[caption id="attachment_56739" align="alignleft" width="383"] Zillow CEO Spencer Rascoff[/caption]
Zillow Group has announced a first quarter total revenue of $186 million, an increase of 25 per cent year on year (YOY), while EBITA dropped in part due to legal costs.
Real Estate revenue reached $152.5 million an increase of 34 per cent YOY with the results prompting a raise to full-year revenue outlook to a range of $825 million to $835 million.
Mortgages Revenue, which increased 65 per cent to $16.5 million from pro forma revenue of $10 million in the first quarter of 2016
The property portal giant also recorded an all-time high of more than 166 million unique users in March for all its brands including Zillow, Trulia, StreetEasy and HotPads which represents an increase of 22 per cent YOY.
Average monthly unique users during the first quarter reached more than 156 million.
However, Display Revenue decreased 34 per cent to $17 million from $25.6 million in the first quarter of 2015,primarily a result of the company's strategy to deemphasize display advertising and improve the user experience.
First quarter net loss was reduced to $47.6 million from $58.4 million in the same period last year. The loss includes the impact of $15.7 million in legal costs related to the litigation with News Corp. and the National Association of Realtors.
Adjusted EBITDA was $1.9 million in the first quarter of 2016, or 1 per cent of Revenue, which was a decrease from an EBITDA of $24.5 million (15% of revenue) in the first quarter of 2015.
Adjusted EBITDA in the first quarter of 2016 includes $15.7 million in legal costs related to the litigation with News Corp. and the National Association of Realtors.
Average monthly unique users for the first quarter of 2016 exceeded 156 million.
For the second quarter of 2016, Zillow Group's Revenue is expected to be in the range of $203 million to $208 million. Adjusted EBITDA for the second quarter is expected to be $15 million to $20 million, and is affected by legal costs associated with the News Corp. and National Association of Realtors litigation, which are anticipated to be between $18 million and $20 million in the second quarter.
For full year 2016, Zillow Group is increasing its outlook for Revenue to a range of $825 million to $835 million, up from a range of $805 million to$815 million.
The 2016 revenue outlook represents a 29 per cent year-over-year increase at the midpoint of the range, compared to a 24 per cent increase from 2014 to 2015,
Adjusted EBITDA outlook remains in the range of $115 million to $125 million, and is affected by legal costs associated with the News Corp. and National Association of Realtors, litigation, which are anticipated to be between $50 million and $55 million in 2016.
|Three Months Ending||Year Ending|
|Zillow Group Outlook as of May 3, 2016||June 30, 2016||December 31, 2016|
|Revenue||$203 to $208||$825 to $835|
|Premier Agent revenue||$146 to $148||$595 to $600|
|Display revenue||$16 to $17||$58 to $60|
|Operating expenses||$237 to $242||***|
|Adjusted EBITDA||$15 to $20||$115 to $125|
|Depreciation and amortization||$24 to $26||$95 to $100|
|Share-based compensation expense||$26 to $28||$105 to $110|
|Capital expenditures||***||$41 to $43|
|Weighted average shares outstanding — basic||178.5 to 180.5||180.0 to 182.0|
|Weighted average shares outstanding — diluted||193.5 to 195.5||194.5 to 196.5|