QUOTE AND NEWS
Automotive World  Jun 22  Comment 
This week, through June 26th, Nissan helps celebrate all things Nissan Z® at the 30th annual International Z Car Convention (ZCON) in Austin, Texas. Hosted by the Z Car Club Association, the annual event hosts Datsun and Nissan Z® car...
Forbes  Jun 20  Comment 
Jay Z has achieved success in music, business and life and his lyrics can provide inspiration for people in business everywhere.
Forbes  Jun 20  Comment 
As digital natives, Gen Z's consume media in a different way from other generations.
Motley Fool  Jun 19  Comment 
The company's latest pilot program is ruffling a lot of feathers, but disruption is the name of the game.
CNNMoney.com  Jun 19  Comment 
Beyoncé isn't the only one who can deliver.
Japan Today  Jun 18  Comment 
Are Beyonce and Jay Z parents again? Mum's the word from the parents and their reps, even though reports are flying that the much-anticipated twins have made their…
Forbes  Jun 16  Comment 
Jay Z, the first rapper inducted into the Songwriters Hall of Fame, was joined by Chicago, Jam & Lewis, Max Martin and Babyface.
Forbes  Jun 16  Comment 
The trio will also be headlining their own tour this fall.
Motley Fool  Jun 15  Comment 
The online real estate leader started 2017 on a high note. Here's what investors need to know now.




 
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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