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Investor Presentaiton

Adjusted EBITDA reconciliation by segment - Q1'20, FY19, & FY18 Homes Q1'20 Reconciliation of Adjusted EBITDA to Net Loss Net loss (1) Income tax benefit Loss before income taxes Other income Depreciation and amortization expense IMT Mortgages Corporate Items (2) (in thousands, unaudited) N/A N/A N/A N/A N/A $(97,958) $(41,507) Consolidated N/A N/A $(13,145) N/A $(163,273) (9,228) $(19,891) (172,501) (202) (9,391) (9,593) 3,575 23,777 1,674 29,026 Share-based compensation expense Impairment Costs 11,304 29,547 2,944 43,795 73,900 2,900 76,800 Interest expense 8,084 226 29,282 37,592 Adjusted EBITDA $(74,995) $85,717 $(5,603) $5,119 FY'19 Reconciliation of Adjusted EBITDA to Net Loss (in thousands, unaudited) Net loss (1) N/A N/A N/A N/A $(305,361) Income tax (benefit) expense N/A N/A N/A N/A (4,258) Income (loss) before income taxes $(312,120) $80,060 $(44,962) Other income (1,409) $(32,597) (38,249) (309,619) (39,658) Depreciation and amortization expense 8,414 73,369 5,684 87,467 Share-based compensation expense 32,390 150,434 16,078 198,902 Interest expense Adjusted EBITDA 29,990 956 70,846 101,792 $(241,326) $303,863 $(23,653) $38,884 FY'18 Reconciliation of Adjusted EBITDA to Net Loss (in thousands, unaudited) Net loss (1) N/A N/A N/A N/A Income tax (benefit) expense N/A N/A N/A N/A $(119,858) (31,102) Loss before income taxes Other income $(59,691) $(57,638) $(13,711) (244) $(19,920) (19,026) (150,960) (19,270) Depreciation and amortization expense Share-based compensation expense Impairment costs 1,323 7,731 91,232 6,836 99,391 Acquisition-related costs Interest expense 131,404 75,000 27 9,949 149,084 4,000 79,000 2,305 2,332 Adjusted EBITDA 2,177 $(48,460) 132 38,946 41,255 $240,025 $9,267 $200,832 1.We use income (loss) before income taxes as our profitability measure in making operating decisions and assessing the performance of our segments, therefore, net loss and income tax benefit are calculated and presented only on a consolidated basis within our financial statements. ZILLOW GROUP 2.Certain corporate items are not directly attributable to any of our segments, including interest income earned on our short-term investments included in Other income and interest costs on our convertible senior notes included in Interest expense. 25
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