Latest news with #ZillowGroup
Fast Company
6 days ago
- Business
- Fast Company
Why Bumble and Tinder are suddenly scrambling to keep up with Hinge
When Spencer Rascoff took over as CEO at the struggling dating app giant Match Group in February, one of his first orders of business was to acquaint himself with all the services under his purview. Match, which owns and operates more that 45 dating apps, including Tinder, Hinge, OKCupid, and has seen its stock price drop more than 80% from its 2021 high amid growing fatigue with online dating and a generation shift away from apps. After explosive growth during the pandemic, Match's annual revenue has been flattening, in large part because growth at Tinder, its once-reliable cash cow, has stalled. Rascoff, the cofounder and former CEO of Zillow Group, is tasked with turning things around. Rascoff asked the leadership of Tinder and Hinge to each take three hours and present their apps to him. The Tinder team began by walking him through the app's financial results and business metrics. They then got to the product road map, and finally to the people and culture. The team behind Hinge—which grew revenue by 39% last year, providing a rare bright spot in the Match Group portfolio—took an entirely different approach. 'They started with consumer insights. This is where Gen Z is at. This is where Millennials are at. This is the zeitgeist of the world. This is what they want. This is how they date. This is how they think. This is how they connect,' Rascoff recalled in May, as he told the story to the audience at the JPMorgan Global Technology, Media, and Communications Conference. 'Only at the very end, did they actually share, briefly,revenue and financial metrics.' Rascoff's conclusion: 'If you want to understand why Hinge is winning and Tinder was losing, that's it. That's why.' A little more than a week later, Tinder CEO Faye Iosotaluno announced that she would step down in July, after less than two years in the role. Rascoff is taking the reins himself. Match shares rose 1.3% following the announcement.
CNBC
13-05-2025
- Business
- CNBC
Zillow Group CEO: The housing market remains a challenge for buyers
Jeremy Wacksman, Zillow Group CEO, joins CNBC's 'Squawk on the Street' to discuss outlooks on the housing market, expectations for buyer-seller dynamics, and more.
Wall Street Journal
07-05-2025
- Business
- Wall Street Journal
Zillow Group Swings to Profit For First Time Since 2022
May 7, 2025 5:23 pm ET Photo: Gabby Jones/Bloomberg News Zillow Group Z 1.03%increase; green up pointing triangle swung to a profit for the first time since the second quarter of 2022. The company reported a first-quarter profit of $8 million compared with a loss of $23 million a year earlier.
Geek Wire
07-05-2025
- Business
- Geek Wire
Zillow turns a profit amid rough housing market — and keeps betting big on remote work
Zillow Group CEO Jeremy Wacksman. (Zillow Photo) Zillow Group is one of the most vocal cheerleaders of remote work, having shifted to its 'Cloud HQ' model in the pandemic and touting the benefits as recently as last month. So I asked Zillow CEO Jeremy Wacksman: In a hypothetical world, if Zillow was just launching today, would it start as a remote-first company? 'If we were starting in 2025, and we had this clairvoyance of how this had already been working, I feel like we would have,' Wacksman said in an interview with GeekWire. Zillow's bet on remote work comes as the company's business steadily grows. The Seattle real estate giant topped estimates for its latest quarterly results released Wednesday — and reported a profit for the first time since 2022, as measured by GAAP, or Generally Accepted Accounting Principles. Q4 revenue was up 13% year-over-year to $598 million, and traffic to Zillow's apps and websites was up 5%. The company's stock is up nearly 60% in the past 12 months despite a rough U.S. housing market. By switching to remote work, Zillow has significantly reduced office-related costs. The company's rent expense decreased $31 million in 2024 'primarily driven by cost savings associated with changes in the use of certain office space in our lease portfolio,' according to an annual report. But Wacksman, a longtime exec who took over from Zillow co-founder Rich Barton last year, said going remote isn't about saving money. 'It's offense for us,' he said. 'It's a strategic approach that allows us to recruit nationwide.' Before the pandemic, nearly all of Zillow's workforce lived near an office. Now the company has employees in all 50 states and sees a much higher number of applicants per job opening. 'That's increasing both the quality and the diversity of our hiring pipeline and our talent,' Wacksman said. 