Zillow's house flipping business spells nothing but success for the company

November 26, 2019
Share this Post: 

Zillow Offers has created a new path towards revenue growth in just a little over a year.

If you’ve ever looked online for a place to live, you’re undoubtedly familiar with Zillow. For most of its existence, the publicly traded company has earned the vast majority of its revenue through ad sales from brokers hoping to get the attention of renters and buyers. But based on some new revenue data, it sounds like Zillow has made very serious progress toward cutting out those real-estate players entirely.

According to earnings data cited by Geekwire, Zillow just made a majority of its quarterly revenue—$384.6 million out of $745 million—from selling homes directly to users through its Zillow Offers platform. That $348.6 million was generated from 1,211 home sales in the quarter against 2,291 home buys, resulting in a net operating loss of $87.9 million for the vertical. Despite that net loss, news of its 55% quarterly growth in home sales revenue caused Zillow stock to shoot up by 12% in the wake of the announcement.

This development comes just 19 months after the direct-sales option launched in April 2018 for Phoenix-area homeowners. Currently, Zillow has real-estate brokerage licenses in 11 states, allowing homeowners in 21 major markets to request an offer on their property directly through the company’s offers portal. 

Read more here

Join us February 26-27 for the Property Portal Watch Conference Bangkok 2020.

November 26, 2019

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Investment And Funding Roundup 19 July 2024
Investment and Funding Roundup: Lhoopa, StudentTenant, Renters.pl

We've spotted three significant funding and investment movements this week, from an $80 million round in South Asia and two...

Read More
Product Roundup 19 July 2024
Product Roundup: SeLoger, SMG, OnTheMarket, Zoopla, BCG, ViewIT

We've spotted six interesting stories around the world in this week's Product Roundup, including some healthy competition in the UK....

Read More
Costar And Realtor.com
Move Inc. Files Injunction Request Against Unimpressed CoStar

Move Inc. has filed a motion for a preliminary injunction against CoStar and its former employee James Kaminsky from "any...

Read More
Carousell Losses Shrank 40% in 2023 as Recommerce Business Grew

The Southeast Asian e-commerce and classifieds operator Carousell saw revenue rise by 40.5% year-on-year in 2023 according to newly released...

Read More

Editor's Pick