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Share-Based Awards
 9 Months Ended
Sep. 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.
On August 3, 2022, upon the recommendation of the Compensation Committee, the Board approved adjustments to the exercise price of certain outstanding vested and unvested option awards for eligible employees. The exercise price of eligible option awards was reduced to $38.78, which was the closing market price of our Class C capital stock on August 8, 2022. No other changes were made to the terms and conditions of the eligible option awards. We have accounted for the reprice of the eligible option awards as an equity modification whereby the incremental fair value attributable to the repriced option awards, as measured on the date of reprice, will be recognized as additional share-based compensation expense. The reprice impacted 7 million stock option awards, affected 3,348 employees and was expected to result in incremental share-based compensation expense of $66 million in total over the remaining requisite service period of the original awards. The weighted-average total fair value of options repriced in August 2022 was $67.58.
Option Awards
The following table summarizes option award activity for the nine months ended September 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 7.1$15 
Granted6,890 42.63 
Exercised(1,454)38.84 
Forfeited or cancelled(892)48.28 
Outstanding at September 30, 202333,142 44.60 7.0173 
Vested and exercisable at September 30, 202319,802 44.96 5.8113 
The following assumptions were used to determine the fair value of option awards granted for the periods presented:
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2023202220232022
Expected volatility62%61%
55% - 62%
55% - 61%
Risk-free interest rate4.34%3.38%
3.75% - 4.34%
1.94% - 3.38%
Weighted-average expected life5.3 years5.0 years
5.3 - 6.5 years
4.5 - 6.0 years
Weighted-average fair value of options granted$27.26$18.06$24.06$23.75
As of September 30, 2023, there was a total of $384 million in unrecognized compensation cost related to unvested option awards.
Restricted Stock Units
The following table summarizes activity for restricted stock units for the nine months ended September 30, 2023:
Restricted
Stock Units (in thousands)		Weighted-Average Grant Date Fair Value
Unvested outstanding at January 1, 202310,930 $46.85 
Granted8,191 43.27 
Vested(4,675)45.96 
Forfeited(841)46.58 
Unvested outstanding at September 30, 202313,605 45.01 
As of September 30, 2023, there was a total of $557 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
September 30,		Nine Months Ended
September 30,
 2023202220232022
Cost of revenue$4 $5 $12 $12 
Sales and marketing18 21 53 46 
Technology and development42 57 123 123 
General and administrative45 64 154 142 
Impairment and restructuring costs
— — — 2 
Share-based compensation - continuing operations109 147 342 325 
Share-based compensation - discontinued operations— 1 — 16 
Total share-based compensation$109 $148 $342 $341