Index Investing News
Sunday, May 25, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

Zillow Sees Q3 Revenue Dip, But Also Manages To Significantly Trim Losses

by Index Investing News
November 3, 2022
in Property
Reading Time: 6 mins read
A A
0
Home Property
Share on FacebookShare on Twitter


New markets require new approaches and new tactics. Experts and industry leaders will take the stage at Inman Connect New York in January to help you navigate the market shift — and prepare for the next one. Meet the moment and join us. Register here.

Zillow revealed Wednesday that its revenue was down in the third quarter of 2022 compared to the same period last year, but also that it managed to significantly reduce the amount of money it lost.

In total, the portal giant brought in $483 million in revenue between July and September, according to Zillow’s latest earnings report. That’s down 12 percent compared to the $550 million the company earned in the third quarter of 2021 — a time when the housing market was booming compared to the present. The company also lost $53 million during the third quarter.

Though companies exist to make a profit, that $53 million loss is actually a marked improvement over the third quarter of 2021 when the company lost $329 million. On the other hand, it’s a reversal from the second quarter of this year when Zillow made $8 million in profit.

Rich Barton

In a statement on the latest earnings, co-founder and CEO Rich Barton said the company is “making progress in each of our growth initiatives: touring, financing, seller solutions, enhancing our partner network and integrating our services.”

“Having a well-capitalized business that produces operating cash flow gives us an advantage in navigating the choppiness of the current housing market,” Barton continued.

The lion’s share of Zillow’s revenue this quarter, or $457 million, came from its IMT segment — which includes offerings, such as marketing, software and the Premier Agent lead generation program for real estate agents. Revenue from the IMT segment was down 5 percent year over year. Premier Agent alone generated $312 million in revenue, which is a year-over-year drop of 13 percent.

Zillow’s mortgage segment brought in $26 million in revenue, a 63 percent drop from the $70 million the segment generated in the third quarter of last year. The segment ultimately lost Zillow $51 million, up from $6 million in losses a year ago.

Zillow’s Homes segment — which included the company’s iBuyer Zillow Offers — lost $8 million, down from $69 million a year ago. Significantly, Zillow announced one year ago during its third quarter 2021 earnings report that it would be ending Zillow Offers. The news sent shockwaves through the industry. Ever since, Zillow has been working to wrap up sales on the thousands of homes it previously purchased. That effort officially ended this fall.

The continued wind down of Zillow Offers in the third quarter of this year meant the company didn’t face the challenge of continuing to buy and renovate houses in a worsening market, which has been a major and money-losing problem for other iBuyers.

During a call with investors Wednesday afternoon, Barton said that in light of what has happened in the market over the last year “we feel we made the right decision to wind down our iBuying operations.”

Heading into Wednesday’s earnings report, Zillow stock was trading for just under $30 per share. That was down for the day and was less than half of what shares were fetching at the beginning of 2022.

Like many real estate companies, Zillow shares peaked in early 2021, when they were fetching nearly $200. In the time since, a faltering stock market and a slowing real estate market have significantly reduced the value of most real estate company shares.

In after-hours trading Wednesday, Zillow’s share price bounced around but ultimately ended just slightly up from its closing price.

Credit: Google

As of the close of trading Wednesday, Zillow had a market cap of about $7.2 billion.

Zillow’s latest financial report comes amid perhaps the most pivotal earnings season in recent memory. Thanks to rising mortgage rates, the housing market has cooled significantly this year. That cooling has prompted thousands of layoffs across various sectors of the real estate industry and is now leading to forecasts of national home price declines. The situation has become especially challenging to mortgage lenders thanks to falling demand for loans, as well as iBuyers, thanks to slower or negative price appreciation.

For its part, Zillow does not appear to be suffering quite as much as some companies. Though it has recently laid off workers, its revenue decline was smaller than the one suffered by Anywhere. And thanks to its now year-old iBuying bow, it is avoiding some of the pain erstwhile rivals such as Opendoor may currently be experiencing.

Zillow’s latest earnings report also shows that consumers are still turning to Zillow, with traffic to the company’s sites and mobile apps up 4 percent year over year for a total of 236 million average monthly unique users. The company had a total of 2.8 billion online visitors during the entire third quarter, which is also a 4 percent year-over-year increase.

In Wednesday’s investor call, Barton described “near and medium term headwinds” and referring to interest rates, said that “we haven’t seen this kind of a market in decades.” The result, Barton continued, was that many people are adopting a “wait and see” mentality about the market.

Still, Barton expressed optimism about Zillow’s prospects during the call. He talked at length about Zillow’s various “growth pillars,” which include trying to expand and streamline the business. One such pillar, Barton explained, is touring and he outlined how Zillow is expending considerable effort in an attempt to make booking a home tour as easy as “booking a restaurant reservation.”

