Zillow has released its figures for Q1 of 2020. Here they are at a glance:
Revenue for Q1 was $1.13 billion. Up on the consensus estimate from FactSet which was $1.05 billion
Net loss of $163 million (78 cents per share). This is up from the $67 million loss from Q1 of 2019.
Traffic returned to pre-pandemic levels by late April
Revenue from ibuyer division up to $769 million from $128 million.
While some of these results must be taken with a grain of salt (especially ibuyer revenues where the company is still incurring heavy losses on every house), these Q1 results are not as drastic as some commentators expected and have been broadly well-received with Zillow’s share price up to $48.19 from a mid-March low of $23.51 and making steady progress towards its pre-pandemic price.
Taken with the set of results published by Australian portal giant operator The REA Group earlier today, it seems that despite impacts on listing numbers and the temporary shutdown of the housing market, big time, well-heeled portal operators will be able to ride out the storm. The traffic return could also be an indicator that the fundamental market forces which underpinned strong real estate markets in the lead up to the crisis may not have been completely vanquished by the coronavirus.