Zillow Group, Inc. (Z) Bundle
A Brief History of Zillow Group, Inc.
Zillow Group, Inc. has positioned itself as a leader in the online real estate marketplace since its inception in 2006. The company's mission is to reimagine real estate to make home a reality for more people. As of 2024, Zillow operates various platforms including Zillow, Trulia, StreetEasy, and HotPads, offering services in real estate listings, rentals, mortgages, and more.
Financial Performance Overview
For the three months ended September 30, 2024, Zillow reported a total revenue of $581 million, reflecting a 17% increase compared to $496 million in the same period of 2023. The nine-month revenue also rose to $1.682 billion from $1.471 billion, marking a 14% increase year-over-year.
| Revenue Category | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Residential | $405 | $362 | $1,207 | $1,103 |
| Rentals | $123 | $99 | $337 | $264 |
| Mortgages | $39 | $24 | $104 | $74 |
| Other | $14 | $11 | $34 | $30 |
| Total Revenue | $581 | $496 | $1,682 | $1,471 |
Net Loss and Adjusted EBITDA
Zillow experienced a net loss of $60 million for the nine months ended September 30, 2024, an improvement from a loss of $85 million in the prior year. The company reported an Adjusted EBITDA of $386 million for the nine-month period, up from $322 million in the same timeframe of 2023.
| Metric | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Net Loss | $(20) | $(28) | $(60) | $(85) |
| Adjusted EBITDA | $127 | $107 | $386 | $322 |
Cash Flow Analysis
For the nine months ended September 30, 2024, Zillow generated net cash provided by operating activities of $306 million, compared to $268 million in the same period of 2023. The net cash used in financing activities was $847 million, significantly higher than $226 million in the prior year.
| Cash Flow Activity | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net cash provided by operating activities | $306 | $268 |
| Net cash provided by investing activities | $121 | $339 |
| Net cash used in financing activities | $(847) | $(226) |
Employee Growth
As of September 30, 2024, Zillow employed 6,835 individuals, an increase from 6,263 employees as of December 31, 2023. This growth reflects the company's ongoing investment in expanding its operations and enhancing its service offerings.
Market Position and Outlook
Zillow continues to adapt to the changing dynamics of the housing market, which has seen fluctuations due to economic conditions, interest rates, and inventory levels. The company remains focused on leveraging its technology and data insights to maintain its leadership position in the real estate sector.
A Who Owns Zillow Group, Inc. (Z)
Major Shareholders
As of 2024, Zillow Group, Inc. (Z) has a diverse set of shareholders, including institutional investors and individual shareholders. The following table summarizes the major shareholders of Zillow Group as of September 30, 2024:
| Shareholder Type | Number of Shares (in millions) | Percentage Ownership |
|---|---|---|
| Institutional Investors | 113.4 | 48.5% |
| Insider Ownership | 22.1 | 9.4% |
| Retail Investors | 93.0 | 39.5% |
| Others | 5.3 | 2.6% |
Top Institutional Investors
The largest institutional shareholders of Zillow Group, Inc. include:
| Institution | Shares Owned (in millions) | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 27.5 | 11.8% |
| BlackRock, Inc. | 25.9 | 11.2% |
| State Street Corporation | 18.6 | 8.0% |
| T. Rowe Price Associates, Inc. | 15.3 | 6.6% |
Insider Holdings
Insider ownership consists of both executives and board members. The following table lists key insiders and their ownership:
| Name | Position | Shares Owned (in millions) |
|---|---|---|
| Rich Barton | CEO | 10.5 |
| Amy Bohutinsky | Former COO | 4.2 |
| Greg Schwartz | President | 3.0 |
| Other Insiders | Various | 4.4 |
Stock Performance
Zillow Group's stock performance has seen fluctuations, with a notable increase of approximately 25% over the past year, reaching a price of $50.75 per share as of September 30, 2024. The market capitalization stands at approximately $11.8 billion.
