Zillow Group releases Q4 and full year 2019 financial reports

Editor

February 19, 2020

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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
December 31,

 

2018 to 2019
% Change

 

Year Ended
December 31,

 

2018 to 2019
% Change

 

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.

Editor

February 19, 2020

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Acerca de Lucas Vargas:

  • Empezó en Grupo ZAP como el VP de Sales y en 2016 cuando la empresa tenía 60 empleados. Fue nombrado COO de VivaReal tomando el mando de Brian Requarth el Co-Fundador. VivaReal lanzó en Colombia y se trasladó a Brasil. En 2017 se hizo CEO del Grupo ZAP.
  • Ha trabajado en Mexico en PWC y en el Banco Santander
  • Tiene un Master de Business Administration de Harvard
  • En noviembre este año después de la fusión de OLX Brasil y Grupo ZAP fue nombrado el CEO del OLX Business Unit. Lidera la empresa junto con Andries Oudshoorn y Marcos Leite
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Simon Baker is the Founder and Executive Chairman of Online Marketplaces and Property Portal Watch. Involved with property portals for 15 years, he’s a well-recognized expert and industry consultant.
As former CEO/MD of the REA Group for 8 years, Simon led the group to its current market-leading position. When he joined REA Group in 2001, it had $4m in revenues, $6m in losses and an $8m market cap.
By 2008, the company presided over $155m in revenues, $35m in EBITDA and enjoyed a peak market cap of $1b. Simon is currently Chairman of the Mitula Group and Real Estate Investar and a serial portal founder and, investor.