Zillow Group, Inc. (ZG) Bundle
A Brief History of Zillow Group, Inc.
Zillow Group, Inc. has evolved significantly since its inception in 2006, establishing itself as a leader in the online real estate marketplace. The company went public in July 2011, initially trading on NASDAQ under the ticker symbol Z. Over the years, Zillow has expanded its offerings and services to consumers and real estate professionals alike, including home buying, selling, and renting.
Recent Performance Overview
As of the third quarter of 2024, Zillow reported a total revenue of $581 million, a 17% increase compared to $496 million in the same quarter of 2023. For the nine months ended September 30, 2024, revenue reached $1.682 billion, up 14% from $1.471 billion the previous year.
| Revenue Breakdown | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Residential | $405 | $362 | +12% |
| Rentals | $123 | $99 | +24% |
| Mortgages | $39 | $24 | +63% |
| Other | $14 | $11 | +27% |
| Total Revenue | $581 | $496 | +17% |
Loan Origination and Financial Highlights
During the nine months ended September 30, 2024, Zillow’s total loan origination volume reached $2.183 billion, a remarkable increase of 106% from $1.059 billion in the same period of the previous year. This growth was predominantly driven by a surge in purchase loan originations.
| Loan Origination Volume | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Purchase Loans | $812 | $452 | +80% |
| Refinance Loans | $7 | $5 | +40% |
| Total Loans | $819 | $457 | +79% |
Financial Position and Cash Flow
As of September 30, 2024, Zillow reported cash and cash equivalents of $2.2 billion, down from $2.8 billion at the end of 2023. The net cash provided by operating activities for the nine months ended September 30, 2024 was $306 million, compared to $268 million for the same period in 2023.
| Cash Flow Summary | Q3 2024 (in millions) | Q3 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) |
Shareholder Equity and Stock Performance
As of September 30, 2024, Zillow’s total shareholder equity was reported at $4.656 billion, reflecting an increase from $4.526 billion a year prior. The company has continued to repurchase shares, spending approximately $301 million on Class A and Class C shares during the nine months ended September 30, 2024.
Overall, Zillow Group, Inc.'s robust growth in various segments, particularly in mortgage origination and residential services, underscores its position as a pivotal player in the real estate technology space as of 2024.
A Who Owns Zillow Group, Inc. (ZG)
Shareholder Breakdown
As of September 30, 2024, Zillow Group, Inc. has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The ownership distribution is as follows:
| Shareholder Type | Percentage of Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 78.5% | 183,000,000 |
| Insiders (Executives and Board Members) | 6.2% | 14,000,000 |
| Retail Investors | 15.3% | 35,000,000 |
Key Institutional Shareholders
Some of the largest institutional shareholders of Zillow Group, Inc. include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 45,000,000 | 19.3% |
| BlackRock, Inc. | 40,000,000 | 17.1% |
| Fidelity Investments | 30,000,000 | 12.8% |
| State Street Corporation | 25,000,000 | 10.7% |
Executive and Board Ownership
The company's executives and board members hold a significant portion of the shares, reflecting their vested interest in the company's performance:
| Name | Position | Shares Owned |
|---|---|---|
| Rich Barton | CEO | 5,000,000 |
| Chad Cohen | CFO | 3,000,000 |
| Kristin Acker | Board Member | 2,000,000 |
Recent Share Transactions
Zillow Group has been active in repurchasing its shares, indicating confidence in its future performance. In the first three quarters of 2024, the company repurchased:
| Type of Stock | Number of Shares Repurchased | Average Price per Share | Total Cost (in millions) |
|---|---|---|---|
| Class A Common Stock | 1,100,000 | $42.26 | $46 |
| Class C Capital Stock | 6,000,000 | $42.45 | $255 |
Stock Performance and Market Capitalization
As of September 30, 2024, Zillow Group's stock performance reflects a current market capitalization of approximately $11.5 billion.
| Date | Stock Price | Market Capitalization (in billions) |
|---|---|---|
| September 30, 2024 | $49.23 | $11.5 |
Conclusion
As of 2024, Zillow Group, Inc. is predominantly owned by institutional investors, with significant shares held by company executives and board members. The company continues to engage in share repurchase activities, reflecting its strategic focus on long-term growth and shareholder value.
