ZILLOW GROUP, INC., 10-K filed on 2/15/2024
Annual Report
v3.24.0.1
Cover Page - USD ($)
12 Months Ended
Dec. 31, 2023
Feb. 07, 2024
Jun. 30, 2023
Entity Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
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    
Entity Shell Company false    
Document Financial Statement Error Correction [Flag] false    
Entity Public Float     $ 10,398,012,325
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 2024 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 2023 fiscal year.    
Amendment Flag false    
Document Fiscal Year Focus 2023    
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)   55,282,702  
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 $0.0001 per share    
Trading Symbol Z    
Security Exchange Name NASDAQ    
Entity Common Stock, Shares Outstanding (in shares)   171,966,055  
v3.24.0.1
Audit Information
12 Months Ended
Dec. 31, 2023
Audit Information [Abstract]  
Auditor Name DELOITTE & TOUCHE LLP
Auditor Location Seattle, Washington
Auditor Firm ID 34
v3.24.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 1,492 $ 1,466
Short-term investments 1,318 1,896
Accounts receivable, net 96 72
Mortgage loans held for sale 100 41
Prepaid expenses and other current assets 140 126
Restricted cash 3 2
Total current assets 3,149 3,603
Contract cost assets 23 23
Property and equipment, net 328 271
Right of use assets 73 126
Goodwill 2,817 2,374
Intangible assets, net 241 154
Other assets 21 12
Total assets 6,652 6,563
Current liabilities:    
Accounts payable 28 20
Accrued expenses and other current liabilities 107 90
Accrued compensation and benefits 47 48
Borrowings under credit facilities 93 37
Deferred revenue 52 44
Lease liabilities, current portion 37 31
Convertible senior notes, current portion 607 0
Total current liabilities 971 270
Lease liabilities, net of current portion 95 139
Convertible senior notes, net of current portion 1,000 1,660
Other long-term liabilities 60 12
Total liabilities 2,126 2,081
Commitments and contingencies (Note 16)
Shareholders’ equity:    
Preferred stock, $0.0001 par value; authorized — 30,000,000 shares; no shares issued and outstanding 0 0
Additional paid-in capital 6,301 6,109
Accumulated other comprehensive loss (5) (15)
Accumulated deficit (1,770) (1,612)
Total shareholders’ equity 4,526 4,482
Total liabilities and shareholders’ equity 6,652 6,563
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
v3.24.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2023
Dec. 31, 2022
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) 55,282,702 57,494,698
Common stock, outstanding (in shares) 55,282,702 57,494,698
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) 171,853,566 170,555,565
Common stock, outstanding (in shares) 171,853,566 170,555,565
v3.24.0.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenue $ 1,945 $ 1,958 $ 2,132
Cost of revenue 421 367 323
Gross profit 1,524 1,591 1,809
Operating expenses:      
Sales and marketing 658 664 715
Technology and development 560 498 421
General and administrative 553 498 414
Impairment and restructuring costs 19 24 10
Acquisition-related costs 4 0 9
Integration costs 0 0 1
Total operating expenses 1,794 1,684 1,570
Income (loss) from continuing operations (270) (93) 239
Gain (loss) on extinguishment of debt 1 0 (17)
Other income, net 151 43 7
Interest expense (36) (35) (128)
Income (loss) from continuing operations before income taxes (154) (85) 101
Income tax benefit (expense) (4) (3) 1
Net income (loss) from continuing operations (158) (88) 102
Net loss from discontinued operations, net of income taxes 0 (13) (630)
Net loss $ (158) $ (101) $ (528)
Earnings Per Share From Continuing Operation [Abstract]      
Basic (USD per share) $ (0.68) $ (0.36) $ 0.41
Diluted (USD per share) (0.68) (0.36) 0.39
Earnings Per Share [Abstract]      
Basic (USD per share) (0.68) (0.42) (2.11)
Diluted (USD per share) $ (0.68) $ (0.42) $ (2.02)
Weighted Earnings Per Share Abstract [Abstract]      
Basic (in shares) 233,575 242,163 249,937
Diluted (in shares) 233,575 242,163 261,826
v3.24.0.1
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net loss $ (158) $ (101) $ (528)
Other comprehensive income (loss):      
Net unrealized gains (losses) on investments 10 (22) 7
Repurchases of Class C capital stock 10 (22) 7
Comprehensive loss $ (148) $ (123) $ (521)
v3.24.0.1
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 at Dec. 31, 2020 $ 4,742   $ 0 $ 5,881   $ (1,139)   $ 0
Beginning Balance (in shares) at Dec. 31, 2020     240,526          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of Class C capital stock upon exercise of stock options 127     127        
Issuance of capital stock upon exercise of stock options (in shares)     3,304          
Vesting of restricted stock units (in shares)     2,982          
Restricted stock units withheld for tax liability (in shares)     (1)          
Share-based compensation expense 347     347        
Issuance of Class C capital stock in connection with equity offering, net of issuance costs 545     545        
Issuance of Class C capital stock in connection with equity offering, net of issuance costs (in shares)     3,164          
Settlement of convertible senior notes 403     403        
Settlement of convertible senior notes (in shares)     6,265          
Unwind of Capped Call Transactions (in shares)     (666)          
Repurchases of Class A common stock and Class C capital stock (302)     (302)        
Repurchases of Class A common stock and Class C capital stock (in shares)     (4,944)          
Net loss (528)         (528)    
Other comprehensive income 7             7
Ending Balance at Dec. 31, 2021 5,341 $ (336) $ 0 7,001 $ (492) (1,667) $ 156 7
Ending Balance (in shares) at Dec. 31, 2021     250,630          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of Class C capital stock upon exercise of stock options 45     45        
Issuance of capital stock upon exercise of stock options (in shares)     1,129          
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 (947)     (947)        
Repurchases of Class A common stock and Class C capital stock (in shares)     (22,213)          
Net loss (101)         (101)    
Other comprehensive income (22)             (22)
Ending Balance at Dec. 31, 2022 4,482   $ 0 6,109   (1,612)   (15)
Ending Balance (in shares) at Dec. 31, 2022     234,268          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of Class C capital stock upon exercise of stock options $ 72     72        
Issuance of capital stock upon exercise of stock options (in shares) 1,829   1,829          
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 (424)     (424)        
Repurchases of Class A common stock and Class C capital stock (in shares)     (9,523)          
Issuance of Class C capital stock in connection with an acquisition 20     20        
Issuance of Class C capital stock in connection with an acquisition (in shares)     380          
Net loss (158)         (158)    
Other comprehensive income 10             10
Ending Balance at Dec. 31, 2023 $ 4,526   $ 0 $ 6,301   $ (1,770)   $ (5)
Ending Balance (in shares) at Dec. 31, 2023     233,354          
v3.24.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Operating activities      
Net loss $ (158) $ (101) $ (528)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Depreciation and amortization 187 157 130
Share-based compensation 451 451 312
Amortization of right of use assets 35 23 23
Amortization of contract cost assets 21 30 42
Amortization of debt discount and debt issuance costs 5 26 104
Gain (loss) on extinguishment of debt (1) 21 17
Impairment and restructuring costs 16 0 57
Amortization (accretion) of bond premium (discount) (35) (18) 9
Inventory valuation adjustment 0 9 408
Other adjustments to reconcile net loss to net cash provided by (used in) operating activities (2) 15 3
Changes in operating assets and liabilities:      
Accounts receivable (24) 82 (82)
Mortgage loans held for sale (59) 66 224
Inventory 0 3,904 (3,827)
Prepaid expenses and other assets (17) 6 (82)
Contract cost assets (21) (18) (26)
Lease liabilities (30) (21) (29)
Accounts payable 6 3 5
Accrued expenses and other current liabilities (18) (71) 61
Accrued compensation and benefits (1) (60) 13
Deferred revenue 1 (7) 1
Other long-term liabilities (2) 7 (12)
Net cash provided by (used in) operating activities 354 4,504 (3,177)
Investing activities      
Proceeds from maturities of investments 1,287 802 2,206
Purchases of investments (664) (2,191) (516)
Purchases of property and equipment (135) (115) (74)
Purchases of intangible assets (30) (25) (31)
Cash paid for acquisitions, net (433) (4) (497)
Net cash provided by (used in) investing activities 25 (1,533) 1,088
Financing activities      
Proceeds from issuance of Class C capital stock, net of issuance costs 0 0 545
Proceeds from issuance of term loan, net of issuance costs 0 0 1,138
Proceeds from borrowings on credit facilities 0 0 3,618
Repayments of borrowings on credit facilities 0 (2,206) (1,780)
Net borrowings (repayments) on warehouse line of credit and repurchase agreements 56 (76) (197)
Repurchases of Class A common stock and Class C capital stock (424) (947) (302)
Settlement of long-term debt (56) (1,158) (1)
Proceeds from exercise of stock options 72 46 127
Net cash provided by (used in) financing activities (352) (4,341) 3,148
Net increase (decrease) in cash, cash equivalents and restricted cash during period 27 (1,370) 1,059
Cash, cash equivalents and restricted cash at beginning of period 1,468 2,838 1,779
Cash, cash equivalents and restricted cash at end of period 1,495 1,468 2,838
Supplemental disclosures of cash flow information      
Cash paid for interest 28 50 109
Cash paid for taxes 6 6 0
Noncash transactions:      
Initial fair value of contingent consideration recognized in connection with an acquisition 81 0 0
Capitalized share-based compensation 73 51 30
Write-off of fully depreciated property and equipment 63 53 49
Value of Class C capital stock issued in connection with an acquisition 20 0 0
Write-off of fully amortized intangible assets 5 203 58
Issuance (settlement) of beneficial interests in securitizations $ 0 $ (79) $ 63
v3.24.0.1
Organization and Description of Business
12 Months Ended
Dec. 31, 2023
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 originations business 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 years ended December 31, 2022 and 2021. 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. For example, we believe that changes in any of the following areas could have a significant negative effect on us in terms of our future financial position, results of operations or cash flows: current and future 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 manage industry changes, including as a result of certain or future class action lawsuits or government investigations; our ability to manage advertising inventory and pricing and maintain relationships with our real estate partners; our compliance with multiple listing service rules and requirements to access and use listing data, and to maintain or establish relationships with listings 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 Zillow Home Loans, our mortgage origination business and 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 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; our ability to attract and retain a highly skilled workforce; protection of Zillow’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.
v3.24.0.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2023
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 United States generally accepted accounting principles (“GAAP”). We have presented the financial results of Zillow Offers as discontinued operations in our consolidated financial statements for all periods presented as applicable. See Note 3 for additional information. Certain reclassifications of prior period amounts have been made to conform to the current period presentation.
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, restructuring costs, 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, the presentation of discontinued and continuing operations, 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 have introduced significant 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 exposure of our investments.
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, 2023 or 2022. 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 include only 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, 2023 or 2022. 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.
Substantially all of the 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 interest rate lock commitments (“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 mortgage-backed securities (“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. We have an allowance for doubtful accounts for our accounts receivable balances, which 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 program. 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. The amortization period for capitalized contract costs related to our Premier Agent program is approximately three years.
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, 2023, 2022 and 2021, 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 the 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 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 on our consolidated balance sheets. We do not have any material financing leases.
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. 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.
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. 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 nine 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 five 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, 2023, 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. These expenses are included in general and administrative expenses in the consolidated statements of operations.
From time to time, we may enter into sublease agreements with third parties. Our subleases generally do not relieve us of our primary obligations under the corresponding head lease. As a result, we account for the head lease based on the original
assessment at lease inception. We determine if the sublease arrangement is either a sales-type, direct financing, or operating lease at inception of the sublease. If the total remaining lease cost on the head lease for the term of the sublease is greater than the anticipated sublease income, the right of use asset is assessed for impairment. Our subleases are generally operating leases and we recognize sublease income on a straight-line basis over the sublease term as a reduction to our operating lease cost within general and administrative expenses in our 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, who is our chief executive officer, manages our business, makes operating decisions and evaluates 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 chief operating decision maker. Accordingly, we have 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 manager similarly changed, and we determined that we have 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, 2023, 2022 and 2021, 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 will be recorded to goodwill. Changes in fair value as a result of updated assumptions after the acquisition date will be 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.
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 StreetEasy for-sale product offerings, ShowingTime+, and upon acquisition on December 8, 2023, 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. All Premier Agent partners receive access to a dashboard portal on our mobile application and website that provides individualized program performance analytics, our customer relationship management tool that captures detailed information about each contact made with a Premier Agent partner through our mobile and web platforms and our account management tools. 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. For our market-based pricing products and services, payment is received prior to the delivery of connections. 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. We determine the number of connections to deliver to Premier Agent partners in each zip code using a market-based pricing method in consideration of the total amount spent by Premier Agent partners to purchase connections in the zip code during the month. This results in the delivery of connections over time in proportion to each Premier Agent partners’ 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 consumer 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. Given a Premier Agent partner typically prepays their monthly spend and the monthly spend is refunded on a pro-rata basis upon cancellation of the contract by a customer, we have determined that Premier Agent market-based pricing contracts are effectively daily contracts, and each performance obligation is satisfied over time as each day lapses. 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 validated 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 validated leads that convert into real estate transactions and the value of those transactions. We estimate variable consideration and record revenue as performance obligations, or validated 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.
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 market professionals. Revenue from StreetEasy subscription offerings is generated on a cost per property basis, based on the property size and product tier, and we recognize revenue on a straight-line basis over the contractual listing period which aligns to our satisfaction of performance obligations.
Revenue generated through ShowingTime+ includes ShowingTime revenue, which is primarily generated by Appointment Center, a software-as-a-service 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. Appointment Center revenue is primarily billed in advance on a monthly basis and recognized ratably over the contract period which aligns to our satisfaction of performance obligations. ShowingTime+ revenue also includes our dotloop real estate transaction management software-as-a-service solution. Dotloop revenue is primarily billed in advance on a monthly basis and revenue is recognized ratably over the contract period which aligns to our satisfaction of 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 recognize revenue related to our fixed fee rentals product on a straight-line basis over the contract term as the performance obligations, rental listings on our mobile applications and websites, are satisfied over time. The number of leases generated through our rentals pay per lease product, Zillow Lease Connect, during the period is accounted for as variable consideration, and we estimate the amount of variable 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. We recognize revenue for the rental applications product on a straight-line basis during the contractual period over 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 sell substantially all of 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. In Zillow Group’s Connect platform, consumers answer a series of questions to find a local lender, and mortgage professionals receive consumer contact information, or leads, when the consumer chooses to share their information with a lender. Consumers who request rates for mortgage loans in Custom Quotes are presented with customized quotes from participating mortgage professionals. For our cost per lead mortgages products, we recognize revenue when a user contacts a mortgage professional through our mortgages platform, which is the amount for which we have the right to invoice.
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 display 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, 2023, 2022 or 2021.
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, 2023, 2022 and 2021, expenses attributable to advertising totaled $137 million, $144 million and $206 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, 2023, 2022 and 2021, expenses attributable to research and development for our business totaled $545 million, $495 million and $358 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 10 for additional information on the impairment costs recorded during the year ended December 31, 2023.
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 Issued Accounting Standards Not Yet Adopted
In June 2022, the FASB issued guidance to improve existing measurement and disclosure requirements for equity securities that are subject to a contractual sale restriction. This guidance is effective for interim and annual periods beginning after December 15, 2023 on a prospective basis, with early adoption permitted. We expect to adopt this guidance on January 1, 2024, and we do not expect the adoption of this guidance to have a material impact on our financial position, results of operations or cash flows.
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 disclosures requirements applicable to entities with a single reportable segment. This guidance is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024, on a retrospective basis. We expect to adopt this guidance for the annual period ending December 31, 2024 and have not yet determined the impact the adoption of this guidance will have on our consolidated financial statements.
