circumstances within our control that affects whether we are reasonably certain to exercise an option to extend a lease. Examples of such events or changes include construction of significant leasehold improvements or other modifications or customizations to the underlying asset, relevant business decisions or subleases. As of December 31, 2024, we have concluded that our renewal options are not reasonably certain of being exercised, therefore, renewal options are not included in the right of use assets and lease liabilities.
As our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We apply a portfolio approach for determining the incremental borrowing rate based on the applicable lease terms and the current economic environment.
We recognize lease expense for operating leases on a straight-line basis over the lease term. Variable lease payments are generally recognized when incurred. For leases with an initial term of 12 months or less, we recognize the associated lease payments in the consolidated statements of operations on a straight-line basis over the lease term. These expenses are included in general and administrative expenses in the consolidated statements of operations.
Recoverability of Goodwill
Recoverability of Goodwill
Goodwill is measured as the excess of consideration transferred for an acquired business over the net of the acquisition date fair values of the assets acquired and the liabilities assumed, and is not amortized. We assess the impairment of goodwill at the reporting unit level on an annual basis, in our fourth quarter, or whenever events or changes in circumstances indicate that goodwill may be impaired. In our evaluation of goodwill, we initially perform a qualitative assessment to determine whether the existence of events or circumstances indicates that it is more likely than not that the carrying value of each reporting unit is greater than its fair value. If it is more likely than not that the carrying value of a reporting unit is greater than its fair value, we perform a quantitative assessment and an impairment charge is recorded in our statements of operations if the carrying value of the reporting unit exceeds its fair value.
Beginning in 2023, our chief operating decision maker (“CODM”), who is our chief executive officer (“CEO”), began managing our business, making operating decisions and evaluating operating performance on the basis of the company as a whole, instead of on a segment basis as he did prior to 2023. This aligns to our ongoing growth strategy and our intent to provide integrated customer solutions for all tasks and services related to facilitating real estate transactions. This resulted in revisions to the nature and substance of information regularly provided to and used by the CODM. Accordingly, in 2023, we realigned our operating structure, resulting in a single operating and reportable segment. In line with this, the nature and substance of the information regularly provided to our segment management similarly changed, and we determined that we had only one reporting unit. Because the segment change impacted the structure of our reporting units, we performed a qualitative goodwill impairment assessment immediately before and immediately after the change in reporting units. Based on those assessments, we determined it was more likely than not that the fair value of our current and legacy reporting units exceeded their respective carrying values. Therefore, we concluded that it was not necessary to perform a quantitative impairment test.
Intangible Assets/Recoverability of Intangible Assets with Definite Lives and Other Long-Lived Assets
Intangible Assets
We purchase and license data content from multiple data providers. This data content consists of United States county data about home details and other information relating to the purchase price of homes, both current and historical, as well as imagery, mapping and parcel data that is displayed on our mobile applications and websites. In some instances, we retain perpetual rights to this information after our contract with a vendor ends; in other instances, the information and data are licensed only during the fixed term of the agreement. Additionally, certain data license agreements provide for uneven payment amounts throughout the contract term.
We capitalize payments made to third parties for data licenses that we expect to recover through generation of revenue and margins. For data license contracts that include uneven payment amounts, we capitalize the payments as they are made as an intangible asset and the total contract value is typically amortized on a straight-line basis over the term of the contract, which is equivalent to the estimated useful life of the asset. The amortization period for the capitalized purchased content is based on our best estimate of the useful life of the asset, which ranges from three to seven years.
Under certain other data agreements, the underlying data is obtained on a subscription basis with consistent monthly or quarterly recurring payment terms over the contractual period. Upon the expiration of such arrangements, we no longer have the right to access the related data, and therefore, the costs incurred under such contracts are not capitalized and are expensed as payments are made.
We also capitalize costs related to the license of certain internal-use software from third parties, including certain licenses of software in cloud computing arrangements. Additionally, we capitalize costs incurred during the application development stage related to the development of internal-use software and enterprise cloud computing services. We expense costs as incurred related to the planning and post-implementation phases of development. Capitalized internal-use software costs are amortized on a straight-line basis over the estimated useful life of the asset, which is currently one to five years.
Intangibles-in-progress consist of purchased content and software that are capitalizable but have not been placed in service.
We also have intangible assets for developed technology, customer relationships, and trade names and trademarks which we recorded in connection with acquisitions. Purchased intangible assets with a determinable economic life are carried at cost less accumulated amortization. These intangible assets are amortized over the estimated useful life of the asset on a straight-line basis.
For each of the intangible assets described above, we have removed fully amortized assets from the cost and accumulated amortization amounts disclosed.
Recoverability of Intangible Assets with Definite Lives and Other Long-Lived Assets
We evaluate intangible assets and other long-lived assets, including our lease right of use assets, for impairment whenever events or circumstances indicate that they may not be recoverable. Recoverability is measured by comparing the carrying amount of an asset group to future undiscounted net cash flows expected to be generated. We group assets for purposes of such review at the lowest level for which identifiable cash flows of the asset group are largely independent of the cash flows of the other groups of assets and liabilities. If this comparison indicates impairment, the amount of impairment to be recognized is calculated as the difference between the carrying value and the fair value of the asset group.
Business Combinations
Business Combinations
We recognize identifiable assets acquired and liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions for the preliminary purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill to the extent that we identify adjustments to the preliminary purchase price allocation. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of operations. We recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined.
We record contingent consideration at its preliminary estimated fair value at the date of acquisition. The current portion of contingent consideration is recorded within accrued expenses and other current liabilities, and the long-term portion is recorded within other long-term liabilities in our consolidated balance sheets. The fair value of contingent consideration is remeasured each reporting period. Measurement period adjustments, if any, to the preliminary estimated fair value as of the acquisition date are recorded to goodwill during the measurement period, which may be up to one year from the acquisition date. Changes in fair value as a result of updated assumptions after the acquisition date are recorded in general and administrative expenses in the consolidated statements of operations.
Technology and Development
Technology and Development. Technology and development expenses consist of headcount-related expenses, including salaries, benefits, bonuses and share-based compensation expense for individuals engaged in the design, development and testing of our products, mobile applications and websites and the tools and applications that support our products. Technology and development expenses also include equipment and software maintenance costs and depreciation expense.
Research and development costs are expensed as incurred and are recorded in technology and development expenses.
Share-Based Compensation
Share-Based Compensation. We measure compensation expense for all share-based awards at fair value on the date of grant and recognize compensation expense over the service period on a straight-line basis for awards expected to vest.
We use the Black-Scholes-Merton option-pricing model to determine the fair value for option awards. In valuing our option awards, we make assumptions about risk-free interest rates, dividend yields, volatility and weighted-average expected lives. We account for forfeitures as they occur. Risk-free interest rates are derived from U.S. Treasury securities as of the option award grant date. Expected dividend yield is based on our historical cash dividend payments, which have been zero to date. The expected volatility for our Class C capital stock is estimated using our historical volatility. The weighted-average expected life of the option awards is estimated based on our historical exercise data.
When determining the grant date fair value of share-based awards, management considers whether an adjustment is required to the observable market price or volatility of the Company’s Class C capital stock used in the valuation as a result of material non-public information.
For issuances of restricted stock units, we determine the fair value of the award based on the market value of our Class C capital stock, as applicable, at the date of grant.
Impairment and Restructuring Costs
Impairment and Restructuring Costs. From time to time, we record impairment costs within impairment and restructuring costs in our consolidated statements of operations. See Note 9 for additional information on the impairment costs recorded during the year ended December 31, 2024.
The main components of our restructuring costs recorded within impairment and restructuring costs in our consolidated statements of operations relate to employee termination costs, contract termination costs, and charges attributable to the wind down of Zillow Offers operations and additional cost actions to streamline our operations and prioritize investments. One-time employee termination benefits are recognized when the plan of termination has been communicated to employees and certain other criteria are met. Other severance and employee costs, primarily pertaining to ongoing employee benefit arrangements, are recognized when it is probable that the employees are entitled to the severance benefits and the amounts can be reasonably estimated. Contract termination costs are recognized when a contract is terminated in accordance with its terms or at the cease-use date. Asset write-offs are recognized upon their cease-use date. The cumulative effect of a change resulting from a revision to either the timing or the amount of estimated cash flows for restructuring is recognized as an adjustment to the liability in the period of the change.
Income Taxes
Income Taxes
We use the asset and liability approach for accounting and reporting income taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax bases of assets and liabilities at the applicable enacted tax rates. A valuation allowance against deferred tax assets would be established if, based on the weight of available evidence, it is more likely than not (a likelihood of more than 50%) that some or all of the deferred tax assets are not expected to be realized.
We establish reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. We adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit, new tax legislation or the change of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. Interest and penalties related to unrecognized tax benefits are recorded as income tax expense.
Recently Adopted Accounting Standards And Recently Issued Accounting Standards Not Yet Adopted
Recently Adopted Accounting Standards
In November 2023, the FASB issued guidance to improve existing disclosure requirements for segment reporting, primarily through enhanced disclosures about significant segment expenses and new disclosure requirements applicable to entities with a single reportable segment. We adopted this guidance on a retrospective basis for the annual period ended December 31, 2024. Refer to Note 19 for additional information related to our segment information disclosures.
