ZILLOW GROUP, INC., 10-Q filed on 8/2/2023
Quarterly Report
v3.23.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2023
Jul. 26, 2023
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2023  
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 31  
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 Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Amendment Flag false  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0001617640  
Current Fiscal Year End Date --12-31  
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   56,684,307
Class B Common Stock    
Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding   6,217,447
Class C capital stock    
Entity Information [Line Items]    
Title of 12(b) Security Class C Capital Stock, par value $0.0001 per share  
Trading Symbol Z  
Security Exchange Name NASDAQ  
Entity Common Stock, Shares Outstanding   169,924,312
v3.23.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 1,566 $ 1,466
Short-term investments 1,745 1,896
Accounts receivable, net of allowance for doubtful accounts 90 72
Mortgage loans held for sale 73 41
Prepaid expenses and other current assets 155 126
Restricted cash 2 2
Total current assets 3,631 3,603
Contract cost assets 23 23
Property and equipment, net 309 271
Right of use assets 108 126
Goodwill 2,374 2,374
Intangible assets, net 153 154
Other assets 20 12
Total assets 6,618 6,563
Current liabilities:    
Accounts payable 21 20
Accrued expenses and other current liabilities 118 90
Accrued compensation and benefits 50 48
Borrowings under credit facilities 66 37
Deferred revenue 49 44
Lease liabilities, current portion 29 31
Total current liabilities 333 270
Lease liabilities, net of current portion 126 139
Convertible senior notes 1,663 1,660
Other long-term liabilities 10 12
Total liabilities 2,132 2,081
Commitments and contingencies (Note 13)
Shareholders’ equity:    
Preferred stock, $0.0001 par value; authorized — 30,000,000 shares; no shares issued and outstanding 0 0
Additional paid-in capital 6,174 6,109
Accumulated other comprehensive loss (19) (15)
Accumulated deficit (1,669) (1,612)
Total shareholders’ equity 4,486 4,482
Total liabilities and shareholders’ equity 6,618 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
v3.23.2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 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) 56,684,307 57,494,698
Common stock, outstanding (in shares) 56,684,307 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) 169,820,864 170,555,565
Common stock, outstanding (in shares) 169,820,864 170,555,565
v3.23.2
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Statement [Abstract]        
Revenue $ 506 $ 504 $ 975 $ 1,040
Cost of revenue 104 97 196 189
Gross profit 402 407 779 851
Operating expenses:        
Sales and marketing 173 163 329 337
Technology and development 140 119 277 227
General and administrative 153 120 276 232
Impairment and restructuring costs 2 0 8 14
Acquisition-related costs 1 0 1 0
Total operating expenses 469 402 891 810
Income (loss) from continuing operations (67) 5 (112) 41
Other income 42 5 74 7
Interest expense (9) (9) (18) (17)
Income (loss) from continuing operations before income taxes (34) 1 (56) 31
Income tax benefit (expense) (1) 9 (1) 4
Net income (loss) from continuing operations (35) 10 (57) 35
Net loss from discontinued operations, net of income taxes 0 (2) 0 (11)
Net income (loss) $ (35) $ 8 $ (57) $ 24
Net income (loss) from continuing operations per share:        
Basic (USD per share) $ (0.15) $ 0.04 $ (0.24) $ 0.14
Diluted (usd per share) (0.15) 0.04 (0.24) 0.13
Net income (loss) per share:        
Basic (usd per share) (0.15) 0.03 (0.24) 0.10
Diluted (usd per share) $ (0.15) $ 0.03 $ (0.24) $ 0.09
Weighted-average shares outstanding:        
Basic (in shares) 233,629 243,942 234,023 246,229
Diluted (in shares) 233,629 245,163 234,023 248,544
v3.23.2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ (35) $ 8 $ (57) $ 24
Other comprehensive loss:        
Unrealized losses on investments (16) (12) (4) (20)
Total other comprehensive loss (16) (12) (4) (20)
Comprehensive income (loss) $ (51) $ (4) $ (61) $ 4
v3.23.2
Condensed 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 Loss
Beginning Balance at Dec. 31, 2021 $ 5,341 $ (336) $ 0 $ 7,001 $ (492) $ (1,667) $ 156 $ 7
Beginning Balance (in shares) at Dec. 31, 2021     250,630          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Stock Issued During Period, Value, Stock Options Exercised 42     42        
Issuance of common and capital stock upon exercise of stock options (in shares)     995          
Vesting of restricted stock units (in shares)     1,811          
Share-based compensation expense 213     213        
Repurchases of Class A common stock and Class C capital stock (597)     (597)        
Repurchases of Class A common stock and class c capital stock (in shares)     (12,295)          
Net income (loss) 24         24    
Other Comprehensive Income (Loss), Net of Tax (20)             (20)
Ending Balance at Jun. 30, 2022 4,667   $ 0 6,167   (1,487)   (13)
Ending Balance (in shares) at Jun. 30, 2022     241,141          
Beginning Balance at Mar. 31, 2022 4,802   $ 0 6,298   (1,495)   (1)
Beginning Balance (in shares) at Mar. 31, 2022     246,268          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Stock Issued During Period, Value, Stock Options Exercised 6     6        
Issuance of common and capital stock upon exercise of stock options (in shares)     188          
Vesting of restricted stock units (in shares)     1,122          
Share-based compensation expense 112     112        
Repurchases of Class A common stock and Class C capital stock (249)     (249)        
Repurchases of Class A common stock and class c capital stock (in shares)     (6,437)          
Net income (loss) 8         8    
Other Comprehensive Income (Loss), Net of Tax (12)             (12)
Ending Balance at Jun. 30, 2022 4,667   $ 0 6,167   (1,487)   (13)
Ending Balance (in shares) at Jun. 30, 2022     241,141          
Beginning Balance at Dec. 31, 2022 4,482   $ 0 6,109   (1,612)   (15)
Beginning Balance (in shares) at Dec. 31, 2022     234,268          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Stock Issued During Period, Value, Stock Options Exercised $ 30     30        
Issuance of common and capital stock upon exercise of stock options (in shares) 823   823          
Vesting of restricted stock units (in shares)     2,921          
Share-based compensation expense $ 271     271        
Repurchases of Class A common stock and Class C capital stock (236)     (236)        
Repurchases of Class A common stock and class c capital stock (in shares)     (5,289)          
Net income (loss) (57)         (57)    
Other Comprehensive Income (Loss), Net of Tax (4)             (4)
Ending Balance at Jun. 30, 2023 4,486   $ 0 6,174   (1,669)   (19)
Ending Balance (in shares) at Jun. 30, 2023     232,723          
Beginning Balance at Mar. 31, 2023 4,520   $ 0 6,157   (1,634)   (3)
Beginning Balance (in shares) at Mar. 31, 2023     233,994          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Stock Issued During Period, Value, Stock Options Exercised 17     17        
Issuance of common and capital stock upon exercise of stock options (in shares)     450          
Vesting of restricted stock units (in shares)     1,556          
Share-based compensation expense 150     150        
Repurchases of Class A common stock and Class C capital stock (150)     (150)        
Repurchases of Class A common stock and class c capital stock (in shares)     (3,277)          
Net income (loss) (35)         (35)    
Other Comprehensive Income (Loss), Net of Tax (16)             (16)
Ending Balance at Jun. 30, 2023 $ 4,486   $ 0 $ 6,174   $ (1,669)   $ (19)
Ending Balance (in shares) at Jun. 30, 2023     232,723          
v3.23.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Operating activities    
Net income (loss) $ (57) $ 24
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation and amortization 85 87
Share-based compensation 233 193
Amortization of right of use assets 12 11
Amortization of contract cost assets 11 16
Amortization of debt discount and debt issuance costs 3 24
Loss on extinguishment of debt 0 21
Amortization of Debt Discount (20) (11)
Other adjustments to reconcile net income (loss) to net cash provided by operating activities 1 11
Changes in operating assets and liabilities:    
Accounts receivable (19) 81
Mortgage loans held for sale (32) 46
Inventory 0 3,881
Prepaid expenses and other assets (30) 4
Contract cost assets (11) (8)
Lease liabilities (15) (8)
Accounts payable 0 (1)
Accrued expenses and other current liabilities 27 (69)
Accrued compensation and benefits 2 (47)
Deferred revenue 5 1
Other long-term liabilities (2) (1)
Net cash provided by operating activities 193 4,255
Investing activities    
Proceeds from maturities of investments 806 160
Purchases of investments (638) (1,023)
Purchases of property and equipment (66) (60)
Purchases of intangible assets (18) (11)
Net cash provided by (used in) investing activities 84 (934)
Financing activities    
Repayments of borrowings on credit facilities 0 (2,205)
Net borrowings (repayments) on warehouse line of credit and repurchase agreements 29 (58)
Repurchases of Class A common stock and Class C capital stock (236) (597)
Settlement of long-term debt 0 (1,158)
Proceeds from exercise of stock options 30 42
Net cash used in financing activities (177) (3,976)
Net increase (decrease) in cash, cash equivalents and restricted cash during period 100 (655)
Cash, cash equivalents and restricted cash at beginning of period 1,468 2,838
Cash, cash equivalents and restricted cash at end of period 1,568 2,183
Noncash transactions:    
Capitalized share-based compensation 38 20
Write-off of fully depreciated property and equipment 16 33
Write-off of fully amortized intangible assets 2 196
Recognition of operating right of use assets and lease liabilities 0 14
Settlement of beneficial interests in securitizations $ 0 $ 79
v3.23.2
Organization and Description of Business
 6 Months Ended
Jun. 30, 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, great partners, and easier buying, selling, financing and renting experiences.
