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Zillow Group, Inc. (Z)

  • Wed, Feb. 18, 12:51 PM
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  • Wed, Feb. 18, 12:30 PM
    • Zillow (Z +14.6%) has taken off on its first trading day as a company containing both Zillow and Trulia's assets. 3.6M shares have already been traded; the 3-month average for Zillow proper is 1.4M.
    • During a CC, CEO Spencer Rascoff reiterated Zillow expects the merger to give it more scale/bargaining power when negotiating for MLS data, and declared the company has already made much progress in finding alternate sources for listings to be lost by the April expiration of a deal with Listhub (owned by owner News Corp.). "When we announced parting with News Corp. we were freed from the constraint of being reliant on a competitor for listings."
    • Yesterday: Zillow closes Trulia deal, plans to cut 350 jobs
  • Tue, Feb. 17, 5:30 PM
    • With the FTC having ended its review of the deal (as disclosed last Friday), Zillow (NASDAQ:Z) has officially closed its $2.5B all-stock merger with Trulia (NYSE:TRLA). The merged company will begin trading under Zillow's ticker tomorrow, and be known as Zillow Group.
    • Notably, Trulia COO Paul Levine will run Trulia post-merger; Trulia CEO Pete Flint will join Zillow Group's board, as will former Trulia director Greg Waldorf.
    • Zillow Group plans to cut 280 jobs in Q1 (mostly redundant sales/admin positions), and another 70 in Q2. Once the cuts are done, the company will have ~2K employees.
    • Zillow rose 2.5% in regular trading in the wake of its Q4 report and FTC announcement. Trulia rose 3.1%.
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  • Fri, Feb. 13, 5:52 PM
    • More specific metrics from Zillow's (NASDAQ:Z) Q4 report: Average monthly unique users of nearly 77M (up 41%); mobile visits (nearly two-thirds of Zillow's visits) were up 57%.
    • Premier Agent advertising revenue hit an annualized run rate of more than $268M vs. prior year's $157M. Zillow netted 1,428 new Premier Agent advertisers at average revenue of $359, up from prior year's $271.
    • For the full year, revenues were up 65% to record $325.9M (Marketplace Revenue up 73% to $267.2M; Display Revenue up 37% to $58.7M).
    • There's no conference call to discuss earnings, but Zillow is holding a call to discuss the Trulia acquisition Wed., Feb. 18 at 9 a.m. ET, the day after it expects to close the deal.
    • Shares now significantly higher after hours, +5.2%.
  • Fri, Feb. 13, 5:20 PM
    • Zillow (NASDAQ:Z) is now up 1.2% in late trading after beating on the top line with record revenue, and despite an EPS miss.
    • The company also says it expects to close its acquisition of Trulia (NYSE:TRLA) as soon as Tuesday, now that the FTC has wrapped its look at the deal.
    • Revenues of $92.3M (up 58%) were made up of: Display Revenue of $14.1M (up 17%); Marketplace Revenue of $78.2M (up 69%).
    • Marketplace Revenue comprised Real Estate Revenue of $70.8M (up 73%) and Mortgages Revenue of $7.4M (up 38%).
    • Adjusted EBITDA of $20M (22% of revenue) missed expectations of $22.15M.
    • Press release
    • Previously: Zillow and Trulia soar; FTC staff reportedly backs deal (Jan. 23 2015)
  • Fri, Feb. 13, 5:12 PM
    • Zillow (NASDAQ:Z): Q4 EPS of $0.24 misses by $0.04.
    • Revenue of $92.3M (+58.3% Y/Y) beats by $2.29M.
    • Shares +2.35% AH.
    • Press Release
  • Thu, Feb. 12, 11:23 AM
    • Merger partners Zillow (Z +6.6%) and Trulia (TRLA +6.4%) are posting big gains in morning trading. Zillow has already seen 1.12M shares change hands vs. a 3-month daily average of 1.39M, and Trulia 561K vs. a 3-month average of 607K.
    • Both companies soared last month on a report stating the FTC staff has recommended approving their all-stock merger. Neither has posted Q4 results yet.
    • Short-covering could be driving today's moves: Zillow had 14.5M shares shorted as of Jan. 30, a 52-week high and equal to a whopping 54% of its float. Trulia had 8.3 shares shorted, well below a May 30 level of nearly 14M but still equal to 24% of its float.
  • Tue, Feb. 10, 5:35 PM
  • Tue, Feb. 10, 8:54 AM
    • Under a digital marketing alliance between the two companies, Citigroup (NYSE:C) will have a boosted presence on Zillow (NASDAQ:Z), Zillow Mortgages, and Street Easy - Zillow's NYC-dedicated app.
    • Head of Global Mortgages at Citi, C.D. Davies:  “We are stepping up our digital presence in the real estate space to ensure we are a leading mortgage provider in the markets we serve." The bank of late has made a point of saying the focus of its consumer business going forward will be on the largest U.S. cities.
