Today, there are two front-runners in online property search – Zillow and Move. They are both public companies. Falling in line behind them are two private companies, Homes.com and Trulia. Here is how the revenue stacks up on the public companies.
Move, Inc., Operators of Realtor.com who is in partnership with AOL Real Estate and MSN real estate for publishing broker listings reported revenue of $47.7 million today. Move did not report any earnings or losses.
Seattle Upstart Zillow has been on a run, increasing traffic to levels comparable with Move and purchasing companies. They reported revenue of $22.8M and earnings of $.06 per share.
It is interesting that the Zillow CEO made comments about the real estate industry spending $6B a year in advertising. I think that he intended to say $6B a year on advertising, technology, MLS dues, and Association Dues.
“During the first quarter, Move continued to lay the groundwork for a successful 2012 while delivering growth in our core Realtor.com business,” said Steve Berkowitz, chief executive officer at Move, Inc. “As local market trends improved slightly in the first quarter, Move realized solid revenue in our Realtor.com Showcase offering and saw promising signs of stability in Top Producer. Solid results from these traditional core products provide the foundation to build on with our newer Co-Broke basic leads program and PreQualPlus mortgage product, which we believe will help drive positive revenue growth in 2012. We are executing effectively against an active 2012 calendar, having already launched a number of key initiatives with many more scheduled for later this year. With the growing use of mobile devices in real estate search, Move continues to lead the real estate industry as it harnesses new technologies that are fundamentally changing how consumers and real estate professionals connect.”
Market leadership: Realtor.com remains the most trusted name in online real estate. In the first quarter of 2012, users spent nearly 1.2 billion minutes and viewed approximately 1.5 billion total pages on the Realtor.com network, more than 1.5 times the nearest competitor(1).
Mobile Highlights: Move rolled out several new or updated versions of its market-leading mobile applications. Today, nearly 40% of all “Homes For Sale” viewed on Realtor.com are on a mobile device. Leads delivered to agents and brokers through Realtor.com’s mobile applications grew by more than 120 percent year-over-year.
Co-Broke Connection: Realtor.com’s solution for connecting home shoppers with buyer’s agents gained immediate traction during its first full quarter of release. Building on the program’s initial success, Move released mobile functionality for Co-Broke on iPhones with delivery planned for Android in summer.
ListHub Preferred Publisher Program: Real estate brokers syndicating listings through the ListHub Preferred Publisher Program can now quickly identify preferred publishers and publisher rules, rate publisher websites and access reports through the control panel. These new features bring greater transparency, control and protection to real estate brokers as they syndicate listings to multiple publishers.
Syndication: Through its ListHub business, Move grew its listings syndication business, now providing listings to more than 120 real estate publisher web sites. Since Move acquired ListHub in 2010, the number of content providers has grown by 40%, extending Move’s position as the leading syndicator of property listings to major publisher sites.
Top Producer: Following on the launch of Top Producer’s HTML5 CRM web-app solution in the fourth quarter, Move expanded the functionality of Top Producer with several upgrades and new features, such as team integration and improved social functionality.
SocialBios: In July 2011, Move acquired SocialBios, the award-winning social search platform. Since integrating SocialBios into the Realtor.com Find a Realtor search experience, more than 10,000 agents have activated their profiles to create a deeper social connection with their customers.
Move today provided guidance for the quarter ending June 30, 2012. For the quarter ending June 30, 2012, Move expects revenue to range between approximately $48.5 million and $49 million and expects to report Adjusted EBITDA margin of approximately 12 – 13 percent.
Move today affirmed its previous guidance for the year ending December 31, 2012. For the year ending December 31, 2012, Move expects revenue to range between $195 million and $200 million and expects to report Adjusted EBITDA margin of approximately 14 percent.
- Record Revenue of $22.8 million, up 103% over first quarter 2011, marking sixth consecutive quarter of over 100% year-over-year revenue growth.
- Record Marketplace Revenue of $16.6 million, up 141% over first quarter 2011.
- Record Quarterly Net Income of $1.7 million, resulting in EPS of $0.06.
- Record Quarterly Adjusted EBITDA of $5.4 million, representing 24% of revenue.
- Record usage across mobile and Web as homes viewed on mobile devices exceeded the Web for the first time.
- Zillow® entered into a definitive agreement to acquire RentJuice Corporation, a leading provider of rental relationship management software for landlords, property managers and rental brokers, announced separately today.
SEATTLE, May 2, 2012 (GLOBE NEWSWIRE) — Zillow, Inc. (Nasdaq:Z), the leading real estate information marketplace, today announced financial results for the quarter ended March 31, 2012.