Our portfolio of affiliates, subsidiaries and brands includes Zillow, Zillow Premier Agent, Zillow Home Loans (our 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 Mortech, New Home Feed and ShowingTime+, which includes ShowingTime, Bridge Interactive and dotloop.

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 condensed consolidated statements of operations for the three and six months ended June 30, 2022. No assets or liabilities were classified as discontinued operations as of December 31, 2022. See Note 3 for additional information.
Certain Significant Risks and Uncertainties
We operate in a dynamic industry and, accordingly, can be affected by a variety of factors. 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 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, 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.
v3.23.2
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Basis of Presentation
The accompanying condensed consolidated financial statements include Zillow Group, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes included in Zillow Group, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which was filed with the SEC on February 15, 2023. The condensed consolidated balance sheet as of December 31, 2022, included herein, was derived from the audited financial statements of Zillow Group, Inc. as of that date.
The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position as of June 30, 2023 and our results of operations, comprehensive income (loss), and shareholders’ equity for the three and six month periods ended June 30, 2023 and 2022, and cash flows for the six month periods ended June 30, 2023 and 2022. The results for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023, for any interim period, or for any other future year. Certain reclassifications of prior period amounts have been made to conform to the current period presentation. Unless indicated otherwise, the information in the Notes to Condensed Consolidated Financial Statements relates to our continuing operations and does not include the results of discontinued operations.
There were no significant changes to the significant accounting policies disclosed in Note 2 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, except for the updates noted below. Such updates were made due to our determination that we have a single operating and reportable segment, as well as certain changes to how we disaggregate our revenue into categories, beginning in the first quarter of 2023.
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.
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.
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 and ShowingTime+.
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 primarily offered on a share of voice basis. 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 primarily recognize revenue related to the Premier Agent 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 partner 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 partner arrangements, as the amounts recognized would be the same irrespective of any allocation.
We also offer a pay for performance pricing model called “Flex” for Premier Agent advertising services in certain markets. Flex is available to select partners alongside our legacy market-based pricing model. 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 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 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.
Our dotloop real estate transaction management software-as-a-service solution 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.
ShowingTime revenue 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.
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 based on time elapsed. 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 corresponding 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 interest rate lock commitment (“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 interest rate lock commitment 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 in our portfolio and 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 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.
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 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 residential housing market and interest rate environment have introduced significant additional uncertainty with respect to estimates, judgments and assumptions, which may materially impact the estimates previously listed, among others.
Recently Issued Accounting Standards Not Yet Adopted
In June 2022, the Financial Accounting Standards Board 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. We have not yet determined the impact the adoption of this guidance will have on our financial position, results of operations and cash flows.
v3.23.2
Discontinued Operations
 6 Months Ended
Jun. 30, 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 condensed consolidated statements of operations for the three and six months ended June 30, 2022. 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 condensed consolidated statements of operations for the periods presented (in millions):
Three Months Ended
June 30, 2022		Six Months Ended
June 30, 2022
Revenue$505 $4,226 
Cost of revenue469 3,999 
Gross profit36 227 
Operating expenses:
Sales and marketing19 152 
Technology and development— 6 
General and administrative3 10 
Restructuring costs1 25 
Total operating expenses23 193 
Income from discontinued operations13 34 
Loss on extinguishment of debt(7)(21)
Other income7 13 
Interest expense— (36)
Income (loss) from discontinued operations before income taxes13 (10)
Income tax expense (15)(1)
Net loss from discontinued operations$(2)$(11)
Net loss from discontinued operations per share:
Basic$(0.01)$(0.04)
Diluted$(0.01)$(0.04)
The following table presents significant non-cash items and capital expenditures of the discontinued operations for the six months ended June 30, 2022 (in millions):
Amortization of debt discount and debt issuance costs$21 
Loss on debt extinguishment21 
Share-based compensation15 
Inventory valuation adjustment9 
Depreciation and amortization7 
Settlement of beneficial interests in securitizations(79)
Restructuring
Restructuring charges attributable to continuing operations relate to employee termination costs and certain indirect costs that do not qualify as discontinued operations. Restructuring costs totaled $2 million for the three and six month periods ended June 30, 2023 and primarily pertained to employee termination costs that did not relate to the Zillow Offers wind down.
There were no restructuring costs attributable to continuing operations for the three months ended June 30, 2022. Restructuring costs totaled $14 million for the six months ended June 30, 2022 and were related to the Zillow Offers wind down. Cumulative restructuring charges attributable to continuing operations related to the Zillow Offers wind down as of June 30, 2022 totaled $23 million.
v3.23.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We apply the following methods and assumptions in estimating our fair value measurements:
Cash equivalents — The fair value measurement of money market funds is based on quoted market prices in active markets (Level 1). The fair value measurement of other cash equivalents is based on observable market-based inputs principally derived from or corroborated by observable market data (Level 2).
Short-term investments — The fair value measurement of our short-term investments is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means (Level 2).
Restricted cash — The carrying value of restricted cash approximates fair value due to the short period of time amounts are held in escrow (Level 1).
Mortgage loans held for sale — The fair value of mortgage loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics (Level 2).
Forward contracts — The fair value of mandatory loan sales commitments and derivative instruments such as forward sales of mortgage-backed securities that are utilized as economic hedging instruments is calculated by reference to quoted prices for similar assets (Level 2).
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 condensed
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:
June 30, 2023December 31, 2022
Range
48% - 99%
47% - 100%
Weighted-average83%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):
June 30, 2023
TotalLevel 1Level 2Level 3
Cash equivalents:
Money market funds$1,394 $1,394 $— $— 
Commercial paper115 115 
Short-term investments:
U.S. government treasury securities1,529 — 1,529 — 
Corporate bonds160 — 160 — 
Commercial paper42 — 42 — 
U.S. government agency securities14 — 14 — 
Mortgage origination-related:
Mortgage loans held for sale73 — 73 — 
IRLCs - other current assets1 — — 1 
Forward contracts - other current assets1 — 1 — 
        Total$3,329 $1,394 $1,934 $1 
 December 31, 2022
 TotalLevel 1Level 2Level 3
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 securities9 — 9 — 
Mortgage origination-related:
Mortgage loans held for sale41 — 41 — 
Forward contracts - other current assets1 — 1 — 
Total$3,276 $1,338 $1,938 $— 
At June 30, 2023, the notional amounts of the economic hedging instruments related to our mortgage loans held for sale were $118 million and $155 million for our IRLCs and forward contracts, respectively. At December 31, 2022, the notional amounts of the economic hedging instruments related to our mortgage loans held for sale were $62 million and $90 million for our IRLCs and forward contracts, respectively. We do not have the right to offset our forward contract derivative positions.
See Note 8 for the carrying amounts and estimated fair values of our convertible senior notes.
v3.23.2
Cash and Cash Equivalents, Investments and Restricted Cash
 6 Months Ended
Jun. 30, 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):
 June 30, 2023December 31, 2022
 Amortized
Cost		Estimated
Fair Market
Value		Amortized
Cost		Estimated
Fair Market
Value
Cash$57 $57 $128 $128 
Cash equivalents:
Money market funds1,394 1,394 1,338 1,338 
Commercial paper115 115 — — 
Short-term investments:
U.S. government treasury securities (1)1,547 1,529 1,731 1,716 
Corporate bonds160 160 162 161 
Commercial paper42 42 10 10 
U.S. government agency securities14 14 9 9 
Restricted cash2 2 2 2 
        Total$3,331 $3,313 $3,380 $3,364 
(1) The estimated fair market value includes $18 million and $15 million of gross unrealized losses as of June 30, 2023 and December 31, 2022, respectively.
The following table presents available-for-sale investments by contractual maturity date as of June 30, 2023 (in millions):
Amortized CostEstimated Fair
Market Value
Due in one year or less$718 $714 
Due after one year 1,045 1,031 
Total $1,763 $1,745 
v3.23.2
Property and Equipment, net
 6 Months Ended
Jun. 30, 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):
June 30, 2023December 31, 2022
Website development costs$378 $291 
Leasehold improvements90 90 
Office equipment, furniture and fixtures23 24 
Computer equipment18 18 
Construction-in-progress1 7 
Property and equipment510 430 
Less: accumulated amortization and depreciation(201)(159)
Property and equipment, net$309 $271 
We recorded depreciation expense related to property and equipment (other than website development costs) of $6 million for each of the three months ended June 30, 2023 and 2022, and $12 million and $13 million for the six months ended June 30, 2023 and 2022, respectively.
We capitalized website development costs of $50 million and $34 million for the three months ended June 30, 2023 and 2022, respectively, and $95 million and $67 million for the six months ended June 30, 2023 and 2022, respectively. Amortization expense for website development costs included in cost of revenue was $27 million and $18 million for the three months ended June 30, 2023 and 2022, respectively, and $49 million and $31 million for the six months ended June 30, 2023 and 2022, respectively.
v3.23.2
Intangible Assets, net
 6 Months Ended
Jun. 30, 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):
 June 30, 2023
 CostAccumulated AmortizationNet
Software$72 $(21)$51 
Customer relationships58 (14)44 
Trade names and trademarks45 (17)28 
Developed technology49 (22)27 
Purchased content11 (8)3 
Total$235 $(82)$153 
 December 31, 2022
 CostAccumulated AmortizationNet
Customer relationships$59 $(10)$49 
Software54 (15)39 
Developed technology49 (15)34 
Trade names and trademarks45 (15)30 
Purchased content8 (6)2 
Total$215 $(61)$154 
Amortization expense recorded for intangible assets was $12 million and $17 million for the three months ended June 30, 2023 and 2022, respectively, and $24 million and $36 million for the six months ended June 30, 2023 and 2022, respectively. Amortization expense for trade names and trademarks and customer relationships intangible assets is included in sales and marketing expenses. Amortization expense for all other intangible assets is included in cost of revenue.
