Zillow (NasdaqGS:Z) 2025 Conference Transcript

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]