“Mobile usage and site traffic grew substantially during the first quarter, which led to record revenue and EBITDA levels exceeding our prior outlook, and our sixth consecutive quarter of triple-digit, year-over-year revenue growth,” said Spencer Rascoff, chief executive officer ofZillow. “We continue to expand our addressable market and competitive advantage as we extend our mobile leadership, launch more services for real estate professionals, and grow our mortgage and rentals marketplaces. In particular, we took a giant leap forward in growing our rentals marketplace with today’s announcement that Zillow is acquiring RentJuice. This acquisition will provide us with a comprehensive suite of business and marketing services for rental professionals, similar to what took us years to build and grow in our parallel marketplace for real estate agents.”
First Quarter 2012 Financial Highlights
- Total revenue increased 103% to $22.8 million from $11.3 million in the first quarter of 2011.
- Marketplace Revenue increased 141% to $16.6 million from $6.9 million in the first quarter of 2011.
- Display Revenue increased 42% to $6.2 million from $4.4 million in the first quarter of 2011.
- Net income was $1.7 million, compared to a net loss of $0.8 million in the first quarter of 2011.
- Earnings per share were $0.06 in the first quarter, compared to a loss of ($0.06) per share in the same period last year.
- Adjusted EBITDA was $5.4 million, or 24% of revenue, which was an increase from $1.1 million in the first quarter of 2011, or 9% of revenue.
Operating and Business Highlights
- Average monthly unique users grew 84% to 31.8 million in the first quarter of 2012 compared to 17.3 million average monthly unique users for the same period in 2011.
- Zillow usage on mobile devices continues to accelerate substantially. For the first time, more homes each month are now viewed viaZillow on a mobile device than on the Web. In March 2012, 155 million homes were viewed on Zillow Mobile, or 57 homes per second. By comparison, in March 2011, 44 million homes were viewed on Zillow Mobile at a rate of 16 homes per second.
- In February, Zillow introduced the Zillow Mortgage Marketplace App for AndroidTM, and in April introduced Zillow’s first app designed exclusively for the rental market. Zillow Rentals for Android provides access to Zillow’s proprietary Rent Zestimate® along with custom draw and side-by-side comparison capabilities to make it easy for renters to find and compare homes. Zillow Mobile operates the most popular suite of mobile real estate applications, with 10 separate apps across every major platform: Android (smartphones and tablets), Kindle Fire, RIM (BlackBerry®), iOS (iPad® and iPhone®) and Windows Phone 7®.
- Announced separately today, Zillow has entered into a definitive agreement to acquire RentJuice, a San Francisco-based company, for$40 million in cash. RentJuice® provides rental relationship management software for landlords, property managers and rental brokers. This acquisition will expand Zillow’s total addressable market as a marketing and business management partner for rental professionals. The transaction is subject to satisfaction of customary closing conditions and is expected to close in the second quarter of 2012.
- Premier Agent subscribers totaled 18,616 at March 31, 2012, up 74% year over year. Premier Agent revenue is reported as part of Marketplace Revenue.
- As part of Zillow’s strategic expansion to offer a more robust suite of services to real estate professionals, Zillow launched Agent Hub in April. This free online portal makes it easy for agents to view ROI metrics on their advertising, access and use a custom customer relationship management platform, and sign up for online training to help grow their business.
- In April, Zillow announced the extension of its exclusive advertising partnership with Yahoo! under which Zillow manages advertising sales for Yahoo! Real Estate and operates the Yahoo!-Zillow Real Estate Network, the largest real estate network on the Web. Zillow Premier Agents get the benefit of having their listings and ads distributed across Zillow, Zillow Mobile and Yahoo! Real Estate.
- In April, Zillow announced it will open a new office later this summer in Irvine, Calif. and expand its sales team there. Zillow plans to staff up to 100 employees in Irvine in 2012, primarily by growing its sales force by up to 80 people. The Southern California sales team will focus on selling Premier Agent subscriptions to local real estate professionals throughout the country across the Yahoo!-Zillow Real Estate Network.
- Zillow Mortgage Marketplace saw substantial growth during the quarter. More than 2.5 million loan requests were submitted to Zillow Mortgage Marketplace in the first quarter, which compares to 1.8 million requests submitted for the entire year in 2010.
Business Outlook — Second Quarter 2012
Zillow is providing Revenue and Adjusted EBITDA outlook for the second quarter of 2012 as follows:
- Revenue for the second quarter of 2012 is expected to be in the range of $25.5 to $26.5 million. This represents 64% year-over-year growth at the midpoint of the range over second quarter of 2011 revenue of $15.8 million.
- Adjusted EBITDA for the second quarter of 2012 is expected to be in the range of $3.25 to $3.75 million, representing a 13% margin at the mid-point of the range, compared to second quarter of 2011 Adjusted EBITDA of $3.9 million, which represented a 24% margin.