We did not record any impairment costs related to our intangible assets for the three or six months ended June 30, 2023 or 2022.
v3.23.2
Debt
 6 Months Ended
Jun. 30, 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):
June 30, 2023December 31, 2022
Credit facilities
Master repurchase agreements:
Atlas Securitized Products, L.P. (1)$19 $23 
JPMorgan Chase Bank, N.A.8 — 
Citibank, N.A.— 3 
Warehouse line of credit:
Comerica Bank39 11 
Total credit facilities66 37 
Convertible senior notes
1.375% convertible senior notes due 2026
496 495 
2.75% convertible senior notes due 2025
561 560 
0.75% convertible senior notes due 2024
606 605 
Total convertible senior notes1,663 1,660 
Total debt$1,729 $1,697 
(1) Agreement was reassigned from Credit Suisse AG, Cayman Islands (“Credit Suisse”) on May 25, 2023. See Credit Facilities section below for further information.
Credit Facilities
To provide capital for Zillow Home Loans, we utilize master repurchase agreements and a warehouse line of credit. The following table summarizes certain details related to our outstanding master repurchase agreements and warehouse line of credit as of June 30, 2023 (in millions, except interest rates):
LenderMaturity DateMaximum Borrowing CapacityWeighted-Average Interest Rate
Atlas Securitized Products, L.P.March 11, 2024$50 7.07 %
JPMorgan Chase Bank, N.A.May 30, 2024100 6.75 %
Comerica BankDecember 29, 202350 7.05 %
Total$200 
On May 25, 2023, the Zillow Home Loans master repurchase agreement with Credit Suisse 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 June 9, 2023, the Zillow Home Loans master repurchase agreement with Citibank N.A., which had a maximum borrowing capacity of $100 million, expired and was not renewed.
On June 24, 2023, Zillow Home Loans amended its warehouse line of credit with Comerica Bank to extend the maturity date to December 29, 2023. In accordance with this amendment, Zillow Home Loans will not be permitted to draw additional amounts on the warehouse line of credit after September 30, 2023.
In accordance with the master repurchase agreements, Atlas and JPMC (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. At both June 30, 2023 and December 31, 2022, $28 million in mortgage loans held for sale were pledged as collateral under the master repurchase agreements.
Borrowings on the repurchase agreements and warehouse line of credit bear interest either at a floating rate based on Secured Overnight Financing Rate plus an applicable margin, as defined by the governing agreements, or Bloomberg Short-Term Bank Yield Index Rate plus an applicable margin, as defined by the governing agreements. The repurchase agreements and warehouse line of credit include customary representations and warranties, covenants and provisions regarding events of default. As of June 30, 2023, Zillow Home Loans was in compliance with all financial covenants and no event of default had occurred. The repurchase agreements and warehouse line of credit are recourse to Zillow Home Loans, and have no recourse to Zillow Group or any of its other subsidiaries.
For additional details related to our repurchase agreements and warehouse line of credit, see Note 13 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
Convertible Senior Notes
Effective January 1, 2022, we adopted guidance which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Refer to Note 2 in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 for additional information regarding the adoption of this guidance.
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):
June 30, 2023December 31, 2022
Maturity DateAggregate Principal AmountStated Interest RateEffective Interest RateSemi-Annual Interest Payment DatesUnamortized Debt Issuance CostsFair ValueUnamortized Debt Issuance CostsFair Value
September 1, 2026$499 1.375 %1.57 %March 1; September 1$3 $647 $4 $504 
May 15, 2025565 2.75 %3.20 %May 15; November 154 601 5 531 
September 1, 2024608 0.75 %1.02 %March 1; September 12 774 3 629 
Total$1,672 $9 $2,022 $12 $1,664 
Three Months Ended
June 30, 2023		Three Months Ended
June 30, 2022
Maturity DateContractual Coupon InterestAmortization of Debt Issuance CostsInterest ExpenseContractual Coupon InterestAmortization of Debt Issuance CostsInterest Expense
September 1, 2026$2 $1 $3 $1 $— $1 
May 15, 20254 1 5 4 1 5 
September 1, 20241 — 1 2 — 2 
Total$7 $2 $9 $7 $1 $8 
Six Months Ended
June 30, 2023		Six Months Ended
June 30, 2022
Maturity DateContractual Coupon InterestAmortization of Debt Issuance CostsInterest ExpenseContractual Coupon InterestAmortization of Debt Issuance CostsInterest Expense
September 1, 2026$4 $1 $5 $3 $— $3 
May 15, 20258 1 9 8 1 9 
September 1, 20242 1 3 3 1 4 
Total$14 $3 $17 $14 $2 $16 

The convertible notes are senior unsecured obligations. The convertible senior notes maturing in 2026 (“2026 Notes”), 2025 (“2025 Notes”) and 2024 (“2024 Notes”) (together, the “Notes”) are classified as long-term debt in our condensed 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 Notes are convertible into cash, shares of Class C capital stock or a combination thereof, at our election, and may be settled as described below. They will mature on their respective maturity date, unless earlier repurchased, redeemed or converted in accordance with their terms.
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 certain details related to the capped call confirmations with respect to the convertible senior notes:
Maturity DateInitial Cap PriceCap Price Premium
September 1, 2026$80.5750 150 %
September 1, 202472.5175 125 %
July 1, 2023105.45 85 %
There were no conversions of the Notes during the three and six months ended June 30, 2023 or 2022.
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 June 30, 2023. Accordingly, each series of the Notes is not redeemable or convertible at the option of the holders from July 1 through September 30, 2023.
For additional details related to our convertible senior notes, see Note 13 in the Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
v3.23.2
Income Taxes
 6 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Income Taxes ncome TaxesWe are primarily subject to income taxes in the United States (federal and state), as well as certain foreign jurisdictions. As of June 30, 2023 and December 31, 2022, we have provided a valuation allowance against our net deferred tax assets that we believe, based on the weight of available evidence, are not more likely than not to be realized. We have accumulated federal tax losses of approximately $1.8 billion as of December 31, 2022, which are available to reduce future taxable income. We have accumulated state tax losses of approximately $63 million (tax effected) as of December 31, 2022.Our income tax expense or benefit for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account for the relevant period. We update our estimate of the annual effective tax rate on a quarterly basis and make year-to-date adjustments to the tax provision or benefit, as applicable. We recorded income tax expense of $1 million for the three and six months ended June 30, 2023, primarily related to state income taxes. We recorded an income tax benefit of $9 million for the three months ended June 30, 2022 and an income tax benefit of $4 million for the six months ended June 30, 2022, primarily related to state income taxes.
v3.23.2
Share Repurchase Authorizations
 6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Share Repurchase Authorizations hare Repurchase Authorizations
Prior to July 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 (together the “Repurchase Authorizations”). For additional information on these authorizations, see Note 13 to our Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
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 June 30, 2023, $264 million remained available for future repurchases pursuant to the Repurchase Authorizations. 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, convertible senior notes or a combination thereof, which increases the amount available for future repurchases to $1.0 billion under our total Repurchase Authorizations of $2.5 billion.
The following table summarizes, on a settlement date basis, 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):
 Three Months Ended
June 30, 2023		Three Months Ended
June 30, 2022
Class A common stockClass C capital stockClass A common stockClass C capital stock
Shares repurchased496 2,781 1,165 5,272 
Weighted-average price per share$45.18 $45.86 $38.31 $38.91 
Total purchase price$23 $127 $44 $205 
 Six Months Ended
June 30, 2023		Six Months Ended
June 30, 2022
Class A common stockClass C capital stockClass A common stockClass C capital stock
Shares repurchased810 4,479 2,577 9,718 
Weighted-average price per share$44.12 $44.76 $49.30 $48.40 
Total purchase price$36 $200 $127 $470 
v3.23.2
Share-Based Awards
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Share-Based Awards Share-Based Awards
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. For additional information regarding our share-based awards, see Note 16 in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
Option Awards
The following table summarizes option award activity for the six months ended June 30, 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 7.08$15 
Granted6,287 42.16 
Exercised(823)37.60 
Forfeited or cancelled(671)49.94 
Outstanding at June 30, 202333,391 44.46 7.21276 
Vested and exercisable at June 30, 202318,805 44.88 5.94160 
The following assumptions were used to determine the fair value of all option awards granted for the periods presented:
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Expected volatility61%60%
55% - 61%
55% - 60%
Risk-free interest rate3.75%2.97%
3.75% - 4.04%
1.94% - 2.97%
Weighted-average expected life5.25 years5.00 years
5.25 - 6.50 years
4.50 - 6.00 years
Weighted-average fair value of options granted$25.81$17.82$23.76$24.60
As of June 30, 2023, there was a total of $426 million in unrecognized compensation cost related to unvested option awards.
