Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Online real estate company Zillow (Z), which was among a slate of internet IPOs in 2011, reported earnings Wednesday evening, and they were quite impressive. While the revenue base is quite small, this is another company growing at >100%. Average monthly unique users also jumped >80%. Guidance was raised. And before you think this is a blog post from 1999 (as if they had blogs back then! hello Geocities?) the positives don’t just have to do with the “number of eyeballs”… the company just turned profitable, at least on a nonGAAP basis.
Via AP:
- Zillow Inc. earned its first-ever first-quarter profit as its revenue doubled, thanks to increasing traffic to itsreal estate information website. The company also said Wednesday that it will acquire San Francisco-based RentJuice Corp. for $40 million in cash. RentJuice Corp. makes software used by landlords, property managers and rental brokers.
- In the most recent quarter, for the first time, more people turned to mobile devices than to Zillow’s website to view the company’s database of 100 million homes, which includes listings of homes for sale and for rent, the company said.
- Zillow, which went public last July and derives its revenue from advertising and agent subscriptions, reported net income of $1.7 million, or 6 cents a share, for the three months that ended March 31. That compares with a loss of $826,000, or 6 cents a share, a year earlier.
- Zillow’s revenue jumped to $22.8 million from $11.3 million, fueled by stronger marketplace and display ad receipts.
- The results beat analysts’ average forecast for earnings of 4 cents a share on $21.5 million in revenue, according to FactSet.
- In the latest quarter, the company’s marketplace revenue increased more than twofold to $16.6 million from $6.9 million a year earlier. Display revenue rose 42 percent to $6.2 million from $4.4 million.
- Average monthly unique users grew 84 percent to 31.8 million from 17.3 million from the prior-year period.
- The company’s roster of premier agent subscribers stood at 18,616 at the end of the quarter, up 74 percent from a year earlier.
- Zillow expects second-quarter revenue of $25.5 million to $26.5 million. Wall Street has forecast $24.8 million.
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