Touring and Market Expansion

Non-GAAP Measures Forecasted Adjusted EBITDA Margin This presentation includes forecasted Adjusted EBITDA margin, which is a non-GAAP financial measure. Our management and board of directors use Adjusted EBITDA margin to measure operating performance and trends, and to prepare and approve our annual budget. In particular, the exclusion of certain expenses in calculating this measure facilitates operating performance comparisons on a period-to-period basis. You should not consider this forecasted non-GAAP financial measure in isolation or as a substitute for analysis of our results as reported under GAAP. We have not provided a quantitative reconciliation of forecasted GAAP net income (loss) as a percentage of revenue to forecasted Adjusted EBITDA margin within this communication because we are unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items. include but are not limited to: income taxes that are directly impacted by unpredictable fluctuations in the market price of our capital stock; depreciation and amortization from new acquisitions; impairments of assets; gains or losses on extinguishment of debt; and acquisition-related costs. These items, which could materially affect the computation of forecasted GAAP net income (loss), are inherently uncertain and depend on various factors, many of which are outside of our control. Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations include, but are not limited to, the fact that such non-GAAP measures: Do not reflect changes in, or cash requirements for, our working capital needs; Do not consider the potentially dilutive impact of share-based compensation; Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA and Adjusted EBITDA margin do not reflect cash capital expenditure requirements for such replacements or for new capital expenditures or contractual commitments; Do not reflect impairment and restructuring costs; Do not reflect acquisition-related costs; Do not reflect the gain on extinguishment of debt; Do not reflect interest expense or other income, net; Do not reflect income taxes; and Other companies, including companies in our own industry, may calculate these non-GAAP measures differently from the way we do, limiting their usefulness as comparative measures. Because of these limitations, you should consider Adjusted EBITDA and Adjusted EBITDA margin alongside other financial performance measures, including various cash-flow metrics, net income (loss), and our other GAAP results. 31 ZILLOW GROUP

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