Zillow Lifts Outlook on Sales, Beats Wall Street Expectations
Following the sales increase that was bigger than had been expected, Zillow lifted its forecast for revenue for the full year. Shares of the company, up over 43% the last three months, gained another 12% during trading in after hours Tuesday late afternoon.
The company, based in Seattle, operates online portals for real estate used by real-estate agents and homebuyers. It acquired its former biggest rival Trulia this past year.
In its most recent move to increase its footprint, the company this past February closed on its acquisition of Naked Apartments, a rental search site in New York City, for more than $13 million.
Zillow said there were over 166 million unique visitors to its site during March. That figure was up more than 22% from the same time one year ago and was a figure that set a new record high for the business.
For the entire quarter, Zillow announced that it averaged 156 million monthly unique users, helping to push its share in the market to 65% of the Web and mobile real estate audience.
Revenue from real estate jumped by 34% during the three-month period ending at $152.5 million, while revenue from mortgages was up by 65% to end the quarter at $16.5 million.
Those two increases helped offset a drop of 34% in display revenue, a drop attributed by Zillow to a move to de-emphasize its display advertising.
Zillow traditionally had brought in large chunks of money from the advertising purchased by different realtors. Revenue comparisons exclude all sales from its business Market Leaders, which was divested during last year’s third quarter.
In all, the company reported a $47.6 million loss equal to 27 cents per share, narrower than its loss the same period last year of $65.3 million equal to 40 cents per share.
Excluding costs related to acquisitions and income taxes amongst other things, Zillow posted a 13 cents per share loss, compared to 2 cents in earnings for the same period one year ago.
Revenue was up 25% ending the quarter at $186 million, excluding its sales from Market Leader.
Analysts had projected that Zillow would have a 17 cents per share adjusted loss and revenue of more than $176.8 million.
The company also had $15.7 million recorded for legal costs in the first quarter that stemmed from a News Corp lawsuit. News Corp owns Move Inc a competitor of Zillow.