Hello, and welcome to Zillow Group's Second Quarter Financial Results Call. [Operator Instructions] Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Brad, you may begin.

Thank you. Good afternoon, and welcome to Zillow Group's quarterly earnings call. Joining me today to discuss our results are Zillow Group's CEO, Jeremy Wacksman; and CFO, Jeremy Hofmann. During today's call, we will make forward-looking statements about our future performance and operating plans based on current expectations and assumptions. These statements are subject to risks and uncertainties, and we encourage you to consider the risk factors described in our SEC filings for additional information. We undertake no obligation to update these statements as a result of new information or future events, except as required by law. This call is being broadcast on the Internet and is accessible on our Investor Relations website. A recording of the call will be available later today. During the call, we will discuss GAAP and non-GAAP measures, including adjusted EBITDA, which we refer to as EBITDA. We encourage you to read our shareholder letter and earnings release, both of which can be found on our Investor Relations website. as they contain important information about our GAAP and non-GAAP results, including reconciliations of historical non-GAAP financial measures. We will open the call with remarks followed by live Q&A. And with that, I will now turn the call over to Jeremy Wacksman.

Thank you, Brad, and good afternoon, everyone. Thank you for joining us. I'm pleased to share our strong Q2 results today, including continued double-digit revenue growth and positive net income. We're gaining share in For Sale and Rentals, and we're doing it while maintaining cost discipline to deliver on our 2025 targets for continued EBITDA margin expansion and GAAP net income. As we work to streamline residential real estate transactions with our housing super app, everything we build is designed to offer a benefit for both consumers and the industry. People want and deserve a better experience than the antiquated and analog one they've become used to in real estate. Consumers and professionals experience a digital, streamlined, automated and delightful process in almost every other part of their lives, from rides and restaurant reservations to flights and lodging. And it's reasonable we'd expect the same in real estate. That's where Zillow comes in. We are building that truly integrated, digitized end-to-end transaction experience. That relentless focus on creating great products and experiences is why we're growing share in both For Sale and Rentals and why Zillow is a beloved brand. People instinctively turn to Zillow when they think about home, whether a mover is looking to buy, sell or rent, they're likely visiting us along the way. Zillow maintains the #1 position in both For Sale and rental traffic. In Q2, we had 243 million average monthly unique users across our apps and sites and about 4x the app engagement of the next company in our category. This deep connection with our audience has been part of our foundation from the start. Just in the past month, Season 2 of Zillow Gone Wild premiered on HGTV and Zillow debuted a Marvel size collaboration with an immersive custom listing of the…

Thanks, Jeremy, and good afternoon, everyone. As you just heard, we delivered strong results in Q2 and are well positioned to continue doing so as we execute on our strategy. Q2 2025 revenue exceeded our expectations, up 15% year-over-year to $655 million, which was above our outlook range. Our better-than-expected revenue performance, combined with effective cost management delivered EBITDA of $155 million at the high end of our outlook range. Q2 EBITDA margin was 24%, with our trailing 12-month EBITDA growing 26% year-over-year as we continue to scale revenue and control costs. As a result of these efforts, in Q2, we reported our second consecutive quarter of positive GAAP net income. For Sale revenue grew 9% year-over-year in Q2 to $482 million, 700 to 800 basis points above residential real estate industry growth of 2% according to data tracked by Zillow and growth of 1% reported by NAR. Of note, we estimate purchase mortgage origination volume grew 1% in Q2 as well. As a reminder, mortgage industry growth is relevant because a majority of Zillow buyers purchased their home with a mortgage. Additionally, the relative headwinds we saw in Q1 from the luxury market normalized during Q2. Within the For Sale category, residential revenue grew 6% year-over-year to $434 million in Q2, in line with our outlook. We saw contributions to this growth broadly across our agent and software offerings and within our other marketplaces. Agent offerings include Premier Agent and Zillow Showcase. Software offerings primarily include ShowingTime, DotLoop and Follow Up Boss, which has continued to grow from both our enhanced market expansion and from broader industry adoption of the software. Our new construction marketplace also contributed to the growth in residential revenue. Within the For Sale category, mortgages revenue was up 41% year-over-year in Q2 to $48 million,…

[Operator Instructions] Our first question will come from Ron Josey with Citi.

