Zillow Group, Inc., which is transforming the way people buy, sell, rent and finance homes, has announced its consolidated financial results for the three months and year ended Dec. 31, 2019.
The company's consolidated quarterly revenue grew by 158% and annual revenue grew 106%, driven by rapid expansion within the Homes segment and strong growth in Zillow Group's Premier Agent business.
Complete financial results and 2020 outlook for the first quarter and full year can be found in our shareholder letter and in the investor relations section of Zillow Group's website.
CEO and Zillow Co-Founder Rich Barton, said:
"In all, I'd characterize 2019 as tumultuously remarkable. We're in the midst of a multi-year expansion to rewire real estate transactions and streamline how our customers buy, sell, rent and borrow that dramatically expands our market opportunity and profit potential. Our team's strong execution delivered record Q4 and full year results that beat our outlook on every measure.
"Our Premier Agent business is solid, and we have started 2020 with some of the best retention rates we've seen in recent history."
Recent highlights include:
- Fourth quarter consolidated revenue grew 158% year over year to a record $943.9 million. Full year consolidated revenue more than doubled year over year to $2.7 billion.
- Internet, Media & Technology (IMT) cost control and operating leverage drove significant margin expansion in the fourth quarter and full year.
- Premier Agent year-over-year revenue growth continued to accelerate in the fourth quarter.
- Fourth quarter and full year 2019 Homes segment revenue and Adjusted EBITDA significantly outperformed expectations, delivering $603.2 million in revenue in the fourth quarter.
- In the fourth quarter of 2019, Zillow Offers entered three new markets, including Los Angeles, the largest market to date. Zillow Offers is now available in 23 markets. During the quarter, Zillow sold 1,902 homes and purchased 1,787 homes, ending the quarter with 2,707 homes in inventory.
- Traffic to Zillow Group mobile apps and websites reached nearly 173 million average monthly unique users for the three months ended Dec. 31, 2019, an increase of 10% year over year, driving 1.8 billion visits during the quarter. The company reported a record 8.1 billion visits for the year ended Dec. 31, 2019, up 12% year over year.
- Zillow Group ended the year with $2.4 billion in cash, cash equivalents and investments.
Fourth Quarter and Full Year 2019 Financial Highlights
The following table sets forth Zillow Group's financial highlights for the periods presented (in thousands, unaudited):
|
Three Months Ended |
2018 to 2019 |
Year Ended |
2018 to 2019 |
||||||||||||||||
|
2019 |
2018 |
2019 |
2018 |
||||||||||||||||
|
Revenue: |
|||||||||||||||||||
|
Homes segment |
$ |
603,228 |
$ |
41,347 |
1,359% |
$ |
1,365,250 |
$ |
52,365 |
2,507% |
|||||||||
|
IMT segment: |
|||||||||||||||||||
|
Premier Agent |
233,482 |
221,012 |
6% |
923,876 |
898,332 |
3% |
|||||||||||||
|
Rentals |
39,235 |
34,917 |
12% |
164,173 |
134,587 |
22% |
|||||||||||||
|
Other (1) |
46,948 |
44,779 |
5% |
188,847 |
168,224 |
12% |
|||||||||||||
|
Total IMT segment revenue |
319,665 |
300,708 |
6% |
1,276,896 |
1,201,143 |
6% |
|||||||||||||
|
Mortgages segment |
21,054 |
23,280 |
(10)% |
100,691 |
80,046 |
26% |
|||||||||||||
|
Total revenue |
$ |
943,947 |
$ |
365,335 |
158% |
$ |
2,742,837 |
$ |
1,333,554 |
106% |
|||||||||
|
Other Financial Data: |
|||||||||||||||||||
|
Segment income (loss) before income taxes: |
|||||||||||||||||||
|
Homes segment |
$ |
(107,923) |
$ |
(28,812) |
$ |
(312,120) |
$ |
(59,691) |
|||||||||||
|
IMT segment |
$ |
36,221 |
$ |
(57,454) |
$ |
80,060 |
$ |
(57,638) |
|||||||||||
|
Mortgages segment |
$ |
(12,654) |
$ |
(13,086) |
$ |
(44,962) |
$ |
(13,711) |
|||||||||||
|
Net loss |
$ |
(101,210) |
$ |
(97,682) |
$ |
(305,361) |
$ |
(119,858) |
|||||||||||
|
Adjusted EBITDA (2): |
|||||||||||||||||||
|
Homes segment |
$ |
(82,525) |
$ |
(23,186) |
$ |
(241,326) |
$ |
(48,460) |
|||||||||||
|
IMT segment |
87,659 |
58,261 |
303,863 |
240,025 |
|||||||||||||||
|
Mortgages segment |
(8,311) |
(2,718) |
(23,653) |
9,267 |
|||||||||||||||
|
Total Adjusted EBITDA |
$ |
(3,177) |
$ |
32,357 |
$ |
38,884 |
$ |
200,832 |
|||||||||||
|
Percentage of Revenue: |
|||||||||||||||||||
|
Segment income (loss) before income taxes: |
|||||||||||||||||||
|
Homes segment |
(18) |
% |
(70) |
% |
(23) |
% |
(114) |
% |
|||||||||||
|
IMT segment |
11 |
% |
(19) |
% |
6 |
% |
(5) |
% |
|||||||||||
|
Mortgages segment |
(60) |
% |
(56) |
% |
(45) |
% |
(17) |
% |
|||||||||||
|
Net loss |
(11) |
% |
(27) |
% |
(11) |
% |
(9) |
% |
|||||||||||
|
Adjusted EBITDA: |
|||||||||||||||||||
|
Homes segment |
(14) |
% |
(56) |
% |
(18) |
% |
(93) |
% |
|||||||||||
|
IMT segment |
27 |
% |
19 |
% |
24 |
% |
20 |
% |
|||||||||||
|
Mortgages segment |
(39) |
% |
(12) |
% |
(23) |
% |
12 |
% |
|||||||||||
|
Total Adjusted EBITDA |
— |
% |
9 |
% |
1 |
% |
15 |
% |
|||||||||||
(1) Other revenue primarily includes revenue generated by new construction and display, as well as revenue from the sale of various other marketing and business products and services to real estate professionals.
(2) Adjusted EBITDA is a non-GAAP financial measure; it is not calculated or presented in accordance with U.S. generally accepted accounting principles, or GAAP. See below for more information regarding our presentation of Adjusted EBITDA, including a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure, which is net loss on a consolidated basis and income (loss) before income taxes for each segment, for each of the periods presented.
SOURCE Zillow Group, Inc.
