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Zillow (ZG) Q1 Earnings Meet Estimates, Top Line Surges Y/Y
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Zillow Group (ZG - Free Report) reported relatively healthy first-quarter 2024 results, with the top line beating the Zacks Consensus Estimate and the bottom line matching the same. The company witnessed a revenue expansion year over year, backed by strong momentum in all verticals.
It has a solid brand position in the residential real estate industry. The company boasts more than 217 million average monthly unique users across the Zillow ecosystem of apps and sites. Zillow’s advanced technology, such as Real Time Touring, Listing Showcase, Follow Up Boss CRM and ShowingTime touring software, are gaining strong popularity among real estate agents. However, a challenging macroeconomic environment remains a headwind.
Net Income
GAAP net loss in the quarter was $23 million or a loss of 10 cents per share compared with a net loss of $22 million or a loss of 9 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 improved to $93 million or 36 cents per share from $87 million or 35 cents per share in the year-ago quarter. The bottom line matched the Zacks Consensus Estimate.
Zillow Group, Inc. Price, Consensus and EPS Surprise
Quarterly revenues increased to $529 million from $469 million in the prior year quarter. Healthy growth in the residential and rental segment boosted the top line. The top line surpassed the Zacks Consensus Estimate of $509 million.
Residential revenues witnessed a 9% increase from $361 million in the prior-year quarter to $393 million in first-quarter 2024, driven by healthy growth in Premier Agent Business. Growth in the New Construction business, expansion of Listing Showcase nationwide through ShowingTime+ and contributions from Follow Up Boss also supported net sales in this vertical.
Revenues in the rental segment witnessed a 31% rise to $97 million from $74 million in the previous-year quarter. The expansion in rental revenues was driven by solid growth in multifamily listings.
The mortgages segment generated $31 million in revenues compared with $26 million in the year-earlier quarter, backed by solid growth in purchase loan origination.
Other Details
During the quarter, Zillow recorded a gross profit of $406 million compared with $377 million in the prior-year quarter, with respective margins of 77% and 80%. The operating expenses during the quarter were $451 million, up from $422 million in the prior-year quarter. Adjusted EBITDA was $125 million compared with $104 million a year ago.
Cash Flow & Liquidity
In the first quarter of 2024, Zillow generated $80 million in cash from operating activities compared with $93 million a year ago. As of Mar 31, 2024, the company had $1.44 billion in cash and cash equivalents with $1 billion in convertible senior notes, net of current portion.
Outlook
For the second quarter of 2024, Zillow expects total revenues to be in the range of $525-$540 million. Residential revenues are expected in the band of $372-$382 million. Adjusted EBITDA is estimated to be in the range of $85 million to $100 million.
Zacks Rank & Other Stocks to Consider
Zillow currently carries a Zacks Rank #2 (Buy).
NVIDIA Corporation (NVDA - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), delivered a trailing four-quarter average earnings surprise of 20.18%. In the last reported quarter, it delivered an earnings surprise of 13.41%. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Qualcomm Incorporated (QCOM - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 7.54%. In the last reported quarter, it delivered an earnings surprise of 6.09%.
Qualcomm Incorporated designs, manufactures and markets digital wireless telecom products and services based on the Code Division Multiple Access technology. The products include CDMA-based integrated circuits and system software for wireless voice and data communications, as well as global positioning system products.
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Zillow (ZG) Q1 Earnings Meet Estimates, Top Line Surges Y/Y
Zillow Group (ZG - Free Report) reported relatively healthy first-quarter 2024 results, with the top line beating the Zacks Consensus Estimate and the bottom line matching the same. The company witnessed a revenue expansion year over year, backed by strong momentum in all verticals.
It has a solid brand position in the residential real estate industry. The company boasts more than 217 million average monthly unique users across the Zillow ecosystem of apps and sites. Zillow’s advanced technology, such as Real Time Touring, Listing Showcase, Follow Up Boss CRM and ShowingTime touring software, are gaining strong popularity among real estate agents. However, a challenging macroeconomic environment remains a headwind.
Net Income
GAAP net loss in the quarter was $23 million or a loss of 10 cents per share compared with a net loss of $22 million or a loss of 9 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 improved to $93 million or 36 cents per share from $87 million or 35 cents per share in the year-ago quarter. The bottom line matched the Zacks Consensus Estimate.
Zillow Group, Inc. Price, Consensus and EPS Surprise
Zillow Group, Inc. price-consensus-eps-surprise-chart | Zillow Group, Inc. Quote
Revenues
Quarterly revenues increased to $529 million from $469 million in the prior year quarter. Healthy growth in the residential and rental segment boosted the top line. The top line surpassed the Zacks Consensus Estimate of $509 million.
Residential revenues witnessed a 9% increase from $361 million in the prior-year quarter to $393 million in first-quarter 2024, driven by healthy growth in Premier Agent Business. Growth in the New Construction business, expansion of Listing Showcase nationwide through ShowingTime+ and contributions from Follow Up Boss also supported net sales in this vertical.
Revenues in the rental segment witnessed a 31% rise to $97 million from $74 million in the previous-year quarter. The expansion in rental revenues was driven by solid growth in multifamily listings.
The mortgages segment generated $31 million in revenues compared with $26 million in the year-earlier quarter, backed by solid growth in purchase loan origination.
Other Details
During the quarter, Zillow recorded a gross profit of $406 million compared with $377 million in the prior-year quarter, with respective margins of 77% and 80%. The operating expenses during the quarter were $451 million, up from $422 million in the prior-year quarter. Adjusted EBITDA was $125 million compared with $104 million a year ago.
Cash Flow & Liquidity
In the first quarter of 2024, Zillow generated $80 million in cash from operating activities compared with $93 million a year ago. As of Mar 31, 2024, the company had $1.44 billion in cash and cash equivalents with $1 billion in convertible senior notes, net of current portion.
Outlook
For the second quarter of 2024, Zillow expects total revenues to be in the range of $525-$540 million. Residential revenues are expected in the band of $372-$382 million. Adjusted EBITDA is estimated to be in the range of $85 million to $100 million.
Zacks Rank & Other Stocks to Consider
Zillow currently carries a Zacks Rank #2 (Buy).
NVIDIA Corporation (NVDA - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), delivered a trailing four-quarter average earnings surprise of 20.18%. In the last reported quarter, it delivered an earnings surprise of 13.41%. You can see the complete list of today’s Zacks #1 Rank stocks here.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
Arista Networks, Inc. (ANET - Free Report) , sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Qualcomm Incorporated (QCOM - Free Report) , carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 7.54%. In the last reported quarter, it delivered an earnings surprise of 6.09%.
Qualcomm Incorporated designs, manufactures and markets digital wireless telecom products and services based on the Code Division Multiple Access technology. The products include CDMA-based integrated circuits and system software for wireless voice and data communications, as well as global positioning system products.