As Zillow Group Inc Z ZG prepares to release its third-quarter earnings report Wednesday after the market close, investors are keenly watching for signs of continued growth and resilience in a challenging real estate market.

Zillow’s strong performance in the second quarter, marked by revenue and earnings that exceeded analysts’ estimates, set a positive tone for the year, and its third-quarter guidance has only heightened expectations.

Here’s a closer look at what to expect from Zillow in its third-quarter earnings.

What To Know: In the second quarter, Zillow reported total revenue of $572 million, comfortably above Wall Street’s forecast of $537.6 million. This represented a 13% year-over-year growth, driven by strong performance across multiple segments.

The company’s residential revenue rose by 8% year-over-year to $409 million, while its rentals revenue surged by 29% to $117 million. Notably, mortgage revenue saw a substantial 42% increase, reaching $34 million, which underscores Zillow’s success in diversifying its revenue streams and capitalizing on demand across different facets of the real estate market.

This second quarter growth was complemented by a notable uptick in engagement on Zillow’s platform. The company recorded 231 million average monthly unique users across its mobile apps and websites, a stable figure compared to the previous year. Meanwhile, visits increased by 4% to 2.5 billion.

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This rise in visits signals sustained interest in Zillow’s offerings, particularly as it continues to build out its “housing super app,” a comprehensive platform designed to streamline the real estate experience for users.

Additionally, the second quarter marked a significant leadership change, with Zillow promoting COO Jeremy Wacksman to CEO, replacing co-founder Rich Barton, who will transition to co-executive chair.

In his comments following the second quarter earnings report, Wacksman underscored Zillow’s commitment to long-term profitability and reiterated the company’s goal of achieving double-digit revenue growth and an expanded Adjusted EBITDA margin by 2024.

What Else: Looking ahead to the third quarter, Zillow provided revenue guidance of $545 million to $560 million, above analyst consensus estimates of $538 million. The company anticipates residential revenue to land between $375 million and $385 million.

Adjusted EBITDA is expected to range from $95 million to $110 million, reflecting Zillow’s focus on balancing growth and profitability amid a competitive landscape. For the third quarter, Zillow also projects rental revenue growth in the mid-20% range year-over-year, driven by strong demand in the multifamily segment, which is expected to outpace overall rental revenue growth.

Zillow’s management has indicated an industry-wide increase in transaction value, with expectations for mid-single-digit growth in total transaction value in the U.S. residential real estate sector for the third quarter, compared to the 3% year-over-year growth seen in the second quarter. This outlook aligns with Zillow’s projection of continued traction in the residential market, even as broader economic uncertainties persist.

Overall, the third quarter will serve as a pivotal quarter for Zillow, as it seeks to maintain its momentum in revenue growth, strengthen its digital real estate ecosystem and execute its strategic vision under new leadership.

According to data from Benzinga Pro, Zilllow (Z) has a 52-week high of $68.73 and a 52-week low of $35.44. It is trading up 2.49% at $62.12 Tuesday at publication.

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