Restricted Stock Units
The following table summarizes activity for restricted stock units for the six months ended June 30, 2023:
Restricted
Stock Units (in thousands)		Weighted-Average Grant Date Fair Value
Unvested outstanding at January 1, 202310,930 $46.85 
Granted7,331 42.49 
Vested(2,921)47.16 
Forfeited(512)46.21 
Unvested outstanding at June 30, 202314,828 44.66 
As of June 30, 2023, there was a total of $604 million in unrecognized compensation cost related to unvested restricted stock units.
Share-Based Compensation Expense
The following table presents the effects of share-based compensation expense in our condensed consolidated statements of operations during the periods presented (in millions):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Cost of revenue$4 $4 $8 $7 
Sales and marketing19 14 35 25 
Technology and development42 38 81 66 
General and administrative65 43 109 78 
Share-based compensation - continuing operations130 99 233 176 
Share-based compensation - discontinued operations— 3 — 17 
Total share-based compensation$130 $102 $233 $193 
v3.23.2
Net Income (Loss) Per Share
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Net Income (Loss) Per Share
For the periods presented, the following table reconciles the denominators used in the basic and diluted net income (loss) and net income (loss) from continuing operations per share calculations (in thousands):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Denominator for basic calculation233,629 243,942 234,023 246,229 
Effect of dilutive securities:
Option awards— 964 — 1,757 
Unvested restricted stock units— 257 — 558 
Denominator for dilutive calculation233,629 245,163 234,023 248,544 
For the periods presented, the following Class A common stock and Class C capital stock equivalents were excluded from the calculations of diluted net income (loss) and net income (loss) from continuing operations per share because their effect would have been antidilutive (in thousands):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Weighted-average Class A common stock and Class C capital stock option awards outstanding22,315 207 20,045 2,650 
Weighted-average Class A common stock and Class C capital stock restricted stock units outstanding15,366 7,357 13,746 5,284 
Class C capital stock issuable upon conversion of the Notes33,855 33,855 33,855 33,855 
Total Class A common stock and Class C capital stock equivalents71,536 41,419 67,646 41,789 
v3.23.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Commitments
During the three and six months ended June 30, 2023, there were no material changes to the commitments disclosed in Note 18 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
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 June 30, 2023 or December 31, 2022.
In August and September 2017, two 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 common stock between February 12, 2016 and August 8, 2017. One of those purported class actions, captioned Vargosko v. Zillow Group, Inc. et al, was brought in the U.S. District Court for the Central District of California. The other purported class action lawsuit, captioned Shotwell v. Zillow Group, Inc. et al, was brought in the U.S. District Court for the Western District of Washington. The complaints allege, among other things, that during the period between February 12, 2016 and August 8, 2017, we issued materially false and misleading statements regarding our business practices. The complaints seek to recover, among other things, alleged damages sustained by the purported class members as a result of the alleged misconduct. In November 2017, an amended complaint was filed against us and certain of our executive officers in the Shotwell v. Zillow Group purported class action lawsuit, extending the beginning of the class period to November 17, 2014. In January 2018, the Vargosko v. Zillow Group purported class action lawsuit was transferred to the U.S. District Court for the Western District of Washington and consolidated with the Shotwell v. Zillow Group purported class action lawsuit. In February 2018, the plaintiffs filed a consolidated amended complaint, and in April 2018, we filed our motion to dismiss the consolidated amended complaint. In October 2018, our motion to dismiss was granted without prejudice, and in November 2018, the plaintiffs filed a second consolidated amended complaint, which we moved to dismiss in December 2018. On April 19, 2019, our motion to dismiss the second consolidated amended complaint was denied. On October 11, 2019, plaintiffs filed a motion for class certification which was granted by the court on October 28, 2020. On February 17, 2021, the Ninth Circuit Court of Appeals denied our petition for review of that decision. On October 21, 2022, the parties jointly filed a notice of settlement with the U.S. District Court for the Western District of Washington to inform the court that the parties have reached an agreement to settle this action. On March 31, 2023, the plaintiffs filed a motion seeking preliminary approval of the parties’ proposed settlement, which motion was granted by the court on April 3, 2023. The terms of the parties’ proposed settlement agreement are contained in the settlement documents filed with the court on March 31, 2023. The court has set August 8, 2023 as the hearing date for final approval of the settlement. The full amount of the settlement payment has been paid by our insurance carriers under the applicable insurance policy and pursuant to the terms of the proposed settlement, and is currently being held in escrow by plaintiff’s counsel pending final approval of the settlement.
In October and November 2017 and January and February 2018, four shareholder derivative lawsuits were filed in the U.S. District Court for the Western District of Washington and the Superior Court of the State of Washington, King County, against 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 in the derivative suits (in which the Company is a nominal defendant) allege, among other things, that the defendants breached their fiduciary duties in connection with oversight of the Company’s public statements and legal compliance, and as a result of the breach of such fiduciary duties, the Company was damaged, and defendants were unjustly enriched. Certain of the plaintiffs also allege, among other things, violations of Section 14(a) of the Securities Exchange Act of 1934 and waste of corporate assets. On February 5, 2018, the U.S. District Court for the Western District of Washington consolidated the two federal shareholder derivative lawsuits pending in that court (the “Federal Suit”). On February 16, 2018, the Superior Court of the State of Washington, King County, consolidated the two shareholder derivative lawsuits pending in that court (the “State Suit”). The Federal Suit and State Suit were stayed until our motion to dismiss the second consolidated amended complaint in the securities class action lawsuit discussed above was denied in April 2019. On July 8, 2019, the plaintiffs in the Federal Suit filed a consolidated shareholder derivative complaint, which we moved to dismiss on August 22, 2019. On February 28, 2020, our motion to dismiss the Federal Suit was denied. On February 16, 2021, the court in the State Suit matter stayed the action. On March 5, 2021, a new shareholder derivative lawsuit was filed in the U.S. District Court for the Western District of Washington against 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, alleging, among other things, violations of federal securities laws. The U.S. District Court for the Western District of Washington formally consolidated the new lawsuit with the other consolidated Federal Suit pending in that court on June 15, 2021. On November 14, 2022, the parties jointly filed a stipulation with the U.S. District Court for the Western District of Washington informing the court that, among other things, they have agreed in principle to all material terms of a settlement. On April 20, 2023, the plaintiffs filed a motion seeking preliminary approval of the parties’ proposed settlement, which motion was granted by the court on April 25, 2023. The terms of the parties’ proposed settlement agreement are contained in the settlement documents filed with the court on April 20, 2023 and found on Zillow’s Investor Relations page at https://investors.zillowgroup.com/investors/resources/investor-faqs/default.aspx. The court has set August 29, 2023 as the hearing date for final approval of the settlement. The full amount of plaintiffs’ attorneys’ fees and costs associated with the settlement is expected to be paid by our insurance carriers under the applicable insurance policy and pursuant to the terms of the proposed settlement.
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. Our 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. Int’l Bus. Machs. Corp., IPR2022-00646 concerning the final remaining patent in this action, which the court granted on April 20, 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. Zillow’s responsive brief was filed on September 30, 2022, and IBM’s reply brief was filed on November 4, 2022. 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 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. 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 on June 26, 2023. 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. For additional information regarding our indemnifications, see Note 18 in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.
v3.23.2
Revenue and Contract Balances
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue and Contract Balances evenue 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.
Beginning in 2023, our chief executive officer, who acts as the chief operating decision maker, 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. 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. Our revenues are 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 and ShowingTime+. 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):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Residential$380 $392 $741 $810 
Rentals91 71 165 132 
Mortgages24 29 50 75 
Other11 1219 23
Total revenue$506 $504 $975 $1,040 
Contract Balances
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. The current portion of contract assets is recorded within prepaid expenses and other current assets and the long-term portion of contract assets is recorded within other assets in our condensed consolidated balance sheets and totaled $90 million and $71 million as of June 30, 2023 and December 31, 2022, respectively.
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.
For the three months ended June 30, 2023, the opening balance of deferred revenue was $49 million, of which $46 million was recognized as revenue during the period. For the three months ended June 30, 2022, the opening balance of deferred revenue was $56 million, of which $52 million was recognized as revenue during the period.
For the six months ended June 30, 2023, the opening balance of deferred revenue was $44 million, of which $42 million was recognized as revenue during the period. For the six months ended June 30, 2022, the opening balance of deferred revenue was $51 million, of which $49 million was recognized as revenue during the period. As of June 30, 2023 and 2022, deferred revenue was $49 million and $52 million, respectively.
v3.23.2
Subsequent Event
 6 Months Ended
Jun. 30, 2023
Subsequent Events [Abstract]  
Subsequent Event Subsequent Event
Acquisition of Aryeo, Inc.
On July 31, 2023, Zillow Group, Inc. acquired Aryeo, Inc., a software company which serves real estate photographers, for approximately $35 million in a combination of cash and our Class C capital stock, subject to certain adjustments. The purchase price will be allocated to the assets acquired and liabilities assumed, including identifiable intangible assets, based on their respective fair values at the acquisition date. We are in the process of performing the procedures necessary to determine the purchase price allocation.
v3.23.2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The accompanying condensed consolidated financial statements include Zillow Group, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. These condensed consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes included in Zillow Group, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which was filed with the SEC on February 15, 2023. The condensed consolidated balance sheet as of December 31, 2022, included herein, was derived from the audited financial statements of Zillow Group, Inc. as of that date.
The unaudited condensed consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position as of June 30, 2023 and our results of operations, comprehensive income (loss), and shareholders’ equity for the three and six month periods ended June 30, 2023 and 2022, and cash flows for the six month periods ended June 30, 2023 and 2022. The results for the three and six months ended June 30, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023, for any interim period, or for any other future year. Certain reclassifications of prior period amounts have been made to conform to the current period presentation. Unless indicated otherwise, the information in the Notes to Condensed Consolidated Financial Statements relates to our continuing operations and does not include the results of discontinued operations.
