Forbes  Aug 27  Comment 
Bill Gurley has been an A-list VC for 15 years, but he's in his prime right now. He's been at the table backing some of the biggest names in tech in the last 5 years. He took time to answer some of my questions recently about what he looks for in...
Motley Fool  Aug 26  Comment 
Zillow Inc. had an interesting conference call this summer, showing off and taking names.
Times Online  Aug 25  Comment 
Beyoncé batted away persistent rumours of marital strife as she shared a public kiss with her husband Jay Z on...
SeekingAlpha  Aug 22  Comment 
By Anthony Fernandez: The Zillow Home Value Index is a proprietary metric developed by Zillow to track home prices across the country. It is very similar to the Case-Shiller Index, but instead of following 10-20 cities the ZHVI follows the entire...
Motley Fool  Aug 21  Comment 
A million bucks isn't what it used to be, but 5 years after the real estate bubble you can still get a lot of house for that much in Phoenix, Arizona.
Motley Fool  Aug 20  Comment 
The two similar real estate portals are to combine into a single entity. Here are three important points about the merger.
BBC News  Aug 20  Comment 
Calvin Harris is still the world's top-earning DJ according to Forbes magazine.
Motley Fool  Aug 18  Comment 
Zillow Inc. stock keeps moving higher, but it doesn't have to end here.
SeekingAlpha  Aug 14  Comment 
By Stone Fox Capital: Earlier in the year, when all of the social media and high-flying stocks crashed, one notable stock soared to new all-time highs. The move by online real estate leader Zillow (NASDAQ:Z) was made despite valuation multiples...
Forbes  Aug 13  Comment 
The engineering wizards at Falcon Northwest have squeezed an Nvidia 12GB dual GPU Titan Z into the their micro-tower Tiki PC.


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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