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Zillow Group Inc Class A (ZG)
NASDAQ:ZG
Top Page
Zillow Group Class A
(NASDAQ:ZG)
60Neutral
Positive Factors
Earnings Performance
Zillow reported better-than-expected 1Q revenues and EBITDA with revenue of $598M coming in approximately 1.5% above consensus and adjusted EBITDA of $153M coming in approximately 9% above the high-end of guidance.
Partnership Benefits
Management highlighted stronger-than-expected benefits from Redfin Rentals partnership and guided to 2Q Rentals growth of 35% (vs Street 30%).
Share Buyback
Having repurchased ~3.3M shares (~$250M) in Q1, Zillow's Board authorized an additional $1B share repurchase program.
Negative Factors
Guidance Challenges
The Q2 revenue outlook was modestly below consensus, with adj. EBITDA guidance also below expectations, reflecting higher seasonal marketing costs and lead costs associated with the Redfin partnership.
Housing Market Uncertainty
There is limited visibility on a significant turn in the housing market, leading analysts to remain cautious.
Market Outlook
Given volatile macro and interest rates expected to remain elevated, housing volumes will likely remain subdued through the remainder of the year.
Zillow Group Class A (ZG) vs. S&P 500 (SPY)
Market Cap
$16.15B
Dividend YieldN/A
Average Volume (3M)470.43K
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth14.96%
EPS Growth29.56%
CountryUS
Employees6,856
SectorCommunication Services
Sector Strength84
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.41
Shares Outstanding51,874,170
10 Day Avg. Volume309,584
30 Day Avg. Volume470,428
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.96
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit9.09
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$80.13Price Target Upside20.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
Zillow Group Class A Business Overview & Revenue Model
Company DescriptionZillow Group, Inc. (Class A) is a leading online real estate marketplace in the United States, providing comprehensive information and resources for buying, selling, renting, and financing real estate. The company operates various brands and platforms, including Zillow, Trulia, and StreetEasy, among others, which offer services such as real estate listings, home valuation tools, and mortgage financing options. Zillow Group aims to empower consumers with data-driven insights to make informed decisions regarding real estate transactions.
How the Company Makes MoneyZillow Group generates revenue primarily through its Internet, Media & Technology (IMT) segment, which includes services for real estate agents, rental professionals, and mortgage lenders. The company earns money through advertising and subscription services offered to real estate professionals who list properties on its platforms. Additionally, Zillow receives revenue from its mortgage segment by providing mortgage origination services and selling leads to mortgage lenders. Zillow Group also has a small portion of its revenue coming from other services such as title and escrow services. Strategic partnerships with various real estate and financial services companies further enhance its revenue streams.
Zillow Group Class A Financial Statement Overview
Summary
Zillow Group exhibits a mixed financial profile with strong equity backing and improving cash flow metrics, yet faces persistent challenges in achieving profitability and consistent revenue growth. Strategic adjustments may be needed to leverage its asset position and improve operational efficiency.Income Statement
Zillow Group has displayed a volatile revenue trend, with a recent revenue growth of 14.95% from 2023 to 2024. However, the company is struggling with profitability, evidenced by a negative net profit margin of -5.01% and negative EBIT margin of -8.81% in 2024, indicating operational challenges.―
Balance Sheet
The balance sheet is relatively strong with a low debt-to-equity ratio of 0.11, indicating conservative leveraging. The equity ratio stands at 83.18%, showing strong asset backing by shareholders. However, the company has shown losses in past years, impacting return on equity.65
Cash Flow
Cash flow analysis shows a positive operating cash flow to net income ratio of 3.82, suggesting healthy cash conversion despite net losses. Free cash flow has also grown, enhancing liquidity. However, previous volatility in cash flows poses potential risk.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.24B | 1.95B | 1.96B | 8.15B | 3.34B | Gross Profit |
| 1.71B | 1.52B | 1.59B | 1.75B | 1.58B | EBIT |
| -197.00M | -270.00M | -26.00M | -246.21M | 60.94M | EBITDA |
| 179.00M | 125.00M | 123.00M | 370.00M | 119.96M | Net Income Common Stockholders |
| -112.00M | -158.00M | -88.00M | -527.78M | -162.12M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.86B | 2.81B | 3.36B | 3.13B | 3.92B | Total Assets |
| 5.83B | 6.65B | 6.56B | 10.70B | 7.49B | Total Debt |
| 515.00M | 1.83B | 1.87B | 5.01B | 2.52B | Net Debt |
| -567.00M | 340.00M | 401.00M | 2.40B | 816.63M | Total Liabilities |
| 981.00M | 2.13B | 2.08B | 5.35B | 2.74B | Stockholders Equity |
| 4.85B | 4.53B | 4.48B | 5.34B | 4.74B |
| Cash Flow | Free Cash Flow | |||
| 285.00M | 189.00M | 4.36B | -3.28B | 315.68M | Operating Cash Flow |
| 428.00M | 354.00M | 4.50B | -3.18B | 424.20M | Investing Cash Flow |
| 395.00M | 25.00M | -1.53B | 1.09B | -1.04B | Financing Cash Flow |
| -1.23B | -352.00M | -4.34B | 3.15B | 1.16B |
Zillow Group Class A Technical Analysis
Neutral
66.44
Price Trends
67.15
Negative
71.37
Negative
66.01
Positive
Market Momentum
0.07
Negative
53.28
Neutral
61.76
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZG, the sentiment is Neutral. The current price of 66.44 is above the 20-day moving average (MA) of 64.01, below the 50-day MA of 67.15, and above the 200-day MA of 66.01, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 61.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZG.
