Zillow Drops on Q4 Beat

NEW YORK (TheStreet) -- Zillow (Z) shares fell 1.95% to $88.10 after the Seattle-based online real estate giant posted fourth-quarter results that beat estimates.

For the fourth-quarter, on a non-GAAP basis, Zillow earned 20 cents per share on $58.3 million in revenue, as revenue from Marketplace increased 71% to a record $45.9 million from $26.8 million in the fourth quarter of 2012.

The company noted revenue from Real Estate grew 71% year-over-year to $40.5 million, while Mortgages Revenue grew 69% to $5.3 million, and Display Revenue increased 67% to $12.5 million.

Analysts surveyed by Thomson Reuters were looking for the company to earn 7 cents per share on $54.43 million in sales for the fourth quarter.

Zillow said adjusted EBITDA surged to $15.2 million for the quarter, or 26% of revenue, up from $6.8 million in the fourth quarter of 2012.

Zillow said quarterly traffic grew 57% year-over-year to 54.4 million average monthly unique users on mobile and Web.

"This was a breakaway year for Zillow in which we repeatedly delivered record revenue, traffic, and mobile usage as we significantly grew our market share as the category leader. And we've had an incredibly strong start to 2014 with another traffic record of nearly 70 million unique users in January," said CEO Spencer Rascoff in the press release. "We're looking ahead to 2014 with significant investments in growing our audience, growing our Premier Agent business and turning up the volume in mortgages and our other emerging marketplaces."

Seattle-based Zillow noted it continues to gain market share in the valuable real estate advertising space. According to comScore, Zillow is approximately double the size of the company's two closest competitors, when accounting for both Web and mobile traffic.

Shares closed the regular session, up 2.67% to $89.85.   

--Written by Chris Ciaccia in New York

Contact by Email.

More from Technology

Baidu Stock Plummets After COO Qi Lu Resignation

Baidu Stock Plummets After COO Qi Lu Resignation

Wondering What Blockchain Technology Really Is? This Expert Explains It All

Wondering What Blockchain Technology Really Is? This Expert Explains It All

The Dream Team? Netflix Teams Up With the Obamas

The Dream Team? Netflix Teams Up With the Obamas

Tesla's Model 3 Gets a Rough Report From Consumer Reports

Tesla's Model 3 Gets a Rough Report From Consumer Reports

Tesla's $78,000 Model 3 Is a Bargain. Here's Why

Tesla's $78,000 Model 3 Is a Bargain. Here's Why