Market Overview - The stock market has rebounded from post-tariff volatility, while the real estate market has not shown signs of recovery [1] - Persistently high-interest rates are maintaining high mortgage rates, negatively impacting buyer affordability and sellers' willingness to switch homes [1] Analyst Background - Gary Alexander has extensive experience covering technology companies on Wall Street and working in Silicon Valley, along with advising seed-round startups [1] - He has been a contributor on Seeking Alpha since 2017 and has been quoted in various web publications [1]

Core Insights - Atossa Therapeutics has reported promising results from the Phase 2 Endocrine Optimization Pilot sub-study, demonstrating the bioactivity of low-dose (Z)-endoxifen in treating stage II/III ER+/HER2- breast cancer [1][4] Group 1: Study Results - No participants achieved a pathologic complete response (pCR), with residual cancer burden (RCB) classes indicating moderate to extensive disease [3] - The study showed a median Ki-67 suppression from 10.5% at baseline to 5% by Week 3, with 65% of patients achieving Ki-67 ≤ 10% [6] - Median functional tumor volume decreased by 77.7% from baseline to surgery, with the longest tumor diameter reduced by 36.8% [6] Group 2: Drug Profile - (Z)-endoxifen is a potent Selective Estrogen Receptor Modulator (SERM) that can inhibit and potentially degrade estrogen receptors, showing activity in resistant tumors [5] - The drug targets PKCβ1, an oncogenic signaling protein, at clinically achievable blood levels, and offers comparable or superior bone protection compared to tamoxifen [5] Group 3: Future Directions - Atossa is enrolling participants in an additional I-SPY2 cohort testing (Z)-endoxifen at a 40 mg daily dose, with top-line data expected in 2026 [4] - The company is focused on developing (Z)-endoxifen for metastatic breast cancer, supported by a growing intellectual property portfolio [8]

Group 1 - Investors in Zillow Group, Inc. should monitor stock movements due to high implied volatility in the options market, particularly the Jun 20, 2025 $30.00 Call option [1] - Implied volatility indicates market expectations for significant price movement, suggesting potential upcoming events that could lead to a rally or sell-off [2] - Zillow currently holds a Zacks Rank 4 (Sell) in the Internet-Services industry, with no analysts increasing estimates for the current quarter and one analyst revising estimates downward, resulting in a consensus estimate decrease from 59 cents to 58 cents per share [3] Group 2 - The high implied volatility surrounding Zillow may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]

Core Insights - Zillow Group reported first-quarter 2025 adjusted EPS of 41 cents, missing the Zacks Consensus Estimate of 43 cents, but reflecting a year-over-year increase of 13.9% [1] - Total revenues reached $598 million, exceeding the Zacks Consensus Estimate of $588.6 million, and showing a 13% year-over-year improvement [2] - The company experienced growth in for-sale revenues, rental revenues, and mortgage revenues, although increased sales and marketing expenses impacted overall results [1][4] Financial Performance - For-sale revenues increased by 8% to $458 million, while residential revenues rose by 6.1% to $417 million, supported by growth in premier agent offerings and new construction [2] - Rental revenues grew by 33% year over year to $129 million, driven by a 47% increase in multifamily revenue [3] - Adjusted EBITDA margin improved by 200 basis points to 26%, amounting to $153 million, due to revenue growth and cost discipline [3] Expenses and Costs - Sales and marketing expenses rose by 19.3% year over year to $198 million, attributed to higher personnel and marketing costs [4] - Cost of revenues increased by 13% year over year to $139 million, influenced by higher amortization of website development costs and lead acquisition costs [4] Balance Sheet - Zillow ended the first quarter of 2025 with $1.6 billion in cash and investments, a decrease from $1.9 billion at the end of the previous quarter [5] Future Outlook - For Q2 2025, Zillow expects total revenues between $635-650 million and adjusted EBITDA between $140-155 million [6] - For-sale revenues are projected to improve in the mid-single digits, with rental revenues expected to increase by over 35% year over year [7] - The company anticipates mid-teens revenue growth for 2025, with rental revenues expected to grow around 40% year over year [8]

