12:10 PM EDT, 08/08/2024 (MT Newswires) -- Zillow Group's ( ZG ) product cycle strategy is "overcoming" signs of softness from the housing market and upcoming regulatory changes, RBC Capital Markets said in a Thursday note.

According to RBC, the company issued better-than-expected Q2 results and Q3 guidance as its inorganic growth and various product cycles outweighed macro and regulatory uncertainties.

Zillow Group ( ZG ) reported a Q2 net loss of $0.07 per diluted share, narrowing from $0.15 a year earlier, as revenue rose to $572 million from $506 million. The company said it expects Q3 revenue of $545 million to $560 million, compared with a $552.8 million estimate from analysts surveyed by Capital IQ.

RBC said Zillow Group's ( ZG ) rentals grew 29% in Q2 and is the group's biggest upward contributor, based on its estimates. The investment firm also noted that the Zillow Showcase promoted listings product has already reached a 1% share of total listings, implying a $30 million run rate.

RBC maintained its outperform rating and $60 price target on Zillow Group ( ZG ).

Shares of Zillow Group ( ZG ) were up more than 18% in recent trading.

Price: 47.70, Change: +7.35, Percent Change: +18.22