Recently Issued Accounting Standards Not Yet Adopted
In December 2023, the FASB issued guidance to enhance the income tax rate reconciliation disclosure requirements and to provide clarity on disclosure requirements for income taxes. This guidance is effective for annual periods beginning after December 15, 2024, and can be applied on a prospective or retrospective basis, with early adoption permitted. We expect to adopt this guidance for the annual period ending December 31, 2025. While we anticipate this guidance will result in additional disclosures related to income taxes, we do not expect this new guidance to have a material impact on our consolidated financial statements.
In November 2024, the FASB issued guidance that will require disclosure of specified information about certain costs and expenses included within an entity’s consolidated financial statements. This guidance is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, and can be applied on a prospective or retrospective basis, with early adoption permitted. We have not yet determined the impact the adoption of this guidance will have on our consolidated financial statements.
Fair Value Measurements
We apply fair value measurements on a recurring and, as otherwise required, on a nonrecurring basis. Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The standards also establish a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value:

Level 1 — Quoted prices in active markets for identical assets or liabilities.
Level 2 — Assets and liabilities valued based on observable market data for similar instruments, such as quoted prices for similar assets or liabilities.
Level 3 — Unobservable inputs that are supported by little or no market activity; instruments valued based on the best available data, some of which is internally developed, and considers risk premiums that a market participant would require.
We apply the following methods and assumptions in estimating our fair value measurements:
Cash equivalents — The fair value measurement of money market funds is based on quoted market prices in active markets (Level 1). The fair value measurement of other cash equivalents is based on observable market-based inputs principally derived from or corroborated by observable market data (Level 2).
Short-term investments — The fair value measurement of our short-term investments is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means (Level 2).
Restricted cash — The carrying value of restricted cash approximates fair value due to the short period of time that amounts are held in escrow (Level 1).
Mortgage loans held for sale — The fair value of mortgage loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics (Level 2).
Forward contracts — The fair value of mandatory loan sales commitments and derivative instruments such as forward sales of MBSs that are utilized as economic hedging instruments is calculated by reference to quoted prices for similar assets (Level 2).
Contingent consideration — In December 2023, Zillow Group acquired Follow Up Boss for $399 million in cash, net of cash acquired, and contingent consideration of up to $100 million, payable over a three-year period upon achievement of certain performance metrics. The fair value of the contingent consideration is estimated using a Monte Carlo simulation which considers the probabilities of the achievement of certain performance metrics (Level 3).
The discount rates used in our valuation of contingent consideration are based on our estimated cost of debt and are directly related to the fair value of contingent consideration. An increase in the discount rate, in isolation, would result in a decrease in the fair value measurement. Conversely, a decrease in the discount rate, in isolation, would result in an increase in the fair value measurement. The probabilities of achieving the relevant performance metrics used in our valuation of contingent consideration are directly related to the fair value of contingent consideration, as an increase in the probability, in isolation, would result in an increase in the fair value measurement. Conversely, a decrease in the probability, in isolation, would result in a decrease in the fair value measurement.
During the year ended December 31, 2024, there were no material changes in the unobservable inputs used in determining the fair value of contingent consideration. See Note 6 for additional details on our contingent consideration.
The following table presents the range and weighted average unobservable inputs used in determining the fair value of contingent consideration as of December 31, 2024:
Discount Rate
Probability of Achieving Performance Metrics
Range
5.70% - 5.87%
92% - 100%
Weighted average
5.81%96%
IRLCs — The fair value of IRLCs is calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics. Expired commitments are excluded from the fair value measurement. Since not all IRLCs will become closed loans, we adjust our fair value measurements for the estimated amount of IRLCs that will not close. This adjustment is effected through the pull-through rate, which represents the probability that an IRLC will ultimately result in a closed loan. For IRLCs that are cancelled or expire, any recorded gain or loss is reversed at the end of the commitment period (Level 3).
The pull-through rate is based on estimated changes in market conditions, loan stage and historical borrower behavior. Pull-through rates are directly related to the fair value of IRLCs as an increase in the pull-through rate, in isolation, would result in an increase in the fair value measurement. Conversely, a decrease in the pull-through rate, in isolation, would result in a decrease in the fair value measurement. Changes in the fair value of IRLCs are included within revenue in our consolidated
statements of operations.
v3.25.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Schedule of Property, Plan and Equipment, Useful Life
Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. The useful lives are as follows:
 
Computer equipment  
3 years
Office equipment, furniture and fixtures  
5 to 7 years
Leasehold improvements  Shorter of expected useful life or lease term
Maintenance and repair costs are charged to expense as incurred. Major improvements, which extend the useful life of the related asset, are capitalized. Upon disposal of a fixed asset, we record a gain or loss based on the difference between the proceeds received and the net book value of the disposed asset. We remove fully depreciated property and equipment from the cost and accumulated depreciation amounts disclosed.
v3.25.0.1
Discontinued Operations (Tables)
12 Months Ended
Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Disposal Groups, Including Discontinued Operations
The following table presents the major classes of line items of the discontinued operations included in the consolidated statements of operations for the year ended December 31, 2022 (in millions):
Revenue$4,249 
Cost of revenue4,023 
Gross profit
226 
Operating expenses:
Sales and marketing153 
Technology and development
General and administrative10 
Impairment and restructuring costs25 
Total operating expenses194 
Income from discontinued operations
32 
Loss on extinguishment of debt(21)
Other income, net13 
Interest expense(36)
Loss from discontinued operations before income taxes
(12)
Income tax expense
(1)
Net loss from discontinued operations
$(13)
Net loss from discontinued operations per share - basic and diluted
$(0.05)
The following table presents significant non-cash items and capital expenditures of the discontinued operations for the year ended December 31, 2022 (in millions):
Amortization of debt discount and debt issuance costs$21 
Loss on debt extinguishment21 
Share-based compensation16 
Inventory valuation adjustment
Depreciation and amortization
Capital expenditures
Settlement of beneficial interests in securitizations
(79)
v3.25.0.1
Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Measurement Inputs and Valuation Techniques
The following table presents the range and weighted average unobservable inputs used in determining the fair value of contingent consideration as of December 31, 2024:
Discount Rate
Probability of Achieving Performance Metrics
Range
5.70% - 5.87%
92% - 100%
Weighted average
5.81%96%
The following table presents the range and weighted-average pull-through rates used in determining the fair value of IRLCs as of the dates presented:
December 31, 2024December 31, 2023
Range
47% - 100%
45% - 100%
Weighted average82%85%
Schedule of Notional Amounts
The following table presents the notional amounts of the economic hedging instruments related to our mortgage loans held for sale as of the dates presented (in millions):
December 31,
20242023
IRLCs
$217 $167 
Forward contracts(1)
$300 $218 
(1) Represents net notional amounts. We do not have the right to offset our forward contract derivative positions.
Schedule of Balances of Cash Equivalents and Investments
The following table presents the amortized cost, as applicable, and estimated fair market value of assets and liabilities measured at fair value on a recurring basis by category as of the dates presented (in millions):
 December 31, 2024December 31, 2023
 Amortized
Cost
Estimated
Fair Market
Value
Amortized
Cost
Estimated
Fair Market
Value
Assets
Cash$13 $13 $50 $50 
Cash equivalents:
Money market funds993 993 1,440 1,440 
U.S. government treasury securities75 75 
Commercial paper— — 
Short-term investments:
U.S. government treasury securities(1)
594 591 1,149 1,143 
Corporate bonds
175 176 160 161 
U.S. government agency securities14 14 
Commercial paper— — 
Mortgage origination-related:
Mortgage loans held for sale— 159 — 100 
IRLCs - other current assets— — 
Forward contracts - other current assets— — — 
Restricted cash
Total assets measured at fair value on a recurring basis
$1,863 $2,025 $2,818 $2,916 
Liabilities
Mortgage origination-related:
Forward contracts - accrued expenses and other current liabilities$— $— $— $
Contingent consideration:
Contingent consideration - accrued expenses and other current liabilities— 33 — 30 
Contingent consideration - other long-term liabilities— 58 — 51 
Total liabilities measured at fair value on a recurring basis
$— $91 $— $82 
(1) The estimated fair market value includes $3 million and $6 million of gross unrealized losses as of December 31, 2024 and December 31, 2023, respectively.