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, 2024 using the retrospective approach and have not yet determined the impact the adoption of this guidance will have on our consolidated financial statements.
v3.24.0.1
Discontinued Operations
12 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
Zillow Offers Wind Down
In November 2021, the Board of Directors of Zillow Group (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 years ended December 31, 2022 and 2021. No assets or liabilities were classified as discontinued operations as of 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 periods presented (in millions):
Year Ended December 31,
20222021
Revenue$4,249 $6,015 
Cost of revenue4,023 6,071 
Gross profit (loss)226 (56)
Operating expenses:
Sales and marketing153 361 
Technology and development53 
General and administrative10 35 
Impairment and restructuring costs25 62 
Total operating expenses194 511 
Income (loss) from discontinued operations32 (567)
Loss on extinguishment of debt(21)— 
Other income, net13 
Interest expense(36)(64)
Loss from discontinued operations before income taxes
(12)(628)
Income tax expense
(1)(2)
Net loss from discontinued operations
$(13)$(630)
Net loss from discontinued operations per share:
Basic$(0.05)$(2.52)
Diluted$(0.05)$(2.41)
The following table presents significant non-cash items and capital expenditures of the discontinued operations for the periods presented (in millions):
Year Ended December 31,
20222021
Amortization of debt discount and debt issuance costs$21 $11 
Loss on debt extinguishment21 — 
Share-based compensation16 40 
Inventory valuation adjustment408 
Depreciation and amortization10 
Capital expenditures
Issuance (settlement) of beneficial interests in securitizations(79)63 

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.
v3.24.0.1
Fair Value Measurements
12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements 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).
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 mortgage-backed securities 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 Enchant, LLC (“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, 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).
As of the acquisition date of Follow Up Boss, our preliminarily estimated fair value of the contingent consideration was approximately $81 million. There were no material changes to the fair value of the contingent consideration between the acquisition date and December 31, 2023. See Note 7 for additional details on our contingent consideration and measurement period adjustments.
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.
The following table presents the range and weighted average unobservable inputs used in determining the fair value of contingent consideration as of December 31, 2023:
Discount Rate
Probability of Achieving Performance Metrics
Range
6.58% - 7.13%
88% - 97%
Weighted average
6.88%93%
Interest rate lock commitments — 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, 2023December 31, 2022
Range
45% - 100%
47% - 100%
Weighted average85%87%
The following tables present the balances of assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in millions):
 December 31, 2023
TotalLevel 1Level 2Level 3
Assets
Cash equivalents:
Money market funds$1,440 $1,440 $— $— 
U.S. government treasury securities— 2— 
Short-term investments:
U.S. government treasury securities1,143 — 1,143 — 
Corporate bonds161 — 161 — 
U.S. government agency securities14 — 14 — 
Mortgage origination-related:
Mortgage loans held for sale100 — 100 — 
IRLCs - other current assets— 
Total assets measured at fair value on a recurring basis
$2,863 $1,440 $1,420 $
Liabilities
Mortgage origination-related:
Forward contracts - accrued expenses and other current liabilities
Contingent consideration:
Contingent consideration - accrued expenses and other current liabilities30 — — 30 
Contingent consideration - other long-term liabilities51 — — 51 
Total liabilities measured at fair value on a recurring basis
$82 $— $$81 

 December 31, 2022
 TotalLevel 1Level 2Level 3
Assets
Cash equivalents:
Money market funds$1,338 $1,338 $— $— 
Short-term investments:
U.S. government treasury securities1,716 — 1,716 — 
Corporate bonds161 — 161 — 
Commercial paper10 — 10 — 
U.S. government agency securities
Mortgage origination-related:
Mortgage loans held for sale41 — 41 — 
Forward contracts - other current assets— — 
Total assets measured at fair value on a recurring basis
$3,276 $1,338 $1,938 $— 
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,
20232022
IRLCs
$167 $62 
Forward contracts(1)
$218 $90 
(1) Represents net notional amounts. We do not have the right to offset our forward contract derivative positions.
See Note 11 for the carrying amounts and estimated fair values of our convertible senior notes.
v3.24.0.1
Cash and Cash Equivalents, Investments and Restricted Cash
12 Months Ended
Dec. 31, 2023
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents, Investments and Restricted Cash Cash and Cash Equivalents, Investments and Restricted Cash
The following table presents the amortized cost and estimated fair market value of our cash and cash equivalents, investments, and restricted cash as of the dates presented (in millions):
 December 31, 2023December 31, 2022
 Amortized
Cost
Estimated
Fair Market
Value
Amortized
Cost
Estimated
Fair Market
Value
Cash$50 $50 $128 $128 
Cash equivalents:
Money market funds1,440 1,440 1,338 1,338 
U.S. government treasury securities— — 
Short-term investments:
U.S. government treasury securities(1)
1,149 1,143 1,731 1,716 
Corporate bonds
160 161 162 161 
U.S. government agency securities14 14 
Commercial paper— — 10 10 
Restricted cash
Total$2,818 $2,813 $3,380 $3,364 
(1)The estimated fair market value includes $6 million and $15 million of gross unrealized losses as of December 31, 2023 and December 31, 2022, respectively.
The following table presents available-for-sale investments by contractual maturity date as of December 31, 2023 (in millions):
Amortized CostEstimated Fair
Market Value
Due in one year or less$472 $470 
Due after one year 851 848 
Total $1,323 $1,318 
v3.24.0.1
Property and Equipment, net
12 Months Ended
Dec. 31, 2023
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,
20232022
Website development costs$452 $291 
Leasehold improvements48 90 
Office equipment, furniture and fixtures20 24 
Computer equipment19 18 
Construction-in-progress— 
Property and equipment539 430 
Less: accumulated amortization and depreciation(211)(159)
Property and equipment, net$328 $271 

We recorded depreciation expense related to property and equipment (other than website development costs) of $24 million, $25 million and $26 million during the years ended December 31, 2023, 2022 and 2021, respectively.
We capitalized $191 million, $143 million and $82 million in website development costs during the years ended December 31, 2023, 2022 and 2021, respectively. Amortization expense for website development costs included in cost of revenue was $110 million, $67 million and $36 million for the years ended December 31, 2023, 2022 and 2021, respectively.
v3.24.0.1
Acquisitions
12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [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 preliminary 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 preliminary 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 preliminary purchase price has been allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their preliminarily estimated fair values at the acquisition date, as follows (in millions):
Preliminary purchase price:
Cash
$403 
Contingent consideration
81 
Total preliminary purchase price$484 
Identifiable assets acquired and liabilities assumed:
Cash and cash equivalents$
Goodwill
401 
Intangible assets
86 
Other assets
Deferred revenue
(7)
Other liabilities
(1)
Total preliminary purchase price$484 
The preliminary estimated fair value of the identifiable intangible assets acquired and associated useful lives consisted of the following (in millions):
Preliminary 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 preliminary 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.
The purchase price allocation for the Follow Up Boss acquisition is preliminary, primarily due to the limited amount of time between the acquisition closing date and December 31, 2023. We made an initial allocation of the purchase price at the date of the acquisition based upon information available and our understanding of the estimates used to determine the preliminary fair value of acquired assets, assumed liabilities and contingent consideration. We are in the process of specifically identifying the amounts assigned to certain tangible assets acquired and liabilities assumed, identifiable intangible assets and contingent consideration. As of December 31, 2023, the measurement period (not to extend beyond one year) is open for the Follow Up Boss acquisition; therefore, assets acquired, liabilities assumed, and contingent consideration may be subject to revision as additional information is obtained which may result in adjustments to the preliminary estimated fair values until the end of the measurement period.
Acquisition-related costs incurred, which primarily included legal, accounting and other external costs directly related to the acquisition, are included within acquisition-related costs in our consolidated statements of operations and were expensed as incurred.
Unaudited pro forma revenue and earnings information has not been presented as the effects were not material to our consolidated financial statements.
Acquisitions of Aryeo and Spruce
On July 31, 2023, Zillow Group acquired Aryeo, Inc. (“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 Holdings, Inc. and certain affiliated entities (collectively referred to as “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 preliminary 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 preliminary 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 preliminary purchase price
$38 $24 
The preliminary estimated fair value of the identifiable intangible assets acquired and associated useful lives consisted of the following (in millions):
Aryeo
Spruce
Preliminary Estimated Fair Value
Estimated Useful Life (in years)
Preliminary 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.
The purchase price allocation for the Aryeo and Spruce acquisitions is preliminary. We made an initial allocation of the purchase prices at the date of the acquisition based upon our understanding of the fair value of the acquired assets and assumed liabilities based on information currently available. As of December 31, 2023, the measurement period (not to extend one year) is open for the Aryeo and Spruce acquisition; therefore, the assets acquired and liabilities assumed are subject to adjustment until the end of the measurement period.
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.
v3.24.0.1
Intangible Assets, net
12 Months Ended
Dec. 31, 2023
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, 2023
 CostAccumulated
Amortization
Net
Customer relationships$98 $(19)$79 
Developed technology
104 (30)74 
Software
84 (29)55 
Trade names and trademarks47 (20)27 
Purchased content
17 (11)
Total$350 $(109)$241 

 December 31, 2022
 CostAccumulated
Amortization
Net
Customer relationships$59 $(10)$49 
Software
54 (15)39 
Developed technology
49 (15)34 
Trade names and trademarks
45 (15)30 
Purchased content(6)
Total$215 $(61)$154 

Amortization expense recorded for intangible assets for the years ended December 31, 2023, 2022 and 2021 was $53 million, $58 million and $56 million, respectively.
Estimated future amortization expense for intangible assets, including amortization related to future commitments (see Note 16), as of December 31, 2023 is as follows (in millions):
2024$73 
202561 
202644 
202735 
2028
16 
Thereafter24 
Total future amortization expense$253 
We did not record any material impairment costs related to our intangible assets for the years ended December 31, 2023, 2022 or 2021.
v3.24.0.1
Accrued Expenses and Other Current Liabilities
12 Months Ended
Dec. 31, 2023
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,
20232022
Contingent consideration for acquisition, current portion
$30 $— 
Accrued estimated legal liabilities and legal fees21 
Other accrued expenses and other current liabilities71 69 
Total accrued expenses and other current liabilities$107 $90 
v3.24.0.1
Leases
12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
The components of our operating lease expense were as follows for the periods presented (in millions):
Year Ended December 31,
202320222021
Operating lease cost$35 $36 $38 
Variable lease cost18 18 13 
     Total lease cost$53 $54 $51 

We have subleases related to certain of our operating leases. For the years ended December 31, 2023, 2022 and 2021, we recognized $10 million, $10 million and $7 million, respectively, of sublease income. For the year ended December 31, 2023, we recognized impairment costs of $16 million 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, 2023, 2022 and 2021. Other information related to operating leases was as follows for the periods presented (in millions, except for years and percentages):
Year Ended December 31,
2023(1)
2022
2021(2)
Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives of $—, $9 and $— for the years ended December 31, 2023, 2022 and 2021, respectively
$42 $34 $43 
Right of use assets obtained in exchange for new operating lease obligations$(8)$19 $(36)
Weighted average remaining lease term for operating leases6 years7 years7 years
Weighted average discount rate for operating leases9.4 %8.2 %7.2 %
(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.
(2) During the year ended December 31, 2021, we amended our existing office space lease for our corporate headquarters in Seattle, Washington, whereby the renewal options for certain existing office space which we had previously included in the measurement of the lease liability and right of use asset were removed and we partially terminated our lease early for certain existing office space, resulting in a reduction of the related lease liability and right of use asset of approximately $44 million and $42 million, respectively. The lease term for certain other existing leased office space in Seattle was extended such that it now expires in 2032 and retains the two five-year renewal options, partially offsetting the reduction of the lease liability and right of use asset described above.
The following table presents the scheduled maturities of our operating lease liabilities by year as of December 31, 2023 (in millions):
2024$46 
202521 
202622 
2027
21 
2028
18 
Thereafter47 
     Total lease payments175 
Less: Imputed interest(43)
     Present value of lease liabilities$132 
Operating lease liabilities included in the table above do not include sublease income. As of December 31, 2023, we expect to receive sublease income totaling approximately $30 million from 2024 through 2030.
v3.24.0.1
Debt
12 Months Ended
Dec. 31, 2023
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,
20232022
Borrowings under credit facilities
   Master repurchase agreements:
UBS AG
$45 $— 
JPMorgan Chase Bank, N.A.
40 — 
Atlas Securitized Products, L.P.
23 
Citibank, N.A.(1)
— 
   Warehouse line of credit:
Comerica Bank(2)
— 11 
Total borrowings under credit facilities
93 37 
Convertible senior notes
1.375% convertible senior notes due 2026
496 495 
2.75% convertible senior notes due 2025
504 560 
0.75% convertible senior notes due 2024
607 605 
Total convertible senior notes1,607 1,660 
Total debt$1,700 $1,697 
(1)On June 9, 2023, this agreement, which had a maximum borrowing capacity of $100 million, expired and was not renewed.
(2)On November 28, 2023, this agreement, which had a maximum borrowing capacity of $50 million, was terminated.
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, 2023 (in millions, except interest rates):
LenderMaturity DateMaximum Borrowing Capacity
Borrowings Outstanding
Available
Borrowing Capacity
Weighted Average Interest Rate
UBS AGOctober 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 
The following table summarizes certain details related to our warehouse line of credit and master repurchase agreements as of December 31, 2022 (in millions, except interest rates):
LenderMaturity DateMaximum Borrowing Capacity
Borrowings Outstanding
Available
Borrowing Capacity
Weighted Average Interest Rate
Credit Suisse AG, Cayman Islands
March 17, 2023$100 $23 $77 6.16 %
Citibank, N.A.
June 9, 2023100 97 6.18 %
Comerica Bank
June 24, 202350 11 39 6.22 %
Total$250 $37 $213 
On May 25, 2023, the Zillow Home Loans’ master repurchase agreement with Credit Suisse AG, Cayman Islands was reassigned to Atlas Securitized Products, L.P. (“Atlas”). No other material changes were made to the master repurchase agreement in connection with the reassignment.
On June 1, 2023, Zillow Home Loans entered into a master repurchase agreement with JPMorgan Chase Bank, N.A. (“JPMC”). The master repurchase agreement provides a total maximum borrowing capacity of $100 million, $25 million of which is committed, until May 30, 2024.
On October 11, 2023, Zillow Home Loans entered into a master repurchase agreement with UBS AG. The master repurchase agreement provides a total maximum borrowing capacity of $100 million through October 9, 2024.
In accordance with the master repurchase agreements, Atlas, JPMC, UBS AG, and prior to its expiration in June 2023, Citibank, N.A. (together 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, 2023 and 2022, $99 million and $28 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 Secured Overnight Financing Rate plus an applicable margin, as defined by the governing agreements. Borrowings on the warehouse line of credit, prior to its termination on November 28, 2023, bore interest at a floating rate based on Bloomberg Short-Term Yield Index Rate plus an applicable margin, as defined by the governing agreement. The master repurchase agreements include customary representations and warranties, covenants and provisions regarding events of default. As of December 31, 2023, Zillow Home Loans was in compliance with all financial covenants and no event of default had occurred. The repurchase agreements are recourse to Zillow Home Loans, and have no recourse to Zillow Group or any of its other subsidiaries.
