Business Performance and Market Position - Zillow's Zestimate feature had a median error rate of 2.3% for homes listed for sale and 7.4% for off-market homes in 2023[22]. - The company reported an annual monthly high of 233 million unique users in June 2023 and approximately 10.0 billion visits throughout 2023[31]. - Approximately 70% of sellers are also buying at the same time, and 43% of renters planning to move within the next year intend to buy their next home[27]. - Zillow's living database consists of approximately 160 million U.S. homes, supported by sophisticated data analysis and aggregation[31]. - The challenging macro housing environment has led to rising prices despite limited sales volume due to low housing supply and high mortgage rates[23]. - In 2023, approximately 4.8 million existing and new homes were sold in the U.S., with Zillow Home Loans capturing less than 0.09% of the mortgage origination market[44]. - Residential revenue accounted for 75% of total revenue for the year ended December 31, 2023, indicating a high revenue concentration risk[85]. - The company has emphasized a customer-first approach, which may lead to forgoing short-term revenue opportunities that do not align with customer interests[114]. Growth Strategy and Investments - The company is focused on six growth pillars, including touring, financing, expanding seller services, enhancing the partner network, rentals, and integrating services[23]. - Zillow Home Loans is currently available in 49 states and the District of Columbia, originating mortgage loans and selling substantially all of them on the secondary market[30]. - The acquisition of Follow Up Boss, a customer relationship management system, was completed in the fourth quarter of 2023[26]. - The company aims to enhance its partner network to improve end-to-end transaction experiences, including mortgages[32]. - The company has invested in software services, including the acquisition of Follow Up Boss and the expansion of ShowingTime+ to enhance real estate transaction capabilities[37]. - The company is investing in the expansion of Zillow Home Loans, product and service development, and technology infrastructure, which may not guarantee increased revenue[207]. Workforce and Culture - As of December 31, 2023, Zillow Group employed 6,263 individuals, with a workforce composition of approximately 55% men and 45% women, and women representing 43% of the leadership team[51]. - Zillow Group's commitment to pay equity shows that employees with similar skills are compensated within approximately 1% of each other, with controlled pay for various demographics reported[56]. - The company has launched an Equity and Belonging Executive Advisory Council in 2023 to enhance diversity and inclusion efforts within the organization[54]. - Zillow Group's flexible workforce model allows employees to work from anywhere, aiming to increase applicant pools and reduce attrition rates[52]. - The company has increased its parental leave policy to allow for up to 20 weeks of paid leave, reflecting its commitment to employee wellness[60]. - Zillow Group's culture of innovation and inclusion has earned recognition, including being named one of the Best Workplaces for Real Estate and for Parents in 2023[34]. Financial Risks and Challenges - Zillow Group's cash position and operating cash flow provide flexibility for continued investment in growth pillars despite economic uncertainty and a volatile interest rate environment[34]. - The company may experience significant operating losses and may not achieve long-term profitability due to current economic conditions[71]. - Zillow Home Loans is subject to interest rate risks and may face challenges in maintaining sufficient financing for mortgage origination[66]. - The company faces risks related to compliance with a wide array of federal, state, and local laws, which could lead to increased operational costs and reputational damage if not adhered to[163]. - The company’s ability to service its debt depends on future performance and cash flow, which may be insufficient to meet obligations[210]. - The company may need to adopt alternatives such as asset sales or restructuring if unable to generate sufficient cash flow to service its debt[211]. Legal and Regulatory Environment - A jury awarded nearly $1.8 billion in damages in the NAR Class Action, which may lead to significant changes in real estate commission structures[79]. - The company faces risks related to compliance with evolving laws and regulations, which could lead to regulatory investigations and operational disruptions[70]. - The company is involved in various legal proceedings that could result in reputational harm and financial liabilities, impacting its operations and business model[205]. - The company is subject to various federal, state, and local laws and regulations, which can be complex and costly to comply with, potentially impacting its financial condition[184]. - The growing regulatory focus on artificial intelligence and digital mortgage platforms may impact the company's ability to adapt and maintain compliance, affecting its business operations[187]. Competition and Market Dynamics - Zillow Group's success depends on its ability to innovate and compete effectively against existing and future competitors in the real estate market[65]. - Intense competition exists in the real estate sector, with competitors potentially having greater financial resources and brand recognition, impacting customer acquisition[105]. - The company faces pressure from competitors for a greater share of real estate partners' marketing budgets, which could adversely affect pricing and margins[106]. - The company must continually innovate and improve products and services to attract and retain customers, as failure to do so could lead to decreased market share[100]. Data Privacy and Cybersecurity - The company is subject to evolving data privacy and security laws, including the California Consumer Privacy Act, which imposes significant compliance obligations and potential penalties[194]. - The company may face significant costs and operational disruptions if it fails to comply with data privacy obligations, which are becoming increasingly stringent[202]. - Cybersecurity threats, including ransomware attacks, are increasing in frequency and sophistication, posing risks to the confidentiality and integrity of sensitive data[135]. - The company relies on third-party vendors for critical services, which introduces cybersecurity risks and could lead to significant operational disruptions if these vendors experience security incidents[137]. Intellectual Property and Technology - The company has 138 patents issued and 203 pending, focusing on proprietary technology for real estate valuation and transaction facilitation[46]. - Intellectual property protection is critical for Zillow, and failure to adequately protect its proprietary rights could harm its competitive position and financial results[170]. - Third parties have misappropriated the company's data through scraping and imitation, which could harm its brand and business relationships[181]. - The company relies on proprietary rights agreements to protect its technologies and confidential information, but these may not fully mitigate the risk of unauthorized disclosure[180].