Schedule of Debt Securities, Available-for-sale
The following table presents available-for-sale investments by contractual maturity date as of December 31, 2024 (in millions):
Amortized CostEstimated Fair
Market Value
Due in one year or less$336 $336 
Due after one year 442 440 
Total $778 $776 
v3.25.0.1
Property and Equipment, Net (Tables)
12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
The following table presents the detail of property and equipment as of the dates presented (in millions):
December 31,
20242023
Website development costs$564 $452 
Leasehold improvements45 48 
Computer equipment18 19 
Office equipment, furniture and fixtures16 20 
Property and equipment643 539 
Less: accumulated amortization and depreciation(283)(211)
Property and equipment, net$360 $328 
v3.25.0.1
Acquisitions (Tables)
12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Schedule of Preliminary Purchase Price
The total purchase price has been allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their estimated fair values at the acquisition date, as follows (in millions):
Purchase price:
Cash
$403 
Contingent consideration
81 
Total purchase price
$484 
Identifiable assets acquired and liabilities assumed:
Cash and cash equivalents$
Goodwill
402 
Intangible assets
86 
Deferred revenue
(7)
Other liabilities
(1)
Total purchase price
$484 
The total purchase prices have been allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their respective fair values at the acquisition date, as follows (in millions):
Aryeo
Spruce
Cash and cash equivalents$$
Goodwill
26 16 
Intangible assets
11 
Other assets
— 
Liabilities
(2)(1)
Total purchase price
$38 $24 
Schedule of Preliminary Estimated Fair Value and Useful Lives
The estimated fair value of the identifiable intangible assets acquired and associated useful lives consisted of the following (in millions):
Estimated Fair Value
Estimated Weighted-Average Useful Life (in years)
Developed technology
$50 4
Customer relationships
34 7
Trade names and trademarks
7
Total$86 
The estimated fair value of the identifiable intangible assets acquired and associated useful lives consisted of the following (in millions):
Aryeo
Spruce
Estimated Fair Value
Estimated Useful Life (in years)
Estimated Fair Value
Estimated Useful Life (in years)
Customer relationships$5$— 
Purchased content
3— 
Developed technology
33
Total$11 $
v3.25.0.1
Intangible Assets, Net (Tables)
12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets
The following tables present the detail of intangible assets as of the dates presented (in millions):
 December 31, 2024
 CostAccumulated
Amortization
Net
Customer relationships$94 $(29)$65 
Software
101 (39)62 
Developed technology
102 (51)51 
Trade names and trademarks47 (25)22 
Purchased content
22 (15)
Total$366 $(159)$207 

 December 31, 2023
 CostAccumulated
Amortization
Net
Customer relationships$98 $(19)$79 
Developed technology104 (30)74 
Software84 (29)55 
Trade names and trademarks47 (20)27 
Purchased content17 (11)
Total$350 $(109)$241 
Schedule of Estimated Future Amortization Expense for Intangible Assets
Estimated future amortization expense for intangible assets, including amortization related to future commitments (see Note 15), as of December 31, 2024 is as follows (in millions):
2025$71 
202654 
202743 
202820 
2029
14 
Thereafter14 
Total future amortization expense$216 
v3.25.0.1
Accrued Expenses and Other Current Liabilities (Tables)
12 Months Ended
Dec. 31, 2024
Payables and Accruals [Abstract]  
Summary of Accrued Expenses and Other Current Liabilities
The following table presents the detail of accrued expenses and other current liabilities as of the dates presented (in millions):
December 31,
20242023
Contingent consideration for acquisition, current portion
$33 $30 
Other accrued expenses and other current liabilities72 77 
Total accrued expenses and other current liabilities$105 $107 
v3.25.0.1
Leases (Tables)
12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Components of Lease Expense
The components of our operating lease expense were as follows for the periods presented (in millions):
Year Ended December 31,
202420232022
Operating lease cost$22 $35 $36 
Variable lease cost13 18 18 
     Total lease cost$35 $53 $54 
Other information related to operating leases was as follows for the periods presented (in millions, except for years and percentages):
Year Ended December 31,
2024
2023(1)
2022
Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives of $—, $— and $9 for the years ended December 31, 2024, 2023 and 2022, respectively
$46 $42 $34 
Right of use assets obtained in exchange for new operating lease obligations$$(8)$19 
Weighted average remaining lease term for operating leases6 years6 years7 years
Weighted average discount rate for operating leases9.5 %9.4 %8.2 %
(1) During the year ended December 31, 2023, we amended our existing office space lease for our corporate headquarters in Seattle, Washington, to provide the landlord the option to terminate a portion of our lease prior to the original lease termination date. In December 2023, the landlord exercised the early termination option for the relevant floors effective June 30, 2024. This modification to the lease term resulted in an immediate reduction in the right of use asset and lease liability of $8 million. We ceased use of the terminated space as of December 31, 2023, and as a result, we accelerated recognition of $14 million of amortization for the related right of use asset during the year ended December 31, 2023.
Schedule of Maturities for Operating Lease Liabilities
The following table presents the scheduled maturities of our operating lease liabilities by year as of December 31, 2024 (in millions):
2025$22 
202622 
202721 
2028
19 
2029
18 
Thereafter29 
     Total lease payments131 
Less: Imputed interest(34)
     Present value of lease liabilities$97 
v3.25.0.1
Debt (Tables)
12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Carrying Value of Debt
The following table presents the carrying values of Zillow Group’s debt as of the dates presented (in millions):
December 31,
20242023
   Master repurchase agreements:
UBS AG(1)
$73 $45 
JPMorgan Chase Bank, N.A.(2)
72 40 
Atlas Securitized Products, L.P.(3)
— 
Total borrowings under credit facilities
145 93 
Convertible senior notes
2026 Notes(4)
— 496 
2025 Notes
418 504 
2024 Notes(5)
— 607 
Total convertible senior notes418 1,607 
Total debt$563 $1,700 
(1) Agreement was amended and renewed on September 6, 2024, increasing the total maximum borrowing capacity from $100 million to $150 million.
(2) Agreement was amended and renewed on May 2, 2024, increasing the total maximum borrowing capacity from $100 million to $150 million.
(3) Agreement expired on March 11, 2024 and was not renewed.
(4) The 2026 Notes were settled on December 18, 2024 and are no longer outstanding.
(5) The 2024 Notes matured on September 1, 2024 and are no longer outstanding.
Schedule of Credit Facilities The following table summarizes certain details related to our master repurchase agreements as of December 31, 2024 (in millions, except interest rates):
LenderMaturity DateMaximum Borrowing Capacity
Borrowings Outstanding
Available
Borrowing Capacity
Weighted Average Interest Rate
UBS AGSeptember 5, 2025$150 $73 $77 6.07 %
JPMorgan Chase Bank, N.AMay 1, 2025150 72 78 6.14 %
Total$300 $145 $155 
The following table summarizes certain details related to our master repurchase agreements as of December 31, 2023 (in millions, except interest rates):
LenderMaturity DateMaximum Borrowing Capacity
Borrowings Outstanding
Available
Borrowing Capacity
Weighted Average Interest Rate
UBS AG
October 9, 2024$100 $45 $55 7.08 %
JPMorgan Chase Bank, N.A.
May 30, 2024100 40 60 7.05 %
Atlas Securitized Products, L.P.
March 11, 202450 42 7.37 %
Total$250 $93 $157 
Schedule of Convertible Senior Notes
The following tables summarize certain details related to our Notes as of the dates presented or for the periods ended (in millions, except interest rates):
December 31, 2024December 31, 2023
Maturity DateAggregate Principal AmountStated Interest RateEffective Interest RateFirst Interest Payment DateSemi-Annual Interest Payment DatesUnamortized Debt Issuance CostsFair ValueUnamortized Debt Issuance CostsFair Value
September 1, 2026$— 1.375 %1.57 %March 1, 2020March 1; September 1$— $— $$681 
May 15, 2025419 2.75 %3.20 %November 15, 2020May 15; November 15486 560 
September 1, 2024— 0.75 %1.02 %March 1, 2020March 1; September 1— — 825 
Total$419 $$486 $$2,066 
Year Ended December 31, 2024Year Ended December 31, 2023Year Ended December 31, 2022
