NEW YORK (TheStreet) -- Zillow (Z) shares rose in premarket trading Thursday after the Seattle-based online real estate company reported fourth-quarter earnings and 2014 guidance that was mixed.
For the fourth quarter, Zillow earned 20 cents a share on a non-GAAP basis on revenue of $58.3 million; 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 a share in the fourth quarter on $54.43 million in sales.
Shares of Zillow were rising in premarket Thursday trading, gaining 0.17% to $90.
Wall Street analysts were by and large positive on Zillow shares following the results, though the guidance did warrant some caution. Here's what a few of them had to say:
Benchmark Company analyst Daniel Kurnos (Overweight, $105 PT)
"Zillow (Z-Buy, PT $105) reported an upside surprise in 4Q on both the top and bottom line. Revenue of $58.3 million, up 70% y/y, was $2 million ahead of consensus and our forecast, although the upside was driven almost entirely by outperformance in Display. EBITDA of $15.2 million was roughly $6 million ahead of consensus, primarily reflecting a significant pullback in advertising spend, driving EBITDA margin up to over 26%. The outlook for 2014, however, was mixed, with the mid-point of revenue guidance at $291 million representing 47% y/y growth and coming in $8 million ahead of consensus, but EBITDA guidance of $38-$40 million implying 200bps of margin compression y/y at the midpoint, again mostly due to aggressive marketing plans. Given the significant upside generated on the topline over the balance of 2013 (~$25 million vs. initial guidance), we're willing to give management the benefit of the doubt, particularly given that 2014 guidance assumes no benefit from adjacent marketplace monetization outside of Mortgage."