Zillow Group, Inc. (ZG): history, ownership, mission, how it works & makes money

A Brief History of Zillow Group, Inc.

Zillow Group, Inc. has undergone significant transformations since its inception in 2006, evolving from a real estate listing site into a comprehensive technology-driven platform that serves various aspects of the housing market. As of June 30, 2024, Zillow reported total revenue of $572 million for the second quarter, marking a 13% increase from $506 million in the same quarter of the previous year.

Financial Performance Overview

The financial performance for the first half of 2024 reflects a strong recovery and growth trajectory. For the six months ended June 30, 2024, Zillow generated total revenue of $1.1 billion, compared to $975 million for the same period in 2023, representing a 13% increase. This growth has been driven by increases in various revenue segments, detailed in the table below:

Net Loss and Earnings

Despite the revenue growth, Zillow reported a net loss of $17 million for Q2 2024, which is an improvement from a net loss of $35 million in Q2 2023. The net loss per share for the second quarter was $0.07, compared to $0.15 in the same period last year. For the first half of 2024, the net loss totaled $40 million, down from $57 million in the previous year.

Loan Origination and Market Presence

Zillow Home Loans has also seen a significant increase in loan origination volume. For the three months ended June 30, 2024, the total loan origination volume reached $759 million, a 123% increase compared to $340 million in Q2 2023. The breakdown of loan origination volume by purpose for the same period is as follows:

Market Strategy and Acquisitions

In December 2023, Zillow acquired Follow Up Boss for $399 million, aiming to enhance its customer relationship management capabilities. This acquisition aligns with Zillow's strategy to integrate more software solutions into its offerings, thus improving user engagement and market penetration.

As of June 30, 2024, Zillow's total liabilities stood at $1.7 billion, with total shareholders' equity reported at $4.5 billion, reflecting a stable financial position. The company continues to navigate a challenging market landscape, characterized by fluctuating interest rates and evolving consumer demands.

Key Metrics and Engagement

For Q2 2024, Zillow reported 2.495 billion visits across its platforms, reflecting a 4% increase year-over-year. This metric underscores Zillow’s ongoing efforts to enhance user engagement through its diverse suite of real estate services.

A Who Owns Zillow Group, Inc. (ZG)

Ownership Structure

As of 2024, Zillow Group, Inc. (ZG) has a diverse ownership structure consisting of institutional investors, individual shareholders, and insiders. The following table outlines the major shareholders and their respective ownership percentages:

Stock Performance

As of June 30, 2024, Zillow Group had a market capitalization of approximately $4.5 billion with a stock price of $19.50 per share. The stock has shown a year-to-date performance increase of 12%.

Insider Ownership

Insider ownership is significant, with key executives holding approximately 3.5% of the total shares. This includes stock options and restricted stock units that are part of their compensation packages. The following table highlights the insider ownership:

Institutional Investors

Institutional investors play a crucial role in Zillow's ownership landscape, holding over 66% of the company's shares. The following table summarizes the top institutional investors:

Recent Changes in Ownership

In late 2023, Zillow completed several acquisitions, which may have influenced its ownership structure. Notably, Zillow acquired Follow Up Boss for $399 million, which is expected to enhance its real estate service offerings. This strategic move reflects Zillow's commitment to expanding its market presence and technological capabilities.

Shareholder Engagement

Shareholder engagement remains a priority for Zillow Group. The company has implemented regular communication channels and forums for shareholders to express their views and concerns. This engagement is part of Zillow’s strategy to align interests between management and investors.

Conclusion

As of 2024, Zillow Group, Inc. exhibits a robust ownership structure with significant institutional investment, active insider participation, and a strategic focus on enhancing shareholder value through acquisitions and engagement.

Zillow Group, Inc. (ZG) Mission Statement

Company Overview

Zillow Group, Inc. is focused on reimagining real estate to make home a reality for more people. As the most visited real estate website in the U.S., it connects users with digital solutions, dedicated partners, and agents, facilitating easier processes for buying, selling, financing, and renting homes.

Mission Statement

Zillow's mission is to "give people the power to unlock life’s next chapter." This encapsulates their commitment to providing innovative tools and resources that empower consumers throughout their real estate journey.