Contractual Coupon InterestAmortization of Debt Issuance CostsInterest ExpenseContractual Coupon InterestAmortization of Debt Issuance CostsInterest ExpenseContractual Coupon InterestAmortization of Debt Issuance CostsInterest Expense
2026 Notes$$$$$$$$— $
2025 Notes12 14 16 18 16 19 
2024 Notes
Total$22 $$26 $28 $$33 $27 $$32 
Maturity DateEarly Conversion DateConversion RateConversion PriceOptional Redemption Date
May 15, 2025November 15, 202414.8810$67.20 May 22, 2023
The following table summarizes certain details related to our outstanding capped call transactions as of December 31, 2024:
Maturity DateInitial Cap PriceCap Price Premium
September 1, 2026$80.5750 150 %
v3.25.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax (Benefit) Expense
The following table presents the components of our income tax expense for the periods presented (in millions):
 Year Ended December 31,
 202420232022
Current income tax expense:
State$$$
Foreign— 
Total current income tax expense
Deferred income tax expense:
Federal— — 
Total deferred income tax expense
— — 
Total income tax expense
$$$
Schedule of Reconciliation of Federal Statutory Rate and Effective Tax Rate
The following table presents a reconciliation of the federal statutory rate and our effective tax rate for the periods presented:
 Year Ended December 31,
 202420232022
Tax expense at federal statutory rate(21.0)%(21.0)%(21.0)%
State income taxes, net of federal tax benefit(11.1)2.6 6.2 
Meals and entertainment
1.6 0.1 0.7 
Share-based compensation5.3 10.4 13.2 
Non-deductible executive compensation16.9 10.8 14.3 
Research and development credits(36.3)(6.8)(25.7)
Other, net
1.9 (8.3)7.5 
Valuation allowance46.7 15.0 7.4 
Effective tax rate4.0 %2.8 %2.6 %
Schedule of Deferred Tax Assets and Liabilities The following table presents the significant components of our deferred tax assets and liabilities as of the dates presented (in millions):
 December 31,
 20242023
Deferred tax assets:
Federal and state net operating loss carryforwards$345 $354 
Capitalized research and development
247 208 
Research and development credits206 166 
Share-based compensation110 124 
Lease liabilities
24 33 
Debt discount on convertible notes— 11 
Accruals and reserves
Other deferred tax assets
Total deferred tax assets943 904 
Deferred tax liabilities:
Right of use assets(14)(18)
Intangible assets(5)(13)
Goodwill(13)(6)
Other deferred tax liabilities
(1)(5)
Total deferred tax liabilities(33)(42)
Net deferred tax assets before valuation allowance910 862 
Less: valuation allowance(914)(865)
Net deferred tax liabilities $(4)$(3)
Schedule of Changes in Unrecognized Tax Benefits
Changes for unrecognized tax benefits for the periods presented are as follows (in millions):
Balance at January 1, 2022
$75 
Gross increases—current period tax positions17 
Gross increases—prior period tax positions
Gross decreases—prior period tax positions(6)
Balance at December 31, 2022
$90 
Gross increases—current period tax positions
Gross increases—prior period tax positions
Gross decreases—prior period tax positions
(7)
Balance at December 31, 2023
$95 
Gross increases—current period tax positions16 
Gross increases—prior period tax positions
Gross decreases—prior period tax positions(1)
Gross decreases—statute of limitations lapse
(1)
Balance at December 31, 2024
$115 
v3.25.0.1
Shareholders' Equity (Tables)
12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Schedule of Stock Repurchase Program
The following table summarizes our Class A common stock and Class C capital stock repurchase activity under the Repurchase Authorizations for the periods presented (in millions, except share data, which are presented in thousands, and per share amounts):
 Year Ended December 31,
20242023
Class A common stockClass C capital stock
Class A common stock
Class C capital stock
Shares repurchased1,100 5,996 2,212 7,311 
Weighted-average price per share$42.26 $42.45 $46.45 $43.94 
Total purchase price$46 $255 $103 $321 
v3.25.0.1
Share-Based Awards (Tables)
12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Option Award Activity
The following table summarizes option award activity for the year ended December 31, 2024:
Number
of Shares
Subject to
Existing
Options (in thousands)
Weighted-
Average
Exercise
Price Per
Share
Weighted-
Average
Remaining
Contractual
Life (in years)
Aggregate
Intrinsic
Value
(in millions)
Outstanding at January 1, 202432,524 $44.18 6.9$495 
Granted3,551 56.11 
Exercised(5,474)38.69 
Forfeited or cancelled(660)44.76 
Outstanding at December 31, 202429,941 46.58 6.3861 
Vested and exercisable at December 31, 202421,139 46.01 5.5629 
Schedule of Fair Value of Options Granted, Estimated at Date of Grant Using Black Scholes Merton Option Pricing Model
The following assumptions were used to determine the fair value of option awards granted for the periods presented:
Year Ended December 31,
202420232022
Expected volatility
57% – 61%
55% – 62%
55% – 61%
Risk-free interest rate
3.74% – 4.5%
3.75% – 4.36%
1.94% – 3.95%
Weighted-average expected life
5.5 – 6.8 years
5.3 – 6.5 years
4.5– 6.0 years
Weighted-average fair value of options granted$32.22$24.43$23.25
Schedule of Restricted Stock Units Activity
The following table summarizes activity for all restricted stock units for the year ended December 31, 2024:
Restricted
Stock Units (in thousands)
Weighted-
Average Grant-
Date Fair
Value
Unvested outstanding at January 1, 202412,038 $45.42 
Granted7,282 56.14 
Vested(6,436)48.10 
Forfeited(1,155)48.48 
Unvested outstanding at December 31, 202411,729 50.31 
Schedule of Effects of Share Based Compensation in Consolidated Statements of Operations
The following table presents the effects of share-based compensation expense in our consolidated statements of operations during the periods presented (in millions):
Year Ended December 31,
202420232022
Cost of revenue$14 $16 $16 
Sales and marketing77 70 63 
Technology and development165 166 165 
General and administrative192 199 189 
Impairment and restructuring costs— — 
Share-based compensation - continuing operations
448 451 435 
Share-based compensation - discontinued operations
— — 16 
Total share-based compensation$448 $451 $451 
v3.25.0.1
Net Loss Per Share (Tables)
12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
For the periods presented, the following Class C capital stock equivalents were excluded from the calculations of diluted net loss per share and diluted net loss from continuing operations per share because their effect would have been antidilutive (in thousands):
Year Ended December 31,
202420232022
Weighted-average Class C capital stock option awards outstanding
31,276 21,021 15,759 
Weighted-average Class C capital stock restricted stock units outstanding
13,362 13,581 9,015 
Class C capital stock issuable upon conversion of the Notes
27,089 33,718 33,855 
Total Class C capital stock equivalents
71,727 68,320 58,629 
v3.25.0.1
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Non-cancelable Purchase Commitments The amounts due for non-cancelable purchase commitments as
of December 31, 2024 are as follows (in millions):
Purchase Obligations
2025$112 
202680 
202764 
2028
Total future purchase commitments$257 
v3.25.0.1
Revenue and Contract Balances (Tables)
12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table presents our revenue disaggregated by category for the periods presented (in millions):
 Year Ended December 31,
202420232022
Revenue:
For Sale revenue:
Residential$1,594 $1,452 $1,522 
Mortgages145 96 119 
Total For Sale revenue
1,739 1,548 1,641 
Rentals
453 357 274 
Other
44 40 43 
Total revenue$2,236 $1,945 $1,958 
v3.25.0.1
Segment Information (Tables)
12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following table presents our significant expense categories included in our reported measure of segment profitability for the periods presented (in millions):
 Year Ended December 31,
202420232022
Revenue$2,236 $1,945 $1,958 
Less:
Headcount-related expenses, excluding share-based compensation1,110 993 906 
Share-based compensation448 451 433 
Depreciation and amortization240 187 150 
Marketing and advertising costs
194 155 165 
Direct product and service costs
184 144 133 
Third-party professional service fees
70 75 75 
Facility expenses28 59 47 
Impairment and restructuring costs
19 24 
Acquisition-related costs
— 
Other items (1)
152 128 118 
Loss from continuing operations(197)(270)(93)
Gain (loss) on extinguishment of debt
(1)— 
Other income, net
127 151 43 
Interest expense
(36)(36)(35)
Income tax expense
(5)(4)(3)
Loss from discontinued operations, net of income taxes— — (13)
Net loss$(112)$(158)$(101)
(1) Other items include software and hardware costs, taxes and insurance costs, and data acquisition costs.
