Zillow (NASDAQ:) shares are down 10% after the company guided lower for the current quarter.

Zillow Q1 revenues of $4.26 Billion, an increase from the $1.22 Billion in the previous year. The revenue from IMT was almost equal to the $489.6million.

Revenue from Premier Agents was $363 Million, which is just under the consensus estimate of $365 millions. Home segment revenues topped the consensus projection by $2.86 billion to reach $3.72 trillion.

Premarket trading saw shares drop as the company reduced its Q2 IMT guidance.

Morgan Stanley analyst Brian Nowak believes the “macro-driven 2Q revenue guide down is likely to fuel the debate about its growth positioning within the online/offline real estate space.”

“We believe the company needs scalable new innovation, Flex etc, to improve its agent conversion and user experience,” Nowak told clients in a note.

Brad Erickson, RBC analyst, lowered the price target from $65.00 to $50.00 per Share.

“ZG’s dominant audience share remains our north star for our rating where we believe it has and continues to assemble the tools to generate significant growth and cash going forward, however, cycle fears will likely continue to impede stock performance for the next several quarters, in our view,” Erickson said in a note.

By Senad Karaahmetovic