Another pillar is expanding Zillow’s mortgage business. Barton spent considerable time discussing Zillow’s plans to capture more lending business, including by building a better consumer experience.

“Our product road map starts with simplifying the entry points in our funnel,” he said.

The attention on Zillow’s lending efforts was notable given that the mortgage sector has been among the hardest hit in the current housing downturn.

However, Barton repeatedly moved during the call to frame Zillow’s strategy as a long-term one, mentioning at one point that while the current market is “choppy” Zillow believes 60 million homes will change hands in the next 10 years.

“That’s the basis of the long-term opportunity before us,” Barton said, adding later that even if the market is currently stuck there is “big human and demographic pressure to get it unstuck.”

Allen Parker

Allen Parker, Zillow’s chief financial officer, also appeared on the investor call and said that he believes the company can grow at a faster pace than the broader real estate industry, “a lot of volatility” at the present moment notwithstanding. And he pointed to Zillow’s rising traffic as evidence that people remain interested in housing.

“People’s interest,” Parker added, “in dreaming and moving persists.”

Update: This post was updated after publication with additional information from Zillow’s earnings report and from executives’ call with investors. 

Email Jim Dalrymple II





Source link

Tags: dipLossesManagesRevenueseessignificantlytrimZillow
ShareTweetShareShare
Previous Post

Is TikTok Helping People with ADHD? Experts and Influencers Weigh In

Next Post

Kourtney Kardashian Had Her 7-Year-Old Son Reign Interrupt Her

Related Posts

WA renters, landlords put together for brand new cap on lease hikes

WA renters, landlords put together for brand new cap on lease hikes

by Index Investing News
May 24, 2025
0

A monumental change hit Washington’s rental market this month, one within the works for years: caps on lease hikes.However what...

Magnificent Spanish Mediterranean Property within the Coronary heart of Denver

Magnificent Spanish Mediterranean Property within the Coronary heart of Denver

by Index Investing News
May 24, 2025
0

6 Ivy Lane, within the Outdated Crestmoor neighborhood, is well recognizable by its iconic blue tile roof and Spanish Mediterranean...

New-home gross sales climb practically 11%, however figures could also be ‘overestimated’

New-home gross sales climb practically 11%, however figures could also be ‘overestimated’

by Index Investing News
May 23, 2025
0

Gross sales of newly constructed single-family houses rose in April, pointing to continued purchaser engagement through the spring homebuying season,...

Goodyear to Promote A part of Chemical Enterprise for 0M

Goodyear to Promote A part of Chemical Enterprise for $650M

by Index Investing News
May 24, 2025
0

This 640,000-square-foot property situated in Akron, Ohio, serves as Goodyear’s headquarters. Picture courtesy of Goodyear Goodyear will promote nearly all...

Seattle’s solely homeless RV car parking zone makes approach for pickleball advanced

Seattle’s solely homeless RV car parking zone makes approach for pickleball advanced

by Index Investing News
May 23, 2025
0

The Seattle Instances’ Venture Homeless is supported by Campion Basis, Raikes Basis and Seattle Basis. The Seattle Instances maintains editorial...

Next Post
Kourtney Kardashian Had Her 7-Year-Old Son Reign Interrupt Her

Kourtney Kardashian Had Her 7-Year-Old Son Reign Interrupt Her

Globalization In Retreat – The Big Picture

Globalization In Retreat - The Big Picture

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

Southampton half firm with supervisor Russell Martin

Southampton half firm with supervisor Russell Martin

December 16, 2024
Transcript: Liz Hoffman – The Big Picture

Transcript: Liz Hoffman – The Big Picture

July 31, 2023
How Technology Will Impact Multifamily Living In 2023

How Technology Will Impact Multifamily Living In 2023

November 23, 2022
Texas lawmakers approve new corporate tax breaks

Texas lawmakers approve new corporate tax breaks

May 30, 2023
These will be the breakout sports stars of 2023 (Part 2)

These will be the breakout sports stars of 2023 (Part 2)

January 7, 2023
Warriors’ Stephen Curry would not have goal date to return

Warriors’ Stephen Curry would not have goal date to return

May 9, 2025
XRP Price Down 46% Since July 2023 But Liquidity Up 50%, What This Means For The Token

XRP Price Down 46% Since July 2023 But Liquidity Up 50%, What This Means For The Token

September 19, 2023
Trailer for Freaky Physique Horror Movie ‘The Ugly Stepsister’ from Norway

Trailer for Freaky Physique Horror Movie ‘The Ugly Stepsister’ from Norway

March 17, 2025
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In