Zillow's Share Price Jumps 8% on Strength of Q3 Numbers

November 5, 2020
Share this Post: 

The market reacted very favorably to yesterday’s earnings report from US real estate giant Zillow. Consolidated revenues for the quarter totalled $657 million and exceeded even high-end expectations leading to an 8% jump in share price in extended trading yesterday as the market reacted to earnings that the company believes can be sustained in the medium to long term.

“We believe these tailwinds are durable, supported by low-interest rates and demographic shifts” Zillow CEO Rich Barton.

Despite the continued gamble that is Zillow’s iBuying division losing some $76 million, quarterly EBITDA for the group was up at $152 million largely driven by the so-called IMT segment (which includes Zillow’s main Premier Agent advertising business), earnings from which were up 24% year on year to $140 million.

The much hyped ‘Zillow Homes’ iBuying business segment, which made national news when it controversially employed its own agents to sell houses back in September, has been ramping up its activity since a full shut down in March but is still lagging behind activity levels from 2019 with revenue down 51%. The reduction of loss-making iBuying activity here was the main reason for the company posting a profitable quarter with $40 million in consolidated net income.

As for traffic and engagement metrics, Zillow’s figures here reflected fellow market-leading portal company REA Group’s in showing significant growth buoyed by the post lockdown property boom seen in many markets around the world. Monthly unique users reached a record 236 million across the company’s website and mobile apps, representing growth of 36% year on year.

Looking ahead to 2021, Zillow will be hoping to make efficiency gains in its iBuying business to get closer to profitability and for the strength of its core adverting business to ride out any potential election or covid related market turbulence. Barton though believes that conditions remain favourable and that societal change will continue to drive housing demand:

"Many of us are re-evaluating where we live and how we live, which has kicked off a Great Reshuffling, and we need safe, digital ways to get to a better place. Given the duration of this pandemic, the concrete is setting on new digital solutions for life and work. This is driving record demand for housing and record engagement with Zillow's leading digital real estate brands. When combined with level-headed cost decisions, the result has been profitable growth."

November 5, 2020
Edmund got to know the world of portals and marketplaces working at Mitula Group (which became Lifull Connect after the buyout in 2018). He worked directly with hundreds of portals across the world in his role in the content department for three and a half years before transferring to the SEO department to understand the inner workings of listings sites. He joined Online Marketplaces as Head of Content in March 2020.

Subscribe to our mailing list to get news updates!

Enter your email address and get updates from Online Marketplaces.

Related News

Lamudi Olx Indonesia
OLX Group Sells Indonesian Real Estate Assets to EMPG

The EMPG-owned property portal Lamudi Indonesia has today announced that it has acquired OLX's real estate business in the country...

Read More
Hometogo Seloger Deal
SeLoger Sells Off Its Vacation Rentals Brand AMIVAC to HomeToGo

The German vacation rental specialist HomeToGo has announced the acquisition of AMIVAC from French market-leading real estate vertical Groupe SeLoger...

Read More
Shutterstock 370346327 1
Lifull Connect Acquires South American Portal Properati From OLX Group

Lifull Connect, the overseas division of Japanese portal company Lifull, has announced that it has agreed to acquire the OLX...

Read More
Scout24 German Houses
Scout24 & The New Property Portal Paradigm: Analysis Part 2 - The How

Germany's market-leading real estate portal operator Scout24 recently outlined its journey, goals and ambitions in a capital markets day for...

Read More

Popular News