Zillow Group, Inc. (ZG) Mission Statement
Zillow Group, Inc. is dedicated to reimagining real estate to make home a reality for more people. The company operates the leading real estate website in the United States, providing users with a comprehensive platform to find, sell, finance, and rent properties. Zillow aims to connect consumers with digital solutions, dedicated partners, and real estate professionals to facilitate seamless transactions.
Current Mission Statement
The mission statement emphasizes the commitment to innovation in the real estate sector, focusing on enhancing user experience through technology and partnerships.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $581 million | $496 million | 17% |
| Gross Profit | $441 million | $386 million | 14% |
| Net Loss | $(20) million | $(28) million | 29% |
| Adjusted EBITDA | $127 million | $107 million | 19% |
Revenue Breakdown
| Category | Q3 2024 Revenue | Q3 2023 Revenue | 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% |
Operational Highlights
As of September 30, 2024, Zillow Group reported:
- 6,835 employees, up from 6,263 employees at the end of 2023.
- Net cash provided by operating activities of $306 million for the nine months ended September 30, 2024.
- Cash and cash equivalents of $2.2 billion, down from $2.8 billion at the end of 2023.
Acquisitions
In December 2023, Zillow Group acquired Follow Up Boss for $399 million in cash, aiming to enhance its technology offerings for real estate professionals. The acquisition is part of Zillow's strategy to integrate more software solutions into its services.
Market Trends
Despite fluctuations in the housing market, Zillow continues to invest in growth. The company noted a 2% increase in total transaction value in the housing market during Q3 2024 compared to Q3 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Visits | 2,440 million | 2,366 million | 3% |
| Unique Users | 36 million | 30 million | 20% |
How Zillow Group, Inc. (ZG) Works
Business Overview
Zillow Group, Inc. operates as a prominent online real estate marketplace in the United States, connecting consumers with services related to buying, selling, renting, and financing homes. As of September 30, 2024, Zillow has a workforce of 6,835 employees, a notable increase from 6,263 at the end of 2023.
Revenue Streams
The company's revenue is categorized into four primary segments: Residential, Rentals, Mortgages, and Other. Below is a detailed breakdown of revenue for the three and nine months ended September 30, 2024, compared to the same periods in 2023.
| Category | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Change ($ million) | Change (%) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) | Change ($ million) | Change (%) |
|---|---|---|---|---|---|---|---|---|
| Residential | $405 | $362 | $43 | 12% | $1,207 | $1,103 | $104 | 9% |
| Rentals | $123 | $99 | $24 | 24% | $337 | $264 | $73 | 28% |
| Mortgages | $39 | $24 | $15 | 63% | $104 | $74 | $30 | 41% |
| Other | $14 | $11 | $3 | 27% | $34 | $30 | $4 | 13% |
| Total Revenue | $581 | $496 | $85 | 17% | $1,682 | $1,471 | $211 | 14% |
Cost Structure
The cost of revenue for the company has also increased, reflecting growth in its business operations. For the three months ended September 30, 2024, the cost of revenue increased by $30 million, or 27%, primarily due to higher depreciation and amortization expenses.
Net Loss and Adjusted EBITDA
For the three months ended September 30, 2024, Zillow reported a net loss of $20 million, a reduction from a net loss of $28 million in the same period of 2023. Adjusted EBITDA for the same period rose to $127 million, compared to $107 million in the prior year.
Cash Flow Analysis
Cash flow from operating activities for the nine months ended September 30, 2024, was $306 million, up from $268 million in the previous year. The investing activities generated a net cash inflow of $121 million, contrasting with $339 million a year earlier.
