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TheStreet.com  Jun 25  Comment 
NEW YORK (TheStreet) -- Trying to decide whether to buy a home or rent is one of the biggest financial decisions you can make. In two-thirds of country's major metro areas, buying a home makes more sense than renting, even if the homebuyer stays...
Forbes  Jun 25  Comment 
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Forbes  Jun 25  Comment 
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TheStreet.com  Jun 24  Comment 
NEW YORK (TheStreet) -- Trying to decide whether to buy a home or rent one is a big decision. In two-thirds of country's major metro areas, buying a home makes more sense than renting, even if the homebuyer stays in the home for just two years. ...
New York Times  Jun 23  Comment 
Peter Tonstad, who was installed as interim chief executive in April after the departure of Tidal’s last chief, has left after two months on the job.
TheStreet.com  Jun 23  Comment 
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Clusterstock  Jun 18  Comment 
From "Leave It to Beaver" to "Modern Family," for decades Americans have seen an image of home ownership that typically consists of a yard, a white picket fence, and friendly neighbors. What those shows leave out is the thousands of dollars in...
The Hindu Business Line  Jun 18  Comment 
Raj Sarkar, Vice-President, Marketing, Ford India
Benzinga  Jun 17  Comment 
The New York Times recently published a piece that highlighted how Twitter Inc (NYSE: TWTR)’s new interim CEO, Jack Dorsey, is trying to follow in the footstep of Steve Jobs by being CEO of two high-profile tech companies (Twitter and Square) at...




 
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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