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Segment Information and Revenue
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Information and Revenue Segment Information and Revenue
We have three operating and reportable segments, which have been identified based on the way in which our chief operating decision-maker manages our business, makes operating decisions and evaluates operating performance. The chief executive officer acts as the chief operating decision-maker and reviews financial and operational information for the Homes, Internet, Media & Technology (“IMT”) and Mortgages segments.
The Homes segment includes the financial results from Zillow Group’s purchase and sale of homes directly through Zillow Offers and the financial results from title and escrow services through Zillow Closing Services. The IMT segment includes the financial results for the Premier Agent, rentals and new construction marketplaces, dotloop and display, as well as revenue from the sale of various other marketing and business products and services to real estate professionals. The Mortgages segment primarily includes financial results for mortgage originations and the sale of mortgages on the secondary market through Zillow Home Loans and advertising sold to mortgage lenders and other mortgage professionals.
Revenue and costs are directly attributed to our segments when possible. However, due to the integrated structure of our business, certain costs incurred by one segment may benefit the other segments. These costs primarily include headcount-related expenses, general and administrative expenses including executive, finance, accounting, legal, human resources, recruiting and facilities costs, product development and data acquisition costs, costs related to operating our mobile applications and websites, and marketing and advertising costs. These costs are allocated to each segment based on the estimated benefit each segment receives from such expenditures.
The chief executive officer reviews information about our revenue categories as well as statement of operations data inclusive of income (loss) before income taxes by segment. This information is included in the following tables for the periods presented (in thousands) and prior period amounts have been recast to conform to the current format (see Note 2 for additional details regarding the reclassifications):
 Three Months Ended
June 30, 2021		Three Months Ended
June 30, 2020
HomesIMTMortgagesHomesIMTMortgages
Revenue:
Zillow Offers$772,030 $— $— $453,816 $— $— 
Premier Agent— 348,754 — — 191,962 — 
Other5,115 127,336 — 436 88,377 — 
Mortgages— — 56,745 — — 33,761 
Total revenue777,145 476,090 56,745 454,252 280,339 33,761 
Cost of revenue (1)707,522 43,444 20,619 434,900 45,354 7,229 
Gross profit69,623 432,646 36,126 19,352 234,985 26,532 
Operating expenses (1):
Sales and marketing65,791 136,620 27,023 47,539 101,458 11,670 
Technology and development30,328 89,838 8,297 26,155 65,890 5,462 
General and administrative27,824 68,944 18,334 21,891 53,771 9,718 
Acquisition-related costs— 3,671 — — — — 
Total operating expenses123,943 299,073 53,654 95,585 221,119 26,850 
Income (loss) from operations
(54,320)133,573 (17,528)(76,233)13,866 (318)
Segment other income— — 1,006 — 5,300 385 
Segment interest expense (5,026)— (1,163)(3,825)— (307)
Income (loss) before income taxes (2)
$(59,346)$133,573 $(17,685)$(80,058)$19,166 $(240)
 Six Months Ended
June 30, 2021		Six Months Ended
June 30, 2020
HomesIMTMortgagesHomesIMTMortgages
Revenue:
Zillow Offers$1,473,004 $— $— $1,222,928 $— $— 
Premier Agent— 683,072 — — 434,068 — 
Other8,293 239,346 — 1,197 176,937 — 
Mortgages— — 124,705 — — 59,043 
Total revenue1,481,297 922,418 124,705 1,224,125 611,005 59,043 
Cost of revenue (1)1,352,125 90,481 40,299 1,170,659 95,407 13,815 
Gross profit129,172 831,937 84,406 53,466 515,598 45,228 
Operating expenses (1):
Sales and marketing120,810 254,227 52,352 119,457 225,019 24,635 
Technology and development63,497 168,482 16,785 54,815 131,865 11,308 
General and administrative53,347 127,592 34,617 45,301 112,455 19,824 
Impairment costs— — — — 73,900 2,900 
Acquisition-related costs— 4,488 — — — — 
Total operating expenses237,654 554,789 103,754 219,573 543,239 58,667 
Income (loss) from operations
(108,482)277,148 (19,348)(166,107)(27,641)(13,439)
Segment other income— — 2,738 — 5,300 587 
Segment interest expense (9,338)— (2,895)(11,909)— (533)
Income (loss) before income taxes (2)
$(117,820)$277,148 $(19,505)$(178,016)$(22,341)$(13,385)
(1) The following table presents depreciation and amortization expense and share-based compensation expense for each of our segments for the periods presented (in thousands):
 Three Months Ended
June 30, 2021		Three Months Ended
June 30, 2020
HomesIMTMortgagesHomesIMTMortgages
Depreciation and amortization expense$4,733 $22,157 $2,093 $2,597 $22,038 $1,538 
Share-based compensation expense$20,495 $58,362 $9,538 $12,728 $35,958 $3,665 

 Six Months Ended
June 30, 2021		Six Months Ended
June 30, 2020
HomesIMTMortgagesHomesIMTMortgages
Depreciation and amortization expense$9,026 $44,956 $3,900 $6,172 $45,815 $3,212 
Share-based compensation expense$36,416 $99,754 $15,898 $24,032 $65,505 $6,609 

(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):

Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Total segment income (loss) before income taxes
$56,542 $(61,132)$139,823 $(213,742)
Corporate interest expense(33,241)(33,458)(66,752)(62,740)
Corporate other income581 4,430 1,288 13,821 
Gain (loss) on extinguishment of debt(931)6,391 (2,334)6,391 
Consolidated income (loss) before income taxes
$22,951 $(83,769)$72,025 $(256,270)
Certain corporate items are not directly attributable to any of our segments, including the gain (loss) on extinguishment of debt, interest income earned on our short-term investments included in other income and interest costs on our convertible senior notes included in interest expense.