Convertible Senior Notes
Prior to the adoption of new accounting guidance on January 1, 2022, we accounted for the issuance of convertible senior notes by separating them into their liability and equity components. The carrying amount of the liability component for each of the convertible senior notes was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component, representing the conversion option, was determined by deducting the fair value of the liability component from the par value of the convertible senior notes. The difference between the principal amounts and the liability components represented the respective debt discounts, which were recorded as a direct deduction from the related debt liability in the consolidated balance sheets and amortized to interest expense using the effective interest method over the term of the convertible senior notes. The equity components of the convertible senior notes, net of issuance costs, were included in additional paid-in capital in the consolidated balance sheets and were not remeasured as long as they continued to meet the conditions for equity classification. Upon adoption of the new accounting guidance, we de-recognized the equity components of the convertible senior notes and the respective debt discounts through 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 outstanding convertible senior notes as of the dates presented or for the periods ended (in millions, except interest rates):
December 31, 2023December 31, 2022
Maturity DateAggregate Principal AmountStated Interest RateEffective Interest RateFirst Interest Payment DateSemi-Annual Interest Payment DatesUnamortized Debt Issuance CostsFair ValueUnamortized Debt Discount and Debt Issuance CostsFair Value
September 1, 2026$499 1.375 %1.57 %March 1, 2020March 1; September 1$$681 $$504 
May 15, 2025507 2.75 %3.20 %November 15, 2020May 15; November 15560 531 
September 1, 2024608 0.75 %1.02 %March 1, 2020March 1; September 1825 629 
Total$1,614 $$2,066 $12 $1,664 
Year Ended December 31, 2023Year Ended December 31, 2022Year Ended December 31, 2021
Maturity DateContractual Coupon InterestAmortization of Debt Issuance CostsInterest ExpenseContractual Coupon InterestAmortization of Debt Issuance CostsInterest ExpenseContractual Coupon InterestAmortization of Debt DiscountAmortization of Debt Issuance CostsInterest Expense
September 1, 2026$$$$$— $$$22 $$30 
May 15, 202516 18 16 19 16 27 44 
September 1, 202432 37 
July 1, 2023— — — — — — 12 
Total$28 $$33 $27 $$32 $30 $89 $$123 
The convertible notes maturing in 2026 (“2026 Notes”), 2025 (“2025 Notes”) and 2024 (“2024 Notes”) (together, the “Notes”) are senior unsecured obligations. The 2026 Notes and 2025 Notes are classified as long-term debt and the 2024 Notes are classified as current liabilities in our consolidated balance sheets based on their contractual maturity dates. Interest on the convertible notes is paid semi-annually in arrears. The estimated fair value of the convertible senior notes is classified as Level 2 and was determined through consideration of quoted market prices in markets that are not active.
The following table summarizes the conversion and redemption options with respect to the Notes:
Maturity DateEarly Conversion DateConversion RateConversion PriceOptional Redemption Date
September 1, 2026March 1, 202622.9830$43.51 September 5, 2023
May 15, 2025November 15, 202414.881067.20 May 22, 2023
September 1, 2024March 1, 202422.983043.51 September 5, 2022
Prior to the close of business on the business day immediately preceding the applicable Early Conversion Date, the Notes will be convertible at the option of the holders only under certain conditions. On or after the applicable Early Conversion Date, until the close of business on the second scheduled trading day immediately preceding the applicable Maturity Date, holders may convert the Notes at their option at the applicable Conversion Rate then in effect, irrespective of these conditions. We will settle conversions of the Notes by paying or delivering, as the case may be, cash, shares of Class C capital stock, or a combination of cash and shares of Class C capital stock, at its election. The applicable Conversion Rate for each series of Notes will initially be the conversion rate of shares of Class C capital stock per $1,000 principal amount of the Notes (equivalent to an initial Conversion Price per share of Class C capital stock). The applicable Conversion Rate and the corresponding initial Conversion Price will be subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. We may redeem for cash all or part of the respective series of Notes, at our option, on or after the applicable Optional Redemption Date, under certain circumstances, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date (as defined in the indentures governing the Notes). We may not redeem a series of Notes prior to the applicable Optional Redemption Date. We may redeem for cash all or any portion of a series of Notes, at our option, in whole or in part on or after the applicable Optional Redemption Date if the last reported sale price per share of our Class C capital stock has been at least 130% of the Conversion Price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period. The conversion option does not meet the criteria for separate accounting as a derivative as it is indexed to our own stock.
The last reported sale price of our Class C capital stock did not exceed 130% of the conversion price of each series of the Notes for more than 20 trading days during the 30 consecutive trading days ended December 31, 2023. Accordingly, each series of the Notes is not redeemable or convertible at the option of the holders during the three months ending March 31, 2024.
If the we undergo a fundamental change (as defined in the indentures governing the Notes), holders may require us to repurchase for cash all or part of a series of Notes, as applicable, at a repurchase price equal to 100% of the principal amount of the notes to be purchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date (as defined in the indentures governing the Notes). In addition, if certain fundamental changes occur, we may be required, in certain circumstances, to increase the conversion rate for any of the Notes converted in connection with such fundamental changes by a specified number of shares of our Class C capital stock. Certain events are also considered “Events of Default,” which may result in the acceleration of the maturity of the Notes, as described in the indentures governing the Notes. There are no financial covenants associated with the Notes.
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 13 under the subsection titled “Share Repurchase Authorizations.” There were no conversions or repurchases of convertible senior notes during the year ended December 31, 2022. The following table summarizes the activity for our convertible senior notes for the period presented (in millions, except for share amounts):
Year Ended December 31, 2021
2023 Notes2024 Notes2026 NotesTotal
Aggregate principal amount settled$374 $65 $$440 
Cash paid— — 
Shares of Class C capital stock issued4,752 1,485 28 6,265 
Total fair value of consideration transferred (1)$572 $200 $$776 
(Gain) loss on extinguishment of debt:
Consideration allocated to the liability component (2)$349 $53 $$403 
Carrying value of the liability component, net of unamortized debt discount and debt issuance costs334 51 386 
(Gain) loss on extinguishment of debt$15 $$— $17 
Consideration allocated to the equity component$223 $147 $$373 
(1) For convertible senior notes converted by note holders, the total fair value of consideration transferred includes the value of shares transferred to note holders using the daily volume weighted-average price of our Class C capital stock on the conversion date and an immaterial amount of cash paid in lieu of fractional shares. For convertible senior notes redeemed, the total fair value of consideration transferred comprises cash transferred to note holders to settle the related notes.
(2) Consideration allocated to the liability component is based on the fair value of the liability component immediately prior to settlement, which was calculated using a discounted cash flow analysis with a market interest rate of a similar liability that does not have an associated convertible feature.
The following table summarizes certain details related to the capped call confirmations with respect to certain of the convertible senior notes:
Maturity DateInitial Cap PriceCap Price Premium
September 1, 2026$80.5750 150 %
September 1, 202472.5175 125 %
The capped call confirmations are expected generally to reduce the potential dilution of our Class C capital stock in connection with any conversion of the Notes and/or offset the cash payments the Company is required to make in excess of the principal amount of such notes in the event that the market price of the Class C capital stock is greater than the strike price of the capped call confirmations (which initially corresponds to the initial Conversion Price of such notes and is subject to certain adjustments under the terms of the capped call confirmations), with such reduction and/or offset subject to a cap based on the cap price of the capped call confirmations. The capped call confirmations with respect to the 2026 Notes and the 2024 Notes have an Initial Cap Price per share, which represents a premium (“Cap Price Premium”) over the relevant historical closing price of the Company’s Class C capital stock on the Nasdaq Global Select Market, and is subject to certain adjustments under the terms of the capped call confirmations. The capped call confirmations will cover, subject to anti-dilution adjustments substantially similar to those applicable to the convertible senior notes, the number of shares of Class C capital stock that will underlie such notes. The capped call confirmations 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.
v3.24.0.1
Income Taxes
12 Months Ended
Dec. 31, 2023
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 $4 million and $3 million for the years ended December 31, 2023 and December 31, 2022, respectively, primarily due to state taxes. We recorded an income tax benefit of $1 million for the year ended December 31, 2021, comprised of a $3 million income tax benefit from a decrease in the valuation allowance associated with our September 2021 acquisition of ShowingTime, partially offset by $2 million of tax expense primarily due to state income taxes.
The following table presents the components of our income tax expense (benefit) for the periods presented (in millions):
 Year Ended December 31,
 202320222021
Current income tax expense
State$$$
Foreign— — 
Total current income tax expense
Deferred income tax benefit:
Federal— — (3)
Total deferred income tax benefit— — (3)
Total income tax expense (benefit)$$$(1)
The following table presents a reconciliation of the federal statutory rate and our effective tax rate for the periods presented:
 Year Ended December 31,
 202320222021
Tax expense at federal statutory rate(21.0)%(21.0)%(21.0)%
State income taxes, net of federal tax benefit2.6 6.2 8.7 
Share-based compensation10.4 13.2 84.1 
Non-deductible executive compensation10.8 14.3 (7.7)
Research and development credits(6.8)(25.7)40.8 
Other(8.2)8.2 (4.9)
Valuation allowance15.0 7.4 (99.3)
Effective tax rate2.8 %2.6 %0.7 %
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,
 20232022
Deferred tax assets:
Federal and state net operating loss carryforwards$354 $433 
Capitalized research and development
208 100 
Research and development credits166 164 
Share-based compensation124 102 
Lease liabilities
33 43 
Debt discount on convertible notes11 18 
Accruals and reserves
Interest expense limitation
— 28 
Other deferred tax assets
Total deferred tax assets904 896 
Deferred tax liabilities:
Right of use assets(18)(31)
Intangible assets(13)(15)
Goodwill(6)(5)
Depreciation and amortization(4)(3)
Other deferred tax liabilities
(1)— 
Total deferred tax liabilities(42)(54)
Net deferred tax assets before valuation allowance862 842 
Less: valuation allowance(865)(843)
Net deferred tax liabilities $(3)$(1)
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, 2023 and 2022 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 $22 million and $97 million during the years ended December 31, 2023 and 2022, respectively.
We have accumulated federal net operating losses of approximately $1.4 billion and $1.8 billion, as of December 31, 2023 and 2022, respectively, which are available to reduce future taxable income. We have accumulated state net operating losses of approximately $56 million and $63 million (tax effected) as of December 31, 2023 and 2022, 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 begin to expire in 2024. Additionally, we have net research and development credit carryforwards of $166 million and $164 million as of December 31, 2023 and 2022, 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. In connection with our August 2013 public offering of our Class A common stock, we experienced an ownership change that triggered Sections 382 and 383, which may limit our ability to utilize our net operating loss and research and development credit carryforwards. In connection with our February 2015 acquisition of Trulia, Trulia experienced an ownership change that triggered Section 382 and 383, which may limit Zillow Group’s ability to utilize Trulia’s net operating loss and research and development credit carryforwards.
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, 2021$49 
Gross increases—current period tax positions17 
Gross increases—prior period tax positions
Balance at December 31, 2021$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 
At December 31, 2023, the total amount of unrecognized tax benefits of $95 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.
v3.24.0.1
Shareholders' Equity
12 Months Ended
Dec. 31, 2023
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, 2023 or December 31, 2022.
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, 2023, 2022 and 2021, 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.
Equity Distribution Agreement
On February 17, 2021, we entered into an equity distribution agreement with certain sales agents and/or principals (the “Managers”), pursuant to which we may offer and sell from time to time, through the Managers, shares of our Class C capital stock, having an aggregate gross sales price of up to $1.0 billion, in such share amounts as we may specify by notice to the Managers, in accordance with the terms and conditions set forth in the equity distribution agreement.
There were no shares issued under the equity distribution agreement during the years ended December 31, 2023 and December 31, 2022.
Share Repurchase Authorizations
Prior to the year ended December 31, 2023, the Board authorized the repurchase of up to $1.8 billion of our Class A common stock, Class C capital stock, outstanding convertible senior notes or a combination thereof. On July 31, 2023, the Board authorized the repurchase of up to an additional $750 million of our Class A common stock, Class C capital stock, outstanding convertible senior notes or a combination thereof. This additional authorization (together with the previous authorizations, the “Repurchase Authorizations”) increased our total cumulative Repurchase Authorizations to $2.5 billion.
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, 2023, $770 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,
20232022
Class A common stockClass C capital stock
Class A common stock
Class C capital stock
Shares repurchased2,212 7,311 4,052 18,161 
Weighted-average price per share$46.45 $43.94 $44.14 $42.30 
Total purchase price$103 $321 $179 $768 
v3.24.0.1
Share-Based Awards
12 Months Ended
Dec. 31, 2023
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 Zillow Group, Inc. 2020 Incentive Plan (the “2020 Plan”) which vest quarterly over four years, during the first quarter of 2023, the Compensation Committee of the Board 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 have 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, will be 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, 2023:
Number
of Shares
Subject to
Existing
Options (in thousands)
Weighted-
Average
Exercise
Price Per
Share
Weighted-
Average
Remaining
Contractual
Life (Years)
Aggregate
Intrinsic
Value
(in millions)
Outstanding at January 1, 202328,598 $44.90 7.1$15 
Granted7,242 43.21 
Exercised(1,829)39.32 
Forfeited or cancelled(1,487)59.27 
Outstanding at December 31, 202332,524 44.18 6.9495 
Vested and exercisable at December 31, 202320,691 44.06 5.9321 
The following assumptions were used to determine the fair value of option awards granted for the periods presented:
Year Ended December 31,
202320222021
Expected volatility
55% – 62%
55% – 61%
52% – 58%
Risk-free interest rate
3.75% – 4.36%
1.94% – 3.95%
0.57% – 1.15%
Weighted-average expected life
5.3 – 6.5 years
4.5 – 6.0 years
4.5 – 5.8 years
Weighted-average fair value of options granted$24.43$23.25$54.55
As of December 31, 2023, there was a total of $335 million in unrecognized compensation cost related to unvested option awards, which is expected to be recognized over a weighted-average period of 2.3 years.
The total intrinsic value of options exercised during the years ended December 31, 2023, 2022 and 2021 was $20 million, $13 million and $310 million, respectively. The fair value of options vested for the years ended December 31, 2023, 2022 and 2021 was $215 million, $226 million and $173 million, respectively.
Restricted Stock Units
The following table summarizes activity for all restricted stock units for the year ended December 31, 2023:
Restricted
Stock Units (in thousands)
Weighted-
Average Grant-
Date Fair
Value
Unvested outstanding at January 1, 202310,930 $46.85 
Granted8,693 43.88 
Vested(6,400)45.57 
Forfeited(1,185)46.42 
Unvested outstanding at December 31, 202312,038 45.42 
The total fair value of restricted stock units that vested during the years ended December 31, 2023, 2022 and 2021 was $292 million, $247 million and $152 million, respectively.
As of December 31, 2023, there was $494 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,
202320222021
Cost of revenue$16 $16 $
Sales and marketing70 63 42 
Technology and development166 165 103 
General and administrative199 189 122 
Impairment and restructuring costs— 
Share-based compensation - continuing operations
451 435 277 
Share-based compensation - discontinued operations
— 16 40 
Total share-based compensation$451 $451 $317 
v3.24.0.1
Net Loss Per Share
12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Net Loss Per Share Net Loss Per Share
Basic net loss per share and basic income (loss) from continuing operations per share are computed by dividing net loss or income (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 income (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 income (loss) from continuing operations per share is computed by dividing net loss or net income (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 income (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 convertible senior 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 convertible notes on diluted net loss per share and diluted net income (loss) from continuing operations per share, if applicable. The following table presents the maximum number of shares and conversion price per share of Class C capital stock for each of the Notes based on the aggregate principal amount outstanding as of December 31, 2023 (in thousands, except per share amounts):
Maturity DateSharesConversion Price per Share
September 1, 202611,464 $43.51 
May 15, 20257,552 67.20 
September 1, 202413,982 43.51 
For the periods presented, the following table reconciles the denominators used in the basic and diluted net loss and net income (loss) from continuing operations per share calculations (in thousands):
 Year Ended December 31,
 202320222021
Denominator for basic calculation233,575 242,163 249,937 
Effect of dilutive securities:
Option awards— — 9,304 
Unvested restricted stock units— — 2,585 
Denominator for dilutive calculation233,575 242,163 261,826 
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 income (loss) from continuing operations per share because their effect would have been antidilutive (in thousands):
Year Ended December 31,
202320222021
Weighted-average Class C capital stock option awards outstanding
21,021 15,759 2,455 
Weighted-average Class C capital stock restricted stock units outstanding
13,581 9,015 1,173 
Class C capital stock issuable upon conversion of the convertible notes maturing in 2023, 2024, 2025 and 2026
33,718 33,855 36,540 
Total Class C capital stock equivalents
68,320 58,629 40,168 
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.
v3.24.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2023
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 business 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 2024 and 2032. For additional information regarding our lease agreements, see Note 10 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, 2023 are as follows (in millions):
Purchase Obligations
2024$100 
202585 
202667 
202760 
Total future purchase commitments$312 
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, 2023 and 2022.
