QUOTE AND NEWS
Motley Fool  Aug 12  Comment 
The Motley Fool’s Dylan Lewis and Chris Hill use HBO's Silicon Valley to walk through the process of how start-ups get funded.
Yahoo  Aug 12  Comment 
86% of American renters don’t have a sufficient credit score or income to afford to buy a home in their local market, according to a new study by Zillow. The new numbers from Zillow paint a bleak picture about the future of homeownership in the US.
Benzinga  Aug 10  Comment 
It’s been one year since Google surprised and confused the world by re-structuring and re-naming itself Alphabet Inc (NASDAQ: GOOGL). Google’s core Internet search and advertising business maintained the Google name, but it became just one of...
Motley Fool  Aug 5  Comment 
Excluding the temporary impact of a big legal settlement, the online real-estate company handily beat expectations in Q2.
SeekingAlpha  Aug 4  Comment 
Forbes  Aug 4  Comment 
Kate Hudson, Emma Roberts, Eva Longoria, Jessica Biel and Rihanna all began wearing Z Supply's clothing before it could be purchased online. It may seem hard to believe, but even in 2016, there remain a number of successful consumer brands that...
Motley Fool  Aug 3  Comment 
From a big settlement payment to changes in guidance, here's what investors need to know about the online real estate company this week.
Clusterstock  Aug 3  Comment 
A new analysis from Zillow has estimated that if sea levels rise as much as climate scientists predict they will by 2100, nearly 2 million coastal US homes would be lost. New research published in Nature found that sea levels could rise 6 feet...




 
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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