Q1 2024 Summary
Published Feb 18, 2025, 5:24 PM UTCInitial Price$55.73January 1, 2024
Final Price$47.40April 1, 2024
Price Change$-8.33
% Change-14.95%
- Zillow's Rentals business is experiencing strong growth, with revenue reaching a $400 million run rate and the company targeting a $1 billion-plus sustainable revenue opportunity in the long term. This growth is driven by multifamily property count increasing to 40,000 properties and strategic investments in demand generation and sales efforts. ,
- Positive signals and share gains in enhanced markets are contributing to Zillow's confidence in accelerating revenue growth in the second half of the year. The company is expanding to 19 enhanced markets in May and is on track to reach 40 enhanced markets by the end of the year, leading to expected double-digit revenue growth despite a challenging macro environment. ,
- The Listing Showcase product is gaining traction, resulting in higher engagement from buyers, with homes selling 20% faster and for 2% more money compared to non-Showcase listings. Agents using Listing Showcase are winning 20% more listings, indicating significant potential for future growth as the product is rolled out nationally. ,
- Zillow's heavy reliance on first-time homebuyers is a headwind, as this segment is underperforming significantly due to rate shocks, impacting Zillow's residential revenue in Q2. ,
- Premier Agent partners are taking a 'wait-and-see' approach amid interest rate volatility, leading to potential declines in Premier Agent revenues, a key revenue source for Zillow. , ,
- Zillow's full-year guidance depends on a significant acceleration in the second half of the year in a flat housing market, which may be challenging given current macroeconomic headwinds and slowing residential business. ,