I wanted to ask a little bit more and drill in on the Rentals business, just given the goal or the guidance for accelerating growth in the back half, but then also just the strength in multifamily properties and the net additions. So help us understand just on the insights, what you're seeing, what you're hearing with your conversations from large property managers, maybe your go-to-market strategy from a pricing perspective, how that's helping? And just your overall, call it, confidence level, which I presume to be pretty high given the comments in the prepared remarks. But just going forward as rentals becomes a larger part of the overall business.

Yes. Thanks, Ron. Hof, I'll start maybe and you can jump in with anything I missed. I think at the high level, you're seeing the results both in Q2 and our confidence for Q3 and second half of the year just come from the strategy working, the team executing and great partner satisfaction. We are, as I said in prepared remarks, really building this comprehensive 2-sided marketplace. That is what solves the renter's #1 problem, having as much of the inventory as possible because there is no one-stop shop for all the inventory. Zillow Rentals now has the most, right, at 2.4 million active rental listings. And then on top of that content, building a modern transaction experience for the renter and the property manager, right? So for the renter, it's not just about getting the content, it's about being able to apply, sign a lease, pay rent, report your rent to the credit bureaus to build credit. For the property manager, it's having a transaction-focused experience for them to find these high-quality renters. So all of that strategy yields the audience. That's why we have the largest audience, 36 million unique visitors per Comscore, a lead that continues to grow and not just volume, the #1 brand preference among renters. So you solve the renter problem, you get the renters preferring you and using you. And I say all that because all that setup is what then leads advertisers to see such great ROI. That's why you're seeing now 64,000 properties up from 50,000 at the end of the year, wanting to advertise on the Zillow network, wanting to get in front of that audience. So that is the strategy coming to life and the execution. And then to your question on sales, well, now we've expanded that offering to not just our partnership with Realtor.com, but our partnership with Redfin. And so advertisers are getting access to the renters, not just on Zillow Group sites, but on Redfin sites and on Realtor.com as well. So it's more content for all those renters. It helps all of those sites grow their audience as well, which then flips back around to be even better ROI for the advertiser. So that's part of what drove not just Q1 into Q2, it's part of what's driving our confidence in the full year and the acceleration in the second half. And it's also why we're really excited about the $1 billion target out in front of us. There's 140,000 buildings out there. We're not even halfway there. And we have a ton of great ROI conversations to go have with these partners to help them bring more of their portfolios online with us to help them try higher packages with us. So there's a long great road ahead for us.

And Ron, I'll just chime in just to put some numbers behind it. Jeremy hit it well. But Q1, we grew rentals 33% Q2, we grew rentals 36%, including 56% within multifamily. Q3, we expect 40% plus. And full year, we expect 40% for rentals. So that acceleration, you really start to see build, and it's on the back of a lot of good work and a lot of good sales efforts as well.

Our next question will come from Brad Erickson with RBC.

Two for me. So one, last quarter, resi rev growth was a little bit below the market. And this quarter, it was noticeably ahead. Thanks for all the -- I appreciate all the drivers within marketplace and kind of software services you gave in the prepared remarks. But I guess, quarter-over-quarter, what specifically would you say the change was that drove the faster than market growth? And I'm talking, of course, excluding the mortgage piece of it. And then I have a follow-up.

