Sep 24, 2020
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Why Has Zillow’s Stock Gained Almost 40% In 2 Months?

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BRAZIL – 2019/07/01: In this photo illustration the Zillow Group logo is seen displayed on a. [+] SOPA IMAGES/LIGHTROCKET VIA GETTY IMAGES Zillow (NASDAQ: ZG) is the largest online real estate company that lists homes for sale and renting by real estate agents. The company makes money from monetizing leads from the same

 

The company s stock has rallied by nearly 40% inside the last 2 months resulting from strong Q3 results released in November – especially by means of strong revenue growth. The company has pivoted its business model to a huge extent by introducing 2 new segments: Home mortgage financing and Zillow Offers where Zillow purchases a property directly and then sells it online after making repairs – something that has made the company s business model so much more asset-heavy

 

Zillow s Q3 revenues more than doubled to $745 Mil driven by Homes segment which clocked $385 Mil – up from $11 Mil a year ago. However the company continues to make losses with Q3 losses coming in at $65 Mil. Notably Zillow s website traffic hit an all-time high with monthly unique users up 5% to 195

 

6 Mil and website visits up 11% to over 2. 1 Bil. We step back from these recent swings to check Zillow s performance over the previous couple of years as a context for what might come next. Our Interactive dashboard – Investigating Reasons For The ~40% Increase in Zillow s Share Price In The Last 2 Months reviews the near term reasons and the massive picture

 

The context for the previous couple of years: A more in-depth look At Zillow s Total Revenues over the previous couple of years and the outlook Total Revenues for Zillow substantially increased from $1. 1 Bil in 2017 to $1. 3 Bil in 2018; a rise of 23. 8%. This compares with Total Revenues growth of 27

 

2% in 2017. We predict Total Revenues growth to be 95. 7% in 2019 driven by higher sales inside the newly introduced Homes segment. PROMOTED Civic Nation BRANDVOICE | Paid Program
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Show Me The Equal Money TREFIS A more in-depth look At Zillow s Total Expenses over the previous couple of years and the outlook Total Expense for Zillow substantially increased from $1

 

3 Bil in 2017 to $1. 5 Bil in 2018; a rise of 17. 7%. This compares with Total Expense growth of 18. 2% in 2017. We predict Total Expense to grow by 84. 1% in 2019 at the back of better marketing spend. How does Zillow s Revenue Growth compare with rivals? For more information on how Zillow s revenue growth compares with Yelp Redfin and TripAdvisor view our interactive dashboard analysis

 

How has Zillow s LBT trended? LBT for Zillow decreased substantially by 18% from $184 Mil in 2017 to $151 Mil in 2018. We further expect LBT to decrease by 18. 3% to $123. 4 Mil in 2019. How has Zillow s Net Income and EPS trended? For more information about Zillow s Net Income and EPS view our interactive dashboard analysis

 

What s behind Trefis? See How It s Powering New Collaboration and What-Ifs For CFOs and Finance Teams| Product R&D and Marketing Teams More Trefis Data Like our charts? Explore example interactive dashboards and create your own

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