Letters of Credit
As of December 31, 2023 and 2022, we have outstanding letters of credit of approximately $11 million and $16 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 and $13 million as of December 31, 2023 and 2022, respectively.
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, 2023 or 2022.
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. On November 8, 2019, we filed a motion to transfer venue and/or to dismiss the complaint. On December 2, 2019, IBM filed an amended complaint, and on December 16, 2019 we filed a renewed motion to transfer venue and/or to dismiss the complaint. The Company’s motion to transfer venue to the U.S. District Court for the Western District of Washington was granted on May 28, 2020. On August 12, 2020, IBM filed its answer to our counterclaims. On September 18, 2020, we filed four Inter Partes Review (“IPR”) petitions before the U.S. Patent and Trial Appeal Board (“PTAB”) seeking the Board’s review of the patentability with respect to three of the patents asserted by IBM in the lawsuit. On March 15, 2021, the PTAB instituted IPR proceedings with respect to two of the three patents for which we filed petitions. On March 22, 2021, the PTAB denied institution with respect to the last of the three patents. On January 22, 2021, the court partially stayed the action with respect to all patents for which we filed an IPR and set forth a motion schedule. On March 8, 2021, IBM filed its second amended complaint. On March 25, 2021, we filed an amended motion for judgment on the pleadings. On July 15, 2021, the court rendered an order in connection with the motion for judgment on the pleadings finding in our favor on two of the four patents on which we filed our motion. On August 31, 2021, the Court ruled that the parties will proceed with respect to the two patents for which it previously denied judgment, and vacated the stay with respect to one of the three patents for which Zillow filed an IPR, which stay was later reinstated by stipulation of the parties on May 18, 2022. On September 23, 2021, IBM filed a notice of appeal with the United States Court of Appeals for the Federal Circuit with respect to the August 31, 2021 judgment entered, which judgment was affirmed by the Federal Circuit on October 17, 2022. On March 3, 2022, the PTAB ruled on Zillow’s two remaining IPRs finding that Zillow was able to prove certain claims unpatentable, and others it was not. On October 28, 2022, the court found one of the two patents upon which the parties were proceeding in this action as invalid, and dismissed IBM’s claim relating to that patent. Following the court’s ruling, on October 28, 2022, the parties filed a joint stipulation with the court seeking a stay of this action, which was granted by the court on November 1, 2022. On November 25, 2022, Zillow filed a motion to join an IPR petition within Ebates Performance Mktg., Inc. d/b/a Rakuten Rewards v. Intl Bus. Machs. Corp., (“Rakuten IPR”), IPR2022-00646 concerning the final remaining patent in this action, which the court granted on April 20, 2023. On October 11, 2023, the 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, and cross appeals were filed by Ebates Performance Marketing Inc. on November 21, 2023 and by us on December 15, 2023. We deny the allegations of any wrongdoing and intend to vigorously defend the claims in the lawsuit. 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.
On July 21, 2020, IBM filed a second action against us in the U.S. District Court for the Western District of Washington, alleging, among other things, that the Company has infringed and continues to willfully infringe five patents held by IBM and seeks unspecified damages. On September 14, 2020, we filed a motion to dismiss the complaint filed in the action, to which IBM responded by the filing of an amended complaint on November 5, 2020. On December 18, 2020, we filed a motion to dismiss IBM’s first amended complaint. On December 23, 2020, the Court issued a written order staying this case in full. On July 23, 2021, we filed an IPR with the PTAB with respect to one patent included in the second lawsuit. On October 6, 2021, the stay of this action was lifted, except for proceedings relating to the one patent for which we filed an IPR. On December 1, 2021, the Court dismissed the fourth claim asserted by IBM in its amended complaint. On December 16, 2021 Zillow filed a motion to dismiss the remaining claims alleged in IBM’s amended complaint. On March 9, 2022, the Court granted Zillow’s motion to dismiss in full, dismissing IBM’s claims related to all the patents asserted by IBM in this action, except for the one patent for which an IPR was still pending. On March 10, 2022, the PTAB rendered its decision denying Zillow’s IPR on the one remaining patent, for which this case continues to remain stayed. On August 1, 2022, IBM filed an appeal of the Court’s ruling with respect to two of the dismissed patents, which ruling was affirmed by the appeals court on January 9, 2024. We deny the allegations of any wrongdoing and intend to vigorously defend the claims in the lawsuit. 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.
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 U.S. District Court for the Western District of Washington and were consolidated on February 16, 2022. 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. We moved to dismiss the amended consolidated complaint on July 11, 2022, plaintiffs filed their opposition to the motion to dismiss on September 2, 2022, and we filed a reply in support of the motion to dismiss on October 11, 2022. On December 7, 2022, the court rendered its decision granting defendants’ motion to dismiss, in part, and denying the motion, in part. On January 23, 2023, the defendants filed their answer to the consolidated complaint. We intend to deny the allegations of wrongdoing and intend to vigorously defend the claims in this consolidated lawsuit. We do not believe that a loss related to this consolidated lawsuit is probable.
On March 10, 2022, May 5, 2022 and July 20, 2022, shareholder derivative suits were filed in the U.S. District Court for the Western District of Washington (“Federal Court”) and on July 25, 2022, a shareholder derivative suit was filed in the Superior Court of the State of Washington, King County (the “2022 State Suit”), 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 June 1, 2022 and September 14, 2022, the U.S. District Court for the Western District of Washington issued orders consolidating the three federal derivative suits and staying the consolidated action until further order of the court, which stay was further continued by the Federal Court on September 6, 2023. On September 15, 2022, the Superior Court of the State of Washington entered a temporary stay in the 2022 State Suit. Upon the filing of the defendants’ answer in the related securities class action lawsuit on January 23, 2023, the stay in the 2022 State Suit was lifted. A partial stay was then reentered in the 2022 State Suit, which expired on February 1, 2024. On August 23, 2023 a second shareholder derivative suit was filed in the Superior Court of the State of Washington, King County. The defendants intend to deny the allegations of wrongdoing and vigorously defend the claims in these lawsuits. We do not believe that a loss related to these lawsuits is probable.
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.
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Employee Benefit Plan
12 Months Ended
Dec. 31, 2023
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 $33 million, $29 million and $27 million, respectively, for the years ended December 31, 2023, 2022 and 2021.
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Revenue and Contract Balances
12 Months Ended
Dec. 31, 2023
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 regarding our revenue recognition accounting policies.
Beginning in 2023, our chief executive officer, who acts as the chief operating decision maker, began to manage our business, make operating decisions and evaluate operating performance on the basis of the company as a whole, instead of on a segment basis as he did prior to 2023. Accordingly, this change resulted in revisions to the nature and substance of information regularly provided to and used by the chief operating decision maker. This serves to align our reported results with our ongoing growth strategy and our intent to provide integrated customer solutions for all tasks and services related to facilitating real estate transactions. As a result, we have determined that we have a single reportable segment. In addition, our revenue is classified into four categories: Residential, Rentals, Mortgages and Other. Certain prior period amounts have been revised to reflect these changes.
The Residential revenue category primarily includes revenue for our Premier Agent and new construction marketplaces, as well as revenue from the sale of other advertising and business technology solutions for real estate professionals, including StreetEasy for-sale product offerings, ShowingTime+ and Follow Up Boss. Our Rentals and Mortgages revenue categories remain consistent with our historical presentation, and our Other revenue category primarily includes revenue generated from display advertising.
Disaggregation of Revenue
The following table presents our revenue disaggregated by category for the periods presented (in millions):
 Year Ended December 31,
202320222021
Residential
$1,452 $1,522 $1,572 
Rentals
357 274 264 
Mortgages
96 119 246 
Other
40 43 50 
Total revenue$1,945 $1,958 $2,132 
Contract Balances
Contract assets totaled $90 million and $71 million as of December 31, 2023 and December 31, 2022, respectively.
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. For the year ended December 31, 2022, the opening balance of deferred revenue was $51 million, of which $51 million was recognized as revenue during the period.
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Pay vs Performance Disclosure - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure      
Net loss $ (158) $ (101) $ (528)
v3.24.0.1
Insider Trading Arrangements
3 Months Ended 12 Months Ended
Dec. 31, 2023
shares
Dec. 31, 2023
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  
Amy Bohutinsky [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On December 4, 2023, Amy Bohutinsky, Director of Zillow Group, Inc., 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 exercise of option awards and sale of up to 125,000 shares of Class A common stock and 270,625 shares of Class C capital stock. This 10b5-1 sales plan will become effective on March 4, 2024 and will terminate on January 7, 2025, subject to earlier termination upon the exercise of option awards and sale of all shares of Class A common stock or Class C capital stock subject to the 10b5-1 sales plan or as otherwise provided in this 10b5-1 sales plan.
Name Amy Bohutinsky  
Title Director  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date December 4, 2023  
Arrangement Duration 309 days  
Jeremy Hofmann [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On December 11, 2023, Jeremy Hofmann, Chief Financial Officer of Zillow Group, Inc., 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 an indeterminate number of shares of Class C capital stock related to future vesting of restricted stock units. This 10b5-1 sales plan will become effective on March 15, 2024 and will terminate on November 29, 2024, subject to earlier termination as provided in the 10b5-1 sales plan.
Name Jeremy Hofmann  
Title Chief Financial Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date December 11, 2023  
Arrangement Duration 259 days  
Amy Bohutinsky, Class A Common Stock [Member] | Amy Bohutinsky [Member]    
Trading Arrangements, by Individual    
Aggregate Available 125,000 125,000
Amy Bohutinsky, Class C Capital Stock [Member] | Amy Bohutinsky [Member]    
Trading Arrangements, by Individual    
Aggregate Available 270,625 270,625
v3.24.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2023
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 United States generally accepted accounting principles (“GAAP”). We have presented the financial results of Zillow Offers as discontinued operations in our consolidated financial statements for all periods presented as applicable. See Note 3 for additional information.
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, restructuring costs, 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, the presentation of discontinued and continuing operations, 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 have introduced significant 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 exposure of our investments.
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, 2023 or 2022. 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 include only 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.
Substantially all of the 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 interest rate lock commitments (“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 mortgage-backed securities (“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. We have an allowance for doubtful accounts for our accounts receivable balances, which 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 program. 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. The amortization period for capitalized contract costs related to our Premier Agent program is approximately three years.
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, 2023, 2022 and 2021, 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.
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 StreetEasy for-sale product offerings, ShowingTime+, and upon acquisition on December 8, 2023, 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. All Premier Agent partners receive access to a dashboard portal on our mobile application and website that provides individualized program performance analytics, our customer relationship management tool that captures detailed information about each contact made with a Premier Agent partner through our mobile and web platforms and our account management tools. 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. For our market-based pricing products and services, payment is received prior to the delivery of connections. 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. We determine the number of connections to deliver to Premier Agent partners in each zip code using a market-based pricing method in consideration of the total amount spent by Premier Agent partners to purchase connections in the zip code during the month. This results in the delivery of connections over time in proportion to each Premier Agent partners’ 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 consumer 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. Given a Premier Agent partner typically prepays their monthly spend and the monthly spend is refunded on a pro-rata basis upon cancellation of the contract by a customer, we have determined that Premier Agent market-based pricing contracts are effectively daily contracts, and each performance obligation is satisfied over time as each day lapses. 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 validated 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 validated leads that convert into real estate transactions and the value of those transactions. We estimate variable consideration and record revenue as performance obligations, or validated 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.
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 market professionals. Revenue from StreetEasy subscription offerings is generated on a cost per property basis, based on the property size and product tier, and we recognize revenue on a straight-line basis over the contractual listing period which aligns to our satisfaction of performance obligations.
Revenue generated through ShowingTime+ includes ShowingTime revenue, which is primarily generated by Appointment Center, a software-as-a-service 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. Appointment Center revenue is primarily billed in advance on a monthly basis and recognized ratably over the contract period which aligns to our satisfaction of performance obligations. ShowingTime+ revenue also includes our dotloop real estate transaction management software-as-a-service solution. Dotloop revenue is primarily billed in advance on a monthly basis and revenue is recognized ratably over the contract period which aligns to our satisfaction of 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 recognize revenue related to our fixed fee rentals product on a straight-line basis over the contract term as the performance obligations, rental listings on our mobile applications and websites, are satisfied over time. The number of leases generated through our rentals pay per lease product, Zillow Lease Connect, during the period is accounted for as variable consideration, and we estimate the amount of variable 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. We recognize revenue for the rental applications product on a straight-line basis during the contractual period over 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 sell substantially all of 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. In Zillow Group’s Connect platform, consumers answer a series of questions to find a local lender, and mortgage professionals receive consumer contact information, or leads, when the consumer chooses to share their information with a lender. Consumers who request rates for mortgage loans in Custom Quotes are presented with customized quotes from participating mortgage professionals. For our cost per lead mortgages products, we recognize revenue when a user contacts a mortgage professional through our mortgages platform, which is the amount for which we have the right to invoice.
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 display 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, 2023, 2022 or 2021.
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 the 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 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 on our consolidated balance sheets. We do not have any material financing leases.
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. 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.
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. 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 nine 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 five 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, 2023, 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. These expenses are included in general and administrative expenses in the consolidated statements of operations.
From time to time, we may enter into sublease agreements with third parties. Our subleases generally do not relieve us of our primary obligations under the corresponding head lease. As a result, we account for the head lease based on the original
assessment at lease inception. We determine if the sublease arrangement is either a sales-type, direct financing, or operating lease at inception of the sublease. If the total remaining lease cost on the head lease for the term of the sublease is greater than the anticipated sublease income, the right of use asset is assessed for impairment. Our subleases are generally operating leases and we recognize sublease income on a straight-line basis over the sublease term as a reduction to our operating lease cost within general and administrative expenses in our 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, who is our chief executive officer, manages our business, makes operating decisions and evaluates 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 chief operating decision maker. Accordingly, we have 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 manager similarly changed, and we determined that we have 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 will be recorded to goodwill. Changes in fair value as a result of updated assumptions after the acquisition date will be 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 10 for additional information on the impairment costs recorded during the year ended December 31, 2023.
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 Issued Accounting Standards Not Yet Adopted
Recently Issued Accounting Standards Not Yet Adopted
In June 2022, the FASB issued guidance to improve existing measurement and disclosure requirements for equity securities that are subject to a contractual sale restriction. This guidance is effective for interim and annual periods beginning after December 15, 2023 on a prospective basis, with early adoption permitted. We expect to adopt this guidance on January 1, 2024, and we do not expect the adoption of this guidance to have a material impact on our financial position, results of operations or cash flows.
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 disclosures requirements applicable to entities with a single reportable segment. This guidance is effective for annual periods beginning after December 15, 2023 and interim periods beginning after December 15, 2024, on a retrospective basis. We expect to adopt this guidance for the annual period ending December 31, 2024 and have not yet determined the impact the adoption of this guidance will have on our consolidated financial statements.
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, 2024 using the retrospective approach and 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).
