Zillow has released it Q4 and full year results. Revenues were up 65% year on year, traffic was up 41% year on year however the company still continued to operate in the red reporting full year losses of USD 43.6 million.
The company also announced that the deal with Trulia may close as soon as Tuesday next week.
Here is the release in full.
Zillow, Inc. (Nasdaq:Z), the leading real estate and home-related marketplace, today announced financial results for the quarter and full year ended December 31, 2014. In addition, Zillow (Z) announced it expects to close the previously announced acquisition of Trulia, Inc. as early as February 17, 2015, following notification from the Federal Trade Commission that it has closed its investigation.
"Simply stated, 2014 was a remarkable year for Zillow with record revenue, record mobile usage and record Premier Agent advertiser revenue," said Spencer Rascoff, Zillow CEO. "And we expect to close the acquisition of Trulia as early as February 17."
Fourth Quarter 2014 Financial Highlights
Basic and diluted non-GAAP net income per share was $0.26 and $0.24, respectively, in the fourth quarter of 2014 compared to basic and diluted non-GAAP net income per share of $0.21 and $0.19, respectively, in the same period last year. Basic and diluted non-GAAP net income per share excludes share-based compensation expense, acquisition-related costs, impairment of certain acquired intangible assets and the 2013 income tax benefit.
GAAP net loss was $10.9 million in the fourth quarter of 2014 compared to GAAP net income of $2.7 million in the same period last year. The fourth quarter of 2014 results include the impact of $8.1 million of acquisition-related costs due to the company's acquisition of Trulia, Inc.
Adjusted EBITDA was a record $20.0 million in the fourth quarter of 2014, or 22% of revenue, which was an increase from $15.4 million in the fourth quarter of 2013, or 26% of revenue.
Full Year 2014 Financial Highlights
Basic and diluted non-GAAP net income per share was $0.38 and $0.35, respectively, in 2014 compared to basic and diluted non-GAAP net income per share of $0.20 and $0.18, respectively, in 2013.
Due primarily to planned increases in advertising expenses and acquisition-related costs due to the company's acquisition of Trulia, Inc., GAAP net loss was $43.6 million in 2014, compared to GAAP net loss of $12.5 million in 2013. The 2014 results include the impact of $21.5 million from acquisition-related costs due to the company's acquisition of Trulia, Inc.
Adjusted EBITDA was a record $49.8 million in 2014, or 15% of revenue, which compares to $30.1 million in 2013, or 15% of revenue.
Operating and Business Highlights
Zillow's audience continues to grow substantially, extending the company's category leadership. Average monthly unique users during the three months ended December 31, 2014 were nearly 77 million, up 41% year-over-year. For additional information, see "Key Growth Drivers" below.
During the fourth quarter of 2014, visits to Zillow via a mobile device increased 57% year-over-year, and in December 2014, 420 million homes were viewed on Zillow via a mobile device, which equates to 157 homes per second. Nearly two-thirds of Zillow's visits come from a mobile device; on weekends it's more than 70%.
Premier Agent advertisers spent a record amount with Zillow in the fourth quarter of 2014. Premier Agent revenue reached an annualized run rate of more than $268 million in the quarter, compared to a $157 million run-rate at this time last year. Zillow added 1,428 net new Premier Agent advertisers in the fourth quarter for a total of 62,305 as of December 31, 2014, with average revenue per advertiser reaching a record $359, up from $271 in the same period last year. Premier Agent advertisers who have been on the platform more than 12 months spent 59% more in the fourth quarter this year than a year ago. In the fourth quarter, 60% of Premier Agent bookings came from existing agents buying more impressions.
Zillow Mortgages continues to grow remarkably in the face of challenging trends across the mortgage industry. While the Mortgage Bankers Association reported a year-over-year decline in total originations of 39%1, Zillow Mortgages saw loan requests grow 66% year over year to approximately 7.4 million during the fourth quarter. The vast majority of these requests were for purchase loans, which also include Zillow pre-approval submissions. As of the end of the fourth quarter, consumers have submitted over 125,000 lender reviews to Zillow Mortgages.
Zillow's New York City marketplace, StreetEasy, achieved record annual revenue for 2014 resulting from significant annual growth in mobile and Web traffic, listings page views, and contacts delivered to brokers.
In 2014, Zillow created more new partnerships across the real estate industry than in any prior year.
The Zillow Partnership Platform more than doubled the amount of participating MLSs in 2014, accounting for an additional 300,000 listings coming directly to Zillow.
Zillow Pro for Brokers added 3,800 new brokers to the program, bringing more than 100,000 listings to Zillow during the year.
In January 2015, the company announced the Zillow Data Dashboard, a new listing management and reporting platform that puts increased control of listings in the hands of MLS members and brokers. Zillow expects to directly connect with a total of 1.6 million for-sale-by-agent listings by April 2015.
Zillow Tech Connect added 45 new technology solutions in 2014 for the agents and brokers who use Zillow to manage their contacts.
In January, Zillow kicked off "Zillow's Housing Roadmap to 2016," a national tour to explore the housing issues Americans face in their neighborhoods and communities, and how they affect the nation as a whole. The tour kicked off in Washington, D.C. and included an online fireside chat with Secretary of Housing and Urban Development Julian Castro moderated by Zillow Chief Economist Stan Humphries.