QUOTE AND NEWS
Clusterstock  Dec 19  Comment 
The value of all homes in the US increased by $1.7 trillion in 2014 to $27.5 trillion, according to Zillow. That's an appreciation of 6.7% year over year. Home prices increased 8% in 2013. "Looking at the total value of the U.S. housing...
Benzinga  Dec 18  Comment 
Zillow, Inc. (Nasdaq: Z) and Trulia, Inc. (NYSE: TRLA) today announced that Zillow shareholders and Trulia stockholders voted resoundingly to approve the previously announced definitive agreement, dated as of July 28, 2014, pursuant to which...
Clusterstock  Dec 17  Comment 
If you're looking to decorate your home with some Ikea basics — stop right now. Matching furniture and solid paints wall colors are apparently "soon-to-be forgotten" interior decorating fads, according to the interior design experts at Zillow...
guardian.co.uk  Dec 15  Comment 
Hip-hop stars are minting money not from music but from sidelines courtesy of backing from corporate America It was a balmy California evening as Dr Dre and Jimmy Iovine strolled along the Los Angeles beachfront. The rap music producer was keen...
Forbes  Dec 8  Comment 
There they are - the millennials – shopping in the stores of their choice and texting to their friends what is hot and what is not. The retailer has almost no sway in their merchandise preferences – much less color preferences. Trends in...
Benzinga  Dec 4  Comment 
Shares of Zillow Inc (NASDAQ: Z) were volatile late Thursday after the company released its November user data. Zillow’s report on unique monthly users showed a decline for November at 74,300,000 users, which continued a downward trend since...
Wall Street Journal  Dec 3  Comment 
A judge approved private-equity fund manager Z Capital Partners’ purchase of the Canyon Ranch Hotel & Spa in Miami Beach, which a Lehman Brothers affiliate put into bankruptcy protection earlier this year.
Forbes  Nov 30  Comment 
Top NFL agency Creative Artists Agency (CAA) recently fired one of its best football agents for cause and now must respond to a report than another lead agent may be leaving for Jay Z's Roc Nation Sports.




 
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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