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 mortgage-backed securities 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 Enchant, LLC (“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, 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).
As of the acquisition date of Follow Up Boss, our preliminarily estimated fair value of the contingent consideration was approximately $81 million. There were no material changes to the fair value of the contingent consideration between the acquisition date and December 31, 2023. See Note 7 for additional details on our contingent consideration and measurement period adjustments.
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.
The following table presents the range and weighted average unobservable inputs used in determining the fair value of contingent consideration as of December 31, 2023:
Discount Rate
Probability of Achieving Performance Metrics
Range
6.58% - 7.13%
88% - 97%
Weighted average
6.88%93%
Interest rate lock commitments — 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, 2023December 31, 2022
Range
45% - 100%
47% - 100%
Weighted average85%87%
v3.24.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Useful Lives
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
v3.24.0.1
Discontinued Operations (Tables)
12 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
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 periods presented (in millions):
Year Ended December 31,
20222021
Revenue$4,249 $6,015 
Cost of revenue4,023 6,071 
Gross profit (loss)226 (56)
Operating expenses:
Sales and marketing153 361 
Technology and development53 
General and administrative10 35 
Impairment and restructuring costs25 62 
Total operating expenses194 511 
Income (loss) from discontinued operations32 (567)
Loss on extinguishment of debt(21)— 
Other income, net13 
Interest expense(36)(64)
Loss from discontinued operations before income taxes
(12)(628)
Income tax expense
(1)(2)
Net loss from discontinued operations
$(13)$(630)
Net loss from discontinued operations per share:
Basic$(0.05)$(2.52)
Diluted$(0.05)$(2.41)
The following table presents significant non-cash items and capital expenditures of the discontinued operations for the periods presented (in millions):
Year Ended December 31,
20222021
Amortization of debt discount and debt issuance costs$21 $11 
Loss on debt extinguishment21 — 
Share-based compensation16 40 
Inventory valuation adjustment408 
Depreciation and amortization10 
Capital expenditures
Issuance (settlement) of beneficial interests in securitizations(79)63 
v3.24.0.1
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
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, 2023:
Discount Rate
Probability of Achieving Performance Metrics
Range
6.58% - 7.13%
88% - 97%
Weighted average
6.88%93%
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, 2023December 31, 2022
Range
45% - 100%
47% - 100%
Weighted average85%87%
Summary of Balances of Cash Equivalents and Investments
The following tables present the balances of assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the dates presented (in millions):
 December 31, 2023
TotalLevel 1Level 2Level 3
Assets
Cash equivalents:
Money market funds$1,440 $1,440 $— $— 
U.S. government treasury securities— 2— 
Short-term investments:
U.S. government treasury securities1,143 — 1,143 — 
Corporate bonds161 — 161 — 
U.S. government agency securities14 — 14 — 
Mortgage origination-related:
Mortgage loans held for sale100 — 100 — 
IRLCs - other current assets— 
Total assets measured at fair value on a recurring basis
$2,863 $1,440 $1,420 $
Liabilities
Mortgage origination-related:
Forward contracts - accrued expenses and other current liabilities
Contingent consideration:
Contingent consideration - accrued expenses and other current liabilities30 — — 30 
Contingent consideration - other long-term liabilities51 — — 51 
Total liabilities measured at fair value on a recurring basis
$82 $— $$81 

 December 31, 2022
 TotalLevel 1Level 2Level 3
Assets
Cash equivalents:
Money market funds$1,338 $1,338 $— $— 
Short-term investments:
U.S. government treasury securities1,716 — 1,716 — 
Corporate bonds161 — 161 — 
Commercial paper10 — 10 — 
U.S. government agency securities
Mortgage origination-related:
Mortgage loans held for sale41 — 41 — 
Forward contracts - other current assets— — 
Total assets measured at fair value on a recurring basis
$3,276 $1,338 $1,938 $— 
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,
20232022
IRLCs
$167 $62 
Forward contracts(1)
$218 $90 
(1) Represents net notional amounts. We do not have the right to offset our forward contract derivative positions.
v3.24.0.1
Cash and Cash Equivalents, Investments and Restricted Cash (Tables)
12 Months Ended
Dec. 31, 2023
Cash and Cash Equivalents [Abstract]  
Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Market Value of Cash and Cash Equivalents and Available-for-Sale Investments
The following table presents the amortized cost and estimated fair market value of our cash and cash equivalents, investments, and restricted cash as of the dates presented (in millions):
 December 31, 2023December 31, 2022
 Amortized
Cost
Estimated
Fair Market
Value
Amortized
Cost
Estimated
Fair Market
Value
Cash$50 $50 $128 $128 
Cash equivalents:
Money market funds1,440 1,440 1,338 1,338 
U.S. government treasury securities— — 
Short-term investments:
U.S. government treasury securities(1)
1,149 1,143 1,731 1,716 
Corporate bonds
160 161 162 161 
U.S. government agency securities14 14 
Commercial paper— — 10 10 
Restricted cash
Total$2,818 $2,813 $3,380 $3,364 
(1)The estimated fair market value includes $6 million and $15 million of gross unrealized losses as of December 31, 2023 and December 31, 2022, respectively.
Debt Securities, Available-for-Sale
The following table presents available-for-sale investments by contractual maturity date as of December 31, 2023 (in millions):
Amortized CostEstimated Fair
Market Value
Due in one year or less$472 $470 
Due after one year 851 848 
Total $1,323 $1,318 
v3.24.0.1
Property and Equipment, net (Tables)
12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Detail of Property and Equipment
The following table presents the detail of property and equipment as of the dates presented (in millions):
December 31,
20232022
Website development costs$452 $291 
Leasehold improvements48 90 
Office equipment, furniture and fixtures20 24 
Computer equipment19 18 
Construction-in-progress— 
Property and equipment539 430 
Less: accumulated amortization and depreciation(211)(159)
Property and equipment, net$328 $271 
v3.24.0.1
Acquisitions (Tables)
12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Purchase Price Allocation
The total preliminary purchase price has been allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their preliminarily estimated fair values at the acquisition date, as follows (in millions):
Preliminary purchase price:
Cash
$403 
Contingent consideration
81 
Total preliminary purchase price$484 
Identifiable assets acquired and liabilities assumed:
Cash and cash equivalents$
Goodwill
401 
Intangible assets
86 
Other assets
Deferred revenue
(7)
Other liabilities
(1)
Total preliminary purchase price$484 
The total preliminary 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 preliminary purchase price
$38 $24 
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination
The preliminary estimated fair value of the identifiable intangible assets acquired and associated useful lives consisted of the following (in millions):
Preliminary 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 preliminary estimated fair value of the identifiable intangible assets acquired and associated useful lives consisted of the following (in millions):
Aryeo
Spruce
Preliminary Estimated Fair Value
Estimated Useful Life (in years)
Preliminary Estimated Fair Value
Estimated Useful Life (in years)
Customer relationships$5$— 
Purchased content
3— 
Developed technology
33
Total$11 $
v3.24.0.1
Intangible Assets, net (Tables)
12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
The following tables present the detail of intangible assets as of the dates presented (in millions):
 December 31, 2023
 CostAccumulated
Amortization
Net
Customer relationships$98 $(19)$79 
Developed technology
104 (30)74 
Software
84 (29)55 
Trade names and trademarks47 (20)27 
Purchased content
17 (11)
Total$350 $(109)$241 

 December 31, 2022
 CostAccumulated
Amortization
Net
Customer relationships$59 $(10)$49 
Software
54 (15)39 
Developed technology
49 (15)34 
Trade names and trademarks
45 (15)30 
Purchased content(6)
Total$215 $(61)$154 
Estimated Future Amortization Expense for Intangible Assets
Estimated future amortization expense for intangible assets, including amortization related to future commitments (see Note 16), as of December 31, 2023 is as follows (in millions):
2024$73 
202561 
202644 
202735 
2028
16 
Thereafter24 
Total future amortization expense$253 
v3.24.0.1
Accrued Expenses and Other Current Liabilities (Tables)
12 Months Ended
Dec. 31, 2023
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,
20232022
Contingent consideration for acquisition, current portion
$30 $— 
Accrued estimated legal liabilities and legal fees21 
Other accrued expenses and other current liabilities71 69 
Total accrued expenses and other current liabilities$107 $90 
v3.24.0.1
Leases (Tables)
12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Components of Lease Expense
The components of our operating lease expense were as follows for the periods presented (in millions):
Year Ended December 31,
202320222021
Operating lease cost$35 $36 $38 
Variable lease cost18 18 13 
     Total lease cost$53 $54 $51 
Other information related to operating leases was as follows for the periods presented (in millions, except for years and percentages):
Year Ended December 31,
2023(1)
2022
2021(2)
Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives of $—, $9 and $— for the years ended December 31, 2023, 2022 and 2021, respectively
$42 $34 $43 
Right of use assets obtained in exchange for new operating lease obligations$(8)$19 $(36)
Weighted average remaining lease term for operating leases6 years7 years7 years
Weighted average discount rate for operating leases9.4 %8.2 %7.2 %
(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.
(2) During the year ended December 31, 2021, we amended our existing office space lease for our corporate headquarters in Seattle, Washington, whereby the renewal options for certain existing office space which we had previously included in the measurement of the lease liability and right of use asset were removed and we partially terminated our lease early for certain existing office space, resulting in a reduction of the related lease liability and right of use asset of approximately $44 million and $42 million, respectively. The lease term for certain other existing leased office space in Seattle was extended such that it now expires in 2032 and retains the two five-year renewal options, partially offsetting the reduction of the lease liability and right of use asset described above.
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, 2023 (in millions):
2024$46 
202521 
202622 
2027
21 
2028
18 
Thereafter47 
     Total lease payments175 
Less: Imputed interest(43)
     Present value of lease liabilities$132 
v3.24.0.1
Debt (Tables)
12 Months Ended
Dec. 31, 2023
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,
20232022
Borrowings under credit facilities
   Master repurchase agreements:
UBS AG
$45 $— 
JPMorgan Chase Bank, N.A.
40 — 
Atlas Securitized Products, L.P.
23 
Citibank, N.A.(1)
— 
   Warehouse line of credit:
Comerica Bank(2)
— 11 
Total borrowings under credit facilities
93 37 
Convertible senior notes
1.375% convertible senior notes due 2026
496 495 
2.75% convertible senior notes due 2025
504 560 
0.75% convertible senior notes due 2024
607 605 
Total convertible senior notes1,607 1,660 
Total debt$1,700 $1,697 
(1)On June 9, 2023, this agreement, which had a maximum borrowing capacity of $100 million, expired and was not renewed.
(2)On November 28, 2023, this agreement, which had a maximum borrowing capacity of $50 million, was terminated.
Schedule of Credit Facilities 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 AGOctober 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 
The following table summarizes certain details related to our warehouse line of credit and master repurchase agreements as of December 31, 2022 (in millions, except interest rates):
LenderMaturity DateMaximum Borrowing Capacity
Borrowings Outstanding
Available
Borrowing Capacity
Weighted Average Interest Rate
Credit Suisse AG, Cayman Islands
March 17, 2023$100 $23 $77 6.16 %
Citibank, N.A.
June 9, 2023100 97 6.18 %
Comerica Bank
June 24, 202350 11 39 6.22 %
Total$250 $37 $213 
Schedule of Components of Convertible Senior Notes
The following tables summarize certain details related to our outstanding convertible senior notes as of the dates presented or for the periods ended (in millions, except interest rates):
December 31, 2023December 31, 2022
Maturity DateAggregate Principal AmountStated Interest RateEffective Interest RateFirst Interest Payment DateSemi-Annual Interest Payment DatesUnamortized Debt Issuance CostsFair ValueUnamortized Debt Discount and Debt Issuance CostsFair Value
September 1, 2026$499 1.375 %1.57 %March 1, 2020March 1; September 1$$681 $$504 
May 15, 2025507 2.75 %3.20 %November 15, 2020May 15; November 15560 531 
September 1, 2024608 0.75 %1.02 %March 1, 2020March 1; September 1825 629 
Total$1,614 $$2,066 $12 $1,664 
Year Ended December 31, 2023Year Ended December 31, 2022Year Ended December 31, 2021
Maturity DateContractual Coupon InterestAmortization of Debt Issuance CostsInterest ExpenseContractual Coupon InterestAmortization of Debt Issuance CostsInterest ExpenseContractual Coupon InterestAmortization of Debt DiscountAmortization of Debt Issuance CostsInterest Expense
September 1, 2026$$$$$— $$$22 $$30 
May 15, 202516 18 16 19 16 27 44 
September 1, 202432 37 
July 1, 2023— — — — — — 12 
Total$28 $$33 $27 $$32 $30 $89 $$123 
The following table summarizes the conversion and redemption options with respect to the Notes:
Maturity DateEarly Conversion DateConversion RateConversion PriceOptional Redemption Date
September 1, 2026March 1, 202622.9830$43.51 September 5, 2023
May 15, 2025November 15, 202414.881067.20 May 22, 2023
September 1, 2024March 1, 202422.983043.51 September 5, 2022
The following table summarizes the activity for our convertible senior notes for the period presented (in millions, except for share amounts):
Year Ended December 31, 2021
2023 Notes2024 Notes2026 NotesTotal
Aggregate principal amount settled$374 $65 $$440 
Cash paid— — 
Shares of Class C capital stock issued4,752 1,485 28 6,265 
Total fair value of consideration transferred (1)$572 $200 $$776 
(Gain) loss on extinguishment of debt:
Consideration allocated to the liability component (2)$349 $53 $$403 
Carrying value of the liability component, net of unamortized debt discount and debt issuance costs334 51 386 
(Gain) loss on extinguishment of debt$15 $$— $17 
Consideration allocated to the equity component$223 $147 $$373 
(1) For convertible senior notes converted by note holders, the total fair value of consideration transferred includes the value of shares transferred to note holders using the daily volume weighted-average price of our Class C capital stock on the conversion date and an immaterial amount of cash paid in lieu of fractional shares. For convertible senior notes redeemed, the total fair value of consideration transferred comprises cash transferred to note holders to settle the related notes.
(2) Consideration allocated to the liability component is based on the fair value of the liability component immediately prior to settlement, which was calculated using a discounted cash flow analysis with a market interest rate of a similar liability that does not have an associated convertible feature.
