Seeking Alpha

Zillow Group, Inc. (Z)

  • Wed, Nov. 4, 9:15 AM
    | Wed, Nov. 4, 9:15 AM | 2 Comments
  • Tue, Nov. 3, 5:31 PM
    • Zillow's (Z, ZG) Q3 EPS of $0.07 beat a -$0.03 consensus, and revenue of $176.8M slightly beat a $176.5M consensus. However, the company has guided on its earnings call for Q4 revenue of $165M-$170M, below a $179.1M consensus. Q4 adjusted EBITDA is expected to total $20M-$25M, down from Q3's $29.5M.
    • Zillow notes Q4 guidance doesn't include revenue from Market Leader, whose sale was closed at the end of September. Some Q4 analyst estimates might not have been adjusted to account for the sale.
    • The online real estate leader does expect 2016 revenue growth to exceed 2015's rate. For the first 9 months of 2015, Zillow's pro forma revenue (adjusts for the Trulia deal) is up 22% Y/Y.
    • Top-line performance: Marketplace revenue rose 22% Y/Y in Q3 to $153.2M, while display revenue (ads, hurt by weak industry demand) fell 23% to $30.4M. The display decline is attributed to "continued strategic efforts to reduce display advertising on the company's mobile applications and websites to further promote our Marketplace products."
    • Metrics: Agent advertisers fell to 96,965 at the end of Q3 from 101,297 at the end of Q2. Zillow previously stated it's now de-emphasizing agent count, and instead focusing on growing revenue via high-ARPA agents. Monthly unique users averaged 142.1M, up slightly from Q2's 141M.
    • Z -7.5% after hours to $27.30. ZG -9.3% to $28.10.
    • Q3 results, PR
    • Update (6:39PM ET): Zillow tells Seeking Alpha it had found only a small number of Q4 analyst estimates had accounted for the Market Leader sale. Both Z and ZG remain down over 7%.
    | Tue, Nov. 3, 5:31 PM | 17 Comments
  • Tue, Nov. 3, 4:33 PM
    • Zillow (NASDAQ:Z): Q3 EPS of $0.07
    • Revenue of $176.77M (+99.4% Y/Y)
    • Shares +6.44%.
    • Press Release
    | Tue, Nov. 3, 4:33 PM | Comment!
  • Wed, Oct. 21, 11:00 AM
    • Guggenheim Securities has downgraded Zillow (Z -3.5%, ZG -2.9%) to Neutral ahead of its Nov. 3. Q3 report.
    • Both Zillow's Class A and C shares have soundly outperformed the Nasdaq over the last two months. The A shares were performing very differently earlier this year.
    | Wed, Oct. 21, 11:00 AM | 11 Comments
  • Thu, Oct. 8, 2:17 PM
    • Zillow's (ZG +7.4%) Class A shares and (to a lesser extent) its non-voting Class C (Z +3.9%) shares are up strongly on a day the Nasdaq is down 0.6%. The A and C shares are now respectively up 59% and 36% from their 52-week lows.
    • No major news has arrives. Zillow did announce this morning over 2/3 of Zillow and Trulia agent listings now stem from direct deals with multiple listing services (MLSs). The company has been busy striking MLS deals this year, in part to offset the termination of Zillow/Trulia's deals with ListHub.
    | Thu, Oct. 8, 2:17 PM | 18 Comments
  • Thu, Sep. 3, 5:19 PM
    • Zillow (Z, ZG) is selling its Market Leader real estate CRM software unit to a division of Canada's Constellation Software (OTCPK:CNSWF) for $23M. The deal is expected to close in early Q4.
    • The sale price is a small fraction of the $355M Trulia paid for Market Leader in 2013. Zillow announced last month Market Leader's sales fell 21% Y/Y in Q2 to $12.5M, and that it's "conducting a strategic review" for the business. Job cuts were carried out in 2014.
    | Thu, Sep. 3, 5:19 PM | 4 Comments
  • Mon, Aug. 24, 9:19 AM
    | Mon, Aug. 24, 9:19 AM | 14 Comments
  • Mon, Aug. 17, 11:44 AM
    • As first announced on July 21, Zillow (NASDAQ:Z) has distributed two non-voting Class C shares for each Class A or B share owned by investors. The C shares trade under the symbol Z, and the A shares under the symbol ZG.
    • The C shares currently trade at $24.87, and the A shares at $24.69 - B shares (have 10x the voting rights of A shares) are only held by Zillow's co-founders. Together, the shares are worth $74.43, above Friday's pre-split close of $73.21. They remain close to a split-adjusted low of $22.86.
    | Mon, Aug. 17, 11:44 AM | 6 Comments
  • Wed, Aug. 5, 9:19 AM
    | Wed, Aug. 5, 9:19 AM | 11 Comments
  • Tue, Aug. 4, 5:38 PM
    | Tue, Aug. 4, 5:38 PM | 9 Comments
  • Tue, Aug. 4, 5:34 PM
    • Low expectations have helped Zillow (NASDAQ:Z) jump to $79.80 following its Q2 beat. Shares were down 30% YTD going into earnings.
