Forbes  May 6  Comment 
Shawn “Jay Z” Carter places third on this year’s Forbes Five–a ranking of the world’s wealthiest hip-hop artists that appeared in the May 31st, 2016 issue of FORBES. All five have had successful careers in music, but for most, the bulk...
Clusterstock  May 5  Comment 
More millennials can't afford to move out of home than at any other time in the past decade. A Zillow analysis published Thursday showed that the share of people ages 24 to 34 living with their parents had risen every year since 2005, from 13%...
Motley Fool  May 4  Comment 
The online real estate leader rose after posting impressive first-quarter 2016 results.
Benzinga  May 4  Comment 
Glaukos Corp (NYSE: GKOS) surged 22.04 percent to $24.25. The volume of Glaukos shares traded was 2209 percent higher than normal. Glaukos reported better-than-expected Q1 results and raised its revenue forecast for FY16. Zillow Group, Inc.-...
Benzinga  May 4  Comment 
Zillow Group-C (NASDAQ: Z) missed earnings and revenue for the quarter, but raised next-quarter guidance. Stock ripped 12% on Tuesday. A few days ago, Benchmark's Dan Kurnos said the key with the company long-term is that it monetizes its...
Benzinga  May 4  Comment 
Gainers Zillow Group, Inc.- Class C (NASDAQ: Z) rose 13.21 percent to $28.37 in pre-market trading. Zillow reported a wider-than-expected loss for its first quarter, but the company exceeded analysts’ sales estimates. The company also...
Benzinga  May 4  Comment 
Zillow Group Inc (NYSE: Z) reported mixed 1Q16 results, with a revenue beat and an EBITDA shortfall. Benchmark's Daniel L. Kurnos maintained a Buy rating for the company, with a price target of $34. The analyst commented that Zillow “still has...
Wall Street Journal  May 3  Comment 
Zillow Group Inc. narrowed its loss for the first quarter as the online real-estate company’s revenue climbed amid a growing user base.


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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