Thanks, Brad, for the question. I'll take it. It's Jeremy Hofmann. We were quite pleased with Q2 revenue growth and the outperformance there, and that was in both Residential and For Sale more broadly. And I think you've heard this from us many times before, but we'll say it again. We tend to look at this metric over a time period of kind of full year multiyear view. And if you look back, those periods in time are pretty smooth. So look at the last 2 years, for example, on a 2-year stack basis, For Sale outperformed the market by 15% and that outperformance is what really gives us confidence for the longer-term mid-cycle targets, right? We're trying to go from 27% of connections in these Enhanced Markets now to 35% by the end of this year and then 75% for those mid-cycle targets. It's that formula plus everything else within residential and the for-sale segment that we're doing. And it's some combination of continuing to execute on Enhanced Markets, Showcase continuing to expand, Zillow Home Loans growing alongside that Enhanced Markets expansion, Follow Up Boss getting in the hands of more people across the Premier Agent base and the broader agent population. Real Time Touring continues to expand. It's a bigger portion of connections this quarter than it was obviously a year ago and drives conversion. And then last but not least, the new construction business continues to perform well, too. So when we look at the formula, we are appreciative of the outperformance over time and love the opportunity ahead of us as well.

Got it. And then just a follow-up on rentals kind of along the lines of Ron's question. We get asked a lot about the contribution from Redfin on this back half acceleration where you're calling for. Can you help us just maybe unpack that at all? Or maybe if you could just walk us through how we should think about the Redfin contribution that's layering on top of the rentals growth?

Yes. I'll take that one as well. We are really pleased with the partnership. It launched late April, early May and has started great. Our sales force executed well in Q2. We added 9,000 properties. I would expect that to normalize to pre-Q2 levels going forward. But when we look at the value Redfin and Realtor.com bring to us, it's the ability to take the expanded distribution and leads to all 64,000 existing properties and sell into the rest of the roughly 76,000 buildings we don't yet have on Zillow. So within the 64,000 properties, we are adding more value, we are bringing more customers, and we're hopeful that folks will upgrade their packages accordingly. And then it gives us the opportunity to go sell into a much larger addressable market than we are today. So that's the way I would think about it. It's a component of -- an important component of a larger rentals business we are building, not a separate piece. And the positives these folks bring to us impact the entire business.

Our next question will come from Ryan McKeveny with Zelman & Associates.

Nice job in the quarter. I wanted to drill in a bit on Zillow Showcase. You called out it's now on about 2.5% of listings, up from 2% last quarter, 1% a year ago. So obviously, some nice momentum there. As we think about the translation for market share of listings to the Showcase revenue opportunity, I think that discussion historically has revolved around effectively like a subscription fee per listing that works out to about $500 per listing. But in a scenario where a homeowner actually comes directly to Zillow and says, "Hey, I want this for my home when I list it." I want help connecting with a listing agent who uses a Showcase. Presumably, that's a pretty nice connection opportunity to take that demand and bring it to 1 of your listing partners. So I guess I'm curious if that potential for monetizing the connection is embedded within the revenue targets for Showcase?Or could that be a source of upside over time?

Ryan, thanks for the question. The short answer to your question is it's all considered part of the Showcase opportunity. I think the longer answer is kind of maybe why that is. So you're right, 2.5% of all new listings. We put out a goal of kind of 5% to 10% of all listings in intermediate term. And we don't think that's the end state. We think Showcase is something that becomes the default expectation for buyers and sellers. You want to get to that 10% number to then really start to have it become an expectation to have a flywheel. And the question you're asking, does a seller ask for it or does an agent pitch it to a seller, that starts to become both things start to contribute to seller growth. We do that now. I mean if you use the Zillow website and you don't have a listing agent and you ask for a listing agent, you are asking about Showcase, and we will connect you with a great agent that is trained to use Showcase, and that's a new opportunity for them. So we do think about both sides of that, both agent-driven and seller-driven. But we don't think about them as kind of separate revenue opportunities. It's more about bringing Showcase and changing the customer expectation experience for the buyer and seller. And then, of course, the incremental benefit for the agent is agents win more listings with Showcase, right? And when an agent walks into a listing presentation and they say, "Well, I'm aligned with Zillow, and I have these great Zillow digital tools, it's why you should list with me", they're winning more listings. That is the real ROI that agents are feeling and why they're subscribing and renewing. So we think about the opportunity for seller more broadly as both the seller and the agent. And I think it will take a while, but the expectation in the industry to just expect this rich media on more types of listings is what will really power that flywheel.

