QUOTE AND NEWS
Clusterstock  Apr 14  Comment 
Home shoppers might have an especially hard time finding the house of their dreams this spring.  According to real-estate site Zillow, there are 3% fewer homes on the market than there were a year ago. The largest drop in inventory has...
MarketWatch  Apr 10  Comment 
Rapper and entrepreneur Jay Z — who also owns the streaming music service Tidal — has pulled the bulk of his musical catalog from rival Spotify AB.
Forbes  Apr 9  Comment 
Sorry Jay Z-lovers, you won't be able to listen to some of your favorite songs and albums on Spotify anytime soon.
Motley Fool  Apr 6  Comment 
Here's what may have recently hurt Zillow's share price, and why you should ignore it.
DailyFinance  Apr 6  Comment 
Filed under: Entertainment, Celebrity, Celebrity News Hey there, Mr. Producer! Brad Pitt made a rare appearance on Wednesday night at The Lost City of Z premiere in Hollywood. WATCH: Brad Pitt Can Barely Smile as General Glen McMahon in 'War...
DailyFinance  Mar 31  Comment 
Filed under: Finance, Home, Real Estate Ron Howard's Hollywood career pretty much covers it all. You may know him from his early acting days - most notably his roles on "Happy Days" and "The Andy Griffith Show" - or his more recent success as...
Motley Fool  Mar 31  Comment 
Homeownership has its benefits, but they come at a cost. Here are some key points to consider when making your decision.
Forbes  Mar 30  Comment 
Revestor CEO Bill Lyons discusses the vision behind his company, disruptive the real estate industry, and plans for taking over a rapidly evolving tech industry.
guardian.co.uk  Mar 28  Comment 
Not even the weather could stop the family-friendly fairytale, but the outlook was less bright for CHiPs, The Lost City of Z and Jake Gyllenhaal sci-fi Life A sunny weekend and a dearth of strong new releases should have created a tough...




 
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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