Z
illow's revenue surged 15% in the second quarter, exceeding expectations at $655 million. The company's core residential business remains strong, but significant growth in its rentals and mortgage divisions is driving the increase. Zillow Home Loans saw a 41% year-over-year jump to $48 million, while the rentals marketplace revenue rose 36% to $159 million.

    CEO Jeremy Wacksman attributed the growth to an increase in customer connections with agents through Zillow's "enhanced market partners" program. This has led to more referrals for Zillow mortgages and a higher chance of closing deals. The company aims to reach 35% of prospective buyers working with these agents by year-end, eventually increasing to 75%.

    Zillow is also gaining ground in the multifamily rentals market, listing 64,000 apartment buildings on its site, up from 50,000 last year. With home sales expected to remain subdued, Wacksman sees this as an opportunity to grow market share for when the market rebounds.

    Key metrics include:

    * Revenue: $655 million (up 15% YoY)

    * Residential revenue: $482 million (up 9%)

    * Cash and investments: $1.2 billion

    * Adjusted EBITDA: $155 million (up from $134 million last year)

    * Net income/loss: A gain of $2 million

    Zillow's Q3 outlook estimates revenue to be in the $663-673 million range, continuing double-digit growth. The company has introduced new features, including SkyTour and improved tour scheduling, which are seeing strong engagement from agents and customers alike.