QUOTE AND NEWS
Forbes  7 hrs ago  Comment 
"Y'all heard this one before?" Hit-Boy teases over the microphone on a recent Wednesday at Los Angeles' Low End Theory. It is just before midnight and the rapper/producer is whipping the crowd into a frenzy, playing the first 10 seconds of crowd...
Forbes  7 hrs ago  Comment 
Since 2007, FORBES has been ranking hip-hop’s top earners, charting stars like Drake, Kendrick Lamar and Nicki Minaj as they soar into hip-hop’s financial firmament. But who will be the next wave of up-and-coming acts to join the likes of Jay...
Wall Street Journal  Mar 31  Comment 
Tidal, a music-streaming service acquired by Jay Z this month, was relaunched with star-studded fanfare in New York. The service hopes to set itself apart from Spotify with exclusive music and a high-fidelity option.
New York Times  Mar 30  Comment 
In a business where artists seldom have direct control over how their work is consumed, musicians will be the majority owners of the company.
Financial Times  Mar 30  Comment 
Big recording stars given cash and stock in Tidal
Yahoo  Mar 30  Comment 
Pending home sales are up, and there's more to look forward to this year.
Benzinga  Mar 30  Comment 
In a report published Monday, SunTrust Robinson Humphrey analyst Bob Peck presented five key points Zillow Group Inc (NASDAQ: Z) needs to understand as its first quarter ends post-merger with Trulia. 1. For the first quarter, Peck estimated the...
USAToday.com  Mar 29  Comment 
Jay Z's blueprint for high-res music streaming service to be unveiled Monday
New York Times  Mar 28  Comment 
Born from the mid-1990s through the early 2000s, its members are independent, curious, mature, driven and ready to change the world.
Benzinga  Mar 26  Comment 
On March 26, The Benchmark Company released a bullish note, "ListHub Fears Overblown, Synergistic Opportunities Underappreciated," on online real estate portal Zillow Group Inc (NYSE: Z). The backdrop of the report is that a judge had ruled...




 
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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