v3.25.0.1
Summary of Significant Accounting Policies (Details)
$ in Millions
12 Months Ended
Dec. 31, 2024
USD ($)
Segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Schedule of Significant Accounting Policies [Line Items]      
Number of reporting units | Segment 1    
Real estate transaction close period 2 years    
Advertising costs $ 175 $ 137 $ 144
Technology and development 585 560 498
Technology and development      
Schedule of Significant Accounting Policies [Line Items]      
Technology and development $ 543 $ 545 $ 495
Minimum      
Schedule of Significant Accounting Policies [Line Items]      
Lessee, operating lease, remaining lease term 1 year    
Option to extend lease 3 years    
Useful life of capitalized purchased content asset 3 years    
Minimum | Computer equipment      
Schedule of Significant Accounting Policies [Line Items]      
Expected useful lives 3 years    
Minimum | Office equipment, furniture and fixtures      
Schedule of Significant Accounting Policies [Line Items]      
Expected useful lives 5 years    
Minimum | Software Development      
Schedule of Significant Accounting Policies [Line Items]      
Expected useful lives 1 year    
Maximum      
Schedule of Significant Accounting Policies [Line Items]      
Lessee, operating lease, remaining lease term 8 years    
Option to extend lease 10 years    
Useful life of capitalized purchased content asset 7 years    
Maximum | Office equipment, furniture and fixtures      
Schedule of Significant Accounting Policies [Line Items]      
Expected useful lives 7 years    
Maximum | Software Development      
Schedule of Significant Accounting Policies [Line Items]      
Expected useful lives 5 years    
v3.25.0.1
Discontinued Operations - Major Line Items Included in Statement of Operations (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disposal Group Operating Expense [Abstract]      
Net loss from discontinued operations $ 0 $ 0 $ (13)
Discontinued Operations, Disposed Of By Means Other Than Sale, Wind Down | Zillow Offers Operations      
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Revenue     4,249
Cost of revenue     4,023
Gross profit     226
Disposal Group Operating Expense [Abstract]      
Sales and marketing     153
Technology and development     6
General and administrative     10
Impairment and restructuring costs     25
Total operating expenses     194
Income from discontinued operations     32
Loss on extinguishment of debt     (21)
Other income, net     13
Interest expense     (36)
Loss from discontinued operations before income taxes     (12)
Income tax expense     (1)
Net loss from discontinued operations     $ (13)
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Share [Abstract]      
Net loss from discontinued operations per share - basic (usd per share)     $ (0.05)
Net loss from discontinued operations per share - diluted (usd per share)     $ (0.05)
v3.25.0.1
Discontinued Operations - Non-Cash Items and Capital Expenditures (Details) - Discontinued Operations, Disposed Of By Means Other Than Sale, Wind Down - Zillow Offers Operations
$ in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Amortization of debt discount and debt issuance costs $ 21
Loss on debt extinguishment 21
Share-based compensation 16
Inventory valuation adjustment 9
Depreciation and amortization 7
Capital expenditures 1
Settlement of beneficial interests in securitizations $ (79)
v3.25.0.1
Discontinued Operations - Narrative (Details)
$ in Millions
12 Months Ended
Dec. 31, 2022
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Restructuring Charges, Statement of Income or Comprehensive Income [Extensible Enumeration] Restructuring Costs and Asset Impairment Charges
Restructuring charges $ 24
Employee Severance  
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Restructuring and related cost, cost incurred to date $ 33
v3.25.0.1
Financial Instruments - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 08, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash paid for acquisition, net   $ 7 $ 433 $ 4
Follow Up Boss        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash paid for acquisition, net $ 399      
Business combination, contingent consideration arrangements, range of outcomes, value, high $ 100      
Business combination, contingent consideration, payment period 3 years      
v3.25.0.1
Financial Instruments - Schedule of Fair Value Measurement Inputs and Valuation Techniques (Details)
Dec. 31, 2024
Dec. 31, 2023
Minimum | IRLCs - other current assets | Not Designated as Hedging Instrument    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Derivative asset, measurement input 0.47 0.45
Minimum | Discount Rate    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.0570  
Minimum | Probability of Achieving Performance Metrics    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.92  
Maximum | IRLCs - other current assets | Not Designated as Hedging Instrument    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Derivative asset, measurement input 1 1
Maximum | Discount Rate    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.0587  
Maximum | Probability of Achieving Performance Metrics    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Business combination, contingent consideration, liability, measurement input 1  
Weighted average | IRLCs - other current assets | Not Designated as Hedging Instrument    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Derivative asset, measurement input 0.82 0.85
Weighted average | Discount Rate    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.0581  
Weighted average | Probability of Achieving Performance Metrics    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.96  
v3.25.0.1
Financial Instruments - Schedule of Notional Amounts (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
IRLCs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative, notional amount $ 217 $ 167
Forward contracts    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative, notional amount $ 300 $ 218
v3.25.0.1
Financial Instruments - Schedule of Balances of Cash Equivalents and Investments (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Cash equivalents:    
Cash and cash equivalents $ 1,082 $ 1,492
Short-term investments:    
Amortized Cost 778  
Estimated Fair Market Value 776  
Mortgage origination-related:    
Mortgage loans held for sale 159 100
Restricted cash 3 3
Total assets measured at fair value on a recurring basis, Amortized cost 1,863 2,818
Total assets measured at fair value on a recurring basis, Fair Value 2,025 2,916
Liabilities    
Contingent consideration - accrued expenses and other current liabilities 33 30
Contingent consideration - other long-term liabilities 58 51
Liabilities measured at fair value 91 82
U.S. government treasury securities    
Short-term investments:    
Amortized Cost 594 1,149
Estimated Fair Market Value 591 1,143
Corporate bonds    
Short-term investments:    
Amortized Cost 175 160
Estimated Fair Market Value 176 161
U.S. government agency securities    
Short-term investments:    
Amortized Cost 7 14
Estimated Fair Market Value 7 14
Liabilities    
Debt securities, available-for-sale, accumulated gross unrealized loss, before tax 3 6
Commercial paper    
Short-term investments:    
Amortized Cost 2 0
Estimated Fair Market Value 2 0
IRLCs - other current assets | Not Designated as Hedging Instrument    
Mortgage origination-related:    
Other current assets 4 3
Forward contracts - other current assets | Not Designated as Hedging Instrument    
Mortgage origination-related:    
Other current assets 1 0
Liabilities    
Forward contracts - accrued expenses and other current liabilities 0 1
Cash    
Cash equivalents:    
Cash and cash equivalents 13 50
Estimated Fair Market Value 13 50
Money market funds    
Cash equivalents:    
Cash and cash equivalents 993 1,440
Estimated Fair Market Value 993 1,440
U.S. government treasury securities    
Cash equivalents:    
Cash and cash equivalents 75 2
Estimated Fair Market Value 75 2
Commercial paper    
Cash equivalents:    
Cash and cash equivalents 1 0
Estimated Fair Market Value $ 1 $ 0
v3.25.0.1
Financial Instruments - Schedule of Debt-securities, Available-for-sale (Details)
$ in Millions
Dec. 31, 2024
USD ($)
Amortized Cost  
Due in one year or less $ 336
Due after one year 442
Amortized Cost 778
Estimated Fair Market Value  
Due in one year or less 336
Due after one year 440
Estimated Fair Market Value $ 776
v3.25.0.1
Property and Equipment, Net - Schedule of Property and Equipment (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Property and equipment $ 643 $ 539
Less: accumulated amortization and depreciation (283) (211)
Property and equipment, net 360 328
Website development costs    
Property, Plant and Equipment [Line Items]    
Property and equipment 564 452
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment 45 48
Computer equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment 18 19
Office equipment, furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment $ 16 $ 20
v3.25.0.1
Property and Equipment, Net - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Amortization and depreciation expense related to property and equipment other than website development costs $ 15 $ 24 $ 25
Capitalization of website development costs 196 191 143
Amortization of website development costs and intangible assets included in technology and development 77 53 58
Software Development      
Property, Plant and Equipment [Line Items]      
Amortization of website development costs and intangible assets included in technology and development $ 148 $ 110 $ 67
v3.25.0.1
Acquisitions - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 08, 2023
Sep. 11, 2023
Jul. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]            
Cash paid for acquisition, net       $ 7 $ 433 $ 4
Follow Up Boss            
Schedule of Equity Method Investments [Line Items]            
Cash paid for acquisition, net $ 399          
Business combination, contingent consideration arrangements, range of outcomes, value, high $ 100          
Business combination, contingent consideration, payment period 3 years          
Business combination, consideration transferred $ 484          
Aryeo            
Schedule of Equity Method Investments [Line Items]            
