QUOTE AND NEWS
Benzinga  3 hrs ago  Comment 
In a recent report, analysts at JMP Securities expressed their bullish outlook for three stocks following meetings with company executives at the JMP Securities Technology Conference this week. Here is a summary of what analysts had to say...
Wall Street Journal  6 hrs ago  Comment 
Z Capital Partners is preparing to put the owner of the Mrs. Fields cookie and TCBY frozen-yogurt brands on the auction block, according to people familiar with the matter.
Forbes  Mar 4  Comment 
Taxes From A To Z (2015): Actual Expense Method
Motley Fool  Mar 1  Comment 
Three representatives sat down with a Fool to cover the different elements of the business, and offer a peak at what we might be able to expect from the real estate platform in 2015.
Motley Fool  Mar 1  Comment 
Rich Barton, the founder of Zillow, Expedia, and Glassdoor sits down with a Fool to discuss today's tech landscape.
Motley Fool  Feb 28  Comment 
Zillow's COO sits down with a Fool to discuss the company's past, present and future.
Benzinga  Feb 27  Comment 
On CNBC's Stock Pops & Drops, Steve Grasso spoke about Mobileye NV (NYSE: MBLY), which gained 1.42 percent on Thursday. He doesn't currently own the stock and he is waiting for it to trade above $38-$39 range to buy it. Tim Seymour thinks that...
The Economic Times  Feb 27  Comment 
"The 14th Finance Commission was quite direct about the fact that you need to reach 3% in two years’ time."
TechCrunch  Feb 27  Comment 
 Zillow now makes it easier for homeowners to edit facts about their homes and have those changes immediately reflected in its price estimates. Zillow’s so-called Zestimates are one of the key features of its service. For every house in the...




 
TOP CONTRIBUTORS

Zillow, Inc (NASDAQ:Z) runs a web marketplace for real estate. The website allows homeowners, buyers, sellers, renters, and real estate agents to connect through the website. In addition, the site provides estimates on the value of homes using a proprietary algorithm. Zillow makes money through subscriptions paid by real estate agents and professionals in order to post their profiles on the site. This allows real estate professionals to gain access to customers and allows customers to more clearly understand their options. The company also makes money through traditional advertising displayed on the website.[1]

Business Overview

For the full year 2010, Zillow reported a total revenue of $30.5M, a 74% increase over the previous year. The company had a net loss for the same period of $6.8M.[2]

New Updates

The company's initial public offering of stock on the NASDAQ occurred on July 19, 2011. The company offered 3.5M shares each for $20. This was above the revised price range of $16-$18. The initial price range was $12-$14. The deal raised a total of $70. The lead underwriter was Citigroup (C).[3]

Trends & Forces

Reliance on real estate professionals

Zillow's business model is to allow free access to individuals who want to buy, sell or rent, while only charging professionals. As a result, Zillow must continue to provide enough value to real estate professionals in order to provide reason for them to pay their subscriptions. The page views of individuals is important as it translates to more valuable subscriptions for professionals, yet this is only indirect. Real estate professionals will only be willing to pay for subscriptions to the extent that it helps them attract new customers.[4]

Dependence on the real estate market

Because Zillow's revenues are closely tied to the level of traffic and the level of subscriptions to the site, its performance is based on the real estate market. A slow market where relatively few homes are being bought and sold will result in decreased interaction on the site and so less revenue. By contract, increased market activity may cause usage of the site to rise.[5]

  1. Z S-1/A 2011 PROSPECTUS SUMMARY "Our Company" pg 1-3
  2. Z S-1/A 2011 PROSPECTUS SUMMARY "Summary Financial and Other Data" pg 9
  3. Renaissance Capital - IPO Home "Zillow surges on early trading" 20 July 2011
  4. Seeking Alpha "Will Zillow's IPO Wow the Market?" 18 July 2011
  5. Z S-1/A 2011 PROSPECTUS SUMMARY "Risk Factors" pg 12-18
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