Key Financial Metrics (2024)

Revenue Breakdown (Six Months Ended June 30, 2024)

Operational Highlights

As of June 30, 2024, Zillow Group employed 6,682 individuals, an increase from 6,263 employees as of December 31, 2023.

Key Performance Indicators

• Visits to Zillow and affiliated platforms increased by 4% year-over-year, reaching 2.495 billion visits.
• The number of unique users also saw an increase, indicating strong consumer engagement with Zillow's services.
• Total loan origination volume for Zillow Home Loans rose by 127% year-over-year, totaling $1.365 billion.

Market Position and Strategy

Zillow continues to expand its market footprint through strategic acquisitions, such as Follow Up Boss in December 2023, enhancing its service offerings for real estate professionals.

Financial Outlook

Looking ahead, Zillow Group aims to continue investing in technology and marketing to sustain growth and improve its profitability metrics.

How Zillow Group, Inc. (ZG) Works

Business Model Overview

Zillow Group, Inc. operates as a technology-driven real estate and rental marketplace that connects consumers with real estate professionals. The company generates revenue through various segments including Residential, Rentals, Mortgages, and Other services.

Revenue Breakdown

As of June 30, 2024, Zillow's total revenue reached $1.1 billion, marking a 13% increase from the previous year. The breakdown of revenue by segment is as follows:

Key Financial Metrics

For the three months ended June 30, 2024, Zillow reported a total revenue of $572 million, an increase of 13% compared to $506 million in the same period of 2023. The following metrics highlight the performance:

Operational Structure and Employee Count

As of June 30, 2024, Zillow employed 6,682 individuals, an increase from 6,263 employees at the end of 2023. This growth reflects ongoing investments in technology and business development.

Cost Structure

Zillow's cost structure for the six months ended June 30, 2024, includes significant investments in various operational areas:

Market Trends and Consumer Engagement

The real estate market remains influenced by factors such as low inventory and fluctuating mortgage rates. Zillow reported a 4% increase in visits to their platforms, totaling approximately 4.8 billion visits for the six months ended June 30, 2024, compared to 4.6 billion in 2023.

Debt and Financial Obligations

As of June 30, 2024, Zillow's total debt stood at $1.7 billion with the following breakdown:

Conclusion

This section does not include a conclusion as per the provided instructions.

How Zillow Group, Inc. (ZG) Makes Money

Revenue Streams

Zillow Group, Inc. (ZG) generates revenue through several key segments: Residential, Rentals, Mortgages, and Other. As of June 30, 2024, the total revenue increased to $1.1 billion, representing a 13% year-over-year growth.

Residential Revenue

The Residential segment, which includes Premier Agent and new construction marketplaces, accounted for approximately 72% of total revenue in Q2 2024. The increase in revenue was driven by a 4% rise in website visits and a 3% increase in revenue per visit, reaching $0.164, up from $0.159 in Q2 2023. The acquisition of Follow Up Boss in December 2023 contributed positively to this growth.

Rentals Revenue

Rentals revenue surged 29% to $117 million, largely due to a 25% increase in revenue per average monthly rental unique visitor, which reached $3.66 compared to $2.94 in Q2 2023. This growth was propelled by a significant increase in multifamily property listings, leading to a 44% rise in multifamily rentals revenue.

Mortgages Revenue

The Mortgages segment experienced a 42% increase in revenue to $34 million, primarily from a 123% rise in total loan origination volume, which reached $759 million in Q2 2024, compared to $340 million in Q2 2023. This growth was attributed to Zillow Home Loans focusing on purchase loan originations.

Cost Structure and Profitability

For the first six months of 2024, Zillow's cost of revenue rose to $253 million, a 29% increase year-over-year, primarily due to higher depreciation and amortization expenses. Gross profit for the same period was $848 million, with a gross margin of 77%.

Net Loss and Adjusted EBITDA

As of June 30, 2024, Zillow reported a net loss of $17 million, a significant improvement from a net loss of $35 million in the same quarter of 2023. Adjusted EBITDA for Q2 2024 was $134 million, up from $111 million in Q2 2023, showing a 21% increase.

Overall, Zillow Group, Inc. continues to leverage its diverse revenue streams, focusing on growth in the housing market while managing operating expenses effectively.