Company name:
Zillow Inc
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IPO SHARE PRICE:$20.00
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IPO DATE:July 20, 2011
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TICKER:Z
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MAIN STOCK EXCHANGE:NASDAQ
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CURRENT HQ LOCATION:1301 Second Avenue Floor 31 Seattle Washington 98101
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FISCAL YEAR END:December 31
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INCORPORATION JURISDICTION:WA
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ORGANIZED AS THE FOLLOWING LEGAL TYPE:Corporation
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Investor Relations Webpage:https://investors.zillowgroup.com
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TAX RATE:USA federal corporate nominal income tax rate is 21%
Short Description
Zillow Inc
Owner of the largest US website by number of unique users and visitors for buying, selling, and renting homes - zillow.com. Zillow was founded in 2006 as result of a major push to open access to MLS (multiple listing service) data controlled by National Association of Realtors (NAR).
Untill November 2, 2021 Zillow had three main business lines: IMT - operator of zillow.com, Homes - house-flipping (iBuyer) business called Zillow Offers, Mortgages - mortgage originations. On November 2, 2021 Zillow exited house-flipping business with large losses.
Business model: IMT business called Premier Agent charges realtors a fee for posting home selling ads on zillow.com. In short, it's a play on real-estate related advertising paid for by realtors who want to increase traffic to properties they try to sell or rent.
Competitors: Realtor.com, Redfin, regional RE MLS websites.
Income Statement
(USD in thousand)
Selected Year:
31-Dec
2021
2021
Revenue
Gross receipts in the form of cash (great!) and promises to pay (Account Receivables - not so great as some of them will never be collected but reality of business!) from all its customers
100%
73.8% —
Homes
23.1% —
IMT Revenue
3.0% —
Mortgages
Selected Year:
31-Dec
2021
2021
Operating expenses
Cost (labor, materials, depreciation, overhead, etc) for delivering service or manufacturing a product that business sells
104.0%
75.0% —
Homes excluding Amortization
13.2% —
Sales and marketing
5.8% —
Product technology and development
5.5% —
General and administrative
2.5% —
IMT
1.0% —
Mortgages
0.9% —
Impairment and restructuring costs
0.1% —
Acquisition-related costs
0.0% —
Integration costs
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Cost of revenue excluding amortization
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- | - | - | - | - | - | |||||||||
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Homes excluding Amortization
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49,392 | 1,324,464 | 1,634,755 | 6,106,944 | 6,106,944 | 13,327,680 | |||||||||
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IMT
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96,693 | 193,885 | 193,097 | 203,449 | 203,449 | 246,388 | |||||||||
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Mortgages
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7,505 | 25,750 | 38,540 | 83,784 | 83,784 | 86,780 | |||||||||
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Total cost of revenue
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$153,590 | $1,544,099 | $1,866,392 | $6,394,177 | $6,394,177 | $13,660,848 | |||||||||
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Gross profit
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- | 1,198,738 | 1,473,425 | 1,753,199 | 1,753,199 | 1,868,404 | |||||||||
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Product technology and development
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410,818 | 350,923 | 390,172 | 474,396 | 474,396 | 456,564 | |||||||||
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Sales and marketing
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552,621 | 728,631 | 691,119 | 1,076,235 | 1,076,235 | 1,417,968 | |||||||||
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General and administrative
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262,153 | 366,019 | 356,722 | 448,773 | 448,773 | 480,348 | |||||||||
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Acquisition-related costs
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2,332 | - | - | 8,615 | 8,615 | 3,568 | |||||||||
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Integration costs
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2,015 | 650 | - | 680 | 680 | 2,720 | |||||||||
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Gain or loss on sale of business
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- | - | - | - | - | - | |||||||||
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Impairment
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79,000 | - | 76,800 | - | - | - | |||||||||
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Impairment and restructuring costs
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- | - | 76,800 | 72,173 | 72,173 | 288,692 | |||||||||
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Restructuring
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- | - | - | - | - | - | |||||||||
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Total operating expenses
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- | 1,446,223 | 1,514,813 | 2,080,872 | 2,080,872 | 2,649,860 | |||||||||
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Total expenses
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1,462,529 | 2,990,322 | 3,381,205 | - | - | - |
Selected Year:
31-Dec
2021
2021
Operating Income
Income after excluding Operating Expenses from Total Revenue
4.0%
4.0% —
Operating Income
Key metric that shows earnings potential of the company's business model
Selected Year:
31-Dec
2021
2021
Non-operating expenses
Cost usually unrelated to delivering service or manufacturing a product that business sells
0.1%
0.1% —
Other expense or income
0.2% —
(Gain) loss on early repayment of debt
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| Other expense or income | - | 39,658 | 25,529 | 10,188 | 10,188 | 16,792 | |||||||||
| Other income | 19,270 | 39,658 | 25,529 | - | - | - | |||||||||
| Gain on early repayment of notes | - | - | 1,448 | - | - | - | |||||||||
| Loss on early repayment of debt | - | - | - | - | - | - | |||||||||
| (Gain) loss on early repayment of debt | - | - | 1,448 | (17,119) | (17,119) | - | |||||||||
| Total non-operating income (expense) | 19,270 | 39,658 | 25,529 | (6,931) | (6,931) | 16,792 |
Selected Year:
31-Dec
2021
2021
Earnings before Interest and Taxes (EBIT)
Income after excluding Operating and Non-operating Expenses from Total Revenue
4.1%
4.1% —
EBIT
Another income metric but unlike Operating Income it is closer to the ultimate income metric - Net Income by removing expenses that are not related to earning Revenue as they are supposed to be accidental and transitory
Selected Year:
31-Dec
2021
2021
Interest Expense and Income, Taxes
Expenses driven mostly by company management's choices, nature of business (capital intensive vs not) about financing (debt vs equity) and legal structure
2.4%
0.0% —
Income tax expense or benefit
2.4% —
Interest expense
Selected Year:
31-Dec
2021
2021
Net income (loss)
Ultimate measure of Income - Net result after excluding all expenses from Total Revenue
6.5%
6.5% —
Net income (loss)
It is a residue that is left from Total Revenue after paying all kind of expenses and belongs to all equity holders in the company. Some of these shareholders such Non-controlling interest or Preferred equity gets their share before Common shareholders
Basic Shares Outstanding
Basic shares outstanding as of certain dates reported by Company on its annual and quarterly filings, these numbers are NOT used calculation of basic EPS. They help to see share issuance by company in perspective
Selected Year:
31-Dec
2021
2021
EPS
Net Income / Shares Outstanding = EPS before dilution or Basic EPS; Net Income/ ( Shares Outstanding + potentially available shares from conversion of various option instruments)