Seeking Alpha

Zillow hikes full-year guidance; Premier Agent ARPU keeps rising

  • Zillow (NASDAQ:Z) expects Q3 revenue of $87M-$88M and full-year revenue of $321M-$323M, above consensus estimates of $82.6M and $310.8M. Full-year adjusted EBITDA guidance has been hiked by $4M to $52M-$54M.
  • The figures don't assume any revenue from the Trulia (NYSE:TRLA) merger, which is expected to close in 2015.
  • Q2 Marketplace revenue +72% Y/Y to $78.7M, an even growth rate with Q1. Within the segment, real estate revenue rose 83% to $56.1M, and mortgages revenue 13% to $6.6M.
  • Display (ad) revenue +53% Y/Y to $16.1M, after growing 62% in Q1.
  • Premier Agent subs rose by 3,850 Q/Q to 56.8K; 4,654 were added in Q1. ARPU rose to $320 from $286 in Q1 and $266 a year ago. Monthly unique users rose 49% to 81.1M, and mobile visits nearly doubled.
  • With marketing and R&D spend remaining aggressive, GAAP costs/expenses rose 56% Y/Y to $89.4M. Sales/marketing spend made up $48.1M of the total.
  • Zillow is nearly unchanged AH. Trulia is up 1.1%.
  • Q2 results, PR

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Comments (6)
  • mapodga
    , contributor
    Comments (4223) | Send Message
     
    Well, above information are quite strangely designed for us (financial investor).

     

    By my opinion is important to know.

     

    DJ Zillow 2Q Loss $10.5M
    DJ Zillow 2Q Rev $78.7M

     

    So, company with market capitalization of 5.6 bln $ is making 78.7M $ of revenue per Q and from this level of revenue manage to make 10.5M $ loss. This is almost 15% negative operating margin (from -8% in last year).

     

    On share level they achieved

     

    * Q2 non-GAAP loss per share $0.05
    * Q2 GAAP loss per share $0.26

     

    Relating to their trend we could say that, the more they sold, bigger is loss.

     

    And level of planned revenue is such that if they achieve this "ambitious and upward plan" they come to P/R level at almost 20.

     

    And even if would have operational margin 10% and not -15% at such relations between share price and revenue, P/E wouldn't come under 200!?!
    5 Aug 2014, 07:58 PM Reply Like
  • King Rat
    , contributor
    Comments (879) | Send Message
     
    Well said. Marginal cost > marginal revenue.
    5 Aug 2014, 08:50 PM Reply Like
  • 81george
    , contributor
    Comments (295) | Send Message
     
    Wall Street once again is mesmerized by sweet talker Rascoff, who is a great BS artist.
    Now, stop talking, show me the money.
    5 Aug 2014, 08:12 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (4466) | Send Message
     
    the stock got absolutely decimated in AH...but why? The earnings were not that bad
    5 Aug 2014, 10:04 PM Reply Like
  • mapodga
    , contributor
    Comments (4223) | Send Message
     
    Mark,

     

    You have to joking.

     

    Earnings is not so bad!?!

     

    What kind of earnings. It wasn't any earnings. They made 10.5 million $ of Loss.

     

    So no money in pocket (earnings), but money went out of pocket (loss).

     

    Imagine that you INVEST in machine for 1000$. Than this machine produce in entire year for 40-50$ and made from this 10$ loss (this is Zillow in bigger scale).
    Is it possible to return your money from such investment?

     

    Never. But if you buying with other people money (like some institutions), then... everything is possible.
    6 Aug 2014, 04:45 AM Reply Like
  • 81george
    , contributor
    Comments (295) | Send Message
     
    Mark Krieger, are you the guy who asked me what I am going to do, when I posted my short position at 164.3? I covered last night AH. You wonder why it got killed? Simple: marginal increase in expenses is > than marginal increase in revenue. Z continues to pay more for every dollar they receive and there is no end to this. It's like a big Ponzi scheme. And the company on the stand alone basis is worth 6 billion? Gimme a break. I will continue shorting Z aggressively on every upside to 160-165.
    6 Aug 2014, 12:38 AM Reply Like
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