QUOTE AND NEWS
Forbes  Dec 7  Comment 
Imagine eBay, Snapchat, Youtube and coolhunters had a baby...that's YEAY and it's about to take over Gen Z's lives in the pursuit of fame, fortune and fun. This is mobile commerce (the tiny $360B industry) on crack...
Motley Fool  Dec 6  Comment 
Zillow is taking on a considerable amount of debt -- and Wall Street is excited about it.
New York Times  Dec 3  Comment 
When teenagers (and those of us who talk like them) call celebrities and their besties ‘Mom’ — explained.
DailyFinance  Dec 1  Comment 
Filed under: Entertainment, Celebrity News Days after being hospitalized following a string of erratic behavior, Kanye West has been released and is "getting some rest," People Magazine reported Wednesday. "He is home, getting some rest," the...
TechCrunch  Nov 30  Comment 
 Slowly but surely the Moto Z is getting an ecosystem. The promising handset launched with some solid specs and a handful of add-ons that made it the most fully formed modular handset to date — which, granted, isn’t saying a whole heck of a...
Clusterstock  Nov 29  Comment 
The balance of power in the US housing market will shift from sellers to buyers by 2019, according to experts surveyed by Zillow. The number of prospective homebuyers grew through the economic recovery, attracted by historically low mortgage...
TechCrunch  Nov 28  Comment 
 Make way for another startup that wants to shake up the world of music and audio technology. Devialet, the French developer of high-end speakers and the IP behind the sound systems that make them go boom, has raised €100 million ($106...
DailyFinance  Nov 23  Comment 
Filed under: Finance, Home If you're feeling a little tight on space with the upcoming holiday, these luxury homes are sure to get you dreaming about more square footage and everything you can do with it. We pulled the most expensive...




 
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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