Zillow Group reported a surprise net loss on better-than-expected revenue in its second quarter, and its guidance for third quarter revenue was weaker than analysts anticipated.

The housing technology company reported a net loss of $4 million on $772 million in revenue. Analysts had expected $21 million in net income on $758 million. Zillow lost two cents a share, while consensus estimates were for a gain of nine cents a share, according to FactSet.

Adjusted earnings before interest, taxes, depreciation, and amortization, or Ebitda, was $176 million, higher than the roughly $162 million analysts had expected. Adjusted earnings, at 52 cents a share, beat analyst expectations of 45 cents a share.

A big driver of the net loss was restructuring costs, CEO Jeremy Wacksman told Barron's. The company logged $36 million in impairment and restructuring costs in the second quarter. "The bigger picture is we remain on track for our full year goals" of revenue growth in the midteens, expanding adjusted Ebitda margins, and positive income.

Zillow's revenue in the quarter was up 18% from one year prior. The stock was down 0.1% to $36.16 in late afternoon trading, and is down 47% so far this year.

The company, which operates a home listings search portal and offers mortgages, among other services, said on Tuesday it would cut over 500 jobs. "To position Zillow for the path ahead, yesterday we restructured parts of our organization and eliminated some roles," Wacksman and Chief Financial Officer Jeremy Hoffman wrote in a letter to investors. "We made this decision to ensure we can move faster and operate more efficiently with a more sustainable cost structure."

( News Corp, which owns Barron's, also operates the home listings website Realtor.com.)

Zillow expects third-quarter revenue in a range of $745 million to $760 million, below the $774 million FactSet consensus estimate. It foresees adjusted Ebitda in a range of $180 million to $200 million, lower than the $214 million analysts estimate.

An even softer housing market in part factored into the guidance. "We're now expecting actually some decline in the mortgage market," Wacksman says, adding that the company still expects to outperform the broader housing market.

Also responsible for the lower guidance is a strategic shift away from the company's traditional advertising model to its "preferred" service for agents. Agents using the "preferred" model pay Zillow upon the close of a home sale instead of paying the fee up front. This model brings in 23% more revenue per connection, Wacksman says. "We want to move more and more of our business to Preferred," Wacksman says. "There are just some tiny and seasonal lags."

The company also announced executive changes: Hoffman will take on the role of chief operating officer in addition to his CFO role. Jun Choo will step down from that role for health reasons and will stay on as an advisor through the end of the year, according to the release.

Zillow has also hired Cassandra "Sandi" Knight as the company's chief legal and policy officer, a newly created position. Knight was most recently vice president of litigation and discovery at Google.