Zillow narrows 3Q loss on 132% rise in revenue
Zillow (Z) reported a loss of $570,000, or 2 cents a share for the third quarter, on record revenue of $19.1 million. The online real estate marketplace narrowed its 3Q loss from a loss of $1.51 million on $8.2 million in revenue in the year-ago quarter. "We continue to see substantial growth in site traffic, mobile usage and revenues," said Spencer Rascoff, Zillow CEO. "As a result, our outstanding results in the third quarter exceeded our prior outlook. In addition, the acquisition of Diverse Solutions, announced today, will allow us to become an even more meaningful marketing partner for real estate agents." Irvine, Calif.-based Diverse Solutions helps real estate agents market their businesses and improve their personal websites. Zillow acquired substantially all the assets for $7.8 million in cash and stock. Diverse Solutions' software services include providing listings content and property search functionality for the Web and mobile platforms. Zillow recorded traffic and mobile usage with average monthly unique users of 24.2 million, up 101% year-over-year. The company said an average of 2.4 million homes were viewed on a mobile device each day, or 28 homes per second, during the month of September. In October, Zillow announced the expansion of its subscription-based "premier agent" advertising program, creating three tiers of participation: platinum, silver and basic, to appeal to a broader range of agents and their marketing needs. Premier agent subscribers totaled 14,876 at Sept. 30, up 131% year-over-year. Write to Kerry Curry. Follow her on Twitter @communicatorKLC.