Zillow's Q4 2024 Earnings Call: Key Contradictions in Enhanced Markets Strategy and Rental Growth

These are the key contradictions discussed in Zillow's latest 2024Q4 earnings call, specifically including: Enhanced Markets expansion strategy, Rentals growth expectations, Enhanced Markets strategy and financial impact, and Redfin partnership expiration:



Revenue Growth and Market Share:
- Zillow Group reported total Q4 revenue of $554 million, up 17% year-over-year, and met its target of double-digit revenue growth for the full year 2024.
- The growth was driven by increased connections and transactions through Zillow's housing super app strategy, despite a challenged housing market.

Enhanced Market Expansion:
- The company aimed to increase the share of connections in Enhanced Markets from 21% in Q4 2024 to 35% by the end of 2025, with a long-term goal of 75% of customer transactions.
- The expansion is supported by increased adoption of Zillow Home Loans, integration of Follow Up Boss, and methodical scaling with agent partners and loan officers.

Rentals Revenue Increase:
- Zillow's Rentals revenue grew 25% year-over-year in Q4, supported by a 41% increase in multifamily revenue and an increase in multifamily properties to 50,000 from 37,000 at the end of 2023.
- Growth was driven by strategic partnerships, such as with Realtor.com, and increased marketing efforts that expanded the reach of multifamily properties.

Mortgage Revenue Acceleration:
- Mortgage revenue grew 86% year-over-year in Q4, with purchase loan origination volume increasing by 90%.
- The acceleration is attributed to the integration of Zillow Home Loans with the Enhanced Market strategy, leading to higher customer conversions and adoption rates.