Zillow Group IR Blog

Zillow Group Third Quarter 2017 Financial Results Highlights

3Q17 Financial Highlights

  • Total Revenue increased 25% yoy to a record $281.8M and exceeded the high end of the guidance range.
  • Premier Agent Revenue increased 24% yoy to $197.1M.
    • The number of Premier Agent accounts spending more than $5,000 per month grew by 98% yoy and increased 88% on a total dollar basis.
    • Total sales to Premier Agents, including brokerages and other teams, who have been customers for more than one year increased 45% yoy.
    • Sales to existing Premier Agents, including brokerages and other teams, accounted for 52% of total bookings.
  • Other Real Estate Revenue[1] increased 55% yoy to $44.8M.
  • Mortgages Revenue increased 6% yoy to $20.9M.
  • Display Revenue increased 8% yoy to $19.1M.
  • GAAP net income was a record $9.2M, or 3% of Revenue, compared to GAAP net income of $6.8M, or 3% of Revenue, in 3Q16.
  • Adjusted EBITDA[2] was a record $71.0M, or 25% of Revenue, an increase from $59.5M, or 26% of Revenue, in 3Q16.

3Q17 Operating and Business Highlights

Business Outlook 

  • The following table presents Zillow Group’s business outlook for the periods presented:

  • A reconciliation of forecasted Adjusted EBITDA to forecasted net income (loss) is provided in the press release in the “Quarterly Results” section of Zillow Group’s Investor Relations website.

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties, including, without limitation, statements regarding our business outlook and future operational plans. Statements containing words such as “may,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “will,” “projections,” “continue,” “business outlook,” “forecast,” “estimate,” “outlook,” “guidance,” or similar expressions constitute forward-looking statements. Actual results may differ materially. For information about potential factors that may affect Zillow Group’s business and financial results, please review the “Risk Factors” described in Zillow Group, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission, or SEC, and in Zillow Group’s other filings with the SEC. Except as may be required by law, Zillow Group does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

Use of Non-GAAP Financial Measures

This communication includes discussion of Adjusted EBITDA, which is a non-GAAP financial measure not prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). This non-GAAP financial measure is not prepared under a comprehensive set of accounting rules and, therefore, should only be reviewed alongside results reported under GAAP.

We urge you to review our earnings press release as it contains important information about our financial results, including reconciliation tables and related information about this non-GAAP financial measure. The earning press release is available on the Investor Relations section of the Zillow Group website at http://investors.zillowgroup.com/releases.cfm. It is also included as Exhibit 99.1 to our Current Report on Form 8-K as furnished to the SEC on November 7, 2017, which is available on the Investor Relations section of the Zillow Group website at http://investors.zillowgroup.com/sec.cfm and the SEC’s website at www.sec.gov.

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[1] Other Real Estate Revenue primarily includes revenue generated by Zillow Group Rentals, New Construction, as well as revenue from the sale of various other advertising and business software solutions and services for real estate professionals.

[2] A reconciliation of Adjusted EBITDA to net income is provided in the press release in the “Quarterly Results” section of Zillow Group’s Investor Relations website.

[3] Zillow Group third quarter 2017 internal data. Includes Zillow, Trulia, StreetEasy and HotPads.

Zillow Group October 2017 IR Roundup Zillow Group November 2017 IR Roundup