Financial Data and Key Metrics Changes - The home segment revenue for Q4 2021 was $3.3 billion, exceeding the updated outlook range of $2.3 billion to $2.9 billion [32] - IMT segment revenue grew 14% year-over-year to $483 million, with adjusted EBITDA of $220 million and a margin of 46% [35][37] - The total cash and investments at the end of the quarter stood at $3.1 billion, slightly down from $3.2 billion at the end of Q3 [39] Business Line Data and Key Metrics Changes - Premier Agent revenue grew 13% year-over-year, outperforming industry growth of 4% [35] - Rentals revenue remained flat year-over-year but showed stronger-than-expected customer interest [36] - The mortgages segment revenue was $51 million, with an adjusted EBITDA loss of $14 million [38] Market Data and Key Metrics Changes - In 2021, 6.1 million existing homes were sold in the U.S., with Zillow estimating that 4.1 million of those buyers used their platform [20][21] - Zillow's buy-side market share is approximately 5%, with a goal to increase it to 6% by 2025 [22][44] Company Strategy and Development Direction - The company aims to create a "housing super app" to integrate the fragmented moving process and enhance customer experience [12][30] - Zillow plans to leverage its strong brand and user base to drive innovation and increase transaction share [14][28] - The company is focusing on expanding seller solutions and enhancing the partner agent network [25][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current macroeconomic uncertainty but remains optimistic about the housing market due to strong demand signals [63][66] - The company expects to achieve $5 billion in annual revenue by the end of 2025, with a target EBITDA margin of 45% [28][44] - Management emphasizes the importance of innovation and integration in driving future growth [45] Other Important Information - The company has successfully sold or entered agreements to sell over 85% of its homes in the iBuying segment [8][33] - The wind-down of iBuying operations is expected to be cash flow positive, improving from previous expectations of being cash flow neutral [35] Q&A Session Summary Question: What are the keys to execution for the 24% annualized growth target? - Management believes that converting daily app users into transacting customers is crucial for achieving growth targets [47][48] Question: How is Zillow monetizing seller leads? - Management indicates that a significant portion of homebuyers also sell their homes, providing a strong foundation for monetizing seller leads [55] Question: What is the outlook for the housing market? - Management forecasts a strong housing market driven by demographic trends, despite current inventory challenges [64][66] Question: What are the challenges in increasing transaction share from 3% to 6%? - Management identifies improving the home tour reservation system and enhancing conversion rates as key areas for growth [70][71]
Zillow Group(ZG) - 2021 Q4 - Earnings Call Transcript