The following table summarizes certain details related to the capped call confirmations with respect to certain of the convertible senior notes:
Maturity DateInitial Cap PriceCap Price Premium
September 1, 2026$80.5750 150 %
September 1, 202472.5175 125 %
v3.24.0.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Components of Income Tax (Benefit) Expense
The following table presents the components of our income tax expense (benefit) for the periods presented (in millions):
 Year Ended December 31,
 202320222021
Current income tax expense
State$$$
Foreign— — 
Total current income tax expense
Deferred income tax benefit:
Federal— — (3)
Total deferred income tax benefit— — (3)
Total income tax expense (benefit)$$$(1)
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,
 202320222021
Tax expense at federal statutory rate(21.0)%(21.0)%(21.0)%
State income taxes, net of federal tax benefit2.6 6.2 8.7 
Share-based compensation10.4 13.2 84.1 
Non-deductible executive compensation10.8 14.3 (7.7)
Research and development credits(6.8)(25.7)40.8 
Other(8.2)8.2 (4.9)
Valuation allowance15.0 7.4 (99.3)
Effective tax rate2.8 %2.6 %0.7 %
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,
 20232022
Deferred tax assets:
Federal and state net operating loss carryforwards$354 $433 
Capitalized research and development
208 100 
Research and development credits166 164 
Share-based compensation124 102 
Lease liabilities
33 43 
Debt discount on convertible notes11 18 
Accruals and reserves
Interest expense limitation
— 28 
Other deferred tax assets
Total deferred tax assets904 896 
Deferred tax liabilities:
Right of use assets(18)(31)
Intangible assets(13)(15)
Goodwill(6)(5)
Depreciation and amortization(4)(3)
Other deferred tax liabilities
(1)— 
Total deferred tax liabilities(42)(54)
Net deferred tax assets before valuation allowance862 842 
Less: valuation allowance(865)(843)
Net deferred tax liabilities $(3)$(1)
Changes in Unrecognized Tax Benefits
Changes for unrecognized tax benefits for the periods presented are as follows (in millions):
Balance at January 1, 2021$49 
Gross increases—current period tax positions17 
Gross increases—prior period tax positions
Balance at December 31, 2021$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 
v3.24.0.1
Shareholders' Equity (Tables)
12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Schedule of Repurchase Agreements
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,
20232022
Class A common stockClass C capital stock
Class A common stock
Class C capital stock
Shares repurchased2,212 7,311 4,052 18,161 
Weighted-average price per share$46.45 $43.94 $44.14 $42.30 
Total purchase price$103 $321 $179 $768 
v3.24.0.1
Share-Based Awards (Tables)
12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Summary of Option Award Activity
The following table summarizes option award activity for the year ended December 31, 2023:
Number
of Shares
Subject to
Existing
Options (in thousands)
Weighted-
Average
Exercise
Price Per
Share
Weighted-
Average
Remaining
Contractual
Life (Years)
Aggregate
Intrinsic
Value
(in millions)
Outstanding at January 1, 202328,598 $44.90 7.1$15 
Granted7,242 43.21 
Exercised(1,829)39.32 
Forfeited or cancelled(1,487)59.27 
Outstanding at December 31, 202332,524 44.18 6.9495 
Vested and exercisable at December 31, 202320,691 44.06 5.9321 
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,
202320222021
Expected volatility
55% – 62%
55% – 61%
52% – 58%
Risk-free interest rate
3.75% – 4.36%
1.94% – 3.95%
0.57% – 1.15%
Weighted-average expected life
5.3 – 6.5 years
4.5 – 6.0 years
4.5 – 5.8 years
Weighted-average fair value of options granted$24.43$23.25$54.55
Summary of Restricted Stock Units Activity
The following table summarizes activity for all restricted stock units for the year ended December 31, 2023:
Restricted
Stock Units (in thousands)
Weighted-
Average Grant-
Date Fair
Value
Unvested outstanding at January 1, 202310,930 $46.85 
Granted8,693 43.88 
Vested(6,400)45.57 
Forfeited(1,185)46.42 
Unvested outstanding at December 31, 202312,038 45.42 
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,
202320222021
Cost of revenue$16 $16 $
Sales and marketing70 63 42 
Technology and development166 165 103 
General and administrative199 189 122 
Impairment and restructuring costs— 
Share-based compensation - continuing operations
451 435 277 
Share-based compensation - discontinued operations
— 16 40 
Total share-based compensation$451 $451 $317 
v3.24.0.1
Net Loss Per Share (Tables)
12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Antidilutive Securities Excluded from Computation of Earnings Per Share The following table presents the maximum number of shares and conversion price per share of Class C capital stock for each of the Notes based on the aggregate principal amount outstanding as of December 31, 2023 (in thousands, except per share amounts):
Maturity DateSharesConversion Price per Share
September 1, 202611,464 $43.51 
May 15, 20257,552 67.20 
September 1, 202413,982 43.51 
For the periods presented, the following table reconciles the denominators used in the basic and diluted net loss and net income (loss) from continuing operations per share calculations (in thousands):
 Year Ended December 31,
 202320222021
Denominator for basic calculation233,575 242,163 249,937 
Effect of dilutive securities:
Option awards— — 9,304 
Unvested restricted stock units— — 2,585 
Denominator for dilutive calculation233,575 242,163 261,826 
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 income (loss) from continuing operations per share because their effect would have been antidilutive (in thousands):
Year Ended December 31,
202320222021
Weighted-average Class C capital stock option awards outstanding
21,021 15,759 2,455 
Weighted-average Class C capital stock restricted stock units outstanding
13,581 9,015 1,173 
Class C capital stock issuable upon conversion of the convertible notes maturing in 2023, 2024, 2025 and 2026
33,718 33,855 36,540 
Total Class C capital stock equivalents
68,320 58,629 40,168 
v3.24.0.1
Commitments and Contingencies (Tables)
12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Purchase Commitments for Content Related to Mobile Applications and Websites The amounts due for non-cancelable purchase commitments as of December 31, 2023 are as follows (in millions):
Purchase Obligations
2024$100 
202585 
202667 
202760 
Total future purchase commitments$312 
v3.24.0.1
Revenue and Contract Balances (Tables)
12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table presents our revenue disaggregated by category for the periods presented (in millions):
 Year Ended December 31,
202320222021
Residential
$1,452 $1,522 $1,572 
Rentals
357 274 264 
Mortgages
96 119 246 
Other
40 43 50 
Total revenue$1,945 $1,958 $2,132 
v3.24.0.1
Summary of Significant Accounting Policies - Additional Information (Details)
$ in Millions
12 Months Ended
Dec. 31, 2023
USD ($)
unit
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Schedule of Significant Accounting Policies [Line Items]      
Amortization period for capitalized contract costs 3 years    
Number of reporting units | unit 1    
Real estate transaction close period 2 years    
Advertising costs $ 137 $ 144 $ 206
Technology and development 560 498 421
Technology and development      
Schedule of Significant Accounting Policies [Line Items]      
Technology and development $ 545 $ 495 $ 358
Minimum      
Schedule of Significant Accounting Policies [Line Items]      
Lessee, operating lease, remaining lease term 1 year    
Option to extend lease 5 years    
Useful life of capitalized purchased content asset 3 years    
Maximum      
Schedule of Significant Accounting Policies [Line Items]      
Lessee, operating lease, remaining lease term 9 years    
Option to extend lease 10 years    
Useful life of capitalized purchased content asset 7 years    
Computer equipment | Minimum      
Schedule of Significant Accounting Policies [Line Items]      
Expected useful lives 3 years    
Office Equipment, Furniture, Fixtures | Minimum      
Schedule of Significant Accounting Policies [Line Items]      
Expected useful lives 5 years    
Office Equipment, Furniture, Fixtures | Maximum      
Schedule of Significant Accounting Policies [Line Items]      
Expected useful lives 7 years    
Software Development | Minimum      
Schedule of Significant Accounting Policies [Line Items]      
Expected useful lives 1 year    
Software Development | Maximum      
Schedule of Significant Accounting Policies [Line Items]      
Expected useful lives 5 years    
v3.24.0.1
Discontinued Operations - Major Classes of Assets and Liabilities (Details) - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Net loss from discontinued operations, net of income taxes $ 0 $ (13) $ (630)
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 6,015
Cost of revenue   4,023 6,071
Gross profit (loss)   226 (56)
Sales and marketing   153 361
Technology and development   6 53
General and administrative   10 35
Impairment and restructuring costs   25 62
Total operating expenses   194 511
Income (loss) from discontinued operations   32 (567)
Loss on extinguishment of debt   (21) 0
Other income, net   13 3
Interest expense   (36) (64)
Loss from discontinued operations before income taxes   (12) (628)
Income tax expense   (1) (2)
Net loss from discontinued operations, net of income taxes   $ (13) $ (630)
Basic (usd per share)   $ (0.05) $ (2.52)
Diluted (usd per share)   $ (0.05) $ (2.41)
v3.24.0.1
Discontinued Operations - Non-Cash Items and Capital Expenditures (Details) - Discontinued Operations, Disposed Of By Means Other Than Sale, Wind Down - Zillow Offers Operations - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Amortization of debt discount and debt issuance costs $ 21 $ 11
Loss on debt extinguishment 21 0
Share-based compensation 16 40
Inventory valuation adjustment 9 408
Depreciation and amortization 7 10
Capital expenditures 1 6
Issuance (settlement) of beneficial interests in securitizations $ (79) $ 63
v3.24.0.1
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 $ 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
v3.24.0.1
Fair Value Measurements - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 08, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash paid for acquisition, net   $ 433 $ 4 $ 497
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      
Contingent consideration $ 81      
v3.24.0.1
Fair Value Measurements - Range and Weighted Average Pull-Through Rates (Details)
Dec. 31, 2023
Dec. 31, 2022
Minimum | Discount Rate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.0658  
Minimum | Probability of Achieving Performance Metrics    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.88  
Minimum | IRLCs - other current assets | Not Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset, measurement input 0.45 0.47
Maximum | Discount Rate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.0713  
Maximum | Probability of Achieving Performance Metrics    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.97  
Maximum | IRLCs - other current assets | Not Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset, measurement input 1 1
Weighted average | Discount Rate    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.0688  
Weighted average | Probability of Achieving Performance Metrics    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Business combination, contingent consideration, liability, measurement input 0.93  
Weighted average | IRLCs - other current assets | Not Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative asset, measurement input 0.85 0.87
v3.24.0.1
Fair Value Measurements - Fair Value of Cash Equivalents and Investments (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments: $ 1,318  
Mortgage loans held for sale 100 $ 41
Total assets measured at fair value on a recurring basis 2,863 3,276
Contingent consideration - accrued expenses and other current liabilities 30  
Contingent consideration - other long-term liabilities 51  
Total liabilities measured at fair value on a recurring basis 82  
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mortgage loans held for sale 0 0
Total assets measured at fair value on a recurring basis 1,440 1,338
Contingent consideration - accrued expenses and other current liabilities 0  
Contingent consideration - other long-term liabilities 0  
Total liabilities measured at fair value on a recurring basis 0  
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mortgage loans held for sale 100 41
Total assets measured at fair value on a recurring basis 1,420 1,938
Contingent consideration - accrued expenses and other current liabilities 0  
Contingent consideration - other long-term liabilities 0  
Total liabilities measured at fair value on a recurring basis 1  
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mortgage loans held for sale 0 0
Total assets measured at fair value on a recurring basis 3 0
Contingent consideration - accrued expenses and other current liabilities 30  
Contingent consideration - other long-term liabilities 51  
Total liabilities measured at fair value on a recurring basis 81  
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,440 1,338
Money market funds | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,440 1,338
Money market funds | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Money market funds | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
U.S. government treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 2  
Short-term investments: 1,143 1,716
U.S. government treasury securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0  
Short-term investments: 0 0
U.S. government treasury securities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 2  
Short-term investments: 1,143 1,716
U.S. government treasury securities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0  
Short-term investments: 0 0
Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments: 161 161
Corporate bonds | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments: 0 0
Corporate bonds | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments: 161 161
Corporate bonds | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments: 0 0
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments: 0 10
Commercial paper | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments:   0
Commercial paper | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments:   10
Commercial paper | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments:   0
U.S. government agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments: 14 9
U.S. government agency securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments: 0
U.S. government agency securities | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments: 14 9
U.S. government agency securities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments: 0
IRLCs - other current assets | Not Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Forward contracts - other current assets 3  
IRLCs - other current assets | Level 1 | Not Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Forward contracts - other current assets 0  
IRLCs - other current assets | Level 2 | Not Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Forward contracts - other current assets  
IRLCs - other current assets | Level 3 | Not Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Forward contracts - other current assets 3  
Forward contracts - accrued expenses and other current liabilities | Not Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Forward contracts - other current assets   1
Forward contracts - accrued expenses and other current liabilities 1  
Forward contracts - accrued expenses and other current liabilities | Level 1 | Not Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Forward contracts - other current assets   0
Forward contracts - accrued expenses and other current liabilities  
Forward contracts - accrued expenses and other current liabilities | Level 2 | Not Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Forward contracts - other current assets   1
Forward contracts - accrued expenses and other current liabilities 1  
Forward contracts - accrued expenses and other current liabilities | Level 3 | Not Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Forward contracts - other current assets   $ 0
Forward contracts - accrued expenses and other current liabilities  
v3.24.0.1
Fair Value Measurements - Notional Amounts (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