'It's a fantastic tool for us to drive innovation and drive execution.' (Zillow Image) The company's office footprint has shrunk since moving to 'Cloud HQ.' In its hometown of Seattle, the company had 113,470 square feet at the end of last year— down from 386,275 square feet at the end of 2019, reported the Seattle Times, citing regulatory filings. Zillow has followed that trend in other cities where it leases space, including New York City and Atlanta. It also shut down offices in Kansas and Denver. The company has nearly 7,000 employees worldwide — up from 5,249 employees at the end of 2019. It has around 1,200 people in the Seattle region — down from 2,700 Seattle employees in 2020. The region still has the largest number of employees compared to other areas globally. Zillow is an outlier among its peers. Just 5% of U.S. companies are fully remote, according to a Q4 report from Flex Index. Many companies bringing workers back to the office cite productivity and collaboration benefits of in-person work. 'Our collective view as a leadership team is that while remote work has some benefits, being in the office fuels collaboration, sparks creativity, and increases velocity,' Uber CEO Dara Khosrowshahi said in a memo to employees this week, as part of a new in-office mandate reported by CNBC. 'We've observed that it's easier for our teammates to learn, model, practice, and strengthen our culture,' Amazon CEO Andy Jassy wrote in a memo last year about its 5-day mandate. Honda said last month that working on-site will promote 'essential in-person collaboration and problem solving,' Business Insider reported. Wacksman admitted that offering flexibility comes with challenges. That's why the company makes it a point to have several team gatherings per year. It hosted 79 retreats last year at its Seattle office alone. Zillow has also created new programs to train employees and develop its culture while being in a remote work setting. What works for Zillow may not work for the next company, Wacksman noted. 'We're just really clear out about what we're doing, which I think really helps leadership focus on what works and focus on improving what's not working,' he said. Related: Chainguard doesn't have an office. Here's how the $3.5B cybersecurity startup makes remote work.
Yahoo
07-05-2025
- Business
- Yahoo
Zillow Group Reports First-Quarter 2025 Financial Results
Traffic to Zillow Group's mobile apps and sites in Q1 was up 5% year over year to 227 million average monthly unique users. Visits during Q1 were up 2% year over year to 2.4 billion. Cash and investments at the end of Q1 were $1.6 billion, down from $1.9 billion at the end of Q4, primarily due to share repurchases of $250 million in Q1. Residential revenue was up 6% year over year in Q1 to $417 million, benefiting primarily from growth in the company's Premier Agent offerings, Zillow Showcase, New Construction, and Follow Up Boss. For Sale revenue was up 8% year over year to $458 million in Q1. On a trailing 12-month 3 basis, For Sale revenue per total transaction value was 10.2 basis points at the end of Q1, compared with 9.7 basis points for the same period in 2024. Q1 revenue was up 13% year over year to $598 million, above the midpoint of the company's outlook range by $15 million. Q1 revenue outperformed the residential real estate industry's year-over-year total transaction value growth of 3% according to NAR 1 and 6% according to industry data tracked and estimated by Zillow. 2 Additionally, we estimate the purchase mortgage origination market was roughly flat for Q1 year over year. "Our strong Q1 results surpassed our expectations and demonstrate how well we're executing. We are on track to meet our full-year 2025 goals, and we're well-positioned to deliver sustainable profitable growth," said Zillow Chief Executive Officer Jeremy Wacksman. "As we expand our services and scale the housing super app across more markets, we are bringing more customers and real estate professionals together and making buying, selling, and renting easier for them, which is helping us grow both our revenue and profits." Complete financial results for the first quarter and outlook for the second quarter of 2025 can be found in the shareholder letter on the Investor Relations section of Zillow Group's website at . SEATTLE, May 7, 2025 /PRNewswire/ -- Zillow Group, Inc. (NASDAQ: Z and ZG), which is transforming the way people buy, sell, rent, and finance homes, today announced its consolidated financial results for the three months ended March 31, 2025. Story Continues 1 National Association of Realtors® existing homes sold during Q1 2025 multiplied by the average selling price per home for Q1 2025, compared with the same period in 2024 2 Calculated as the number of existing residential homes sold during Q1 2025 multiplied by the average sale price of existing residential homes sold for Q1 2025 according to industry data collected and estimated by Zillow, as published monthly on our site 3 Trailing 12-month period represents results and industry data from April 1, 2024, through March 31, 2025 First-Quarter 2025 Financial Highlights The following table sets forth Zillow Group's financial highlights for the periods presented (in millions, except percentages, unaudited): Three Months Ended March 31, 2024 to 2025 % Change 2025 2024 Revenue: For Sale revenue: Residential $ 417 $ 393 6 % Mortgages 41 31 32 % Total For Sale revenue 458 424 8 % Rentals 129 97 33 % Other 11 8 38 % Total revenue $ 598 $ 529 13 % Other Financial Data: Gross profit $ 459 $ 406 Net income (loss) $ 8 $ (23) Adjusted EBITDA (1) $ 153 $ 125 Percentage of Revenue: Gross profit 77 % 77 % Net income (loss) 1 % (4) % Adjusted EBITDA (1) 26 % 24 % (1) Adjusted EBITDA is a non-GAAP financial measure; it is not calculated or presented in accordance with U.S. generally accepted accounting principles, or GAAP. See below for more information regarding our presentation of Adjusted EBITDA, including a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure, which is net income (loss), for each of the periods presented. Conference Call and Webcast Information Zillow Group will host a live webcast to discuss these results today at 2 p.m. Pacific Time (5 p.m. Eastern Time). Please register for the live event at A shareholder letter and link to both the live webcast and recorded replay of the call may be accessed in the Quarterly Results section of Zillow Group's Investor Relations website. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties, including, without limitation, statements regarding the future performance and operation of our business, and our business strategies and ability to translate such strategies into financial performance. Statements containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "predict," "will," "projections," "continue," "estimate," "outlook," "guidance," "would," "could," "strive," or similar expressions constitute forward-looking statements. Forward-looking statements are made based on assumptions as of May 7, 2025, and although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee these results. Differences in Zillow Group's actual results from those described in these forward-looking statements may result from actions taken by Zillow Group as well as from risks and uncertainties beyond Zillow Group's control. Factors that may contribute to such differences include, but are not limited to: the health and stability of the economy and United States residential real estate industry, including changes in inflationary conditions, interest rates, housing availability and affordability, labor shortages and supply chain issues; our ability to manage advertising and product inventory and pricing and maintain relationships with our real estate partners; our ability to establish or maintain relationships with listing and data providers, which affects traffic to our mobile applications and websites, or changes to our rights to use or timely access listing data, or to the quality or quantity of such listing data; our ability to comply with current and future rules and requirements promulgated by the National Association of REALTORS®, multiple listing services, or other real estate industry groups or governing bodies, or decisions to repeal, amend, or not enforce such rules and requirements; our ability to navigate industry changes, including as a result of past, pending or future lawsuits, settlements or government investigations, which may include lawsuits, settlements or investigations in which we are not a named party; uncertainties related to potential policy changes or enforcement priorities at the federal and state levels; our ability to continue to innovate and compete to attract customers and real estate partners; our ability to effectively invest resources to pursue new strategies, develop new products and services and expand existing products and services into new markets; our ability to operate and grow Zillow Home Loans' mortgage operations, including the ability to obtain or maintain sufficient financing to fund the origination of mortgages, meet customers' financing needs with product offerings, continue to grow origination operations and resell originated mortgages on the secondary market; the duration and impact of natural disasters, climate change, geopolitical events, and other catastrophic events (including public health crises) on our ability to operate, demand for our products or services, or general economic conditions; our targets and disclosures related to environmental, social, and governance matters; our ability to maintain adequate security controls or technology systems, or those of third parties on which we rely, to protect data integrity and the information and privacy of our customers and other third parties; our ability to navigate any significant disruption in service on our mobile applications or websites or in our network; the impact of past, pending or future litigation and other disputes or enforcement actions, which may include lawsuits or investigations to which we are not a party; our ability to attract, engage, and retain a highly skilled workforce; acquisitions, investments, strategic