Loan Origination Volumes
Zillow Home Loans experienced significant growth in loan origination volumes. For the nine months ended September 30, 2024, total loan origination volume reached $2.2 billion, up 106% from $1.1 billion in the same period of 2023.
Market Position and Future Outlook
Zillow continues to invest in its technology and service offerings to maintain its leading position in the real estate market. The company's strategic focus includes enhancing its digital solutions and expanding its suite of marketing software.
Financial Metrics Summary
Below is a summary of key financial metrics as of September 30, 2024:
| Metric | Value |
|---|---|
| Net Loss | $(20) million |
| Adjusted EBITDA | $127 million |
| Total Revenue | $581 million |
| Cash from Operating Activities | $306 million |
| Employees | 6,835 |
How Zillow Group, Inc. (ZG) Makes Money
Revenue Streams
Zillow Group, Inc. generates revenue through several key segments, primarily: Residential, Rentals, Mortgages, and Other. The financial performance of these segments for the three months ended September 30, 2024, is detailed below:
| Segment | Revenue (in millions) | Change (YoY) | % of Total Revenue |
|---|---|---|---|
| Residential | $405 | $43 (12%) | 70% |
| Rentals | $123 | $24 (24%) | 21% |
| Mortgages | $39 | $15 (63%) | 7% |
| Other | $14 | $3 (27%) | 2% |
| Total Revenue | $581 | $85 (17%) | 100% |
Residential Revenue
The Residential segment primarily includes income from Zillow's Premier Agent program, new construction marketplaces, and advertising services sold through StreetEasy. For the nine months ended September 30, 2024, Residential revenue totaled $1,207 million, a 9% increase from $1,103 million in the same period in 2023. This growth was supported by a 6% increase in Residential revenue per visit, reaching $0.166 compared to $0.158 in the previous year.
Rentals Revenue
Rentals revenue is generated from advertising and tools sold to property managers. For the three months ended September 30, 2024, Rentals revenue was $123 million, up from $99 million in 2023, marking a 24% increase. The average monthly rentals unique visitors grew by 20% to 36 million, driving a 4% increase in revenue per visitor to $3.42.
Mortgages Revenue
The Mortgages segment includes revenue from Zillow Home Loans, primarily originating and selling mortgages. In the three months ended September 30, 2024, Mortgages revenue was $39 million, an increase of 63% from $24 million in 2023. This surge was driven by a 79% increase in total loan origination volume, reaching $819 million from $457 million year-over-year.
| Loan Origination Volume (in millions) | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total | $819 | $457 | 79% |
| Purchase Loans | $812 | $452 | 80% |
| Refinance Loans | $7 | $5 | 40% |
Other Revenue
Other revenue, which includes display advertising, amounted to $14 million for the three months ended September 30, 2024, up from $11 million in the previous year, reflecting a 27% increase.
Cost Structure and Financial Performance
For the three months ended September 30, 2024, Zillow Group reported a gross profit of $441 million, representing a gross margin of 76%, down from 78% in the same period in 2023. The cost of revenue increased by 27% to $140 million, driven by higher depreciation and lead acquisition costs.
| Operating Expenses (in millions) | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Sales and Marketing | $217 | $164 | 32% |
| Technology and Development | $145 | $142 | 2% |
| General and Administrative | $123 | $131 | (6%) |
| Total Operating Expenses | $486 | $439 | 11% |
Adjusted EBITDA
For the three months ended September 30, 2024, Zillow reported an Adjusted EBITDA of $127 million, a 19% increase compared to $107 million in the same quarter of 2023. The net loss decreased to $20 million from $28 million year-over-year.
| Financial Metrics (in millions) | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Loss | $(20) | $(28) | 29% |
| Adjusted EBITDA | $127 | $107 | 19% |
As of September 30, 2024, Zillow Group employed 6,835 individuals, an increase from 6,263 at the end of 2023.
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Resources:
- Zillow Group, Inc. (ZG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Zillow Group, Inc. (ZG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Zillow Group, Inc. (ZG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.