Zillow Group Class A Risk Analysis
Zillow Group Class A disclosed 49 risk factors in its most recent earnings report. Zillow Group Class A reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zillow Group Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.23B | 18.10 | 17.79% | ― | 5.61% | 37.61% | |
68 Neutral | $15.40B | ― | -0.39% | ― | 9.27% | 95.03% | |
61 Neutral | $16.15B | ― | -2.39% | ― | 14.96% | 29.56% | |
60 Neutral | $16.15B | ― | -1.72% | ― | 14.96% | 29.56% | |
60 Neutral | $13.74B | 7.25 | -2.74% | 3.81% | 2.21% | -37.97% | |
56 Neutral | $2.78B | 154.59 | 3.62% | ― | -2.17% | -26.53% | |
46 Neutral | $575.13M | ― | -18.77% | ― | 13.27% | 34.93% |
* Communication Services Sector Average
Performance Comparison
ZG
Zillow Group Class A
66.44
23.98
56.48%
YELP
Yelp
35.74
-3.88
-9.79%
TWLO
Twilio
105.23
45.73
76.86%
CARG
CarGurus
27.95
5.67
25.45%
Z
Zillow Group Class C
67.90
24.82
57.61%
KIND
Nextdoor Holdings
1.41
-0.95
-40.25%
Zillow Group Class A Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
Zillow Group's Q1 earnings call highlighted strong financial performance, exceeding expectations with significant growth in rentals and mortgages. Despite challenges in the broader housing market, Zillow achieved GAAP profitability and continued to expand its Enhanced Markets. However, the company anticipates cost increases in Q2 related to seasonal marketing and new partnerships.Q1-2025 Updates
Positive Updates
Exceeding Q1 Outlook
Zillow exceeded their Q1 outlook, achieving strong top-line growth despite macroeconomic challenges. They achieved GAAP profitability and reported a 13% year-over-year revenue increase.
Significant Growth in Rentals Revenue
Rentals revenue increased by 33% year-over-year, reaching an all-time high of $129 million in Q1. Multifamily revenue grew by 47% in the quarter.
Expansion of Enhanced Markets
The share of connections within Enhanced Markets increased from 21% in Q4 to 24% in Q1, with expectations to reach more than 35% by the end of the year.
Positive GAAP Net Income
Zillow achieved a positive GAAP net income of $8 million for Q1, representing 1% of their revenue.
Strong Performance in Mortgages Revenue
Mortgages revenue was up 32% year-over-year to $41 million in Q1, driven by the growth of Zillow Home Loans.
Negative Updates
Challenges in the Housing Market
The high-end of the housing market was the main contributor to growth, while the rest of the market was largely flat year-over-year, impacting overall residential performance.
Cost Increases Expected in Q2
EBITDA expenses are expected to increase from $445 million in Q1 to an estimated $495 million in Q2, driven by seasonal marketing and costs associated with the Redfin Rentals partnership.
Company Guidance
During Zillow Group's First Quarter 2025 Financial Results Call, strong performance metrics were highlighted, including a 13% year-over-year revenue increase to $598 million, which surpassed their outlook by $15 million. The company achieved a GAAP profitability milestone, reporting $8 million in net income, driven by a $153 million adjusted EBITDA and a 26% EBITDA margin, marking a 200 basis point improvement. Zillow's For Sale category revenue rose 8% year-over-year, with Residential and Mortgages revenues increasing by 6% and 32%, respectively. Rentals revenue, reaching an all-time high of $129 million, grew by 33%, supported by a 47% growth in multifamily revenue. Zillow's Enhanced Markets strategy contributed to 24% of connections in Q1, expected to rise to over 35% by year-end. The company also reported 227 million average monthly unique users, with 80% of traffic being direct and organic. For full-year 2025, Zillow aims for low to mid-teens revenue growth, continued EBITDA margin expansion, and positive GAAP net income, with a focus on scaling its housing super app and enhancing its comprehensive Rentals marketplace.Zillow Group Class A Corporate Events
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Zillow Group Authorizes $1 Billion Stock Buyback
Positive
May 7, 2025
On May 7, 2025, Zillow Group announced its Board of Directors authorized an additional $1 billion for stock repurchases, supplementing previous authorizations. The company reported strong financial results for Q1 2025, with revenue up 13% year over year to $598 million, driven by growth in various segments including Premier Agent offerings and rental services. Zillow’s strategic expansion and effective execution have positioned it for sustainable profitable growth, with increased traffic to its platforms and a positive outlook for the year.
Spark’s Take on ZG Stock
According to Spark, TipRanks’ AI Analyst, ZG is a Neutral.
Zillow Group’s stock score reflects a balanced view of its financial performance challenges, particularly in profitability, offset by strong revenue growth and strategic initiatives highlighted in the latest earnings call. Technical indicators suggest cautious optimism, while valuation remains a concern due to current unprofitability.
To see Spark’s full report on ZG stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.