    • On its earnings call, the company has reiterated 2015 revenue guidance of $690M (above a $666.5M consensus). Adjusted EBITDA guidance has been hiked by $5M to $85M-$90M. Q3 revenue guidance is nonetheless at $175M-$177M, below a $180.9M consensus.
    • Pro forma revenue growth (accounts for the Trulia merger) was 20% in Q2, a slowdown from Q1's 35%. Marketplace revenue rose 29% to $145.5M, while display revenue (hurt by a weak display ad market, ask LinkedIn and Yelp) fell 15% to $25.8M.
    • With Marketplace, real estate revenue rose 37% to $122.6M, mortgage revenue rose 44% to $10.4M, and Market Leader (real estate CRM software) fell 21% to $12.5M. Zillow reiterates it's "conducting a strategic review" for Market Leader.
    • Advertisers/ARPA: The company had 101,297 agent advertisers at the end of Q2, down 2,118 Q/Q. On the other hand, average monthly revenue per advertiser (ARPA) rose to $375 from $354 in Q1 and $318 a year ago. Zillow notes it "strategically ended several of Trulia's short-term discounted products and changed the sales team's incentives to focus on net revenue rather than the number of advertisers." The company adds it's focusing on "high ARPA agents who provide a superior consumer experience."
    • GAAP sales/marketing spend equaled 51.3% of revenue, R&D 30%, and G&A 26%. Gross margin was 90%. Average monthly unique users totaled 141M. Zillow claims a 72% share of U.S. mobile exclusive real estate visitors (per comScore).
    • Q2 results, PR
    • Update (7:25PM ET): Zillow is now up 14.5% AH.
    | Tue, Aug. 4, 5:34 PM | 7 Comments
  • Tue, Aug. 4, 4:32 PM
    • Zillow (NASDAQ:Z): Q2 EPS of -$0.01 beats by $0.25.
    • Revenue of $171.27M (+117.7% Y/Y) beats by $2.58M.
    • Shares +2.5%.
    • Press Release
    | Tue, Aug. 4, 4:32 PM | 21 Comments
  • Mon, Aug. 3, 4:47 PM
    • Kathleen Philips, Zillow's (NASDAQ:Z) COO since 2013, is the company's new CFO. Amy Bohutinsky, Zillow's chief marketing officer for the last 4 years, is the new COO. Both will continue reporting to CEO Spencer Rascoff.
    • Zillow announced on July 9 CFO Chad Cohen is leaving to "pursue other business interests." Q2 results arrive tomorrow afternoon.
    | Mon, Aug. 3, 4:47 PM | 9 Comments
  • Fri, Jul. 31, 9:29 AM
    • Cowen has downgraded Zillow (NASDAQ:Z) to Underperform ahead of Tuesday afternoon's Q2 report. Like others, the firm is worried about slowing subscriber and traffic growth. It also cites concerns about valuation and meeting 2016 expectations.
    • Shares have fallen to $81.00 premarket, and are now down 24% YTD. Barclays downgraded to Underweight on July 20, while Morgan Stanley launched at Overweight on July 14.
    | Fri, Jul. 31, 9:29 AM | Comment!
  • Fri, Jul. 24, 1:59 PM
    • Nearly 3 years after originally taking aim at Zillow (NASDAQ:Z), Citron Research has published a list (.pdf) of "Top 10 reasons why Zillow is going to trade below $40 next year."
    • Among Citron's arguments: The pending departure of CFO Chad Cohen; $13.7M worth of stock sales by CEO Spencer Rascoff over the last 12 months; Web scraping data that suggests Zillow/Trulia are collectively losing real estate agents; and a belief the company "can never be acquired at its current share price."
    • Of note: While Zillow has fallen considerably from a July 2014 high of $164.90 (hit amid Trulia merger euphoria), shares are still well above where they closed ($44.41) the day before Citron's original report. Q2 results arrive on Aug. 4.
    | Fri, Jul. 24, 1:59 PM | 28 Comments
  • Wed, Jul. 22, 5:29 PM
    • DotLoop provides tools (available via subscription) that enable real estate brokers, agents, and other industry service providers to create, sign, edit, and store digital documents. Zillow (NASDAQ:Z) is buying the startup for an undisclosed sum.
    • DotLoop currently has 124 employees in Cincinnati and San Francisco, and has raised $14M over its history. Zillow notes DotLoop's platform is an end-to-end solution, covering everything from "the creation of a listing agreement to the submission of offers to the actual closing." Personal, Business, and Business+ subscription packages are offered.
    • Zillow CEO Spencer Rascoff: "We're incredibly excited by DotLoop's innovation and leadership in making digital transactions a reality. Now we will be able to make their technology more readily available to Zillow Group's 10,000 broker partners and the agents they represent, as well as our approximately 100,000 real estate agent advertisers, resulting in a smoother and more efficient transaction process for everyone."
    • Yesterday: Zillow plans to issue non-voting Class C shares
    | Wed, Jul. 22, 5:29 PM | 6 Comments
Company Description
Zillow Group Inc operates the real estate and home-related information marketplaces on mobile and the Web, with a complementary portfolio of brands and products to help people find vital information about homes and connect with local professionals.