Summary of Zillow Fireside Chat at Goldman Sachs Communicopia and Technology Conference Company Overview - **Company**: Zillow - **Industry**: Real Estate Technology - **User Base**: Over 240 million average monthly unique users across apps and sites [3] Core Business Model - **Housing Super App**: Zillow aims to be a comprehensive platform for buying, selling, renting, and financing homes [3] - **Revenue Segments**: - For Sale Market: Revenue from buying, selling, and financing homes - Rentals: Revenue from renting homes or apartments [3] Financial Performance - **2024 Performance**: - Revenue growth of 15% across the company - EBITDA margins expanded by 200 basis points - Positive GAAP net income [4] - **2025 Outlook**: - Projected mid-teens revenue growth for the full year - 40% growth rate in rentals [4][14] - **Q2 Performance**: - Residential revenue up 6% year-over-year - For Sale segment grew 9% year-over-year, outperforming the housing market by 800 basis points [7][8] Growth Drivers - **For Sale Business**: - Growth driven by enhanced agent support and mortgage growth through Zillow Home Loans - Introduction of innovative products like Zillow Showcase, which enhances listing visibility [9][10] - **Rentals Business**: - Unique position in the market with 60% of all single-family homes for rent listed on Zillow - Significant growth in multifamily revenue, increasing from 27,000 buildings to 64,000 in three years [15][16] - **Mortgage Business**: - Zillow Home Loans revenue up 41% year-over-year, with 48% growth in originations [27] - Focus on building relationships between agents and loan officers to drive growth [27][28] Strategic Partnerships - **Redfin Partnership**: - Expanded distribution and introduced more multifamily customers - Collaboration with Realtor.com and Redfin to enhance inventory visibility [22][24] Product Development - **Enhanced Markets**: - Targeting 35%+ of transactions by the end of the year, with a long-term goal of 75% [34][36] - **Follow Up Boss**: - CRM tool aimed at improving agent productivity and lead conversion [44] - **AI Integration**: - Utilizing AI for consumer experience, agent productivity, and internal operations [69][71] Capital Allocation and M&A Strategy - **Debt Management**: - Successfully retired convertible debt, achieving a clean balance sheet [72] - **Stock Buyback Program**: - Over $2 billion in stock repurchased since 2021, reducing share count [72] - **M&A Approach**: - Focus on product-led growth with selective acquisitions to fill gaps [75] Strategic Priorities - **Future Focus**: - Continued growth in for sale and rentals business, particularly in multifamily execution - Emphasis on cost discipline and leveraging enhanced markets for revenue opportunities [77][78] Conclusion - **Overall Sentiment**: - Positive outlook on growth opportunities despite a challenging housing market - Confidence in executing strategic initiatives to drive revenue and profitability [54][58]

Core Insights - Zillow Group, Inc. reported mixed second-quarter 2025 results, with net income missing the Zacks Consensus Estimate but revenues exceeding expectations, driven by strong customer engagement and brand positioning in the residential real estate sector [1][2][3] Financial Performance - Net income for the quarter was $2 million or 1 cent per share, a significant improvement from a net loss of $17 million or 7 cents per share in the prior-year quarter, primarily due to solid top-line growth [2] - Quarterly revenues increased to $655 million from $572 million in the year-ago quarter, surpassing the Zacks Consensus Estimate of $647 million, with residential revenues rising 6% to $434 million [3][8] - The Mortgages segment generated $48 million in revenues, up from $34 million a year earlier, driven by a 48% increase in purchase loan origination [4] - Rental revenues surged 36% to $159 million, primarily due to a 56% year-over-year growth in multifamily revenues [4] Profitability Metrics - Gross profit for the quarter was $489 million, compared to $442 million in the prior-year quarter, reflecting healthy revenue growth across all segments [5] - Operating expenses rose to $500 million from $480 million in the prior-year quarter, while adjusted EBITDA increased to $155 million from $134 million a year ago, supported by higher revenues and cost discipline [5] Cash Flow and Liquidity - In the first half of 2025, Zillow generated $191 million in cash from operating activities, up from $135 million in the prior-year period, with $587 million in cash and cash equivalents as of June 30, 2025 [6] Future Outlook - For Q3 2025, Zillow expects total revenues in the range of $663-$673 million and total adjusted EBITDA between $150 million and $160 million, with Mortgages' revenues projected to grow approximately 20% year-over-year [9] - The company anticipates low to mid-teens revenue growth for 2025, with continued adjusted EBITDA margin expansion and positive GAAP net income forecasted [10]

Core Insights - Zillow Group, Inc. reported mixed first-quarter 2025 results, with net income missing estimates but revenue exceeding expectations, showing year-over-year growth [1][3][4] Financial Performance - Net income on a GAAP basis was $8 million (3 cents per share), recovering from a net loss of $23 million (10 cents per share) in the prior-year quarter [3] - Non-GAAP net income improved to $105 million (41 cents per share) from $93 million (36 cents) year-over-year, although it missed the Zacks Consensus Estimate by 2 cents [3] - Quarterly revenues increased to $598 million from $529 million in the previous year, surpassing the Zacks Consensus Estimate of $589 million [4] - Residential revenues rose 6% to $417 million, driven by growth in Premier Agent offerings and other services [4] - The Mortgages segment generated $41 million in revenues, up from $31 million, with a 32% increase in purchase loan origination [5] - Rental revenues surged 33% to $129 million, primarily due to a 47% growth in multifamily revenues [5] Operational Metrics - Gross profit for the quarter was $459 million, compared to $406 million in the prior-year quarter, attributed to revenue growth across all segments [6] - Operating expenses increased to $468 million from $451 million year-over-year [6] - Adjusted EBITDA rose to $153 million from $125 million, supported by higher revenues and cost discipline [6] Cash Flow and Liquidity - Cash generated from operating activities was $104 million, up from $80 million in the prior-year quarter [7] - As of March 31, 2025, the company had $914 million in cash and cash equivalents, with $37 million in other long-term liabilities [7] Future Outlook - For Q2 2025, Zillow expects total revenues between $635 million and $650 million, with adjusted EBITDA projected at $140 million to $155 million [8] - The company anticipates approximately 30% year-over-year growth in Mortgages revenues, mid-single-digit growth in residential revenues, and 35% growth in rental revenues [8] - For the full year 2025, Zillow expects low to mid-teens revenue growth and positive GAAP net income [9]

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]