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].

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]