Zillow Reports 4Q and FY12 Results - Analyst Blog
February 14 2013 - 4:40AM
Zacks
Zillow Inc. (Z)
fourth quarter net earnings of 2 cents breezed past the Zacks
Consensus Estimate of negative 6 cents. Results were down 33.3%
year over year from 3 cents earned in the year-ago quarter.
Quarterly Operational Update
Total revenues increased 73% year over year to $34.3 million in the
fourth quarter. This was driven by solid improvement in both
marketplace revenue (up 95.2% year over year to $26.8 million) and
display revenue (increasing 22% year over year to $7.5 million). It
surpassed the Zacks Consensus Estimate of $31 million.
Total expenses in the quarter increased 78.1% year over year to
$33.8 million.
The magnitude of increase in expenses more than offset the
magnitude of increase in total revenues, thus causing operating
income to decline year-over-year.
In the reported quarter, average unique monthly users increased 47%
year over year to 34.5 million.
Premier Agent subscribers also increased by 2,770 in the fourth
quarter. Average monthly revenue per subscriber increased 3% year
over year to $267.
Earnings before interest tax, depreciation and amortization
(EBITDA) increased 106.1% year over year to $6.8 million.
Full Year Highlights
Adjusted earnings were 18 cents per share exceeding the Zacks
Consensus Estimate of 10 cents per share. Zillow broke even in
2011.
Total revenues for full year 2012 increased 77% year over year to
$116.9 million. This was driven by strong improvement in market
place revenue (up 105% year over year to $86.7 million) and display
revenue (up 26% year over year to $30.2 million).
Earnings before interest tax, depreciation and amortization
(EBITDA) increased 111.8% year over year to $25.2 million.
Premier Agent Subscribers in 2012 numbered 29,473, up 87% year over
year.
Financial Position
Zillow exited 2012 with cash and cash equivalents of $150.0
million, up 231.9% year over year.
As of Dec 31, 2012, total assets of the company were $304.2
million, up 160.8% year over year.
Net cash flow from operating activities in 2012 was $32.3 million,
up 117.8% year over year.
Shareholders’ equity increased 177% year over year to $280.3
million at 2012 end.
Business Update
In February 2013, Zillow launched Zillow Digs– an online service in
home remodeling, which marked an expansion in its existing lines of
businesses.
In the reported quarter the company made three acquisitions -
Mortech Inc., a software and services company providing CRM and
pricing engine to the mortgage industry, HotPads, a site that
offers consumer rentals and mobile apps, and Buyfolio, an online
and mobile supported shopping means, to fortify its mortgage,
rental and real estate businesses.
Earlier this month, Zillow pronounced that Zillow Real Estate
Network will be partnering with HGTV. The deal will allow Zillow to
provide all real estate listings for HGTV’s Front Door. Zillow
Premier Agents which is expected to come into force in the second
quarter of 2013 will also be benefited from the partnership.
Zacks Rank
Zillow currently carries a Zacks Rank #4 (Sell). Perion
Network Ltd. Ord (PERI), Giant Interactive Group
Inc. (GA) and American Public Education
Inc. (APEI) with favorable Zacks Rank #1 (Strong Buy) are
expected to report their fourth quarter and full year 2012 results
shortly.
AMER PUB EDUCAT (APEI): Free Stock Analysis Report
GIANT INTERACTV (GA): Free Stock Analysis Report
(PERI): ETF Research Reports
ZILLOW INC (Z): Free Stock Analysis Report
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