QUOTE AND NEWS
TheStreet.com  Jan 23  Comment 
SAN FRANCISCO ( TheStreet) --  Zillow and its rival Trulia surged Friday after reports the Federal Trade Commission is poised to approve their merger. Pandora Media soared, too, after it announced a live streaming deal with singer...
Motley Fool  Jan 23  Comment 
Zillow Pro for Brokers just exceeded 5,000 partners. Here's what that means.
Forbes  Jan 20  Comment 
Mr Z looked like he was going to give his owner a second Derby prep win in a month, but an erratic run cost him the victory.
Forbes  Jan 16  Comment 
In the wake of hugely successful Steam games from small developers in the zombie survival genre, Sony has tried their own spin on the "Day Z" model with "H1Z1."
Motley Fool  Jan 15  Comment 
Zillow's experience for agents and MLSs is about to get a whole lot better.
Cloud Computing  Jan 15  Comment 
From Baby Boomers to Gen X, Y, & Z, there are certain characteristics that define, at least according to demographers and historians, each generation. Generation X, specifically, might also remember a Rush song called The Analog Kid. While not as...
Forbes  Jan 13  Comment 
The z System’s architectural revisions address directly three areas of increased importance: mobile data, analytics, and cloud infrastructure.
Channel News Asia  Jan 13  Comment 
Generation Z workers, aged 14 to 19, are believed to be essential in driving future innovation, according to a survey by HR firm Randstad.




 
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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