Zillow Stock Declines After Fourth Quarter Earnings Fall Short of Expectations

Zillow Group, Inc. has released its financial results for the fourth quarter, which have been met with mixed reactions from investors. Although the company managed to surpass revenue expectations, its earnings per share fell short of analyst predictions.

The Earnings Report: Zillow reported earnings of 27 cents per share, which was below the consensus estimate of 29 cents. However, quarterly revenue was reported at $554 million, surpassing the analyst estimate of $544.96 million. This revenue figure also shows an improvement compared to the revenue of $474 million recorded during the same period last year.

• For Sale revenue saw a year-over-year increase of 15%, reaching $428 million in the quarter.
• Residential revenue rose 11% year-over-year, totaling $387 million, driven mainly by ongoing improvements in conversion rates and the expansion of Zillow Showcase.
• Mortgages revenue soared 86% from last year, amounting to $41 million, largely due to a remarkable 90% increase in purchase loan origination volume, which reached $923 million.
• Rentals revenue experienced a 25% rise year-over-year, hitting $116 million, primarily fueled by a 41% growth in multifamily revenue.

CEO's Statement: CEO Jeremy Wacksman expressed his optimism about the company's performance, stating, "2024 was a remarkable year for Zillow: We achieved our stated goals for the year — including double-digit revenue growth — and we expect to keep up our momentum in 2025."

Outlook for the Future: Looking ahead, Zillow projects its first-quarter revenue to fall between $575 million and $590 million, which is below the analyst estimate of $600.84 million.

Market Reaction: Following the earnings announcement, Zillow Group's stock experienced a decline, falling 6.09% in after-hours trading to a price of $81.06.

Zillow, Earnings, Stocks