Cash paid for acquisition, net     $ 15      
Business acquisition, equity interest issued or issuable, number of shares (in shares)     380,259      
Business combination, consideration transferred, equity interests issued and issuable     $ 20      
Business combination, consideration transferred     $ 35      
Spruce            
Schedule of Equity Method Investments [Line Items]            
Cash paid for acquisition, net   $ 19        
v3.25.0.1
Acquisitions - Schedule of Preliminary Purchase Price (Details) - USD ($)
$ in Millions
Dec. 08, 2023
Jul. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Sep. 11, 2023
Identifiable assets acquired and liabilities assumed:          
Goodwill     $ 2,823 $ 2,817  
Follow Up Boss          
Purchase price:          
Cash $ 403        
Contingent consideration 81        
Total purchase price 484        
Identifiable assets acquired and liabilities assumed:          
Cash and cash equivalents 4        
Goodwill 402        
Intangible assets 86        
Deferred revenue (7)        
Other liabilities (1)        
Total purchase price $ 484        
Aryeo          
Purchase price:          
Total purchase price   $ 35      
Identifiable assets acquired and liabilities assumed:          
Cash and cash equivalents   3      
Goodwill   26      
Intangible assets   11      
Other assets   0      
Liabilities   (2)      
Total purchase price   $ 38      
Spruce          
Identifiable assets acquired and liabilities assumed:          
Cash and cash equivalents         $ 5
Goodwill         16
Intangible assets         2
Other assets         2
Liabilities         (1)
Total purchase price         $ 24
v3.25.0.1
Acquisitions - Schedule of Preliminary Estimated Fair Value and Useful Lives (Details) - USD ($)
$ in Millions
Dec. 08, 2023
Sep. 11, 2023
Jul. 31, 2023
Follow Up Boss      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Estimated Fair Value $ 86    
Follow Up Boss | Developed technology      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Estimated Fair Value $ 50    
Estimated Weighted-Average Useful Life (in years) 4 years    
Follow Up Boss | Customer relationships      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Estimated Fair Value $ 34    
Estimated Weighted-Average Useful Life (in years) 7 years    
Follow Up Boss | Trade names and trademarks      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Estimated Fair Value $ 2    
Estimated Weighted-Average Useful Life (in years) 7 years    
Aryeo      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Estimated Fair Value     $ 11
Aryeo | Developed technology      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Estimated Fair Value     $ 2
Estimated Weighted-Average Useful Life (in years)     3 years
Aryeo | Customer relationships      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Estimated Fair Value     $ 5
Estimated Weighted-Average Useful Life (in years)     5 years
Aryeo | Purchased content      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Estimated Fair Value     $ 4
Estimated Weighted-Average Useful Life (in years)     3 years
Spruce      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Estimated Fair Value   $ 2  
Spruce | Developed technology      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Estimated Fair Value   $ 2  
Estimated Weighted-Average Useful Life (in years)   3 years  
v3.25.0.1
Intangible Assets, Net - Schedule of Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Cost $ 366 $ 350
Accumulated Amortization (159) (109)
Net 207 241
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Cost 94 98
Accumulated Amortization (29) (19)
Net 65 79
Software    
Finite-Lived Intangible Assets [Line Items]    
Cost 101 84
Accumulated Amortization (39) (29)
Net 62 55
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Cost 102 104
Accumulated Amortization (51) (30)
Net 51 74
Trade names and trademarks    
Finite-Lived Intangible Assets [Line Items]    
Cost 47 47
Accumulated Amortization (25) (20)
Net 22 27
Purchased content    
Finite-Lived Intangible Assets [Line Items]    
Cost 22 17
Accumulated Amortization (15) (11)
Net $ 7 $ 6
v3.25.0.1
Intangible Assets, Net - Narrative (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization of website development costs and intangible assets included in technology and development $ 77,000,000 $ 53,000,000 $ 58,000,000
Impairment of intangible assets $ 0 $ 0 $ 0
v3.25.0.1
Intangible Assets, Net - Schedule of Estimated Future Amortization Expense for Intangible Assets (Details)
$ in Millions
Dec. 31, 2024
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2025 $ 71
2026 54
2027 43
2028 20
2029 14
Thereafter 14
Total future amortization expense $ 216
v3.25.0.1
Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Accrued Expenses and Other Current Liabilities [Line Items]    
Accrued expenses and other current liabilities $ 105 $ 107
Contingent consideration for acquisition, current portion    
Accrued Expenses and Other Current Liabilities [Line Items]    
Accrued expenses and other current liabilities 33 30
Other accrued expenses and other current liabilities    
Accrued Expenses and Other Current Liabilities [Line Items]    
Accrued expenses and other current liabilities $ 72 $ 77
v3.25.0.1
Leases - Components of Lease Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating lease cost $ 22 $ 35 $ 36
Variable lease cost 13 18 18
Total lease cost $ 35 $ 53 $ 54
v3.25.0.1
Leases - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Sublease income $ 6 $ 10 $ 10
Operating lease, impairment 6 $ 16  
Sublease income to be received 26    
Sublease income to be received, year one 26    
Sublease income to be received, year two 26    
Sublease income to be received, year three 26    
Sublease income to be received, year four 26    
Sublease income to be received, year five and thereafter $ 26    
v3.25.0.1
Leases - Other Information Obtained (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Lessee, Lease, Description [Line Items]      
Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives of $—, $— and $9 for the years ended December 31, 2024, 2023 and 2022, respectively $ 46 $ 42 $ 34
Lease incentive 0 0 9
Right of use assets obtained in exchange for new operating lease obligations $ 2 $ (8) $ 19
Weighted average remaining lease term for operating leases 6 years 6 years 7 years
Weighted average discount rate for operating leases 9.50% 9.40% 8.20%
Decrease in operating lease liabilities $ 35 $ 30 $ 21
Operating lease, right-of-use asset, accelerated amortization   14  
Office Building      
Lessee, Lease, Description [Line Items]      
Decrease in operating lease liabilities   8  
Decrease in right of use asset   $ 8  
v3.25.0.1
Leases - Schedule of Maturities for Operating Lease Liabilities (Details)
$ in Millions
Dec. 31, 2024
USD ($)
Leases [Abstract]  
2025 $ 22
2026 22
2027 21
2028 19
2029 18
Thereafter 29
Total lease payments 131
Less: Imputed interest (34)
Present value of lease liabilities $ 97
v3.25.0.1
Debt - Schedule of Carrying Value of Debt (Details) - USD ($)
Dec. 31, 2024
Sep. 06, 2024
Sep. 05, 2024
May 02, 2024
May 01, 2024
Dec. 31, 2023
Debt Instrument [Line Items]            
Total debt $ 563,000,000         $ 1,700,000,000
Convertible Debt            
Debt Instrument [Line Items]            
Total convertible senior notes 418,000,000         1,607,000,000
2026 Notes | Convertible Debt            
Debt Instrument [Line Items]            
Total convertible senior notes 0         496,000,000
2025 Notes | Convertible Debt            
Debt Instrument [Line Items]            
Total convertible senior notes 418,000,000         504,000,000
2024 Notes | Convertible Debt            
Debt Instrument [Line Items]            
Total convertible senior notes 0         607,000,000
Mortgages Segment            
Debt Instrument [Line Items]            
Total borrowings under credit facilities 145,000,000         93,000,000
Line of Credit            
Debt Instrument [Line Items]            
Total borrowings under credit facilities 145,000,000         93,000,000
Maximum borrowing capacity 300,000,000         250,000,000
UBS AG | Line of Credit            
Debt Instrument [Line Items]            
Total borrowings under credit facilities 73,000,000          
Maximum borrowing capacity 150,000,000 $ 150,000,000 $ 100,000,000     100,000,000
UBS AG | Line of Credit | Mortgages Segment            
Debt Instrument [Line Items]            
Total borrowings under credit facilities 73,000,000         45,000,000
JPMorgan Chase Bank, N.A. | Line of Credit            
Debt Instrument [Line Items]            
Total borrowings under credit facilities 72,000,000          
Maximum borrowing capacity 150,000,000     $ 150,000,000 $ 100,000,000 100,000,000
JPMorgan Chase Bank, N.A. | Line of Credit | Mortgages Segment            
Debt Instrument [Line Items]            
Total borrowings under credit facilities 72,000,000         40,000,000
Atlas Securitized Products, L.P. | Line of Credit            
Debt Instrument [Line Items]            
Maximum borrowing capacity           50,000,000
Atlas Securitized Products, L.P. | Line of Credit | Mortgages Segment            
Debt Instrument [Line Items]            
Total borrowings under credit facilities $ 0         $ 8,000,000
v3.25.0.1
Debt - Schedule of Credit Facilities (Details) - Line of Credit - USD ($)
Dec. 31, 2024
Sep. 06, 2024
Sep. 05, 2024
May 02, 2024
May 01, 2024
Dec. 31, 2023
Debt Instrument [Line Items]            
Maximum Borrowing Capacity $ 300,000,000         $ 250,000,000
Borrowings Outstanding 145,000,000         93,000,000
Available Borrowing Capacity 155,000,000         157,000,000
JPMorgan Chase Bank, N.A.            
Debt Instrument [Line Items]            
Maximum Borrowing Capacity 150,000,000     $ 150,000,000 $ 100,000,000 100,000,000
Borrowings Outstanding 72,000,000          
Available Borrowing Capacity $ 78,000,000         $ 60,000,000
Weighted Average Interest Rate 6.14%         7.05%
UBS AG            
Debt Instrument [Line Items]            
Maximum Borrowing Capacity $ 150,000,000 $ 150,000,000 $ 100,000,000     $ 100,000,000
Borrowings Outstanding 73,000,000          
Available Borrowing Capacity $ 77,000,000         $ 55,000,000
Weighted Average Interest Rate 6.07%         7.08%
Atlas Securitized Products, L.P.            