partnerships, capital-raising activities, or other corporate transactions or commitments by us or our competitors; our ability to continue relying on third-party services to support critical functions of our business; our ability to protect and continue using our intellectual property and prevent others from copying, infringing upon, or developing similar intellectual property, including as a result of generative artificial intelligence; our ability to comply with domestic and international laws, regulations, rules, contractual obligations, policies and other obligations, or to obtain or maintain required licenses to support our business and operations; our ability to pay our debt, settle conversions of our convertible senior notes, or repurchase our convertible senior notes upon a fundamental change; our ability to raise additional capital or refinance our indebtedness on acceptable terms, or at all; actual or anticipated fluctuations in quarterly and annual results of operations and financial position; actual or perceived inaccuracies in the assumptions, estimates and internal or third-party data that we use to calculate business, performance and operating metrics; and volatility of our Class A common stock and Class C capital stock prices. The foregoing list of risks and uncertainties is illustrative but not exhaustive. For more information about potential factors that could affect Zillow Group's business and financial results, please review the "Risk Factors" described in Zillow Group's publicly available filings with the United States Securities and Exchange Commission. Except as may be required by law, Zillow Group does not intend and undertakes no duty to update this information to reflect future events or circumstances. About Zillow Group, Inc. Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate app and website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated real estate professionals, and easier buying, selling, financing, and renting experiences. Zillow Group's affiliates, subsidiaries, and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+SM, Spruce®, and Follow Up Boss®. All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 ( © 2025 MFTB Holdco, Inc., a Zillow affiliate. Please visit and where Zillow Group discloses information about the company, its financial information, and its business that may be deemed material. The Zillow Group logo is available at (ZFIN) Use of Non-GAAP Financial Measures To provide investors with additional information regarding our financial results, this press release includes references to Adjusted EBITDA, a non-GAAP financial measure. We have provided a reconciliation below of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure. We have not provided a quantitative reconciliation of forecasted GAAP net income (loss) to forecasted Adjusted EBITDA within this press release because we are unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include but are not limited to: income taxes that are directly impacted by unpredictable fluctuations in the market price of the company's capital stock; depreciation and amortization from new acquisitions; impairments of assets; and acquisition-related costs. These items, which could materially affect the computation of forward-looking GAAP net income (loss), are inherently uncertain and depend on various factors, many of which are outside our control. We have not provided a reconciliation of forecasted Adjusted EBITDA margin to net income (loss) margin, the most directly comparable GAAP financial measure, for the same reasons. Adjusted EBITDA is a key metric used by our management and Board of Directors to measure operating performance and trends and to prepare and approve our annual budget. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are: Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; Adjusted EBITDA does not consider the potentially dilutive impact of share-based compensation; Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditures or contractual commitments; Adjusted EBITDA does not reflect impairment costs; Adjusted EBITDA does not reflect interest expense or other income, net; Adjusted EBITDA does not reflect income taxes; and Other companies, including companies in our own industry, may calculate Adjusted EBITDA differently from the way we do, limiting its usefulness as a comparative measure. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash-flow metrics, net income (loss), and our other GAAP results. Adjusted EBITDA The following table presents a reconciliation of Adjusted EBITDA to net income (loss) for each of the periods presented (in millions, unaudited): Three Months Ended March 31, 2025 2024 Net income (loss) $ 8 $ (23) Income taxes — 2 Other income, net (22) (33) Depreciation and amortization 65 56 Share-based compensation 97 108 Impairment costs — 6 Interest expense 5 9 Adjusted EBITDA $ 153 $ 125 Cision View original content to download multimedia: SOURCE Zillow Group, Inc.