Yes. That's helpful. Second question, in the press release, you called out that part of the contribution to the residential growth was through the new construction marketplace. And I feel like the new construction marketplace tends to be kind of a big part of the quarterly update. So maybe you can just talk to us about what's driving that? Is that some of the macro trends that we see on the homebuilding side of things? Is that share gains within the space, expanding the number of homebuilding partners. Maybe you could just unpack the new construction marketplace side of things a bit.

Yes, Ryan, I'll take that one. I would think of our new construction business as one that feels table stakes for builders. So similar to the rest of the residential business and what you're familiar with on the agent front, that business just tends to do quite well because we're a really good advertising channel, and we've been able to grow nicely through the various swings in macro as a result.

Our next question will come from John Colantuoni with Jefferies.

I wanted to ask 2. Starting with variable expenses, they've been outpacing revenue growth in the past couple of years. Can you talk about the key areas of investment you've been making? And what milestones you're looking to achieve before you'll start turning down the dial so variable expenses start tracking more closely with revenue? And second, turning to the Redfin partnership specifically, and if possible, can you discuss sort of incrementality from the leads you're now receiving from Redfin versus the opportunity to find new property managers using Redfin's existing relationships?

Yes, John, I'll take the first one, and I'll start on the second and Jeremy chime in. So the first one, we expect our variable cost base to grow ahead of revenue in 2025 with our initiatives, but grow more in line over time as initiatives scale and mature. We have to make sure and we will make sure that we're rightsizing our investments to meet the expected growth curves we see, and we're primarily investing in Rentals and Zillow Home Loans, both of which are obviously growing faster than our overall revenue base. On the rentals front, we're investing in multifamily sales heads, lead acquisition costs and advertising to support that 45% property growth and 56% multifamily revenue growth we saw in Q2. And then for ZHL, we're really hiring loan officers as we expand our enhanced market footprint and bring ZHL to more customers. So that's where that is on the variable front. There are other parts of the variable cost structure that we've obviously gotten leverage over time. The primary places that we're investing are the places where we're seeing the most growth. I think I'd just remind you, the real profit driver here for the company and why you're seeing us continue to expand margins is we're controlling fixed costs and scaling revenue. That's the way that we grow profits faster than revenue. And fixed costs this quarter across the cost base were up 3%. We expect to continue to do that for the rest of 2025 and deliver positive net income in 2025 as well. So I think that's the first one. And then the second one on the Redfin leads versus opportunity. I think the way to think about it is similar to what we said a little bit earlier, which is the opportunity now is to take the expanded distribution that we have with Zillow, HotPads, Trulia, StreetEasy in New York, Redfin, Realtor.com, that's now the expanded distribution. We take that to the 64,000 properties that we have on sites and apps now, and we look to upsell them into higher packages. That will be one opportunity. That will be coupled with bringing that distribution channel to the 76,000 or so properties that we don't yet have. So it's less segmented out and more just think about it as the offering is just incrementally compelling, and we're going to go look to bring that to the entire space.

Yes. And maybe the only thing I'd add there is the incremental, which Jeremy commented on, these are incremental customers, right? Because there is no one-stop shop yet for all rental listings, you're finding renters on multiple sites, right? And so Zillow Rentals is the most, but Redfin has great rental sites and realtor.com has a rental site, and you find renters on there that are not on Zillow or vice versa. And so that becomes more value for the advertiser and the advertiser wants to advertise to that network. It's more customers to go attract for their advertising dollars. That's great ROI for them. And then that flywheel spins because when those advertisers bring more content on, that provides more content to the entire network, which drives the traffic for all those sites. So the incremental benefit to us and to our partners is really positive here. And the cool thing about that is it's a huge benefit for the renter, too. So a renter finds one of these sites largely from top-of-funnel sources and all of a sudden, they're finding more content, right? So for free, they have more choice and more content available to them than they would have without the partnership. So that's why we get so excited about it. It's a great consumer experience, and it's a great advertiser experience.

Our next question will come from Trevor Young with Barclays.

Great. Just back to the comment around Redfin and being dollar accretive in 2H. Just to clarify, is that for 2H in aggregate? Or should we expect it to start being accretive here in 3Q?