IRLCs - other current assets    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative, notional amount $ 167 $ 62
Forward contracts - accrued expenses and other current liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Derivative, notional amount $ 218 $ 90
v3.24.0.1
Cash and Cash Equivalents, Investments and Restricted Cash - Amortized Cost, Gross Unrealized Gains and Losses, and Estimated Fair Market Value of Cash and Cash Equivalents and Available-for-Sale Investments (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Cash and Cash Equivalents, at Carrying Value [Abstract]    
Cash and cash equivalents $ 1,492 $ 1,466
Short-term investments:    
Amortized Cost 1,323  
Estimated Fair Market Value 1,318  
Restricted cash 3 2
Amortized Cost 2,818 3,380
Estimated Fair Market Value 2,813 3,364
U.S. government treasury securities    
Short-term investments:    
Amortized Cost 1,149 1,731
Estimated Fair Market Value 1,143 1,716
Corporate bonds    
Short-term investments:    
Amortized Cost 160 162
Estimated Fair Market Value 161 161
U.S. government agency securities    
Short-term investments:    
Amortized Cost 14 9
Estimated Fair Market Value 14 9
Debt securities, available-for-sale, accumulated gross unrealized loss, before tax 6 15
Commercial paper    
Short-term investments:    
Amortized Cost 0 10
Estimated Fair Market Value 0 10
Cash    
Cash and Cash Equivalents, at Carrying Value [Abstract]    
Cash and cash equivalents 50 128
Money market funds    
Cash and Cash Equivalents, at Carrying Value [Abstract]    
Cash and cash equivalents 1,440 1,338
U.S. government treasury securities    
Cash and Cash Equivalents, at Carrying Value [Abstract]    
Cash and cash equivalents $ 2 $ 0
v3.24.0.1
Cash and Cash Equivalents, Investments and Restricted Cash - Available-for-sale Investments By Contractual Maturity Date (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Amortized Cost  
Due in one year or less $ 472
Due after one year 851
Amortized Cost 1,323
Estimated Fair Market Value  
Due in one year or less 470
Due after one year 848
Total $ 1,318
v3.24.0.1
Property and Equipment, net - Detail of Property and Equipment (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Property and equipment $ 539 $ 430
Less: accumulated amortization and depreciation (211) (159)
Property and equipment, net 328 271
Website development costs    
Property, Plant and Equipment [Line Items]    
Property and equipment 452 291
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment 48 90
Office equipment, furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment 20 24
Computer equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment 19 18
Construction-in-progress    
Property, Plant and Equipment [Line Items]    
Property and equipment $ 0 $ 7
v3.24.0.1
Property and Equipment, net - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]      
Amortization and depreciation expense related to property and equipment other than website development costs $ 24 $ 25 $ 26
Capitalization of website development costs 191 143 82
Technology and development      
Property, Plant and Equipment [Line Items]      
Amortization of website development costs and intangible assets included in technology and development 53 58 56
Technology and development | Software Development      
Property, Plant and Equipment [Line Items]      
Amortization of website development costs and intangible assets included in technology and development $ 110 $ 67 $ 36
v3.24.0.1
Acquisitions - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 08, 2023
Sep. 11, 2023
Jul. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]            
Cash paid for acquisition, net       $ 433 $ 4 $ 497
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          
Total preliminary purchase price $ 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      
Total preliminary purchase price     $ 35      
Spruce            
Schedule of Equity Method Investments [Line Items]            
Cash paid for acquisition, net   $ 19        
v3.24.0.1
Acquisitions - Preliminary Purchase Price (Details) - USD ($)
$ in Millions
Dec. 08, 2023
Jul. 31, 2023
Dec. 31, 2023
Sep. 11, 2023
Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]          
Goodwill     $ 2,817   $ 2,374
Follow Up Boss          
Schedule of Equity Method Investments [Line Items]          
Cash $ 403        
Contingent consideration 81        
Total preliminary purchase price 484        
Cash and cash equivalents 4        
Goodwill 401        
Intangible assets 86        
Other assets 1        
Deferred revenue (7)        
Other liabilities (1)        
Total preliminary purchase price $ 484        
Aryeo          
Schedule of Equity Method Investments [Line Items]          
Total preliminary purchase price   $ 35      
Cash and cash equivalents   3      
Goodwill   26      
Intangible assets   11      
Other assets   0      
Liabilities   (2)      
Total preliminary purchase price   $ 38      
Spruce          
Schedule of Equity Method Investments [Line Items]          
Cash and cash equivalents       $ 5  
Goodwill       16  
Intangible assets       2  
Other assets       2  
Liabilities       (1)  
Total preliminary purchase price       $ 24  
v3.24.0.1
Acquisitions - Preliminary Estimated Fair Value and Useful Lives (Details) - USD ($)
$ in Millions
Dec. 08, 2023
Sep. 11, 2023
Jul. 31, 2023
Aryeo      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Preliminary Estimated Fair Value     $ 11
Aryeo | Developed technology      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Preliminary Estimated Fair Value     $ 2
Estimated Useful Life (in years)     3 years
Aryeo | Customer relationships      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Preliminary Estimated Fair Value     $ 5
Estimated Useful Life (in years)     5 years
Aryeo | Purchased content      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Preliminary Estimated Fair Value     $ 4
Estimated Useful Life (in years)     3 years
Spruce      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Preliminary Estimated Fair Value   $ 2  
Spruce | Developed technology      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Preliminary Estimated Fair Value   $ 2  
Estimated Useful Life (in years)   3 years  
Follow Up Boss      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Preliminary Estimated Fair Value $ 86    
Follow Up Boss | Developed technology      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Preliminary Estimated Fair Value $ 50    
Estimated Useful Life (in years) 4 years    
Follow Up Boss | Customer relationships      
Finite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items]      
Preliminary Estimated Fair Value $ 34    
Estimated 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]      
Preliminary Estimated Fair Value $ 2    
Estimated Useful Life (in years) 7 years    
v3.24.0.1
Intangible Assets, net - Intangible Assets (Detail) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Cost $ 350 $ 215
Accumulated Amortization (109) (61)
Net 241 154
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Cost 98 59
Accumulated Amortization (19) (10)
Net 79 49
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Cost 104 49
Accumulated Amortization (30) (15)
Net 74 34
Software    
Finite-Lived Intangible Assets [Line Items]    
Cost 84 54
Accumulated Amortization (29) (15)
Net 55 39
Trade names and trademarks    
Finite-Lived Intangible Assets [Line Items]    
Cost 47 45
Accumulated Amortization (20) (15)
Net 27 30
Purchased content    
Finite-Lived Intangible Assets [Line Items]    
Cost 17 8
Accumulated Amortization (11) (6)
Net $ 6 $ 2
v3.24.0.1
Intangible Assets, net - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Indefinite-lived Intangible Assets [Line Items]      
Impairment and restructuring costs $ 16,000,000 $ 0 $ 57,000,000
Trade names and trademarks | Trulia      
Indefinite-lived Intangible Assets [Line Items]      
Impairment and restructuring costs 0 0 0
Technology and development      
Indefinite-lived Intangible Assets [Line Items]      
Amortization of website development costs and intangible assets included in technology and development $ 53,000,000 $ 58,000,000 $ 56,000,000
v3.24.0.1
Intangible Assets, net - Estimated Future Amortization Expense for Intangible Assets (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2024 $ 73
2025 61
2026 44
2027 35
2028 16
Thereafter 24
Total future amortization expense $ 253
v3.24.0.1
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Accrued Expenses and Other Current Liabilities [Line Items]    
Accrued expenses and other current liabilities $ 107 $ 90
Contingent consideration for acquisition, current portion    
Accrued Expenses and Other Current Liabilities [Line Items]    
Accrued expenses and other current liabilities 30 0
Accrued estimated legal liabilities and legal fees    
Accrued Expenses and Other Current Liabilities [Line Items]    
Accrued expenses and other current liabilities 6 21
Other accrued expenses and other current liabilities    
Accrued Expenses and Other Current Liabilities [Line Items]    
Accrued expenses and other current liabilities $ 71 $ 69
v3.24.0.1
Leases - Components of Lease Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]      
Operating lease cost $ 35 $ 36 $ 38
Variable lease cost 18 18 13
Total lease cost $ 53 $ 54 $ 51
v3.24.0.1
Leases - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]      
Sublease income $ 10 $ 10 $ 7
Operating lease, impairment 16    
Sublease income to be received 30    
Sublease income to be received, year one 30    
Sublease income to be received, year two 30    
Sublease income to be received, year three 30    
Sublease income to be received, year four 30    
Sublease income to be received, year five and thereafter $ 30    
v3.24.0.1
Leases - Other Information Obtained (Details)
$ in Millions
12 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Segment
Lessee, Lease, Description [Line Items]      
Cash paid for amounts included in the measurement of operating lease liabilities, net of lease incentives of $—, $9 and $— for the years ended December 31, 2023, 2022 and 2021, respectively $ 42 $ 34 $ 43
Lease incentive 0 9 0
Right of use assets obtained in exchange for new operating lease obligations $ (8) $ 19 $ (36)
Weighted average remaining lease term for operating leases 6 years 7 years 7 years
Weighted average discount rate for operating leases 9.40% 8.20% 7.20%
Decrease in operating lease liabilities $ 30 $ 21 $ 29
Operating lease, right-of-use asset, accelerated amortization 14    
Office Building      
Lessee, Lease, Description [Line Items]      
Decrease in operating lease liabilities 8   44
Decrease in right of use asset $ 8   $ 42
Number of renewal options | Segment     2
Lessor, operating lease, renewal term     5 years
v3.24.0.1
Leases - Schedule of Maturities for Operating Lease Liabilities (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Leases [Abstract]  
2024 $ 46
2025 21
2026 22
2027 21
2028 18
Thereafter 47
Total lease payments 175
Less: Imputed interest (43)
Present value of lease liabilities $ 132
v3.24.0.1
Debt - Schedule of Carrying Value of Debt (Details) - USD ($)
Dec. 31, 2023
Oct. 11, 2023
Jun. 09, 2023
Jun. 01, 2023
Dec. 31, 2022
Debt Instrument [Line Items]          
Total debt $ 1,700,000,000       $ 1,697,000,000
Convertible Debt          
Debt Instrument [Line Items]          
Total convertible senior notes 1,607,000,000       1,660,000,000
Convertible Debt | 2026 Notes          
Debt Instrument [Line Items]          
Total convertible senior notes $ 496,000,000       495,000,000
Stated Interest Rate 1.375%        
Convertible Debt | 2.75% convertible senior notes due 2025          
Debt Instrument [Line Items]          
Total convertible senior notes $ 504,000,000       560,000,000
Stated Interest Rate 2.75%        
Convertible Debt | 2024 Notes          
Debt Instrument [Line Items]          
Total convertible senior notes $ 607,000,000       605,000,000
Stated Interest Rate 0.75%        
Line of Credit          
Debt Instrument [Line Items]          
Repurchase agreements $ 93,000,000       37,000,000
Maximum Borrowing Capacity 250,000,000       250,000,000
Line of Credit | Mortgages Segment          
Debt Instrument [Line Items]          
Warehouse line of credit: 93,000,000       37,000,000
UBS AG | Line of Credit          
Debt Instrument [Line Items]          
Repurchase agreements 45,000,000        
Maximum Borrowing Capacity 100,000,000 $ 100,000,000      
UBS AG | Line of Credit | Mortgages Segment          
Debt Instrument [Line Items]          
Repurchase agreements         0
JPMorgan Chase Bank, N.A. | Line of Credit          
Debt Instrument [Line Items]          
Repurchase agreements 40,000,000        
Maximum Borrowing Capacity 100,000,000     $ 100,000,000  
JPMorgan Chase Bank, N.A. | Line of Credit | Mortgages Segment          
Debt Instrument [Line Items]          
Repurchase agreements 40,000,000       0
Atlas Securitized Products, L.P. | Line of Credit          
Debt Instrument [Line Items]          
Repurchase agreements 8,000,000        
Maximum Borrowing Capacity 50,000,000        
Atlas Securitized Products, L.P. | Line of Credit | Mortgages Segment          
Debt Instrument [Line Items]          
Repurchase agreements 8,000,000       23,000,000
Citibank, N.A. | Line of Credit          
Debt Instrument [Line Items]          
Repurchase agreements         3,000,000
Maximum Borrowing Capacity         100,000,000
Citibank, N.A. | Line of Credit | Mortgages Segment          
Debt Instrument [Line Items]          
Repurchase agreements 0        
Maximum Borrowing Capacity     $ 100,000,000    
Comerica Bank | Line of Credit          
Debt Instrument [Line Items]          
Repurchase agreements         11,000,000
Maximum Borrowing Capacity         50,000,000
Comerica Bank | Line of Credit | Mortgages Segment          
Debt Instrument [Line Items]          
Warehouse line of credit: 0       $ 11,000,000
Maximum Borrowing Capacity $ 50,000,000        
v3.24.0.1
Debt - Schedule of Credit Facilities (Details) - Line of Credit - USD ($)
Dec. 31, 2023
Oct. 11, 2023
Jun. 01, 2023
Dec. 31, 2022
Debt Instrument [Line Items]        
Maximum Borrowing Capacity $ 250,000,000     $ 250,000,000
Borrowings Outstanding 93,000,000     37,000,000
Available Borrowing Capacity 157,000,000     213,000,000
UBS AG        
Debt Instrument [Line Items]        
Maximum Borrowing Capacity 100,000,000 $ 100,000,000    
Borrowings Outstanding 45,000,000      
Available Borrowing Capacity $ 55,000,000      
Weighted Average Interest Rate 7.08%      
JPMorgan Chase Bank, N.A.        
Debt Instrument [Line Items]        
Maximum Borrowing Capacity $ 100,000,000   $ 100,000,000  
Borrowings Outstanding 40,000,000      
Available Borrowing Capacity $ 60,000,000      
Weighted Average Interest Rate 7.05%      
Atlas Securitized Products, L.P.        
Debt Instrument [Line Items]        
Maximum Borrowing Capacity $ 50,000,000      
Borrowings Outstanding 8,000,000      
Available Borrowing Capacity $ 42,000,000      
Weighted Average Interest Rate 7.37%      
JPMorgan Chase Bank, N.A.        
Debt Instrument [Line Items]        
Maximum Borrowing Capacity       100,000,000
Borrowings Outstanding       23,000,000
Available Borrowing Capacity       $ 77,000,000
Weighted Average Interest Rate       6.16%
Citibank, N.A.        
Debt Instrument [Line Items]        
Maximum Borrowing Capacity       $ 100,000,000
Borrowings Outstanding       3,000,000
Available Borrowing Capacity       $ 97,000,000
Weighted Average Interest Rate       6.18%
Comerica Bank        
Debt Instrument [Line Items]        
Maximum Borrowing Capacity       $ 50,000,000
Borrowings Outstanding       11,000,000
Available Borrowing Capacity       $ 39,000,000
Weighted Average Interest Rate       6.22%
v3.24.0.1
Debt - Credit Facilities - Narrative (Detail) - USD ($)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Oct. 11, 2023
Jun. 01, 2023
Debt Instrument [Line Items]          
Gain (loss) on extinguishment of debt $ 1,000,000 $ 0 $ (17,000,000)    
2.75% convertible senior notes due 2025          
Debt Instrument [Line Items]          
Gain (loss) on extinguishment of debt 1,000,000        
Line of Credit          
Debt Instrument [Line Items]          
Maximum Borrowing Capacity 250,000,000 250,000,000      
Borrowings Outstanding 93,000,000 37,000,000      
Atlas Securitized Products, L.P., JPMorgan Chase Bank, N.A, UBS AG, Citibank, N.A.          
