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Zillow Swings to Profit on Revenue Surge
11 Feb
Summary
- Zillow reported a $3 million profit, a turnaround from a $52 million loss.
- Revenue grew 18% to $654 million, exceeding analyst expectations.
- First-quarter revenue is projected between $700 million and $710 million.
Zillow Group has announced a substantial financial recovery, swinging to a fourth-quarter profit of $3 million. This marks a significant improvement from the $52 million loss recorded during the same period in the previous year. The positive earnings are attributed to a robust increase in revenue.
Overall revenue climbed by 18% to $654 million, surpassing analyst expectations of $650.4 million. This growth was fueled by gains in both the company's 'for sale' and rentals divisions. The 'for sale' segment saw revenue rise 11% to $475 million, bolstered by its agent software offerings and new construction marketplace.
Revenue from rentals experienced a significant jump of 45%, reaching $168 million, largely due to increased multifamily revenue. Zillow's digital presence also expanded, with traffic to its apps and sites increasing by 8% to 221 million average monthly unique users.
For the upcoming first quarter, Zillow projects revenue in the range of $700 million to $710 million, exceeding the $691.1 million forecast by analysts. The company anticipates continued growth in both its 'for sale' and rentals segments, though it expects challenging housing market conditions to persist.