There were no significant changes to the significant accounting policies disclosed in Note 2 in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, except for the updates noted below. Such updates were made due to our determination that we have a single operating and reportable segment, as well as certain changes to how we disaggregate our revenue into categories, beginning in the first quarter of 2023.
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.
Revenue Recognition
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.
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 and ShowingTime+.
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 primarily offered on a share of voice basis. 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 primarily recognize revenue related to the Premier Agent 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 partner 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 partner arrangements, as the amounts recognized would be the same irrespective of any allocation.
We also offer a pay for performance pricing model called “Flex” for Premier Agent advertising services in certain markets. Flex is available to select partners alongside our legacy market-based pricing model. 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 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 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.
Our dotloop real estate transaction management software-as-a-service solution 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.
ShowingTime revenue 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.
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 based on time elapsed. 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 corresponding 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 interest rate lock commitment (“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 interest rate lock commitment 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 in our portfolio and 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 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.
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 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 residential housing market and interest rate environment have introduced significant additional uncertainty with respect to estimates, judgments and assumptions, which may materially impact the estimates previously listed, among others.
Recently Issued Accounting Standards Not Yet Adopted
Recently Issued Accounting Standards Not Yet Adopted
In June 2022, the Financial Accounting Standards Board 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. We have not yet determined the impact the adoption of this guidance will have on our financial position, results of operations and cash flows.
Fair Value Measurements
We apply the following methods and assumptions in estimating our fair value measurements:
Cash equivalents — The fair value measurement of money market funds is based on quoted market prices in active markets (Level 1). The fair value measurement of other cash equivalents is based on observable market-based inputs principally derived from or corroborated by observable market data (Level 2).
Short-term investments — The fair value measurement of our short-term investments is based on observable market-based inputs or inputs that are derived principally from or corroborated by observable market data by correlation or other means (Level 2).
Restricted cash — The carrying value of restricted cash approximates fair value due to the short period of time amounts are held in escrow (Level 1).
Mortgage loans held for sale — The fair value of mortgage loans held for sale is generally calculated by reference to quoted prices in secondary markets for commitments to sell mortgage loans with similar characteristics (Level 2).
Forward contracts — The fair value of mandatory loan sales commitments and derivative instruments such as forward sales of mortgage-backed securities that are utilized as economic hedging instruments is calculated by reference to quoted prices for similar assets (Level 2).
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 condensed
consolidated statements of operations.
v3.23.2
Discontinued Operations (Tables)
 6 Months Ended
Jun. 30, 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 condensed consolidated statements of operations for the periods presented (in millions):
Three Months Ended
June 30, 2022		Six Months Ended
June 30, 2022
Revenue$505 $4,226 
Cost of revenue469 3,999 
Gross profit36 227 
Operating expenses:
Sales and marketing19 152 
Technology and development— 6 
General and administrative3 10 
Restructuring costs1 25 
Total operating expenses23 193 
Income from discontinued operations13 34 
Loss on extinguishment of debt(7)(21)
Other income7 13 
Interest expense— (36)
Income (loss) from discontinued operations before income taxes13 (10)
Income tax expense (15)(1)
Net loss from discontinued operations$(2)$(11)
Net loss from discontinued operations per share:
Basic$(0.01)$(0.04)
Diluted$(0.01)$(0.04)
The following table presents significant non-cash items and capital expenditures of the discontinued operations for the six months ended June 30, 2022 (in millions):
Amortization of debt discount and debt issuance costs$21 
Loss on debt extinguishment21 
Share-based compensation15 
Inventory valuation adjustment9 
Depreciation and amortization7 
Settlement of beneficial interests in securitizations(79)
v3.23.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurement Inputs and Valuation Techniques 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:
June 30, 2023December 31, 2022
Range
48% - 99%
47% - 100%
Weighted-average83%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):
June 30, 2023
TotalLevel 1Level 2Level 3
Cash equivalents:
Money market funds$1,394 $1,394 $— $— 
Commercial paper115 115 
Short-term investments:
U.S. government treasury securities1,529 — 1,529 — 
Corporate bonds160 — 160 — 
Commercial paper42 — 42 — 
U.S. government agency securities14 — 14 — 
Mortgage origination-related:
Mortgage loans held for sale73 — 73 — 
IRLCs - other current assets1 — — 1 
Forward contracts - other current assets1 — 1 — 
        Total$3,329 $1,394 $1,934 $1 
 December 31, 2022
 TotalLevel 1Level 2Level 3
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 securities9 — 9 — 
Mortgage origination-related:
Mortgage loans held for sale41 — 41 — 
Forward contracts - other current assets1 — 1 — 
Total$3,276 $1,338 $1,938 $— 
v3.23.2
Cash and Cash Equivalents, Investments and Restricted Cash (Tables)
 6 Months Ended
Jun. 30, 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):
 June 30, 2023December 31, 2022
 Amortized
Cost		Estimated
Fair Market
Value		Amortized
Cost		Estimated
Fair Market
Value
Cash$57 $57 $128 $128 
Cash equivalents:
Money market funds1,394 1,394 1,338 1,338 
Commercial paper115 115 — — 
Short-term investments:
U.S. government treasury securities (1)1,547 1,529 1,731 1,716 
Corporate bonds160 160 162 161 
Commercial paper42 42 10 10 
U.S. government agency securities14 14 9 9 
Restricted cash2 2 2 2 
        Total$3,331 $3,313 $3,380 $3,364 
(1) The estimated fair market value includes $18 million and $15 million of gross unrealized losses as of June 30, 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 June 30, 2023 (in millions):
Amortized CostEstimated Fair
Market Value
Due in one year or less$718 $714 
Due after one year 1,045 1,031 
Total $1,763 $1,745 
v3.23.2
Property and Equipment, net (Tables)
 6 Months Ended
Jun. 30, 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):
June 30, 2023December 31, 2022
Website development costs$378 $291 
Leasehold improvements90 90 
Office equipment, furniture and fixtures23 24 
Computer equipment18 18 
Construction-in-progress1 7 
Property and equipment510 430 
Less: accumulated amortization and depreciation(201)(159)
Property and equipment, net$309 $271 
v3.23.2
Intangible Assets, net (Tables)
 6 Months Ended
Jun. 30, 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):
 June 30, 2023
 CostAccumulated AmortizationNet
Software$72 $(21)$51 
Customer relationships58 (14)44 
Trade names and trademarks45 (17)28 
Developed technology49 (22)27 
Purchased content11 (8)3 
Total$235 $(82)$153 
 December 31, 2022
 CostAccumulated AmortizationNet
Customer relationships$59 $(10)$49 
Software54 (15)39 
Developed technology49 (15)34 
Trade names and trademarks45 (15)30 
Purchased content8 (6)2 
Total$215 $(61)$154 
v3.23.2
Debt (Tables)
 6 Months Ended
Jun. 30, 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):
June 30, 2023December 31, 2022
Credit facilities
Master repurchase agreements:
Atlas Securitized Products, L.P. (1)$19 $23 
JPMorgan Chase Bank, N.A.8 — 
Citibank, N.A.— 3 
Warehouse line of credit:
Comerica Bank39 11 
Total credit facilities66 37 
Convertible senior notes
1.375% convertible senior notes due 2026
496 495 
2.75% convertible senior notes due 2025
561 560 
0.75% convertible senior notes due 2024
606 605 
Total convertible senior notes1,663 1,660 
Total debt$1,729 $1,697 
(1) Agreement was reassigned from Credit Suisse AG, Cayman Islands (“Credit Suisse”) on May 25, 2023. See Credit Facilities section below for further information.
