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Zillow (Z) 6 Nov 24 2024 Q3 Earnings call transcript

AInvestThursday, Nov 7, 2024 9:42 am ET
1min read

Zillow Group's Q3 2024 financial results showcased a robust performance, with total revenue reaching $581 million, a 17% year-over-year increase. This impressive growth was achieved while outperforming the residential real estate industry and demonstrating cost discipline, setting the stage for sustainable, profitable growth.

Key Themes and Trends

Zillow's CEO, Jeremy Wacksman, emphasized the company's focus on its consumers, agents, and the broader real estate industry. The company's commitment to customer-centric strategies and its leading brand position, coupled with deep technology expertise and a strong financial foundation, positions Zillow well in its mission to digitize residential real estate.

The company's revenue growth was fueled by a 12% year-over-year increase in residential revenue, a 24% increase in rentals revenue, and a 63% year-over-year increase in mortgage revenue. These figures underscore Zillow's ability to capitalize on emerging opportunities and adapt to market dynamics.

Consumer Advocacy and Industry Evolution

Zillow's commitment to consumer advocacy principles, including easy and free access to real estate information and transparency, is paying off. With 2/3 of U.S. homebuyers using Zillow, the company's strong brand position and focus on delivering tech innovations that enhance the moving experience have set it apart from competitors.

Zillow's strategic investments in digital solutions, such as comprehensive climate risk data, tools for agents and loan officers, and upgrades to its AI-powered natural language search, demonstrate its leadership in the digital real estate landscape.

Investor Perspectives and Future Outlook

During the earnings call, investors expressed concerns about the company's marketing strategy for its new product and the competitive landscape. These questions indicate that investors are closely monitoring Zillow's ability to differentiate itself in the market and capitalize on growth opportunities.

Looking ahead, Zillow's focus on expanding its presence in enhanced markets, integrating its software solutions, and deepening its penetration in existing markets positions it well for future growth. The company's disciplined cost management and strategic investments in technology are expected to drive sustainable profitability and long-term success.

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