Zillow Group shares plummeted 8.00% in after-hours trading on Wednesday, following the release of the company's second-quarter earnings report that revealed a surprise net loss and weaker-than-expected third-quarter revenue guidance.

The housing technology company reported a net loss of $4 million, or $0.02 per share, while analysts had expected a net income of $21 million, or $0.09 per share. Revenue came in at $772 million, up 18% year-over-year and above the $758 million consensus, but the bottom line was hit by $36 million in impairment and restructuring costs. The company had announced job cuts of over 500 roles earlier this week, aiming to create a more sustainable cost structure.

Looking ahead, Zillow guided for third-quarter revenue between $745 million and $760 million, well below the $774 million analysts had forecast. Adjusted EBITDA guidance of $180 million to $200 million also missed the $214 million consensus. The company cited a softer housing market with expected declines in the mortgage sector, as well as a strategic shift toward its "preferred" agent service model, which creates near-term revenue lags. Adding to the negative sentiment, Bernstein earlier in the day cut its target price on Zillow to $50 from $70.