Yes, Trevor, I'll take it, Jeremy. I think about it as both, both 3Q and second half of the year. And then obviously, we expect it to be more accretive beyond that.

Our next question will come from Benjamin Black with Deutsche Bank Research.

This is Jeff on for Ben. Can you maybe just talk about the assumptions that you're making about the broader real estate market as we look into Q3 and the back half of the year? And what kind of levers can you pull to further increase monetization on a per connection basis even in a slower housing market?

Hof, maybe I'll start. I think the short answer is we're not assuming a lot of help from the macro. And we're just focused on driving growth in spite of that, right? We grew total company revenue 15% in '24. We expect mid-teens growth in '25. We grew 15% in Q2. We're guiding to 14% to 16% in Q3. And that's with the housing market largely flat, right? It was flat in Q2, and we don't expect a lot of relief into the latter part of the year. The story on the housing market is it's going to take a while to normalize, right, because the affordability challenge we have is really an availability problem. So mortgage rates easing helps on the margin, but we're still dealing with the fact that we're nearly 5 million homes underbuilt from not building out of new construction inventory coming out of the global financial crisis. And so that plus a bunch of sellers being locked into high mortgage or low mortgage rates and not wanting to trade up, creates a supply-demand imbalance. That's why you've seen prices run up so much from the pandemic. And it's why even with prices starting to ease in so many markets, you're still seeing volume low. So all that doesn't paint a story of a housing market that untangles itself quickly. So we aren't factoring a lot of goodness in. I think we hope that you actually see some home prices start to come down more. There are many markets where home prices have already rolled over and are down a few percentage points year-on-year and are continuing to go down because there's enough listing inventory out there. But again, we don't expect that to provide overall total transaction value relief anytime soon. And so we are just planning to grow through that. We're gaining share in for sale. We're gaining share in rentals, and we're doing that because the strategy we're putting together allows us to build great products and services for the consumer and for the professional, and they choose to use us and our stuff more often, and that drives transaction share for us and for our agent partners. So at some point, the housing market will become a growth tailwind, but we plan to grow regardless.

Okay. Great. And maybe just as a follow-up, could you talk to if you're seeing any regulatory or listening access changes influencing your platform or agent ecosystem and/or any kind of early trends in agent behavior?

Sure. we're quite pleased to see the -- really the vast majority of the industry agrees with our listing standards, right, which were crafted to work alongside the listing cooperation rules that many MLSs and brokers already practice. So we love to see that the entire industry really has been encouraged to formally implement what they most already believe that if you're going to market a listing publicly to some consumers, you should market it to all consumers. It's a huge consumer benefit that buyers can see all available inventory, that sellers can maximize their exposure. And it's a huge industry benefit because if you're an agent, whether you're at a big brokerage or a small brokerage to do your job effectively, you got to see all the content and be able to count on the MLS to have it all. So we are really pleased that early on, we've seen the majority of the industry largely adopt these standards.

Our next question will come from Tom Champion with Piper Sandler.

One of the questions we get a lot is around Enhanced Markets. And perhaps you could just talk about what you're seeing in the intermediate Enhanced Markets that are maybe part of the 2024 cohort. Curious if those are kind of coming up the maturity curve like you expect. And then maybe for Jeremy Hofmann, I'm wondering if you could just talk to the outperformance of mortgage in Q2, looked like the growth stepped up quite a little bit, but maybe is going to expect it to settle back down to high 20s in 3Q. Just curious if you could walk us through the trend in mortgage and linearity that you've seen through the year.

