ZillowThe shares shot up as much as 20% on Thursday in extended trading after digital real estate firm said that it was exiting home-flipping more rapidly and economically than expected.

Zillow’s fourth-quarter earnings reportThe company’s attempt to enter the iBuying (or instant buying) market where it bought homes from homeowners, led to a disastrous turn. Zillow said in NovemberThe company announced it is leaving the industry, admitting its algorithms were not accurate in forecasting housing prices and putting the company at serious risk.

In the fourth quarter, the company suffered a loss of $261 million and $528 millions for the year. The entire decline was due to Zillow’s homes business. Zillow claimed it sold 8353 homes, which was more than its forecast of roughly 5,000, and had approximately 10,000 inventory at the end of the quarter.

“We’ve made significant progress in our efforts to wind down our iBuying business — selling homes faster than we anticipated at better unit economics than we projected,” Zillow CEO Rich Barton wrote in the quarterly shareholder letter. We feel more certain today that our decision to exit iBuying, eliminating housing market risk for our company and our shareholders and eliminate the housing market imbalance sheet risk was the best.

Zillow stated that 25% of their workforce was being cut at the time it made the November announcement.

The faster pace of home sales meant that revenue in the fourth quarter was higher than the $2.98 million average analyst estimate. According to Refinitiv. More than 85% comes from the iBuying Division, with most of the rest coming from its home listings group called internet media and technology (IMT).

According to FactSet, revenue in IMT rose 14% to $483.2 Million in the fourth quarter. This was just shy of the average estimate of $481.9million.

Zillow projects total revenues of between $3.12 and $3.44 billion for its first quarter. Analysts projected revenue of 3.26 billion.

Zillow’s focus is now on the marketplace. It connects buyers and sellers using technology to make the transaction easier. This includes working with an extensive network of agents to help consumers get their mortgages.

According to the company, this will result in $5 billion of revenue and a 45% profit margin by 2025.

“We want to acknowledge the past few months have been challenging for us all — Zillow leadership, employees, and investors,” Barton wrote. But innovation is not an easy road.

After hours, the stock rose as high as $59.04 The stock was currently down 24% as of Thursday’s close.

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