Skip to main content

NEW YORK (TheStreet) -- Zillow Group (Z) - Get Zillow Group, Inc. Class C Report continues to work on integrating its recently acquired online real estate rival Trulia, with first-quarter results proving the deal has proved a success, at least initially.

"The big thing for the quarter is we're on track to integrate by the end of the year setting up for an exciting 2016," CEO Spencer Rascoff said in an interview.

"We feel great about the full year guidance we gave a month ago and we're reaffirming that today," he said. "We've continued to see success with more [multiple listing services] coming on board, adding 47 MLS's in the past four weeks and 235 since the start of the year. So we're continuing to build momentum."

Seattle-based Zillow earned an adjusted 5 cents a share on $127.3 million in GAAP revenue, up 92% year over year; pro forma revenue, which is a more accurate comparison, however, rose 35% year over year, to $162.5 million, in the first quarter.

The company's real estate segment experienced a 54% jump in revenue year over year, to $113.4 million. Adjusted Ebitda came in at $16.7 million, more than the $8.1 million expected by analysts surveyed. 

TheStreet Recommends

Analysts surveyed by Thomson Reuters were expecting an adjusted loss of 11 cents a share on $135.67 million in GAAP revenue.

At the end of the first quarter, Zillow Group had a total of 103,415 agent advertisers, including those acquired through the Trulia purchase. The average revenue per advertiser (or ARPA) was $354 at the end of the quarter.

The share price fell 0.70% on Tuesday, to $97.98 at the market's close. Zillow shares rose more than 4% in after-hours trading.

Seattle-based Zillow said that as of the end of March, "nearly 140 million unique users visited Zillow Group consumer brands Zillow, Trulia, StreetEasy and HotPads."

Zillow said it expects to complete the Trulia integration by the end of the year and the company reaffirmed its full-year 2015 pro forma revenue and adjusted Ebitda outlook for 2015. For 2015, the company expects revenue to be $690 million, with adjusted Ebitda to be $80 million to $85 million.

Under Rascoff's leadership, the company has been acquisitive. Its purchases include the Trulia deal, first announced in July 2014 and then closed in February. Zillow has also purchased StreetEasy and HotPads over the past 24 months.

Rascoff would not rule out additional mergers, noting the company is "always looking at possible M&A," but cautioned that the company still has to integrate the Trulia and Zillow teams. "We have a lot of work to do ahead of us with the Trulia acquisition and I like the collection of brands we have under our belt."