Debt Instrument [Line Items]            
Maximum Borrowing Capacity           $ 50,000,000
Available Borrowing Capacity           $ 42,000,000
Weighted Average Interest Rate           7.37%
v3.25.0.1
Debt - Narrative (Details) - USD ($)
shares in Millions, $ in Millions
1 Months Ended 6 Months Ended 12 Months Ended
Dec. 18, 2024
Oct. 08, 2024
Sep. 30, 2024
Aug. 29, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]                
Shareholders equity         $ 4,848 $ 4,526 $ 4,482 $ 5,341
Gain (loss) on extinguishment of debt         (1) 1 0  
Repurchase price percentage of principal amount 100.00%              
2024 Notes | Convertible Debt                
Debt Instrument [Line Items]                
Debt instrument, convertible, payments for debt conversion       $ 610        
Debt instrument, convertible, payments for debt conversion, outstanding principal         608      
Debt instrument, convertible, payments for debt conversion, accrued interest         $ 2      
2024 Notes | Convertible Debt | Class C capital stock                
Debt Instrument [Line Items]                
Settlement of convertible senior notes (in shares)         1.9      
Capped call transactions, portion unwound, shares received (in shares)     2.1          
2025 Notes                
Debt Instrument [Line Items]                
Debt instrument, repurchased face amount         $ 88 58    
Repayments of convertible debt         89 57    
Gain (loss) on extinguishment of debt         (1) 1    
2026 Notes | Convertible Debt                
Debt Instrument [Line Items]                
Debt instrument, convertible, payments for debt conversion         $ 498      
Debt instrument, notice for redemption of convertible debt, amount $ 499              
Debt conversion, converted instrument, amount   $ 498            
Debt instrument, redemption, aggregate principal, amount not surrendered for conversion $ 1              
2026 Notes | Convertible Debt | Class C capital stock                
Debt Instrument [Line Items]                
Settlement of convertible senior notes (in shares)         4.5      
Accumulated Deficit                
Debt Instrument [Line Items]                
Shareholders equity         $ (1,882) (1,770) $ (1,612) (1,667)
Cumulative-effect adjustment from adoption of guidance on accounting for convertible instruments and contracts in an entity’s own equity                
Debt Instrument [Line Items]                
Shareholders equity               (336)
Cumulative-effect adjustment from adoption of guidance on accounting for convertible instruments and contracts in an entity’s own equity | Accumulated Deficit                
Debt Instrument [Line Items]                
Shareholders equity               $ 156
Mortgages Segment                
Debt Instrument [Line Items]                
Borrowings Outstanding         145 93    
Atlas Securitized Products, L.P., JPMorgan Chase Bank, N.A, UBS AG | Mortgages Segment                
Debt Instrument [Line Items]                
Borrowings Outstanding         $ 151 $ 99    
v3.25.0.1
Debt - Schedule of Convertible Senior Notes (Details) - USD ($)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]      
Interest Expense $ 36,000,000 $ 36,000,000 $ 35,000,000
Convertible Debt      
Debt Instrument [Line Items]      
Aggregate Principal Amount 419,000,000    
Unamortized Debt Issuance Costs 1,000,000 7,000,000  
Fair Value 486,000,000 2,066,000,000  
Contractual Coupon Interest 22,000,000 28,000,000 27,000,000
Amortization of Debt Issuance Costs 4,000,000 5,000,000 5,000,000
Interest Expense 26,000,000 33,000,000 32,000,000
Convertible Debt | 2026 Notes      
Debt Instrument [Line Items]      
Aggregate Principal Amount $ 0    
Stated Interest Rate 1.375%    
Effective Interest Rate 1.57%    
Unamortized Debt Issuance Costs $ 0 3,000,000  
Fair Value 0 681,000,000  
Contractual Coupon Interest 7,000,000 7,000,000 7,000,000
Amortization of Debt Issuance Costs 1,000,000 1,000,000 0
Interest Expense 8,000,000 8,000,000 7,000,000
Convertible Debt | 2025 Notes      
Debt Instrument [Line Items]      
Aggregate Principal Amount $ 419,000,000    
Stated Interest Rate 2.75%    
Effective Interest Rate 3.20%    
Unamortized Debt Issuance Costs $ 1,000,000 3,000,000  
Fair Value 486,000,000 560,000,000  
Contractual Coupon Interest 12,000,000 16,000,000 16,000,000
Amortization of Debt Issuance Costs 2,000,000 2,000,000 3,000,000
Interest Expense 14,000,000 18,000,000 19,000,000
Convertible Debt | 2024 Notes      
Debt Instrument [Line Items]      
Aggregate Principal Amount $ 0    
Stated Interest Rate 0.75%    
Effective Interest Rate 1.02%    
Unamortized Debt Issuance Costs $ 0 1,000,000  
Fair Value 0 825,000,000  
Contractual Coupon Interest 3,000,000 5,000,000 4,000,000
Amortization of Debt Issuance Costs 1,000,000 2,000,000 2,000,000
Interest Expense $ 4,000,000 $ 7,000,000 $ 6,000,000
v3.25.0.1
Debt - Schedule of Conversion and Redemption (Details) - Convertible Debt
12 Months Ended
Dec. 31, 2024
$ / shares
2025 Notes  
Debt Instrument [Line Items]  
Debt instrument, convertible, conversion ratio 0.0148810
Conversion price per share (usd per share) $ 67.20
2026 Notes  
Debt Instrument [Line Items]  
Debt instrument, convertible, conversion ratio 0.0229830
v3.25.0.1
Debt - Capped Call Confirmations (Details) - Convertible Debt
12 Months Ended
Dec. 31, 2024
$ / shares
2026 Notes  
Debt Instrument [Line Items]  
Initial Cap Price (usd per share) $ 80.5750
Cap Price Premium 150.00%
Debt instrument, convertible, conversion ratio 0.0229830
2025 Notes  
Debt Instrument [Line Items]  
Debt instrument, convertible, conversion ratio 0.0148810
v3.25.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Schedule Of Income Tax [Line Items]        
Income tax expense $ 5 $ 4 $ 3  
Income tax reconciliation change in deferred tax assets valuation allowance 49 22    
Unrecognized tax benefits 115 95 $ 90 $ 75
Research and Development        
Schedule Of Income Tax [Line Items]        
Net operating loss carryforwards 205 166    
Federal        
Schedule Of Income Tax [Line Items]        
Net operating loss carryforwards 1,300 1,400    
State        
Schedule Of Income Tax [Line Items]        
Net operating loss carryforwards $ 66 $ 56    
v3.25.0.1
Income Taxes - Schedule of Components of Income Tax (Benefit) Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current income tax expense:      
State $ 3 $ 4 $ 2
Foreign 1 0 1
Total current income tax expense 4 4 3
Deferred income tax expense:      
Federal 1 0 0
Total deferred income tax expense 1 0 0
Total income tax expense $ 5 $ 4 $ 3
v3.25.0.1
Income Taxes - Schedule of Reconciliation of Federal Statutory Rate and Effective Tax Rate (Details)
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Tax expense at federal statutory rate (21.00%) (21.00%) (21.00%)
State income taxes, net of federal tax benefit (11.10%) 2.60% 6.20%
Meals and entertainment 1.60% 0.10% 0.70%
Share-based compensation 5.30% 10.40% 13.20%
Non-deductible executive compensation 16.90% 10.80% 14.30%
Research and development credits (36.30%) (6.80%) (25.70%)
Other, net 1.90% (8.30%) 7.50%
Valuation allowance 46.70% 15.00% 7.40%
Effective tax rate 4.00% 2.80% 2.60%
v3.25.0.1
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Deferred tax assets:    
Federal and state net operating loss carryforwards $ 345 $ 354
Capitalized research and development 247 208
Research and development credits 206 166
Share-based compensation 110 124
Lease liabilities 24 33
Debt discount on convertible notes 0 11
Accruals and reserves 8 5
Other deferred tax assets 3 3
Total deferred tax assets 943 904
Deferred tax liabilities:    
Right of use assets (14) (18)
Intangible assets (5) (13)
Goodwill (13) (6)
Other deferred tax liabilities (1) (5)
Total deferred tax liabilities (33) (42)
Net deferred tax assets before valuation allowance 910 862
Less: valuation allowance (914) (865)
Net deferred tax liabilities $ (4) $ (3)
v3.25.0.1
Income Taxes - Schedule of Changes in Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Unrecognized Tax Benefits [Roll Forward]      
Unrecognized tax benefits, beginning balance $ 95 $ 90 $ 75
Gross increases—current period tax positions 16 9 17
Gross increases—prior period tax positions 6 3 4
Gross decreases—prior period tax positions (1) (7) (6)
Gross decreases—statute of limitations lapse (1)    
Unrecognized tax benefits, ending balance $ 115 $ 95 $ 90
v3.25.0.1
Shareholders' Equity - Narrative (Details)
$ in Millions
12 Months Ended
Dec. 31, 2024
USD ($)
Vote
shares
Dec. 31, 2023
shares
Dec. 31, 2022
shares
Jul. 30, 2023
USD ($)
Class of Stock [Line Items]        
Preferred stock, outstanding (in shares) 0 0    
Preferred stock, issued (in shares) 0 0    
Stock repurchase program, authorized amount | $       $ 2,500
Stock repurchase program, remaining authorized repurchase amount | $ $ 381      
Class A common stock        
Class of Stock [Line Items]        
Common stock holders voting right | Vote 1      
Conversion of common stock conversion ratio 1      
Common stock issued (in shares) 0 0 0  
Class B Common Stock        
Class of Stock [Line Items]        
Common stock holders voting right | Vote 10      
Common stock converted (in shares) 0 0 0  
Class C Capital Stock        
Class of Stock [Line Items]        
Common stock holders voting right | Vote 0      
v3.25.0.1
Shareholders' Equity - Schedule of Stock Repurchase Program (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Class A common stock    
Class of Stock [Line Items]    
Shares repurchased (in shares) 1,100 2,212
Weighted-average price per share (usd per share) $ 42.26 $ 46.45
Total purchase price $ 46 $ 103
Class C capital stock    
Class of Stock [Line Items]    
Shares repurchased (in shares) 5,996 7,311
Weighted-average price per share (usd per share) $ 42.45 $ 43.94
Total purchase price $ 255 $ 321
v3.25.0.1
Share-Based Awards - Narrative (Details)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Aug. 03, 2022
USD ($)
employee
$ / shares
shares
Jun. 09, 2020
shares
Aug. 08, 2019
shares
Mar. 31, 2023
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Common stock reserved for future issuance (in shares) | shares   12,000,000          
Vesting period       3 years 4 years    
Zillow Group, Inc. 2020 Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Increase in number of shares of common and capital stock available for issuance, percentage   5.00%          
Exercise price per share fixed   100.00%          
2019 Equity Inducement Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Common stock reserved for future issuance (in shares) | shares     10,000,000        
Exercise price per share fixed     100.00%        
Employee Stock Option              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based compensation arrangement by share-based payment award, fair value assumptions, exercise price (usd per share) | $ / shares $ 38.78            
