Property platform Zillow reported 4Q24 results after hours yesterday that were ahead of expectations, though 1Q25 guidance was below, sending the shares down ~19% on open before they recovered around 50% of the drop.
- Q4 Revenue of $US554 million was up +17% yoy and above estimates for $US545.9 million.
- Adjusted Ebitda $US112 million was up +62% yoy and above estimate for $US107.6 million
Website traffic remains strong, with average monthly unique visitors of 204 million, up +3% yoy, pretty much inline with forecasts. However, they provided a more sombre view for Q1, saying “We expect a more challenging housing market in Q1, with industry growth remaining relatively flat year over year.”
- They guided to revenue of $US575 million to $US590 million for the quarter ahead, which was ~3% below street expectations, while earnings expectations were ~15% below.
Not the beat and bump that drives shares prices, though the business remains in good shape. Shares have rallied very strongly in the past six months, and we’d now expect some consolidation around current levels for the coming months. Analysts have mildly tweaked expectations lower, but not by a lot.
MM remains long & bullish ZG US
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