Zillow announces record 4Q and FY2013 revenues
Ad investment killed fiscal profits but company beat expectations
Zillow Inc. (Z) reported record fourth quarter 2013 and fiscal year 2013 results that exceeded both the company’s previously announced guidance and Wall Street analyst estimates across the board.
"This was a breakaway year for Zillow in which we repeatedly delivered record revenue, traffic, and mobile usage as we significantly grew our market share as the category leader. And we've had an incredibly strong start to 2014 with another traffic record of nearly 70 million unique users in January," said Spencer Rascoff, Zillow CEO. "We're looking ahead to 2014 with significant investments in growing our audience, growing our Premier Agent business and turning up the volume in mortgages and our other emerging marketplaces.
The company reported record revenue of $58.3 million, up 70% over the fourth quarter of 2012. Net income also breached record territory, with net income for the fourth quarter measuring $2.7 million, resulting in basic and diluted earnings per share of $0.07 and $0.06, respectively.
“More than two-thirds of Zillow’s traffic comes from mobile, and quarterly traffic grew 57% YOY to 54.4 million average monthly unique users on mobile and Web,” the company stated in a release. “In January 2014, Zillow traffic reached a new record with nearly 70 million unique users.”
For fiscal 2013, Zillow saw record revenue of $197.5 million, up 69% year-over-year.
As anticipated, Zillow reported a loss for fiscal 2013 due primarily to previously announced investment in advertising. GAAP net loss was $12.5 million in 2013, resulting in basic and diluted GAAP loss per share of $0.35 in 2013.
Additionally, the company also just announced StreetEasy, the city real estate resource in New York that Zillow acquired for $50 million, has eliminated fees and relaunched as a free service with an enhanced consumer experience.