About this content About Leo Grieco Leo joins us with a degree in Media Production from Bournemouth University. His work includes reporting for the UK editorial team and video editing for the broadcast team. He comes with an expertise in video editing and producing. Leo’s specialities include hospitality and leisure, support services, tech and video games. Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and fi ...

Expensive, coastal and Western markets are already heating up as spring season approaches Well-priced homes are selling in 29 days, and that will shorten quickly as the shopping season opens. Mispriced inventory is lingering, however; an elevated 1 in 5 sellers are cutting prices to find buyers. New listings and total inventory are up slightly over last year, an encouraging sign for buyers. SEATTLE, Feb. 14, 2024 /PRNewswire/ -- Both buyers and sellers should prepare for a competitive home shopping season t ...

Zillow is expanding its “housing super app” to more markets after seeing how well it has been received.The company is also continuing to add functionality to the app for both the real estate sales and rentals markets, Zillow said in a presentation released Tuesday (Feb. 13) in conjunction with its quarterly earnings call.The app is designed to simplify a difficult transaction, Rich Barton, co-founder and CEO of Zillow, said during the call.“Everyone who has moved knows that the process is complicated, time ...

Zillow Group, Inc. (NASDAQ:Z) Q4 2023 Earnings Conference Call February 13, 2024 5:00 PM ET Company Participants Bradley Berning - VP of IR Rich Barton - Co-Founder and CEO Jeremy Wacksman - COO Jeremy Hofmann - CFO Conference Call Participants John Campbell - Stephens Inc. Bradley Erickson - RBC Mark Mahaney - Evercore Ryan McKeveny - Zelman & Associates Thomas Champion - Piper Sandler Ronald Josey - Citigroup Operator Good afternoon. My name is Siarah and I'll be your conference operator for today. At thi ...

As the cost of independence rises, Zillow offers a fresh solution for those flying solo The "singles tax" increased this year, now standing at $7,110. Cohabitating renters collectively save $14,220 annually on average by living together, but that can be as much as $40,200 in New York City. Zillow users can now list and search for individual rooms for rent, reducing housing expenses by finding a roommate to share costs. SEATTLE, Feb. 12, 2024 /PRNewswire/ -- Zillow's latest findings reveal a steep "singles t ...

Core Insights - Gen Z prioritizes job opportunities and climate over affordability when relocating, with California being a top destination despite high outbound migration [1][2] - Texas experienced the highest net gain of Gen Z movers, totaling over 76,000, followed by California and Florida [2][3] Migration Trends - In 2022, California saw nearly 215,000 movers leave, yet gained approximately 44,000 Gen Z adults [1] - Other states with significant Gen Z migration include Washington, Colorado, and Virginia, which are generally more expensive [1][2] - Michigan, Maryland, and Idaho had the lowest net migration of Gen Z, with Michigan seeing more departures than arrivals [3] Rental Market Insights - 77% of Gen Z adults moving to pricier states are renting, with California having the highest median rent at $1,856 per month [2] - Median rental prices in other states include Washington at $1,592, Colorado at $1,594, and Virginia at $1,440, all above the national median of $1,300 [2] Demographic Characteristics - Gen Z movers to states like California, Washington, Colorado, and Virginia are more likely to hold a four-year college degree, serve in the military, and work in tech [2]

Core Insights - Zillow has launched a new feature allowing users to search for or list individual rooms for rent, addressing the rising rental costs in the U.S. since the pandemic [1][2] - The company highlights that nearly 30% increase in U.S. rents and 50% of renters are now cost-burdened, spending 30% or more of their income on rent and utilities [1] - The introduction of room listings aims to create a more diverse marketplace for renters, particularly benefiting younger renters who make up over half of the U.S. rental market [2] Summary by Sections New Feature Introduction - Zillow's platform now includes the option for users to search for or list individual rooms for rent, catering to the needs of those seeking shared living spaces [1][2] - This feature is timely given the significant rise in rental costs, with rents reported to be 6.5% higher than a year ago [1] Benefits for Renters and Homeowners - The new room listing option is designed to help renters find roommates, which can alleviate financial burdens associated with high rental costs [2] - Homeowners can benefit by listing available rooms to reduce mortgage expenses, providing a flexible property management solution [2] Credit History Initiative - Zillow has introduced a feature that allows renters to build their credit history at no cost, with on-time rent payments reported to Experian [3] - This initiative aims to address the issue of unreported rent payments, which affects 26 million Americans who lack a credit history [3]

Conference call to be webcast live at 2 p.m. PT / 5 p.m. ET SEATTLE, Jan. 22, 2024 /PRNewswire/ -- Zillow Group, Inc. (Nasdaq: Z and ZG) announced today it will release fourth-quarter and full-year 2023 financial results after market close on Tuesday, Feb. 13, 2024. The company will host a conference call and webcast to discuss its results that afternoon at 2 p.m. PT / 5 p.m. ET. Information about Zillow Group's financial results, including a link to the live webcast and recorded replay, will be available o ...

Zillow's rent reporting program is rooted in the recognition of a significant gap in credit reporting. Despite renters in the U.S. spending hundreds of billions of dollars annually on rent, these substantial payments often aren't reported. Concurrently, Consumer Financial Protection Bureau data indicates that approximately 26 million Americans are "credit invisible," meaning they lack a history with major credit bureaus. Recent research by Zillow highlights the importance of this issue, particularly in Blac ...