Debt Instrument [Line Items]          
Borrowings Outstanding 99,000,000 28,000,000      
JPMorgan Chase Bank, N.A. | Line of Credit          
Debt Instrument [Line Items]          
Maximum Borrowing Capacity 100,000,000       $ 100,000,000
Committed amount under repurchase agreement         $ 25,000,000
Borrowings Outstanding 40,000,000        
JPMorgan Chase Bank, N.A. | Mortgages Segment | Line of Credit          
Debt Instrument [Line Items]          
Borrowings Outstanding 40,000,000 0      
UBS AG | Line of Credit          
Debt Instrument [Line Items]          
Maximum Borrowing Capacity 100,000,000     $ 100,000,000  
Borrowings Outstanding $ 45,000,000        
UBS AG | Mortgages Segment | Line of Credit          
Debt Instrument [Line Items]          
Borrowings Outstanding   $ 0      
v3.24.0.1
Debt - Convertible Senior Notes Narrative (Details)
$ in Millions
12 Months Ended
Dec. 31, 2023
USD ($)
day
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Debt Instrument [Line Items]        
Shareholders equity $ 4,526 $ 4,482 $ 5,341 $ 4,742
Gain (loss) on extinguishment of debt $ 1 0 (17)  
Convertible Debt        
Debt Instrument [Line Items]        
Gain (loss) on extinguishment of debt     (17)  
Convertible Senior Notes Due 2024, 2025, 2026 | Convertible Debt        
Debt Instrument [Line Items]        
Repurchase price percentage of principal amount 100.00%      
Debt instrument, convertible threshold percentage 130.00%      
Debt instrument, convertible threshold trading days | day 20      
Debt instrument, threshold consecutive trading days | day 30      
2.75% convertible senior notes due 2025        
Debt Instrument [Line Items]        
Debt instrument, repurchased face amount $ 58      
Repayments of convertible debt 57      
Gain (loss) on extinguishment of debt 1      
Accumulated Deficit        
Debt Instrument [Line Items]        
Shareholders equity $ (1,770) $ (1,612) (1,667) $ (1,139)
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  
v3.24.0.1
Debt - Schedule of Convertible Senior Notes (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]      
Interest Expense $ 36 $ 35 $ 128
Convertible Debt      
Debt Instrument [Line Items]      
Aggregate Principal Amount 1,614    
Unamortized Debt Issuance Costs 7 12  
Fair Value 2,066 1,664  
Contractual Coupon Interest 28 27 30
Amortization of Debt Discount     89
Amortization of Debt Issuance Costs 5 5 4
Interest Expense 33 32 123
Convertible Debt | 1.375% convertible senior notes due 2026      
Debt Instrument [Line Items]      
Aggregate Principal Amount $ 499    
Stated Interest Rate 1.375%    
Effective Interest Rate 1.57%    
Unamortized Debt Issuance Costs $ 3 4  
Fair Value 681 504  
Contractual Coupon Interest 7 7 7
Amortization of Debt Discount     22
Amortization of Debt Issuance Costs 1 0 1
Interest Expense 8 7 30
Convertible Debt | 2.75% convertible senior notes due 2025      
Debt Instrument [Line Items]      
Aggregate Principal Amount $ 507    
Stated Interest Rate 2.75%    
Effective Interest Rate 3.20%    
Unamortized Debt Issuance Costs $ 3 5  
Fair Value 560 531  
Contractual Coupon Interest 16 16 16
Amortization of Debt Discount     27
Amortization of Debt Issuance Costs 2 3 1
Interest Expense 18 19 44
Convertible Debt | 2024 Notes      
Debt Instrument [Line Items]      
Aggregate Principal Amount $ 608    
Stated Interest Rate 0.75%    
Effective Interest Rate 1.02%    
Unamortized Debt Issuance Costs $ 1 3  
Fair Value 825 629  
Contractual Coupon Interest 5 4 4
Amortization of Debt Discount     32
Amortization of Debt Issuance Costs 2 2 1
Interest Expense 7 6 37
Convertible Debt | 2023 Notes      
Debt Instrument [Line Items]      
Contractual Coupon Interest 0 0 3
Amortization of Debt Discount     8
Amortization of Debt Issuance Costs 0 0 1
Interest Expense $ 0 $ 0 $ 12
v3.24.0.1
Debt - Summary of Conversion and Redemption (Details) - Convertible Debt
12 Months Ended
Dec. 31, 2023
$ / shares
2026 Notes  
Debt Instrument [Line Items]  
Conversion price per share (usd per share) $ 43.51
Conversion Rate 0.0229830
2.75% convertible senior notes due 2025  
Debt Instrument [Line Items]  
Conversion price per share (usd per share) $ 67.20
Conversion Rate 0.0148810
2024 Notes  
Debt Instrument [Line Items]  
Conversion price per share (usd per share) $ 43.51
Conversion Rate 0.0229830
v3.24.0.1
Debt - Summary of Convertible Debt (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]      
Cash paid $ 56 $ 1,158 $ 1
(Gain) loss on extinguishment of debt:      
Gain (loss) on extinguishment of debt $ (1) $ 0 17
Convertible Debt      
Debt Instrument [Line Items]      
Aggregate principal amount settled     440
Cash paid     $ 1
Shares of Class C capital stock issued     6,265,000,000
Total fair value of consideration transferred     $ 776
(Gain) loss on extinguishment of debt:      
Consideration allocated to liability component     403
Carrying value of the liability component, net of unamortized debt discount and debt issuance costs     386
Gain (loss) on extinguishment of debt     17
Consideration allocated to the equity component     373
2023 Notes | Convertible Debt      
Debt Instrument [Line Items]      
Aggregate principal amount settled     374
Cash paid     $ 1
Shares of Class C capital stock issued     4,752,000,000
Total fair value of consideration transferred     $ 572
(Gain) loss on extinguishment of debt:      
Consideration allocated to liability component     349
Carrying value of the liability component, net of unamortized debt discount and debt issuance costs     334
Gain (loss) on extinguishment of debt     15
Consideration allocated to the equity component     223
2024 Notes | Convertible Debt      
Debt Instrument [Line Items]      
Aggregate principal amount settled     65
Cash paid     $ 0
Shares of Class C capital stock issued     1,485,000,000
Total fair value of consideration transferred     $ 200
(Gain) loss on extinguishment of debt:      
Consideration allocated to liability component     53
Carrying value of the liability component, net of unamortized debt discount and debt issuance costs     51
Gain (loss) on extinguishment of debt     2
Consideration allocated to the equity component     147
2026 Notes | Convertible Debt      
Debt Instrument [Line Items]      
Aggregate principal amount settled     1
Cash paid     $ 0
Shares of Class C capital stock issued     28,000,000
Total fair value of consideration transferred     $ 4
(Gain) loss on extinguishment of debt:      
Consideration allocated to liability component     1
Carrying value of the liability component, net of unamortized debt discount and debt issuance costs     1
Gain (loss) on extinguishment of debt     0
Consideration allocated to the equity component     $ 3
v3.24.0.1
Debt - Capped Call Confirmations (Details) - Convertible Debt
12 Months Ended
Dec. 31, 2023
$ / shares
1.375% convertible senior notes due 2026  
Debt Instrument [Line Items]  
Initial Cap Price (usd per share) $ 80.5750
Cap Price Premium 150.00%
2024 Notes  
Debt Instrument [Line Items]  
Initial Cap Price (usd per share) $ 72.5175
Cap Price Premium 125.00%
v3.24.0.1
Income Taxes - Additional Information (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Schedule Of Income Tax [Line Items]        
Income tax benefit (expense) $ (4) $ (3) $ 1  
Income tax reconciliation change in deferred tax assets valuation allowance 22 97    
Effective income tax rate reconciliation, state and local income taxes, amount     2  
Unrecognized tax benefits 95 90 75 $ 49
Research And Development        
Schedule Of Income Tax [Line Items]        
Net operating loss carryforwards 166 164    
Federal        
Schedule Of Income Tax [Line Items]        
Net operating loss carryforwards 1,400 1,800    
State        
Schedule Of Income Tax [Line Items]        
Net operating loss carryforwards $ 56 $ 63    
ShowingTime.com, Inc.        
Schedule Of Income Tax [Line Items]        
Income tax reconciliation change in deferred tax assets valuation allowance     $ (3)  
v3.24.0.1
Income Taxes - Components of Income Tax (Benefit) Expense (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current income tax expense      
State $ 4 $ 2 $ 2
Foreign 0 1 0
Total current income tax expense 4 3 2
Deferred income tax benefit:      
Federal 0 0 (3)
Total deferred income tax benefit 0 0 (3)
Total income tax expense (benefit) $ 4 $ 3 $ (1)
v3.24.0.1
Income Taxes - Reconciliation of Federal Statutory Rate and Effective Tax Rate (Details)
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Tax expense at federal statutory rate (21.00%) (21.00%) (21.00%)
State income taxes, net of federal tax benefit 2.60% 6.20% 8.70%
Share-based compensation 10.40% 13.20% 84.10%
Non-deductible executive compensation 10.80% 14.30% (7.70%)
Research and development credits (6.80%) (25.70%) 40.80%
Other (8.20%) 8.20% (4.90%)
Valuation allowance 15.00% 7.40% (99.30%)
Effective tax rate 2.80% 2.60% 0.70%
v3.24.0.1
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets:    
Federal and state net operating loss carryforwards $ 354 $ 433
Capitalized research and development 208 100
Research and development credits 166 164
Share-based compensation 124 102
Lease liabilities 33 43
Debt discount on convertible notes 11 18
Accruals and reserves 5 3
Interest expense limitation 0 28
Other deferred tax assets 3 5
Total deferred tax assets 904 896
Deferred tax liabilities:    
Right of use assets (18) (31)
Intangible assets (13) (15)
Goodwill (6) (5)
Depreciation and amortization (4) (3)
Other deferred tax liabilities (1) 0
Total deferred tax liabilities (42) (54)
Net deferred tax assets before valuation allowance 862 842
Less: valuation allowance (865) (843)
Net deferred tax liabilities $ (3) $ (1)
v3.24.0.1
Income Taxes - Changes in Unrecognized Tax Benefits (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Unrecognized tax benefits, beginning balance $ 90 $ 75 $ 49
Gross increases—current period tax positions 9 17 17
Gross increases—prior period tax positions 3 4 9
Gross decreases—prior period tax positions (7) (6)  
Unrecognized tax benefits, ending balance $ 95 $ 90 $ 75
v3.24.0.1
Shareholders' Equity - Additional Information (Detail)
12 Months Ended
Feb. 17, 2021
USD ($)
Dec. 31, 2023
USD ($)
Vote
shares
Dec. 31, 2022
shares
Dec. 31, 2021
shares
Jul. 31, 2023
USD ($)
Jul. 30, 2023
USD ($)
Class of Stock [Line Items]            
Preferred stock, issued (in shares)   0 0      
Preferred stock, outstanding (in shares)   0 0      
Stock repurchase program, authorized amount | $         $ 2,500,000,000 $ 1,800,000,000
Stock repurchase program, additional authorized amount | $         $ 750,000,000  
Stock repurchase program, remaining authorized repurchase amount | $   $ 770,000,000        
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        
Class C Capital Stock | Equity Distribution Agreement            
Class of Stock [Line Items]            
Sale of stock, maximum consideration on transaction | $ $ 1,000,000,000          
Shares issued and sold (in shares)   0 0      
v3.24.0.1
Shareholders' Equity - Summary of Stock Repurchase Program (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Class A common stock    
Class of Stock [Line Items]    
Shares repurchased (in shares) 2,212 4,052,000
Weighted average price per share (in USD per share) $ 46.45 $ 44.14
Total purchase price $ 103 $ 179
Class C capital stock    
Class of Stock [Line Items]    
Shares repurchased (in shares) 7,311 18,161,000
Weighted average price per share (in USD per share) $ 43.94 $ 42.30
Total purchase price $ 321 $ 768
v3.24.0.1
Share-Based Awards - Additional Information (Detail)
$ / 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, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
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%        
Option awards              
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         $ 335    
Unrecognized compensation cost expected recognition period         2 years 3 months 18 days    
Total intrinsic value of shares         $ 20 $ 13 $ 310
Fair value of options         $ 215 226 173
Option awards | 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    
Option awards | 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    
Option awards | 2019 Equity Inducement Plan | Vesting, Option Two              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting period         4 years    
Unvested restricted stock units              
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         $ 292 $ 247 $ 152
Total unrecognized compensation cost         $ 494    
Unvested restricted stock units | Zillow Group, Inc. 2020 Incentive Plan              
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]              
Vesting period         4 years    
Unvested restricted stock units | 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            
v3.24.0.1
Share-Based Awards - Summary of Option Award (Detail) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Number of Shares Subject to Existing Options (in thousands)    
Beginning Balance (in shares) 28,598  
Granted (in shares) 7,242  
Exercised (in shares) (1,829)  
Forfeited or cancelled (in shares) (1,487)  
Ending Balance (in shares) 32,524 28,598
Vested and exercisable ending balance (in shares) 20,691  
Weighted- Average Exercise Price Per Share    
Beginning Balance (usd per share) $ 44.90  
Granted (usd per share) 43.21  
Exercised (usd per share) 39.32  
Forfeited or cancelled (usd per share) 59.27  
Ending Balance (usd per share) 44.18 $ 44.90
Vested and exercisable (usd per share) $ 44.06  
Weighted- Average Remaining Contractual Life (Years)    
Weighted-Average remaining contractual life, outstanding 6 years 10 months 24 days 7 years 1 month 6 days
Weighted-Average remaining contractual life, vested and exercisable 5 years 10 months 24 days  
Aggregate Intrinsic Value (in millions)    
Aggregate intrinsic value, outstanding $ 495 $ 15
Aggregate intrinsic value vested and exercisable $ 321  
v3.24.0.1
Share-Based Awards - Fair Value of Options Granted, Estimated at Date of Grant Using Black Scholes Merton Option Pricing Model (Detail) - Option awards - $ / shares
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average fair value of options granted (usd per share) $ 24.43 $ 23.25 $ 54.55
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility 55.00% 55.00% 52.00%
Risk-free interest rate 3.75% 1.94% 0.57%
Weighted-average expected life 5 years 3 months 18 days 4 years 6 months 4 years 6 months
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility 62.00% 61.00% 58.00%
Risk-free interest rate 4.36% 3.95% 1.15%
Weighted-average expected life 6 years 6 months 6 years 5 years 9 months 18 days
v3.24.0.1
Share-Based Awards - Summary of Restricted Stock Units Activity (Detail) - Unvested restricted stock units
shares in Thousands
12 Months Ended
Dec. 31, 2023
$ / shares
shares
Restricted Stock Units (in thousands)  
Beginning balance (in shares) | shares 10,930
Granted (in shares) | shares 8,693
Vested (in shares) | shares (6,400)
Forfeited (in shares) | shares (1,185)
Ending balance (in shares) | shares 12,038
Weighted- Average Grant- Date Fair Value  
Unvested outstanding, beginning balance (usd per share) | $ / shares $ 46.85
Granted (usd per share) | $ / shares 43.88
Vested (usd per share) | $ / shares 45.57
Forfeited or cancelled (usd per share) | $ / shares 46.42
Unvested outstanding, ending balance (usd per share) | $ / shares $ 45.42
v3.24.0.1
Share-Based Awards - Effects of Share Based Compensation in Consolidated Statements of Operations (Detail) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation $ 451 $ 451 $ 317
Share-based compensation - continuing operations      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation 451 435 277
Share-based compensation - discontinued operations      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation 0 16 40
Cost of revenue      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation 16 16 9
Sales and marketing      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation 70 63 42
Technology and development      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation 166 165 103
General and administrative      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation 199 189 122
Impairment and restructuring costs      
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]      
Total share-based compensation $ 0 $ 2 $ 1
v3.24.0.1
Net Loss Per Share - Maximum Number of Shares and Conversion Price Per Share (Details) - Convertible Debt
shares in Thousands
12 Months Ended
Dec. 31, 2023
$ / shares
shares
2026 Notes  
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]  
Conversion Spread (in shares) | shares 11,464
Conversion price per share (usd per share) | $ / shares $ 43.51
2.75% convertible senior notes due 2025  
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]  
Conversion Spread (in shares) | shares 7,552
Conversion price per share (usd per share) | $ / shares $ 67.20
2024 Notes  
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]  
Conversion Spread (in shares) | shares 13,982
Conversion price per share (usd per share) | $ / shares $ 43.51
v3.24.0.1
Net Loss Per Share - Schedule of Denominators Used in Basic and Diluted Per Share Calculations (Details) - shares
shares in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Denominator for basic calculation (in shares) 233,575 242,163 249,937
Denominator for dilutive calculation (in shares) 233,575 242,163 261,826
Option awards      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Effect of dilutive securities, share-based payment arrangements (in shares) 0 0 9,304
Unvested restricted stock units      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Effect of dilutive securities, share-based payment arrangements (in shares) 0 0 2,585
v3.24.0.1
Net Loss Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - Class C capital stock - shares
shares in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total Class A common stock and Class C capital stock equivalents (in shares) 68,320 58,629 40,168
Convertible notes maturing in 2023, 2024, 2025 and 2026      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total Class A common stock and Class C capital stock equivalents (in shares) 33,718 33,855 36,540
Weighted average | Option awards      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total Class A common stock and Class C capital stock equivalents (in shares) 21,021 15,759 2,455
Weighted average | Restricted stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total Class A common stock and Class C capital stock equivalents (in shares) 13,581 9,015 1,173
v3.24.0.1
Commitments and Contingencies - Purchase Commitments for Content Related to Mobile Applications and Websites (Details)
$ in Millions
Dec. 31, 2023
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2024 $ 100
2025 85
2026 67
2027 60
Total future purchase commitments $ 312
v3.24.0.1
Commitments and Contingencies - Additional Information (Detail)
$ in Millions
Aug. 31, 2021
patent
Jul. 15, 2021
patent
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Sep. 14, 2022
Claim
Mar. 02, 2022
patent
Jan. 06, 2022
Claim
Jul. 23, 2021
patent
Mar. 15, 2021
patent
Sep. 18, 2020
patent
petition
Jul. 21, 2020
patent
Sep. 17, 2019
patent
Other Commitments [Line Items]                        
Escrow deposit | $     $ 0 $ 0                
Outstanding letters of credit | $     11 16                
Outstanding surety bonds | $     $ 15 $ 13                
Number of patents infringed                 2 3 5 7
Number of petitions filed               1   4    
Loss contingency, patents found not infringed, number 2 2                    
Loss contingency, patents vacated 1                      
Loss contingency, number of remaining inter parties review           2            
Shareholder Derivative Lawsuits                        
Other Commitments [Line Items]                        
Number of pending claims | Claim         3   3          
v3.24.0.1
Employee Benefit Plan - Additional Information (Detail) - Zillow Merger - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
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 $ 33 $ 29 $ 27
v3.24.0.1
Revenue and Contract Balances - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Total revenue $ 1,945 $ 1,958 $ 2,132
Residential      
Disaggregation of Revenue [Line Items]      
Total revenue 1,452 1,522 1,572
Rentals      
Disaggregation of Revenue [Line Items]      
Total revenue 357 274 264
Mortgages      
Disaggregation of Revenue [Line Items]      
Total revenue 96 119 246
Other      
Disaggregation of Revenue [Line Items]      
Total revenue $ 40 $ 43 $ 50
v3.24.0.1
Revenue and Contract Balances - Narrative (Details) - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]      
Contract with customer, asset, after allowance for credit loss $ 90 $ 71  
Deferred revenue 52 44 $ 51
Revenue recognized, recorded in deferred revenue as of prior period $ 43 $ 51