Share-based payment arrangement, plan modification, number of awards impacted | shares 7,000,000            
Share-based payment arrangement, plan modification, number of grantees affected | employee 3,348            
Share-based payment arrangement, plan modification, expected incremental cost $ 66            
Unrecognized cost of unvested share-based compensation awards         $ 217    
Unrecognized compensation cost expected recognition period         2 years 1 month 6 days    
Total intrinsic value of shares         $ 148 $ 20 $ 13
Fair value of options         $ 214 215 226
Employee Stock Option | Zillow Group, Inc. 2020 Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share based compensation arrangement by share based payment, award maximum exercisable period         12 months    
Expiration period         10 years    
Vesting period         4 years    
Employee Stock Option | 2019 Equity Inducement Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share based compensation arrangement by share based payment, award maximum exercisable period         12 months    
Expiration period         10 years    
Share based compensation arrangement by share based payment, award minimum exercisable period         3 months    
Employee Stock Option | 2019 Equity Inducement Plan | Vesting, Option Two              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting period         4 years    
Restricted Stock Units (RSUs)              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Unrecognized compensation cost expected recognition period         2 years 4 months 24 days    
Total fair value of awards vested         $ 310 $ 292 $ 247
Total unrecognized compensation cost         $ 544    
Restricted Stock Units (RSUs) | Zillow Group, Inc. 2020 Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting period         4 years    
Restricted Stock Units (RSUs) | 2019 Equity Inducement Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting period         4 years    
Share-Based Payment Arrangement              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Share-based compensation arrangement by share-based payment award, options, plan modification, grants in period, weighted average grant date fair value (usd per share) | $ / shares $ 67.58            
v3.25.0.1
Share-Based Awards - Schedule of Option Award Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Number of Shares Subject to Existing Options (in thousands)    
Beginning Balance (in shares) 32,524  
Granted (in shares) 3,551  
Exercised (in shares) (5,474)  
Forfeited or cancelled (in shares) (660)  
Ending Balance (in shares) 29,941 32,524
Vested and exercisable ending balance (in shares) 21,139  
Weighted- Average Exercise Price Per Share    
Beginning Balance (usd per share) $ 44.18  
Granted (usd per share) 56.11  
Exercised (usd per share) 38.69  
Forfeited or cancelled (usd per share) 44.76  
Ending Balance (usd per share) 46.58 $ 44.18
Vested and exercisable (usd per share) $ 46.01  
Weighted- Average Remaining Contractual Life (in years)    
Weighted-Average remaining contractual life, outstanding 6 years 3 months 18 days 6 years 10 months 24 days
Weighted-Average remaining contractual life, vested and exercisable 5 years 6 months  
Aggregate Intrinsic Value (in millions)    
Aggregate intrinsic value, outstanding $ 861 $ 495
Aggregate intrinsic value vested and exercisable $ 629  
v3.25.0.1
Share-Based Awards - Schedule of Fair Value of Options Granted, Estimated at Date of Grant Using Black Scholes Merton Option Pricing Model (Details) - Employee Stock Option - $ / shares
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average fair value of options granted (usd per share) $ 32.22 $ 24.43 $ 23.25
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility 57.00% 55.00% 55.00%
Risk-free interest rate 3.74% 3.75% 1.94%
Weighted-average expected life 5 years 6 months 5 years 3 months 18 days 4 years 6 months
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility 61.00% 62.00% 61.00%
Risk-free interest rate 4.50% 4.36% 3.95%
Weighted-average expected life 6 years 9 months 18 days 6 years 6 months 6 years
v3.25.0.1
Share-Based Awards - Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs)
shares in Thousands
12 Months Ended
Dec. 31, 2024
$ / shares
shares
Restricted Stock Units (in thousands)  
Beginning balance (in shares) | shares 12,038
Granted (in shares) | shares 7,282
Vested (in shares) | shares (6,436)
Forfeited (in shares) | shares (1,155)
Ending balance (in shares) | shares 11,729
Weighted- Average Grant- Date Fair Value  
Unvested outstanding, beginning balance (usd per share) | $ / shares $ 45.42
Granted (usd per share) | $ / shares 56.14
Vested (usd per share) | $ / shares 48.10
Forfeited (usd per share) | $ / shares 48.48
Unvested outstanding, ending balance (usd per share) | $ / shares $ 50.31
v3.25.0.1
Share-Based Awards - Schedule of Effects of Share Based Compensation in Consolidated Statements of Operations (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation   $ 451 $ 451
Share-based compensation - continuing operations      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation $ 448 451 435
Share-based compensation - discontinued operations      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation   0 16
Cost of revenue      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation 14 16 16
Sales and marketing      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation 77 70 63
Technology and development      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation 165 166 165
General and administrative      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation $ 192 199 189
Impairment and restructuring costs      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation   $ 0 $ 2
v3.25.0.1
Net Loss Per Share - Narrative (Details) - 2025 Notes - Convertible Debt
shares in Millions
12 Months Ended
Dec. 31, 2024
$ / shares
shares
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]  
Conversion Spread (in shares) | shares 6.2
Conversion price per share (usd per share) | $ / shares $ 67.20
v3.25.0.1
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - Class C capital stock - shares
shares in Thousands
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total Class C capital stock equivalents (in shares) 71,727 68,320 58,629
Convertible notes      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total Class C capital stock equivalents (in shares) 27,089 33,718 33,855
Weighted average | Employee Stock Option      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total Class C capital stock equivalents (in shares) 31,276 21,021 15,759
Weighted average | Restricted stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total Class C capital stock equivalents (in shares) 13,362 13,581 9,015
v3.25.0.1
Commitments and Contingencies - Schedule of Non-cancelable Purchase Commitments (Details)
$ in Millions
Dec. 31, 2024
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2025 $ 112
2026 80
2027 64
2028 1
Total future purchase commitments $ 257
v3.25.0.1
Commitments and Contingencies - Narrative (Details)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Nov. 25, 2022
patent
Jan. 06, 2022
Claim
Sep. 17, 2019
patent
Other Commitments [Line Items]          
Escrow deposit $ 0 $ 0      
Outstanding letters of credit 9,000,000 11,000,000      
Outstanding surety bonds $ 15,000,000 $ 15,000,000      
Number of patent, granted | patent     1    
Number of patents infringed | patent         7
Shareholder Derivative Lawsuits          
Other Commitments [Line Items]          
Number of pending claims | Claim       3  
v3.25.0.1
Employee Benefit Plan (Details) - Zillow Merger - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined Contribution Plan Disclosure [Line Items]      
Company's contribution based on employee contribution (up to) 4.00%    
Company's expense related to its defined contribution 401(k) retirement plans $ 35 $ 33 $ 29
v3.25.0.1
Revenue and Contract Balances - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]      
Total revenue $ 2,236 $ 1,945 $ 1,958
Total For Sale revenue      
Disaggregation of Revenue [Line Items]      
Total revenue 1,739 1,548 1,641
Residential      
Disaggregation of Revenue [Line Items]      
Total revenue 1,594 1,452 1,522
Mortgages      
Disaggregation of Revenue [Line Items]      
Total revenue 145 96 119
Rentals      
Disaggregation of Revenue [Line Items]      
Total revenue 453 357 274
Other      
Disaggregation of Revenue [Line Items]      
Total revenue $ 44 $ 40 $ 43
v3.25.0.1
Revenue and Contract Balances - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]      
Contract with customer, asset, after allowance for credit loss $ 157 $ 90  
Contract asset, remaining recognition period 5 months    
Deferred revenue $ 62 52 $ 44
Revenue recognized, recorded in deferred revenue as of prior period $ 51 $ 43  
v3.25.0.1
Segment Information (Details)
$ in Millions
12 Months Ended
Dec. 31, 2024
USD ($)
Segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Segment Reporting [Abstract]      
Number of reportable segments | Segment 1    
Segment Reporting Information [Line Items]      
Revenue $ 2,236 $ 1,945 $ 1,958
Share-based compensation   451 451
Depreciation and amortization 240 187 157
Impairment and restructuring costs 6 19 24
Acquisition-related costs 1 4 0
Loss from continuing operations (197) (270) (93)
Gain (loss) on extinguishment of debt (1) 1 0
Other income, net 127 151 43
Interest expense (36) (36) (35)
Income tax expense (5) (4) (3)
Loss from discontinued operations, net of income taxes 0 0 (13)
Net loss (112) (158) (101)
Reportable Segments      
Segment Reporting Information [Line Items]      
Revenue 2,236 1,945 1,958
Headcount-related expenses, excluding share-based compensation 1,110 993 906
Share-based compensation 448 451 433
Depreciation and amortization 240 187 150
Marketing and advertising costs 194 155 165
Direct product and service costs 184 144 133
Third-party professional service fees 70 75 75
Facility expenses 28 59 47
Impairment and restructuring costs 6 19 24
Acquisition-related costs 1 4 0
Other items 152 128 118
Loss from continuing operations (197) (270) (93)
Gain (loss) on extinguishment of debt (1) 1 0
Other income, net 127 151 43
Interest expense (36) (36) (35)
Income tax expense (5) (4) (3)
Loss from discontinued operations, net of income taxes 0 0 (13)
Net loss $ (112) $ (158) $ (101)
v3.25.0.1
Subsequent Event (Details) - Subsequent Event
$ in Millions
Feb. 06, 2025
USD ($)
Segment
Subsequent Event [Line Items]  
Partnership arrangement costs up front payment | $ $ 100
Partnership arrangement, initial payment period (in years) 5 years
Partnership arrangement, number of renewal options | Segment 2
Partnership arrangement, number of extension years (in years) 2 years