Zillow Reports 25% Revenue Boost and an All Time UB High

Anna Game Lopata

May 3, 2016

Share on facebook
Share on twitter
Share on reddit
Share on linkedin
Share on email
Spencer Rascoff
Zillow CEO Spencer Rascoff

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.

  • Basic and diluted GAAP net loss per share was $0.27 in the first quarter of 2016, compared to basic and diluted GAAP net loss per share of $0.40 in the same period last year.
  • Basic and diluted non-GAAP net loss per share was $0.13 in the first quarter of 2016, compared to basic and diluted non-GAAP net income per share of $0.02 in the same period last year. Non-GAAP net income (loss) per share excludes share-based compensation expense, acquisition-related costs, restructuring costs and income taxes.

Financial highlights for the three months ended March 31, 2016 also include:

Average monthly unique users for the first quarter of 2016 exceeded 156 million.

  • All-time high of more than 166 million unique users in March to Zillow Group consumer brands Zillow, Trulia, StreetEasy and HotPads, an increase of 22% year-over-year.
  • In March, Zillow Group achieved its highest market share, capturing 63% of the mobile and Web real estate audience.
  • When looking at mobile-only, Zillow Group’s market share is even larger, capturing 72% of the category.1

Zillow Group’s Premier Agent business achieved record revenue of $134.5 million in the first quarter of 2016, up 25% year-over-year on a pro-forma basis, and exceeded the high end of guidance.

  • Average Revenue Per Advertiser (ARPA) was $487, up 40% year-over-year on a pro-forma basis.
  • Total sales to Premier Agent Advertisers who have been customers for more than one year increased 56% year-over-year.
  • Sales to existing Premier Agent Advertisers accounted for 71% of total bookings.
  • Premier Agent Advertisers who spend more than $5,000 per month:
  • Increased 83% year-over-year on a total dollar basis.
  • Increased 74% year-over-year in the number of agent advertisers.

Zillow Group says it is continuing to innovate by launching new products and features that enhance consumers’ and agents’ experiences across all mobile and Web platforms.

  • Team profiles on Premier Agent platform allow agents on teams to associate themselves with that team, and help them more effectively manage and convert their flow of online leads to commissions.
  • New suite of lead management tools enables team leaders to route online leads automatically to their team and track results.
  • New self-serve shopping cart for Premier Agents allows for more flexibility in purchasing advertising.

Business Outlook – Second Quarter and Full Year 2016

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
(in millions)  
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

Anna Game Lopata

May 3, 2016

Related News

Don't Miss Out

Enter your email address and get updates from Online Marketplaces.

Gold Sponsor

Property Portal Watch

Company Category Here
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.

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
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nullam dapibus, dolor vitae fringilla pulvinar, ante nulla venenatis dui, eu venenatis tellus ante a purus. Morbi faucibus lacinia nunc ut sagittis. Pellentesque et maximus justo. Duis tortor erat, venenatis vel neque a, ultricies sagittis lectus. Pellentesque mattis sit amet nunc maximus maximus. In mollis, lorem eu iaculis vestibulum, mi nunc elementum orci, in dictum diam justo sit amet erat. Quisque aliquam a quam ac auctor.
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.