- Zillow says its loss per share contracted significantly in the fourth quarter.
- Zillow posts $943.9 million in revenue in the fourth quarter versus $815.3 million expected.
- Zillow notes 26 cents of loss per share in the fourth quarter versus 35 cents expected.
Zillow said on Wednesday that it generated more than expected revenue in the recent quarter and its loss per share saw a significant contraction. The company cited home buyers and sellers making excessive use of its real estate website that contributed to upbeat performance in the fourth quarter. Following the earnings report, Zillow was seen trading higher in the stock market.
Zillow’s home unit accounts for over 50% of its revenue. In this unit, the company highlighted to have generated $603.2 million in revenue in the recent quarter that ended on 31st December. In the same quarter last year, the home unit had printed $41.3 million in revenue.
Zillow’s Revenue From Premier Agent Program Records A 5.6% Increase
Zillow’s Premier Agent Program is known to be effective for the real estate brokers who are willing to pay a fee in order to be promoted and marketed. The Premier Agent Program, as per the company, posted $233.5 million in revenue that marked a 5.6% improvement as compared to 2018’s fourth quarter.
Headquartered in Seattle, the company currently boasts over 100 million listed homes on its real estate website. Zillow had previously launched a home valuation tool that it called Zestimates. Thanks to its increasing popularity among the home buyers, the company is benefitting from its individuality in the real estate market.
In a previous estimate, analysts had anticipated the company to see 35 cents of loss per share in Q4. In its earnings report on Wednesday, however, the company celebrated a massive contraction to 26 cents of loss per share in the fourth quarter. In terms of total revenue, experts had estimated Zillow to register $815.3 million in the recent quarter. Wednesday’s results, however, beat the expectations by a significant margin recording $943.9 million in net revenue in Q4. Zillow’s net loss, however, climbed to $101.2 million versus $97.7 million posted a year ago.
Zillow’s Performance In The Stock Market
Following the earnings report on Wednesday, the stock was seen trading 10% higher. At the time of writing, Zillow is exchanging hands at $64 per share in the stock market that translates to just over 40% of growth in 2020 so far. The American online real estate company performed fairly well in the stock market in 2019 as well. It opened at around $32 in January 2019 while closed the year at a considerably higher $45 per share that marks 40% of annual growth.