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Zillow, Inc. Reports Record First Quarter 2013 Results

  • Record Revenue of $39.0 million, up 71% over first quarter 2012.
  • Record Marketplace Revenue of $31.0 million, up 87% over first quarter 2012.
  • Record quarterly and all-time traffic, topping a record 52 million monthly unique users on mobile and Web in April 2013 (up 63% year-over-year), following a record 50 million monthly unique users in March 2013 (up 55% year-over-year).
  • Premier Agent count grew 83% year-over-year, adding a record 4,557 quarterly subscribers for a total of 34,030.
  • Raises full-year revenue outlook range to $178.0 - $182.0 million.

SEATTLE, May 7, 2013 (GLOBE NEWSWIRE) -- Zillow, Inc. (Nasdaq:Z), the leading real estate and home-related information marketplace, today announced financial results for the quarter ended March 31, 2013.

"The first quarter was a breakout quarter for Zillow, as we reached new heights in traffic and Premier Agent subscriptions, leading to record revenue and exceeding our own expectations, as well as further extending our category leadership on mobile and Web," said Spencer Rascoff, CEO of Zillow, Inc. "We are extremely excited about the massive market opportunity in front of us, and about growing our audience, our Premier Agent business, and our emerging marketplaces. We are stepping on the gas in a number of areas, playing the long game and making calculated investments in products, people and marketing that will allow us to create a massive, enduring brand."

First Quarter 2013 Financial Highlights and Revenue Outlook
  • Revenue increased 71% to a record $39.0 million from $22.8 million in the first quarter of 2012.
  • Marketplace Revenue increased 87% to a record $31.0 million from $16.6 million in the first quarter of 2012.
  • Display Revenue increased 27% to $7.9 million from $6.2 million in the first quarter of 2012.
  • Zillow is raising its revenue outlook for the full year 2013. Revenue for full-year 2013 is expected to be in the range of approximately $178.0 to $182.0 million. This represents a 54% year-over-year growth rate over 2012 full year revenue of $116.9 million at the midpoint of the outlook range. Additional outlook details will be discussed in Zillow's conference call today at 2 p.m. PDT (5 p.m. EDT).  
  • Due to previously announced increased investment in marketing and operating costs associated with acquisitions made at the end of 2012, as well as an increase in non-cash expenses, including share-based compensation expense and depreciation and amortization expense, GAAP net loss was $3.7 million in the first quarter of 2013, compared to GAAP net income of $1.7 million in the first quarter of 2012.  
  • Adjusted EBITDA was $5.1 million, or 13% of revenue, which was a decrease from $5.4 million in the first quarter of 2012, or 24% of revenue, driven primarily by increased investment in marketing and operating costs associated with acquisitions made at the end of 2012.  
  • Basic and diluted loss per share was $0.11, compared to basic and diluted earnings per share of $0.06 in the same period last year.

