Seattle-based Zillow Inc. posted a record decline after forecasting fourth-quarter revenue that trailed analysts’ estimates.
Sales this quarter will be $30 million to $31 million, up from $19.9 million a year earlier, the Seattle-based company said in a statement yesterday. That’s lower than the $32.4 million average estimate of analysts, according to data compiled by Bloomberg.
Zillow, which first sold shares to the public in July 2011, faces increased competition from Trulia Inc., which went public in September of this year. To maintain growth and diversify its product offerings, Zillow is making acquisitions, and announced the purchase of financial software company Mortech Inc. for $12 million in cash and 150,000 shares of restricted stock.
Revenue in the third quarter jumped 67 percent to $31.9 million from $19.1 million a year earlier. The company swung to a profit, recording net income of $2.33 million after reporting a loss of $570,000 a year earlier.
Zillow plunged as low as $27.71 and was down 18 percent to $28.02 as of 10:02 a.m. in New York. It had climbed 72 percent since the initial public offering through November 6th, while shares of Web companies including Facebook Inc., Groupon Inc. and Zynga Inc. have tumbled since their IPOs.
This article was originally written by Ari Levy for bloomberg.com