Sure. Jeremy, why don't I take the Enhanced Markets question and then you can hit mortgage. We're pretty pleased with the overall progress we're seeing in Enhanced Markets. We're going to start to sound like a broken record when we say methodical rollout, but that is really the name of the game here. In every market, it's about finding the next agent team or helping the agent team we have grow to take on more customers. And then it's about going into the next market and starting that process while measuring the conversion, the Zillow Home Loans adoption and most importantly, the customer satisfaction of that experience with the buyers and sellers that we introduce these people to. And we're seeing those metrics within our expectations across all cohorts, both new and old. We are on track to getting to 35% of our customers by the end of the year. That was the goal we put out at the beginning of the year with you all. And we're at 27% in Q2, and we feel good about getting to 35%. And what gets us excited about that is that's still barely 1/3 of Zillow customers, right? That is still means that 2/3 of Zillow customers are not getting this enhanced market experience yet. And that's opportunity we want to mode down as fast as we can on our way to 75% at least 75% of our customers sometime in the future. So we feel great about that progress. It is one part digital and one part analog and the software goes faster, as I talked about earlier, getting to 96% of our connections going through Follow Up Boss is great. It's a great job by the team to get most of our agent teams, nearly all of them on Follow Up Boss. We roll out Real Time Touring faster because we can train on that software faster. But then staffing up Zillow Home Loans, loan officers and creating the relationships between loan officer and agent and agent team is hand-to-hand combat with individual humans, and it's important to get that right one at a time. And so that -- those are the things that govern our progress and why we get to 27% now, 35% end of the year, 75% in the future. All that adds up to the $1 billion of incremental revenue that we see coming just from rolling out and expanding the set of services, let alone the upside from improving these services, which, of course, we will do over time.

Yes. And then to your second one on mortgage, we expect mortgages revenue growth in the high 20% range for Q3, which includes 40% plus purchase loan origination volume growth as the key component. So I think that's an important one to call out. As you've heard us say time and again across the for-sale business, we don't overfunction on the quarterly fluctuations. And for mortgages, things like loan value, gain on sale, that will fluctuate quarter-to-quarter. The market has been bouncing along the bottom for a while now, and we've consistently grown quite nicely despite that and expect to continue to do so. And then when we zoom out, where we're really pleased, and Jeremy hit this as well, is the consistent double-digit adoption rates across the Enhanced Markets, while the number of markets have meaningfully increased. It's -- ZHL is a critical portion of this overall strategy, and we're really excited about the progress.

Our next question will come from Dae Lee with JPMorgan.

I have 2 and those are follow-ups. First one on the rental opportunity. You did talk about growing the wallet share with your advertisers as one of the opportunities. So curious like where you are in terms of unlocking some of that opportunity? And is the $1 billion medium-term target more driven by the supply growth? Or is the growing wallet share part of that?

Yes, I can start and Hof jump in. I think part of why we don't talk about it is because we see just such a greenfield opportunity in front of us in terms of volume at the ROI we're providing for our partners. So Jeremy talked about it a bit. We have plenty of room as we win new advertisers, they bring a portion of their portfolio and they try one of our packages and then they experience these great ROI benefits of being on the Zillow Rental Network and they bring more of their portfolio and they upgrade their packages. So we see that sales go-to-market as really durable growth for us, and you're seeing that in the results, right? You're seeing 56% multifamily revenue growth coming from that. That's from 45% property count growth. So that shows both bringing new advertisers on and having them use the Zillow Rental network more. So as long as we continue to deliver increasing value and increasing ROI to them, we'll have the opportunity to win more and more of their business. And the percentage of advertisers we have reached is still, as Jeremy Hofmann said, not even 50%. So that's why we feel so great about the $1 billion-plus opportunity and why we see a lot of ways to go grow and get to it.

Got it. And as a follow-up, on Enhanced Markets, I think in May, you guys put out a release saying you're targeting 60 additional markets at the end of July. So I was curious if that 27% number you have in the letter includes that? And if not, how are you progressing on getting those additional markets live? And when you get these markets up and running, how long does it take for them to show up in your results?

Yes, good question. So the 27% in Q2 does not include that. But I will encourage you to think about percent of connections rather than market count. We started moving out of that as a better source of modeling because each market has a different mix and share and capacity of agent teams, loan officer capacity and all that. So think about it more as we are at 27% as of the end of Q2, and our goal is to get to 35% by year-end. And then it's about a year to start to see the accretive benefits of the new experience across the cohort of customers and agents for that share of connections. So it is quite an involved process to get all the folks up and running, all the staff and training up and running. But once you do, you really see agents not just gain share, but are able to grow their businesses with our software and tools, and you start to see them try and use Zillow Home Loans to drive adoption. So that's the formula and the playbook we're focused on. And I think percent of connections is probably the right way to try and think about it.

