QUOTE AND NEWS
DailyFinance  3 hrs ago  Comment 
Filed under: News, Animals, Science & Tech Flamingos are attention-getting birds for many reasons, one being their truly impressive ability to stand on one leg and even catch some Z's while doing so. Read more...   Permalink | Email...
TechCrunch  May 26  Comment 
 Share economy startups which allow someone to ‘share’ their labour or skills have proliferated over the last few years. Even simple ‘share your skills’ communities with no commercial model have appeared such as Impossible. Now these...
Benzinga  May 26  Comment 
Have you ever looked up home values on Zillow Group, Inc. (NASDAQ: Z) and noticed they were much higher or lower than anticipated? You are not alone. The lack of accuracy from Zillow’s "Zestimates" tool, which quickly appraises the value of...
Clusterstock  May 24  Comment 
Beyoncé and Jay Z are officially a billion-dollar couple after Forbes put their combined worth at $1.16 billion  this week.  The entertainment tycoons not only earn millions from music and tours, but they also rake in cash from numerous side...
MarketWatch  May 24  Comment 
The real estate data web site wants to crowdsource a better measurement tool - and will pay a handsome reward for the best model
New York Times  May 24  Comment 
The overall accuracy of Zillow’s estimates has gotten better, and it’s now announcing a $1 million award to sharpen the company’s algorithm further.
MarketWatch  May 22  Comment 
Suburban Chicago home builders filed legal action last week against the real estate marketing company Zillow, whose at-your-fingertips property-value approximations are misleading home buyers with lowball figures that roil sellers, the suit claims.
The Economic Times  May 22  Comment 
“We plan to come out with a package for the knitwear industry in a month or two,” Irani said while briefing the media on three years of initiatives and achievements of the textiles ministry.




 
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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