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v3.20.2

Segment Information and Revenue (Tables) | 9 Months Ended
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Sep. 30, 2020
Segment Reporting [Abstract] |
Revenue Categories | This information is included in the following tables for the periods presented (in thousands, unaudited):
| Three Months Ended September 30, 2020 |  | Three Months Ended September 30, 2019
| Homes |  | IMT |  | Mortgages |  | Homes |  | IMT |  | Mortgages
Revenue: |  |  |  |  |  |  |  |  |  |  |
Zillow Offers | $ | 185,904 |  |  | $ | — |  |  | $ | — |  |  | $ | 384,626 |  |  | $ | — |  |  | $ | — |
Premier Agent | — |  |  | 298,673 |  |  | — |  |  | — |  |  | 240,698 |  |  | — |
Other | 1,201 |  |  | 116,716 |  |  | — |  |  | — |  |  | 94,592 |  |  | — |
Mortgages | — |  |  | — |  |  | 54,198 |  |  | — |  |  | — |  |  | 25,292 |
Total revenue | 187,105 |  |  | 415,389 |  |  | 54,198 |  |  | 384,626 |  |  | 335,290 |  |  | 25,292 |
Costs and expenses: |  |  |  |  |  |  |  |  |  |  |
Cost of revenue | 179,804 |  |  | 28,448 |  |  | 7,972 |  |  | 370,796 |  |  | 24,318 |  |  | 4,721 |
Sales and marketing | 32,714 |  |  | 102,902 |  |  | 15,210 |  |  | 49,186 |  |  | 118,514 |  |  | 13,647 |
Technology and development | 28,273 |  |  | 90,536 |  |  | 8,491 |  |  | 20,651 |  |  | 94,656 |  |  | 8,667 |
General and administrative | 20,334 |  |  | 53,547 |  |  | 12,014 |  |  | 22,174 |  |  | 55,749 |  |  | 10,570 |
Integration costs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5 |
Total costs and expenses (1) | 261,125 |  |  | 275,433 |  |  | 43,687 |  |  | 462,807 |  |  | 293,237 |  |  | 37,610 |
Income (loss) from operations | (74,020) |  |  | 139,956 |  |  | 10,511 |  |  | (78,181) |  |  | 42,053 |  |  | (12,318) |
Segment other income | — |  |  | — |  |  | 636 |  |  | — |  |  | — |  |  | 344 |
Segment interest expense | (1,597) |  |  | — |  |  | (553) |  |  | (9,689) |  |  | — |  |  | (280) |
Income (loss) before income taxes (2) | $ | (75,617) |  |  | $ | 139,956 |  |  | $ | 10,594 |  |  | $ | (87,870) |  |  | $ | 42,053 |  |  | $ | (12,254) |
| Nine Months Ended September 30, 2020 |  | Nine Months Ended September 30, 2019
| Homes |  | IMT |  | Mortgages |  | Homes |  | IMT |  | Mortgages
Revenue: |  |  |  |  |  |  |  |  |  |  |
Zillow Offers | $ | 1,408,832 |  |  | $ | — |  |  | $ | — |  |  | $ | 762,022 |  |  | $ | — |  |  | $ | — |
Premier Agent | — |  |  | 732,741 |  |  | — |  |  | — |  |  | 690,394 |  |  | — |
Other | 2,398 |  |  | 293,653 |  |  | — |  |  | — |  |  | 266,837 |  |  | — |
Mortgages | — |  |  | — |  |  | 113,241 |  |  | — |  |  | — |  |  | 79,637 |
Total revenue | 1,411,230 |  |  | 1,026,394 |  |  | 113,241 |  |  | 762,022 |  |  | 957,231 |  |  | 79,637 |
Costs and expenses: |  |  |  |  |  |  |  |  |  |  |
Cost of revenue | 1,343,791 |  |  | 76,153 |  |  | 19,023 |  |  | 733,947 |  |  | 74,628 |  |  | 13,829 |
Sales and marketing | 152,180 |  |  | 319,101 |  |  | 39,791 |  |  | 107,457 |  |  | 380,608 |  |  | 42,302 |
Technology and development | 89,729 |  |  | 278,740 |  |  | 22,606 |  |  | 51,130 |  |  | 276,886 |  |  | 24,058 |
General and administrative | 65,657 |  |  | 166,185 |  |  | 31,849 |  |  | 54,339 |  |  | 181,270 |  |  | 31,497 |
Impairment costs | — |  |  | 73,900 |  |  | 2,900 |  |  | — |  |  | — |  |  | — |
Integration costs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 650 |