Our next question will come from Stephen Sheldon with William Blair.

I just wanted to follow up on Zillow Showcase. I'm curious how monetization of that solution has been trending and whether it's becoming a more material contributor -- revenue contributor to the residential segment. And then as we think about the housing backdrop, has that actually become more favorable for Showcase given that home sellers and their agents could be a little more concerned about the home selling altogether and the price received in this environment. I guess, just what are you seeing on the demand side there?

Sure. So Showcase now at 2.5% of new listings, up from 2% end of Q1. I think trying to tease it out as a part of the overall residential component is going to be tough just actually because of the earlier question, it's all part of the agent's ROI. So we feel great about that progress. And the thing I think we're most excited about is agents see the value in winning more listings with it and sellers and buyers both see the value in having it, right? So it's this really rare kind of win-win where everyone has a great experience with it. The macro question is a good one. I think the reality is it's too small showcases to be a macro driver yet. But I will point out, we're growing Showcase this nicely in what has historically been mostly a seller's market. And as if the market were to shift to more balance, you'd think the seller and the seller's agent would benefit even more from Showcase in their listing. But if you go talk to our agent partners who use it, what they're seeing the benefits of is their ability to win more listings with it, right? And so in an environment where they have to work harder to win a listing presentation, Showcase is an even more powerful tool. And we're not exactly just sitting still with Showcase, right? Showcase launched a little more than a year ago, and we've been improving it ever since. So we added the listing dashboard last quarter. We just added SkyTour, which you haven't -- if you haven't checked it out, you should really go check out a SkyTour listing. It's an immersive experience outside the home. It stitches drone photography together to get you to be able to fly around the exterior and really get a sense of what the home is like. Those are just a couple of examples of how we'll continue creating this incredibly immersive experience that the buyer, of course, loves. Therefore, the seller will want, therefore, the agent will have to offer if they want to win listings.

Our last question will come from Andrew Boone with Citizens Bank.

I wanted to ask about AI and the improvement of just automation across the platform. You guys mentioned in the letter the 2 million people -- the 2 million smart messages that have been exchanged since June. Can you guys just talk about what AI allows for automation in terms of connecting buyers and sellers more efficiently? And what's kind of the overall vision, if we think kind of 1 to 2 years out of what you guys can do with Follow Up Boss as just more capabilities are enabled?

For sure. Thanks, Andrew. We are tremendously excited about AI's potential to rewire the industry just as it rewires all of us as workers. And if you think about the real estate industry as such a highly considered regulated purchase where you need great professionals, that is just tailor-made for supercharging the services that humans are doing and allowing humans to be great at what they do. And you're already seeing that today, right? I mean just look at some of the examples we called out this quarter for the consumer, it's a better customer experience, right? It's things like I just talked about with SkyTour, virtual staging AI, better personalization while you're shopping for the professional, the hard-working professional that has so much work to do to help delight clients, it's AI-powered relationship management software to supercharge them to let them do what they do best, which is client relations and advice and consulting and guidance, same thing for the loan officer by taking away the busy work, by automating follow-ups, by suggesting messages, by pulling in insights to make them a better client manager. So those are the features we're already putting into the wild today. And that's really, in many ways, the low-hanging fruit to start to elevate the professional and make the transaction experience more delightful. If you fast forward a couple of years into the future, you can just draw a line on what we're doing now to where we might be able to get to, to really create a more magical transaction for the buyer and seller and allow the professionals to do what they do best and have the software and the tools do more of the work for them.

This completes the allotted time for questions. I will now turn the call back over to Jeremy Wacksman for any closing remarks.

Thank you all for joining us today. We really appreciate your continued support. We are excited for what's ahead and look forward to speaking with you all next quarter.

Thank you for joining Zillow Group's Second Quarter Financial Results Call. This concludes today's conference call. You may now disconnect.