Z
illow's shares surged today after the online real estate platform reported strong third-quarter results, with the stock closing up 23.8%. Revenue rose 17% to $581 million, exceeding expectations of $554.7 million and the midpoint of Zillow's guidance at $553 million.

    Growth was widespread across various segments, including residential revenue, which increased 12% to $405 million as more buyers and sellers worked with Zillow agent partners. Rentals revenue jumped 24% to $123 million, while mortgage revenue soared 63% to $39 million. The company's enhanced-markets strategy is also paying off, offering an end-to-end experience in dozens of metros.

    Zillow's bottom line showed significant improvement, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reaching $127 million, well ahead of guidance. On a generally accepted accounting principles (GAAP) basis, the company posted a loss of $20 million, or $0.08 per share.

    CEO Jeremy Wacksman attributed the strong quarter to continued investment in technology solutions that build an integrated transaction experience for consumers. Looking ahead, Zillow expects total revenue of $525 million to $540 million and adjusted EBITDA of $90 million to $105 million in the fourth quarter. The company's improving EBITDA margins and 17% growth in the quarter are positive signs, especially if the housing market recovers.