Core Insights - Zillow reported quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.43 per share, but showing an increase from $0.36 per share a year ago, resulting in an earnings surprise of -4.65% [1] - The company posted revenues of $598 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.61% and up from $529 million year-over-year [2] - Zillow shares have declined approximately 9.3% since the beginning of the year, compared to a decline of -4.7% for the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $657.3 million, and for the current fiscal year, it is $1.90 on revenues of $2.57 billion [7] - The estimate revisions trend for Zillow is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Internet - Services industry, to which Zillow belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Financial Data and Key Metrics Changes - Zillow reported total Q1 revenue of $598 million, up 13% year over year, exceeding expectations [11][27] - Adjusted EBITDA for Q1 was $153 million, with an EBITDA margin of 26%, a 200 basis point improvement year over year [12][28] - The company achieved positive GAAP net income of $8 million, representing 1% of revenue [28][26] Business Line Data and Key Metrics Changes - For Sale category revenue was $458 million, up 8% year over year, with residential revenue growing 6% and mortgages revenue increasing 32% [11][30] - Rentals revenue reached an all-time high of $129 million, up 33% year over year, driven primarily by multifamily revenue growth of 47% [19][30] Market Data and Key Metrics Changes - Zillow had 227 million average monthly unique users in Q1, maintaining a significant lead in the residential real estate market [9] - The company reported 37 million unique visitors to Zillow Rentals in March, solidifying its position as renters' number one preference [21] Company Strategy and Development Direction - Zillow is focused on executing its differentiated housing super app strategy, aiming to monetize a larger share of the total addressable market [7][12] - The company is expanding its enhanced markets, with a goal of increasing connections within these markets to over 35% by the end of the year [13][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 goals of low to mid-teens revenue growth and continued EBITDA margin expansion despite macroeconomic challenges [7][34] - The company anticipates accelerating rentals revenue growth, projecting a 40% increase for the full year 2025 [35][36] Other Important Information - Zillow's cash and investments at the end of Q1 were $1.6 billion, down from $1.9 billion, primarily due to share repurchases [32] - The board approved an additional $1 billion share repurchase authorization, reflecting confidence in the company's financial position [34] Q&A Session Summary Question: What is driving the accelerating growth in the rentals business? - Management highlighted the execution of their strategy to build a comprehensive marketplace, resulting in increased inventory and brand preference among renters [43][45] Question: How should growth be assessed relative to the market? - Management noted that Zillow's growth outperformed the market, particularly in the residential segment, despite macroeconomic noise [50][52] Question: What are the mechanics of the partnership with Redfin? - Management clarified that there was no transfer of contracts; Zillow had to win the business, which resulted in significant property count growth [70][72] Question: What is the industry reaction to the new listing access standards? - Management reported positive industry support for the standards, which promote transparency in the real estate market [96] Question: What factors contributed to the lower than expected EBITDA expenses in Q1? - Management indicated slower hiring and lower marketing expenses than anticipated were the primary reasons for the variance [98]

Financial Data and Key Metrics Changes - Zillow reported total Q1 revenue of $598 million, up 13% year over year, exceeding expectations by $15 million [9][25] - Adjusted EBITDA for Q1 was $153 million, with an EBITDA margin of 26%, reflecting a 200 basis point year over year improvement [11][25] - The company achieved positive GAAP net income of $8 million, representing 1% of revenue, marking a significant milestone [26] Business Line Data and Key Metrics Changes - For Sale category revenue was $458 million, up 8% year over year, with residential revenue growing 6% to $417 million and mortgages revenue increasing 32% to $41 million [9][27] - Rentals revenue reached an all-time high of $129 million, up 33% year over year, driven primarily by multifamily revenue growth of 47% [10][28] - The number of multifamily properties on Zillow increased by 38% year over year, reaching 55,000 by the end of Q1 [18][28] Market Data and Key Metrics Changes - Zillow's average monthly unique users reached 227 million, significantly outpacing competitors with four times the app engagement [7] - The company reported 37 million unique visitors to Zillow Rentals in March, solidifying its position as renters' number one preference [19] Company Strategy and Development Direction - Zillow is focused on executing its differentiated housing super app strategy, aiming to monetize a larger share of the total addressable market [6][9] - The company is expanding its enhanced markets, with a goal of increasing connections within these markets to over 35% by the end of the year [12][83] - Zillow is integrating its Premier Agent and Zillow Home Loans offerings to create a seamless experience for buyers and sellers [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full year 2025 goals of low to mid-teens revenue growth and continued EBITDA margin expansion despite macroeconomic challenges [6][23] - The company anticipates accelerating rentals revenue growth of approximately 40% for the full year 2025, driven by strong demand and strategic partnerships [32][33] Other Important Information - Zillow's cash and investments at the end of Q1 were $1.6 billion, down from $1.9 billion, primarily due to share repurchases [30] - The board approved an additional $1 billion share repurchase authorization, reflecting confidence in the company's financial position [31] Q&A Session Summary Question: What is driving the accelerating revenue growth in the rentals business? - Management highlighted the execution of their strategy to build a comprehensive marketplace, resulting in increased inventory and audience engagement [40][42] Question: How should investors assess Zillow's growth relative to the market? - Management noted that Zillow's growth outperformed the market, particularly in the residential and for sale categories, despite macroeconomic noise [48][50] Question: What are the mechanics of the partnership with Redfin? - Management clarified that there was no transfer of contracts; Zillow had to win the business, which has resulted in significant property count growth [66][72] Question: What is the industry reaction to the new listing access standards? - Management reported positive early reactions from the industry, with many brokerages supporting the principles of transparency in real estate [96] Question: What factors contributed to the lower than expected EBITDA expenses in Q1? - Management indicated slower hiring and lower marketing expenses than anticipated were the primary reasons for the variance [98]

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-36853 ZILLOW GROUP, INC. (Exact name of registrant as specified in its charter) _____________________________________________________ Washington 47-1645716 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________ FORM 10-Q _ ...

Reported Consolidated Results | | | Three Months Ended March | | | | --- | --- | --- | --- | --- | | | | 31, | | | | | | 2025 | | 2024 | | Revenue | $ | 598 | $ | 529 | | Cost of revenue (1) | | 139 | | 123 | | Gross profit | | 459 | | 406 | | Operating expenses: | | | | | | Sales and marketing (1) | | 198 | | 166 | | Technology and development (1) | | 149 | | 147 | | General and administrative (1) | | 121 | | 132 | | Impairment costs | | — | | 6 | | Total operating expenses | | 468 | | 451 | | Loss from op ...

Major Arizona brokerage inks agreement to align with Zillow's consumer-first listing access standardsSEATTLE, April 24, 2025 /PRNewswire/ -- West USA Realty, the Southwest's largest regional real estate brand, is joining Zillow in its pro-consumer commitment to listing transparency and ensuring the largest possible audience of buyers can see its listings. Zillow recently introduced new listing access standards designed to give consumers and agents equitable and timely access to real estate information, cont ...