Zillow Group, Inc.

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  • Today, 12:43 PM
    • On a day the Nasdaq is down 2.4%, Internet stocks are seeing outsized losses after LinkedIn (down 41.3%) issued weak Q1/2016 guidance with its Q4 beat.
    • The professional social networking leader forecast its corporate hiring solutions business would see slower growth in 2016 (international macro issues were blamed). It also noted display ad sales fell by a high-30s % Y/Y in Q4 amid ongoing secular industry pressures, and reported just 7% Y/Y unique visitor member growth.
    • Facebook (FB -5.5%), which soared last week after blowing away Q4 estimates on the back of 57% Y/Y ad revenue growth, is among the casualties. As is Amazon (AMZN -4.9%), which sold off last week after missing Q4 estimates and issuing in-line Q1 sales guidance, is also down sharply. As is Twitter (TWTR -5.3%), which reports in five days and continues trading near post-IPO lows amid growth/engagement concerns.
    • Other decliners include Yelp (YELP -7.9%), TripAdvisor (TRIP -6.3%), Expedia (EXPE -6%), LendingClub (LC -8.3%), Wix.com (WIX -6.8%), Wayfair (W -7.6%), Groupon (GRPN -4.9%), Shopify (SHOP -6.3%), and Zillow (Z -6%), as well as ad tech firms Criteo (CRTO -8.9%) and TubeMogul (TUBE -7.6%). The aforementioned companies are generally expected to post Q4 results in the coming weeks.
    • Earlier: Enterprise software and security stocks hammered after Tableau/LinkedIn's earnings
    | Today, 12:43 PM | 60 Comments
  • Wed, Jan. 20, 1:18 PM
    • Like clockwork, high-beta tech stocks continue selling off at a feverish pace as markets nosedive. Today's selloff comes with the Nasdaq down 2.7%, and the S&P 3%. Margin calls are likely a contributing factor.
    • Solar stocks, which sold off yesterday even as major indices moved little, are underperforming again as energy stocks get routed once more and oil drops below $27/barrel. Hard-luck SunEdison (SUNE -13.6%) is now close to $2. Also tumbling: Canadian Solar (CSIQ -8.8%), ReneSola (SOL -8.2%), and Yingli (YGE -6.9%).
    • Security tech plays FireEye (FEYE -9.3%), Palo Alto Networks (PANW -6.1%), Rapid7 (RPD -11.6%), and Vasco (VDSI -10.5%) aren't faring better - peers Fortinet and Barrcauda were downgraded this morning. Nor are Splunk (SPLK -7.7%) and Tableau (DATA -7.2%), two firms often hyped as big data/analytics plays, or Russian tech firms Yandex (YNDX -6.6%) and Qiwi (QIWI -6.9%), which often sell off when oil prices and the ruble are under pressure.
    • Elsewhere in tech, big decliners include Zillow (Z -7.1%), Square (SQ -6.7%), Fitbit (FIT -6.6%), Groupon (GRPN -6.9%), TrueCar (TRUE -7.7%), Pure Storage (PSTG -7.8%), Jive Software (JIVE -7.4%), Shopify (SHOP -7.2%), Ruckus Wireless (RKUS -8%), Renren (RENN -6.8%), Infinera (INFN -6.1%), TripAdvisor (TRIP -6.5%), Ellie Mae (ELLI -6.7%), and Knowles (KN -6.2%).
    • Also off sharply: Several large-cap tech stocks, TowerJazz, Synaptics, Adtran
    | Wed, Jan. 20, 1:18 PM | 20 Comments
  • Nov. 4, 2015, 9:15 AM
    | Nov. 4, 2015, 9:15 AM | 2 Comments
  • Nov. 3, 2015, 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%.
    | Nov. 3, 2015, 5:31 PM | 18 Comments
  • Nov. 3, 2015, 4:33 PM
    • Zillow (NASDAQ:Z): Q3 EPS of $0.07
    • Revenue of $176.77M (+99.4% Y/Y)
    • Shares +6.44%.
    | Nov. 3, 2015, 4:33 PM
  • Oct. 21, 2015, 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.
    | Oct. 21, 2015, 11:00 AM | 11 Comments
  • Oct. 8, 2015, 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.
    | Oct. 8, 2015, 2:17 PM | 18 Comments
  • Aug. 24, 2015, 9:19 AM
    | Aug. 24, 2015, 9:19 AM | 14 Comments
  • Aug. 5, 2015, 9:19 AM
    | Aug. 5, 2015, 9:19 AM | 10 Comments
  • Aug. 4, 2015, 5:38 PM
    | Aug. 4, 2015, 5:38 PM | 9 Comments
  • Aug. 4, 2015, 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.
    | Aug. 4, 2015, 5:34 PM | 7 Comments
  • Aug. 4, 2015, 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%.
    | Aug. 4, 2015, 4:32 PM | 21 Comments
  • Aug. 3, 2015, 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.
    | Aug. 3, 2015, 4:47 PM | 9 Comments
  • Jul. 31, 2015, 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.
    | Jul. 31, 2015, 9:29 AM
  • Jul. 24, 2015, 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.
    | Jul. 24, 2015, 1:59 PM | 28 Comments
  • Jul. 20, 2015, 9:28 AM
    • Believing online local services competition is growing, Barclays' Chris Merwin has downgraded YELP to Equal Weight, and Zillow (NASDAQ:Z) to Underweight. His targets have respectively been cut to $36 and $70 and from $50 and $90.
    • Merwin: "VC-funded startups are able to undercut larger players on price or outspend on marketing, without the scrutiny of public investors ... Heading into earnings, we favor lower multiple names that we believe are at the beginning (or in the midst) of a positive earnings revision cycle, rather than challenged stocks with ostensibly 'cheap' multiples relative to consensus growth estimates that are probably too high," Both Yelp and Zillow have fended off a number of well-financed rivals over their histories.
    • He notes Yelp and Zillow have each seen traffic growth slow considerably, with Yelp's Q1 monthly unique visitors only up 8% Y/Y. Merwin argues each company needs to up its marketing spend to boost traffic, and believes the spending needed by Zillow isn't factored into consensus estimates.
    • Merwin also issued a downbeat note on Zillow on July 10, following news CFO Chad Cohen is resigning. Morgan Stanley launched at Overweight a few days later.
    • YELP -3.4% premarket to $33.79. Z -2.4% to $81.27. Yelp's Q2 report is due on July 28. Zillow is expected to report prior to Cohen's resignation date (Aug. 7).
    | Jul. 20, 2015, 9:28 AM | 1 Comment
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.