Schedule of Revolving Credit Facilities and Lines of Credit The following table summarizes certain details related to our outstanding master repurchase agreements and warehouse line of credit as of June 30, 2023 (in millions, except interest rates):
LenderMaturity DateMaximum Borrowing CapacityWeighted-Average Interest Rate
Atlas Securitized Products, L.P.March 11, 2024$50 7.07 %
JPMorgan Chase Bank, N.A.May 30, 2024100 6.75 %
Comerica BankDecember 29, 202350 7.05 %
Total$200 
Schedule 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):
June 30, 2023December 31, 2022
Maturity DateAggregate Principal AmountStated Interest RateEffective Interest RateSemi-Annual Interest Payment DatesUnamortized Debt Issuance CostsFair ValueUnamortized Debt Issuance CostsFair Value
September 1, 2026$499 1.375 %1.57 %March 1; September 1$3 $647 $4 $504 
May 15, 2025565 2.75 %3.20 %May 15; November 154 601 5 531 
September 1, 2024608 0.75 %1.02 %March 1; September 12 774 3 629 
Total$1,672 $9 $2,022 $12 $1,664 
Three Months Ended
June 30, 2023		Three Months Ended
June 30, 2022
Maturity DateContractual Coupon InterestAmortization of Debt Issuance CostsInterest ExpenseContractual Coupon InterestAmortization of Debt Issuance CostsInterest Expense
September 1, 2026$2 $1 $3 $1 $— $1 
May 15, 20254 1 5 4 1 5 
September 1, 20241 — 1 2 — 2 
Total$7 $2 $9 $7 $1 $8 
Six Months Ended
June 30, 2023		Six Months Ended
June 30, 2022
Maturity DateContractual Coupon InterestAmortization of Debt Issuance CostsInterest ExpenseContractual Coupon InterestAmortization of Debt Issuance CostsInterest Expense
September 1, 2026$4 $1 $5 $3 $— $3 
May 15, 20258 1 9 8 1 9 
September 1, 20242 1 3 3 1 4 
Total$14 $3 $17 $14 $2 $16 
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 certain details related to the capped call confirmations with respect to the convertible senior notes:
Maturity DateInitial Cap PriceCap Price Premium
September 1, 2026$80.5750 150 %
September 1, 202472.5175 125 %
July 1, 2023105.45 85 %
v3.23.2
Share Repurchase Authorizations (Tables)
 6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
Class of Treasury Stock
The following table summarizes, on a settlement date basis, 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):
 Three Months Ended
June 30, 2023		Three Months Ended
June 30, 2022
Class A common stockClass C capital stockClass A common stockClass C capital stock
Shares repurchased496 2,781 1,165 5,272 
Weighted-average price per share$45.18 $45.86 $38.31 $38.91 
Total purchase price$23 $127 $44 $205 
 Six Months Ended
June 30, 2023		Six Months Ended
June 30, 2022
Class A common stockClass C capital stockClass A common stockClass C capital stock
Shares repurchased810 4,479 2,577 9,718 
Weighted-average price per share$44.12 $44.76 $49.30 $48.40 
Total purchase price$36 $200 $127 $470 
v3.23.2
Share-Based Awards (Tables)
 6 Months Ended
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]  
Summary of Option Award Activity
The following table summarizes option award activity for the six months ended June 30, 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 7.08$15 
Granted6,287 42.16 
Exercised(823)37.60 
Forfeited or cancelled(671)49.94 
Outstanding at June 30, 202333,391 44.46 7.21276 
Vested and exercisable at June 30, 202318,805 44.88 5.94160 
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 all option awards granted for the periods presented:
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Expected volatility61%60%
55% - 61%
55% - 60%
Risk-free interest rate3.75%2.97%
3.75% - 4.04%
1.94% - 2.97%
Weighted-average expected life5.25 years5.00 years
5.25 - 6.50 years
4.50 - 6.00 years
Weighted-average fair value of options granted$25.81$17.82$23.76$24.60
Summary of Restricted Stock Units Activity
The following table summarizes activity for restricted stock units for the six months ended June 30, 2023:
Restricted
Stock Units (in thousands)		Weighted-Average Grant Date Fair Value
Unvested outstanding at January 1, 202310,930 $46.85 
Granted7,331 42.49 
Vested(2,921)47.16 
Forfeited(512)46.21 
Unvested outstanding at June 30, 202314,828 44.66 
Effects of Share Based Compensation in Consolidated Statements of Operations
The following table presents the effects of share-based compensation expense in our condensed consolidated statements of operations during the periods presented (in millions):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Cost of revenue$4 $4 $8 $7 
Sales and marketing19 14 35 25 
Technology and development42 38 81 66 
General and administrative65 43 109 78 
Share-based compensation - continuing operations130 99 233 176 
Share-based compensation - discontinued operations— 3 — 17 
Total share-based compensation$130 $102 $233 $193 
v3.23.2
Net Income (Loss) Per Share (Tables)
 6 Months Ended
Jun. 30, 2023
Earnings Per Share [Abstract]  
Antidilutive Securities Excluded from Computation of Earnings Per Share
For the periods presented, the following table reconciles the denominators used in the basic and diluted net income (loss) and net income (loss) from continuing operations per share calculations (in thousands):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Denominator for basic calculation233,629 243,942 234,023 246,229 
Effect of dilutive securities:
Option awards— 964 — 1,757 
Unvested restricted stock units— 257 — 558 
Denominator for dilutive calculation233,629 245,163 234,023 248,544 
For the periods presented, the following Class A common stock and Class C capital stock equivalents were excluded from the calculations of diluted net income (loss) and net income (loss) from continuing operations per share because their effect would have been antidilutive (in thousands):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2023202220232022
Weighted-average Class A common stock and Class C capital stock option awards outstanding22,315 207 20,045 2,650 
Weighted-average Class A common stock and Class C capital stock restricted stock units outstanding15,366 7,357 13,746 5,284 
Class C capital stock issuable upon conversion of the Notes33,855 33,855 33,855 33,855 
Total Class A common stock and Class C capital stock equivalents71,536 41,419 67,646 41,789 
v3.23.2
Revenue and Contract Balances (Tables)
 6 Months Ended
Jun. 30, 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):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
Residential$380 $392 $741 $810 
Rentals91 71 165 132 
Mortgages24 29 50 75 
Other11 1219 23
Total revenue$506 $504 $975 $1,040 
v3.23.2
Discontinued Operations - Major Line Items Included in Statement of Operations (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Operating expenses:        
Net loss from discontinued operations $ 0 $ (2) $ 0 $ (11)
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   505   4,226
Cost of revenue   469   3,999
Gross profit   36   227
Operating expenses:        
Sales and marketing   19   152
Technology and development   0   6
General and administrative   3   10
Restructuring costs   1   25
Total operating expenses   23   193
Income from discontinued operations   13   34
Loss on extinguishment of debt   (7)   (21)
Other income   7   13
Interest expense   0   (36)
Income (loss) from discontinued operations before income taxes   13   (10)
Income tax expense   (15)   (1)
Net loss from discontinued operations   $ (2)   $ (11)
Net loss from discontinued operations per share:        
Basic (usd per share)   $ (0.01)   $ (0.04)
Diluted (usd per share)   $ (0.01)   $ (0.04)
v3.23.2
Discontinued Operations - Non-Cash Items and Capital Expenditures (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]      
Settlement of beneficial interests in securitizations   $ 0 $ (79)
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]      
Amortization of debt discount and debt issuance costs     21
Loss on debt extinguishment $ 7   21
Share-based compensation     15
Inventory valuation adjustment     9
Depreciation and amortization     $ 7
v3.23.2
Discontinued Operations - Narrative (Details) - Employee Severance - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Restructuring charges $ 2,000,000 $ 0 $ 2,000,000 $ 14,000,000
Cumulative restructuring charges   $ 23,000,000   $ 23,000,000
v3.23.2
Fair Value Measurements - Fair Value Measurement Inputs and Valuation Techniques (Details) - IRLCs - Not Designated as Hedging Instrument
Jun. 30, 2023
Dec. 31, 2022
Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value rates, IRLCs 0.48 0.47
Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value rates, IRLCs 0.99 1
Weighted-average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair value rates, IRLCs 0.83 0.87
v3.23.2
Fair Value Measurements - Additional Information (Detail) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Mortgage Loans Held For Sale    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 118 $ 62
IRLCs    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Notional amount $ 155 $ 90
v3.23.2
Fair Value Measurements - Fair Value of Cash Equivalents and Investments (Detail) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments $ 1,745  
Mortgage loans held for sale 73 $ 41
Total 3,329 3,276
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mortgage loans held for sale 0 0
Total 1,394 1,338
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mortgage loans held for sale 73 41
Total 1,934 1,938
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Mortgage loans held for sale 0 0
Total 1 0
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,394 1,338
Money market funds | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 1,394 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
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 115  
Short-term investments 42 10
Commercial paper | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents  
Short-term investments 0 0
Commercial paper | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 115  
Short-term investments 42 10
Commercial paper | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents  
Short-term investments 0 0
U.S. government treasury securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 1,529 1,716
U.S. government treasury securities | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
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]    
Short-term investments 1,529 1,716
U.S. government treasury securities | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 0 0
Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 160 161
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 160 161