Total costs and expenses (1) | 1,651,357 |  |  | 914,079 |  |  | 116,169 |  |  | 946,873 |  |  | 913,392 |  |  | 112,336 |
Income (loss) from operations | (240,127) |  |  | 112,315 |  |  | (2,928) |  |  | (184,851) |  |  | 43,839 |  |  | (32,699) |
Segment other income | — |  |  | 5,300 |  |  | 1,223 |  |  | — |  |  | — |  |  | 1,059 |
Segment interest expense | (13,506) |  |  | — |  |  | (1,086) |  |  | (19,346) |  |  | — |  |  | (668) |
Income (loss) before income taxes (2) | $ | (253,633) |  |  | $ | 117,615 |  |  | $ | (2,791) |  |  | $ | (204,197) |  |  | $ | 43,839 |  |  | $ | (32,308) |
(1) The following tables present depreciation and amortization expense and share-based compensation expense for each of our segments for the periods presented (in thousands, unaudited):
| Three Months Ended September 30, 2020 |  | Three Months Ended September 30, 2019
| Homes |  | IMT |  | Mortgages |  | Homes |  | IMT |  | Mortgages
Depreciation and amortization expense | $ | 3,029 |  |  | $ | 22,074 |  |  | $ | 1,675 |  |  | $ | 2,331 |  |  | $ | 18,362 |  |  | $ | 1,467 |
Share-based compensation expense | $ | 11,815 |  |  | $ | 33,435 |  |  | $ | 3,709 |  |  | $ | 8,025 |  |  | $ | 30,687 |  |  | $ | 3,416 |
| Nine Months Ended September 30, 2020 |  | Nine Months Ended September 30, 2019
| Homes |  | IMT |  | Mortgages |  | Homes |  | IMT |  | Mortgages
Depreciation and amortization expense | $ | 9,201 |  |  | $ | 67,889 |  |  | $ | 4,887 |  |  | $ | 5,384 |  |  | $ | 54,264 |  |  | $ | 4,240 |
Share-based compensation expense | $ | 35,847 |  |  | $ | 98,940 |  |  | $ | 10,318 |  |  | $ | 20,666 |  |  | $ | 118,101 |  |  | $ | 13,117 |
(2) The following table presents the reconciliation of total segment income (loss) before income taxes to consolidated income (loss) before income taxes for the periods presented (in thousands, unaudited):
| Three Months Ended September 30, |  | Nine Months Ended September 30, 2020
| 2020 |  | 2019 |  | 2020 |  | 2019
Total segment income (loss) before income taxes | $ | 74,933 |  |  | $ | (58,071) |  |  | $ | (138,809) |  |  | $ | (192,666) |
Corporate interest expense | (37,320) |  |  | (16,533) |  |  | (100,060) |  |  | (41,851) |
Corporate other income | 2,382 |  |  | 8,655 |  |  | 16,203 |  |  | 26,566 |
Gain on partial extinguishment of 2021 Notes | — |  |  | — |  |  | 6,391 |  |  | — |
Consolidated income (loss) before income taxes | $ | 39,995 |  |  | $ | (65,949) |  |  | $ | (216,275) |  |  | $ | (207,951) |
Reconciliation of Segment Gross Profit and Loss | The following table presents the reconciliation of total segment income (loss) before income taxes to consolidated income (loss) before income taxes for the periods presented (in thousands, unaudited):
| Three Months Ended September 30, |  | Nine Months Ended September 30, 2020
| 2020 |  | 2019 |  | 2020 |  | 2019
Total segment income (loss) before income taxes | $ | 74,933 |  |  | $ | (58,071) |  |  | $ | (138,809) |  |  | $ | (192,666) |
Corporate interest expense | (37,320) |  |  | (16,533) |  |  | (100,060) |  |  | (41,851) |
Corporate other income | 2,382 |  |  | 8,655 |  |  | 16,203 |  |  | 26,566 |
Gain on partial extinguishment of 2021 Notes | — |  |  | — |  |  | 6,391 |  |  | — |
Consolidated income (loss) before income taxes | $ | 39,995 |  |  | $ | (65,949) |  |  | $ | (216,275) |  |  | $ | (207,951) |

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- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
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