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Zillow (ZG) Beats Q4 Earnings and Revenue Estimates
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Zillow Group, Inc. (ZG - Free Report) reported relatively healthy fourth-quarter 2023 results, wherein the bottom line and the top line beat the respective Zacks Consensus Estimate. Growing user base, drop in monthly mortgage payments on home purchases and strategic acquisitions proved tailwinds despite stiff competition and higher expenditures.
Net Income
GAAP net loss in the quarter was $73 million or a loss of 32 cents per share compared with a net loss of $72 million or a loss of 31 cents per share in the prior-year quarter. The marginal increase in losses despite higher revenues was due to higher operating expenses.
On a non-GAAP basis, the company’s net income declined marginally to $50 million or 20 cents per share from $52 million or 21 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 12 cents.
For 2023, Zillow witnessed a net loss of $158 million or a loss of 68 cents per share compared with a net loss of $101 million or a loss of 42 cents per share in 2022. On a non-GAAP basis, the company reported a net income of $319 million or $1.26 per share, down from $372 million or $1.43 per share in 2022.
Zillow Group, Inc. Price, Consensus and EPS Surprise
For 2023, total revenues declined 1% year over year to $1,945 million.
Quarterly revenues increased to $474 million from $435 million as both residential and rental segments witnessed a top-line expansion from the prior-year quarter. The top line beat the Zacks Consensus Estimate of $451 million.
Residential revenues witnessed a 3% increase from $340 million in prior-year quarter to $349 million in fourth-quarter 2023.
Revenues in the rental segment witnessed a 37% rise to $93 million from $68 million in the previous-year quarter. The expansion in rental revenues was driven by growth in both multi and single-family listings.
The mortgages segment generated $22 million in revenues compared with $18 million in the year-earlier quarter. Integration of Zillow Home Loans with their Premier Agent partners and increasing volume of purchase mortgage orientation led to revenue growth.
Other Details
During the quarter, Zillow recorded a gross profit of $359 million compared with $346 million in the prior-year quarter. The increase is primarily due to healthy revenue growth in all the segments. The operating expenses during the quarter were $464 million, up from $429 million in the prior-year quarter. Adjusted EBITDA was $69 million compared with $73 million a year ago.
Cash Flow & Liquidity
In 2023, Zillow generated $354 million in cash from operating activities compared with $4,504 million in 2022. As of Dec 31, 2023, the company had $1,492 million in cash and cash equivalents compared with $1,466 million a year ago.
Outlook
For the first quarter of 2024, Zillow estimates total revenues to be in the range of $495-$510 million. Total adjusted EBITDA is expected to be $95 million to $105 million. In the Residential segment, the company anticipates revenues in the band of $365 million to $375 million.
Headquartered in Wilmington, DE, InterDigital, Inc. (IDCC - Free Report) is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
This Zacks Rank #2 (Buy) stock has a long-term earnings growth expectation of 17.4% and has surged 75.3% in the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. The addition of technologies related to sensors, user interface and video to its already strong portfolio of wireless technology solutions is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.
Ubiquiti Inc. (UI - Free Report) , carrying a Zacks Rank #2 at present, is a key pick in the broader industry. Headquartered in New York, it offers a comprehensive portfolio of networking products and solutions for service providers and enterprises at disruptive prices.
It boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. In addition, it is committed to reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community.
AudioCodes Ltd. (AUDC - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 24.8% and delivered an earnings surprise of 20.1%, on average, in the trailing four quarters.
Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products, and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.
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Zillow (ZG) Beats Q4 Earnings and Revenue Estimates
Zillow Group, Inc. (ZG - Free Report) reported relatively healthy fourth-quarter 2023 results, wherein the bottom line and the top line beat the respective Zacks Consensus Estimate. Growing user base, drop in monthly mortgage payments on home purchases and strategic acquisitions proved tailwinds despite stiff competition and higher expenditures.
Net Income
GAAP net loss in the quarter was $73 million or a loss of 32 cents per share compared with a net loss of $72 million or a loss of 31 cents per share in the prior-year quarter. The marginal increase in losses despite higher revenues was due to higher operating expenses.
On a non-GAAP basis, the company’s net income declined marginally to $50 million or 20 cents per share from $52 million or 21 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 12 cents.
For 2023, Zillow witnessed a net loss of $158 million or a loss of 68 cents per share compared with a net loss of $101 million or a loss of 42 cents per share in 2022. On a non-GAAP basis, the company reported a net income of $319 million or $1.26 per share, down from $372 million or $1.43 per share in 2022.
Zillow Group, Inc. Price, Consensus and EPS Surprise
Zillow Group, Inc. price-consensus-eps-surprise-chart | Zillow Group, Inc. Quote
Revenues
For 2023, total revenues declined 1% year over year to $1,945 million.
Quarterly revenues increased to $474 million from $435 million as both residential and rental segments witnessed a top-line expansion from the prior-year quarter. The top line beat the Zacks Consensus Estimate of $451 million.
Residential revenues witnessed a 3% increase from $340 million in prior-year quarter to $349 million in fourth-quarter 2023.
Revenues in the rental segment witnessed a 37% rise to $93 million from $68 million in the previous-year quarter. The expansion in rental revenues was driven by growth in both multi and single-family listings.
The mortgages segment generated $22 million in revenues compared with $18 million in the year-earlier quarter. Integration of Zillow Home Loans with their Premier Agent partners and increasing volume of purchase mortgage orientation led to revenue growth.
Other Details
During the quarter, Zillow recorded a gross profit of $359 million compared with $346 million in the prior-year quarter. The increase is primarily due to healthy revenue growth in all the segments. The operating expenses during the quarter were $464 million, up from $429 million in the prior-year quarter. Adjusted EBITDA was $69 million compared with $73 million a year ago.
Cash Flow & Liquidity
In 2023, Zillow generated $354 million in cash from operating activities compared with $4,504 million in 2022. As of Dec 31, 2023, the company had $1,492 million in cash and cash equivalents compared with $1,466 million a year ago.
Outlook
For the first quarter of 2024, Zillow estimates total revenues to be in the range of $495-$510 million. Total adjusted EBITDA is expected to be $95 million to $105 million. In the Residential segment, the company anticipates revenues in the band of $365 million to $375 million.
Zacks Rank & Other Stocks to Consider
Zillow currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Headquartered in Wilmington, DE, InterDigital, Inc. (IDCC - Free Report) is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks.
This Zacks Rank #2 (Buy) stock has a long-term earnings growth expectation of 17.4% and has surged 75.3% in the past year. A well-established global footprint, diversified product portfolio and ability to penetrate different markets are key growth drivers for InterDigital. The addition of technologies related to sensors, user interface and video to its already strong portfolio of wireless technology solutions is likely to drive considerable value, given the massive size of the market it offers licensing technologies to.
Ubiquiti Inc. (UI - Free Report) , carrying a Zacks Rank #2 at present, is a key pick in the broader industry. Headquartered in New York, it offers a comprehensive portfolio of networking products and solutions for service providers and enterprises at disruptive prices.
It boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. In addition, it is committed to reducing operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community.
AudioCodes Ltd. (AUDC - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 24.8% and delivered an earnings surprise of 20.1%, on average, in the trailing four quarters.
Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products, and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.