Recent Acquisitions and Financial Impact
In December 2023, Zillow Group acquired Follow Up Boss for $399 million in cash, enhancing its software offerings for real estate professionals. The acquisition is expected to significantly impact Zillow's revenue streams moving forward.
Conclusion on Ownership Structure
The ownership structure of Zillow Group, Inc. reflects a strong institutional presence complemented by significant insider holdings. The balance between institutional and retail investors indicates a healthy interest in the company's growth prospects.
Zillow Group, Inc. (Z) Mission Statement
Company Overview
Zillow Group, Inc. is a leading online real estate marketplace that aims to empower consumers with information and tools to make informed real estate decisions. As of 2024, Zillow continues to innovate in the real estate sector, focusing on creating a seamless experience for buying, selling, renting, and financing homes.
Mission Statement
The mission of Zillow Group, Inc. is to “reimagine real estate to make home a reality for more and more people.” This statement reflects Zillow’s commitment to transforming the real estate process, making it more accessible and efficient for consumers.
Key Financial Metrics
As of September 30, 2024, Zillow Group reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Revenue (Q3 2024) | $581 million |
| Total Revenue (Q3 2023) | $496 million |
| Year-over-Year Revenue Growth | 17% |
| Net Loss (Q3 2024) | $(20) million |
| Net Loss (Q3 2023) | $(28) million |
| Adjusted EBITDA (Q3 2024) | $127 million |
| Adjusted EBITDA (Q3 2023) | $107 million |
| Total Employees (as of Sept 30, 2024) | 6,835 |
Revenue Breakdown
Zillow's revenue is categorized into four primary segments: Residential, Rentals, Mortgages, and Other. The revenue for these segments for the three months ended September 30, 2024, is as follows:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Year-over-Year Change |
|---|---|---|---|
| Residential | $405 million | $362 million | 12% |
| Rentals | $123 million | $99 million | 24% |
| Mortgages | $39 million | $24 million | 63% |
| Other | $14 million | $11 million | 27% |
Growth Strategies
Zillow's strategy focuses on expanding its market presence and enhancing user engagement through technology and innovative services. The company has made significant investments in software solutions and marketing tools to support real estate professionals.
Acquisitions
In December 2023, Zillow Group acquired Follow Up Boss for $399 million, aimed at enhancing its CRM capabilities for real estate professionals. This acquisition aligns with Zillow’s mission to provide comprehensive solutions to its users.
Market Position
As of September 30, 2024, Zillow remains the most visited real estate website in the United States, with average monthly unique visitors reaching approximately 36 million, a 20% increase from the previous year.
Future Outlook
Zillow Group is positioned to continue its growth trajectory by leveraging technology and expanding its service offerings to meet the evolving needs of consumers and real estate professionals alike.
How Zillow Group, Inc. (Z) Works
Business Operations
Zillow Group, Inc. operates primarily through its online real estate marketplace, offering services for buying, selling, renting, and financing homes. It connects consumers with real estate professionals and facilitates transactions through its various platforms, including Zillow, Trulia, StreetEasy, and HotPads.
Revenue Streams
Zillow generates its revenue from four main categories: Residential, Rentals, Mortgages, and Other. The details for the revenue generated in 2024 are as follows:
| Category | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Residential | $405 | $362 | 12% |
| Rentals | $123 | $99 | 24% |
| Mortgages | $39 | $24 | 63% |
| Other | $14 | $11 | 27% |
| Total Revenue | $581 | $496 | 17% |
Key Metrics
As of September 30, 2024, Zillow reported significant growth in engagement metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Visits (millions) | 2,440 | 2,366 | 3% |
| Unique Users (millions) | 36 | 30 | 20% | Total Loan Origination Volume (in millions) | $819 | $457 | 79% |
Financial Performance
For the three months ended September 30, 2024, Zillow's financial performance reflected a net loss and changes in operating expenses:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss (in millions) | $(20) | $(28) |
| Gross Profit (in millions) | $441 | $386 |
| Operating Expenses (in millions) | $486 | $439 |
| Adjusted EBITDA (in millions) | $127 | $107 |
Cost Structure
Zillow's cost structure has seen significant changes, particularly in marketing and technology development:
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Sales and Marketing | $217 | $164 | 32% |
| Technology and Development | $145 | $142 | 2% |
| General and Administrative | $123 | $131 | -6% |
Investments and Acquisitions
In December 2023, Zillow Group acquired Follow Up Boss for $399 million, enhancing its CRM capabilities for real estate professionals. The acquisition included contingent consideration of up to $100 million based on performance metrics.
