Since the company's IPO two years ago, Rascoff said his biggest lesson has been to not focus on the share price.
Focusing on the product and customer experience will ultimately take care of the stock, he added.
After going public, Rascoff was forced to view his company more objectively from an outside perspective, which he called an "underappreciated benefit."He went on to say that the company is in "investment mode, not in profit-maximization mode," referring to its increasing expenses. The expenses have mostly come from increased recruiting, advertising and product development. Rascoff added that when the company starts to do $500 million in revenues, investors can expect 30% to 40% in EBITDA margins, which are currently in the single digits. Regarding the housing market, he suggested that home prices should continue to climb, albeit, at a slower pace than we've recently experienced. Homeownership is around 62% he said, slightly below the average of 65%, leaving some upside potential for continued home buying. Rascoff concluded that the company's focus would remain on mobile. Two years ago, 20 homes per second were viewed on a mobile device. Now, 120 homes per second are viewed on a mobile device, which is responsible for 60% to 70% of Zillow's traffic. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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