    • Source: Press Release
  • Tue, Feb. 3, 1:25 PM
    • Though the Nasdaq is only up 0.4%, a long list of tech firms are posting outsized gains today.
    • It's a good day for online real estate: Merger partners Zillow (Z +5%) and Trulia (TRLA +4.9%) are up sharply, as are Chinese online real estate plays SouFun (SFUN +5.2%), E-House (EJ +6.5%), and Leju (LEJU +3.8%).
    • Other major tech gainers include security software firm Imperva (IMPV +4.7%), gaming headset maker Turtle Beach (HEAR +6.6%), salvage auction site Liquidity Holdings (LQDT +7.4%), RF filter tech developer Resonant (RESN +10.7%), telecom equipment/SDN software vendor Cyan (CYNI +10.1%), Chinese CDN owner ChinaCache (CCIH +10.8%), application delivery controller vendor A10 Networks (ATEN +6.1%), Chinese sports lottery site (WBAI +7.6%), and unified communications hardware/software firm ShoreTel (SHOR +6.7%).
    • Earlier: Solar stocks soar as oil tops $51, CSIQ strikes deal
    • Earlier: 3D printing stocks routed after Stratasys warns
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  • Fri, Jan. 23, 12:46 PM
  • Fri, Jan. 23, 11:27 AM
    • Zillow (Z +11.6%) and Trulia (TRLA +13.2%) have skyrocketed in morning trading. The FTC staff has reportedly recommended approving the companies' all-stock merger.
    • Zillow/Trulia agreed last year not to close their deal before Feb. 1, to give the FTC time to thoroughly review. Earlier this month, industry insider Brad Inman reported hearing the FTC would sign off on the deal (as has been generally expected). The combined company's share of online agent advertising has been in focus.
    • Separately, Zillow has announced Zillow Pro for Brokers (a free program for real estate brokers that aims to improve listings and grow leads) now has over 5K nationwide partners, up over 2x since last July.
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  • Thu, Jan. 15, 12:36 PM
    • Merger partners Zillow (Z -7.5%) and Trulia (TRLA -7.6%) are among the biggest decliners on a day the Nasdaq is down 0.8%. Zillow has seen 1.1M shares change hands vs. a 3-month daily average of 1.35M; Trulia has seen 271K vs. a 3-month average of 547K.
    • Freddie Mac announced this morning mortgage rates had declined for the third straight week, with the average rate for a 30-year fixed-rate mortgage making a new 20-month low of 3.66%. The average 15-year rate fell below 3% for the first time since May 2013.
    • This month has seen Zillow roll out Data Dashboard, a listing management/reporting platform for brokers and agents meant to give more control over how listings are directed to Zillow.
    • The company hopes listings funneled through Data Dashboard will limit the damage done by the April expiration of a deal with listing provider ListHub. A Zillow spokeswoman recently said that if ListHub listings were pulled today, Zillow would lose "a few hundred thousand" of its 3.6M listings.
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  • Dec. 18, 2014, 2:37 PM
    • As expected, Zillow (Z -3.3%) and Trulia (TRLA -3.6%) shareholders have signed off on the companies' all-stock merger by overwhelming margins.
    • Regulators still need to sign off on the deal, which the companies expect will close in 1H15. Zillow previously agreed not to close the merger before Feb. 1, to give the FTC more time to review.
    • Trulia shareholders will receive 0.44 shares of the combined company for each Trulia share they own. Trulia shares currently trade at a 0.43x ratio to Zillow shares (implies a slight discount to the merger price).
    • Shares of both companies are selling off in spite of a strong market rally.
  • Dec. 16, 2014, 3:59 PM
    • Internet stocks have posted substantial losses after a morning market rally proved short-lived. The Nasdaq is down 1.2%.
    • In addition to Google, which has made new 52-week lows, Facebook (FB -3%), Twitter (TWTR -4.7%), Amazon (AMZN -3.5%), and Netflix (NFLX -3.2%) are among the underperforming names. Other decliners: Z -5.5%. TRLA -5.4%. MELI -5.4%. ZNGA -4.9%. ZU -3.2%. ANGI -3.4%.
    • The selloff comes even though Goldman upgraded its rating for the sector to Attractive from Neutral today. The firm noted Internet stocks are collectively down 16% over the last 12 months (maybe 18%-19% after today), and that forward EV/EBITDA multiples have contracted significantly.
    • Internet/social media ETFs: FDN, PNQI, SOCL
  • Dec. 5, 2014, 1:40 PM
    • Zillow's (NASDAQ:Z) site and apps had 74.3M monthly unique visitors in November, -10% M/M due to seasonality but +41% Y/Y. Y/Y growth was 42% in October, and 41% in Q3.
    • Merger partner Trulia (NYSE:TRLA) is naturally following Zillow higher. Last month, Zillow agreed not to close the merger before Feb. 1, to give the FTC more time to review it.
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Company Description
Zillow Group Incoperates 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.