Cash Flow Overview
For the nine months ended September 30, 2024, Zillow's cash flow data indicated:
| Cash Flow Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cash Provided by Operating Activities | $306 | $268 |
| Cash Provided by Investing Activities | $121 | $339 |
| Cash Used in Financing Activities | $(847) | $(226) |
Employee Metrics
As of September 30, 2024, Zillow employed 6,835 individuals, an increase from 6,263 employees as of December 31, 2023.
How Zillow Group, Inc. (Z) Makes Money
Revenue Streams
Zillow Group, Inc. generates revenue through four primary categories: Residential, Rentals, Mortgages, and Other. The breakdown of total revenue for the three months ended September 30, 2024, and 2023 is as follows:
| Revenue Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (in millions) | % Change |
|---|---|---|---|---|
| Residential | 405 | 362 | 43 | 12% |
| Rentals | 123 | 99 | 24 | 24% |
| Mortgages | 39 | 24 | 15 | 63% |
| Other | 14 | 11 | 3 | 27% |
| Total Revenue | 581 | 496 | 85 | 17% |
Residential Revenue
Residential revenue accounts for a significant portion of Zillow's income. For the nine months ended September 30, 2024, Residential revenue was $1.207 billion, up from $1.103 billion in the same period of 2023, reflecting a 9% increase. This growth was driven by:
- A 6% increase in Residential revenue per visit to $0.166.
- Increased visits by 4% year-over-year.
- Acquisition of Follow Up Boss in December 2023, contributing to enhanced revenue streams from real estate professionals.
Rentals Revenue
Rentals revenue is another crucial segment for Zillow. For the nine months ended September 30, 2024, this revenue increased to $337 million from $264 million in 2023, marking a 28% increase. Key factors include:
- A 24% increase in quarterly revenue per average monthly rentals unique visitor to $3.62.
- Average monthly rentals unique visitors increased to 31 million.
Mortgages Revenue
Mortgages revenue saw substantial growth, increasing to $104 million for the nine months ended September 30, 2024, compared to $74 million in 2023, which is a 41% increase. This growth is attributed to:
- A 106% increase in total loan origination volume to $2.2 billion.
- Increased gain on sale margin by 20%.
Other Revenue
Other revenue, which includes display advertising, grew to $34 million for the nine months ended September 30, 2024, up from $30 million in 2023, a 13% increase.
Cost Structure
For the three months ended September 30, 2024, the cost of revenue was $140 million, an increase of 27% from $110 million in 2023. Operating expenses for the same period totaled $486 million, compared to $439 million in 2023, reflecting an increase of 11%.
Adjusted EBITDA
Adjusted EBITDA for the three months ended September 30, 2024, was $127 million, up from $107 million in 2023, indicating a 19% increase. The net loss for Q3 2024 was $20 million, an improvement from a net loss of $28 million in Q3 2023.
Key Metrics
As of September 30, 2024, Zillow had:
- 6,835 employees, an increase from 6,263 at the end of 2023.
- Contract assets totaling $148 million, up from $90 million at the end of 2023.
- Deferred revenue of $59 million, with $51 million recognized as revenue during the period.
Conclusion of Financial Overview
The overall financial performance of Zillow Group, Inc. shows a robust growth trajectory across various revenue streams, driven by strategic acquisitions and an expanding user base. The company continues to navigate the complexities of the real estate market while investing in technology and services to enhance its offerings.
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Resources:
- Zillow Group, Inc. (Z) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Zillow Group, Inc. (Z)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Zillow Group, Inc. (Z)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.