Financial Data and Key Metrics Changes - Revenue for H1 2025 reached $135.1 million, showing an increase compared to the previous year, with a focus on delivering higher quality revenue [14] - Gross profit increased by 30% year-on-year to $7.4 million, reflecting the company's strategy to enhance revenue quality [14] - Adjusted EBITDA for H1 2025 was $1.8 million, up 500% from the same period last year, indicating significant operational improvement [15] Business Line Data and Key Metrics Changes - Premium ad product revenue grew by 9% to $19.5 million, while Showcase revenue increased by 24% to $11.6 million [18] - Sonic, the third product, saw a decrease of 43% to $3.9 million, indicating a shift in spending patterns [19] - Showcase continues to be the fastest-growing part of the revenue mix, contributing to a higher gross margin [17] Market Data and Key Metrics Changes - Audioboom is now the fifth largest podcast network in the US, with a significant presence in the UK following the acquisition of Abalicious, which positions the company as the second largest podcast network in the UK [34][41] - The UK podcast industry is underinvested compared to the US, with brands investing $1.60 per capita in the UK versus $7 in the US, indicating potential growth opportunities [44] Company Strategy and Development Direction - The acquisition of Abalicious is part of Audioboom's accelerated growth plan and M&A strategy, aimed at consolidating the podcasting market [5][39] - The company aims to leverage its platform to integrate new acquisitions quickly and efficiently, enhancing its market position [50] - Audioboom is focused on expanding its operations in the UK, which has been less prioritized compared to the US market [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the advertising market despite macroeconomic uncertainties, noting that advertisers have not significantly pulled back on budgets [75] - The company anticipates continued growth in revenue and EBITDA, with expectations for 2026 revenue reaching $94.5 million [56] - Management highlighted the importance of integrating Abalicious into the existing operations to maximize synergies and revenue potential [53] Other Important Information - The company has maintained a stable operating expense base, with 60% of costs related to salaries and commissions [26] - Cash collection remains strong, with a 103% collection rate in H1 2025, although it dropped to 93% in Q2 due to slower payment terms from new agencies [28] - The acquisition of Abalicious is expected to be immediately earnings accretive, enhancing the company's financial performance from day one [46] Q&A Session Summary Question: What are the expectations for the US ad market in H2? - Management described the current position as stable, with no significant pullback from advertisers despite macroeconomic uncertainties [75] Question: Will there be any improvement in the margins for Abalicious? - Margins for Abalicious are expected to remain around 20%, with slight improvements anticipated across the group due to increased contributions from Showcase [78] Question: What is the rationale behind the recent share placement? - The placement aimed to bolster long-term institutional holdings and reduce volatility, despite some disappointment with the share price [62]

H1 2025 Performance - Audioboom's gross revenue reached $35.1 million, a 3% increase compared to H1 2024[8] - Gross profit increased by 30% to $7.4 million compared to H1 2024[8] - Adjusted EBITDA saw a significant increase of 500% to $1.8 million compared to H1 2024[8] - Showcase revenue grew by 24% year-on-year[9] Updated Outlook & Adelicious Acquisition - Market expectations for 2025 are upgraded to $83.2 million of revenue and $4.9 million adjusted EBITDA following the Adelicious acquisition[9] - The acquisition of Adelicious is expected to add 20 million monthly downloads and 5 million unique listeners to Audioboom[56] - Audioboom expects to recognize $3.2 million of Adelicious's 2025 revenue in FY 2025[33, 53] - Updated 2026 market expectations include revenue of $94.5 million and adjusted EBITDA of $7.2 million[53] Strategic Initiatives - Audioboom initiated its M&A strategy with the acquisition of Adelicious Ltd at a <1X revenue multiple[2] - The acquisition of Adelicious creates the 2nd largest podcast network in the UK[2] - Brand investment in podcasting is 4.5X higher on a per capita basis in the USA than the UK[40]

Financial Data and Key Metrics Changes - Zillow reported approximately 15% revenue growth last year and anticipates low to mid-teens revenue growth this year, despite a tepid housing market [4][27]. - The company expects to achieve a total revenue of over $2 billion last year, with a goal to reach $5 billion in the future [79]. Business Line Data and Key Metrics Changes - Zillow's strategy includes the rollout of enhanced markets, aiming to have 35% of connections in these markets by the end of the year, with a long-term goal of over 75% [12][26]. - Zillow Home Loans is becoming an increasingly significant part of the strategy, with double-digit adoption rates in enhanced markets [31][37]. Market Data and Key Metrics Changes - The housing market remains largely flat, with existing home sales around 4 million, compared to a typical range of 5 to 6 million [53][56]. - The company notes a supply-demand imbalance in the housing market, primarily driven by a lack of new construction and sellers being trapped in low mortgage rates [54][55]. Company Strategy and Development Direction - Zillow is focused on creating a housing super app to streamline the home buying and selling process, integrating various services such as financing and agent partnerships [7][17]. - The company aims to enhance the customer experience by providing a one-stop shop for all housing transaction needs, including title, escrow, and insurance [19]. Management's Comments on Operating Environment and Future Outlook - Management acknowledges the affordability problem in the housing market, attributing it to a lack of supply rather than just high mortgage rates [54][55]. - The company expects to continue growing through its strategy, gaining market share even in a challenging housing environment [57][58]. Other Important Information - Zillow's Showcase product is gaining traction, with expectations to reach 5-10% of new listings, potentially generating $150 to $300 million in incremental revenue [48][49]. - The company has no plans for international expansion, focusing solely on the U.S. market [88]. Q&A Session Summary Question: What differentiates Zillow from competitors like Rocket and Redfin? - Zillow's integrated transaction strategy is validated by competitors' moves, indicating a market shift towards offering comprehensive services [41][42]. Question: How does Zillow view the rental market and its growth potential? - Zillow is the largest source of rental listings in the U.S., with a target of reaching $1 billion in rental revenue, driven by multifamily growth [63][69]. Question: What has been the impact of commission rate changes in the industry? - Zillow's strategy allows it to work with top-performing agents, who have not seen significant impacts from commission rate changes, potentially benefiting from increased differentiation [94][96]. Question: How does Zillow plan to achieve its financial targets? - The company outlines a path to $5 billion in revenue through organic growth in residential mortgage, rentals, and macro recovery [79][80].

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]

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]

Core Insights - Zillow Group, Inc. has partnered with HomeServices of America to enhance real estate agent capabilities through Zillow Showcase, an AI-powered solution [1][4] - Zillow Showcase features interactive visuals and improved discoverability, leading to increased customer engagement and interest in listings [2][3] Company Collaboration - HomeServices agents benefit significantly from Zillow Showcase, with listings selling for 2% more, adding approximately $9,000 to the average sale price [3] - Active showcase listings experience 81% more page views, 80% more saves, and 90% more shares compared to standard listings, enhancing agent effectiveness in a competitive market [3][5] Market Position and Growth Potential - The partnership with HomeServices of America, a major player in the U.S. real estate market, highlights Zillow's growing influence and the potential for long-term growth through advanced technology [4][6] - Zillow aims to introduce further AI advancements in 2025, focusing on visual and multimodal capabilities to improve home buying and selling experiences [6] Stock Performance - Zillow's stock has increased by 24.8% over the past year, contrasting with a 6% decline in the industry [7]