Corporate bonds | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 0 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 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 0
IRLCs | Not Designated as Hedging Instrument    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Forward contracts - other current assets 1  
IRLCs | 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 | 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 0  
IRLCs | 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 1  
Forward contracts - 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 1 1
Forward contracts - 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 0
Forward contracts - 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 1 1
Forward contracts - 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 $ 0 $ 0
v3.23.2
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
Jun. 30, 2023
Dec. 31, 2022
Cash and Cash Equivalents, at Carrying Value [Abstract]    
Cash and cash equivalents $ 1,566 $ 1,466
Short-term investments:    
Amortized Cost 1,763  
Estimated Fair Market Value 1,745  
Restricted cash 2 2
Estimated Fair Market Value, Total 3,313 3,364
Cash, Cash Equivalents, and Short-Term Investments, Amortized Cost 3,331 3,380
U.S. government treasury securities    
Short-term investments:    
Amortized Cost 1,547 1,731
Estimated Fair Market Value 1,529 1,716
Corporate bonds    
Short-term investments:    
Amortized Cost 160 162
Estimated Fair Market Value 160 161
Commercial paper    
Short-term investments:    
Amortized Cost 42 10
Estimated Fair Market Value 42 10
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 18 15
Cash    
Cash and Cash Equivalents, at Carrying Value [Abstract]    
Cash and cash equivalents 57 128
Money market funds    
Cash and Cash Equivalents, at Carrying Value [Abstract]    
Cash and cash equivalents 1,394 1,338
Commercial paper    
Cash and Cash Equivalents, at Carrying Value [Abstract]    
Cash and cash equivalents $ 115 $ 0
v3.23.2
Cash and Cash Equivalents, Investments and Restricted Cash - Available-for-sale Investments By Contractual Maturity Date (Details)
$ in Millions
Jun. 30, 2023
USD ($)
Amortized Cost  
Due in one year or less $ 718
Due after one year 1,045
Amortized Cost 1,763
Estimated Fair Market Value  
Due in one year or less 714
Due after one year 1,031
Estimated Fair Market Value $ 1,745
v3.23.2
Property and Equipment, net - Detail of Property and Equipment (Detail) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Less: accumulated amortization and depreciation $ 510 $ 430
Less: accumulated amortization and depreciation (201) (159)
Property and equipment, net 309 271
Website development costs    
Property, Plant and Equipment [Line Items]    
Less: accumulated amortization and depreciation 378 291
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Less: accumulated amortization and depreciation 90 90
Office equipment, furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Less: accumulated amortization and depreciation 23 24
Computer equipment    
Property, Plant and Equipment [Line Items]    
Less: accumulated amortization and depreciation 18 18
Construction-in-progress    
Property, Plant and Equipment [Line Items]    
Less: accumulated amortization and depreciation $ 1 $ 7
v3.23.2
Property and Equipment, net - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Property, Plant and Equipment [Line Items]        
Amortization and depreciation expense related to property and equipment other than website development costs $ 6 $ 6 $ 12 $ 13
Capitalization of website development costs 50 34 95 67
Amortization of website development costs and intangible assets included in technology and development 12 17 24 36
Technology and development | Software Development        
Property, Plant and Equipment [Line Items]        
Amortization of website development costs and intangible assets included in technology and development $ 27 $ 18 $ 49 $ 31
v3.23.2
Intangible Assets, net - Intangible Assets (Detail) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Cost $ 235 $ 215
Accumulated Amortization (82) (61)
Net 153 154
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Cost 72 54
Accumulated Amortization (21) (15)
Net 51 39
Software    
Finite-Lived Intangible Assets [Line Items]    
Cost 58 59
Accumulated Amortization (14) (10)
Net 44 49
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Cost 45 45
Accumulated Amortization (17) (15)
Net 28 30
Trade names and trademarks    
Finite-Lived Intangible Assets [Line Items]    
Cost 49 49
Accumulated Amortization (22) (15)
Net 27 34
Purchased content    
Finite-Lived Intangible Assets [Line Items]    
Cost 11 8
Accumulated Amortization (8) (6)
Net $ 3 $ 2
v3.23.2
Intangible Assets, net - Additional Information (Detail) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]        
Amortization of website development costs and intangible assets included in technology and development $ 12,000,000 $ 17,000,000 $ 24,000,000 $ 36,000,000
Non-cash impairment charge $ 0 $ 0 $ 0 $ 0
v3.23.2
Debt - Schedule of Carrying Value of Debt (Details) - USD ($)
$ in Millions
Jun. 30, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
Total debt $ 1,729 $ 1,697
Convertible senior notes    
Debt Instrument [Line Items]    
Total convertible senior notes 1,663 1,660
Convertible senior notes | 1.375% convertible senior notes due 2026    
Debt Instrument [Line Items]    
Total convertible senior notes $ 496 495
Stated Interest Rate 1.375%  
Convertible senior notes | 2.75% convertible senior notes due 2025    
Debt Instrument [Line Items]    
Total convertible senior notes $ 561 560
Stated Interest Rate 2.75%  
Convertible senior notes | 0.75% convertible senior notes due 2024    
Debt Instrument [Line Items]    
Total convertible senior notes $ 606 605
Stated Interest Rate 0.75%  
Credit facilities    
Debt Instrument [Line Items]    
Warehouse line of credit $ 66 37
Atlas Securitized Products, L.P. | Credit facilities    
Debt Instrument [Line Items]    
Repurchase agreements 19 23
JPMorgan Chase Bank, N.A. | Credit facilities    
Debt Instrument [Line Items]    
Repurchase agreements 8 0
Citibank, N.A. | Credit facilities    
Debt Instrument [Line Items]    
Repurchase agreements 0 3
Comerica Bank | Line of Credit | Credit facilities    
Debt Instrument [Line Items]    
Warehouse line of credit $ 39 $ 11
v3.23.2
Debt - Mortgages Segment, Schedule of Warehouse Lines of Credit (Details) - Line of Credit - Credit facilities - USD ($)
Jun. 30, 2023
Jun. 01, 2023
Debt Instrument [Line Items]    
Maximum Borrowing Capacity $ 200,000,000  
Atlas Securitized Products, L.P.    
Debt Instrument [Line Items]    
Maximum Borrowing Capacity $ 50,000,000  
Weighted-Average Interest Rate 7.07%  
JPMorgan Chase Bank, N.A.    
Debt Instrument [Line Items]    
Maximum Borrowing Capacity $ 100,000,000 $ 100,000,000
Weighted-Average Interest Rate 6.75%  
Comerica Bank    
Debt Instrument [Line Items]    
Maximum Borrowing Capacity $ 50,000,000  
Weighted-Average Interest Rate 7.05%  
v3.23.2
Debt - Credit Facilities - Narrative (Detail) - Credit facilities - USD ($)
Jun. 30, 2023
Jun. 09, 2023
Jun. 01, 2023
Dec. 31, 2022
Line of Credit        
Debt Instrument [Line Items]        
Maximum borrowing capacity $ 200,000,000      
JPMorgan Chase Bank, N.A.        
Debt Instrument [Line Items]        
Short-term debt 8,000,000     $ 0
JPMorgan Chase Bank, N.A. | Line of Credit        
Debt Instrument [Line Items]        
Maximum borrowing capacity 100,000,000   $ 100,000,000  
Repurchase agreement committed amount     $ 25,000,000  
Credit Suisse and Citibank, N.A        
Debt Instrument [Line Items]        
Short-term debt 28,000,000     28,000,000
Citibank, N.A.        
Debt Instrument [Line Items]        
Short-term debt $ 0     $ 3,000,000
Citibank, N.A. | Line of Credit        
Debt Instrument [Line Items]        
Maximum borrowing capacity   $ 100,000,000    
v3.23.2
Debt - Schedule of Convertible Senior Notes (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Debt Instrument [Line Items]          
Interest Expense $ 9,000,000 $ 9,000,000 $ 18,000,000 $ 17,000,000  
Convertible senior notes          
Debt Instrument [Line Items]          
Aggregate Principal Amount 1,672,000,000   1,672,000,000    
Unamortized Debt Issuance Costs 9,000,000   9,000,000   $ 12,000,000
Fair Value 2,022,000,000   2,022,000,000   1,664,000,000
Contractual Coupon Interest 7,000,000 7,000,000 14,000,000 14,000,000  
Amortization of Debt Issuance Costs 2,000,000 1,000,000 3,000,000 2,000,000  
Interest Expense 9,000,000 8,000,000 17,000,000 16,000,000  
Convertible senior notes | 2026 Notes          
Debt Instrument [Line Items]          
Aggregate Principal Amount $ 499,000,000   $ 499,000,000    
Stated Interest Rate 1.375%   1.375%    
Effective Interest Rate 1.57%   1.57%    
Unamortized Debt Issuance Costs $ 3,000,000   $ 3,000,000   4,000,000
Fair Value 647,000,000   647,000,000   504,000,000
Contractual Coupon Interest 2,000,000 1,000,000 4,000,000 3,000,000  
Amortization of Debt Issuance Costs 1,000,000 0 1,000,000 0  
Interest Expense 3,000,000 1,000,000 5,000,000 3,000,000  
Convertible senior notes | 2.75% convertible senior notes due 2025          
Debt Instrument [Line Items]          
Aggregate Principal Amount $ 565,000,000   $ 565,000,000    
Stated Interest Rate 2.75%   2.75%    
Effective Interest Rate 3.20%   3.20%    
Unamortized Debt Issuance Costs $ 4,000,000   $ 4,000,000   5,000,000
Fair Value 601,000,000   601,000,000   531,000,000
Contractual Coupon Interest 4,000,000 4,000,000 8,000,000 8,000,000  
Amortization of Debt Issuance Costs 1,000,000 1,000,000 1,000,000 1,000,000  
Interest Expense 5,000,000 5,000,000 9,000,000 9,000,000  
Convertible senior notes | 0.75% convertible senior notes due 2024          
Debt Instrument [Line Items]          
Aggregate Principal Amount $ 608,000,000   $ 608,000,000    
Stated Interest Rate 0.75%   0.75%    
Effective Interest Rate 1.02%   1.02%    
Unamortized Debt Issuance Costs $ 2,000,000   $ 2,000,000   3,000,000
Fair Value 774,000,000   774,000,000   $ 629,000,000
Contractual Coupon Interest 1,000,000 2,000,000 2,000,000 3,000,000  
Amortization of Debt Issuance Costs 0 0 1,000,000 1,000,000  
Interest Expense $ 1,000,000 $ 2,000,000 $ 3,000,000 $ 4,000,000  
v3.23.2
Debt - Summary of Conversion and Redemption (Details) - Convertible senior notes
 6 Months Ended
Jun. 30, 2023
$ / shares
1.375% convertible senior notes due 2026  
Debt Instrument [Line Items]  
Conversion Rate 0.0229830
Conversion price per share (usd per share) $ 43.51
2.75% convertible senior notes due 2025  
