Zillow Group Inc. (Z) - Get Report shares were up 13% in trading Friday following the company's fourth-quarter earnings beat and the real estate service provider's announcement that CEO Spencer Rascoff will be stepping down.
The company reported fourth-quarter earnings of 1 cent per share, topping analysts' expectations that called for a break-even quarter. Revenue of $365.3 million also topped Wall Street's guidance of $349.5 million.
The company announced that Rascoff will be stepping down, to be replaced by Rich Barton, one of the founders of the company and the CEO who served between 2005 and 2010 before Rascoff took the helm.
"In the past year, Zillow Group has become a very different company," said Barton. "We're making strategic investments to broaden the Zillow Group portfolio to move further down the home-shopping funnel, giving today's 'uberized,' on-demand consumers a full spectrum of options to buy, sell, borrow and rent on their terms. The launch of Zillow Offers and the acquisition of Mortgage Lenders of America in 2018 opened our doors to home buying and selling and home loan originations."
The company purchased 499 homes in the fourth quarter and sold 141. It owned another 509 homes worth $162.8 million at the end of December. The company set a goal of buying 5,000 homes a month over the next three to five years to generate annualized sales of $20 billion.