Zillow issues strong revenue guidance, shares +6.1% AH

Zillow (Z) guided on its Q3 CC for Q4 revenue of $55M-$56M, above a $53.4M consensus. Shares are once more rallying after taking a breather over the last six weeks. Trulia (TRLA) +2.8% AH in sympathy.

Q3 EPS of -$0.05 beat consensus by $0.03. Marketplace revenue (77% of total) +73% Y/Y to $40.9M after rising 86% in Q2; real estate revenue accounted for $35.1M, and mortgage revenue $5.7M. Display revenue (ads) +50% to $12.4M after growing only 29% in Q2.

5,942 Premier Agent subs were added, up from 4,777 in Q2. The total base rose 68% Y/Y to 44,749. Average revenue/sub was $264, -$2 Q/Q and -$6 Y/Y.

Average monthly unique visitors (via both mobile and PCs) totaled 61.1M, +13% Q/Q and +69% Y/Y. comScore estimates Zillow's PC online real estate share rose to 34% from 27% at the beginning of 2013.

Mobile visits more than doubled Y/Y; they "nearly doubled" in Q2. As was the case in Q2, 60% of Zillow visits took place via mobile devices.

Spending remains aggressive: sales/marketing spend rose 121% Y/Y to $31.2M, R&D spend rose 82% to $12.2M, and G&A spend doubled to $10.4M. All three growth rates outpaced rev. growth of 67%.

Q3 results, PR

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Comments (2)
  • King Rat
    , contributor
    Comments (1833) | Send Message
    Good for Zillow. Zillow has the potential to completely revolutionize the housing industry. Revenue/sub was down but revenue/existing sub was way up. New agents need a quarter or two to get up to speed.


    It may just be my connection, but Zillow's pages open much faster than Trulia's pages and I get the information I want to get faster with fewer clicks. If that is the case for everybody, Zillow is going to wipe Trulia off the map unless the competition seriously speeds up.
    5 Nov 2013, 08:47 PM Reply Like
  • gamesetmatch
    , contributor
    Comments (56) | Send Message
    i hear the realtors like trulia more than zillow for whatever that is worth. Growth is in rental market as in the apartments that i own but not a huge fan of both but this is the new world. There are still plenty of players like apartmentguide.com and apartments.com. These companies can continue to grow but will be alot of consolidation to come first.
    6 Nov 2013, 09:06 AM Reply Like
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