Debt Instrument [Line Items]  
Conversion Rate 0.0148810
Conversion price per share (usd per share) $ 67.20
0.75% convertible senior notes due 2024  
Debt Instrument [Line Items]  
Conversion Rate 0.0229830
Conversion price per share (usd per share) $ 43.51
v3.23.2
Debt - Capped Call Confirmations (Details) - Convertible senior notes
 6 Months Ended
Jun. 30, 2023
$ / shares
2026 Notes  
Debt Instrument [Line Items]  
Initial cap price (usd per share) $ 80.5750
Cap Price Premium 150.00%
0.75% convertible senior notes due 2024  
Debt Instrument [Line Items]  
Initial cap price (usd per share) $ 72.5175
Cap Price Premium 125.00%
2023 Notes  
Debt Instrument [Line Items]  
Initial cap price (usd per share) $ 105.45
Cap Price Premium 85.00%
v3.23.2
Debt - Convertible Senior Notes Narrative (Details) - Convertible Senior Notes due 2023, 2024, 2025 and 2026 - Convertible senior notes
 6 Months Ended
Jun. 30, 2023
day
Debt Instrument [Line Items]  
Debt instrument, convertible threshold percentage 130.00%
Debt instrument, convertible threshold trading days 20
Debt instrument, threshold consecutive trading days 30
v3.23.2
Income Taxes - Narrative (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Dec. 31, 2022
Schedule Of Income Tax [Line Items]          
Income tax expense (benefit) $ 1 $ (9) $ 1 $ (4)  
Federal          
Schedule Of Income Tax [Line Items]          
Net operating loss carryforwards         $ 1,800
State          
Schedule Of Income Tax [Line Items]          
Net operating loss carryforwards         $ 63
v3.23.2
Share Repurchase Authorizations - Additional Information (Detail) - USD ($)
$ in Millions
Jul. 31, 2023
Jul. 30, 2023
Jun. 30, 2023
Class of Stock [Line Items]      
Stock repurchase program, remaining authorized repurchase amount     $ 264
Subsequent Event      
Class of Stock [Line Items]      
Stock repurchase program, authorized amount $ 2,500 $ 1,800  
Stock repurchase program, remaining authorized repurchase amount 1,000    
Stock repurchase program, additional authorized amount $ 750    
v3.23.2
Share Repurchase Authorizations - Repurchase Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Class A common stock        
Class of Stock [Line Items]        
Shares repurchased (in shares) 496 1,165 810 2,577
Weighted-average price per share (in USD per share) $ 45.18 $ 38.31 $ 44.12 $ 49.30
Total purchase price $ 23 $ 44 $ 36 $ 127
Class C capital stock        
Class of Stock [Line Items]        
Shares repurchased (in shares) 2,781 5,272 4,479 9,718
Weighted-average price per share (in USD per share) $ 45.86 $ 38.91 $ 44.76 $ 48.40
Total purchase price $ 127 $ 205 $ 200 $ 470
v3.23.2
Share-Based Awards - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2023
Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Vesting period 3 years 4 years
Option awards    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized cost of unvested share-based compensation awards   $ 426
Unvested restricted stock units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total unrecognized compensation cost   $ 604
v3.23.2
Share-Based Awards - Summary of Option Award (Detail)
$ / shares in Units, shares in Thousands, $ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2023
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Number of Shares Subject to Existing Options (in thousands)    
Beginning Balance (in shares) | shares 28,598  
Granted (in shares) | shares 6,287  
Exercised (in shares) | shares (823)  
Forfeited or cancelled (in shares) | shares (671)  
Ending Balance (in shares) | shares 33,391 28,598
Vested and exercisable (in shares) | shares 18,805  
Weighted- Average Exercise Price Per Share    
Beginning Balance (usd per share) | $ / shares $ 44.90  
Granted (usd per share) | $ / shares 42.16  
Exercised (usd per share) | $ / shares 37.60  
Forfeited or cancelled (usd per share) | $ / shares 49.94  
Ending Balance (usd per share) | $ / shares 44.46 $ 44.90
Vested and exercisable (usd per share) | $ / shares $ 44.88  
Weighted- Average Remaining Contractual Life (Years)    
Weighted-Average Remaining Contractual Life, Outstanding 7 years 2 months 15 days 7 years 29 days
Weighted-Average Remaining Contractual Life, Vested and exercisable 5 years 11 months 8 days  
Aggregate Intrinsic Value    
Aggregate Intrinsic Value, Outstanding | $ $ 276 $ 15
Aggregate Intrinsic Value, Vested and exercisable | $ $ 160  
v3.23.2
Share-Based Awards - Fair Value of Options Granted, Estimated at Date of Grant Using Black Scholes Merton Option Pricing Model (Detail) - Option awards - $ / shares
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected volatility 61.00% 60.00%    
Weighted-average fair value of options granted (usd per share) $ 25.81 $ 17.82 $ 23.76 $ 24.60
Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected volatility     55.00% 55.00%
Risk-free interest rate 3.75% 2.97% 3.75% 1.94%
Weighted-average expected life 5 years 3 months 5 years 5 years 3 months 4 years 6 months
Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Expected volatility     61.00% 60.00%
Risk-free interest rate     4.04% 2.97%
Weighted-average expected life     6 years 6 months 6 years
v3.23.2
Share-Based Awards - Summary of Restricted Stock Units Activity (Detail) - Unvested restricted stock units
shares in Thousands
 6 Months Ended
Jun. 30, 2023
$ / shares
shares
Restricted Stock Units (in thousands)  
Beginning balance (in shares) | shares 10,930
Granted (in shares) | shares 7,331
Vested (in shares) | shares (2,921)
Forfeited (in shares) | shares (512)
Ending balance (in shares) | shares 14,828
Weighted-Average Grant Date Fair Value  
Unvested outstanding, beginning balance (usd per share) | $ / shares $ 46.85
Granted (usd per share) | $ / shares 42.49
Vested (usd per share) | $ / shares 47.16
Forfeited (usd per share) | $ / shares 46.21
Unvested outstanding, ending balance (usd per share) | $ / shares $ 44.66
v3.23.2
Share-Based Awards - Effects of Share Based Compensation in Consolidated Statements of Operations (Detail) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based compensation $ 130 $ 102 $ 233 $ 193
Share-based compensation - continuing operations        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based compensation 130 99 233 176
Share-based compensation - discontinued operations        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based compensation 0 3 0 17
Cost of revenue        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based compensation 4 4 8 7
Sales and marketing        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based compensation 19 14 35 25
Technology and development        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based compensation 42 38 81 66
General and administrative        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based compensation $ 65 $ 43 $ 109 $ 78
v3.23.2
Net Income (Loss) Per Share - Schedule of Denominators Used in Basic and Diluted Per Share Calculations (Details) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]        
Denominator for basic calculation (in shares) 233,629 243,942 234,023 246,229
Denominator for dilutive calculation (in shares) 233,629 245,163 234,023 248,544
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) 0 964 0 1,757
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) 0 257 0 558
v3.23.2
Net Income (Loss) Per Share - Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Class A Common Stock and Class C Capital Stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total Class A common stock and Class C capital stock equivalents (in shares) 71,536 41,419 67,646 41,789
Class A Common Stock and Class C Capital Stock | 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) 22,315 207 20,045 2,650
Class A Common Stock and Class C Capital Stock | 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) 15,366 7,357 13,746 5,284
Common Class C | Class C capital stock issuable upon conversion of the Notes        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Total Class A common stock and Class C capital stock equivalents (in shares) 33,855 33,855 33,855 33,855
v3.23.2
Commitments and Contingencies - Additional Information (Detail)
Oct. 28, 2022
patent
Sep. 14, 2022
claim
Aug. 31, 2022
patent
Aug. 01, 2022
patent
Jul. 15, 2022
patent
Mar. 02, 2022
patent
Jan. 06, 2022
claim
Jul. 23, 2021
patent
Mar. 22, 2021
patent
Mar. 15, 2021
patent
Sep. 18, 2020
patent
petition
Jul. 21, 2020
patent
Sep. 17, 2019
patent
Feb. 28, 2018
claim
Feb. 16, 2018
claim
Feb. 05, 2018
claim
Sep. 30, 2017
claim
Other Commitments [Line Items]                                  
Number of patents infringed                 3 2 3 5 7        
Number of petitions filed               1     4            
Number of patents in favor         2                        
Number of petitions previously denied     2                            
Number of patents vacated     1                            
Number of remaining inter parties review           2                      
Loss contingency, number of patents invalid 1                                
Loss contingency, number of appeals filed on dismissed patents       2                          
Class Action Lawsuits                                  
Other Commitments [Line Items]                                  
Number of pending claims | claim                                 2
Shareholder Derivative Lawsuits                                  
Other Commitments [Line Items]                                  
Number of pending claims | claim   3         3             4 2 2  
v3.23.2
Revenue and Contract Balances - Disaggregation of Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Disaggregation of Revenue [Line Items]        
Total revenue $ 506 $ 504 $ 975 $ 1,040
Residential        
Disaggregation of Revenue [Line Items]        
Total revenue 380 392 741 810
Rentals        
Disaggregation of Revenue [Line Items]        
Total revenue 91 71 165 132
Mortgages        
Disaggregation of Revenue [Line Items]        
Total revenue 24 29 50 75
Other        
Disaggregation of Revenue [Line Items]        
Total revenue $ 11 $ 12 $ 19 $ 23
v3.23.2
Revenue and Contract Balances - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]                
Contract asset $ 90   $ 90     $ 71    
Revenue recognized, recorded in deferred revenue as of prior period 46 $ 52 42 $ 49        
Deferred revenue $ 49 $ 52 $ 49 $ 52 $ 49 $ 44 $ 56 $ 51
v3.23.2
Subsequent Event (Details)
$ in Millions
Jul. 31, 2023
USD ($)
Arveo, Inc. | Subsequent Event  
Subsequent Event [Line Items]  
Business combination, consideration transferred $ 35