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Zillow Group reported $554 million in revenue for its fourth quarter, up 17% year-over-year, topping analyst estimates.
The company reported non-GAAP earnings per share of $0.29, just ahead of estimates.
Despite beating expectations for Q4, Zillow stock was down more than 10% in after-hours trading Tuesday. Its outlook for Q1 revenue came in lower than estimates.
Zillow’s full-year revenue for 2024 was $2.2 billion, up 15%, with a net loss of $112 million, down from $158 million in 2023. Zillow CEO Jeremy Wacksman called it a “remarkable year.”
“We achieved our stated goals for the year — including double-digit revenue growth — and we expect to keep up our momentum in 2025,” he said in a press release.
The company’s stock is up more than 50% over the past 12 months amid a housing market with limited supply and mortgage rates that remain above 7%.
Zillow is making a push to scale its rentals business and on Tuesday announced a new deal with fellow Seattle real estate giant Redfin.
Zillow will be the exclusive provider of multifamily rental listings on Redfin and its subsidiaries, Rent.com and ApartmentGuide.com.
The idea is to give multifamily property advertisers on Zillow more reach. The deal also gives Redfin a way to increase revenue through lead generation from its network of sites.
Zillow last year inked a similar syndication deal with Realtor.com for multifamily rental (25 or more units) listings.
In a letter to shareholders, Wacksman said he sees Zillow’s rentals business as a “billion-dollar-plus revenue opportunity” and estimates the total addressable market at $25 billion.
The company’s rentals unit increased revenue by 25% in Q4 to $116 million, primarily driven by multifamily revenue growing 41% year-over-year.
In an investor presentation last year, Zillow noted that there are triple the amount of “renter movers” compared to “for-sale movers” and described the rentals marketplace as “fragmented.”
Zillow draws a majority of its total revenue from its “residential” unit aimed at real estate agents.
The broader real estate industry is adjusting to the NAR settlement last year that changed policies around commission negotiations between home buyers, sellers, and agents.
Wacksman, a longtime Zillow exec, took over as CEO last year in August, replacing co-founder Rich Barton.
Former Zillow CEO Spencer Rascoff last week was named CEO of Match Group.
