QUOTE AND NEWS
Forbes  Sep 2  Comment 
The European Youth Trends Report explores both the cultural phenomenon of GenZ and youth, and as opportunities for business and entrepreneurship.
Motley Fool  Aug 31  Comment 
Short sellers who bet against the online real estate market place in recent months have profited handsomely, but the good times for these bears may be coming to end.
Forbes  Aug 31  Comment 
Netflix has revealed that some of its most high profile films are going to be disappearing from its US streaming service at the end of September. Among the vanishing titles are such blockbusters as Hunger Games: Catching Fire, World War Z and...
Forbes  Aug 27  Comment 
The last few years have seen a lot of low- to modestly-budgeted sci-fi films of strong quality -- Ex Machina, Upstream Color, Maggie, Lucy, Predestination, The One I Love, Safety Not Guaranteed, and Under the Skin for a few examples....
Cloud Computing  Aug 26  Comment 
The journey through IT transformation is an unstructured one, obviously. Fraught with perilous pitfalls and uncertainties for the faint hearted, the progression path toward decoupled, decentralized and essentially virtualized new IT frameworks is...
Forbes  Aug 25  Comment 
In this interview from 2010, the world’s most famous investor chats with Jay Z and Steve Forbes about talent, success and building moats. Read the full article on Forbes: http://onforb.es/QnFgkZ
Benzinga  Aug 25  Comment 
Shares of Zillow Group, Inc.- Class A (NASDAQ: ZG) have declined 79.7 percent, year to date, from their high of $125.42 in February 2015. Stephens’ John Campbell maintained an Overweight rating on Zillow, while lowering the price target from...
Yahoo  Aug 25  Comment 
U.S. home rents jumped in July as house prices showed signs of flagging. Real estate data firm Zillow said Tuesday that rents rose a seasonally adjusted 4.2 percent from a year ago. The higher rents suggest ...
Forbes  Aug 21  Comment 
Only four out of 10 first-time homebuyers in the U.S. are married, according to a new analysis by Zillow. Compare that to when a majority, or 52 percent, of first-time buyers were married back in the late 1980s.
Benzinga  Aug 20  Comment 
According to a new report out this week by Zillow, modern first-time homebuyers are waiting longer than they ever have. While the data indicates that Millennials are not rushing into buying their first house, many of them are also not waiting to...




 
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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