Operating and Business Highlights
  • Traffic growth is accelerating, with a record 52 million monthly unique users on mobile and Web in April 2013 (up 63% year-over-year), following a record 50 million monthly unique users in March 2013 (up 55% year-over-year). Average monthly unique users during the first quarter of 2013 was a record 46.7 million (up 47% year-over-year).  
  • More than 241 million homes were viewed on Zillow via a mobile device in April 2013, or 93 homes per second. Today, 55% of visits to Zillow occur on a mobile device, jumping to more than 60% on weekends. Zillow operates 24 apps across seven platforms.  
  • Premier Agent subscribers increased by a record 4,557 in the first quarter of 2013, and totaled 34,030 on March 31, 2013, up 83% year-over-year. Average monthly revenue per subscriber in the first quarter of 2013 was $259, which declined slightly year-over-year and sequentially due primarily to the record additions of new subscribers, as new Premier Agents typically start at lower levels of impressions than longer-term subscribers. Premier Agent revenue is reported as part of Marketplace Revenue.  
  • Zillow added several significant distribution partnerships during the first quarter that expose Zillow to more consumers, and add value for professionals. In February, Zillow announced a partnership with HGTV's FrontDoor and Zillow now powers's real estate search. Also during the quarter, Google selected Zillow as a launch partner for its new predictive-search experience on Android phones, Google Now. In April, Zillow began powering real estate information and search on AOL's Patch, a network of more than 900 community news and information sites.  
  • Also in February, Zillow launched its home improvement marketplace, Zillow Digsā„¢, on the Web at and on iPad®, as an important complement to the company's existing real estate, mortgage and rental marketplaces, adding another valuable service to help consumers through every meaningful lifecycle of the home. Since the launch of Zillow Digs, Zillow has seen terrific uptake in engagement and user generated content, with more than 76,000 photos added by our community of users, and 80,000 content boards created.  
  • During the first quarter, Zillow Mortgage Marketplace processed a record 4.5 million loan requests, up 74% year-over year. Also during the quarter, Zillow Mortgage Marketplace was integrated into all Zillow mobile real estate apps, making it even easier for Zillow users to shop for mortgages while home shopping.  
  • In April, Zillow added its Twitter and Facebook accounts ( and ) and the Zillow Blog ( ) as designated channels to disclose material information. Zillow also announced executives will consider questions submitted via Twitter and Facebook during its first quarter earnings call, with the hashtag #ZEarnings.  
  • In April, Zillow held a successful forum on the future of the housing market in Washington D.C. More than 250 attended the half-day event to hear from Zillow Chief Economist Stan Humphries; keynote speakers Sen. Johnny Isakson and Sen. Jeff Merkley; and a group of the brightest minds in housing including Realogy Chairman, CEO and President Richard Smith, PIMCO Managing Director Scott Simon, and real estate journalists Nick Timiraos of The Wall Street Journal and Diana Olick of CNBC.

Quarterly Conference Call to Include Business Outlook

Zillow management will discuss Zillow, Inc.'s first quarter of 2013 financial results, as well as the second quarter and full year 2013 business outlook in a conference call today at 2 p.m. PDT (5 p.m. EDT) that will also be webcast live. The live webcast of the conference call will be available on the investor relations section of Zillow, Inc.'s website at . For those without access to the Internet, the call may be accessed toll-free via phone at 877-643-7152 with conference ID# 36710292. Callers outside the United States may dial 443-863-7921 with conference ID# 36710292. Questions submitted via Zillow's Twitter account ( ) using the hashtag #ZEarnings, and questions posted on the Zillow Facebook page ( ) will be considered during the Q&A portion of the call, in addition to questions submitted by those dialed in. Following completion of the call, a recorded replay of the webcast and a copy of the prepared remarks will be available on the investor relations section of Zillow, Inc.'s website. The recorded replay will be available until May 14, 2013. To listen to the telephone replay, call toll-free 855-859-2056 with conference ID# 36710292. Callers outside the United States may dial 404-537-3406 with conference ID# 36710292.

Forward-Looking Statements

This press release 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, the statements regarding our belief about our category leadership on mobile and the Web, our massive market opportunity, and our revenue outlook. Statements containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "will," "projections," "business outlook," "estimate," or similar expressions constitute forward-looking statements. Differences in Zillow's actual results from those anticipated in these forward-looking statements may result from actions taken by Zillow as well as from risks and uncertainties beyond Zillow's control. Factors that may contribute to such differences include, but are not limited to, Zillow's ability to maintain and effectively manage an adequate rate of growth; the impact of the real estate industry on Zillow's business; Zillow's ability to innovate and provide products and services that are attractive to its users and advertisers; Zillow's ability to increase awareness of the Zillow brand; Zillow's ability to maintain or establish relationships with listings and data providers; Zillow's ability to attract consumers to Zillow's mobile applications and websites; Zillow's ability to successfully integrate and realize the benefits of our past or future strategic acquisitions or investments; Zillow's ability to compete successfully against existing or future competitors; the reliable performance of Zillow's network infrastructure and content delivery processes; and Zillow's ability to protect its intellectual property. The foregoing list of risks and uncertainties is illustrative, but is not exhaustive. For more information about potential factors that could affect Zillow's business and financial results, please review the "Risk Factors" described in Zillow's Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission, or SEC, and in Zillow's other filings with the SEC. Except as may be required by law, Zillow does not intend, and undertakes no duty, to update this information to reflect future events or circumstances.

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