Zillow Soars as Mobile Growth Fuels Earnings (Update 1)
NEW YORK (
) - Shares of real estate information company
Zillow
(Z) - Get Report
are soaring after the company reported better than expected fourth-quarter profits, thanks in part to continued growth in its mobile users.
|
Zillow earned 3 cents per share on $19.9 million in revenue. Analysts polled by
Thomson Reuters
expected Zillow to report earnings of 1 cent per share on $18.77 million in revenue.
In a press release, Zillow CEO Spencer Rascoff highlighted the importance of mobile during the quarter.
"Our continued product innovation, particularly on mobile and in expanding the types of services we offer real estate professionals, is fueling our growth and expanding Zillow's total addressable market," he explained. "Additionally, our revenue model spans across the Web and mobile, which positions us exceptionally well for further revenue gains from mobile in 2012 and beyond."
Despite stronger-than-expected results, Rascoff said he expects home values to decline 3.7% between now and the end of the year. "We pushed out a forecast for the bottom to late 2012 and early 2013," he said over the phone.
Zillow also provided first-quarter guidance. The company said it expects revenue to be between $20.5 million and $21.5 million, and adjusted EBITDA to be between $3.0 million and $3.5 million.
Rascoff noted that the company intends to use its $76 million in cash and cash-equivalents to further product developments, particularly in the mortgage and rental areas to continue to grow revenues.
Zillow shares finished the trading session up 0.3% to $33.99. Shares are climbing in after-hours, up 3.3% to $35.11, according to
Interested in more on Zillow? See TheStreet Ratings' report card for
this stock
.
Check out our new tech blog,
Tech Trends
.
--
Written by Chris Ciaccia in New York
>To follow the writer on Twitter, go to
http://twitter.com/commodity_bull
.
>To submit a news tip, send an email to:
